1. Figures are regrouped / rearranged wherever they are necessary.
2. During the year, due to carried forward loss, Company has not
provided taxation in the Books of Accounts including deferred tax
liability as the Company does not estimate any such liability in the
3. The Company has revalued its Land & Building of both the Units at
Changodar, Tal Sanand Dist. Ahmedabad effective 27.03.1998 on the basis
of the Valuation Report from the Approved Valuer Shri B R Rami,
Ahmedabad on the basis of prevailing market rates of Land & Building on
revaluation. The following revalued amounts were substituted for the
historical cost in the gross block of Fixed Assets.
4. Business Segment
The Company has suspended business activities and hence no business
5. Related Party Disclosures.
(i)The Company neither have Holding, Subsidiary or fellow subsidiary
Company nor it is a holding, subsidiary or fellow Company.
(ii)Other related party with whom no transactions have taken place
during the year
6. No Managerial Remuneration is paid during the year previous year
7. Contingent Liabilities not provided for in the books of accounts
(i) The Company has a various matter for different years and pending
with different forum of sales tax authority. Total demand of Rs. 965.97
lacs for which the apprals are pending at various forum of sales tax
department as details given below:
For these years appeals are pending .The Company has made provision for
assessed sales tax. How ever no provision for interest & penalty is
made since the company shall make application to BIFR (Since Company is
already registered with BIFR.)for relief from payment of Interest &
Penalty. Company have applied to Govt. of Gujarat as per
G.R.BFR/(HPC)/102009/435690/P dtd. 15.7.2010.
b) The PF authorities has levied damages Rs. 562444 & penal interest
Rs. 56769 for delayed payment of PF for the period from March 2002 to
July 2003. However, the Company has approached the higher authorities
for waiver shifted of damages as was done in the past no provision is
made for the same.
The Company''s transformer is required to be sifted from the place where
it is at present as the side adjoing primises was sold by operating
Agency as per guidelines of BIFR in 2006. the estimated cost for
shifting will be approx Rs. 5 lacs. No Provision has been made.
8.There is no amount due to Small scale Industrial undertakings/units.
9. Certain Unclaimed credit balances & unrecoverable amounts from
customers which are compromised by the Company for lesser payment or
which in the opinion of the management not payable & non-recoverable
outstanding Debit balance i.e. (Debit/Credit Balances) are written off
during the year and net amount is treated as expense/income during the
10. The Financial data for further information are given above. The
Company has incurred cash loss during the current year. Moreover
Company has suspended production from 22.11.2009 & relieved all the
staff members from 28.2.2010. On the basis of these facts and based on
Accounting Standard issued by ICAI in our opinion the Company is not
Going Concern. However accounts are prepared on Going Concern basis
on the basis of legal opinion obtained by Company.