1. CONTINGENT LIABILITY NOT PROVIDED FOR IN RESPECT OF:
As at As at
A. Claims against the Company not acknowledged
as debts. 1570225 1453725
B. Sales Tax Demand 171936 47781
C. Mining Eng. II - 8286611
D. Dead Rent (Royalty) 228194 -
2. Estimated amount of contracts remaining to
be executed on capital account and not provided for - -
3. Payment to Auditors.
As Auditors 15000 15000
Out of Pocket Expenses 5827 9049
4. The company has been accounting liability for royalty In respect or
Finished goods on goods despatched in lumpsum. Hence liability on
account of royalty, if any, for the financial year ended 31/03/2001 and
thereafter would be accounted for after the completion of DMG
5. Any liability on account of Sales Tax, if any, would be accounted
for after the completion of assessment.
6. The depreciation on Fixed Assets Tor the current year has not been
provided in the Financial Statements. However the company has provided
depreciation of Rs. 1,12,778/- for 1999-2000, Rs. 1,12,778/- for
2000-01 and Rs. 1,05,015/- for 2001-02 on the assets sold by the
company during the current year upto the date of transfer of assets.
This is a deviation from Accounting Standard No. 6(AS6). The reason for
non provision is absense of operating profit before charging such
The financial Implication of such deviation Is that the loss for the
year, as disclosed in the Profit & Loss Account is less by the amount
of depreciation of Rs. 15,55,639/- and the value of Fixed Assets in
the Balance Sheet is higher by a like amount.
The aggregate amount of depreciation ought to be provided and is
computed in accordance with Section 205 (2) of the Companies Act. 1956
is Rs. 47,99,722/- being Re.16,88,542/- for 1999-2000, Rs. 16,55,541/-
for 2000-01 and Rs. 15,15,039 Tor 2001-02.
7. The Company accounts for the following items on cash basis:
a) Interest on arrears of allotment and call monies - As and when
b) Gratuity - As and when paid.
8. In the openion of the Management, the Current Assets and Advances
are approximately of the value stated, if realised in the ordinary
course of business unless otherwise stated, the provision for all
liabilities are adequate and not in excess/shortage of the amount
9. Sundry Debtors amount to Rs. 0.26 lac are under litigation (Previous
year Rs. 0.26 lac).
10. Corresponding figure of the previous year have been regrouped to
conform with this years grouping whenever necessary.
11. All the balances of Sundry Debtors, Sundry Creditors for Trade &
Expenses, Advances to/from parties, Loans and Advances are subject to
12. As the Company has no taxable profits relevant to this accounting
year, hence no provision for income tax has been made.
13. None of the employee is getting more remuneration as required by
Section 217 (2A) of the Companies Act, 1956 and the rules made
14. Payments made/credited to various contractors during the year is
not reconciled/correlated with total sales of contractors during the
15. The Company has no proper supportings/evidences of machine hiring
charges credited In the books, In the light of above we are unable to
comment on Income of Machinery Hire Charges.
16. Inter-Parties balances transferred are subject to
17. The Company has not paid/provided interest on unsecured loans
because of insufficiency of profits and the same shall be provided in
the year profits.
18. An Amount of Rs. 30,03,500/- is shown as Advance from parties to
whom no material was supplied during the current year. Further no
confirmed orders or any other supporting available for supply of
material, also no provision for interest is made in the financial year.
19. The small scale undertakings (to the extent such parties have been
identified from available informations) to whom amount outstanding for
more than 30 days, where such dues exceeds Rs. 1,00,000/- are as
As on 31/03/2002 As on 31/03/2001
1. Estern Steel Industries 356963 356963
2. Proneel Technologies Pvt Ltd. 384800 384800
20. The Company has not made any provisions about deferred tax
Liability/Assets as required by AS-22 Issued by the Institute of
Chartered Accountants of India and the same shall be provided in the
next financial year.