| 1. Contingent Liability: For the Current Period is Rs. 5225.19 Lacs in
the event of default to Asset Reconstruction Company (Previous Year Rs.
5225.19 Lacs).
2. The Company has accumulated losses amounting to Rs.16,34,03,173/-
, which is more than 50% of its Net Worth, which may adversely affect
the future operation of the Company.
3. Estimated amount of Contracts remaining to be executed on Capital
account and not provided for Rs. NIL (Previous Year Rs. NIL).
4. Letters of confirmation of balances have been sent to suppliers
and debtors. Adjustments, if any, shall be made on receipt of
confirmation and reconciliation thereof.
5. Sundry Loans and Advances and other assets are, in the opinion of
management, stated at the amount realizable in the ordinary course of
business and provision for all known liabilities has been made.
6. In view of the losses, Managing Director has foregone the salary
and therefore, no provision has been made in the current year.
7. Deferred Tax:
The Company has not provided for Deferred Tax Asset / Liabilities as
the Company's policy to recognize the asset is only when there is a
reasonable certainty that sufficient future taxable income will be
available.
8. Provision for Tax:
In view of the Losses, the Company has not made any provision for
taxes.
9. Segment Reporting :
In terms of Accounting Standard (AS) - 17, the Company is engaged
mainly in the business of manufacturing of Textiles consisting of
Fabric and Yarn. Considering the nature of financial reporting the
Company has only one reportable segment.
10. Previous Years figures have been re-arranged and re-grouped
wherever necessary.
11. Note 1 to 31 forms an integral part of the accounts and have been
duly authenticated.
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