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Notes to Accounts of Anka India Ltd.

Mar 31, 2014

1. CORPORATE INFORMATION -

Anka India Limited is a public company, incorporated in India under the provisions of Companies Act, 1956. The Company is having its Regd. Office at Gurgaon Haryana and Corporate office at New Delhi.

2. BASIS OF PREPARATION -

The accompanying financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standard issued by the Institute of CharteredAccountants of India (ICAI) and the provisions of Companies Act, 1956. These accounting policies have been consistently applied, except where newly issued accounting standard is initially adopted by the Company. Management evaluates the effect of accounting standards issued on an-on-going basis and ensures they are adopted as mandatory by the ICAI.

3. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

4. Secured Loan from Darsh Polymers Pvt. Ltd is secured by a first charge and mortgage of all immovable properties both present and future and first charge by way of hypothecation of movable assets (except book debts), and guaranteed by a Non executive Director, a Whole time Director and Joint Managing Director of the Company and further secured by way of pledge of 341800 Equity Shares of Rs.10 each of promoter group. Darsh Polymers Pvt. Ltd. has an option to convert 50% of the amount of loan into equity, subject to the approval of the shareholders of Anka India Ltd. and the Board for Industrial and Financial Reconstruction and also in accordance with prevalent norms , policies and statutory provisions.

6. Leave Encashment

There were no accumulated unavailed leaves in respect of any of the employees as on 31.03.2014, hence no actuarial valuation was required in this regard as on that date

Gratuity

The company had not made the provision for gratuity on the basis of actuarial valuation. Considering the fact that only one employee is working in the company and high cost involved in the getting the actuarial valuation done, the provision for gratuity for the period has been made on estimated basis. In the absence of actuarial valuation as on 31st March 2014 the impact, of such deviation from the accounting standard - 15 as prescribed under the Companies Act, 1956, on the accounts is not ascertainable and also the required disclosures cannot be made.

7. The Company has reclassified previous year figures to conform to this year''s classification.

8. In the opinion of the Management, the value on realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities has been made.

9. Figures are rounded-off to the nearest rupee.

10. Contingent Liabilities-

Particulars 31.03.2014 31.03.2013

Claims against the company not acknowledged as debt or Guarantees -NIL- -NIL-

Other money for which the company is contingently liable

Disputed Demand from Central Excise Deptt. 1,88,319 1,88,319

Disputed Demand under Land ReformAct. 1,90,000 1,90,000

Disputed Demand under Sales Tax - 1,82,760

Custom Duty Written Back 3,15,664 3,15,664

Total 6,93,983 8,76,743

11. Balances outstanding under the captioned heads Sundry Debtors, Sundry Creditors, Loans & Advances, Bank Balances as on the date of Balance Sheet - are subject to reconciliation and confirmation.

12. Deferred Tax -

The company has unabsorbed depreciation and carryforward losses undertax laws. In the absence of virtual certainty of sufficient future taxable income, net deferred tax asset has not been recognised on prudent basis in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

13. The Company being engaged only in the business of manufacture of Shoe -Soles, separate segment reporting, in terms of Accounting Standard AS -17 on "Segment Reporting" issued by the Institute of Chartered Accountant of India, is not required.

14. Additional information pursuant to the provisions of Paragraph 3 and 4 of part-II of Schedule VI to the Companies Act, 1956.

15. Without considering the impact, if any, of the qualifications in the auditor''s report, the Company has no intention to discontinue its operations even though the net worth is negative. Therefore, these accounts have been prepared on ''Going Concern Basis''. and is looking fora new profitable venture.

16. The company has requested its suppliers to intimate whether they are registered under "The Micro, Small and Medium Enterprises Development Act 2006", No supplier has intimated to the company that they are registered under the said Act.

17. Directors have waived off their right to sitting fee in respect of meetings of Board of Directors and committees thereof attended by them.


Mar 31, 2012

1. CONTINGENT LIABILITIES

Particulars as at as at 31-Mar-2012 31-Mar-2011

Contingent Liabilities

Claims against the company not acknowledged as debt Guarantees

Other money for which the company is contingently liable 2,276,743 568257

Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Uncalled liability on shares and other investments partly paid Other commitments

Total 2276743 568257

Notes

Disputed Demand from Central Excise Deptt. 188319 195497

Disputed Demand under Land Reform Act. 190000 190000

Disputed Demand under Sales Tax 182760 182760

Unsecured Loan Written Back 1400000

Custom Duty Written Back 315664

2276743 568257

2. Balances standing to the debit and credit of the debtors, creditors, and few other parties are subject to confirmation/reconciliation. Consequent impact on accounts upon confirmation/reconciliation is not ascertainable in the present circumstances.

3. In the opinion of the Board of directors, the value on realisation of current assets, loans & advances, in the ordinary course of business, shall not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities have been made and contingent liabilities have been disclosed properly.

4. Prior Period Adjustment includes Rs.16,064/- for the current year and Rs.12,281/- for previous period.

Note : That during the year the company has written back a sum of Rs.27,96.481/- which has been shown under the head extraordinary items of statement of Profit & Loss Account.

5. The company has unabsorbed depreciation and carry forward losses under tax laws. In the absence of virtual certainty of sufficient future taxable income, net deferred tax asset has not been recognised on prudent basis in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

6. In the absence of complete assessment for determining impairment loss on the assets in accordance with the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India, an impairment loss amounting to Rs. 28,81,304.95 provided during the period ended on 30th June 2009 (i.e. to the extent of loss estimated as per the scheme sanctioned by the Board for Industrial and Financial Reconstruction) has been retained and no further provision has been made during the current period. In the opinion of management, no material impairment was there in the assets of the company.

7. The Company being engaged only in the business of manufacture of Shoe -Soles, separate segment reporting, in terms of Accounting Standard AS - 17 on "Segment Reporting" issued by the Institute of Chartered Accountant of India, is not required.

*There were no potential equity shares. That during the year face value and paid up value of company has changed from Rs.5 to Rs.10 each due to which the no of shares for the said has been reclassified and rearranged.

8 RELATED PARTY DISCLOSURE:

Related party disclosure in accordance with the Accounting Standard (AS-18) on ''Related Party Disclosure'' issued by the Institute of Chartered Accountant of India are as under:

i) Related Parties :

KEY MANAGEMENT PERSONNEL :

Mr. A.S. Sethi - Joint Managing Director

Mr. H.S. Sethi - Wholetime Director

Mrs. Paramjeet Kaur Sethi - Director

ENTERPRISES OVER WHICH ABOVE PERSON CAN EXERCISE SIGNIFICANT CONTROL

Darsh Polymers Pvt. Ltd.

Auram Polymers (P) Ltd.

Note:- Related parties and their relationship are as identified by the management and relied upon by the auditors.

9. Without considering the impact, if any, of the qualifications in the auditor''s report, there is a positive net worth of the Company and the Company has no intention to discontinue its operations. Therefore, these accounts have been prepared on ''Going Concern Basis''.

10. Company, being unable to raise funds to purchase a car for official use, had purchased one Car for Rs.1098570/- during the F.Y 2005-2006 in the name of one of its directors and taken the car loan from ICICI Bank Ltd. in the name of that director.

Cost of car has been included in the Fixed Assets. Loan amount has already been fully repaid in the previous year. The company is in the process of getting the vehicle transferred in its own name.

(b) There were no accumulated unavailed leaves in respect of any of the employees as on 31. 03. 2012, hence no actuarial valuation was required in this regard as on that date.

(c) Up to the period ended on 30th June 2009, the company had made the provision for gratuity on the basis of actuarial valuation. Considering the fact that only two employees are working in the company and high cost involved in the getting the actuarial valuation done, the provision for gratuity for the period from 01.04.2011 to 31.03.2012 has been made on estimated basis. In the absence of actuarial valuation as on 31st March 2012 the impact, of such deviation from the accounting standard - 15 as prescribed under the Companies Act, 1956, on the accounts is not ascertainable and also the required disclosures cannot be made.

11. The company has requested its suppliers to intimate whether they are registered under "The Micro, Small and Medium Enterprises Development Act 2006", No supplier has intimated to the company that they are registered under the said Act.

12. Directors have waived off their right to setting fee in respect of meetings of Board of Directors and committees thereof attended by them.

13. Secured Loan from Darsh Polymers Pvt. Ltd is secured by a first charge and mortgage of all immovable properties both present and future and first charge by way of hypothecation of movable assets (except book debts), and guaranteed by a Non executive Director, a Whole time Director and Joint Managing Director of the Company and further secured by way of pledge of 341800 Equity Shares of Rs.10 each ( P.Y 683600 of Rs.5 each) of promoter group. Darsh Polymers Pvt. Ltd. has an option to convert 50% of the amount of loan into equity, subject to the approval of the shareholders of Anka India Ltd. and the Board for Industrial and Financial Reconstruction and also in accordance with prevalent norms , policies and statutory provisions.

14. During the year the company has increased its face value and paid up value from Rs.5 to Rs.10 each in an Extra Ordinary General Meeting held on 15.12.2011 at the registered office of the company.

15. During the year the company has ceased to be a sick industrial company within the meaning of section 3(1)(0) of the SICA.1985 by the order passed by Board for Industrial and Financial Reconstruction Bench - II dated 19.12.2011 subject to the directions as stated in the order.

16. Current period comprises of twelve months .i.e from 01st April 2011 to 31st March 2012 as against corresponding previous period which comprised of six months only i.e. from October 01, 2010 to March 31, 2011. Therefore, the current period figures may not be comparable with those of previous year.

17. Previous year''s figures have been reclassified/rearranged wherever considered necessary to conform to this year''s classification.


Mar 31, 2011

1. CONTINGENT LIABILITIES

Current Period Previous Period

a) Disputed Demand from Central Excise Deptt. 188319.00 195497.00

b) Disputed Demand under Land Reform Act. 190000.00 190000.00

c) Disputed Demand under Sales Tax 182760.00 182760.00

2. Balances standing to the debit and credit of the debtors, creditors, and few other parties are subject to confirmation/reconciliation. Consequent impact on accounts upon confirmation/reconciliation is not ascertainable in the present circumstances.

3. In the opinion of the Board of directors, the value on realisation of current assets, loans & advances, in the ordinary course of business, shall not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities have been made and contingent liabilities have been disclosed properly.

4. The company has unabsorbed depreciation and carry forward losses under tax laws. In the absence of virtual certainty of sufficient future taxable income, net deferred tax asset has not been recognised on prudent basis in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

5. In the absence of complete assessment for determining impairment loss on the assets in accordance with the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India, an impairment loss amounting to Rs. 28,81,304.95 provided during the period ended on 30th June 2009 (i.e. to the extent of loss estimated as per the scheme sanctioned by the Board for Industrial and Financial Reconstruction) has been retained and no further provision has been made during the current period. In the opinion of management, no material impairment was there in the assets of the company.

6. The Company being engaged only in the business of manufacture of Shoe -Soles, separate segment reporting, in terms of Accounting Standard AS -17 on "Segment Reporting" issued by the Institute of Chartered Accountant of India, is not required.

7. RELATED PARTY DISCLOSURE:

Related party disclosure in accordance with the Accounting Standard (AS-18) on ''Related Party Disclosure'' issued by the Institute of Chartered Accountant of India are as under:

i) Related Parties:

KEY MANAGEMENT PERSONNEL :

Mr.A.S.Sethi - Joint Managing Director

Mr. H.S. Sethi - Wholetime Director and Brother of Joint Managing Director

RELATIVES:

Mrs. Paramjeet Kaur Sethi - Director and Mother of Joint Managing Director

Mrs. Gurpreet Kaur Sethi - Wife of Mr. H.S. Sethi

Mrs. Pooja Sethi - Wife of Mr. A.S. Sethi

Mr. Dildeep Singh Sethi - Brother of Joint Managing Director

ENTERPRISES OVER WHICH ABOVE PERSON CAN EXERCISE SIGNIFICANT CONTROL

Darsh Polymers Pvt. Ltd.

Auram Polymers (P) Ltd.

Note:- Related parties and their relationship are as identified by the management and relied upon by the auditors.

8. Without considering the impact, if any, of the qualifications in the auditor''s report, there is a positive net worth of the Company and the Company has no intention to discontinue its operations. Therefore, these accounts have been prepared on ''Going Concern Basis''.

9. Company, being unable to raise funds to purchase a car for official use, had purchased one Car for Rs.1098570/- during the F.Y 2005-2006 in the name of one of its directors and taken the car loan from ICICI Bank Ltd. in the name of that director.

Cost of car has been included in the Fixed Assets. Loan amount has already been fully repaid in the previous year. The company is in the process of getting the vehicle transferred in its own name.

(b) There were no accumulated unavailed leaves in respect of any of the employees as on 31 st March 2011, hence no actuarial valuation was required in this regard as on that date.

(c) Upto the period ended on 30th June 2009, the company had made the provision for gratuity on the basis of actuarial valuation. Considering the factthat only two employees are working in the company and high cost involved in the getting the actuarial valuation done, the provision for gratuity for the period from 01.07.2009 to 31.03.2011 has been made on estimated basis. In the absence of actuarial valuation as on 31 st March 2011 the impact, of such deviation from the accounting standard -15 as prescribed under the Companies Act, 1956, on the accounts is not ascertainable and also the required disclosures cannot be made.

10. The company has requested its suppliers to intimate whetherthey are registered under''The Micro, Small and Medium Enterprises Development Act 2006", No supplier has intimated to the company that they are registered underthe said Act.

11. Directors have waived off their right to setting fee in respect of meetings of Board of Directors and committees thereof attended by them.

12. Current period comprises of six months only i.e. from October 01,2010 to March 31,2011 as against corresponding previous period which comprised of fifteen monthsfrom July 01,2009 to September30, 2010. Therefore, the current period figures may not be comparable with those of previous year.

13. Previous year''s figures have been reclassified/rearranged wherever considered necessary to conform to this year''s classification.


Sep 30, 2010

Notes :

1 Secured Loan from Darsh Polymers Pvt. Ltd is secured by a first charge and mortgage of all immovable properties both present and future and first charge by way of hypothecation of movable assets (except book debts), and guaranteed by a Non executive Director, a Whole time Director and Joint Managing Director of the Company and further secured by way of pledge of 683600 Equity Shares of Rs.5 each of promoter group. Darsh Polymers Pvt. Ltd. has an option to convert 50% of the amount of loan into equity, subject to the approval of the shareholders of Anka India Ltd. and the Board for Industrial and Financial Reconstruction and also in accordance with prevalent norms, policies and statutory provisions.

2. CONTINGENT LIABILITIES

Current Year Previous Year Rs. Rs.

a) Disputed Demand from Central Excise Deptt. 195497.00 195497.00

b) Disputed Demand under Land Reform Act. 190000.00 190000.00

c) Disputed Demand under Sales Tax 182760.00 __



3. Balances standing to the debit and credit of the debtors, creditors, and few other parties are subject to confirmation/reconciliation. Consequent impact on accounts upon confirmation/reconciliation is not ascertainable in the present circumstances.

4. In the opinion of the Board of directors, the value on realisation of current assets, loans & advances, in the ordinary course of business, shall not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities have been made and contingent liabilities have been disclosed properly.

5. a) Directors have waived off their right to sitting fee in respect of meetings of Board of Directors attended by them.

b) In terms of the resolution passed by the Board of Directors no remuneration has been paid to the Joint Managing Director and the Whole Time Director during the current period.

6. The company has unabsorbed depreciation and carry forward losses under tax laws. In the absence of virtual certainty of sufficient future taxable income, net deferred tax asset has not been recognised on prudent basis in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

7. In the absence of complete assessment for determining impairment loss on the assets in accordance with the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India, an impairment loss amounting to Rs. 28,81,304.95 provided during the period ended on 30th June 2009 (i.e. to the extent of loss estimated as per the scheme sanctioned by the Board for Industrial and Financial Reconstruction) has been retained and no further provision has been made during the current period. In the opinion of management, no material impairment was there in the assets of the company.

8. The Company being engaged only in the business of manufacture/job-work of Shoes -Soles, separate segment reporting, in terms of Accounting Standard AS -17 on "Segment Reporting" issued by the Institute of Chartered Accountant of India, is not required.

9. RELATED PARTY DISCLOSURE:

Related party disclosure in accordance with the Accounting Standard (AS-18) on ''Related Party Disclosure'' issued by the Institute of Chartered Accountant of India are as under:

i) Related Parties :

KEY MANAGEMENT PERSONNEL :

Mr. A.S. Sethi - Joint Managing Director

Mr. H.S. Sethi - Wholetime Director and Brother offf Joint Managing Director RELATIVES :

Mrs. Paramjeet Kaur Sethi - Director and Mother of Joint Managing Director

Mrs. Gurpreet Kaur Sethi - Wife of Mr. H.S. Sethi

Mrs. Pooja Sethi - Wife of Mr. A.S. Sethi

Mr. Dildeep Singh Sethi - Brother of Joint Managing Director

ENTERPRISES OVER WHICH ABOVE PERSON CAN EXERCISE SIGNIFICANT CONTROL

Jauss Polymers Ltd. Darsh Polymers Pvt. Ltd.

DTG India Pvt. Ltd. Auram Polymers (P) Ltd.

Note:- Related parties and their relationship are as identified by the management and relied upon by the auditors.

10. Without considering the impact, if any, of the qualifications in the auditor''s report, there is a positive net worth of the Company and the Company has no intention to discontinue its operations. Therefore, these accounts have been prepared on ''Going Concern Basis''.

11. Company, being unable to raise funds to purchase a car for official use, had purchased one Car for Rs.1098570/- during the F.Y 2005-2006 in the name of one of its directors and taken the car loan from ICICI Bank Ltd. in the name of that director.

Cost of car has been included in the Fixed Assets. Loan amount has been fully repaid during the year. The company is in process of getting the vehicle transferred in its own name.

(b) There were no accumulated unavailed leaves in respect of any of the employees as on 30th September 2010, hence no actuarial valuation was required in this regard as on that date. Provision for leave encashment lying at the beginning of the year has been written back.

(c) Upto the period ended on 30th June 2009, the company had made the provision for gratuity on the basis of actuarial valuation. Considering the fact that only two employees are working in the company and high cost involved in the getting the actuarial valuation done, the provision for gratuity for the period ended on 30.09.2010 has been made on estimated basis. In the absence of actuarial valuation as on 30th September 2010 the impact, of such deviation from the accounting from the accounting policy of the company as well as the accounting standard - 15 as prescribed under the companies Act, 1956, on the accounts is not ascertainable and also the required disclosures cannot be made.

12. The company has requested its suppliers to intimate whether they are registered under "The Micro, Small and Medium Enterprises Development Act 2006", No supplier has intimated to the company that they are registered under the said Act.

13. Previous year''s figures have been reclassified/rearranged wherever considered necessary to conform to this year''s classification.


Jun 30, 2009

1. CONTINGENT LIABILITIES

Current year Previous year Rs. Rs.

a) Bank Guarantee issued on behalf of the Company 100000.00 100000.00

b) Other amounts for which the Company is contingently liable

Disputed Demand from Central Excise Deptt. 195497.00 195497.00

Disputed Demand under Land Reform Act. 190000.00 190000.00

2. Balances standing to the debit and credit of the debtors, creditors, and other parties are subject to confirmation/reconciliation. Consequent impact on accounts upon confirmation/reconciliation is not ascertainable in the present circumstances.

3. In the opinion of the Board, the value on realisation of current assets, loans & advances in the ordinary course of business shall not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities have been made and contingent liabilities have been disclosed properly.

4. a) Directors have waived off their right to sitting fee in respect of meetings of Board of Directors attended by them.

b) Remuneration has been paid to the Joint Managing Director and a Whole Time Director as a minimum remuneration in accordance with the limits prescribed in Schedule-XIII of the Companies Act, 1956 and resolution passed by the members in the General Meeting as per details given hereunder :-

Salary & Allowances :- Rs. 18,00,000/- (Previous Year: Rs. 14,40,000/-)

Contribution to PF and other Funds :- Rs.91,080/- (Previous Year: Rs.86400/-)

5. The company has unabsorbed depreciation and carry forward losses under tax laws. In the absence of virtual certainty of sufficient future taxable income, net deferred tax asset has not been recognised on prudent basis in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" Issued by the Institute of Chartered Accountants of India.

6. In the absence of complete assessment for determining impairment loss on other assets in accordance with the Accounting Standard - 28 issued by the Institute of Chartered Accountants of India, an impairment loss amounting to Rs. 28,81,304.95 on assets lying as on 30th June 2009 has been provided only to the extent of loss estimated as per the scheme sanctioned by the Board for Industrial and Financial Reconstruction (BIFR) during the current period. This amount has been charged to Profit & Loss Account under the head Extra Ordinary Items ( Refer Note No. 19).

7. The Company being engaged only in the business of manufacture/job-work of Shoes -Soles, separate segment reporting, in terms of Accounting Standard AS-17 on "Segment Reporting" issued by the Institute of Chartered Accountant of India, is not required.

8. RELATED PARTY DISCLOSURE :

Related party disclosure in accordance with the Accounting Standard (AS-18) on ''Related Party Disclosure'' issued by the Institute of Chartered Accountant of India are as under:

i) Related Parties :

KEY MANAGEMENT PERSONNEL :

Mr. A.S. Sethi - Joint Managing Director

Mr. H.S. Sethi - Chairman & Wholetime Director and Brother of Joint Managing Director

RELATIVES :

Mrs. Paramjeet Kaur Sethi - Director & Mother of Joint Managing Director & Chairman & Wholetime Director

Mrs. Gurpreet Kaur Sethi - Wife of Mr. H.S. Sethi Chairmn

Mrs. Pooja Sethi - Wife of Mr. A.S. Sethi Joint Managing Director

Mr. Dildeep Singh Sethi - Brother of Joint Managing Director & Chairman & Wholetime Director

ENTERPRISES OVER WHICH ABOVE PERSON CAN EXERCISE SIGNIFICANT CONTROL

Jauss Polymers Ltd. Darsh Polymers Pvt. Ltd. DTG India Pvt. Ltd.

Note:- Related parties and their relationship are as identified by the management and relied upon by the auditors.

9. Net Worth of the Company is in negative and the Company has no intention to discontinue itsoperations.Therefore, these accounts have been prepared on ''Going Concern Basis''.

10. Company, being unable to raise funds to purchase a car for official use, has purchased one Car for Rs.1098570/-during the FY. 2005-2006 in the name of one of its directors and taken the car loan from ICICI Bank Ltd. in the name of that director.

Cost of car has been included in the Fixed Assets and outstanding loan account has also been included in Secured Loans in the Company''s balance sheet.

11. EMPLOYEES BENEFITS

As per Accounting Standard 15 "Employee Benefits", the require disclosures of Employee Benefits to the extent applicable to the company are given below:

The estimates of rate of escalation in salary as considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in employment market. The above information is certified by the actuary.

12. The company has requested its suppliers to intimate whether they are registered under ''The Micro, Small and Medium Enterprises Development Act 2006", No supplier has intimated to the company that they are registered under the said Act.

13 During the period covered under these accounts, the company has stopped the production of PU Soles and disposed off all the machineries and moulds used in its production. The same has been done as these machines were very old and not working properly and also the same were requiring high maintenance cost. At the same time these were consuming more power and the company was incurring huge losses in production of PU Soles. The company proposes to obtain shareholders approval in this regard in the ensuing annual general meeting and also the permission of the Board for Industrial & Financial Reconstruction is being sought.

In the meantime the company is exploring the viability of commencing the business of PU Soles again with the machines of latest technology.

14. Board for Industrial and Financial Reconstruction, vide its order dated 15.05.2009, has sanctioned a Rehabilitation Scheme (Sane tioned Scheme) for revival of the company under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985.

Pursuant to the directions given in the sanctioned scheme following adjustments have been made in these accounts :

(a) Unsecured loans to the tune of Rs. 125 lacs received in earlier years have been converted into fully paid 25 lacs equity shares of Rs.5 each at par.

(c) To give effect to the reduction in face value of paid up share capital from Rs.10 to Rs.5, the Authorised Capital of the company has also been restructured from 12000000 equity shares of Rs.10 each to 24000000 equity shares of Rs.5 each.

(d) The company is in the process of giving effect to the other directions given in the sanctioned scheme the impact of which, if any, would be given after the completion of the process.

15. Unpaid Cheques in Schedule ''F'', aggregating to Rs.128 lacs ( Previous Year: NIL), represent cheques issued against repayment of unsecured loan which are lying unpaid as at 30th June,2009.

16. These accounts are for an extended period of 15 months, hence the figures of current period may not be comparable with those of previous year.

17 Previous year''s figures have been reclassified/rearranged wherever considered necessary to conform to this year''s classification.

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