As explained to us, the Company has not employed during the year any personnel, who are eligible for gratuity under the Payment of Gratuity Act, 1972. Hence, no provision is being made for future gratuity liability on actuarial basis.

Note: 2

In view of carried forward business losses and unabsorbed depreciation, no provision for Current tax is being made.

Note: 3 Contingent liabilities:

a. Claims against the company not acknowledged as debt by the company:

i) The claim by the Customs Department, Mumbai in respect of earnest money received for sale of Mumbai Office from Mr. Naval Bangard, Ms. Sangeeta Bangard & others and subsequently forfeited by us amounting to Rs.35.00 lacs.

ii) Devolvement on underwriting obligations (including sub-underwriting) in respect of Kanan Steel Ltd. during the financial year 1995-96 amounts to Rs.21.15 lakhs.

b. Being aggrieved and dissatisfied by the order of the Income tax appellate tribunal dated 27-9-1999 for the Asst. yr. 1994-95 and 1995-96 allowing depreciation amounting to Rs.1,59,13,750/- and Rs.1,59,13,750/- respectively in respect of one of the leased assets, the department of Income-tax has preferred an appeal against the said order of ITAT with the High Court of Gujarat. As the ITAT's order was in favour of the company, the Income-tax department has preferred an appeal. The appeal is still pending before High Court of Gujarat. However, the directors do not envisage any liability of Income tax arising out of such appeal.

Note: 4

It is not possible to identify SSI undertakings from amongst sundry creditors/other liabilities. Hence, details of dues to SSI undertakings are not being furnished.

Note: 5

There is no expenditure or income in foreign currency.

Note: 6

As per requirement of Reserve Bank of India, as the company has not earned any net profit during the year, hence no appropriation has been made to Special Reserve Fund.

Note: 7

In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realized in the ordinary course of the business except doubtful loans and advances not provided for as mentioned in Note 7. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

Note: 8

Balances of Debtors, Creditors, Loans and Advances, deposits and other loans are as per the books and subject to confirmation and reconciliation, if any from respective parties.

Note: 9

Previous year's figures have been regrouped and re-arranged wherever necessary.