1. Figures have been rounded off to nearest rupee.
2. Previous year figures have been regrouped/rearranged wherever
3. In the opinion of the Board the Current Assets, Loans and Advances
have a value on realisation in the ordinary course of business at least
equal to the amount at which these are stated in the Balance Sheet and
that the Provision for known Liabilities is adequate and not in excess
of amount reasonable and necessary. There are no Contingent Liabilities
other than those stated below :
a. Bank Guarantee given by Company's Banker: Rs.5.10 lakhs (Previous
Year - Rs.5.10 lakhs)
b. Bills Discounted from Company's Banker: Rs.NIL (Previous Year -
c. Sales Tax/Entry Tax Demand (Under Appeal): Rs.37.13 Lakhs (Previous
Year - Rs.11.56 lakhs)
d. Mandi Tax Demand (Under Appeal): Rs.13.64 Lakhs (Previous Year -
e. Further Interest and Liquidated Damages demand on Term Loans from
IDBI - Rs.NIL (Previous Year - Rs.0.85 lakhs)
f. Income Tax Demand (Under Appeal) : Rs.2.43 lakhs (Previous Year -
4. The outstanding balances under the head Sundry Debtors, Sundry
Creditors, Loans & Advances are subject to confirmation.
5. The computation of Net Profit (for the purpose of calculation of
Managerial remuneration under section 349 of the Companies Act, 1956)
need not be enumerated as no commission has been paid in pursuance of
Section 198 and Section 309 read with Schedule XIII of the Companies
6. Estimated amount of contract (net of advances) remaining to be
executed on capital account and provided for - Rs.8.55 lakhs (Previous
Year - Rs.7.47 lakhs)
7. Excise duty on the goods lying in bonded warehouse aggregating
Rs.956,073/- (Previous year - Rs.323,113) has been provided and
included in valuation of inventory. However there is no effect of this
provision, on profit for the year or reserves as at 31st March, 2003.
8. The disclosure in respect of amount dues to Small Scale Industrial
undertakings is based on the information available with the Company
regarding the status of supplier as Small Scale Industrial Undertaking
under the Industries (Development & Regulation) Act, 1951.
List of small scale industrial undertakings to whom the company owes
sum for more than 30 days as on 31.03.2003, areas under : M/s Shanker
Ginning & Pressing, M/s Garg Ginning Udhyog, M/s Agrawal Ginning &
Pressing, M/s Mahavir Tiles Udhyog, M/s Narendra Industries.
9. Unclaimed dividend includes amount of dividend relating to equity
shares on which allotment money remains unpaid.
10. No provision has been made for interest receivable on allotment
money remaining unpaid in respect of equity shares.
11. In view of carry forward losses and unabsorbed depreciation and
other available deductions the Company does not have any taxable
12. The company has received a sum of Rs. 80,90,940/- from the New
India Assurance Company Ltd on 13th July 2000 towards insurance claim
in respect of the loss of stock by fire on 9th March, 1998 The company
has filed a petition with the National Consumer Forum, New Delhi for
recovery of Rs. 33,17,530/- being the difference in the amount of
Insurance Claim as filed by the company and the amount actually paid by
the insurance company. The company has also lodged a claim for recovery
of the interest for extra-ordinary long delay in payment of the claim
by the Insurance Company.
13. The Property rights of Vehicle purchased under Hire Purchase Scheme
from Banks is subject to Hire Purchase Agreements the principal amount
outstanding as on 31st March, 2003 is Rs.458,333/- (Previous Year Rs.
i) The net deferred tax assets of Rs.1,355,958/- arising during the
ii) The Company expects to generate taxable income in the coming years
which will enable it to utilise the carried forward unabsorbed
depreciation/carried forward business losses.
14. No amount has been provided as doubtful debts or advances/written
off or written back in the year in respect of debts due from or to
above related parties.
15. SEGMENT REPORTING
a. Primary Segment
Business Segment: The Company is primarily engaged in the business of
Cotton Ginning and Spinning of Cotton Yarn As the basic nature of these
activities are governed by same risk and returns, these have been
grouped as single segment i e Textile Therefore, segmentwise revenue,
results and capital employeed have not been disclosed.
b. Secondary Segment
Geographic Segment The geographic segments identified as secondary
segments are `Domestic Market' and Export Market Since there is no
export during the year the same has not been disclosed. The entire
capital employed is within India.