1. Contingent Liabilities not provided for (As certified by the
(a) Claims against the company towards listing fee for three stock
exchanges not acknowledged as debt is Rs. 3.63 Lacs (Previous Year Rs.
3.11 Lacs) as company has sought delisting from these stock exchanges.
(b)Outstanding Bank Guarantees for Rs.31.03 lacs (Previous Year Nil)
(c) The company has filed an appeal before The Custom, Excise & Service
Tax Appellate Tribunal (CESTAT) in the matter of excise duty involving
disputed amount of Rs. 2.52 Lacs (Previous Year Rs. 2.52 Lacs). The
case is in progress and the company is likely to succeed. The matter
being sub-judice, no provision has been made in the books of accounts.
(d) Demand of entry tax amounting to Rs.4.36 Lacs (Previous Year Rs.
4.36 Lacs) under U. P. VAT Act disputed in Appeal. However, the same
has been deposited with department under protest.
2. Amount recoverable from Statutory Authorities shown under schedule
Short Term Loans & Advances of the balance sheet includes a sum of
Rs.46,13,849/- for which the company filed a claim before the trade tax
authorities during the F.Y.2009-10 for refund of Trade Ta x paid on
purchases and stock transfer in respect of Molasses for the earlier
years in view of the decision of the Hon''ble Allahabad High Court in
the case of M/s. SAF Yeast Company Private Limited vs. State of U.P.
and Another. The claim of the company before the appropriate
authorities is still pending.
3. The Company has not received any information from suppliers or
service providers, whether they are covered under the Micro, Small and
Medium Enterprises (Development) Act, 2006. Therefore, it is not
possible to give the information re- quired under the Act.
4. In the opinion of the Board, the Current Assets, Loans and
Advances including Sundry Debtors are of the value as stated in
financial statement in the ordinary course of business, although, some
of them are outstanding for a long period. The provision of all known
liabilities has been made. The accounts of certain debtors, creditors,
other liabilities and advances are subject to confirmation and
5.The arbitration cases relating to supply of rice to Govt. of
Bangladesh during 1995-96 pending in Bangladesh have been awarded in
favour of company allowing our claims of USD 427,021.89 against Govt.
of Bangladesh. The arbitration awards have been filed with the
appropriate court in Bangladesh and the Court has made the award as
rule of law. However, the Govt. of Bangladesh filed an appeal against
the same before the Hon''ble High Court at Bangladesh, which is pending
6. As the Company''s business activity falls within a single primary
business segment viz. Manufacturing of Yeast and there is no
reportable secondary segment i.e. geographical segment, the disclosure
requirement of Accounting Standard-17 Seg- mental Reporting as
notified by the Companies (Accounting Standards) Rules, 2006 (as
amended) is not applicable.
7.a) Provision for tax under Income Tax Act, 1961 has not been made
in view of the adjustable brought forwarded accumu- lated
b) No provision for minimum alternative tax (MAT) on book profit has
been made in the accounts in light of the direction to the appropriate
authority by order of Board for Industrial and Financial Reconstruction
(BIFR) as To consider to grant exemption from the levy of MAT under
section 115JB of the Income Tax Act, 1961 for a period upto 31.03.08 or
till the accumulated losses are wiped out as per Income Tax Act, 1961,
whichever is later. The matter is yet to be confirmed for exemption by
the appropriate authority.