| 1. The balances are subject to confirmation from the parties. However,
the Some of Creditors were written off during the Year. The Balance
Confirmation Certificate at the Year End were Not Obtained by the
Company in case of all the Creditors, Sister Concern, Associate
Concern, Directors , Director Relative Account. As required by the
notification no.GSR 129(E) dated 22nd February, 1999 issued by the
Department of Company Affairs, Ministry of Law , Justice and Company
Affairs based on the information available with the Company in respect
of the status the suppliers, being Small Scale Industrial Undertaking,
the information carried for by the company has been received and as
such liability for amount owed in excess of Rs. 100000/= for such
supplier has been given.
2. In the opinion of the Board of Directors, the Other Current
Liabilities are approximately of the value stated in the Balance Sheet,
if realised in the ordinary course of business. The balances are
subject to confirmation from the parties. Unclaimed Dividend amounting
to Rs. 1,08,069 is unclaimed for more than Seven Years and is deposited
in Ministry of Corporate Affairs , Delhi on 15/04/2013. However DD
Drwan before 31/03/2013.
During the Year under Audit the Company has W/OFF and W/BACK
Outstanding Balance in Unsecured Loan,Other Liability.
The Balance Confirmation Certificate at the Year End were Not Obtained
by the Company in case of all the Creditors, Sister Concern, Associate
Concern, Directors, Director Relative Account.
Provision for taxation is not required to be made as there is no
taxable income as per the provisions of the Income Tax Act,1961.
Since Financial Year:2010-11 the Company has entered into agreement for
Sale of Nadesari Unit, CAD Unit, Pungam Unit and Ankleswar-GIDC Unit
and also received advance against such Sale , the same is shown as
Advance From Prties. Also Refer Point No. 2.23 of Notes on the
Financial Statements , as regards Various Liabilities Written Off. The
Company is Registered with GBIFR Vide their Letter
No.:IC/IM/SUR/24545-2011/T-16/749780.Dated:21-09-2012. Registration
Number is 12 Dated : 21/09/2012.
Wherein the Company is expecting to get the Waiver of Interest ,
Penalties etc. On Sales Tax , GIDC Dues , Electricity Duty based on the
Directions of Govt. Of Gujarat & Pending Settlment Dues Payable to GOG
of Rs. 14.96 Lacs. (PY. Rs.102.78 Lacs.) have been shown in Statutory
Dues. The GOG has introduced New Scheme in Place of Its earlier Scheme,
for Relief to the Sick Industrial Units Registered with the BIFR Vide
GR BFR/(HPC)/102009/435690/P Dated : 15/07/2010.
3. The Company has not accounted for the impairment losses on account
of diminution in the value of fixed assets including capital work in
progress in respect of incomplete project as the management is not in
position to estimate the exact nature and quantum of loss on this
account. Management feels that upon revival of operations the company
would be in position to work out loss on this account. The Fixed Assets
Register is required to be Produced before us for our verification.
4. In the opinion of the Board of Directors, the current assets, loans
and advances are approximately of the value stated in the Balance
Sheet, if realised in the ordinary course of business. The balance of
Sundry debtors includes overdue balance from various parties and also
efforts are being made for recovery from such parties.The balances are
subject to confirmation from the parties.
During the Year under Audit the Company has W/OFF and W/BACK
Outstanding Balance in Loan and Advances Account The Balance
Confirmation Certificate at the Year End were Not Obtained by the
Company in case of all the Sister Concern, Associate Concern, Directors
, Director Relative Account. Please Refer Notes on Accounting Policies
wherein as per requirements of AS-18 for Related Parties Transaction
were mentioned in Details on Point No.2.22.
4. In Respect of Contingent Liability : 31.03.14 31.03.13
1 Contingent Liabilities in respect of -
a. Income tax and Sales tax matters 67,33,054* 67,33,054*
b. Excise & Other matters 3,06,28,381* 3,42,42,985*
c. GEB (DGVCL) 40,245* 40,245*
* Interest between @1 to 2%P.M. is added
to The Principle Outstanding Amount.
Till 31-08-2008.
* In a Above Includes KACL Contingent
Laibility of Rs. 10,25,21,860/-
* In b Above Includes KACL Contingent
Laibility of Rs. 2,43,54,288/-
* In c Above Includes KACL Contingent
Laibility of Rs.15,16,59,386/-L.Y. &
IN C.Y. of Rs.40,245/-
NOTE:
(i) The Company has preferred appeals against demand under c above.
(ii) The Company had disputed the electricity charges raised by Gujarat
Electricity Board in arbitration proceedings.
The award is in the favour of the company.However Board has Passed the
Ressolution on the Basis of letter of DGVCL to Industry Commissioner
for outstanding Dues of the Company & hence Liability for GEB Dues is
considered at Rs.40,245/-
(iii) The Sum of Rs. 22.90 Lacss being Payment under Protest has been
written off and Rs.1.09 Lacs being paid to Daurala Sugar towards Sales
Tax deposit. The exact outcome of the notices issues by the appropriate
authority could not be ascertained in absence of requisite information.
This is as per information & explanation given to us.
(iv) In terms of consent term reached in response to the legal
proceedings between the company and Unsecured Creditors , The Company
agreed to pay dues towards Creditors in installments. The company has
stopped the payment of these installments. The liability , is stated at
the amount as per the consent Term Unsecured Creditor has separately
approached the H'ble Bombay High Court.
5. In Respect of Refrence made to GOG Scheme :
The accounts have been prepared on "Going Concern" assumption despite
continuous losses, erratic operation, complete erosion of the net worth
of the company. Company is referred to GBIFR for rehabilitation and
revival.
6. In Respect of Previous Years Figures :
The Revised Schedule VI has become effective from 1 April, 2011 for the
preparation of financial statements. This has significantly impacted
the disclosure and presentation made in the financial statements. The
Revised Schedule VI does not require presentation of a reconciliation
explaining the impact of the reclassification of the previous year
figures in the financial statements. The Previous year's figures have
been regrouped / rearranged wherever found necessary.
During the Financial Year 2010-11 the Company has entered into
agreement for Sale of Nadesari Unit , CAD Unit and Ankleswar - GIDC
Unit as a Whole and also received advance against such Sale. The
Necessary Procedure as prescribed U/s. 293 of the Companies Act, is to
be Complied with. Details of the same are as under :
7. In CAD Unit :
During the FY : 2011-12 All P & M were sold to Kohinoor Enterprise for
Rs.400 Lacs at a Loss of Rs. 2456.85 Lacs And Whole of the Bulding
Scrap was Sold along with Building Scrap of Pungam to Suffian Steels
for Total Amount of Rs.18 Lacs. No Advance Balance Amount Except Rs.25
Lacs Towards Security Deposit of Kohinoor Enterprise was Laying at the
Year end.
8. In Pungam Unit During the FY : 2011-12 All P & M Except Land &
Building. Were Sold to Kohinoor Enterprise For Rs.210 Lacs at a Loss of
Rs. 113.49 Lacs. Sold Amount is Adjusted from the total Amount Received
of Rs.210 Lacs, And No Advance Balance Amount as on 31-03-2014. Bulding
scrap was Sold along with Building Scrap of CAD to Suffian Steels for
Total Amount of Rs.18 Lacs. No Advance Balance Amount was Laying at the
Year end. During the Previous Year Land was Sold at Rs.6.27 Crores to
Shree Anu Enterprise, Ankleshwar.The Payment was received in full.
There are Pending Dues against the Companies by the Sales Tax
department . However During the Previous Year Company is Registered
with the GOG Scheme as mentioned in the Report.
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