1) No Provision for gratuity is considered necessary since none of the
employees have completed the qualifying period of services.
2) Revaluation of Building and Plant & Machinery was carried out by an
approved valuer on dated 31st March, 1994 resulting in an increase in
Gross value of Assets over Original Cost by Rs. 32420518.83 (Building
Rs. 20312015.48 and Plant & Machinery Rs. 12108503.35).
3) The net increase in value of assets resulting from the revaluation
carried out in 31st March, 1994 amounting to Rs. 32420518.83 was
credited to Revaluation Reserve account.
4) Depreciation for the year on the Plant & Machinery & Building
revalued as on 31st March, 1994 has been calculated on their revalued
book value. Depreciation over & above original cost has been charged to
Revaluation Reserve account as per accepted accounting principles.
5) The Company has sent for confirmation of balance in respect of Sundry Debtors, Sundry Creditors, loans &
advances etc., Necessary adjustments if any, will be made on receipts and reconciliation of such Balance
Confirmation. In view of above such balance are stated as per Books of Accounts only.
6) The Outstanding amounts shown under the head secured loans are in
dispute in as much there are wrong debits as also excessive charges of
interest and other items by the lenders.
As abundant precaution provision of interest in respect of loans has
been made though not admitted.