a) Claims against the Company not acknowledged as debts (excluding claims where amounts not Ascertainable / the cases where the possibility of any outflow on settlement / decision is remote)

(b) Pledge of shares (Investment) for borrowing by an associate 248.74 248.74

(c) Arrears of Preference Shares dividend (Including dividend 233.43 206.59 tax)

(d) In respect of other matters under litigation (including Not ascertainable workmen claims pending at different stages.)

(e) Interest /Compound interest /penalty on delayed /non Not ascertainable payment of statutory dues / Trade payables / Promoters' contribution / Loan from secured and unsecured lenders.

* By certain notifications issued by Government of Maharashtra, the water charges payable by the Company were sought to be enhanced by the Government of Maharashtra from 1991. The Company approached the Court, disputing such enhancement on the premise of non-applicability of the notification and/or classification to the Company, the matter is pending in the court. During the proceeding before Hon. Bombay High Court, the Company was interalia directed to give non disposal undertaking for the immovable property of the Company including 103 acres of land (excluding the surplus 345 acres land), buildings and plant & machinery, which were complied with. The water charges as sought to be enhanced has been disclosed in contingent liability accordingly.

The Company's pending litigations comprise claims mainly against the Company and proceedings pending with tax and other authorities. The Company has reviewed all its pending litigations and proceedings and has made provisions to the extent ascertainable, wherever required and disclosed in the contingent liabilities, wherever applicable, in its fi nancial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statement

III) Disclosure in respect of Operating Leases:

(a) The Company has taken and also given various commercial premises under cancellable Operating Leases. The Lease Agreements are usually renewable by mutual consent on mutually agreeable terms.

**The premises of Registered office of the Company was taken on lease from a Nationalised Bank for which the bank has filed a Eviction suit and demanded a mesne profit of Rs.529.43 lacs (Previous year Rs.(529.43 lacs included in the notes 19(1)(a)(5) . The High Court has ordered for vacation of the premises for which Company filed a petition in Supreme Court. The Hon Supreme Court upheld the Hon. High Court Order and accordingly Company vacated the Premises. The Company has challenged the vacation and, also the liability of mesne profit in Court, which is pending and accordingly the amount of mesne profit is not provided in books but included in contingent liability.

(b) The rental expense in respect of Operating Leases is charged as rent under Note 17. The rental income is included in other income.

1) Rehabilitation Scheme and Sale of Land:

a) Board For Industrial and Financial Reconstruction (BIFR) in its order dated 4th January, 2013,clarified that the status of land has already been decided by BIFR in its order dated 16.07.2009 and directed the Operating Agency (OA) to expedite submission and circulation of Draft Rehabilitation Scheme (DRS), based on the parameters given in the BIFR order dated 16-07-2009. The said BIFR order was challenged before Appellate Authority for Industrial and Financial Reconstruction (AAIFR). The AAIFR vide ex-party order dated 20th March, 2013 directed the BIFR to give clear parameters to OA for preparation of DRS. As the Company being of the view that clear parameters has already been laid down in BIFR order dated 16.07.2009, has filed a writ petition in Honourable High Court against the above said AAIFR order, which has since been disposed off , as the said order did not decide the issue of locus of the party. In the meanwhile the BIFR vide its order dated 22.01.2014, directed the OA to explore possibility of amicable understanding between the parties on disposal of surplus land. The labour Union has also filed a writ petition in Hon. Bombay high Court, seeking formulation of Draft Rehabilatations Scheme (DRS) in time bound manner and instruction in early disposal of surplus land, which is pending. The OA has yet to file DRS.

(b) The Company has received Rs. 7425.92 Lacs (Previous Year Rs 7425.92 lacs) from a developer, towards advance against sale of land. out of which Rs.2450 Lacs (Previous Year Rs 2450 lacs) are deposited and lying in no lien account, which can be utilised only in accordance with the directions of BIFR/Court, as and when given.

2) There was no manufacturing operation during the year. The lockout declared by Company w.e.f. 15th November, 2009 is continue to be in force; Labour Union challenged the Lockout, which is pending at Industrial Court, and the consequent liabilities if any is not ascertainable.

3) (a) Pending submission and sanction of DRS, these Financial Statements have been prepared on a going concern basis.

(b) In view of suspension of manufacturing operations, pending submission and sanction of DRS, the impairment loss on assets if any, as required by Accounting Standard 28, has not been dealt with in these Financial Statements.

4) The remuneration amounting to Rs 142.10 lacs (Previous Year Rs 142.10 lacs) paid to the Managing Director for the period from December, 2008 to January, 2011 was not approved by central government. The Company has applied to central government for the waiver of the same and is hopeful of getting the same in due course.

5) (a) Confirmation / reconciliation of balances of certain Banks, Loans & Advances, Other non- current assets, Trade Payables, Other liabilities and Lenders are also not available. However, necessary action in this regard is already initiated and on receipt of the same, will be reviewed by the Company. Consequential adjustments arising thereon, which are presently not ascertainable, will be made.

(b) During the year, due to severe financial crunch, Company was not regular in payment of statutory dues. Since the Company is under BIFR, the interest / installments to Lenders / penalty etc on delayed / non payment to certain trade payable / promoters' contribution / Loan from secured and unsecured lenders and statutory dues are not provided for and shall be appropriately considered if required on sanction of DRS.

6. Land and Buildings of the Company were re-valued as on 31st December, 1984 on market value / replacement cost basis using Standard indices as assessed by the approved valuer. Further the land was again re-valued on 31st March, 2005 and 25th January, 2006 considering their present market prices as per valuation report submitted by the approved valuer appointed for the purpose. The revaluations of March, 2005 and January, 2006 have resulted in a net increase in the book value by Rs.8355.89 lacs, and Rs.4450 lacs, respectively. The total increase as a result of these revaluations was transferred to Revaluation Reserve in the respective years.

7. Deferred Tax Assets / (Liabilities)

As a matter of prudence due to continuous losses deferred tax assets has not been recognised for the current year and earlier years.

8 Related party Disclosure pursuant to Accounting Standard - 18

a) Associates / Group Companies and Key Management personal with whom the Company has entered into transactions during the period:

i) ISG Traders Ltd, Kavita Marketing Private Limited, Shubh Shanti Services Limited (SSSL) and Duncan Industries Limited (Associates).

ii) Mr.. Arun Jain Managing Director.

* Amount provided for Managerial remuneration which excludes gratuity and leave entitlement.

** Being an unsecured loan advanced to the Company by a body Corporate now assigned to SSSL.

b) Related parties have been identified by the Management and relied upon by the auditors

c) No amount in respect of related parties have been written off/written back / provided for during the year.

9. During the year, arising out of the suspension of production for a considerable time, the management has further carried out a thorough review (both qualitative and quantitative) of the potential realisable value of certain assets in a prudent manner. Accordingly, the following provisions/ write-offs have been made, as considered appropriate by the management, in the light of the changed prevailing scenario as a matter of abundant caution. :

The Company has compiled the above information based on available information from suppliers as at the year end, as most of the supplier has not intimated the Company about its status as a Micro or Small and Medium Enterprise Development Act, 2006. No interest is likely to be paid to unsecured Trade payables under the DRS as referred in note no. 19( 6)(b) above and hence, no interest liability on the above category of creditors is provided / disclosed.

10. Consequent to the enactment of the Companies Act, 2013 ( the Act ) and its applicability for accounting periods commencing from April 1, 2014, the Company has realigned the remaining useful life of its tangible assets in accordance with the provisions under Schedule II to the Act. Consequently, in case of tangible assets which completed their useful life, the carrying value (net of residual value) as at April1, 2014 amounting to Rs.6,347.75 lacs (net of revaluation reserve on building of Rs 1,443.16 lacs) has been adjusted to the accumulated balance of retained earnings (deficit) and in case of other assets carrying value (net of residual value) is being depreciated over the revised remaining useful lives. Accordingly, the depreciation expense for the year is lower by Rs. 1,190.19 lacs as compared to the previous year.

11. Previous year's figures have been regrouped / rearranged wherever necessary to conform to the current year's presentation.