Notes to Accounts of Thakkers Group Ltd.

Mar 31, 2024

11. Provisions, contingent liabilities and contingent assets

A provision is recognized if, as a result of a past event, the company has a present legal or constructive obligation
that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the
obligation.

Contingent liabilities are disclosed in respect of possible obligations that have risen from past events and the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the enterprise, or is a present obligation that arises from past events but is

not recognised because either it is not probable that an outflow of resources embodying economic benefits will be
required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

A contingent asset is generally neither recognised nor disclosed.

12. Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair
value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless
the asset does not generate cash inflows that are largely independent of those from other assets or Company’s of
assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
In determining fair value less costs of disposal, recent market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by
valuation multiples, quoted market prices or other available fair value indicators.

13. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand.

14. Related to Party Transaction

Related Party Disclosure as required under Indian Accounting Standard-24 on related party disclosure issued by the
Institute of Chartered

India, are given below :

Related parties where transactions have taken place during the year:

A) Key Managerial Personnel

a. Mrs. Karishma Gaurav Thakker - CEO

b. Mr. Khushal Chetan Batavia - CFO

c. Mr. Lait Avinash Bhanu - Company Secretary (Resign w.e.f. 10.05.2024)

B) Entities in which directors & their relatives are interested & KMPs relatives

a. Thakkers Developers Ltd - Father of Gaurav Thakker , Director is director in company

b. Thakker Housing Development Private Ltd. - Father of Director Gaurav Thakker, is director in company

c. Mr. Jitendra Thakker - Gaurav Thakker - Director’s Father

d. Dhananjay Marketing Private Ltd. -Gaurav Thakker is director in company

e. Thakker Apna Ghar Private Ltd. - Gaurav Thakker is director in company

f. Thakkers Gruha Nirman Private Ltd. - Father of Gaurav Thakker , Director is director in company

20. Dues to Micro, Small and Medium Sized Enterprises :

Based on the information and records available with the management, there are no dues outstanding to micro and
small enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 as at 31^st March,
2023 and as at 31 March, 2024.

21. Previous Year Figures are rearranged or regrouped wherever necessary.

22. There is no revaluation of company''s Property, Plant and Equipment as on 31.03.2024 and 31.03.2023.

23. Intangible assets under development are nil as on 31.03.2024 and 31.03.2023.

24. There is no Benami property held as on 31.03.2024 and 31.03.2023.

25. The company is not declared as wilful defaulter by any authority.

26. As per information provided to us, the company does not have any transactions with companies struck off u/s
248 or 560 of the Companies Act, 2013.

27. The company has not provided for Gratuity during the year.

28. Section 2(87) of Companies Act, 2013 is not applicable to this company.

29. Compliance with approved scheme of arrangements u/s 230 to 237 of Companies Act, 2013 is not
applicable to this company.

30. There are no loans/funds advanced to any Intermediaries or funds to be received from Funding Parties.

31. The Company has no borrowings from banks or financial institutions on the basis of security of current assets as
on 31st March, 2024.

32. The company has not declared/proposed any interim and final dividend for the year and previous financial year.

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Mar 31, 2000

The Company does not call for conformation of unsecured loan, debtors and creditors. The balance at the 31st March, 2000 have been scrutanised by the management and certified as correct and recoverable/payable.

Assessments under the sales tax laws have been completed upto 31st March, 1996.

The Company taken a loan Rs.5,00,000 from SICOM against the guarantee of an Insurance company Rs.5,00,000 were paid by the Insurance Company to SICOM on 10th February 1978.

The Company, its five ex-directors and one ex-share holder had issued a counter guarantee in favour of the Insurance company. The company has created a negative lien on the fixed assets.

The Insurance company has filed two suits for recovery of Rs.5,19,556.

Provision for interest on the suit amount has been made as per the terms of the plant.

Sundry Creditors include amounts due for more than three years Rs.6,937/-.

A Creditor has filed suit for recover of Rs.56,473/- which includes Rs.34,386/- for supplies and Rs.22,087/- for interest.

Since the company is disputing the claim for interest of Rs.22,087/- no provision has therefore been made.

The Company has paid Rs.47,253/- and has appealed for waiver of damage charged in the notice for Rs.23,307/- No provisions has therefore been made for damages.

Land admeasuring 67,708 square meters has been taken of lease of 95 years from the Maharashtra Industrial Development Corporation.

possession of 33,320 Sq, meteres was taken in September 1968 and relevant lease deed execution in January 1968. Rs.41,800 was paid on 3rd September, 1981 converting the rental lease to premium lease.

Out of the balance 34,320 square meters taken possession in May 1969, lease deed for plot 18 portion 1 admeasuring 17,180 square meters has been duly executed.

The possession of balance 17,140 square meters of Plot 18 portion II was given on 24th September 1981 under an agreement of lease subject to completion of construction of factory building before 24th September 1983 failing which whole or part of premium is liable to be forfeited. Pending completion of construction of factory building lease deed has not been executed. No provision has been made for forfeiture, if any that may arise.

Land held by Maharashtra Industrial Development Corporation has been expressly exempted from the provision or Urban land (Ceiling Regulation) Act, 1976 but the persons in occupation of the Corporation land are not exempt from the preview of the said Act. The Company has filed a questionnaires with the Technical Adviser of the Corporation pursuant to Circular N.LCA-1976/6312/DCM/8706 dated 22nd April, 1976 issued by the Corporation in 12th August, 1976 to recommend the Company's case for exemption under section 20 of the said Act, Provisions have not been made for loss in case of any part of the land is acquired.

National Saving Certificate of the face value of Rs.1,000/- has been lodged with the excise authorities against the Bond of Rs.1,00,000/- this certificate has matured on 10.6.90 and the proceeds are awaited.

Estimated amount of contracts remaining to be executed on capital account of advance not Provided Rs.18,89282/-.

No provision has been made for taxes in view of loss and depreciation of the earlier years.

Fixed Assets records for assets acquired after 1.4.1976 showing quantitative details and situations has been compiled. Fixed Assets other than fixtures, electrical fittings and installations were verified at the year end. Discrepancy, if any could not be verified in the absence of complete fixed assets records.

Purchase of fixed assets, raw materials, stores and spares is controlled by a Director.

Previous years figures have been regrouped wherever necessary to make them comparable with those of the current year.

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Mar 31, 1999

1.1 Following are accounted on cash basis owing to immateriality or uncertainity :-

1. Legal Expenses

2. Commission

3. Leave wages

1.2 Prepaid expenses are adjusted.

1.3 Other liabilities represent amounts due to the authorities for statutory payment and deductions.

1.4 Sales tax is paid on the basis of returns filed.- No provision is made for liability, if any on assessment as the same cannot be ascertained.

1.5 In the opinion of the Board, the current assets, loan and advances are approximately for the value states. If realised in the ordinary course of business. Provisions for all known liabilities except those mentioned in para 7.2, 8.4 and 8.5 here of is adequate and not in excess of amount consider necessary. No personal expenses have been charged to revenue account.

1.6 Inventory of stores at year end was physically verified by the Management.

1.7 Stock of stores and spares has been valued at the cost wherever details are available. In case of old stores and spares where cost and quantity tally is not available, the same have been valued at estimated cost or assigned normal value. The management has reviewed theses inventories and same are considered usable.

2.0 The Company does not call for confirmation of unsecured loan, debtors and creditors. The balance as at 31st March, 1998 have been scrutinised by the management and certified as correct and recoverable payable.

2.1 Assessments under the sales tax laws have been completed upto 31st March, 1996.

2.2 The company had taken a loan of Rs. 5,00.000 from SICOM against the guarantee of an insurance Company Rs. 5,00,000 were paid by the Insurance Company to SICOM on 10th February, 1978.

2.3 The company, its five ex-directors and one ex-share holder had issued a counter guarantee in favour of the Insurance company. The company has created a negative lien on the fixed assets.

2.4 The Insurance company has filed two suits for recovery of Rs. 5,19,556.

2.5 Provision for interest on the suit amount has been made as per the terms of the plaint.

2.6 Sundry Creditors include amounts due for more than three years Rs. 6,937/-.

3.1 A Creditor has filed suit for recover of Rs. 56,473/- which includes Rs. 34,386/- for supplies and Rs. 22,087/- for interest.

3.2 Since the company is disputing the claim for interest of Rs. 22,087/- no provision has therefore been made.

3.3 The Company has during the earlier years, received notice from Employees State Insurance Authorities the final notice of Rs. 70,560/- which was received during the year ended 31st March, 1992.

3.4 The Company has paid Rs. 47,253/- and has appealed for waiver of damage charged in the notice for Rs. 23,307/- No provisions has therefore been made for damages.

3.5 Land admeasuring 67,708 square meters has been taken on lease of 95 years from the Maharashtra Industrial Development Corporation.

3.6 Possession of 33,320 Sq. meters was taken in September 1968 and relevant lease deed execution in January 1968. Rs. 41,800/- was, paid on 3rd September, 1981 converting the rental lease to premium lease.

3.7 Out of the balance 34,320/- square meters taken possession in May 1969, lease deed for plot 18 portion 1 adeasuring 17,180 square meters has been duly executed.

3.8 The possession of balance 17,140 square meters of plot 18 portion II was given on 24th September 1981 under an agreement of lease subject to completion of construction of factory building before 24th September 1983 failing which whole or part of the premium is liable to be forfeited. Pending completion of construction of factory building lease deed has not been executed. No provision has been made for forfeiture, if any that may arise.

3.9 Land held by Maharashtra Industrial Development Corporation has been expressly exempted from the provision or Urban Land (Ceiling Regulation) Act, 1976 but the persons in occupation of the Corporation land are not exempt from the preview of the said Act. The Company has filed a questionnaire with the Technical Adviser of the Corporation pursuant to Circular No. LCA 1976/6312/DCM/8706 dated 22nd April, 1976 issued by the Corporation on 12th August, 1976 to recommend the Company's case for exemption under section 20 of the said Act, Provisions have not been made for loss in case of any part of the land is acquired.

4.1 National Saving Certificate of the face value of Rs. 1000/- has been lodged with the excise authorities against the Bond of Rs. 1,00,000/- This certificate has matured on 10.6.90 and the proceeds are awaited.

4.2 Estimated amount of contracts remaining to be executed on capital account net of advance not Provided Rs. 18,89,282/-.

4.3 No provision has been made for taxes in view of loss and depreciation of the earlier years.

4.4 Fixed Asset records for assets acquired after 1.4.1976 showing quantitative details and situations has been compiled. Fixed Assets other than fixtures, electrical fittings and installations were verified at the year end. Discrepancy, if any could not be verified in the absence of complete fixed assets records.

4.5. Purchase of fixed assets, raw materials, stores and spares is controlled by a Director.

4.6 Previous years fires have been regrouped wherever necessary to make them comparable with those of the current year.

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Mar 31, 1998

1. In the opinion of the Board, the current assets, loans and advances are approximately for the value stated, if realised in the ordinary course of business. Provisions for all known liabilities except those mentioned in para 7.2, 8.4 and 8.5 here of is adequate and not in excess of amount considered necessary. No personal expenses have been charged to revenue accounts.

2.1 Inventory of stores at year end was physically verified by the Management.

2.2 Stock of stores and spares has been valued at cost wherever details are available. In case of old stores and spares where cost and quantity tally is not available, the same have been valued at estimated cost or assigned nominal value. The management has reviewed theses inventories and same are considered useable.

3. The Company does not call for confirmation of unsecured loans, debtors and creditors, The balance as at 31st March, 1997 have been scrutinised by the management and certified as correct and recoverable payable.

4. Assessments under the sales tax laws have been completed upto 31st March, 1996.

5.1 The Company had taken a loan of Rs. 5,00,000 from SICOM against the guarantee of an Insurance Company Rs. 5,00,000 were paid by the Insurance Company to SICOM on 10th February 1978.

5.2 The Company, its five ex-directors and one ex-share holder had issued a counter guarantee in favour of the Insurance company. The company has created a negative lien on the fixed assets.

5.3 The Insurance company has filed two suits for recovery of Rs. 5,19,556

5.4 Provision for interest on the suit amount has been made as per the terms of the plant.

6.1 Sundry Creditors include amounts due for more than three years Rs. 6,937/-

6.2 A Creditor has filed suit for recovery of Rs. 56,473/- which includes Rs. 34,386/- for supplies and Rs. 22,087/- for interest.

6.3 Since the company is disputing the claim for interest of Rs. 22,087/- no provision has therefore been made.

6.4 1 The Company has during the earlier years, receive notices from Employees State Insurance Authorities the final notice of Rs. 70,560/- which was received during the year ended 31st March, 1992.

6.4 2 The Company has paid Rs. 47,253/- and has appealed for waiver of damages charged in the notice for Rs. 23,307/- No provision has therefore been made for damages.

7.1 Land admeasuring 7,708 square meters has been taken on lease of 95 years from the Maharashtra Industrial Development Corporation.

7.2 Possession of 33,320 square meters was taken in September, 1968 and relevant lease deed execution in January 1968. Rs. 41,800/-was paid on 3rd September, 1981 converting the rental lease to premium lease.

7.3 Out of the balance 34, 320 square meters taken possession in May 1969, lease deed for Plot 18-portion 1 admeasuring 17,180 square meters has been duly executed.

7.4 The possession of balance 17,140 square meters of Plot 18-portion II was given on 24th September, 1981 under an agreement of lease subject to completion of construction of factory building before 24th September 1983 failing which whole or part of the premium is liable to be forfeited. Pending completion of construction of factory building lease deed has not been executed. No provision has been made for forfeiture, if any that may arise.

7.5 Land held by Maharashtra Industrial Development Corporation has been expressly exempted from the provision of Urban Land (Ceiling Regulation) Act, 1976 but the persons in occupation of the Corporation land are not exempt from the preview of the said Act, The Company has filed a questionnaire with the Technical Adviser of the Corporation pursuant to Circular No LCA-1976/6312/DCM/8706 dated 22nd April, 1976 issued by the Corporation on 12th August, 1976 to recommend the Companys case for exemption under section 20 of the said Act, Provisions have not been made for loss in case of any part of the land is acquired.

8. National Saving Certificate of the face value of Rs. 1,000/- has been lodged with the excise authorities against the Bond of Rs. 1,00,000/- This certificate has matured on 10.6.90 and the process are awaited.

9. No provision has been made for taxes in view of loss and depreciation of the earlier years.

10. Fixed Asset records for assets acquired after 1.4.1976 showing quantitative details and situations has been compiled. Fixed Assets other than fixtures, electrical fittings and installations were verified at the year end. Discrepancy, if any, could not be verified in the absence of complete fixed assets records.

11. Purchase of fixed assets, raw materials, stores and spares is controlled by a Director,

12. Previous years figures have been regrouped wherever necessary to make them comparable with those of the current year.

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Mar 31, 1997

1. In the opinion of the Board, the current assets, loans and advances are approximately for the value stated, if realised in the ordinary course of business. Provisions for all known liabilities except those mentioned in para 7.2, 8.4 and 8.5 here of is adequate and not in excess of amount considered necessary. No personal expenses have been charged to revenue accounts.

2.1 Inventory of stores at year end was physically verified by the Management.

2.2 Stock of stores and spares has been valued at cost wherever details are available. In case of old stores and spares where cost and quantity tally is not available, the same have been valued at estimated cost or assigned nominal value. The management has reviewed meses inventories and same are considered useable.

3. The Company does not call for confirmation of unsecured loans, debtors and creditors, The balance as at 31st March, 1997 have been scrutinised by the management and certified as correct and recoverable payable.

4. Assessments under the sales tax laws have been completed upto 31st March, 1996.

5.1 The Company had taken a loan of Rs. 5,00,000 from SICOM against the guarantee of an Insurance Company Rs. 5,00,000 were paid by the Insurance Company to SICOM on 10th February 1978.

5.2 The Company, its five ex-directors and one ex-share holder had issued a counter guarantee in favour of the Insurance company. The company has created a negative lien on the fixed assets.

5.3 The Insurance company has filed two suits for recovery of Rs. 5,19,556

5.4 Provision for interest on the suit amount has been made as per the terms of the plant.

6.1 Sundry Creditors include amounts due for more than three years Rs. 6,937/-

6.2 A Creditor has filed suit for recovery of Rs. 56,473/- which includes Rs. 34,386/- for supplies and Rs. 22,087/- for interest.

6.3 Since the company is disputing the claim for interest of Rs. 22,087/- no provision has therefore been made.

6.41 The Company has during the earlier years, receive notices from Employees State Insurance Authorities the final notice of Rs. 70,560/- which was received during the year ended 31st March, 1992.

6.42 The Company has paid Rs. 47,253/- and has appealed for waiver of damages charged in the notice for Rs. 23,307/- No provision has therefore been made for damages.

7.1 Land admeasuring 67,708 square meters has been taken on lease of 95 years from the Maharashtra Industrial Development Corporation.

7.2 Possession of 33,388 square meters was taken in September, 1968 and relevant lease deed execution in January 1968. Rs. 41,800/- was paid on 3rd September, 1981 converting the rental lease to premium lease.

7.3 Out of the balance 34,320 square meters taken possession in May 1969, lease deed for Plot 18-portion 1 17,180 square meters has been duly executed.

7.4 The possession of balance 17,140 square meters of Plot 18-portion II was given on 24th September, 1981 under an agreement of lease subject to completion of construction of factory building before 24th September 1983 failling which whole or part of the premium is liable to be forfeited. Pending completion of construction of factory building lease deed has not been executed. No provision has been made for forfeiture, if any that may arise.

7.5 Land held by Maharashtra Industrial Development Corporation has been expressly exempted from the provision of Urban Land (Ceiling Regulation) Act, 1976 but the persons in occupation of the Corporation land are not exempt from the preview of the said Act, The Company has filed a questionnaire with the Technical Adviser of the Corporation pursuant to Circular No. LCA-1976/6312/DCM/8706 dated 22nd April, 1976 issued by the Corporation on 12th August, 1976 to recommend the Company's case for exemption under section 20 of the said Act, Provisions have not been made for loss in case of any part of the land is acquired.

8. National Saving Certificate of the face value of Rs. 1,000/- has been lodged with the excise authorities against the Bond of Rs. 1,00,000/- This certificate has matured on 10.6.90 and the process are awaited.

9. Estimated amount of contracts remaining to be executed on capital account net of advance not Provided Rs. 18,89,282/-

10. No provision has been made for taxes in view of loss and depreciation of the earlier years.

11. Fixed asset records for assets acquired after 1.4.1976 showing quantitative details and situations has been compiled. Fixed assets other than fixtures, electrical fittings and installations were verified at the year end. Discrepancy, if any, could not be verified in the absence of complete fixed assets records.

12. Purchase of fixed assets, raw materials, stores and spares is controlled by a Director.

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Mar 31, 1994

1.7 Sales tax is paid on the basis of returns field. No provision is made for liability, if any, on assessment as the same cannot be ascertained.

2.1 In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business. Provisions for all known liabilities except those mentioned in para 7.2, 8.4 and 8.5 hereof is adequate and not in excess of amount considered necessary. No personal expenses have been charged to revenue accounts.

2.2 The Company had made an application to Board for Industrial and Financial Reconstruction under section 15 of Sick Industrial Companies (Special Provisions) Act. 1985. Board vide their Order No: 3(A-21)/BC/88 dated 30th March 1989 has informed the company that if is not a Sick Industrial Company as defined in Section 3(1)(0) of the Sick Industrial Companies (Special Provisions) Act, 1985.

3.1 Inventory of stores at year end was physically verified by the Management.

3.2 Stock of stores and spares has been valued at cost wherever details are available. In case of old stores and spares, where cost and quantity tally is not available, the same have been value at estimated cost or assigned nominal value. No stock records are maintained due to smallness of operations. The Management has reviewed these inventories and same are considered useable.

4. The Company does not call for confirmation of unsecured loans, debtors and creditors. The balance as at 31st March., 1994 have been scruitinised by the management and certified as correct and recoverable/payable.

5. Assessments under the sales tax laws have been completed upto 31st March., 1990.

6.1 The Company had taken a loan of Rs. 5,00,000 from SICOM against the guarantee of an insurance company. Rs. 5,00,000 were paid by the insurance company to SICOM on 10th February, 1978.

6.2 The Company, its five ex-directors and one ex-share holder had issued a counter guarantee in favour of the insurance company. The company had agreed to create a second charge on the fixed assets. Pending the execution of the second charge, the company has created a negative lien on the fixed assets.

6.3 The insurance company has filed two suits for recovery of Rs. 5,19,556.

6.4 Provision for interest on the suit amount has been made as per the terms of the plaint.

7.1 Sundry Creditors include amounts due for more than three years Rs. 6,937 (Rs. 6,937).

7.2 A Creditor has filed suit for recovery of Rs. 56,473 (Rs. 56,473) which includes Rs. 34,386 for supplies and Rs. 22,087 for interest.

7.3 Since the company is disputing the claim for interest of Rs. 22,087 no provision has therefore been made.

7.4.1 The company has during the earlier years, received notices from Employees State Insurance Authorities the final notice of Rs. 70,560 which was received during the year ended 31st March 1992.

7.4.2. The company has paid Rs. 47,253 and has appealed for waiver of damages charged in the notice for Rs. 23,307. No provision has therefore been made for damages.

8.1 Land admeasuring 67,708 square meters has been taken on lease of 95 years from the maharashtra Industrial Development Corporation.

8.2 Possession of 33,388 square meters was taken in September 1968 and relevant lease deed executed in January 1969. Rs. 41,800 was paid on 3rd September 1981 converting the rental lease to premium lease.

8.3 Out of the balance 34,320 square meters taken possession in May 1969, Lease deed for Plot 18-portion 1 admeasuring 17,180 square meters has been duly executed.

8.4 The possession of balance 17,140 square meters of Plot 18 portion II was given on 24th September, 1981 under an agreement of lease subject to completion of construction of factory building before 24th September 1983 failing which whole or part of the premium is liable to be forefeited. Pending completion of construction of factory building lease deed has not been executed. No provision has been made for forfeiture, if any, that may arise.

8.5 Land held by Maharashtra Industrial Development Corporation has been expressly exempted from the provision of Urban Land (Ceiling Regulation) Act, 1976 but the persons in occupation of the corporation's land are not exempt from the preview of the said Act. The Company has filed a questionaire with the Technical Adviser of the Corporation pursuant to circular no. LCA-1976/6312/DCM/8706 Dated 22nd April 1976 to recommend the Company's case for exemption under section 20 of the said Act. Provisions have not been made for loss in case of any part of the land is acquired.

9. National Saving Certificates of the face value of Rs. 1,000/- has been lodged with the excise authorities against the Bond of Rs. 1,00,000. This certificate has matured on 10.6.90 and the proceeds are awaited.

10. Estimated amount of contracts remaining to be executed on capital account net of advances not provided Rs. 18,89,282/- (1,78,787).

11. No provision has been made for taxes in view of loss and depreciation for the earlier years and for the year.

12. The Secretary of the Company resigned on 31st December, 1976. Though the paid-up capital of the Company is more than Rs. 25,00,000/- there is deficit of Rs. 1,68,50,991/-. Hence the effective capital of the Company is negative. Moreover, in the opinion of the Directors, in view of the losses and smallness of operations a secretary is neither required not can the Company afford to incur the expense at present.

13.1 Fixed asset records for assets acquired after 1/4/1976 showing quantitative details and situation have been compiled. Fixed assets other than fixtures, electrical fittings and installations wee verified at the year end. Discrepancy, if any, could not be verified in the absence of complete fixed assets records.

13.2 Internal audit was discontinued in 1986-87 because of smallness of operations.

13.3 No system of allocating stores and labour to processing jobs has been introduced due to smallness of operations.

14. Purchase of fixed assets, raw materials, stores and spares is controlled by a Director.

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Mar 31, 1990

In the opinion of the Board, the current assets, loans and advances are approximately of valued stated, if realised in the ordinary course of business Provision for all known liabilities except those mentioned in para 8.4 and 8.5 hereof is adeuqate and not in excess of amount considered necessary No personal expenses have been charged to revenue accounts.

Closing Stock is as per inventories taken, vlaued and certified by the management. The stocks have been valued as under :-

Raw Material - at cost

Finished goods - at lower of cost and net realisable value.

Stores and spares - at cost - Refer Note 3.4

Packing Materials - at cost

Inventory at your end was physically verified by the management. The stock of finished goods is as per excise records.

Inventory of tools is taken at year end and is valued at by writing off one third of the balance on the `tools' account.

Stock of stores, spares and packing materials has been valued wherever details are available at cost. In case of old stores and spares, where cost and quantity tally is not available, the same have been valued at estimated cost or given nominal value. No stock records maintained due to smallness of operations.

Other liabilities represent amounts due to the authorities for statutory payment and deductions.

The Company does not call for confirmation of unsecured loans, debtors and creditors. The balance as at 31st March, 1990 have been scrutinized by the management and certified as correct and recoverable/payable.

Sales tax is paid on the basis of returns filed. No provision is made for liability, if any on assessment as the same cannot be ascertained. Assessments under the Sales Tax law have been completed upto 31st March, 1988.

The Company had taken a loan of Rs.500,000/- form SICOM against the guarantee of an insurance Company, Rs.500,000/- were paid by the insurance company to SICOM on 10th February, 1978.

The Company, its five ex-directors and one ex-share holder had issued a counter guarantee in favour of the insurance company. The Company had agreed to create a second charge on the fixed assets. Pending the execution of the second charge, the Company has created a negative lien on the fixed assets.

The insurance company has filed two suits for recovery of Rs.519,556/-.

Sundry Creditors include amounts due for more than three years Rs.595,912/- (Rs.579,770/-)

Two Ceditors have filed suits for recovery of Rs.65,406/- (Rs.65,406/-) which includes Rs.40,160/- for supplies and Rs.25,246/- for interest. No provision has been made for interest and amounts disputed Rs.162,826/- (Rs.162,826) is exhibited as contingent liability.

The Company has during the earlier years received notices from Employees State Insurance Authorities claiming Rs.94,673/-. The Company is disputing the claim and the said claim has been exhibited as a contingent liabilty.

Possession of 33,388 square metres was taken in September, 1968 and relevant lease deed executed in January 1969. Rs.41,800 was paid on 3rd September, 1981 converting the rental lease to premium lease.

Out of the balance 34,320 square metres taken possession in May 1969, lease deed for Plot 18 - portion 1 admeasuring 17,810 square metres has been duly executed.

The Possession of balance 17,140 square metres of plot 18 - portion II was given on 24th September 1981 under a agreement of lease subject to completion of construction of factory building before 24th September, 1983 failing which whole or part of the premium is liable to be forfeited. Pending completion of construction of factory building lease deed has not been executed. No provision has been made for forfeiture, if any, that may arise.

Land held by Maharashtra Industrial Development Corporation has been expressly exempted from the provision of Urban Land (Ceiling Regulation) Act, 1976 but the persons in occupation of the corporation's land are not exempt from the purview of the said Act. The Company has filed a questonaire with the Technical Adviser of the Corporation pursuant to circular No.LCA-1976/6312/DCM/8706 dated 22nd April 1976 issued by the Corporation on 12th August, 1976 to recommend the Company's case for exemption under section 20 of the said Act. The Company is yet to take steps to file the returns under section 6 and under seciton 20 of the said Act. Provisons has not been made for loss in case of any part of the land is acquired.

National Saving Certificate of the face vlaue of Rs.1,000 has been lodged with the excise authorities against the Bond of Rs.100,000/-. It has been confirmed by the excise authorities.

No provison has been made for taxes in view of loss and depreciation for the earlier years and for the year.

The Secretary of the Company resigned on 31st December, 1976. Though the paid-up capital of the Company is more than Rs.2,500,000/- there is deficit of Rs.14,836,654/-. Hence the effective capital of the Company is negative. Moreover, in the opinion of the Directors, in view of the losses and smallness of operations a secretary is neither required nor can the Company afford to incur the expenses at present.

Fixed Assets records for assets acquired after 1.4.1976 showing quantitative details and situation have been compiled. Fixed assets other than fixtures, electrical fittings and installations were verified during the year. Discrepancy, in any, could not be verified in the absence of complete fixed assets records.

Internal audit was discontinued in 1986-87 because of smallness of operations.

No system of allocating store and labour to processing jobs has been introduced due to smallness of operations.

Purchase of fixed assets, raw materials, stores and spares is controlled by a Director.