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Notes to Accounts of Evergreen Textiles Ltd.

Mar 31, 2014

1 Terms/Rights attached to Equity Shares:

The Company has issued only one class of shares referred to as equity shares having a par value of Rs.10/- per share. All equity shares carry one vote per share without restrictions and are entitled to dividend, as and when declared. All shares rank equally with regards to the Company''s residual assets.

2. a) In pursuance of the order dated 24th September 2002 of Hon''ble Supreme Court, the company has been held liable for payment of Excise duty on its Finished product (Fur Fabrics). In pursuance of the said order the Central Excise Authorities has asked the company to pay amount of Rs 1,45,78,305/- towards Central Excise duty payable on the goods cleared by the company during the period from 20.10.1987 to 31.07.1990. The company has accordingly provided a sum of Rs 1, 45, 78,305/- towards Central Excise duty liability in its accounts during the year ended 31st March 2003. The company has however not provided for interest on the demand of Rs 1, 45, 78,305/- from the date of the Order of the Hon''ble Supreme Court.

b) In pursuance of the order dated 30th November 2004 of Additional Commissioner, Central Excise, Mahad, the Company has been held liable for demand of BED, AED, and AD (T & T) under section 11 A of Central Excise Act, 1944 on its finished products Fur Fabrics. In pursuance of the said order, the Central Excise authorities had asked the company to pay an amount of Rs 1, 60, 29,381/- towards Central Excise Duty payable on goods cleared by the Company during the period from Sept 1996 to Nov 2000, The company accordingly provided a sum of Rs 1, 60, 29,381/- towards Central Excise Duty liability in its accounts during the year ended 31st March 2005. The company has however not provided for interest on demand of Rs 1, 60, 29,381/- from the date of order.

c) In pursuance of the order dated 16th March 2005 of Assistant Commissioner, Central Excise, Mahad, the Company has been held liable for demand of short payments arising out of the finalisation of the provisional assessment of its finished products Fur Fabrics. In pursuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 2, 29, 16,596/- towards Central Excise Duty payable on goods cleared by the Company during the period from 24.03.1987 to 31.05.1994 the company accordingly provided a sum of Rs 2, 29, 16,596/- towards Central Excise Duty liability in its account during the year ended 31st March 2005.

However against the above demands the Company had received a letter dated 20-12-2012 from the Office of the Deputy Commissioner Central Excise, Mahad Division for the recovery of the said demands. The Company had filed a detailed proposal to the Excise Department for the revival of the Company, but the proposal was not considered by the Department and an Order of attachment of Company''s Property at plot No B-5, B-6, MIDC Mahad, Taluka Mahad, Dist - Raigad dated 23-04-2013 has been issued from the Office of the Deputy Commissioner of Central Excise, Mahad Division, attaching the Company''s property at plot No B-5, B-6, MIDC Mahad, Taluka Mahad, Dist - Raigad, and in persuance of the said order, the Excise Department issued a letter dated 4th March, 2014 mentioning that the Company''s attached property at plot No 8-5, B-6, MIDC Mahad, Taluka Mahad, Dist - Raigad has been put for auction for recovery of their dues. No further information has been received thereafter.

3. In pursuance of the order dated 19th December, 2006 of The Commissioner, Central Excise (ADJ), Mumbai, the Company has been held liable for demand of duty under section 11 A (2) of Central Excise Act, 1944 for Rs 2,22,34,778/- and also penalty imposed of Rs 2,00,91,308/- u/s 11 AC and Rs 5,00,000/- under rule 209 of CER,1944 regarding its deemed export transactions under 100% EOU with GCU Ltd, during the period August 1996 to July 1998. Although the company has disputed the same and filed appeal against the same before the Appellate Tribunal u/s 358 of the Central Excise Act, the Company has provided for total amount of Duty and Penalty amounting to Rs 4,28,26,086/- towards Central Excise Duty liability in its accounts during the year ended 31st March 2007. The matter is before the Appellate Tribunal (CESTAT). The adjustments if any will be made in the books of accounts in the yearas & when the appeal is decided.

4. In pursuance of the assessment proceedings before the Sales Tax officer, the company has received demand notices from Sales tax Office under the Bombay Sales TaxAct & Central Sales TaxAct in respect of the following financial years.

Although the company has disputed the same and filed appeal against the same before The Sales Tax Tribunal, Mumbai the company has provided for the total demand amounting of Rs 18, 44,683/- towards Sales Tax liability in its accounts during the year ended 31st March 2007. The adjustment if any will be made in the books of accounts in the year as and when the appeal is decided.

5. In the opinion of the Board of Directors, all the assets other than Fixed Assets and Non-Current Investments have a value on realisation in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet.

6. Some of the books and records of the company pertaining to the period from October 1995 to January 1997 have been taken by the Central Excise authorities on 01.02.1997 and the books and records of the company pertaining to the period from February 1997 to July 1998 have also been taken by the central excise authorities on 23.07.1998 and are still lying with the concerned Authorities. The accounts for these period were therefore reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the books and records by the concerned authorities. .

7. RELATED PARTY TRANSACTIONS:

As per Accounting Standard -18 on "Related Party Disclosure", related parties of the Company are disclosed below:

8. The company has taken interest free loan from Premier Consultant & Traders Ltd. (Shareholder) of Rs. 2900000/- (Previous year Rs. 2760000/-) till the commencement of The Companies Act 2013, the same is to be intimated to the Registrar of Companies.

9. SEGMENT REPORTING

The Company is operating in one segment only i.e. Textiles, but during the year there is no business conducted by the Company, hence no segment reporting is given.

10. There are no Micro, Small and Medium Enterprises, as provided under the Micro, Small and Medium Enterprises Development Act, 2006, to whom the company owes dues, which are outstanding for more than 45 days as at Balance Sheet date.

11. In view of the Losses during the year, the company does not have taxable Income, hence the Provision for current Income Tax has not been made.

12. Previous year''s figures have been regrouped / rearranged / reclassified wherever necessary to confirm with current year''s classification / disclosure.


Mar 31, 2013

1. a) In pursuance of the order dated 24th September 2002 of Hon''ble Supreme Court, the company has been held liable for payment of Excise duty on its Finished product (Fur Fabrics). In pursuance of the said order the Central Excise Authorities has asked the company to pay amount of Rs. 1,45,78,305/- towards Central Excise duty payable on the goods cleared by the company during the period from 20.10.1987 to 31.07.1990. The company has accordingly provided a sum of Rs 1,45.78,305/- towards Central excise duty liability in its accounts during the year ended 31st March 2003. The company has however not provided for interest on the demand of Rs 1,45,78,305/- from the date of the Order of the Hon''ble Supreme Court.

b) In pursuance of the order dated 30th November 2004 of Additional Commissioner, Central Excise, Mahad, the Company has been held liable for demand of BED, AED, and AD (T & T) under section 11 A of Central Excise Act, 1944 on its finished products Fur Fabrics. In pursuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 1,60,29,381/- towards Central Excise Duty payable on goods cleared by Company during the period from Sept 1996 to Nov 2000 the company accordingly provided a sum of Rs 1,60,29,381/- towards Central Excise Duty liability in its account during the year ended 31st March 2005. The company has however not provided for interest, on demand of Rs 1,60,29,381/- from the date of order.

c) In pursuance of the order dated 16th March 2005 of Assistant Commissioner, Central Excise, Mahad, the Company has been held liable for demand of short payments arising out of the finalisation of the provisional assessment of its finished products Fur Fabrics. In pursuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 2,29,16,596/- towards Central Excise Duty payable on goods cleared by Company during the period from 24.03.1987 to 31.05.1994 the company accordingly provided a sum of Rs 2,23,16,596/- towards Central Excise Duty liability in its account during the year ended 31st March 2005. However against the above demands the Company has received a letter dated 20-12-2012 from the Office of the Deputy Commissioner Central Excise, Mahad Division for the recovery of the said demands. The Company has filed a detailed proposal to the Excise Department and the matter is under consideration.

2. In pursuance of the order dated 19th December, 2006 of The Commissioner, Central Excise (ADJ), Mumbai, the Company has been held liable for demand of duty under section 11 A (2) of Central Excise Act, 1944 for Rs 2,22,34,778/- and also penalty imposed of Rs 2,00,91,308/- u/s 11 AC and Rs 5,00,000/- under rule 209 of CER.1944 regarding its deemed export transactions under 100% EOU with GCU Ltd, during the period August 1996 to July 1998. Although the company has disputed the same and filed appeal against the same before the Appellate Tribunal u/s 35B of the Central Excise Act, the Company has provided for total amount of Duty and Penalty amounting to Rs 4,28,26,086/- towards Central Excise Duty liability in its accounts during the year ended 31st March 2007. The matter is before the Appellate Tribunal (CESTAT). The adjustments if any will be made in the books of accounts in the year as & when the appeal is decided.

3. in the opinion of the Board of Directors the company expect that there would be no liabilty of custom duty & other charges payable on raw materials imported under Duty Exemption Scheme for non - fulfilment of Export obligation due to major fire in the factory premises of the company on 28th May 1993, hence no provision for the same has been made in the books of account. However the Company is in correspondence with DGFT, Mumbai for closure of the said advance licence and accordingly the Company has paid Custom Duty with Interest amounting to Rs 703303/- during the year under consideration. The Company expects the closure of the said licence shortly.

4. In the opinion of the Board of Directors, all the assets other than Fixed Assets and Non Current Investments have a value on realisation in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet.

5. a) Some of the books and records of the company pertaining to the period October 1995 to January 1997 have been taken by the central excise authorities on 01/02/1997 and are still lying with the concerened Authorities. The accounts for these period were therefore reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.

b) Some of the books and records of the company pertaining to the period February 1997 to July 1998 have also been taken by the central excise authorities on 23.07.98 and are still lying with concerened Authorities. The accounts for these periods were therefore reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.The company is therefore not in a position to ascertain the quantum of liability if any arising and therefore the same will be provided as and when demand is raised.

6. SEGMENT REPORTING

The Company is operating in one segment only i.e. Textiles, but during the year there is no business conducted by the Company, hence no segment reporting is given.

7. There are no Micro, Small and Medium Enterprises, as provided under the Micro, Small and Medium Enterprises Development Act, 2006, to whom the company owes dues, which are outstanding for more than 45 days as at Balance Sheet date.

8. In view of the Losses during the year, the company does not have taxable Income, hence the Provision for current Income Tax has not been made.

9. Previous year''s figures have been regrouped / rearranged / reclassified wherever necessary to confirm with current year''s classification / disclosure.


Mar 31, 2012

1.1 Terms / Rights attached to Equity Shares :

The Company has Issued only one class of shares referred to as equity shares having a par value of Rs.10/- per share. All equity shares carry one vote per share without restrictions and are entitled to dividend, as and when declared. All shares rank equally with regards to the Company's residual assets.

During the year ended 31 st March, 2012. the amount of per share dividend recognized as distributions to equity shareholders was Rs NIL (31 st March, 2011 Rs Nil.).

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets Df the Company. The distribution will be in proportion to the number of equity shares held by the shareholders,

2 a) In pursuance of the order dated 24th September 2002 of Hon'ble Supreme Court, the company has been held liable for payment of Excise duty on its Finished product (Fur Fabrics). In pursuance of the said order the Central Excise Authorities has asked the company to pay amount of Rs 1 45 78 305/- towards Central Excise duty payable on the goods cleared by the company during the period from 20.10.1987 to 31.07.1990. The company has accordingly provided a sum of Rs 1,45,78,305/- towards Central excise duty liability in its accounts during the year ended 31st March 2003. The company has however not provided for interest on the demand of Rs 1,45,78,305/- from the date of the Order of the Honble Supreme Court.

b) In pursuance of the order dated 30th November 2004 of Additional Commissioner, Central Excise, Mahad, the Company has been held liable for demand of BED AED and AD (T & T) under section 11 A of Central Excise Act. 1944 on Its finished products Fur Fabrics. In pursuance of the said order the Central Excise authorities had asked the company to pay w amount of Rs 1,60,29,381/- towards Central Excise Duty payable on goods cleared by Company during the period from Sept 1996 to Nov 2000 the company accordingly provided a sum of Rs 1,60,29,381/- towards Central Excise Duty liability in its account during the year ended 31st March 2005. The company has however not provided for interest on demand of Rs 1,60,29,381/-from the date of order.

3 in pursuance of the order dated 16th March 2005 of Assistant Commissioner, Central Excise. Mahad. the Company has been held liable for demand of short payments arising out of the finalisation of the provisional assessment of its finished products Fur Fabrics. In pursuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 2,29,16,596/- towards Central Excise Duty payable on goods cleared by Company during the period from 24.03.1987 to 31.05.1994 the company accordingly provided a sum of Rs 2,29,16,596/- towards Central Excise Duty liability in its account during the year ended 31st Mardr2O05.

4. In pursuance of the order dated 19th December, 2006 of The Commissioner, Central Excise (ADJ), Mumbai, the Company has been held liable for demand of duty under section 11 A (2) of Central Excise Act, 1944 for Rs 2,22,34,776/- and also penalty imposed of Rs 2,00,91,308/- u/s 11 AC and Rs 5,00,000/- under rule 209 of CER.1944 regarding its deemed export transactions under 100% EOU with GCU Ltd, during the period August 1996 to July 1998. Although the company has disputed the same and filed appeal against the same before the Appellate Tribunal u/s 35B of the Central Excise Act, the Company has provided for total amount of Duty and Penalty amounting to Rs 4,26,26,086/- towards Central Excise Duty liability in ils accounts during the year ended 31 st March 2007. The adjustments if any will be made In the books of accounts in the year as & when the appeal is decided.

5. In the opinion of the Board of Directors the company except that there would be no liabilty of custom duty & other charges payable Rs 556.00 Lacs (Approx) on raw materials imported under Duty Exemption Scheme for non - fulfilment of Export obligation due to major fire in the factory premises of the company on 26th May 1993, hence no provision for the same has been made in the books of account.

6. In the opinion of the Board of Directors, all the assets other than Fixed Assets and Non Current Investments have a value on realisation in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet,

7. a) Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 01/02/1997 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available Information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.

b) Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 23.07.96 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.The company Is therefore not in a position to ascertain the quantum of liability if any arising and therefore the same will be provided as and when demand is raised.

8. RELATED PARTY TRANSACTIONS :

As per Accounting Standard -18 on "Related Party Disclosure", related parties of the Company are disclosed below :

A. List of Related Parties (As certified by the management).

1) Associate Companies

1. Premier Consultant & Traders Limited

2) Key Management Personnel Including Relatives

a) Shri M O Shanbhag - Director

b) Shri Rajendra M Bolya - Director

B. Transactions with related parties



Nature of Transactions 2011-12 2010-11 (RS) (RS)

Loans, Advances and Deposits Received 996500 1153500





9. SEGMENT REPORTING

The Company Is operating in one segment only i.e. Textiles, but during the year there is no business conducted by the Company, hence no segment reporting is given.

10. There are no Micro, Small and Medium Enterprises, as provided under the Micro, Small and Medium Enterprises Development Act, 2006, to whom the company owes dues, which are outstanding for more than 45 days as at Balance Sheet date.

11. In view or the Losses during the year, the company does not have taxable Income, hence the Provision for current Income Tax has not been made.

12. The Revised Schedule VI has become effective from 1 April 2011 for the preparation of Financial Statements. This has significantly impacted the disclosures and presentation made In these Financial Statements. Previous year's figures have been regrouped / rearranged / reclassified wherever necessary to confirm with current year's classification / disclosure.


Mar 31, 2011

1a In pursuance of the order dated 24th September 2002 of Supreme Court, the company has been held liable for payment of Excise duty on its Finished product (Fur Fabrics). In pursuance of the said order the Central Excise Authorities has asked the company to pay amount of Rs 1,45,78,305/- towards Central Excise duty payable on the goods cleared by the company during the period from 20.10.1987 to 31.07.1990. The company has accordingly provided a sum of Rs 1,45,78,305/- towards Central excise duty liability in its accounts during the year ended 31st March 2003. the company has however not provided for interest on the demand of Rs 1,45,78,305/- from the date of the Order of the Hon'ble Supreme Court.

b. In pursuance of the order dated 30th November 2004 of Additional Commissioner, Central Excise, Mahad, the Company has been held liable for demand of BED, AED, and AD (T & T) under section 11 A of Central Excise Act, 1944 on its finished products Fur Fabrics. In persuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 1,60,29,381/- towards Central Excise Duty payable on goods cleared by Company during the period from sept 1996 to nov 2000 the company accordingly provided a sum of Rs 1,60,29,381/- towards Central Excise Duty liability in its account during the year ended 31st March 2005. The company has however not provided for interest on demand of Rs 1,60,29,381/- from the date of order.

c. In pursuance of the order dated 16th March 2005 of Assistant Commissioner, Central Excise, Mahad, the Company has been held liable for demand of short payments arising out of the finalisation of the provisional assessment of its finished products Fur Fabrics. In persuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 2,29,16,596/- towards Central Excise Duty payable on goods cleared by Company during the period from 24.03.1987 to 31.05.1994 the company accordingly provided a sum of Rs 2,29,16,596/- towards Central Excise Duty liability in its account during the year ended 31st March 2005.

d. In pursuance of the order dated 19th December, 2006 of The Commissioner, Central Excise (ADJ), Mumbai, the Company has been held liable for demand of duty under section 11 A (2) of Central Excise Act, 1944 for Rs 2,22,34,778/- and also penalty imposed of Rs 2,00,91,308/- u/s 11 AC and Rs 5,00,000/- under rule 209 of CER,1944 regarding its deemed export transactions under 100% EOU with GCU Ltd. During the period August 1996 to July 1998. Although the company has disputed the same and filed appeal against the same before the Appellate Tribunal u/s 35B of the Central Excise Act, the Company has provided for total amount of Duty and Penalty amounting to Rs 4,28,26,086/- towards Central Excise Duty liability in its accounts during the year ended 31st March 2007. The adjustments if any will be made in the books of accounts in the year as & when the appeal is decided.

2 In pursuance of the assessment proceedings before the Sales Tax officer, the company has received demand notices from Sales tax Office under the Bombay Sales Tax Act & Central Sales Tax Act in respect of the following financial years.

Although the company has disputed the same and filed appeal against the same before The Sales Tax Tribunal, Mumbai the company has provided for the total demand amount of Rs 18,24,980/- towards Sales Tax liability in its accounts during the year ended 31st March 2007. The adjustment if any will be made in the books of accounts in the year as and when the appeal is decided.

3.In the opinion of the Board of Directors the company except that there would be no liabilty of custom duty & other charges payable Rs 558.00 Lacs (Approx) on raw materials imported under Duty Exemption Scheme for non - fulfilment of Export obligation due to major fire in the factory premises of the company on 28th May 1993, hence no provsion for the same has been made in the books of account.

4 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realization in the ordinary course of business atleast equal to the amount stated in the balance sheet unless otherwise stated.

5 a Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 01/02/1997 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.

b Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 23.07.98 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.The company is therefore not in a position to ascertain the quantum of liability if any arising and therefore the same will be provided as and when demand is raised.

6 The Company's claim for Cash Compensatory Support (CCS) against its Deemed Exports was rejected by the concerned authorities of the Joint Chief Controller of Imports and Exports against which though a writ petition filed by the Company was admitted by the Bombay High Court, The Honourable Court in its judgement dated 12.03.2010 has given an order for a claim of Rs 3,14,621/- as against the CCS claim of Rs 7,74,786/- for the year ended 31.03.1992 with an interest of 6% thereon from the date of petition. The above claim has been received by the Company and the same has been accounted during the year hence now no CCS claim will be receivable.

7 Related Party Disclosures :

a. List of Related Parties (As certified by the management).

1) Related Parties

1. Premier Consultant & Traders Limited

8 There are no Micro, Small and Medium Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at Balance Sheet date..

9 In view of the Losses during the year, the company doesnot have taxable Income, hence the Provision for current Income Tax has not been made.

10 The figures have been rounded off to the nearest rupee.

11 Previous year's figures have been regrouped and rearranged wherever considered necessary.

12 Additional information pursuant to the paragraphs 3, 4(c) and 4(d) of Part I of Schedule VI of The Companies Act, 1956 are either NIL or not applicable to the company.


Mar 31, 2010

1 a In pursuance of the order dated 24th September 2002 of Supreme Court, the company has been held liable for payment of Excise duty on its Finished product (Fur Fabrics). In pursuance of the said order the Central Excise Authorities has asked the company to pay amount of Rs 1,45,78,305/- towards Central Excise duty payable on the goods cleared by the company during the period from 20.10.1987 to 31.07.1990. The company has accordingly provided a sum of Rs 1,45,78,305/- towards Central excise duty liability in its accounts during the year ended 31st March 2003. the company has however not provided for interest on the demand of Rs 1,45,78,305/- from the date of the Order of the Honble Supreme Court.

b In pursuance of the order dated 30th November 2004 of Additional Commissioner, Central Excise, Mahad, the Company has been held liable for demand of BED, AED. and AD (T & T) under section 11A of Central Excise Act, 1944 on its finished products Fur Fabrics. In persuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 1,60,29,381/- towards Central Excise Duty payable on goods cleared by Company during the period from sept 1996 to nov 2000 the company accordingly provided a sum of Rs 1,60,29,381/- towards Central Excise Duty liability in its account during the year ended 31st March 2005 The company has however not provided for interest on demand of Rs 1,60,29,381/- from the date of order.

c In pursuance of the order dated 16th March 2005 of Assistant Commissioner, Central Excise, Mahad, the Company has

been held liable for demand of short payments arising out of the finalisation of the provisional assessment of its finished products Fur Fabrics. In persuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 2,29,16,596/- towards Central Excise Duty payable on goods cleared by Company during the period from 24.03.1987 to 31.05.1994 the company accordingly provided a sum of Rs 2,29,16,596/- towards Central Excise Duty liability in its account during the year ended 31st March 2005.

d In pursuance of the order dated 19th December, 2006 of The Commissioner, Central Excise (ADJ), Mumbai, the Company has been held liable for demand of duty under section 11 A (2) of Central Excise Act, 1944 for Rs 2,22,34,778/- and also penalty imposed of Rs 2,00,91,308/- u/s 11 AC and Rs 5,00,000/- under rule 209 of CER.1944 regarding its deemed export transactions under 100% EOU with GCU Ltd. During the period August 1996 to July 1998. Although the company has disputed the same and filed appeal against the same before the Appellate Tribunal u/s 35B of the Central Excise Act, the aompany has provided for total amount of Duty and Penalty amounting to Rs 4,28,26,086/- towards Central Excise Duty liability in its accounts during the year ended 31st March 2007. The adjustments if any will be made in the books of accounts in the year as & when the appeal is decided.

Although the company has disputed the same and filed appeal against the same before The Sales Tax Tribunal, Mumbai the company has provided for the total demand amount of Rs 18,24,980/- towards Sales Tax liability in its accounts during the year ended 31st March 2007. The adjustment if any will be made in the books of accounts in the year as and when the appeal is decided.

2 In the opinion of the Board of Directors the company except that there would be no liabilty of custom duty & other charges payable Rs 558.00 Lacs (Approx) on raw materials imported under Duty Exemption Scheme for non - fulfilment of Export obligation due to major fire in the factory premises of the company on 28th May 1993, hence no provsion for the same has been made in the books of account.

3 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realization in the ordinary course of business atleast equal to the amount stated in the balance sheet unless otherwise stated.

4 a Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 01/02/1997 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available inofrmation and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.

b Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 23.07.98 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available inofrmation and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.The company is therefore not in a position to ascertain the quantum of liability if any arising and therefore the same will be provided as and when demand is raised.

5 The Companys claim for Cash Compensatory Support (CCS) against its Downed Exports was rejected by the concerned authorities of the Joint Chief Controller of Imports and Exports against which though a writ petition filed by the Company was admitted by the Bombay High Court, The Honourable Court in its judgement dated 12.03.2010 has given an order for a claim of Rs 3,14,621/- as against the CCS claim of Rs 7,74,786/- for the year ended 31.03.1992 with an interest of 6% thereon from the date of petition. But the above is still not been received by the Company and the same will be accounted for in the year of receipt.

6 Related Party, Disclosures;

a. List of Related Parties (As certified by the management).

1) Related Parties

1. Premier Consultant & Traders Limited

7 There are no Micro, Small and Medium Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at Balance Sheet date. Further, the Company has neither paid nor payable any interest to any Micro, Small and Medium Enterprises on the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

8 In view of the Losses during the year, the company doesnot have taxable Income, hence the Provision for current Income Tax has not been made.

9 The figures have been rounded off to the nearest rupee.

10 Previous years figures have been regrouped and rearranged wherever considered necessary.

11 Additional information pursuant to the paragraphs 3, 4(c) and 4(d) of Part of Schedule VI of The Companies Act, 1956 are either NIL or not applicable to the company.