| 1. Contingent Liabilities
Disputed demand for Sales tax for the years 1996-97 to 2000-01 of Rs.
52,81,360 in terms of orders from the Sales tax Tribunal, Gujarat is
decided in favour of the Company. Sales Tax Demand of Rs. 2,73,12,314/-
plus interest is also disputed for the years 2002-03 to 2005-06 and
appeals are lying to be decided. The Company has preferred appeals
against the said orders after taking appropriate advise from the
experts.
The Assistant Commissioner of Income-tax, Surendranagar has raised
demands of Rs. 72,10,924 disallowing certain claims of deduction from
Total Income against which the Company has preferred appeals with ITAT,
Rajkot after counselling of the experts. Pending final disposal of the
appealed demands, revenue authorities have preferred to attach the
fixed and current assets of the Company.
Disputed demand of Rs. 26,19,909/- for A.Y. 2006-07 under the Income Tax
Act is lying undecided with Appellate Tribunal, Mumbai.
2. Related Party transactions
Current account outstanding at the year end payable to Mrs. Alpa Haren
Shah, wife of Mr. Haren Shah, Director, Rs. 12,00,000, to Mrs. Bhanuben
Shah, mother of Mr. Haren Shah, Director, Rs. 11,00,000 and to Mr. Haren
Shah, Director, Rs. 2,02,194
3. Earnings Per Share
As per the amended Clause 41 of the Listing Agreement and by virtue of
Accounting Standard 20 "Earnings Per Share" issued by the ICAI the
disclosures are given below :
Earnings Per Share (EPS) calculation (basic and diluted) :
4. Balances of Sundry Debtors, Banks and Loans & Advances are subject
to confirmation.
5. Amount realised on sale of residue agricultural waste is classified
under Other Income.
6. Previous year's figures have been regrouped/recast wherever
necessary and are in brackets besides current years' figures. Figures
of loss are presented in Brackets.
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