1) The Institute of Chartered Accountants of India has revised AS-2:
Valuation of inventories and made it mandatory for the financial year
1999-2000 and onwards. Pursuant to the above, the company has reviewed
its policy on valuation of inventories and valued stocks of
rawmaterial, work-in-process and consumables at cost or net realisable
value as against cost, hither to adopted. The change has resulted in
reduction in value of closing inventory by Rs. 1,36,964/- and increase
in loss for the year by similar amount.
2) The company has made a claim of Rs. 281.25 lacs on Alfa-Laval (i)
Ltd, the Main plant and equipment supplier for breach of various terms
& conditions for supply, erection and commissioning of the plant. The
said supplier has also made a counter claim of Rs. 78 lacs against the
company. Award has been given by the Arbitrators for an amount of Rs.
10.00 lacs against Company's claim of Rs. 281.25 lacs. The Company has
not accepted the said award & has filed a civil suit for grant of
3) The Company is eligible for a subsidy on pollution control equipment
and co-generation of power. The same will be accounted as and when
4) Previous year's figures have been regrouped/recasted wherever deemed
necessary to conform with current year's classification.
5) Figures have been rounded off to nearest rupee.
6) Estimated value of contracts remaining to be executed on capital
account and not provided for Rs. 6.55 lacs (Previous year Rs. 6.55
7) Contingent liabilities not provided for :
(A) In respect of disputed income tax demand for
Block assessment period 86-87 to 96-97 pending
before the Appellate Tribunal - Rs. 29,43,443
(Previous year Rs. 29,43,443)
(B) Claim against company by Alfa Laval (I) Ltd. - Rs. 15,62,545
(Previous year Rs. 15,62,545)
8) Unsecured loans form Directors and their relatives include Rs.
12,96,200/- (Previous Year - Nil) taken form Managing Director of the