SCHEDULE V Notes on Accounts :
1. Contingent Liabilities not provided for in respect of :
As at 31-03-2002 As at 31-03-2001
a) Bills/Cheques discounted with Banks -- 13,28,284
b) Guarantees issued by Banks 1,30,000 2,30,000
c) Letters of Credit opened &
Outstanding with Bank -- 4,00,00,000
d) Disputed sales tax demands 12,83,843 10,90,818
2. In the opinion of the Board, the approximate value of Current
Assets and Loans & Advances nave on realisation at least equal to the
amounts at which they are stated in the Balance-Sheet
3. Provision for Gratuity liability to employees is made on the basis
of valuation done by Actuary.
4. Materials lying with third parties have been taken at values as
stated in books of accounts and have not been confirmed by parties.
5. Though Accounting Standard (AS) 15 issued by the Institute of
Chartered Accountants of India is mandatory, the Company has not made
provision for leave encashment benefits on retirement of employees as
the quantum of liability is not reasonably ascertainable due to the
availability of leave encashment benefits any time during the service
period and also as accumulation of Leave is restricted to a certain
6. Auditors Remuneration
For the year ended For the year ended
Audit Fees 30,000 30,000
Taxation Matters 5,000 5,000
Tax Audit Fees 15,000 15,000
Service Tax 2,500 2,500
7. Confirmation of certain parties for amounts due to them/amounts
due from them as per accounts of the Company are not received,
necessary adjustments if any will be made when the accounts are
reconciled and settled.
8. Sundry Debtors include Rs. 45,34,472.37 receivable from parties
against whom company has initiated legal cases. As the company is
hopeful of recovering full amount from these debtors it is thought
prudent not to make any provision for doubtful debts towards these
9. As per the practice followed, excise duty payable of Rs. 1,05,914
on finished goods held in the factory is accounted for on clearance of
goods when it is actually payable, it is neither included in the
expenditure nor valued in such stock. This accounting treatment has no
impact on operational results.
10. Interest free Sales Tax Defferment shown under the Loans Funds
being in the nature of quasi-equity is repayable in five equal annual
installments after a period often years from the year of recovery.
11. Provision for Taxation :
a) Current Tax : In view of the losses incurred during the year the
company has no taxable income.
b) Deffered Tax (AS-22) : In view of the carried forward losses the
company has deffered tax assets. However, as matter of prudence the
same has not been recognised in the financial statement since the
management is not certain that sufficient taxable income will be
available in the future against which such deffered tax assets could be
12. No provision for loss as may arise in respect of overdue debtors
and old balances of some advances has been made as the management is
making serious efforts to recover the amount and loss in this respect
is at present indeterminable.
13. Related Parties Disclosure :-
As per accounting Standard-18 issued by the Institute of Chartered
Accountants of India, the Companys related parties and transactions
are disclosed below :
a) Parties where control exists : NIL
b) Other related parties with whom transactions have taken place during
the year :
(i) Joint Venture of the
company : NIL
(ii) Associate : NIL
(iii) Other related Parties : (a) Suman Die Casting Pvt. Ltd., Goa
(b) Mesha Engineering Pvt. Ltd.,
(c) Swastik Metal Corporation
(d) Pomani Investment & Finance Ltd.
(e) Ashok Industries
(iv) Key Management Personnel : (a) Shri Shantilal R. Jain
(b) Shri Prithviraj R. Pomani
(c) Shri Ashok B. Bafana
(d) Shri Pandurang N. Sahane
(c) Transactions with Related Parties :
Rs. In Lakhs
(i) Purchases of Goods & services
Other Related Parties 42,18,128
(ii) Sales of Goods & services
Other Related Parties 66,31,341
(iii) Purchases of Fixed Assets
Other Related Parties --
(iv) Sale of Fixed Assets
Other Related Parties 14,560
(v) Net Loan & advance Given (Recovered)
Other Related Parties --
(vi) Other Expenses --
Other Related Parties 14,14,879
(vii) Other Income
Other Related Parties 6,60,931
(viii) Remuneration to directors 9,00,000
Entities where control exists - Receivables --
Associates - Receivables --
- Payables --
Other Related Parties - Receivables 26,15,873
- Payables 11,24,242
a) Licensed Capacity not applicable
b) Installed Capacity shown above are as certified by management.
c) Figures of actual production shown above do not include goods on job
work for which materials were supplied by customer.
d) Figures of actual production shown above do not include goods
manufacutred at vendors.
14. The Compay could not appoint a Company Secretary as required under
section 383(A) the of Companies Act, 1956, despite best efforts made in
15. Figures has been rounded off to nearest rupee.
16. Previous years figures have been regouped wherever necessar to
make them comparable with current year figures.
17. In absence of the relevant information from the suppliers, the
company had not determined the amounts payable to small scale
industrial undertaking separately.