1. Contingent liabilities not provided for
a. In respect of Counter Guarantees issued to Bank of Baroda against
various guarantees given by the bank which are secured equitable
mortgage of the Fixed Assets of the Company is Rs. 114.71 Lacs. (P.Y.
Rs. 159.06 Lacs).
b. In respect of Guarantee invoked by Customers Rs. Nil (P.Y. Rs.
2. As per the practice consistently followed, Excise duty payable on
finished goods held in the factory is neither included in expenditure
nor valued in such stocks, but is accounted for on clearance of goods
from factory. This accounting treatment has no impact on profit. The
amount of Excise duty payable on finished goods not cleared from
factory as on 31st March, 2000 is estimated at Rs. 2.09 lacs (Previous
Year Rs. 1.62 lacs).
3. Security Deposits (see Schedule 9) includes Rs. 45.00 Lacs (Previous
year Rs. 45 lacs) paid to the Managing Directors, severally and jointly
with other persons is in respect of Licence Premises.
4. In the opinion of the Board of Directors unless otherwise stated in
Balance Sheet and the Schedules attached thereto, the current assets,
loans and advances as stated in the Balance Sheet are approximately of
the value realisable in the ordinary course of business.
5. Balances of Sundry Debtors, Creditors, Loans, Advances, Deposits and
certain Bank Balances are subject to confirmation and reconciliation.
6. In view of judgement of Income-Tax Appellate Tribunal Bombay Bench
and the opinion obtained, the Company has capitalised lease rent for
Plant & Machinery accrued upto the period Rs. 1,215.40 lacs (Previous
Year Rs. 1,065.14 lacs) and has claimed the depreciation of Rs. 54.34
lacs (Previous Year Rs. 44.41 lacs) on such capitalisation. The
accounting treatment followed is not as per guidelines given by the
Institute of Chartered Accountants of India and normally accepted
fprinciples of accounting.