1. Contingent Liabilities not Provided
for in respect of: 2009-10 2008-09
(i) Disputed demands of Income Tax Department NIL NIL
(ii) Claims against the Company not
acknowledged as debts 1,66,000 1,66,000
(iii) Performance guarantees given
by a Bank 23,75,000 22,67,000
(iv) Disputed Bank Penal Interest 6,11,000 --
2. The incremental liability towards gratuity for the Accounting year
as per actuarial valuation amounting to Rs.8,50,000/- has been provided
in the current accounting year(Previous year Rs. 7,75,000/-),
3. In the opinion of the Board of Directors, the Current Assets are
approximately of the value sj stated against them if realized in the
ordinary course of business, unless otherwise stated. The Provision of
depreciation and all known liabilities is adequate and not in excess of
the amount reasonably necessary.
4. The balances of debtors/creditors and sundry deposits are as per
Books of Account only.
5. Excise duty in respect of goods manufactured by the Company and
according to the method of accounting consistently followed, is
accounted at the time of removal of goods from the factory for sale and
captive consumption. Such excise duty liability as at 31s1 March, 2010
is estimated at Rs. NIL (Previous year Rs.NIL). This accounting
practice, however, has no impact on the profit for the year.
6. In view of the amendments to part I of Schedule VI of the Companies
Act, 1956, vide notification No. GSR 129 (E) dated 22nd February, 1999,
issued by the Department of the Company Affairs (DCA) relating to Small
Scale Industrial undertakings and considering the multiplicity and
difficulty in identification of accounts of such undertakings, the
information of determining the particulars in respect of indebtedness
of such undertakings as on 31 March 2010 is not available. However,
there are no specific claims from suppliers under the Interest on
delayed payment to Small Scale and Ancillary Industrial Undertaking
7. Provision towards repayment of Interest free Sales Tax Loan,
received from SICOM Limited has been made on the basis of Present Value
@ 1.25 per cent per month.
8. Sales include trading sales of Rs.274.18 lakhs and. the
corresponding finished goods purchased during the year are included in
Raw material consumed.
9. Previous years figu res have been regrouped and recast wherever
10. Significant Accounting Policies followed by the Company are
disclosed in the statement annexed to this schedule.