| 1. Related Party Diciouser as per Accounting Standard 18: (i) Related
Party Relationships:
(a) Where Control exists: NIL
(b) Key Management Personnel:
Shri Kama! Ranka: Chairman and Managing Director
Shri S. N. Sharma: Whole Time Director & CEO (Upto 24di April' 13)
(c) Relative of Key Management Personnel with whom transactions have
been entered Shri Kanishk Ranka
M/s. Shubham Corporate Advisory Services Pvt. Ltd
2. Deferred Tax Asset
2.1 Provision for Income Tax has not been made for the year in view of
the past accumulated losses.
2.2 The Company is entitled for set off of carried forward losses and
unabsorbed depreciation against the future income under the Income Tax
Act. However, based on present scenario, the company is not certain of
earning sufficient profits to utilize these carried forward losses and
unabsorbed depreciation in future and accordingly the Company has
recognized deferred tax assets only to the extent there is deferred tax
liability, considering the principal of virtual certainty as stated in
the Accounting Standard 22 issued by The Institute of Chartered
Accountants of India. The major components of deferred tax assets and
liabilities on account of timing differences are as given below:
3. Additional Information to the financial statements
3.1 The net worth of the company has been fully eroded as on 31st
March, 2000 as per the provisions of the Sick Industrial Companies
(Special Provision) Act, 1985 (SICA).The Board of Industrial and
Financial Reconstruction (BIFR) has declared the company as Sick on the
basis of fresh reference filed as per audited accounts for the year
ended 31 st March, 2010 and IFCI has been appointed as operating
agency. Company has filed draft rehabilitation scheme with operating
agency and the same is under examination / circulation. Company has
also entered into settlement with various lenders and payments are
being made. Accordingly, pending approval of rehabilitation scheme, the
accounts of the company have been prepared on going concern basis.
3.2 Contingent Liabilities not provided for:
3.2.1 Bank Gurantees and Letter of Credit Outstanding Rs. 834.79 Lacs
(Previous Year Rs. 834.79 Lacs).
3.2.2 Claims and Liabilities against the company not acknowledged as
debts 7 190.25 Lacs (Previous Year 7221.13 Lacs).
3.2.3 Excise Duty demand disputed by the company Rs. 768.19 Lacs
(Previous YearRs. 742.94 Lacs).
3.2.4 Fuel Surcharge, Octroi Duty etc. disputed by the company Rs. 4.20
Lacs (Previous Year 7 4.20 Lacs).
3.2.5 Disputed demand of Sales TaxRs. 316.83 Lacs (Previous Year 7
316.83 Lacs).
3.3 POY Division of the company has been temporary locked out from
14th Novemebr, 2012.
3.4 a) Balances of Debtors, Creditors, Advances, etc. have been taken
as per books of account and are subject to reconciliation /
confirmation and consequential adjustments thereof. b) Balances of
Secured and Unsecured lenders have been taken as per books of accounts
and are subject to reconciliation / confirmation, pending settlement
with respective lenders. Adjustment of the same, if any, would be
accounted for as and when ascertained.
3.5 In the opinion of the Board of Directors; Current Assets, Loans
and Advances (including capital advances) have a value on realization
in the ordinary course of business at least equal to the amount at
which they are stated. Adequate provisions have been made in accounts
for all the known liabilities.
3.6 Penal interest, compound interest and liquidated damages on dues
of Financial Institutions, Banks and others wherever applicable have
not been provided, pending reconciliation (amount not ascertained). The
company expects waiver / relief on sanction of rehabilitation scheme by
BIFR.
3.7 The Hon'ble Company Law Board had passed an order on 23/01/2002
that "The repayment of Fixed Deposit shall be made by the company in
accordance with the revival scheme as and when approved by the BIFR
under the provision of SICA". In view of above, die company has been
advised mat as the repayment of the matured fixed deposits are covered
by the above referred order and the DRS is pending for consideration
before the Hon'ble BIFR, the same are not remained unclaimed and unpaid
within the meaning of section 205 C of the Companies Act, 1956 and as
such no amounts are required to be transferred to the Investor
Education and Protection Fund. However payments on compassionate ground
are being made continuously by the company as per the decision of the
committee formed by the Hon'ble CLB for this purpose.
3.8 The company is under Rehabilitation with Hon'ble BIFR under
provisions of "SICA" 1985. The company has filed Draft Revival Scheme
(DRS) with Hon'ble BIFR and same is pending for consideration and also
for its approval to make the payment to public debentures holders as
mentioned in DRS in full and final settlement of their entire
outstanding dues to surrender of original debentures certificate to die
company. In view of above the company has been advised mat Company is
not required to deposit unclaimed and unpaid redemption amount of
debentures and accrued interest thereon to investors education and
protection fund under section 205C of the Companies Act, 1956.
3.9 Previous year figures have been regrouped and rearranged wherever
cons idered necessary.
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