2010-11        2009-10
 
                                      (Rs. in Million) (Rs. in Million)
 
 1.  Contingent Liabilities
 
 (a) Income Tax
 
 Demands disputed and under appeal             9774.02        12161.97
 
 (b) Sales Tax, Service Tax, Excise duty, 
 Municipal Tax Demands Disputed and under
 Appeal                                        4906.00         9429.22
 
 (c) Disputed Demand under Lease Act             37.39               -
 
 (d) i Interest to DDA on delayed               Amount          Amount
 
 payments/pending court                  Indeterminate   Indeterminate
 
 cases/Tax cases
 
 ii Stamp duty payable on land and              Amount          Amount
 
 buildings acquired by the company           Presently       Presently
 
                                       Unascertainable Unascertainable
 
 (e) Claims against the company not
 
 acknowledged as Debts                        10003.92        10372.83
 
 (f) Bank guarantee & Letter of Credit          951.15          950.89
 
 (g) Directory dispute                         2858.34         2858.34
 
 (h) Interest demanded by''DOT and disputed by
 company on account of delay in payment of
 Leave Salary and Pension Contribution         1738.10         1738.10
 
 (i) Pending court cases against land    Indeterminate   Indeterminate
 acquisition
 
 2. Estimated amount of contracts remaining to be executed on capital
 account in respect of Purchase order/sanctioned estimate is Rs.4467.43
 Millions (Previous year Rs. 9515.40 millions). The above figure has
 been arrived at on the basis of capital sanction instead of Purchase
 Order issued. In respect of contracts where the expenditure already
 incurred has exceeded the contract value and the contract remains
 incomplete, the additional expenditure required to complete the same
 cannot be quantified.
 
 3.  Other liabilities include credits on account of receipts including
 service tax from subscribers amounting to Rs.417.45 Million (Rs.385.21
 Million), which could not be matched with corresponding debtors or
 identified as liability, as the case may be. Appropriate adjustments/
 payments shall be made inclusive of service tax, when these credits are
 matched or reconciled.Therefore, it could not be adjusted against
 making provision for doubtful debts.
 
 4.  a) The company had claimed benefit under section 80 - IA of the
 Income Tax Act, 1961 for the financial year from 1996-97 to 2005-06.
 The appellate authorities have allowed the claim to the extent of 75%
 of the amount claimed. The company has preferred appeals for the
 remaining claim before the Hon''ble Court of Delhi. The company has
 retained the provision of Rs.4003.32 million for this claim for the
 years 1997-98,1998- 99 and 1999-2000, however, the demands on this
 account amounting to Rs.4138.30 million for the years 1999-00 to
 2005-06 have been shown as contingent reserve.  / ''peal effect for the
 same has been received during this year except 2004-05.  However, on
 reconciliation certain discrepancies are noticed. Rectification
 application has been filed for Rs.4979.36 million.
 
 b) A Contingency Reserve of Rs.4138.30 million was created from the
 Profit & Loss Appropriation Account to meet the contingency that may
 arise out of disallowances of claim of benefit u/s 80IA of Income Tax
 Act,1961 .The contingency reserve so created excludes an amount of
 Rs.4003.31 million for which the provision was created from the years
 1996-97 to 2000-01 and the same is still maintained in the books of
 accounts after considering the benefit as allowed by ITAT in the
 current year.
 
 c) In accordance with Accounting Standard 22, accounting for taxes on
 Income, the company has deferred tax assets amounting to Rs. 15932.20
 million (Rs. 10571.36 million) including Rs.3251.23 million (Rs.2269.51
 million) on account of unabsorbed depreciation and Rs.12680.97 million
 (Rs.4081.13 million) brought forward business losses as on 31.3.2011.
 However, in the current Telecom Industry Scenario, there is no virtual
 certainty of availability of sufficient future taxable income against
 which the above asset can be realized. Hence, the Deferred Tax asset
 has not been accounted for. DTA amounting to Rs. 15932.20 million shall
 be created in the year in which the company will have virtual certainty
 of future taxable income as required by AS-22 issued by ICAI.
 
 d) Based on expert opinion, the company has not been deducting tax
 deducted at source for IUC services rendered from BSNL. Besides
 liability provided on account of pension contribution expenditure on
 the basis of actuarial valuation is considered as an allowable
 expenditure based on expert opinion.
 
 5.  a) Provision for taxation for the current year comprises of Income
 Tax of Rs. Nil Million, Wealth.Tax of Rs.i .91 Million.
 
 b) During the year, the company has suffered a business loss of Rs.
 28019.15 million.  The company intends to carry forward its business
 loss including unabsorbed depreciation/amortization* to the tune of Rs.
 22170.49 million as per calculation made under Income Tax 1961.
 
 6.  (a) The supplemental agreement entered into between United India
 Periodicals Pvt. Ltd.  / United Data Base (India) Pvt. Ltd/ Sterling
 Computers Ltd and the company for printing of telephone directories was
 struck down by the Hon''ble High Court of Delhi on 30.9.92 and the said
 decision was upheld by the Hon''ble Supreme Court of India on 12.1.93. A
 claim against the Company has been raised by Sterling Computers Ltd.
 for Rs. 258.2 Million which being under dispute, has not been provided
 for. The company has filed its counter claims of Rs. 228.7 Million
 before the Hon''ble High Court against Sterling/UDI/UIP and has also
 filed arbitration claims of Rs. 561.8 Million plus interest @ 21% per
 annum against these parties under the original agreement. Pending
 finalisation of this dispute, the company has raised and recorded as
 ''Claims Recoverable'', a claim for Rs. 154.91 Million (Rs. 154.91
 Million) on account of royalty, interest and billing charges and on
 payments made through Letter of Credit; Rs. 130.47 Million (Rs.130.47
 Million) recovered there against by the company from subscribers for
 the issue of directories, is carried under ''Current Liabilities''.
 Further claims of the Nigam for interest and service charges
 aggregating Rs. 143.67 Million (Rs. 143.67 Million) have not been
 accounted for. Financial implication of the claim raised against the
 company, adjustment of the sums received against outstanding claims,
 any non- realisation of claim and further claims recoverable shall be
 effected upon determination based on the outcome of the proceedings in
 the court of law.
 
 MTNL has filed OMP No.151/1996 seeking enlargement of time under
 Section 28 of the Arbitration Act for the Arbitrator to publish the
 award. The case'' is still pending and will be listed along with OMP No.
 135/94 for final hearing. The petitioner M/s United India Periodical
 (Ltd.) filed OMP No. 135/94 in the High Court of Delhi challenging the
 appointment of Arbitrator under Section 33 of the Arbitration Act
 ''1940. The Petition is pending from 24.10.1994 in the High Court of
 Delhi. Now the petitioner has filed an application for amendment in the
 petition filed in the year 1994 with the prayer that the arbitration
 clause 20 of the original contract dated 14.3.1987 be determined by the
 Hon''ble Court of the subsequent events. The petitioner has also took
 plea of res- judicata as the MTNL filed the Suit No.4628 of 1994 in
 Mumbai and the same is pending before the Bombay High Court. The case
 is now listed in the category of finaf matter and is on regular board
 of the Court for the both the aforesaid OMP''s.
 
 The suit filed by MTNL against M/s Sterling Computers and others is
 pending in the High Court of Mumbai in which claims to the tune of
 Rs.228.7 million towards Royalty, Interest on Royalty amount upto
 31.8.1994, amount paid against LC, Interest on amount of LC, L/D for
 non-performance and other charges etc. for Delhi and Mumbai both units.
 This suit is filed after non-performance of supplementary agreement
 dated 19.7.1991 & 26.9.1991 by M/s Sterling Computers Ltd. The case is
 still pending at Mumbai High Court.
 
 (b) MTNL entered into contracts with M/s M & N Publications Limited for
 printing, publishing and supply of telephone directories for Delhi and
 Mumbai units for a period of 5 years starting from 1993. In view of the
 breaches of the terms and conditions of the contracts committed by the
 contractor in publishing first issue of the directories of both units
 and their failure to execute the remaining part of the contracts, both
 the contracts were terminated by MTNL on 22.07.1996. Income from
 royalty and other applicable recoveries, for first issue published by
 contractor, Rs. 181.2 Millions have been accounted for and received. As
 regards Delhi Unit, MTNL has claimed to the extent of Rs.2110 million
 (approx.) plus interest thereon at various rates while M/s M&N
 Publications have counter claim of Rs.2860 million (approx.) plus
 interest thereon.  Sole Arbitrator has been appointed by both the
 parties. The effect of claims under the contract for remaining issues
 published by contractor will be accounted for in the year of issuing of
 award by the Sole Arbitrator.
 
 7.  Certain Lands and Buildings capitalized in the books, are pending
 registration/legal vesting in the name of the company and the landed
 properties acquired from DOT have not been transferred in the name of
 the company and in the case of leasehold lands, the documentation is
 still pending. In case of Mumbai Unit legal vesting of land and
 building of the value of Rs. 31.42 Million acquired after 1 st April,
 1986 is under process.
 
 8.  The Mumbai Unit had applied for amnesty under the Maharashtra Kar
 Nivaran Yojana, 1999 in respect of the Sales Tax demands of Rs 8.10
 Million (Rs. 8.10 Million). The application for amnesty towards demands
 aggregating Rs.2.09 Million (Rs.2.09 Million) has been accepted.The
 balance applications relating to demands of Rs.6.02 Million (Rs.6.02
 Million) are under process and are not included under Contingent
 Liabilities.
 
 9.  a) Delhi Unit has accounted for the expenditure on account of
 telephone bills of service connections raised by BSNL towards MTNL for
 the period from 01.10.2000 to 30.09.2006 to the tune of Rs. 98.01
 million on the basis of actual reimbursement made for subsequent
 periods against the disputed claim of Rs.312.72 million, since no
 details / justifications are received from BSNL in spite of repeated
 persuasion till date. The balance amount of Rs. 214.72 million is shown
 as contingent liability.
 
 b) No Trunk Automatic Exchange (TAX) charges has been billed to BSNL
 for usage of MTNL TAX vide letter No.MTNL/CO/TR/BSNL/2009-11/81 dated
 11.05.2011.  (Previous year Rs.700.83 Million).
 
 c) In both Delhi and Mumbai Unit an amount of Rs.3335.88
 million(Rs.3336.21 million) and Rs.2625.19 million (Rs.2616.20 million)
 has been accounted as receivable and payable from BSNL respectively on
 account of IUC charges.
 
 d) During the year an amount of Rs.586.65 million (Rs. 403.17 million)
 have been accounted for as Infrastructure Usage charges receivable from
 BSNL for using the various office building and spaces of MTNL and
 Rs.33.27 million (Rs''12.62 million) vice-versa.
 
 e) During the year an amount of Rs. 184.91 million (Rs.86.12 million)
 has been accounted as receivable from BSNL on account of Property Tax,
 Electricity, water and fuel charges by both Delhi and Mumbai Units.
 
 10.  As per directions of the court one UASL operator has deposited
 Rs.3412.74 million against the claim of the same amount. The company
 has recognized revenue of Rs.2367.90 million in the year 2004-05 and
 Rs. 1044.84 million in the year 2005-06. The petition filed by UASL
 Operator before Hon''ble High Court, Delhi is dismissed as withdrawn
 with a liberty to the UASL operator to take steps in accordance with
 the Law. The matter is presently pending with the Hon''ble Court/TDSAT
 
 11.  The company had subscribed to 8.75% Cumulative Preference Shares
 of M/s. ITI Limited, amounting to Rs.1000 Million during the year
 2001-02. As per the terms of allotment, the above Preference Shares
 were proposed to be redeemed in 5 equal installments.  Accordingly,
 five installments amounting to Rs.200 Million each, aggregating to
 Rs.1000 Million have become redeemable, which have not been redeemed by
 ITI Limited. As per letter No.U-59011 -10/2002-FAC dated 31.07.2009
 issued by DOT, the repayment schedule of the above cumulative
 Preference Shares was deferred to 2012-13 onwards in five equal
 instalments/Moreover, no dividend income has been booked in the
 accounts for the same, as ITI Limited has not declared any dividend.
 
 12.  In respept of Mumbai Unit, the bank reconciliation statements as
 at 31st March, 2011 include unmatched/ unlinked credits/ debits given
 by the banks in the Mumbai Unit''s bank accounts amounting to Rs.78.03
 million (Rs.56.09 million) and Rs. 71.36 million (Rs.69.16 million)
 respectively, which could not be properly accounted for in the absence
 of adequate particulars.  *
 
 13.  In respect of Mumbai MS Unit, sundry debtors as per billing system
 is Rs.681.73 million (excluding service tax) (Rs 697.78 million).
 Sundry Debtors as per WFMS is Rs.753.~55 million (excluding service
 tax) ( Rs.715.47 million). Difference is frozen to Rs 71.82 million (Rs
 17.70 million). Out of total sundry debtors of Rs.753.55 million (Rs
 715.47 million), an amount of Rs.81.09 million (Rs 84.17 million) is
 secured against the deposit available as *on 31.03.2011.
 
 14.  a) Deposits from applicants and subscribers as on 31st March 1986
 were Rs. 1503.59 Million as intimated provisionally by DOT.
 Corresponding assets showr\ under claims recoverable are being reduced
 by the amount of recovery of rebate on rental and by the amount of
 recovery of application deposit for which connections have been
 released to subscribers with effect from 1.4.1986. Balance still
 recoverable from DOT on this account is Rs. 558.45 Million.
 
 b) The balance in the Subscribers'' Deposit Accounts of Rs. 7206.33
 Million (Rs. 7386.71 Million) and Interest Accrued and Due thereon of
 Rs.22.25 Million (Rs. 25.51 Million) is subject to reconciliation with
 the relevant subsidiary records.
 
 c) The aggregate balance of sundry debtors as per the subsidiary
 records is short by Rs.17.69million (Rs.57.55 million) as compared to
 the balance in general ledger and under reconciliation. The resultant
 impact of the above on the account is not ascertainable.
 
 d) In circuits provision of Debtors has been made on the basis of
 financial books which includes provision of spill over Debtors of Rs.
 133.74 million including of earlier year of Rs.90.08 million.
 
 15.  a) Amount recoverable on current account from DOT is Rs.33207.87
 Million (Rs. 32330.54 Million) and amount payable is Rs.528.11 Million
 (Rs.112265.01 Million). The net recoverable of Rs.32679.76 Million
 (Rs.(-) 79934.47 Million) is subject to reconciliation and
 confirmation.
 
 b) The amount recoverablelrom BSNL is Rs.24365.92 Million (Rs.20318.25
 Million) and amount payable is Rs. 12062.01 Million (Rs.4517.21
 Million). The Net recoverable of Rs,12303.91 Million (Rs.15801.04
 Million) is subject to reconciliation and confirmation.
 
 16.  Certain claims of BSNL on account of Signaling charges Rs.219.30
 million, Transit tariff Rs.251.90 million, MP Billing Rs.60.10 million,
 Service Connections Rs.401.48 million, IUC Rs.101,40 million and IUC
 from Gujrat Circle Rs.11.14 million are being reviewed.  Pending
 settlement of similar other claims from BSNL, no provision is
 considered necessary.
 
 17. a) License Fees is calculated on the AGR accounted for on accrual
 basis in respect of both revenue and revenue sharing with other
 operators. Pending judgment from Supreme Court on appeal by DOT against
 TDSAT judgment, the claim of refund of License Fees on other income is
 not accounted for and shall be made in the year of supreme court
 judgment.
 
 b) Liquidated damages recovered from M/s ITI Limited and convergent
 billing cases are accounted for in other income as per terms of
 agreement.
 
 c) (i) In respect of Delhi Unit there is a difference of Rs.62.88
 million in the cenvat credit receivable in books as compared to
 statutory balance for want of necessary detail from certain areas. The
 impact, if any, on the loss for the year cannot be ascertained at this
 stage.
 
 (ii) S. Tax on Income/expenditure in respect,of transaction with BSNL
 has been accounted on accrual basis in financial books without
 corresponding entries in the cenvat records which are being done on
 actual settlement.
 
 18 a) Out of total provision of Gratuity of Rs. 12107.42 Million up to
 31.3.2011 (Rs. 10444.63 Million), an amount of Rs. 1943.73 Million and
 Rs. 665.40 Million is recoverable from DOT, in respect of Group C & D
 and Group B employees respectively, for the period prior to their
 absorption. As on 31.03.2011 Rs.8578.84 Million is available with the
 Gratuity Trust.
 
 b) The total provision of Leave Encashment is Rs. 6943.12 Million up to
 31.3.2011 (Rs.  5573.00 Million). Out of this, an amount of Rs. 433.74
 Million and Rs. 653.68 Million is recoverable, from DOT in respect of
 Group B and Group C & D employees respectively for the period prior to
 their absorption in MTNL.
 
 c) An amount of Rs. 12780.66 Million (Rs. 11793.88 Million) towards GPF
 contribution is recoverable from DOT as on 31.3.2011. The amount
 pertains to Group C& D and Group B employees absorbed in MTNL w.e.f.
 01.11.98 and 01.10.2000, respectively.
 
 d) The total provision of Pension is Rs. 66560.93 Million (Rs. 56972.43
 Million) upto 31.3.2011. Out of this an amount of Rs. 7546.2 Million
 and Rs. 2201.02 Million is recoverable from DOT in respect of Group C&D
 and Group B employees for the period prior to their absorption.
 
 e) The DOT has given commitment vide GOI Ministry of Communication & IT
 Deptt. Of Telecom vide letter No. 40-29/2002-Pen(T) dated 29th August,
 2002 that it has been agreed in principal that the payment of
 pensionary benefits including the family pension to the government
 employees absorbed in MTNL and who have opted for government scheme of
 pension shall be paid by the government. The exact modalities in this
 regard are being worked out by Deptt. Of Pension and Pensioners
 welfare. Pending decisions on the modalities of liabilities payable to
 DOT towards pension contribution on MTNL, so as to have a prudent
 method, on conservative basis, MTNL has adopted the method of valuation
 as per AS-15 (Revised) through actuarial valuation for defined benefit
 plan of Central Govt. Pension Scheme and the provision is kept
 separately in the books under schedule ''M'' as a basis of payment at any
 time to DOT on final decision of the issue. The above liability is
 subject to modalities to be finalized by DOT and may go
 upward/downward.The necessary adjustments will be made in the books on
 finalization.
 
 19.  The diminutions in value of investments in Subsidiaries & Joint
 Ventures are considered as temporary hence no provision is made.
 
 20.  The amount of receivables and payables (including NLD / ILD
 Roaming operators) is subject to confirmation and reconciliation.
 Pending such confirmation/ reconciliation, the impact on the account is
 not ascertainable at this stage.
 
 21.  In respect of Delhi Unit, Certain claims in respect of
 damaged/lost fixed assets and inventory has been lodged with Insurance
 Companies and accordingly gross block, accumulated depreciation and
 value of inventory have been withdrawn in the respective years pending
 settlement of the claim. The claims are still pending with insurance
 company.  The final adjustment in respect of difference between amount
 claimed and assets withdrawn will be made in the year of settlement of
 claim.
 
 22.  In both units, Delhi Unit & Mumbai Unit, CDMA exchanges of 100K &
 50K have been decommissioned during financial year 2008-09 by the
 management and necessary provision has been made for Rs. 1210.28
 millions as loss of assets in accordance with accounting policy. The
 liability on this project amounting to Rs.925.98 millions (includes
 13973820 US dollars) lying in the books for more than three years and
 not paid to vendor due to issue arising out of contract agreement, is
 not written back in view offending arbitration case filed by vendor.
 
 23.  There is no agreement between the Company and DOT for interest
 recoverable/Payable on current account. Accordingly, no provision has
 been made for interest payable/receivable on balances during the year
 except charging of interest on GPF claims receivable from DOT.
 
 24.  Vacant Land is valued at original value for the purpose of wealth
 tax provisions.
 
 25.  In case of Delhi Unit a sum of Rs.131.25 millions accounted for as
 income in financial year 2007-08 being ADCC recoverable from Project
 Development Company (PDC) towards development of Core knowledge park at
 Noida is still to be recovered and interest there on for the current
 period is not accounted for as the issue of funding of the project by
 MTNL is raised by the PDC and pending decision by corporate management
 and also as there is no explicit agreement for interest, no provision
 as such is made.
 
 26.  In respect of MTNL Delhi unit an amount of Rs.2850.00 million is
 accounted for by MTNL towards wet lease for infrastructure and other
 services provided by MTNL in respect of Commonwealth Games during the
 year out of which Rs.2420.00 million has been received during the year
 and Rs.430.00 million is subject to final settlement. Additional claim
 of Rs.410 million towards additional work executed, is not accounted
 for pending acceptance and final settlement.
 
 27.  (a) In respect of Mobile Services Delhi, A sum of Rs. 258.94
 Million (Previous year Rs.  243.55 Million) payable to TCL for JLD
 charges for the period Oct-09 to March-10 has not been paid due to
 heavy spurt in ILD traffic towards M/S TCL. On technical analysis it
 was found that these calls were made to some dubious-and tiny
 destination. These destinations do not confirm to national numbering
 plan of the respective countries and are not approved destinations as
 per approved interconnect agreement. Further these calls have not got
 physically terminated to the destinations. The observations were shared
 with M/S TCL. M/S TCL has also been advised that the balance which
 relates to fraudulent calls is not payable and accordingly no provision
 has been made in the books of accounts. However the units have shown
 the above as contingent liability.  The matter has been handed over to
 committee for investigation.
 
 (b) A CBI inquiry is under way at Mumbai Mobile Unit for excess payment
 of franchise commission due to misinterpretation of circular regarding
 commission payment. The impact thereof is not ascertainable at this
 stage as the inquiry is still continuing.
 
 28.  In respect of accounting for billing of subscribers for Mobile
 services and collection made thereon, the GSM Mumbai unit has
 implemented computerized billing system and the financial entries for
 booking of income and debtors accounting have been incorporated in the
 books of accounts based on the output generated through computer
 system.
 
 29.  There is no reported Micro, Small and Medium enterprise as defined
 in the Micro.Small and Medium enterprise development Act, 2006, to whom
 the company owes dues. No interesthasbeen paid during the year on
 account of delayed payments as required under the MSMED Act, 2006.
 
 30.  Additional information required under Paragraphs 3(x)(a) and 4D(c)
 of Part II of Schedule VI to the Companies Act* 1956 is not
 ascertainable, since (i) consumption of stores is included under the
 normal heads of Capital Expenditure and/or Repairs & Maintenance, and
 (ii) the issue of imported and indigenous items are not separately
 priced/ identified.
 
 V.  Gratuity is payable to the employees on death or resignation or on
 retirement at the attainment of superannuation age. To provide for
 these eventualities we have use Mortality: 1994-96 LIC Ultimate table
 for mortality in service and LIC (1996-98) table for mortality in
 retirement.
 
 VI.  Mortality in service is assumed on the basis of LIC (1994-96).
 Ultimate and mortality in retirement is based on LIC(1996-98) table.
 
 31.  During the year, the Company has made an Insurance Policy for
 medical benefits in respect of its retired employees. The Insurance
 Policy is fully funded by the Company.  This is in compliance with
 AS-15 (Revised).
 
 32.  Related Parties Disclosure under AS-18
 
 a) List of Related Parties and Relationships
 
 Party Relation
 
 Department of Telecommunications Holding 56.25% shares of the Company
 
 Millennium Telecom Limited Wholly owned Subsidiary
 
 Mahanagar Telecom Mauritius Ltd.  Wholly owned Subsidiary -
 
 United Telecom Limited Joint Venture
 
 MTNL STPI IT Services Ltd.  Joint Venture
 
 b) Key Management Personnel
 
 Mr. Kuldip Singh Director (Tech.) & CMD
 
 Mrs. Anita Soni Director (Finance)
 
 Mr. S.P. Pachauri Director (HR)
 
 Mr. A K Pathak Executive Director (Technical), CO
 
 Mr. Manjit Singh Executive Director, Delhi
 
 Mr. J Gopal (Part of the year) Executive Director, Mumbai
 
 Mr. Peeyush Aggarwal (Part of the year) Executive Director, Mumbai
 
 Mr. A K Bhargava (Part of the year) Executive Director, WS
 
 33.  Consolidated Financial Statements - AS - 21 & AS - 27
 
 The financial statements of Millennium Telecom Limited & Mahanagar
 Telephone Mauritius Limited (wholly owned subsidiaries of the Company)
 and United Telecom Limited & MTNL STPI IT Service Limited (Joint
 Ventures) have been consolidated in accordance with the Accounting
 Standard - 21 and Accounting Standard - 27, respectively.
 
 34. During the year no provision has been made for any loss on account
 of impairment of assets under Accounting Standard 28 as there is no
 indication of any impairment of assets of the Company.
 
 35.  Previous year figures have been regrouped / recast to confirm to
 current year''s presentation. Amounts in brackets represent the previous
 year''s figures.
 
 36.  Schedules A to T form an integral part of the Balance Sheet
 and the Profit and Loss Account.