1. Contingent Liabilities not provided for in respect of:
(Rs.) lacs (Rs.) lacs
Central Excise 390.43 390.43
Sales Tax 890.35 890.35
Income Tax 2030.29 2040.29
An amount equivalent to the additional charge of depreciation has been
withdrawn and transferred from Revaluation Reserve to profit & Loss
2. Sale includes a sum of Rs.23,51,54,389/- (Previous year Rs.
27,76,90,684/-) (at transfer price) towards the value of internal
3. Balance confirmations are not available in some cases in respect of
Sundry Creditors, Sundry Debtors, Loans & Advances and Unsecured loans.
4. On the basis of letters and correspondences, the balance under
Sundry Debtors and Sundry Creditors are netted off with advances
received/paid from/to non-identical parties respectively.
5. The petition no. 306 of 2008 of the Scheme of settlement under
Section 391 (2) of the Companies Act ,1956 for the matter of settlement
of dues of the secured creditors has granted by the Honble High Court
of Calcutta vide order dated 14.01.09. Accordingly the amount over and
above the settlement money Rs.1434.57 lakhs (previous year Rs.6892.90
lakhs) has been written back in the Profit & Loss Account.
6. The Company on the basis of information available to it, has not
able to verify the status of vendors under Micro, Small and Medium
Enterprises Development Act, 2006 and hence disclosure relating to
amounts unpaid as at the year-end together with interest paid/payable
under this Act have not been given.
7. Disclosure of Related party transactions in terms of Accounting
Standard-18 are given below: i) Name and description of relationship
with related parties :-
a) Mr. Suraj Ratan Mundhra, Key Management Personnel, Chairman &
b) Substantial interest/Relatives: Rajesh Mundhra
The Company does not have any outstanding dilutive potential equity
shares. Consequently basic and diluted earning per share remains the
8. In accordance with the requirement under Accounting Standard 22 on
Accounting for Taxes on Income, Deferred Tax Assets net off
Liabilities at the year-end has not recognized the same in the accounts
in view of the uncertainty of the future taxable profit of the Company.
9. As the company is a Sick Industrial Undertaking declared by the
BIFR within the meaning of section 3(1 )(0) of the Sick Industrial
Companies (Special Provision) Act,1985, the company is eligible to get
relief under Section 115JB clause v(1 )of the Income Tax Act. Hence no
provision has been created in the books of account for MAT (Minimum
Previous years figures have been re-arranged/re-grouped, wherever