1 Contingent Liabilities not provided for in respect of :
 
 a) Bank Guarantees outstanding Rs. 0.95 Lacs (Rs. 0.95 Lacs)
 
 b) Counter guarantee issued by the Company to Shri K. K. Sheth
 (Managing Director) having given personal guarantee for Company''s
 borrowings fom Bank & Financial Institutions to the extent of Rs.
 4,775.00 Lacs (Rs. 4,775.00 Lacs)
 
 2 Income-tax assessments of the Company have been completed upto Asst.
 Year 2010-11. The Company has received notices for re-opening of
 assessments u/s 147 for Asst. Years 2007-08 & 2008-09 in respect of
 set-off of allowances for unabsorbed depreciation and business losses
 claimed against gains arising on account of sale procceds for disposal
 of assets of the Company by secured lenders under Securitisation Act.
 In view of losses incurred during the current year, no provision for
 current tax is made in accounts.
 
 3 The Sales-tax department of Mumbai has passed ''ex parte'' orders for
 F.Y. 2004-05 and raised demand of Rs. 38.38 Lacs against which the
 Company has preferred an appeal which is pending.  In view of arbitary
 additions made by the assessing officer, the Company is hopeful of
 getting due relief in appeal and the demand is not likely to subsist.
 
 4 The development referred to above vide note 4.2 amounts to disposal
 of practically entire undertaking. The Company has no manufacturing
 activity or any business activity. However, the accounts for the
 current year have been prepared on the basis of ''going concern'' as
 followed hi there to.
 
 5 The Company does not have the practice to call for balance
 confirmation in respect of Loans & Advances, Deposits Sundry Debtors
 and Sundry Creditors. In view of substantial outstanding in accounts of
 borrowings from Banks and Financial Institutions and other scattered
 dormant bank accounts, it is not possible to obtain balance
 confirmation in respect thereof. Hence balances in these accounts are
 shown as per the books of accounts and are subject to confirmation or
 reconciliation, if any.
 
 6 The financial statements for the year ended 31st March, 2011 had
 been prepared as per the then applicable, pre-revised Schedule VI to
 the Companies Act, 1956, Consequent to the notification under the
 Companies Act, 1956, the financial statements for the year ended 31st
 March, 2012 are prepared under revised Schedule VI. Accordingly, the
 previous year figures have also been reclassified to confirm to this
 year''s classification.
 
 7 Significant accounting policies and practices adopted by the Company
 are disclosed in the statement annexed to these financial statements as
 Annexure-I.