| 1) No confirmations have been received in respect of outstanding
balances of Trade Receivable and Trade payable as at 31st March, 2015.
2) The company continues to account for Leave encashment and other
employee benefits (except gratuity liability) on payment basis as per
past practice.
3) The Company is operating in only one segment, hence requirement of
Accounting Standard - 17 relating to segmental reporting is not
applicable.
4) As per Accounting Standard -22 "Accounting for taxation income"
Where an enterprise has carry forward losses under tax laws differed
tax asset should be recognized only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available, against which differed tax assets can
be realized. The existence of carry forward losses under tax laws, is a
strong evidence that future taxable income would not be sufficiently
available. Therefore, when an enterprise has history of losses,
recognition of differed tax asset is preferable as there is no virtual
certainty for the sufficient future income. Keeping in view the above,
the company has not recognized the differed tax asset as there was no
virtual certainty of sufficient income for writing it off in upcoming
years.
5) Contingent Liability not provided for in respect of:
a) Liabilities that may arise on account of pending sales tax
assessments.
6) The Canton Employees Credit Society had filed a complaint against
the Company before the Taluka Deputy Registrar, Co-operative Societies,
Aurangabad for non-payment /delayed payment of principal and interest
on dues of members to the society. The company has furnished Bank
guarantee for the said amount of security deposit to the Honorable High
Court.
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