1 Contingent Liability
There is no claim against the Company, which is to be acknowledged as
2. Realized value of current assets
In the opinion of the Board and to the best of the knowledge and
belief, the value on realization of current assets in the ordinary
course of business will not be less than the amount at which they are
stated in Balance Sheet.
3. Foreign Exchange
Earning in foreign exchange during the year was Nil (Previous Year
Nil). Also, there is no expenditure in foreign exchange during the year
(Previous Year Nil).
4. Segment Reporting
During the year, the Company has not entered into business activities.
Hence, the requirement of segment reporting as per Accounting Standard
17 issued by the Institute of Chartered Accountants of India (ICAI) is
5. Provision of benefits for employees
In the previous year, due to closure of factory at Bhiwadi; most of the
employees left the Company gradually. A provision of Rs. 34,00,000/-
towards gratuity and leave encashment for the remaining workers/staff
was made at the end of the previous year. Out of the said provision, an
amount of Rs. 2,86,395/- has been paid to the staff of the Company and
Rs. 13,00,000/- payable to one of the directors has been shown as
liability in the books of accounts on full & final settlement of such
staff & director. The remaining excess provision of Rs. 18,13,605/- has
been written off under the head other income as the same is no longer
required in the view of the management of the Company.
6. Prior period Items
Prior period expenses amounting to Rs. 16,153/-(Previous Year Rs.
6200/-) mainly on account of personnel and other expenses, have been
accounted for under the relevant heads of account.
7. Previous year figures have been regrouped/ rearranged wherever
considered necessary for comparison and to compliance with provisions of
revised schedule VI of the Companies Act, 1956.