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
7 Significant accounting policies and practices adopted by the Company
are disclosed in the statement annexed to these financial statements as