1. Interest and other borrowing costs attributable to qualifying
assets are capitalized. Other interest and borrowing cost are charged
2. During the Year under report, the Company has written off
Rs.3,60,080 , being the remaining portion of the amount paid to the
workmen who opted retirement in previous years under Voluntary
3. The manufacturing unit at Lamdapura - Manjusar has been closed
since May, 2009 and hence the purchase - production - sales activity in
respect of the manufacturing unit is no more there. However Company
now, has been engaged into trading activity in the same line of
business at Chennai.
4. In the opinion of the Board, the Current Assets, Loans and Advances
are approximately of the value stated, if realised in the ordinary
course of business. Provision for all known liabilities is adequate and
not in excess of the amount reasonably necessary.
5. Debit and Credit balances in party accounts are subject to
confirmation and reconciliation. In absence of taxable income,
provision for Income Tax has not been made.
6. The Company has yet to comply provisions of Section 383-A of the
Companies Act 1956 in respect of appointment of Company Secretary and
provisions of Section 205-A of the Companies Act, 1956 in respect of
payment of Dividend for the year 1995-96. However a Practicing Company
Secretary has been appointed as a retainer.
7. Under the Micro, Small and Medium Enterprises Development Act, 2006
which came into force on October, 2006, certain disclosures are
required to be made relating to Micro, Small and Medium Enterprises.
Since the relevant information is not readily available, no disclosures
have been made in the Books of Accounts.
8. Accounting for Taxes on Income and Deferred Tax Asset AS - 22
The Company has not been liable to pay any Income-tax for the year as
the Company has been in loss. Further the Company has huge Unabsorbed
Business Losses and Unabsorbed Depreciation under the Income tax Act
and hence its Deferred Tax Assets are much in excess of Deferred Tax
Liabilities. Company has not recognized differed tax asset till last
year in absence of virtual certainty of continual future profits. But,
though in the current year, there has been business loss, the
expectation of business profit has been certain and hence Deferred Tax
Asset has been recognized as under.
9. Figures for the previous year have been regrouped, rearranged and
recast wherever necessary so as to make them comparable with those of
the current year.