Notes to Accounts of Shree Ganesh Forgings Ltd.

Mar 31, 2014

NOTE 1: COMPANY OVERVIEW

Shree Ganesh Forgings Limited was incorporated on September, 18, 1972. The company is involved in manufacturing of steel flanges. Company was a leading company in forging industry for nearly 15 to 20 years .But during the last 5 years company is on the decline due to financial problems.

2) Secured Loans:

During the period under review, interest accrued on secured loans has not been Accounted in the books since interest by the lender banks has not been charged in the Account consequent to the amount being declared as non-performing assets.

The company is presently under negotiation with the consortium for settling the outstanding dues.

3) Contingent Liabilities:

i) Interest on secured loans forthe period under review has not been debited by the banks and accordingly, not provided for, amount is not ascertainable as of date.

ii) The sales tax department has raised demand on the company which has been contested. In the opinion of the management, this amount will not be payble,therefore not Provided for.

4) The Income Tax Assessments of the company have been completed upto assessment Year ended 31st March, 2007.

5) Sales Tax Assessment has been completed upto the year ended 31st March, 2006.

6) The balances of Sundry debtors, Sundry creditors, advances and deposits are subject to Reconciliation, con- firmation and acceptance from the parties.

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Mar 31, 2013

1)COMPANY OVERVIEW

Shree Ganesh Forgings Limited was incorporated on September, 18, 1972. The company is involved in manufacturing of steel fanges. Company was a leading company in forging industry for nearly 15 to 20 years .But during the last 5 years company is on the decline due to fnancial problems.

The company is presently under negotiation with the consortium for settling the outstanding dues.

2) Contingent Liabilities:

i) Interest on secured loans for the period under review has not been debited by the banks and accordingly not provided for, amount is not ascertainable as of date.

ii) The sales tax department has raised demand on the company which has been contested. In the opinion of the management, this amount will not be payble,therefore not Provided for.

3) The Income Tax Assessments of the company have been completed upto assessment Year ended 31st March, 2007.

4) Sales Tax Assessment has been completed upto the year ended 31st March, 2006.

5) The balances of Sundry debtors, Sundry creditors, advances and deposits are subject to Reconciliation, con- frmation and acceptance from the parties.

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Mar 31, 2010

1. a) Contingent Liabilities :

Sr. no. Particulars 31.03.10 31.03.09 (Rs in

lacs)

1. On Letter Of Credit Opened by Banks nil 723.00

2. Margin Money given against l/c to be adjusted 156.05 357.27



b) The Company has issued guarantee in favor of HSBC Bank,UK, for an amount upto GBP 6,25,000 with respect to facilities availed by Geldbach (UK).

3. The Income Tax Assessments of the company have been completed up to the assessment year ended 31st March, 2007.

4. Sales Tax assessment has been completed up to the year ended 31st March, 2006.

5. The amount in respect of sundry debtors, creditors, advances and deposits are shown as appearing in the accounts and are subject to confi rmation and reconciliation from the parties.

6. Consolidated Financial Statement:

The Consolidated financial statements of the Company alongwith its subsidiaries are given separately in this Annual Report.

7. Previous years figures have been reworked/ regrouped/ rearranged and/or reclassifi ed wherever necessary.