| 1. Contingent Liabilities:
As on 31.03.2009 As on 31.03.2008
Rs. Rs.
(a) On overdue Export Bills (Rs.) Nil Nil
Bank Guarantee Executed (Rs.) Nil Nil
(b) Income Tax amount with interest of Rs. 14.40 lacs has been demanded
vide demand notice dated 09.07.2003. The company has filed an appeal
against this demand in High Court of Chennai and the company is hopeful
that there are chances of winning in favour of the company. Hence the
company feels no provision is required for this liability.
2. Unsecured loan represents the amount brought in by the promoters for
the expansion programme as per the stipulation by the Industrial
Development Bank of India in the loan agreement executed by the company
with them and also includes the hire purchase liabilities.
3. In respect of unsecured loan for hire purchase, proceedings of the
case filed by M/s. Concord Credit Limited, Ernakulam have been stayed
by the Honorable High Court of Kerala.
4. There are no imports, exports or foreign currency transactions
during the year and in the previous year,
5. Some of the balances of current assets and sundry creditors are
subject to confirmation.
6. Previous year figures have been rearranged or regrouped wherever
necessary.
7. No provision for income tax has been made in the accounts as there
is no liability expected under the Income Tax Act, 1961.
8. Related party transactions. -
Unsecured loan from Managing Director, Mr. A.H.M. Babu - Rs.
6,01,000.00
9. The Asst. Commissioner of Customs, Cochin -682009 vide their order
no. EPCG 10/95 -Gr. V H. Cus dated 21-12-2007 has demanded a sum of Rs.
19,54,922/- being the part of the non-fulfillment of export obligation
on EPCG License no. 1500042/05.10.1995 together with interest of Rs.
32,25,621/- upto 10.11.2006. The Company has submitted their grievance
before the higher authorities in this regard and expects a favorable
decision from them In the meantime as per intimation from Directorate
General of Foreign Trade, Ministry of Commerce & Industry, Government
of India (F.No.20/891/AM'96/ EPCG.1/1048 dated 12th March 2008) they
have demanded a sum of Rs. 17,76,960/- (Rupees seventeen lacs seventy
six thousand nine hundred and sixty only) towards liability of customs
duty on account of unfulfilled Export Obligations under EFGG Scheme
during the previous year. The Company has remitted Rs. 11,76,131/-
during this current year and the current year balance Is shown at Rs.
600,829/- .The Company has not accounted for any interest on the above
since the company feels that their grievance is reasonable and there
will be relief from the department.
10. Since the company is not expecting any taxable profit in the near
future no provision for net deferred tax asset on account timing
difference on carry forward business loss and unabsorbed depreciation
after set off of deferred tax liability on tithing difference In
depredation has been made in the accounts.
| 