| 1. Figures of the previous year have been regrouped, rearranged and/
or reclassified wherever considered necessary. All figures appearing
in the Notes on Accounts are expressed in Rupees ( ~ ) unless
otherwise stated.
2. In the opinion of the Board and to the best of their knowledge and
belief the value on realization of the current assets, loans and
advances, if realized, in the ordinary course of the business would not
be less than the amount at which they are stated in the Balance Sheet.
The provisions forall known liabilities are adequate and not in excess
of amounts considered reasonably necessary.
3. The Company was declared Sick on 13th January 2000 under section
3(1)(o) of the Sick Industrial Company's(Special Provision) Act, 1985.
The Industrial Development Bank of India (IDBI) was appointed as the
Operating Agency (OA). As per the directions of BIFR the company is in
the process of submitting its rehabilitation scheme to the OA pending
finalization of negotiations with Banks and Financial Institutions for
one time settlement of their dues.
4. The Company had restarted commercial production in its Plant on and
from the month of May, 2009. However, with the adverse market scenario
in the Petrochemicals market in the last year, the management had no
other option but to stop commercial production on August, 2009.
Pursuant to the revival package under consideration by BIFR and other
banks and financial institutions, management has prepared the accounts
on the 'Going Concern' concept despite its net worth having been fully
eroded.
5. As per the consistent practice followed by the Company, no
provision for interest and consequential charges has been made in the
books of accounts in respect of the outstanding loans from banks &
financial institutions based on various legal opinions obtained by the
Company. However, interest paid to certain creditors has been disclosed
under Interest Account in the Profit & Loss Account.
6. The matter relating to exemption on payment of E.S.I is pending
with the Hon'ble High Court at Kolkata.
7. Earnings Per Share (EPS) -The numerators and denominators used to
calculate
9. Expenditure in Foreign Currency [Clause (b) of Note 5 (viii)]
As the expenditure involved foreign currency but the original payment
made by the company itself is in Rupees, therefore, no disclosure is
depicted.
10. The value of Deferred Tax Assets amounting to ~ 2227.89 lacs
(previous year ~ 2227.89 lacs) was ascertained on the basis of future
projection of profit, which in the opinion of the management shall not
be subjected to be taxed due to huge amount of carry forward loss and
unabsorbed depreciation calculated as per Income Tax Act. The company
considers it necessary to review and re ascertained the said amount as
per AS 22 after obtaining the up to date income tax assessment order.
11. Related party disclosure in accordance with the Accounting
Standards 18 issued by the Institute of Chartered Accountants of India
("ICAI") and effective from April 1, 2001
12. Based on the Accounting Standard 28, Impairment of Assets, issued
by the Institute of Chartered Accountants of India, the Company has
reviewed the potential generation of economic benefits from its sole
cash generating unit and has concluded that the recoverable value of
the assets after impairment in the earlier years is more or less in
consonance with the replacement value of such plant and machinery
consequently no fresh provision is required for the current year.
13. The company has not received any information from suppliers
regarding status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence the disclosure required under the act
could not be compiled and disclosed.
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