| 1. Consumption of packing materials, stores & spares has been arrived
after deducting closing stock, as physically verified, from opening
stock and purchases.
2. The accounts for the period ended 31st March 2007 relates to a
period of Nine Months (viz.01.07.2006 to 31.03.2007) and the previous
years accounts were drawn for a period of fifteen months (viz.
01.04.2005 to 30.06.2006), therefore the same are not comparable.
3. In the opinion of the management and to the best of their knowledge
and belief, the value on realisation of loans and advances and other
current assets, in the ordinary course of business, will not be less
than the amount at which they are stated in the Balance Sheet.
4. Sales for the year include sale of scrap of Rs. 3942767- (Previous
Year Rs. 459128/-).
5. The Department of Company Affairs in terms of provisions of section
235 of the Companies Act 1956 has carried out investigation in to the
affairs of the company. The report of the said investigation has been
submitted by the Serious Fraud Investigation office (SFIO), New Delhi
to the Department of Company Affairs New Delhi. Union of India has
filed a company petition before Company Law Board, principal bench, New
Delhi which is still pending. The consequences and financial penalties,
if any, as out come of this company petition are not yet ascertained.
Hence no provision for the same is made in the accounts.
6. In terms of Corporate Debt. Restructuring (CDR) Package sanctioned
by the Consortium of Lenders the sacrifices on account of interest
concessions will be made good by way of issuance of zero coupon bonds
for the equivalent amount of sacrifice, to be issued at the end of
repayment period of the CDR package i.e. year 2012, which will be
redeemed thereafter in three to four years period depending upon the
cash flows of the company. The interest sacrifice amount for the period
is Rs. 144.00 Lacs and total unprovided amount is Rs 804.74 Lacs up to
31st March 2007, which will be taken into the accounts at the time of
issuance of Zero coupon bonds.
7. As per modified CDR package FITL-II loan provision for interest
above 7-Vz % was required to be made in the books of accounts.
Provision for interest i.e. FITL II in case of Banks have been made in
the books as the required intimation for differential interest was
received from banks. In case of IDBI no figure of differential interest
was advised to the company, hence the required provision was not made
by the company. As per records of the company the differential interest
comes to Rs. 35,48,3117-, which remains unprovided.
8. The order of SEBI dated 6th March 2007 received during the year has
restrained the company & its promoters from accessing the capital
market & dealing in securities of the company for seven years. The
company has challenged the order before Securities Appellate Tribunal,
Mumbai by preferring an appeal.
9. Contingent Liabilities not provided for:
a) Letter of Guarantee issued by Bankers of Rs 1.00 Lacs (Previous Year
Rs 8.94 Lacs).
b) Guarantee given to the Scheduled Bank on behalf of company under the
same management of Rs. 150 lacs (Previous Year Rs. 150 lacs)
10. Disclosure of Related Parties/Related Party Transactions:
Names of Related Parties with whom transaction were carried out during
the year And Description of Relationship
01 .Mr.Sarvesh Garg isDirector in Sterling Auto Pvt. Ltd. The Company
has given advances amounting Rs. 1.20 Lacs during the current year to
Sterling Auto Pvt. Ltd and balance outstanding amounted to Rs 19.57
Lacs.
02. Mr.Sarvesh Garg (Managing Director), being Key Management
Personnel has drawn
Remuneration of Rs. 4.95 Lacs during the period.
11. Segmental Reporting: - As the Company business activity falls
within a single primary segment Viz "Auto Electric Components" the
disclosure requirements of Accounting standards (AS-17)"Segment
Reporting" issued by the Institute of Chartered Accountants of India
are not applicable.
12. Balances of Sundry Debtors, Sundry Creditors and Loans & Advances
are subject to confirmation.
13. Provision for Deferred Tax Asset- The company has not created the
Deferred Tax Asset in absence of Virtual certainty and supporting
convincing evidence as per AS-22 "Accounting for Taxes on Income"
issued by the Institute of Chartered Accountants of India.
14. Of the total creditors, amount due to Small Scale Industrial
Undertaking can not be segregated pursuant to the Notification issued
by the Department of Company Affairs, as the necessary information
regarding suppliers status is not available with the company.
15. Previous years figures have been regrouped and rearranged wherever
necessary. Monetary values at all places, except where otherwise
stated, are in terms of rupees.
16. As required by Accounting Standard (AS) 28 Impairment of Assets
issued by the Institute of Chartered Accountants of India, the company
has carried out the assessment of Impairment of Assets. There has been
no impairment loss during the year.
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