Skyline Millars

1.  Termination of Term Sheet with Urban Kshetra Infrastructure Pvt.
 Ltd. (UKIPL):
 
 The Company had signed a Term Sheet with Urban Kshetra Infrastructure
 Private Ltd (a wholly owned subsidiary of Urban Infrastructure Venture
 Capital Fund) proposing to jointly acquire Transferable Development
 Rights (T.D.R) and develop and construct one building (known as
 Building no 4) having approximate residential saleable area of about
 10,993 Sq mtrs. at our Ghatkopar Project, situated at Kurla-Kirol Road,
 Vidyavihar, Mumbai. Due to overall slow down in the Realty Sector both
 the parties mutually decided to cancel the aforesaid Term Sheet.
 Accordingly, the company has also provided interest of Rs. 92.71 lacs
 payable to UKIPL till 3T1 January, 2009 on the abovementioned Deposit
 of Rs. 6 crores. The Deposit along with net interest (after deducting
 TDS) has been paid to UKIPL on22ndJune,2009.
 
 2.  Estimated amount of Contracts remaining to be executed on Capital
 account and not provided for Rs. 22.14 Crores (previous Year Rs. 6.64
 Crores) for which advance has been Paid Rs.3.40 Crores (Previous year
 Rs.90 Lakhs)
 
 3.  Contingent Liabilities not provided for:
 
 (a) Claims against the company not acknowledged as debts Rs.
 3,14,72,636 (Previous Year Rs. 3,14,72,636).
 
 D.G.B.R.        Rs.  2,68,79,162
 
 AVN Tubes Ltd.  Rs.  11,80,000
 
 Other Customers Rs.  19,13,474
 
 Employees       Rs.  15,00,000
 
 (b) Bank Guarantees Outstanding letter of Credit Rs. 25,82,787
 (Previous Year Rs. 3,87,100)
 
 4.  (a)Sales Tax Assessments of Mumbai Division are completed upto the
 year 2002-03 and of
 
 Karamsad (Gujarat) Division upto year 2005-06. The Company does not
 expect any liability for the pending assessments.  (b)lncome Tax
 Assessments are completed upto the Assessment year 2006-07 in terms of
 order issued under section 143 (3) of the Income Tax Act, 1961.  The
 company does not expect any liability for the pending assessments.
 
 5.  In terms of the Development Agreement dated 31.12.2003 and
 Supplementry Agreements dated 30.01.2004 and dated 01.03.2004 entered
 into with Skyline Residency Pvt. Ltd.  For development of the Companys
 land at Kurla-Kirol Road, Ghatkopar (W), admeasuring 35,577.89 Sq.
 Mtrs, the Company was entitled to upfront consideration of Rs. 1,440
 Lacs and 74,446 Sq. ft. saleable area.
 
 6.  a) Administrative and General Expenses includes a sum of Rs.
 2,18,879/-(previous year Rs. 2,19,230/-
 
 paid to Auditors being Rs. 1,12,360/- (previous year Rs. 1,12,360/-) as
 Audit Fees, Rs. 39,326/ (Previous year Rs. 39,326/-) for Tax Audit, Rs.
 39,399/-(previous year Rs. 11,236/-)for certification & other work and
 Rs. 27,794/-(Previous year Rs. 56,308/-) paid for other services.  b)
 Legal & professional charges includes Rs.50,000/- paid to firm in which
 Auditor is proprietor.
 
 7.  Company has filed a suit on Nesco Ltd. (Formerly known as New
 Standard Engineering Co. Ltd) for the recovery of its Security Deposit
 of Rs. 15,00,000/-along with interest.
 
 8.  (a) Sundry Creditors include Rs.1,21,088/- (Previous year Rs.
 1,21,088/-) due to Small Scale
 
 Industrial Undertakings. The Parties to whom the amount due and
 outstanding for more than
 
 30 days are given below:
 
 Sr. 
 No.  Vendor Name
 
 1    RubyForgings
 
 2    Bombay Machine Tools
   
 3    Shah Udyog
 
 (b) No provision has been made in the Accounts for interest, if any
 payable to small Scale Industrial undertakings on overdue sums as the
 amount is not determinable.
 
 9. Deposit of Rs.160 lacs, shown in Schedule 6 in previous year as
 Security Deposit as per the Memorandum of Understanding signed with
 M/s. GMM Pfaudler Limited on 28th November, 1988 has been repaid by the
 Company and the aforesaid Memorandum of Understanding stands cancelled.
 Agreements with M/s. GMM Pfaudler Limited for use of licenced premises
 of Karamsad Shed No. I and II together with certain assets still
 continues.
 
 10. Deferred Tax:
 
 In view of the uncertainty as regards sufficient future taxable income
 against which deferred tax assets can be released, deferred tax assets
 are not recognised to the extent of operating losses.
 
 11. RELATED PARTY DISCLOSURES
 
 Associates Parties with whom transactions have been taken place during
 the year
 
 A) GMM Pfaudler Limited
 
 B) Pedershaab Millars India Private Limited
 
 C) Elecon EngineeringCompany Limited
 
 D) Class Lined Equipment Company Limited
 
 E) Skyline Residency Private Limited
 
 Key Management Personnel
 
 Mr. AshokJ. Patel - Non Executive Director
 
 Mr. TarakA. Patel - Non Executive Director
 
 Mr. Jaysinh A. Dave - Non Executive Director
 
 Mr. Jitendra M. Tater - Non Executive Director
 
 Mr. Jatin V. Daisaria - Non Executive Director
 
 12 Previous years figures have been rearranged and regrouped wherever
 necessary to correspond with the figures of the current year.