| 1. CONTINGENT LIABILITIES
There was Income Tax demand for the Assessment Year 1997-98 for
Rs.1,26,26,182/- and for the Assessment Year 1998-99 for Rs.
1,81,72,825/-. The company has filed appeals before the Hon'ble High
Court of Madras and the same have been decided in favour of the
Company. The Company has so far paid Rs.46.31 Lakhs for tax arrears and
the Company is entitled to receive the refund, if there is no further
appeal by the Income Tax Department.
2. No provision for Income Tax is considered necessary in view of the
carried forward losses.
3. The outstanding in Escrow Account as on 31.03.2014 is Rs.0.38 Lakhs
which is payable to the depositors on their demand.
4. As per Accounting Standard 22, "Taxes on Income" the Deferred Tax
Assets in respect of carried forward losses and depreciation has not
been incorporated due to uncertainty of set off and as a matter of
prudence.
5. Considering the nature of business of the Company, quantitative
information as required under paragraphs 4C and 4D of part II of
Schedule VI to the Companies Act, 1956 is not relevant.
6. Other than Provisions as required and necessary, for non-performing
loans, the manage ment has based on a review of its other assets:
a) Provided for diminution/ increase in the value of (Rs.60,515/-) of
its investments (Previous year Rs. 1,29,990/-)
b) The Company does not have any subsidiary company.
7. Disclosure is not required I made in terms of AS-17 Segment
Reporting issued by the Institute of Chartered Accountants of India
considering the nature of the Company's business and its activities /
operations which are based on financing activities in the domestic
market.
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