Century Enka

1.  There was no impairment loss on Fixed Assets on the basis of review
 carried out by the Management in accordance with Accounting Standard 28
 issued by the Institute of Chartered Accountants of India.
 
 2.  Estimated amount of Contracts remaining to be executed on Capital
 Account and not provided for Rs. 0.58 Crores (Previous Year Rs. 0.08
 crores) against which advances have been paid Rs. Nil crores (Previous
 Year Rs. Nil crores)
 
 3.  Contingent Liability in respect of:
 
 (a) Taxation matters Rs. 6.08 crores (Previous Year Rs.10.69 crores)
 
 (b) Taxation matters for which department has gone in appeals Rs. 2.94
 crores (Previous Year Rs. 0.68 crores)
 
 (c) Other matters Rs. 0.74 crores (Previous Year Rs.0.70 crores)
 
 4.  (a) Excise Department had retrospectively cancelled registration
 granted to one of the Companys factories at Mahad. This order was set
 aside by the Commissioner (Appeals). The appeal of the Department
 against the order of Commissioner (Appeals) was dismissed by the
 Tribunal against which Excise Department is in appeal before the High
 Court.
 
 Excise Department had also issued various separate Show Cause cum
 Demand Notices (SCNs) on almost similar grounds pertaining to the
 period April 2000 to March 2003 for alleged short payment of duty on
 clearances of Polyester Filament yarn from one of the Companys
 factories at Mahad, denying applicability of an exemption notification.
 These SCNs are yet to be disposed off. In view of favourable order of
 the Tribunal (referred to in the foregoing paragraph) and legal
 opinions received by the Company, the demands are unjustified and the
 Company is advised that it has a very strong case on merits.
 
 5.  Revenue expenditure incurred on Research and Development during
 the year is Rs. 1.37 crores (Previous Year Rs. 0.75 crores).
 
 6.  The Company has opted for Notification No. G.S.R.225(E) issued by
 the Ministry of Corporate Affairs on March 31, 2009 in respect of
 accounting periods commencing on or after December 07,2006 and ending
 on or before March 31, 2011. In accordance with this Notification, the
 Company has credited Rs. 2.62 crores (net of deferred tax of Rs 1.34
 crores) to the General Reserve in respect of prior year on account of
 exchange difference arising on reporting of long term foreign currency
 monetary items relating to fixed assets at rates different from those
 at which they were initially recorded during the period, or reported in
 the previous year financial statements with corresponding effect given
 to fixed assets.
 
 In the current year, exchange loss of Rs. 9.34 crores arising on
 reporting of long term foreign currency monetary items relating to
 fixed assets has been added to the cost of fixed assets in accordance
 with the Notification mentioned above. Had the company not opted for
 this Notification, the profit for the year (PBT) would have been lower
 by Rs. 8.59 crores after considering the adjustment of depreciation
 thereon of Rs. 0.75 crores which is debited to profit and loss account.
 
 7. The Gross Block of Fixed Assets was written up by Rs. 83.01 crores
 on revaluation carried out in the year 1983 and 1989.
 
 8.  Previous Years figures have been regrouped and rearranged,
 wherever necessary.
 
 9.  All the amounts in rupees have been rounded off to crores with
 lacs in decimals as permitted under Notification No.GSR 545(E) dated
 1st August, 2002 issued by Department of Company Affairs, Government of
 India. Figures less than Rs. 50,000 have been shown as actuals in
 brackets.