Investments are stated at cost of acquisition.
2) Taxes on Income: deferred tax is recognized on account of timing
differences being the difference between taxable income and accounting
3), Related Party Information
a. Relationship- N.A.
b. Purchases of Rs. NIL (Rs. NIL)
c. Balance as on 31.03.2010- Rs. Nil (Rs. NIL)
4) Foreign Exchange Outgo:
a) C1F Value of lmports Rs. 1,45,29,045/- equivalent to US$ 306,148/-
b) Foreign exchange expenses on account of traveling Rs. 1,52.680
equivalent to US$ 3.000/-
5)The Registrar of Companies had initiated legal proceeding against
certain violations/irregularities committed by Company in earlier
years, as the matter is sub-judice the financial implication of such
irregularities cannot be quantified. Alleged offences for violation of
the provisions under Companies Act. 1956 are compoundable under
section 62 A of the Companies Act, 1956. The Company is in the process
of filing compounding applications for compounding these offences and
withdrawal of the complaints under section 621 A(4)(d)of the Companies
6) The Company''s Income Tax assessments have been completed to the
Assessment Year 2007- 08 and Company. The liability, if any on account
of pending income tax and sales tax assessments will be accounted in
the year of assessment.
7) Investments include an amount of Rs. 97.00.000/-. due from erstwhile
subsidiary Company Goldhammer Securities Ltd., as the entire net worth
of the subsidiary company has been eroded and the application u/s 560
of the Companies Act. 1956 has been made for striking off the name of
the Company from the Register of Companies. Even though some of the
[receivables of the subsidiary company have been taken over by the
Company the realizability of investments in subsidiary company totally
amounting to Rs. 97,00.000/- is doubtful. However pending disposal of
the application U/S 560. no provision has been made in accounts for
this doubtful amount.
8) The Company has not made provisions for interest on loan of
Rs.24,96,960/- from Punjab & Sind Bank (this liability has arisen on
account of invocation of Bank Guarantee given to (National Stock
Exchange). The Bank had filed case against the Company in DRT for
recovery of this amount, which case was dismissed by the DRT on 04th
March 2004 on the merits of the case. The Bank has tiled its appeal at
the DRAT against the order of the DRT and as informed to us the said
appeal is not yet heard.
9) In violation of a Compromise Memorandum of Understanding executed
with the Company Priya Ltd., a decree was obtained by the party against
the Company in a pending litigation for an unjustified amount of
Rs.48,89,115/-. The Company is negotiating with the party for
10) Contingent Liabilities: Show cause notices are not considered
contingent liabilities unless converted into demands.
11) Sundry debtors include an amount of Rs. 4,27,232/- due from an Ex-
Director. The said debt balance has arisen on account of share trading
done by the said director in NSE division in earlier years.
12) The Company has not held certain investments in its own name.
13)Balances of Loans/Advances/Sundry Creditors and Debtors are subject
14) ln respect of interest free business loans given, we are not able
to comment upon the recovery of these funds in absence of relevant
information / confirmation and documentation.
15) Previous year''s figures have been regrouped/ re-arranged, wherever