AS AT 30TH AS AT 30TH
JUNE, 2009 JUNE, 2008
1.Contingent Liabilities not provided for:
a Disputed Demand for tax (excluding interest thereon) not provided for
- Sales Tax 1,34,29,471 1,34,29,471
b. Claims against the Company not
acknowledged as debts 4,34,818 4,34,818
2. The advance received in earlier periods against subscription of
shares amounting to Rs.20,05,12,650/- (Previous year Rs.
20,05,12,650/-) represents the contribution received by the Company
from the Promoters and their Associates in terms of the conditions as
laid down by the financial institutions towards the outlay of funds for
the expansion project and would be adjusted against the proposed rights
issue of the entitlements of the promoters.
3. In the opinion of the Company, the value of loans and advances on
realisation in the ordinary course of business, shall be atleast equal
to the amount at which they are stated. This being a technical &
Management aspect, the Auditors have relied on their representation.
4. The Company was exporting the finished goods to various parties on
regular basis upto 1995-96. Due to closure of plant w.e.f. October,
1996 the Company could not export thereafter. In view of this the
Debtors did not remit the balance outstanding amount aggregating to Rs.
7,94,07,453/-. The Company has been pursuing the matter to recover the
outstandings but inspite of best efforts, could not recover the balance
amount. Action for seeking approval for writing off the amount from the
competent authority is being initiated. In the meantime the Company had
made a provision for doubtful debts in earlier years.
5. There is no unpaid amount payable to Micro, Small & Medium
Enterprises as at 30th June, 2009. This information is required to be
disclosed under the Micro, Small & Medium Enterprises Development Act,
6. Balance with parties in respect of debtors, creditors and advances
and some banks etc.are subject to confirmations and due adjustments if
any, shall be made on receipt and reconciliations thereof.
7. Figures have been rounded off to the nearest rupee.
8. There was no production or sales during the period under review.
9. As reported earlier in years, the Financial Institutions led by
IDBI had taken over the possession of all the movable & immovable
assets of the Company on 19/12/2005, as per provisions of the
Securitisation & Reconstruction of Financial Assets and Enforcement of
Secutiry Interest act, 2002 (SARFAESI). Subsequently, BIFR on the
statement of IDBI confirming the action under SARFAESI, has vide its
order dated 18-06-2007 declared that the reference to BIFR stands
abated in terms of the third proviso to Section 15(1) of SICA.
In view of discontinuation of operations and possession of all the
Assets of the Company having been taken over by the Secured Lenders,
the accounts have been prepared on the basis that the Company is not a
10. Previous period figures have been regrouped or rearranged where