| 1. CONTINGENT LIABILITIY
a. Liabilities of Excise duty, UPTT/CST and income tax that may arise
on completion of assessments/pending cases as on 31st March,2008 are
indeterminate and hence have not been provided for.
b. A search was conducted by the Excise Authorities on 29.10.1998
against which a demand of Rs. 7,56,948.00 has been raised. The
company has preferred an appeal before CESTAT (formerly CEGAT) New
Delhi against the said demand but has deposited Rs. 6,61,489.00 under
protest. The matter is still sub-judice.
2. In the opinion of the Board of Directors, the Current Assets, Loans
and Advances have a value on realization in the ordinary course of
business at lease equal to the amount at which they are stated in the
Balance Sheet and that no contingent liability exists as on the Balance
Sheet date except those as mentioned here in above.
3. The provisions of payment of Gratuity Act, 1972, Miscellaneous
Provesions Act, 1952 and Employees State Insurance Act, 1948 are
presently the applicable to the company.
4 . Balance of Sundry Debtors, Sundry Creditors, loans and advances and
unsecured loans are subject to confirmation and reconciliation, if any
5. No Managerial remuneration, Sitting Fee for attending Board
Meetings paid/ payable to whole time/Managing Director curing the
period (previous year Rs. NIL).
6. Amount paid/payable to auditors 2007-08 2006-07
(i) As Auditor (Including S.Tax) Rs. 5,618.00 Rs. 5,618.00
(ii) As Adviser or any other capacity Rs. NIL Rs. NIL
7. Provision for income tax has not been made in view of book loss
during the period.
8. So manufacturing operations have been carried on since 29.10.1993.
9. The company is not making provision for wages payable to existing
workers in view of non-operation of plant. Liability, if any shall be
accounted for at the time of actual payment.
10. J.P. Financial Corporation, the main secured creditor of the
company, which had issued notice in January, 2003 under section 13(2)
of the Securitisation and Reconstruction of the Financial Assets and
Enforcement of Security Interest Act, 2002 for recovery of its dues
against the company, has taken over the physical possession of the unit
(factory) i.e. all the assets of the company located at Rania, Kanpur
(Dehat on 26.06.2003 under Section 13(4) of the Act.
11. During the year the company has mutually settled the outstanding
balance of State Bank of India IFB C/C account and the excess of
interest debited in earlier years has been adjusted in the Profit and
Loss Appropriation accounts.
12. In view of continuous incurrence of loss and uncertainty of
adjustment of accumulated losses in terms of tax laws, no deferred tax
liabilities asset is being recognised for past and current timing
differences in terms of Accounting Standard -22.
13. The figures of the previous year have been reworked, regrouped,
rearranged and reclassified wherever deemed necessary to compare the
figures of the current year. The figures of current year of the Profit
and Loss account are for five months.
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