| 1. Transfer to Debenture Redemption Reserve has not been made from
Profit & Loss Account amounting to Rs. 1,50,00,000 in view of loss.
2. The company had imported certain capital goods under EPCG scheme
read with Customs Notification. An order demanding duty foregone,
penalty, confiscation and redemption fine was passed by Commissioner of
Customs, Mumbai. The said order has been contested by the company
before CEGAT Mumbai, and in proceedings before High Court of Mumbai,
wherein it has been contended that the company was restrained from
fulfilling the export obligation: premature action of Customs
Department whilst the EPCG license were valid; and the company has
deposited a sum of Rs.30,50,113/- towards pre-deposit of duty and shown
as advances recoverable. The company has obtained legal opinion that
the matter has merits and has to be suitably contested.
5. The company has been made a party of proceedings before the Debt
Recovery Tribunal in respect of the financial assistance obtained by it
from KSFC. The company has sought one time settlement along with waiver
of interest and penal interest. The company is in the process of
complying with the demands of KSFC for one time settlement pending this
the company is seeking from KSFC withdrawal of the proceedings before
DRT.
6. Debentures are to be redeemed entirely by October 2000 of Rs. 150
lakhs.
7. The company has requested for one time settlement along with
sacrifice of interest and penal interest pending approval in relation
to the redemption/repayment of overdue debentures of Rs.30,09,841/-.
8. The company has got deferred tax assets in the form of unabsorbed
business losses. Accounting Standard 22 `Accounting for Taxes on
Income issued by the ICAI, prescribes recognition of deferred tax
assets only if future profits are virtually certain. Consequently
deferred tax assets have not been recognized due to uncertainty in
future profits.
9. Segment Reporting
The companys operation comprises of Service activities. Primary
segmental reporting comprises of Service segments. In primary segment
revenue and direct expenses, which relate to a particular segment and
which are identifiable, are reported under the segment. Certain
expenses, which are not allocable to any specific segment, are
separately disclosed at the enterprise level. Fixed assets,
liabilities, current assets and current liabilities relating to
specific business segments are identified and reported. Those that are
not identifiable are reported as common items.
11. Audiiors Remuneration:
Audit fee 25000 25000
Tax Audit & Taxation matters 10000 10000
Certification 5000 5000
12. Expenditure incurred in Foreign N.A N.A
Currency
13. Foreign Nationals-Shareholders
No. of Shareholders 3 3
No. of Shares held 117500 117500
14. Previous year figures have been regrouped wherever necessary to be
in conformity with that of current year.
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