1 Winding-up of the Company
The Reserve Bank of India under section 45 MA of the Reserve Bank of
India Act, 1934, has petitioned the High Court of Karnataka in Case No.
CA 679/02 dated July 15, 2002 to wind up the Company. The petition was
admitted on 3.1.2003 as company petition No. 126/02. The Honble court
in the interim order dated 12.9.2003 has restrained the company from
making any payments until further orders. The case is still pending
disposal in the High Court.
2. Fixed Assets.
Fixed Assets are carried at cost less accumulated depreciation and
a) Assets Acquired prior to 31.3.96 :
Depreciation on the leased and owned assets is provided on straight
line method as per the schedule XIV of the companies act 1956. In the
year under review, lease equilization charge has been computed on the
b) Assets acquired after 1,4.96 The company is writing off 95% of the
Leased assets within the primary lease period the rate of depreciation
charged is more than the rates prescribed by the Companies Act, 1956,
The book value of such assets has become nil by both methods of
calculation Consequently, Loss has not been overstated because of the
above method of calculation. Lease Equalization charge amounting to
Rs, 2,89,98,523/- (Rs. 3,33,20,376/-) for all leased assets upto the
date of the Balance Sheet is computed, and Rs. 43,21,853 (Rs.
45,32,920/-) has been written back, as per the Guidance Note issued by
the institute of Chartered Accountants of India.
Investment in Government Securities has been mentioned at Cost.
Investments in equity shares shown as stock-in-trade have been valued
at realisable value.