| a) Consequent upon the collapse of the operating office located at "B"
Wing, III Floor, Poonam Chambers, Dr Annie Besant Road, Worli,
Mumbai-400 018 on 16th September, 1997, the company lost all fixed
assets, current assets and all records. The company had to rely on
available documents from outside agencies for compiling the accounts
for the year 1996-98 and the same had to be relied upon for continuity
and inclusion in subsequent account/annual reports.
b) Having lost all the fixed and current assets located at the
operating office due to collapse of the building, the company, has
shown the balances outstanding in the books prior to the collapse as
"Claim Receivable" based on legal opinion. This "Claim Receivable" has
been classified separately in the current assets schedule. The
realisibility of the claim will depend upon the come of the legal
proceedings.
c) No provision has been made in the accounts for the interest
due/payable to the Institutions/Banks for the year under review since
16th September, 1997.
d) No lease rentals has been provided subsequent to 16th September,
1997 as the assets provided on lease were destroyed and no replacement
were, made by the Lessons.
e) The company lost all inventories as on 16* September, 1997 due to
collapse of the operating office and based on legal opinion, the
balances outstanding in the books have been included under "Claim
Receivable" and this has been classified under "Current Assets".
Subsequent to 16* September, 1997 any inventory acquired/generated has
been valued at cost or market price/realizable value whichever is
lower.
f) The net worth of the company would have been lower than 50% of its
peak net worth but for the claims receivable/lodged as shown under
Current Assets. Under the circumstances and based on the legal opinion,
the company did not make any reference to BIFR as was required for a
sick company within the meaning of Section 3 (1) (0) of the Sick
Industrial Companies (Special Provision) Act, 1985.
g) Some of the debit / credit balances, balance due to / from banks,
advances, debtors, creditors are pending confirmation / reconciliation.
h) Contingent Liabilities:
Current year-Nil Previous year-Nil
i) Quantitative details: Current Year Previous Year
i. Licensed Capacity N. A. N. A.
ii Installed Capacity N. A. N. A.
iii Sales & Services
business software & others 71.28 73.98
iv Computer Software N. A. N. A.
The nature of products dealt with and the nature of services provided
by the company are not capable of being expressed in generic units.
Hence, it is not possible to give the quantitative details and
information required under paragraph 3,4c, 4(d) of Part II of the
Schedule VI of the Companies Act, 1956.
j) Expenditure in foreign currency Current Year Previous Year
(Rs. In Lakhs) (Rs. In Lakhs)
Foreign Travel Nil Nil
k) Earnings in foreign currency
Software development services
And products (exports) Nil Nil
1) Remuneration to Auditors
Statutory Audit Rs. 7,500/- Rs. 7,500/-
Tax Audit Rs. 2,500/- Rs. 2,500/-
Other Matters Nil Nil
m) Others.
i) Previous years figures have been shown regrouped/rearranged,
wherever considered necessary.
ii) All figures are rounded off to nearest rupee.
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