1. Contingent Liabilities and Commitment:
a) Contingent Liabilities not provided for in respect of:
The Company''s pending litigation is in respect of proceedings pending with Tax Authorities. The Company
has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required
and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does
not expect the outcome of these proceedings to have a material impact on its financial statements.
2. a) In the opinion of the management assets other than fixed assets and non-current investments have a
value on realization in the ordinary course of business at least equal to the amount at which they are
b) The accounts of certain Trade Receivables, Trade Payables and Loans & Advances are however, subject to
formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any
material difference affecting the current year''s financial statements on such
3. There are no Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium
Enterprises Development Act, 2006 to whom the Company owes dues on account of principal amount together with
interest and accordingly, no additional disclosures have been made.
4. As per Accounting Standard (AS) 17 Segment Reporting, segment information has been provided in the
notes to Consolidated Financial Statements.
5. Pursuant to the Companies Act, 2013 (the Act) coming in to effect from 1st April,2014, the Company
had realigned the remaining useful life of its fixed assets in accordance with the provisions prescribed
under Schedule II to the Act. , Consequently in case of assets which had completed their useful life the
carrying value (net of residual value) as at April 1, 2014 amounting to Rs. 863,920 had been adjusted to
Reserves. Also, carrying value of the other assets (net of residual value) is being depreciated over the
revised remaining useful lives.
6. a) The Company has given an advance of Rs. 11,369,203 (Previous Year Rs. 17,820,038) to and pledged
Fixed Deposit of Rs. 85,820,439 (Previous Year Rs. 72,436,320) for issue of bank guarantee/loan taken by HOV
Environment Solutions Private Limited (a step down subsidiary) , which has accumulated losses far in excess
of its paid up capital and reserves & surplus. As explained, the management is hopeful of recovering the
advance in due course of time in view of positive developments / restructuring in the said subsidiary and
therefore, no provision has been made.
b) Loans given to and pledged fixed deposits as guarantee for loan taken by the subsidiary have been
given/ utilized for business purposes.
7. Figures of the previous year have been regrouped / rearranged, wherever considered necessary to
conform to the current year''s presentation.