Vishal Exports Overseas Ltd. के अकाउंट के लिये नोट

Sep 30, 2009

1. Previous years figures have been regrouped / recasted wherever necessary, to make them comparable with the figures of the current year.

2. Based on the income of Power Generation, the management has considered the enterprise as On Going concern.

3. The companys borrowings are designated as non performing assets and therefore no interest was provided in the books of the accounts from 1st of October 2006. Had this Interest been provided for the year under review , the same would have amounted to Rs. 5038.22 lacs (P.Y. Rs 4381.15 lacs), the loss for the period would have been higher by a similar amount and visa vise the liabilities would have been higher by an equivalent amount. The accumulated interest not provided since 1st October 2006 amounts to Rs. 12800.98 lacs.

4. The company being categorized as non-performing asset by the various banks and accordingly the said various banks, have sold the assets which were charged to them, under Securitization Act 2002. The said banks have not provided the details of the assets sold , sale consideration etc.. Accordingly the company has not recorded the sale of such assets in the books of account. Had these entries been passed in the books during the year under audit, the figure of profit/loss would have been reflected higher/lower in the accounts and the reserves and surplus would have been higher or lower by equivalent amount and the fixed assets of the company would have been lower by equivalent amount.

5. In continuation of above, the company has not been able to give effect to the deferred taxation due not non availability of accountable figures.

6. In some cases in absence of significant evidences, the reliance is placed on management estimates and perception.

7. Prior period Income / Expenses:

a. The prior period Income of Rs.3,11,50,785/- (P.Y. Nil) relates to claims for short generation of electricity power, in connection with the MOUs signed with the various vendors of Wind Turbine Generators.

b. The prior period expense of Rs.2,72,46,405/- (P.Y. Nil) relates to reversal of entry passed for shortage of generation of electricity power on account of settlement of account with one of the vendors of the company as per settlement order of the Jurisdiction Court.

8. During the period under review the company has written off debit/credit balances of Rs.312.96 lac (P.Y. Rs. 2506.19 lac). The management has stated in the Directors Report as to the reasons for the write off.

9. The Sundry Debtors and Loans & advances as shown in the Balance sheet are outstanding for a period of more than one year and we have relied on management explanation for its receipt in case of debtors and settlement in case of Loans & Advances.

10. The company had furnished bank guarantees of Rs. 36400.84 lacs (P.Y. Rs. 36400.84 lacs) towards advance against order to the foreign buyer. In turn the company had furnished Fixed Deposit of Rs.38547.18 lacs plus interest thereon (P.Y. 38547.18 lacs plus interest thereon ) with bankers for issuing the said bank guarantees. The export order is not executed and hence the bank guarantees are invoked by the buyer. As informed by the management, due to non compliance by the bankers as advised by the beneficiary, the bank guarantees was required to be invoked by the buyer and as a reultant effect there of, the foreign exchange fluctuation on the date of invocation was resulted but in the absence of the relevant details/advices from the concerned bank, the quantification was not possible hence company could not pass necessary entries in the books of accounts. Had these entries been passed in the books during the year under audit, the figure of profit/loss would have been reflected higher/lower in the accounts and the reserves and surplus or the current assets of the company would have been higher or lower by equivalent amount.

11. During the period the company has realized Rs.5.10 Lac (P.Y. Rs. 119.96 Lac) out of total export benefit of receivables of Rs. 22337.55 Lac. ( P.Y. Rs.22337.55 Lac).

12. The inter debit and credit balance adjusted among various parties are as per the mutual understanding of the company and the parties concerned. The same are subject to confirmation from the respective parties.

13. Due to non availability of proper advice from bank, payment received from Export debtors & short realization due to exchange rate has not been credited to respective parties. However the same is adjusted against the total debtors balance.

14. The company has not provided for gratuity and leave encashment and shall be accounted as and when it is paid.,

15. Loans and advances include Rs.290.37 Lac (P.Y. Rs.185.25 Lac) due from a company in which directors of the company are directors. Other than this there are no outstanding from individuals, firms and companies in which directors are interested.

16. In absence of adequate information, amounts due to small and ancillary undertakings, included in sundry creditors could not be identified and therefore not disclosed in the accounts.

17. In absence of confirmation from the parties, the balances appearing of the debtors, creditors, loans and advances given/taken are as per the books of accounts.

18. In the opinion of management, the income/expense, of prior periods, which has materialized during the year is accounted for.

19. Contingent liabilities not provided for in respect of:

(Rs. In Lacs) As at As at 30.09.2009 30.09.2008

(a) Claims against the Company not acknowledged as debts 251.75 251.75

(b) Disputed demands in respect of Income-tax for which appeals have 512.32 512.32 been Filed with ITAT/ Commissioner of Income-Tax (Appeals)

(c) Demands raised by Sales-tax Department for earlier years for which 77.27 77.27 appeals have been filed with Sales-tax Appellate Authorities

(d) Disputed Liability in respect of Custom and Excise. Amount Amount unascertainable unascertainable

(e) Corporate Guarantees given to:

(i) Group and Associate Companies 6244.00 6244.00 (Outstanding Liabilities as on 30.09.2009 Rs. 6244.00 lacs, P.Y. Rs. 6244.00 lacs )

(ii) Subsidiary Company NIL NIL (Outstanding Liabilities as on 30.09.2008 Rs. 0 lacs, P.Y. Rs. 0 lacs)

(f) Capital Commitments. NIL NIL

Estimated amount of Capital Contracts not Provided for ( Net of Advances)