1. Due to the absence of manufacturing activity there is no Sales
during the period.
2. Their is disputed Liabilities towards Income Tax and Sales Tax
amounting to Rs.42,04,009/- and Rs. 5,80,93,966/-respectively,
against which the Company has filled appeal with appropriate authority.
3. The Company is in default to re-payment of NCDs/ZCBs amounting to
Rs. 19,07,973/- and the interest of Rs. 12,66,433/-thereon.
4. Liabilities in respect of various court cases pending against the
company is unconfirmed/unsettled and unascertainable. Hence, no
provision has been considered necessary. However, the accounts have
been prepared on going concern basis and the liability in future, if
any, would be accounted for in the year of demand.
5. Prior period expenses amounting to Rs. 1,27,000/- have been charged
to the profit and loss accounts under the head listing fee, unpaid for
last three years .
6. The company has not accounted for penal interest on delayed/non
payment of secured and unsecured loans from U.P.F.C and Banks which is
uncertainable due to non-availability of statements from the concerned
7. The amount Rs. 7,19,815/- of Advance Income Tax under the head
CURRENT ASSETS, LOANS & ADVANCES has been adjusted with same amount
outstanding in Income Tax payable under the head CURRENT LIABILITIES &
8. Balance of some of the Creditors, Advances and loans are subject
to confirmation and adjustments, if any.
9. Loan from U.P.F.C. amounting to Rs. 60,00,000/- (previous year-
Rs. 60,00,000/-) and interest thereon is secured by Fixed Assets,
Plant and Machinery and personnel guarantee of Directors/Promoters and
corporate guarantee by Paam Pharmaceuticals (Delhi) Ltd. to the extent
of Rs. 150 Lacs. However, short term loan of Rs. 1,45,00,000/-
(previous year- Rs. 1,45,00,000/-) and interest thereon and bank loan
of Rs. 1,97,00,741/- (previous year- Rs. 1,97,00,741/-) and interest
thereon which was secured by hypothecation of raw material, finished
goods, stores and book debts has been treated as unsecured due to
NIL stock in trade and debtors.
10. Since there is no profit for the year, therefore provision of Sec.
349 of Companies Act, 1956 does not apply.
11. In the opinion of the Board of Directors and to the best of their
knowledge and belief the value of realisation of loans, advances and
current assets could be less than the amount at which they are stated
in the balance sheet.
12. Balance of some bank accounts are subject to confirmation and
13. No provision for taxation for the current year has been made due
to the absence of taxable income.
14. Previous year figures have been regrouped/re-arranged/
re-scheduled wherever necessary to make them comparable.
15. In some cases, provision of interest to bank and financial
institution has been made on an estimated rate of interest.
16. The company made a reference to the BIFR under SICA on 15-9-99
which was rejected by the BIFR. Against such order of the BIFR, the
Company made an appeal to the AAIFR and the order of the BIFR
rejecting Companys reference was reversed. The AAIFR has directed the
BIFR to reconsider the reference afresh on merits. During the year two
hearings has been held before the Bench (B.I.F.R) on 2-8-2001 and
19-12-2001. Final order of the Bench Dated: 26th March, 2002, held
that the Company does not qualify to be an Industrial Company with
in the meaning of section 3 (1)(o) read with section 3 (1)(e) & (f) of
the Sick Industrial Companies (Special Provisions) Act ,1985 (SICA).
17. Income Tax Assesment in respect of Assesment year 94-95,95-96,98-99
the demand aggregate Rs. 42.04 Lacs against which a provision of
Rs. 82.24 Lacs, has been made.The amount of excess provision made,
written back to the Profit & Loss Accounts (Other Income).
18. According to the pursuant of Section 211(3A) of the Companies, Act
1956 and Accounting Standards -18 (Releted party disclousures) their
are two releted parties and the required disclosers are as under:-
Name Nature of Transaction
Relations during the year
M/s. Paam Pharmaceuticals Associates Company Rs. 1,16,736/-(Cr.)
M/s. Paam Drugs & Associates Company Nil
M/s. Paam Pharmaceuticals (Delhi) Ltd Rs. 16,87,525/-(Cr.)
M/s. Paam Drugs & Pharmaceuticals Ltd. Rs.1,12,13,124/-(Dr.)
19. According to the notification of Govt. of India, dated 22-5-2002
that, there is non of the parties are SSI undertaking under Sub
heading Current Liabilities & Provisions.