| I. On an application made by the Company, the Reserve Bank of India
(the RBI) cancelled the registration of the Company as a Non-Banking
Finance Company (NBFC). However the Company can in future carry on the
business of the Hire Purchase & Lease Finance after taking the
necessary approval from the RBI and hence these accounts have been
prepared on the Going Concern Basis and Historical Cost Convention
Method. The management is evaluating various revival proposals for the
company. Hence management is of the view that it shall continue to be
prepared on the assumption that the company is a going concern. Based
on the advice received by the Company and in view of the brought
forward losses, no provision for tax has been made during the year.
II. All the investments are in the name of the Company and are held as
long term investments and provision for decline in value, other than
temporary, has been considered wherever necessary.
III. Employee Benefits:
a. Provident Fund
The Employees Provident Fund and miscellaneous Provisions Act, 1952 is
not applicable, since the number of employees in the company is not
above the limit specified in the Act.
b. Gratuity
The Payment of Gratuity Act 1972 is not applicable, since the number of
employees in the company is not above the limit specified in the Act.
c. Leave Encashment
The company does not provide Leave encashment benefits to its employees
in the absence of any specific obligations.
IV. Since the Company's registration as NBFC is cancelled by the RBI,
the provisions of Section 45 IC of Reserve Bank of India (Amendment)
Act, 1997 regarding creation of a Reserve Fund is not applicable.
V. Provision carried in the books is more than the value of assets
held by the Company, because of the ongoing legal cases which are
pending at different forums at various stages. In view of the above,
the provision is carried as such.
VI. There are no separate reportable segments.
VII. During the current year and in the previous year, the company has
not earned or incurred any income or expenditure in foreign currency.
VIII. Figures for the previous year have been regrouped wherever
necessary.
| 