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1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN BOOKS OF ACCOUNTS
2007-2008 2006-2007
(1) Estmiated amount of contracts remaining
to be executed on 6.67.00.000/- 6.67.00.000/-
Capital Accounts (Net of Advance)
las certified by the Management )
(ii) Claims against the company not
acknowledged debts 6,62,67.042/- 662.67.042/-
(iii) Disputed Liabilities not provided
(a) Tax demand in respect of Block
assessments 1,57.59.845/-1.57,59,845/-
(b) Tax demand in respect of AY 1998-1999 8,12,215/- 8.12,215/-
(c) Tax demand in respect of A.Y. 2001-2002 3.45.337,- 31.45.337/-
(d) Tax demand in respect of A Y. 2002-2003 8.60.588/- 8,60.588/-
(e) Tax demand in respect of AY. 1997-1998 1.47.000/- (Aprox)
2. In view of the legal advise received from the companys legal
Adviser the company has not made following provisions :
(a) In the case of Bombay Mercantile Co-Op. Bank no provision has been
made for interest on outstanding balance as Bank has considered these
advances as tinder NPA in their books of accounts.
(b) Dena bank has filed suit against the company for recovery of
outstanding dues with the interest for Rs. 6.62,67,042/- in Debt
Recovery Tribunal for outstanding dues and interest which the company
has disputed. Since Dena bank has classified the companys account as
NPA. no interest was charged by them for the year and hence no
provision has been made in the Books of account. The company has in
turn filed suit against Dena Bank in Debt Recovery Tribunal for Rs. 21
Crs. Towards loss of damages for non release of sanctioned funds.
3. Provision for gratuity is not made as none of the employee have
completed requisite period of service as informed by the management
4. Balance with Debtors, Creditors and Loans & advances are subject to
confirmation & reconciliation.
5. In the opinion of the Board of Directors, the aggregate value of
Fixed Assets, Current Assets, Loans and Advances stated in the Balance
Sheet are approximately of the value, if realized, in the ordinary
course of business. The provisions of all known liabilities are
adequate, and not excess of amount reasonably required.
6. As the companies business activities fall within a single primary
business segment i.e. Pharmaceuticals and chemicals, the disclosure
requirement of "AS 17" Segment Reporting issued by the Institute of
Chartered Accountants of India is not applicable.
7. Deferred Tax assets / Liabilities are not in the current year as
there is virtual certainty and evidence that there will not be any
future taxable Income which will be available against which such
Deferred Tax Assets / Liabilities could be realized or adjusted.
8. Loans & Advances as shown in Schedule 8 includes Rs. 42,52,360/-
due from M/s Unico & Co. against which company has initiated steps for
its recovery and is confident of its realization. In view of this, the
above amount has been considered as good and no provision has been
considered necessary.
9. The Board confirms that all transactions in which supporting
evidence are missing have genuinely occurred for the purpose
of"business. P. All payment made under contractual obligations or
accordance with generally accepted business practice has not been
considered as expenditure of personal nature
10. The Schedule referred to in the Balance Sheet is forming integral
part of the accounts.
11. The previous years figures have been reworked, regrouped,
rearranged and/or reclassified wherever necessary.
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