1. As the Companys business activity falls within a single segment
viz. PET FILM, the disclosure requirements of Accounting Standard-17,
Segment Reporting, issued by the Institute of Chartered Accountants
of India, are not applicable.
2. The implementation of the Companys captive Polyester Chips
manufacturing plant at Jhagadia Industrial Estate, Bharuch, Gujarat
continues to be deferred for nearly fifteen years for want of required
resources and other economic considerations. Due to the inordinate
delay in completing and commissioning of the project, a difference has
arisen between the amount already spent on the Polyester Chips project
and the estimated realisable value of the same amounting to
approximately Rs. 3130 lacs, resulting in a loss to the Company. As per
the requirement of Para 4.4 of Accounting Standard-4, the estimate in
regard to the contingent loss has to be provided for in the judgement
and perception of the management of the Company. Given that no
provision is made for such contingent loss in the Profit and Loss
Account for the year ended 31st March, 2010, the losses have been
understated to the extent of Rs. 3130 lacs.
3. Balances of Debtors, Creditors, Deposits and Loans and Advances are
subject to confirmation.
4. (a) Sundry Debtors includes an amount of Rs. 350.53 lacs (Previous
Year Rs. NIL) considered doubtful of recovery. No provision has been
made in the books of accounts as the management is making efforts to
recover the same.
(b) Advances recoverable in cash or in kind includes an amount of Rs.
383.55 lacs (Previous Year Rs. 112.32 lacs) considered doubtful of
recovery. Against this, no provision has been made in the books of
accounts since the Company is still pursuing the recovery of this
(c) Provision has not been made for diminution in the value of the
Companys Investment aggregating to Rs. 18.92 lacs in Equity Shares of
Synthetics and Chemicals Limited. A final view with respect to
providing for total diminution in the value of this Investment will be
taken in due course.
5. Duty credits receivable under the Duty Entitlement Pass Book Scheme
of the Government have been accounted for on accrual basis, amounting
to Rs. 45.35 lacs (Previous Year Rs. 29.13 lacs) and included under
6. The Company did not owe any sum of money exceeding Rs. 1.00 lac
for more than thirty days as at 31st March, 2010 due to a creditor
registered as a Small Scale Industrial Undertaking.
7. Extraordinary/Prior Period Items comprise of:
(i) Time-barred Sundry Creditor Balances written back Rs. NIL (Previous
Year Rs. 0.38 lac)
(i) Prior Period Expenses Rs. 0.81 lac (Previous Year Rs. NIL)
8. In the opinion of the Board, all Current Assets and Loans and
Advances have a value on realization, in the ordinary course of
business, at least equal to the amount at which they are stated, except
as stated in Note No. B.8 on the Accounts.
9. As a matter of prudence, Deferred Tax Assets have not been
considered in terms of Para-17 of Accounting Standard-22 relating to
Accounting for Taxes on Income.
10. Previous years figures have been rearranged/regrouped wherever