| 1 a) Though, the net worth of the Company has eroded, the Company's
financial statements have been prepared on the basis of going concern
in view of comfort received from the Promoters to the effect that they
will continue to support the Company financially.
b) In view of losses during the year, no amount has been transferred to
"Special Reserve".
2 The accounts of Trade Payables and Current Account of certain
Banks are subject to confirmations, reconciliations, and adjustments,
if any, having consequential impact on the loss for the year, assets
and liabilities, the amounts whereof are presently not ascertainable.
However, the management does not expect any material difference
affecting the current year's financial statements.
In the opinion of the Management, the assets other than fixed assets
and Long term investments have a value on realization in ordinary
course of business at least equal to the amount at which they are
stated.
3 The Company has made provision for leave entitlement and gratuity
as per its Accounting Policies as stated in Para 9 above which is in
variance with AS-15 - "Employee Benefits" prescribed by the Companies
(Accounting Standards) Rules, 2006. However, the same does not have
material impact on the financial statements of the Company.
4 The Company has not received any intimation from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Act, 2006 and hence disclosures, if any, relating to amounts unpaid as
at the yearend together with interest paid/payable as required under
the said Act have not been given.
5 SEGMENT INFORMATION:
A. Primary Segment Reporting -
The Company has single reportable segment viz. investment and dealing
in shares and securities for the purpose of Accounting Standard 17 on
Segment Reporting.
B. There are no secondary and geographical segments as all the
operations are carried on in India.
6 Contingent Liability and Commitments:
1. Disputed Income tax demand under appeal, including interest upto the
date of demand but excluding interest liability, if any, as may arise
on conclusion of the following matter:
A. Demand of disputed Income tax Rs. 3,529,420 (Previous Year - Rs.
3,529,420).
B. Demand of disputed interest on late payment of TDS- NIL (Previous
Year - Rs. 263,925)
2. Commitments: There are no material capital commitments to be
disclosed.
3. The Company's pending litigations comprise of claims against the
Company and proceedings pending with Tax and other Authorities. The
Company has reviewed all its pending litigations and proceedings and
has made adequate provisions, wherever required and disclosed the
contingent liabilities,wherever applicable,in its financial statements.
The Company does not reasonably expect the outcome of these proceedings
to have a material impact on its financial statements.
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