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As at As at
30.6.2006 30.6.2006
(Rs. in lacs) (Rs. in lacs)
i) a) Estimated nature of contracts Nil Nil
remaining to be executed on capital
account and not provided for (as
certified by the management)
b) Contingent Liabilities; Claims against the
company not acknowledged as debts,
i) On account of various legal cases 5.08 3.59
against the Company pending in different
courts, disputed by the Company .
ii) Penalty imposed by Provident Fund 2.92 2.92
Department Under Employees Provident
Fund and Miscellaneous Provisions Act,
disputed by the Company
ii) As advised by the company, in view of heavy losses & financial
crunch, the company is negotiating with the C&F Agents and dealers to
forego the interest payable on their security for the current year as
well as for the earlier years and accordingly the same has not been
provided for in the books for those cases which are not yet settled and
still under negotiation, which amount to Rs.20.26 Lacs. Had this been
provided the loss would have been higher by Rs.20.26 Lacs.
iii) The balance shown as recoverable under the head Sundry Debtors and
Loans and Advances on the date of Balance Sheet are not confirmed.
iv) In view of the Company closing its accounts on 30th June, each
year, separate set of accounts as of 31st March as per requirements of
Income Tax 1961 duly audited by firm of Chartered Accountants have been
prepared and a return showing a loss has been filed. Accordingly, based
on such return for the accounting year 2005-200 6 no provision for
taxation has been made in these accounts.
v) Deferred Taxes: The Company has not computed the deferred tax
liability in accordance with Accounting Standard 22 Accounting for
Taxes on Income " issued by The Institute of Chartered Accountants of
India. However, since the Company has substantial amount of deferred
tax assets by way of carried forward Losses and unabsorbed depreciation
under the Income-tax Act, 1961, and the amount of corresponding
deferred tax liabilities is not material .As a matter of prudence,
deferred tax assets only to the extent of the assumed tax liabilities
have been recognised , which shall have no impact on accounts.
vi) The Companys operation comprises of only one primary segment viz
trading in "Home Electrical Appliances". Further since virtually all
sales are effected in the domestic market, there is only one
geographical segment. Therefore, the disclosure requirements for
"Segment Reporting" are not applicable to the Company.
vii) Balance of sundry creditors are subject to confirmation.
viii) Previous years figures have been rounded off / regrouped ,
rearranged / re-casted wherevet necessary to conform for comparison
purposes with current year figures .
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