1. Contingent Liabilities
(a) The Company may have to pay Income Tax on account of non
realisation of old outstanding Export Bills pertaining to Financial
Year ended on 31.03.1996 as the benefit claimed by the Company U/S
80HHC of the Income Tax Act, 1961 will stand withdrawn (Rs.
69,21,438.00) in that case.
b) Sale Tax demand of Rs. 27,494.00 for the financial year 1996-97 is
disputed in appeal.
c) In the absence of export proceed realisation, the company may have
to refund export benefits like duty drawback, cash incentives etc. to
the Custom Department, Govt. of India. The adjust amount of claim
against the company will be determined after knowing the value of non
realisation of export proceed by the department.
2. The company filed an application before Reserve Bank of India
seeking permission to write off its sundry debtors amounting to
Rs.21,47,90,978.00 by 50%. No provision for bad and doubtful debts has
been made in the books of accounts of the company so far.
3. Various loan accounts from banks and financial institutions remained
dormant during the year with the results, the respective institutions
has declared, the company's Bank Accounts as are non Sub Standard
Assets/NPA and no interest and other charges has been debited to the
loan accounts. It has resulted in under disclosure of loss to the
extent of interest/Penal Interest and other charges due to the
banks/institutions for the period of 01.04.99 to 31.03.2000 amounting
4. In the absence of Audited Statement of Accounts of Trading Office at
Germany, the enclosed Balance Sheet and Profit & Loss Accounts
reflected financial results of business activities carried on by the
Company from India only.
5. The balance of Indian office & Trading office at Germany remained
un-reconciled during the year as the German office & Indian office
follows different accounting year.
6. The following Bank Accounts remained Unreconcilled/Unconfirmed
during the year :-
Name of the Bank
Banaras State Bank Ltd., Mumbai
Banaras State Bank Ltd., Cochin
Banaras State Bank Ltd., Lahurabir
State Bank of India, Mirzapur
Centeral Bank of India, Delhi
7. Term Loan Account of Vehicle Finance from M/s. Tata Finance Ltd.
remained unreconciled during the year.
8. The Trading office at Germany, has filed a suit for recovery of
87,75,910 DM against Sundry Debtors who appears to have declared
insolvant by Amtsgeracht Luderschied (Competent authority). However,
no provision for bad debts has been created during the year, in the
absence of conclusion of insolvency proceeding at Germany.
9. The post facto approval applied by the company for conversion of its
joint venture into wholly owned subsidiary company is still awaited.
10. The Statement of Accounts of the Joint Venture could not be
compiled during the year at Germany due to multifarious litigation
against/by the Joint Venture at Germany.
11. In the opinion of the Board of Directors Current Assets, Loans and
Advances have realisable value at least equal to amount stated in
Balance Sheet in the ordinary Course of Business..
12. Maximum amount due from Directors at any time during the year is
13. The Company is not in position to furnish the information relating
to The Sundry Creditors - SSI, as the Creditors are not willing to
disclose their technical status to the Company.
14. Sundry Debtors, Creditors, Loan and Advances, Weavers accounts
remained Unreconcilled & unconfirmed during the year.
15. Previous year figures have been re-arranged, re-grouped and
re-classified to make them comparable with current year's figure.
16. Figure in brackets relates to previous year.