| 1. Since the plant was not in operation during the year:
I. No depreciation has been provided on Fixed Assets. ( Previous year
- NIL).
ii. No Provision for Income Tax has been made for the Current
Financial Year due to carried forward of losses and accumulated
Depreciation and as per the provisions of Section 115JB (Minimum
Alternate Tax) of the Income Tax Act, 1961 as applicable to Profit of
Sick Industrial Company.
iii. DEFERRED TAX LIABILITY
In accordance with Accounting Standard 22 "Accounting for taxes on
Income" (AS 22) issued by the Institute of Chartered Accountants of
India, deferred tax assets and liability should be recognized for all
timing differences in accordance with said Standard. However,
considering the present financial position and requirement of the
Accounting Standard regarding certainty/virtual certainty, the same is
not provided for as an Asset (Net). However, the same will be
reassessed at a subsequent Balance Sheet date and will be accounted for
in the year of certainty/virtual certainty in accordance with the
aforesaid Accounting Standard.
iv. During the year the Company has sold Fixed Assets worth Rs.
1,85,14,980/-and accordingly, the effect of the same is given in the
Accounts.
v. During the year inventories of the value of Rs. 60,00,000/- are
identified to be having insignificant market value and accordingly the
effect of the same is given in the Accounts.
2. Contingent Liabilities not provided for:
I) Bills discounted with Banks Rs.2,11,283/- (Previous year
Rs.2,11,283/-)
ii) Excise Modvat set off Rs.6,62,799/- (Previous year Rs.6,62,799/-)
claimed, by the Company but disallowed by the Excise Authorities, the
same is disputed in the Appeal.
3. Debenture Redemption Reserve was created in the year 1995-96 in
respect of years ended 31st March, 1993 and 31st March, 1994 amounting
to Rs.33,33,400/-. However, in the absence of profits, the Company has
not set apart any further amount to Debenture Redemption Reserve for
the Financial Years ended 31st March 1995, to 31st March, 2003
amounting to Rs.1,50,00,300/- in the aggregate.
4. Land includes Rs. 39,74,896/- ( Previous year Rs. 39,74,896/-) as
Leasehold Land.
5. In the opinion of the Board of Directors of the Company, all items
of Current Assets, Current Liabilities and Loan and Advances continue
to have a realizable value of at least the amounts at which they are
stated in the Balance Sheet.
Current Assets, Current Liabilities and Loans & Advances are subject to
confirmation / reconciliation and consequential adjustments, if any.
6. There are no Micro, Small and Medium enterprises to which the
Company owes dues, which are outstanding as at the Balance Sheet date.
The above information has been determined to the extent
7. SEGMENT REPORTING:
The Company is not having any sales during the year . Therefore, the
question of segment reporting does not arise as defined by Accounting
Standard - 17 - "Segmental Reporting" issued by ICAI.
8. Previous Year's figures have been regrouped / reclassified where
necessary, to conform to the current year's presentation.
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