1 Contingent liabilities are not provided for in respect of:- Rs. 1.76
Crores demand from Sales Tax department, pending in M.P. High Court
2. As manufacturing activities remained suspended since July 2003 the
company has not provided for depreciation on its Fixed Assets.
3. Certain adjustment in respect of old debit and credit balance have
been made during the year which are subject to confirmation and no
provision has been made against sundry debtors outstanding for more
then six months.
4. After issuing notice under the secutrisation Act, Allahabad Bank
has filed a case in Debt Recovery Tribunal Jabalpur for the recovery
of its dues Rs. 88 Lac and Interest there on against the company. The
company has filed its objections and has stated that the amount
computed by the bank is not a liability on the company
5. Inter corporate deposit given amounting of Rs. 15 Lacs and interest
provided thereon up to 31.3.2002 is Rs. 12.60Lacs is doubtful of
recovery. No provision has been made against the same.
6. The company has not availed any supplies from SSI undertakings
during the year
7. Security Created for obtaining loans for Working Capital Loan of
Rs. 126 Lacs from Allahabad Bank, Indore: First Charge on Raw Material,
Finished Products, Stores & Spears and Book Debts and second charge on
entire plant & machinery, Land., Buildings present and Future of the
companies factory located at Village Kundla.
8. Income tax assessment from FY 2004-05 is pending for Assessment. In
view of the carried forward losses no provision for income Tax has been
made during the year.
9. Sales Tax assessment is completed up to accounting year 2007-08.
10. Sundry Creditors, Inventories, Sundry Debtors, Loans and Advances,
Bank balances & other Debit & credit Balance are subject to
conformation and reconciliation.
11. In the opinion of Board the value on realisation of loans, advances
and other current assets in the ordinary course of the business will
not be less then the amount at which they are stated in the Balance
Sheet. Therefore no provision has been made for the same.
12- Related party disclosure:
Related party and there relationship Key Management Personnel: Shri
Khimjibhai Patadia, MD Pending before consumer forum Relatives of key
management personal and their enterprises in which key management
personnel are interested ; None
Note; Related party relationship is as identified by the company and
relied upon by the auditors
13. Deferred Tax: Deferred Tax assets mainly represent past losses,
unabsorbed depreciation has no prudence, not being recognized due to
uncertainty of future profits in terms of accounting standard 22(AS-22)
for taxes on income, issued by ICAI, in view of available deferred tax,
management dose not consider it appropriate to provide for deferred tax
liability in terms of Accounting standard as this liability is not
accepted to materialized in the foreseeable future.
14. Previous years figures have been re-arrange / re-grouped wherever
15. Figures have been rounded off to the nearest Rupee.