1 Contingent Liabilities not provided for liability if any, in respect
 of various cess, taxes and statutory dues including liability on
 account of delay in payments to Government, Semi-Government and
 suppliers.
 
 2.  Attention is invited to Note No. 2 forming part of the notes
 annexed to the accounts for the year ended March 31, 2011, an
 un-provided liability of Rs 6450 Lacs and accured interest thereon, if
 any, is not acknowledged by the Company and hence, it is not provided
 in the books of account.
 
 3.  The Company does not remain a going concern since the secured
 lenders have sold all the fixed assets mortgaged to them and there is
 no definite source of income. However, the accounts have been prepared
 in the best possible manner on the basis of available information.
 
 4.  Attention is invited to Note No. 8 forming part of the notes
 annexed to the accounts for the year ended March 31, 2001. The said
 note referred to the adjustments made in the accounts for that year, as
 a result of which an amount of Rs 2463 Lacs then due to Global Trust
 Bank Limited (GTBL) and now merged and known as Oriental Bank of
 Commerce (OBC), (hereinafter referred to as the said bank) in
 respect of unsecured debentures and the amount of Rs 2463 Lacs due by
 Sashak Nobel Metals Limited (SNML) were transferred to Killick
 Financial Services Limited (KFSL).
 
 The said note also specifically stated that the said transfers were
 made in pursuance of Memorandum of Understanding entered into between
 the Company, the said bank and KFSL and the other Memorandum of
 Understanding between the Company, KFSL and SNM. The said MOUs have not
 been revoked so far.
 
 Further, in month of June 2001, Global Trust Bank Ltd. has credited
 Company''s account by Rs 565 Lacs . In terms of the said MOUs KFSL had
 agreed to allow the aforesaid amount due by Snowcem India Limited to
 the said bank to be adjusted against the security deposit of Rs 7400
 Lacs agreed to be paid by the bank to KFSL in consideration of the
 latter company agreeing to execute sub-lease of the land in favour of
 the bank. We are informed by the KFSL that they have filed a suit
 against the bank for specific performance and damages
 
 The said bank has called upon the Company to pay to it the aforesaid
 amount of Rs 2425 Lacs after adjusting a credit of Rs 565 Lacs towards
 the amount received by them for which the bank provided no details to
 the company. The said bank has also initiated proceedings against the
 Company in Debt Recovery Tribunal. The Company is contesting the
 proceedings and has been legally advised not to make any changes in the
 accounts till the final outcome of the proceedings is known. The said
 transfers were made in pursuance of the MOUs agreed to by the Board of
 the said bank and the Boards of respective companies. In terms of the
 said MOUs, the liability to the said bank has to be met by KFSL and the
 Company stands fully discharged of its liability. This stand of the
 Company finds support in the judgment of the Bombay High Court and
 Supreme Court in another similar matter. The Debts Recovery Tribunal
 has stayed proceedings against the Company as the Company is also
 registered with Board of Industrial and Financial Reconstruction
 (BIFR). The company also maintains that under various MOUs as referred
 to above the amount was to be appropriated against Company''s
 liabilities from the consideration of the land sold and purchased by
 them.
 
 5.  Provision has not been made in the accounts:
 
 (a) For disputed income tax liability in respect of various Assessment
 orders aggregating to Rs 2343 Lacs (Previous year Rs 2343 Lacs) . The
 appeals filed by the Company against relevant orders are pending before
 various authorities. Liability in respect of interest/penalty under
 Income Tax Act, 1961 will be accounted for as and when the orders are
 passed.
 
 (b) For disputed Sales tax liability in respect of various Assessment
 Years aggregating to Rs 95.46 Lacs relating to West Bengal Territory.
 The company has preferred appeals, which are pending before the
 competent authorities.
 
 6.  The Company has not provided the following, in the books of
 accounts.
 
 (i) Interest on overdue fixed deposit of Rs 1264.08 Lacs due from time
 to time, amount unascertained.
 
 (ii) Interest on loan from MPSIDC of Rs 2800 Lacs and ADCB of Rs 250
 Lacs . However, MPSIDC has made an aggregate claim of Rs 26518. 31 Lacs
 as on 31st March 2012, which is not acknowledged by the Company.
 Further there are no details available regarding the same.
 
 7.  a) In view of the liquidity crunch, the Company could not pay the
 matured FDs of Rs 1264.08 Lacs (Rs. 1270 Lacs ) and interest due up to
 maturity of Rs 246.50 Lacs ( 248 Lacs ) . Some of the FD holders have
 taken legal action and obtained orders from CLB regarding payment in
 installments. The Company has made all attempts to comply with the
 orders However, due to acute cash crunch, the Company could not fully
 comply with the orders of CLB as required under Section 58A (9) of the
 Companies Act, 1956.  Accordingly, the CLB has directed the ROC of
 Maharashtra to take appropriate action in the matter, and the Company
 has submitted a scheme with Principal Bench of CLB at New Delhi, which
 is pending for its consideration. The total number of cases pending
 before various authorities are 6 aggregating to Rs 1.55 Lacs (previous
 year aggregating to Rs 1.55 Lacs )
 
 (b) During the year, some of the Fixed Deposit holders approached the
 Company expressing their willingness to accept partial payment in full
 and final settlement of their dues. The Company has settled such claims
 for gross amount of Rs 7.82 Lacs during the current year, which has
 resulted in reduction of Company''s liability to the extent of Rs 6.1
 Lacs towards principal and Rs 1.72 Lacs towards interest, which were
 earlier provided to the accounts. The Company has been legally advised
 that after the settlement the Company''s liability towards those deposit
 holders is fully extinguished and no claim thereafter is tenable and
 the same can be reversed in the books.  Accordingly, Rs 0.06 Lacs ,
 being the writing back of interest has been credited to profit and loss
 account and Rs 0.23 Lacs , being the reduction in liability of
 unsecured loan has been credited to FD Settlement account grouped under
 the Reserves and Surplus.
 
 8 Some of the Sundry debtors, creditors, loans and advances and
 unsecured loans are subject to confirmation and re-conciliation.
 
 9.  The Company has fulfilled all the conditions referred to in the
 clarification No. 3/5/84 CLX dated 5- Dec.1984 given by the Department
 of Company Affairs to the Institute of Chartered Accountants of India
 with regard to treatment of subsidy received from the Government as
 Free Reserve as defined in the Rule 2(d) of the Companies
 (Acceptance of Deposits) Rules. In view of the said clarification, the
 amount of subsidy received by the Company is deemed to be part of Free
 Reserves.
 
 10.  The Company was declared a sick unit under section 3(1) (O) of the
 Sick Industrial Companies (Special Provision) Act 1985 (SICA) on July
 5, 2006 by the Board for Industrial and Financial Reconstruction
 (BIFR). However, Fixed Assets have been sold by the secured lenders
 under the Securitisation and Reconstruction of the Financial Assets &
 Enforcement of Security Interest Act, 2002 (SARFESAI) and forwarded the
 intimation to BIFR. Appropriate order from Honorable BIFR is awaited.
 
 11.  As a prudent accounting policy, the Company has decided not to
 recognise Deferred Tax Assets on accumulated losses.
 
 12.  Previous year figures have been regrouped and/or rearranged
 wherever necessary.
 
 Notes :
 
 1) In the previous year Snowcem Products Lanka Pvt. Ltd. had agreed to
 buy back its shares at the face value. The refund has since been
 received . However, the proceeds are yer to be credited in Company''s
 account by the Bank, pending certain formalities.The relevant
 information is as below -
 
 2) National Saving Certificate is deposited with the government
 authorities since a long time and the same is not traceable.
 
 2) The Company does not have any Managing Director as required under
 section 269 of the Companies Act, 1956 because the Company cannot pay
 remuneration as per the Schedule XIII of the Act. Hence, the Company is
 being managed by various Committees of the Directors for looking after
 day to day working. Total Directors Fees and Committees Fees paid
 during the year amounted to Rs.  2.6 lacs (Rs 3.36lacs).
 
 3) The Board has approved the expenses for which requisite
 evidences/documents are not available on the records and has confirmed
 that these have been incurred in the normal course of business and out
 of business expediency.