| 1. Previous years figures have been regrouped / recasted wherever
necessary, to make them comparable with the figures of the current
year.
2. Based on the income of Power Generation, the management has
considered the enterprise as On Going concern.
3. The companys borrowings are designated as non performing assets
and therefore no interest was provided in the books of the accounts
from 1st of October 2006. Had this Interest been provided for the year
under review , the same would have amounted to Rs. 5038.22 lacs (P.Y.
Rs 4381.15 lacs), the loss for the period would have been higher by a
similar amount and visa vise the liabilities would have been higher by
an equivalent amount. The accumulated interest not provided since 1st
October 2006 amounts to Rs. 12800.98 lacs.
4. The company being categorized as non-performing asset by the
various banks and accordingly the said various banks, have sold the
assets which were charged to them, under Securitization Act 2002. The
said banks have not provided the details of the assets sold , sale
consideration etc.. Accordingly the company has not recorded the sale
of such assets in the books of account. Had these entries been passed
in the books during the year under audit, the figure of profit/loss
would have been reflected higher/lower in the accounts and the reserves
and surplus would have been higher or lower by equivalent amount and
the fixed assets of the company would have been lower by equivalent
amount.
5. In continuation of above, the company has not been able to give
effect to the deferred taxation due not non availability of accountable
figures.
6. In some cases in absence of significant evidences, the reliance is
placed on management estimates and perception.
7. Prior period Income / Expenses:
a. The prior period Income of Rs.3,11,50,785/- (P.Y. Nil) relates to
claims for short generation of electricity power, in connection with
the MOUs signed with the various vendors of Wind Turbine Generators.
b. The prior period expense of Rs.2,72,46,405/- (P.Y. Nil) relates to
reversal of entry passed for shortage of generation of electricity
power on account of settlement of account with one of the vendors of
the company as per settlement order of the Jurisdiction Court.
8. During the period under review the company has written off
debit/credit balances of Rs.312.96 lac (P.Y. Rs. 2506.19 lac). The
management has stated in the Directors Report as to the reasons for
the write off.
9. The Sundry Debtors and Loans & advances as shown in the Balance
sheet are outstanding for a period of more than one year and we have
relied on management explanation for its receipt in case of debtors and
settlement in case of Loans & Advances.
10. The company had furnished bank guarantees of Rs. 36400.84 lacs
(P.Y. Rs. 36400.84 lacs) towards advance against order to the foreign
buyer. In turn the company had furnished Fixed Deposit of Rs.38547.18
lacs plus interest thereon (P.Y. 38547.18 lacs plus interest thereon )
with bankers for issuing the said bank guarantees. The export order is
not executed and hence the bank guarantees are invoked by the buyer. As
informed by the management, due to non compliance by the bankers as
advised by the beneficiary, the bank guarantees was required to be
invoked by the buyer and as a reultant effect there of, the foreign
exchange fluctuation on the date of invocation was resulted but in the
absence of the relevant details/advices from the concerned bank, the
quantification was not possible hence company could not pass necessary
entries in the books of accounts. Had these entries been passed in the
books during the year under audit, the figure of profit/loss would have
been reflected higher/lower in the accounts and the reserves and
surplus or the current assets of the company would have been higher or
lower by equivalent amount.
11. During the period the company has realized Rs.5.10 Lac (P.Y. Rs.
119.96 Lac) out of total export benefit of receivables of Rs. 22337.55
Lac. ( P.Y. Rs.22337.55 Lac).
12. The inter debit and credit balance adjusted among various parties
are as per the mutual understanding of the company and the parties
concerned. The same are subject to confirmation from the respective
parties.
13. Due to non availability of proper advice from bank, payment
received from Export debtors & short realization due to exchange rate
has not been credited to respective parties. However the same is
adjusted against the total debtors balance.
14. The company has not provided for gratuity and leave encashment and
shall be accounted as and when it is paid.,
15. Loans and advances include Rs.290.37 Lac (P.Y. Rs.185.25 Lac) due
from a company in which directors of the company are directors. Other
than this there are no outstanding from individuals, firms and
companies in which directors are interested.
16. In absence of adequate information, amounts due to small and
ancillary undertakings, included in sundry creditors could not be
identified and therefore not disclosed in the accounts.
17. In absence of confirmation from the parties, the balances
appearing of the debtors, creditors, loans and advances given/taken are
as per the books of accounts.
18. In the opinion of management, the income/expense, of prior
periods, which has materialized during the year is accounted for.
19. Contingent liabilities not provided for in respect of:
(Rs. In Lacs)
As at As at
30.09.2009 30.09.2008
(a) Claims against the Company
not acknowledged as debts 251.75 251.75
(b) Disputed demands in respect
of Income-tax for which appeals have 512.32 512.32
been Filed with ITAT/ Commissioner
of Income-Tax (Appeals)
(c) Demands raised by Sales-tax
Department for earlier years for which 77.27 77.27
appeals have been filed with Sales-tax
Appellate Authorities
(d) Disputed Liability in respect
of Custom and Excise. Amount Amount
unascertainable unascertainable
(e) Corporate Guarantees given to:
(i) Group and Associate Companies 6244.00 6244.00
(Outstanding Liabilities as on
30.09.2009 Rs. 6244.00 lacs,
P.Y. Rs. 6244.00 lacs )
(ii) Subsidiary Company NIL NIL
(Outstanding Liabilities as on
30.09.2008 Rs. 0 lacs, P.Y. Rs. 0 lacs)
(f) Capital Commitments. NIL NIL
Estimated amount of Capital Contracts not
Provided for ( Net of Advances)
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