Shree Ganesh Forgings Limited was incorporated on September, 18, 1972. The company is involved in manufacturing of steel flanges. Company was a leading company in forging industry for nearly 15 to 20 years .But during the last 5 years company is on the decline due to financial problems.

2) Secured Loans:

During the period under review, interest accrued on secured loans has not been Accounted in the books since interest by the lender banks has not been charged in the Account consequent to the amount being declared as non-performing assets.

The company is presently under negotiation with the consortium for settling the outstanding dues.

3) Contingent Liabilities:

i) Interest on secured loans forthe period under review has not been debited by the banks and accordingly, not provided for, amount is not ascertainable as of date.

ii) The sales tax department has raised demand on the company which has been contested. In the opinion of the management, this amount will not be payble,therefore not Provided for.

4) The Income Tax Assessments of the company have been completed upto assessment Year ended 31st March, 2007.

5) Sales Tax Assessment has been completed upto the year ended 31st March, 2006.

6) The balances of Sundry debtors, Sundry creditors, advances and deposits are subject to Reconciliation, con- firmation and acceptance from the parties.