Micro Forge (India) Ltd. के अकाउंट के लिये नोट

Mar 31, 2009

A] Sundry Debtors and Loans and Advances

In the opinion of the Board and to the best of their knowledge and belief the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and neither in excess nor short of amount reasonably necessary.

B] Inventories

Inventories are valued as under :

1) Raw materials : At cost

2) Finished Goods : At lower of cost or net realisable value

3) Scrap : Net realisable value

4) Work-in-process : Certified by the management

5) Stores : Certified by the management



C] Foreign Currency Transaction :

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the profit and loss account.

D] Excise Duty

1. i) Excise duty on goods manufactured and lying in factory premises are accounted as and when goods dispatched. ii) Sales are netoff of Duties and taxes iii) Purchase are netoff of duties and taxes which availed as credit

E]. Previous year figures have been regrouped or reclassified wherever necessary to correspond with the figures of current year.

F] During the year company has registered with BIFR (Board for Industrial & Financial Reconstruction) On dated 27.06.2008 bearing Case No. 28/2008

G] Bank Stated in the Financial Statment may very since non availability of Bank statement. Balance showing in financial statement has been arrived as per Statement available with the management.

H] Interest @ 12 % has been Provided on Outstanding Balance of Cash Credit and Term loan of State Bank of India aggregating to Rs. 3.23 Crores Shown as a Current Liabilities.

I] Contingent Liabilities

As per Explanation and Information Provided by the management contingent liabilities of Rs. 165 Crores given for Bank Guarantee, Disputed Income Tax Rs. 70 Lacs, Disputed Sales Tax Rs. 55 Lacs, Diputed Providend Fund Rs. 10 Lacs.

J] During the year State Bank of India has filed a suit against company for recovery of Term loan and Cash Credit.

K] Prior Period income Rs. 4.84 Lacs is of CENVAT credit not taken on Capital Goods Purchased during the Financial year 2007-08.