Deep Industries

A.  Contingent Liabilities
 
 Provision is made for all known liabilities and contingent liabilities
 not provided for :
 
 B.  In the opinion of the board, the current assets, loans and advances
 are approximately of the value stated if realized in the ordinary
 course of business. The provision for all known liabilities are
 adequate and not in excess of the amount reasonably necessary.
 
 C.  Other Information pursuant to paragraphs 3, 4, 4A, 4B and 4D of
 Para-ll of the Schedule VI is given as under so far as applicable to
 the Company.
 
 (a) The Company has not employed any person drawing remuneration of
 Rs.2,00,000/- per month or more or Rs.24,00,000/-per annum.  As the
 Company is engaged in providing services there is no manufacturing
 activity carried out and information in respect of installed capacity,
 production capacity, raw material consumption, opening and closing
 stock of goods produced and consumption of indigenous and imported raw
 materials and spares thereof and turnover of goods produced is not
 given.
 
 D.  Capital Commitment Expenses: Estimated amount of contracts
 remaining to be executed on capital account and not provided for (net
 of advances) are Rs. 10 Crores.
 
 E.  Figures are rounded off to the nearest rupee and the previous year
 figures are regrouped wherever necessary.
 
 F.  Expenses in nature of fooding, vehicle hiring and guest house
 related to operation have been debited to operating expense & relevant
 expenses which were shown under the head Administrative Expenses in
 previous year have been regrouped to that extent. Cenvat Credit
 receivable is shown under Income Tax & Cenvat Credit Receivable which
 were shown under Other Loans, Advances & deposits.
 
 G.  Segment Reporting
 
 The Company is engaged in the service activity having mainly the
 domestic hire charges income and there are no separate reportable
 segment as per Accounting Standard 17 - Segment Reporting issued by
 the Council of the Institute of Chartered Accountants of India.
 
 H.  Impairment of Assets
 
 The carrying amounts of assets are reviewed at each balance sheet date,
 if there is any indication of impairment based on internal/external
 factors. An impairment loss will be recognised wherever the carrying
 amount of an assets exceeds its estimated recoverable amount. The
 recoverable amount is greater of the assets net selling price and
 value in use. In assessing the value in use the estimated future cash
 flows are discounted to the present value at the weighted average cost
 of capital. During the year there is no impairment losses on assets of
 the Company.
 
 I. The Company in the previous financial year has issued 20,00,000
 Convertible Warrants of Rs. 200/- each aggregating Rs. 40,00,00,000/-
 and has received Rs. 4,00,00,000/- being Rs. 20/- per Convertible
 Warrants. The said Convertible Warrants were allotted on 31stJanuary
 2008. The proceeds of the preferential issue will be used for
 exploration operations( Coal Bed Methane Blocks) at Singrauli (Madhya
 Pradesh) and Godavari Valley (North) - (Andhra Pradesh). Till 31st
 March 2009, the Company has incurred Rs. 1,96,94,280/- towards
 development of abovementioned CBM blocks for which convertible warrants
 were issued in last year.