1. Contingent Liabilities
a) Estimated amount of contracts remaining to be executed and not
provided for: Rs Nil (Previous Year - Nil).
b) On account of delayed / non-compliance of various fiscal statues -
c) Claims against the company not acknowledged as debts: Nil. (Previous
year Rs. Nil).
2 (i) The Company is facing labour unrest w.e.f 02-04-2008, reference
to notice dated 02-04-2008 issued by Mangement in this regard.
(ii) Wages provision has been made, as informed by the Management, since
the Mangement is in the process of negotiating and settlement of wages
with the labours. Due to non-availability in respect of statutory
records and other records like PF, ESI, etc., the amount
due/penalty/intrest etc., could not be ascertained.
(iii) Reduction of Share Capital and Securities Premium Account: The
Company''s paid up share capital is reduced from Rs 19,22,82,380 divided
into 1,92,28,238 equity shares of Rs 10/- each to Rs. 14,93,90,380
divided into 1,49,39,038 equity shares of Rs 10/- each.
An amount of Rs. 17,52,09,000 lying credit in the share premium account
has been reduced as per the special resolution passed at the AGM of the
company on 17-08-2007 and also as per the approval accorded by the
Hon''ble High Court, Madras, vide its order dated 04-08-2008.
Further, certification of Registration of Order of the Hon''ble High
Court, Madras confirming the , reduction of share capital and share
premium account issued by ROC, Tamilnadu, Coimbatore on 09-09-2008.
Pursuant to the Order of the High Court and the Scheme of Reduction of
Share Capital as approved by the members of this Company at its 14th
Annual General Meeting held on 17-08-2007, the accumulated losses of
the company as at 01-04-2007 (B/F) are ordered to be set off as
Accumulated losses to be set off ............. Rs 21,81,01,000
Against Share Premium A/c ............. Rs 17,52,09,000
Against Paid up Share Capital A/c ............. Rs 4,28,92,000
Further, as approved by the High Court of Madras, that the words And
Reduced pursuant to the reduction has been dispensed with.
Further, the procedure regarding reduction (ie., making necessary
endorsements on the share certificates etc.,) of paid-up share capital
has to be complied with. However, based on the court order and fling of
ROC., the share Capital and share premium account have been reducted
and given effect in the balance sheet.
3. The Balances appearing under loans and advances, sundry debtors,
sundry creditors other current liabilities and Deposits and
inter-company balances are subject to confirmations and reconciliations
with consequent adjustments if any; the impact thereof of reduction /
increase in the assets / liabilites consequent to the completion of
reconciliation by the management.
4. In the opinion of the Management, the Current assets and loans and
advances are approximately of the value as stated, if realised in the
ordinary course of business and adequate provisions for all known
liabilities have been made in the accounts except otherwise stated
elsewhere in other notes.
5. The company has not made any provision in the books towards the
liability for the gratuity and retirement benefits to the employees
thugh prescribed in accounting standard 15 issued by the Institute of
Chartered Accountants of India, as a consequence of which the loss for
the year and the corresponding liability has been understated Amount
6. Delay/Non-Remittance of Provident Fund and Employees State
Insurance Corporation:- The company has filed a suit in the Court for
the adjustment of excess Provident Fund paid in earlier years in group
companies towards dues for the subsequent years of the company. The
Company has got a favorable order for adjustment of group Companies
excess payments towards the dues. -
7. a). Financial year: 12 months from 1st Oct 2010 to 30th Sep 2011.
b) Previous year figures have been re-grouped / re-arranged wherever
8. The liability to Small Scale Industries for supplies & services as
on 30-Sep-11 is ''NIL'' on the basis of the information available with
9. Deferred tax asset as on 30-Sep-11, has not been recognized since
there is no reasonable certainty of sufficient taxable income being
available against which such deferred tax asset can be realised.
10. As per the Management representation, there is no impairment of
fixed assests during the period.
11. Segment Reporting:
The Operations of the Company are in essence concentrated in a
particular geographical area and in a particular product / service only
hence Segment reporting as prescribed by the Accounting Standard 17 on
Segmental Reporting by The Institute of Chartered Accountants of India
is not applicable.