| (1) Contingent liabilities not provided for in respect of call money
payable Rs.24.50 lacs (Previous year Rs. 24.50 lacs) Income Tax Demand
for the various year Rs. 6.89 lacs not provided as the company prefer
appeal at higher level
(2) In the year 1998 company has acquired Soap manufacturing machinery
in association with M/s Arrowchem Silvasa Limited under lease from TCI
Finance Limited as your company proposed to start soap manufacturing
activity along with marketing of soap but due to differences and
dispute with said Arrowchem Silvasa your company has stop the said
activity However Your company has paid entire lease rental as well as
loan amount as the machinery are still in possession of Arrowchem
Silvasa Ltd At Silvasa and due to lack of technical knowledge your
company has decided not to continue said activity Company has not
provided depreciation on the same and entire amount of hire premium was
capitalised under the head Machinery which is contrary to AS 10
"Accounting for fixed Assets" consequently the net profit for the year,
the net block, and the reserve and surplus have been overstated by that
amount.
(3) Other information pursuant to the para 3,4C & 4D of the Part-ll of
the schedule VI of the Companies Act, 1956 are not applicable.
(4) Provision for taxation has been made after considering exemption
and deduction available at the rate applicable under Income tax Act
1961. Provision for deferred tax is not made In relation to current and
past losses in absence of reasonable certainty that the assets will be
realized in future.
(5) Balances of Sundry Debtors, Sundry Creditors and Loans are subject
to Confirmation and also include some of the debtor and loans to
outsiders which are very old however the Directors of the Company has
certify that it will realized the value stated.
(6) As per the consistence practice Company has shown investment at
cost hence no provision for the fall in the market value of investment
has been made in the accounts
(7) During the year under review company has not provided interest on
loan and advances granted to the joint stock company and other private
parties as they are not repaying the principal and interest as
stipulated and director are of the opinion not to provide the same
hence to that extent income is understated.
(8) Quantitative Details of Stock-in-trade are attached as
AnnexureA.
(9) Company has advances interest free loans to directors, relative of
directors and other firms and company in which director are interested
during the year however necessary permission of the central government
or company law board is not obtained as required under the company act
1956.
(10) Earning Per Share: The amount used as the numerator in calculating
basic and diluted earning per share is the net profit for the period
disclosed in the profit & Loss account.
The weighted average number of equity shares used as the denominator in
calculating both basic and diluted earning per share is 3,50,00,000
equity share of Rs.1/- each for the period 31-3-2007 and 31-3-2006.
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