Unity Infraprojects

1.  Contingent Liabilities not provided for
 
 (As certified by the Management) %•¦¦
 
                                                   As at       As at
 
 Description                                       31st March, 31st March, 
                                                    2009        2008
 
                                                   (Rs.In Lacs) (Rs.In 
                                                                Lacs)
 
 Guarantees given by banks on behalf of the         52,073.63   41,000.95
 Company
 Corporate Guarantees given by the Company           7,333.00   Nil
 Claims against the Company not acknowledged
 as debts in respect of:
 
 a.  Income Tax matters
 b.  Sales Tax matters                                Nil       Nil
 c.  Excise Duty matters
 d.  Others
 Letter of Credit                                   2,085.83  2,344.98
 Total                                             61,492.46 43,345.93
 
 2.  Capital Commitments
 
 Estimated amount of contracts (net of advances) remaining to be
 executed on capital account and not provided for is Rs. Nil (Previous
 Year: Rs. Nil).
 
 3.  Balance in Foreign Bank Accounts (State Bank of India, Nepal) is as
 per ledger and are subject to reconciliation.
 
 4.  Bank balances under Current Liabilities represents credit balances
 in bank accounts as at the Balance Sheet date to book entries standing
 in bank reconciliation.
 
 5.  Interest under Finance Charges is net of Interest income amounting
 to Rs. 1,822.68 lacs (Previous Year Rs. 855.94 lacs).  Tax Deducted at
 Source on Interest Income is Rs. 413.02 lacs (Previous Year Rs. 193.96
 lacs).
 
 6.  Disclosures underthe Micro, Small and Medium Enterprises
 Development Act, 2006
 
 The Company has not received any intimation from suppliers regarding
 their status under the Micro, Small and Medium Enterprises Development
 Act, 2006 and hence disclosure requirements in this regard as per
 Schedule VI of the Companies Act, 1956 could not be provided.
 
 7.  Segment Information
 
 In line with Accounting Standard 17 on Segment Reporting, taking into
 account the organizational structure, product type as well as the
 differing risks and returns criterion, the Company is engaged in only
 one reportable segment viz., Construction and Engineering.
 
 8.  Related Party Disclosures:
 
 Refer Annexure attached.
 
 9.  Operating Leases
 
 Disclosure under Accounting Standard 19 (Leases) issued by the
 Institute of Chartered Accountants of India, the Company has taken
 various residential/ office premises (including Furniture and Fittings
 if any) under Leave and License agreements for periods which generally
 range between 11 months to 3 years. These arrangements are renewable by
 mutual consent on refundable security deposits. These payments are
 recognized in Profit and loss Account under Rent, Rates and Taxes.  
 
 15.The provision for income tax and deferred tax has been worked out on
 the basis of outstanding statutory liability will be paid before due
 date of filing of income tax return.
 
 10.  Income Tax Assessment Status:
 
 The Income Tax Assessments of the Company are completed up to the
 assessment year 2005-2006 and various appeals filed by the Company in
 this regards are pending before Statutory Appellate Authorities. There
 are no amounts in respect of disputed appeals. The current years
 provision for Income Tax has been made taking into consideration
 deduction u/s 80 IA in respect of eligible projects as per the
 provisions of Income Tax Act, 1961 introduced by the Finance Act, 2007.
 
 11.  In the opinion of the Board of Directors, the Current Assets,
 Loans & Advances have a value on realisation in the ordinary course of
 business at least to the extent of amount stated in the Balance Sheet.
 No Confirmations have been obtained from Sundry Debtors, Sundry
 creditors and for Loans & Advances and Tender deposits outstanding. The
 amounts shown in the Balance Sheet are, therefore, as per books of
 accounts.
 
 12.  The interest has not been provided on Unsecured Loans received
 from Directors and others, since these are considered as interest free.
 
 13.  Impairment of Assets:
 
 On a further assessment of the Impairment of Fixed Assets of the
 Company as at Balance Sheet date as required by Accounting Standard 28
 (AS 28): Impairment of Assets issued by the Institute of Chartered
 Accountants of India, Company is of the view that no provision for
 impairment of Fixed Assets is required.