Sandur Laminates Ltd. के अकाउंट के लिये नोट

Mar 31, 2010

1. Contingent Liabilities

a) The Additional Assistant Commissioner of Entry Taxes, Hospet, has raised a demand towards Entry tax on Capital goods (relating to the issue of applicability of specific schemes) of Rs. 66.28 lakhs (previous year Rs. 66.28 lakhs). The Company had filed an appeal before the Joint Commissioner of Entry Taxes (Appeals), Davangere. The Companys Writ petition staying the collection of the demand has been dismissed by the High Court of Karnataka. On further appeal made by the Company, the High Court of Karnataka by its Order dated 6th December 1999 deferred the recovery of entry tax till the decision was taken by the government authorities on the Courts said order.

b) Central excise duty matters (relating to applicability of the concessional rate of duty) contested by the Company of Rs. 82.96 lakhs (previous year Rs. 82.96 lakhs), excluding consequential interest No further proceedings initiated by either party for a long time since the Company has been declared sick by BIFR.

In respect of the above, the outflows, if any, depend on the completion of such proceedings and the Companys right for future appeals before the judiciary. No reimbursements are expected.

2. During the current year, the Company has entered into a one time settlement for payment of dues with certain companies. However, the Company has not written back the dues representing the waiver agreed by the said companies pending approval of Draft Rehabilitation Scheme by the BIFR and as the settlement of the agreed amounts are not yet certain. Interest pertaining to the above claims and certain other advances of Rs. 3,649.42 lakhs (Previous year Rs. 3,064.92 lakhs), including Rs. 584.50 lakhs (Previous year Rs. 496.97 lakhs) for the current year has not been provided for.

3. There are no transactions and no balance due to/ from related parties in the current as well as in the previous year.

4. Segment Reporting

Primary Segment: The Company is in the process of implementation of the revival process making use of the existing assets. The Primary Segment would be crystallized on completion of the implementation of the revival process.

Secondary Segment: India is the only geographical segment, in which the Company has operated during the year.

In view of the above, the disclosure as required under Accounting Standard - 17 on "Segment Reporting" is not considered relevant.

5. In view of the expected implementation of the revival process as mentioned in note 1, which is expected to result in adequate cash flows; the Company has not considered providing for impairment of assets.

6. There are no micro enterprises and small enterprises to whom the Company owes dues which are outstanding as at the balance sheet date. The above information and that given under Current liabilities and Provisions (Schedule 7) regarding micro enterprises and small enterprises have 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.

7. Deferred tax assethas not been accounted as the Company is not virtually certain about accrual of sufficient future taxable income.

8. Previous years figures have been regrouped/recast, wherever necessary, to conform to current years classification.