| 1. Contingent liabilities not provided for in respect of: (Rs. in
000)
a) Sales Tax Demand of Rs. 139.30 Lacs (P. Y-Rs. 139.30 Lacs) for C/D
Forms due from MTNL/DOT. Efforts being made to collect the forms.
2. Stock of components valued at Rs. 1,95,074/- lying at Bonded Ware
House since 1992-93, which is still to be cleared and any liability on
these amount will be accounted for at the time of clearance.
3. No provision for gratuity and accrued leave salary has been made in
the accounts. Liability ascertained as per actuarial valuation
amounting to Rs. 71.39 lacs and Rs. 32.15 lacs including Rs. 5.46 lacs
and Rs. 2.49 lacs respectively for the year, resulting in loss for the
year current liabilities being understated by the respective amount.
4. Amount of excise duty on closing stock of finished goods, not
provided for in the accounts, is Rs. 7.13 Thousands (Previous year Rs.
7.13 thousands). However such non provision has no effect on the loss
made by the company during the year.
5. The Company has not been treated as a sick company within the
meaning of clause 0 of sub sec. 1 of sec. 3 of sick Industrial
Companies (special Provision) Act 1985 (1 of 1985) on a reference made
to the board of BIFR in 1994.
6. No provision has been made in the accounts for Sundry Debtors
considered doubtful amounting Rs. 5.38 Lacs since the Company is making
efforts to realize the debt amount.
7. In absence of necessary documents the clause as to "free of
Interest" in case of inter corporate deposits amounting to Rs. 37 lacs
has been accepted by the auditors as confirmed by the management.
8. As per West Bengal industrial promotion Assistance to Industrial
unit Scheme 1994 the company has to pay Sales Tax amount collected by
it and in turn it should have received 90% of the amount from the
Government as Sales Tax grant under the above scheme. Instead of
depositing the full amount for three quarters of the year 1994-95 it
has deposited only 10% (retaining 90% amounting to Rs. 10.83 lacs). The
company is yet to get the order from sales tax authorities in this
regard. The matter is under appeal.
9. In the opinion of management there are no assets requiring
impairment in terms of Accounting Standard (As 28), which has not been
taken into consideration in preparing these Financial Statements.
10. The company has not recognized Deferred Tax Asset (Net) as per
Accounting standard - 22, regarding "Accounting for Taxes on Income" in
view of consistent losses and uncertainty regarding estimation of
future profit with reasonable certainty.
11. The company has not provided any interest payable on unsecured
loan from WBEIDC Ltd. As the corporation in their Books of Accounts has
not booked interest income for the year as approved by their Board of
Directors.
12. There is no related party transactions which is required to be
disclosed as per Accounting Standards -18 regarding "Related party
Disclosure".
13. Borrowing cost capitalized during the year is Rs. 126.87 Lacs.
14. The Company does not have any expense of foreign exchange
fluctuation at the end of the year.
15. Amount due to Micro and small enterprises is Rs. Nil.
16. In the absence of any confirmation from the Bank no interest
income provision has been made in fixed assets held with Overseas Bank.
17. Previous year figures have been regrouped and rearranged wherever
considered necessary.
18. Previous year figures have been given in brackets.
19. The company has ceased off the production but as informed by
management, the going concern status is still intact.
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