Volga Air Technics Ltd. के अकाउंट के लिये नोट

Mar 31, 2013

1. Figures are regrouped / rearranged wherever they are necessary.

2. During the year, due to carried forward loss, Company has not provided taxation in the Books of Accounts including deferred tax liability as the Company does not estimate any such liability in the near future.

3. The Company has revalued its Land & Building of both the Units at Changodar, Tal Sanand Dist. Ahmedabad effective 27.03.1998 on the basis of the Valuation Report from the Approved Valuer Shri B R Rami, Ahmedabad on the basis of then prevailing market rates of Land & Building on revaluation. The following revalued amounts were substituted for the historical cost in the gross block of Fixed Assets.

4. Business Segment

The Company has suspended business activities and hence no business segment.

5. Related Party Disclosures.

(i)The Company neither have Holding, Subsidiary or fellow subsidiary Company nor it is a holding, subsidiary or fellow Company.

i) There is no Related Party transaction during the year 2012-13:

6. No Managerial Remuneration is paid during the year previous year (NIL)

7. Contingent Liabilities not provided for in the books of accounts are under:

(i) The Company has a various matter for different years and pending with different forum of sales tax authority. Total demand of ^. 96.598 lacs for which the appeals are * ending with various forum of Sales Tax department, details of which are given below:

For these years appeals are pending .The Company has made provision for assessed sales tax. However no provision for interest & penalty is made since the company shall make application to BiFR (Since Company is already registered with BIFR.Jfor relief from payment of Interest & Penalty. Company has applied to Govt, of Gujarat as per G.R. No. BFR/(HPC)/102009/435690/P dtd. 15.7.2010 for reliefs such as waiver of interest and penalty

(b) The PF authorities levied damages ?.562444 & penal interest ^.56769 for delayed payment of PF for the period from March 2002 to July 2003. However, the Company has approached the higher authorities for waiver of damages as was done in the past. Hence, no provision is made for the same.

8. There is no amount due to Small scale Industrial undertakings/units.

9. Certain Unclaimed credit balances & unrecoverable amounts from customers with whom settlement has been made by the Company for lesser payment or which in the opinion of the management is not payable or non-recoverable outstanding Debit balance i.e. (Debit/Credit Balances) are written off during the year and net amount is treated as expense/income during the year.

10. Financial data as on 31st March 2013

11. The financial data for further information are given above. The Company has incurred cash loss during the current year. Moreover Company has suspended production from 22.11.2009 & has relieved afl the staff members from 28.2.2010. On the basis of these facts and based on Accounting Standard issued by ICAI in our opinion the Company is not "Going Concern". However accounts are prepared on "Going Concern" basis on the basis of legal opinion obtained by CowrSenifcx

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Mar 31, 2012

1. Figures are regrouped / rearranged wherever they are necessary.

2. During the year, due to carried forward loss, Company has not provided taxation in the Books of Accounts including deferred tax liability as the Company does not estimate any such liability in the near future.

3. The Company has revalued its Land & Building of both the Units at Changodar, Tal Sanand Dist. Ahmedabad effective 27.03.1998 on the basis of the Valuation Report from the Approved Valuer Shri B R Rami, Ahmedabad on the basis of prevailing market rates of Land & Building on revaluation. The following revalued amounts were substituted for the historical cost in the gross block of Fixed Assets.

4. Business Segment

The Company has suspended business activities and hence no business segment.

5. Related Party Disclosures.

(i)The Company neither have Holding, Subsidiary or fellow subsidiary Company nor it is a holding, subsidiary or fellow Company.

(ii)Other related party with whom no transactions have taken place during the year

6. No Managerial Remuneration is paid during the year previous year (NIL)

7. Contingent Liabilities not provided for in the books of accounts are under:

(i) The Company has a various matter for different years and pending with different forum of sales tax authority. Total demand of Rs. 965.97 lacs for which the apprals are pending at various forum of sales tax department as details given below:

For these years appeals are pending .The Company has made provision for assessed sales tax. How ever no provision for interest & penalty is made since the company shall make application to BIFR (Since Company is already registered with BIFR.)for relief from payment of Interest & Penalty. Company have applied to Govt. of Gujarat as per G.R.BFR/(HPC)/102009/435690/P dtd. 15.7.2010.

b) The PF authorities has levied damages Rs. 562444 & penal interest Rs. 56769 for delayed payment of PF for the period from March 2002 to July 2003. However, the Company has approached the higher authorities for waiver shifted of damages as was done in the past no provision is made for the same.

The Company's transformer is required to be sifted from the place where it is at present as the side adjoing primises was sold by operating Agency as per guidelines of BIFR in 2006. the estimated cost for shifting will be approx Rs. 5 lacs. No Provision has been made.

8.There is no amount due to Small scale Industrial undertakings/units.

9. Certain Unclaimed credit balances & unrecoverable amounts from customers which are compromised by the Company for lesser payment or which in the opinion of the management not payable & non-recoverable outstanding Debit balance i.e. (Debit/Credit Balances) are written off during the year and net amount is treated as expense/income during the year.

10. The Financial data for further information are given above. The Company has incurred cash loss during the current year. Moreover Company has suspended production from 22.11.2009 & relieved all the staff members from 28.2.2010. On the basis of these facts and based on Accounting Standard issued by ICAI in our opinion the Company is not "Going Concern". However accounts are prepared on "Going Concern" basis on the basis of legal opinion obtained by Company.

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Mar 31, 2010

1. Figures are regrouped / rearranged wherever they are necessary.

2. During the year, due to carried forward loss, Company has not provided taxation in the Books of Accounts including deferred tax liability as the Company does not estimate any such liability in the near future.

3. The Company has revalued its Land & Building of both the Units at Changodar, Tal Sanand Dist. Ahmedabad effective 27.03.1998 on the basis of the Valuation Report from the Approved Valuer Shri B R Rami, Ahmedabad on the basis of prevailing market rates of Land & Building on evaluation. The following revalued amounts were substituted for the historical cost in the gross block of Fixed Assets.

Land Rs 2,53,18,467 Building Rs.5,05,33,487

The Revaluation pertaining to assets which were sold during year 2006-2007 was reversed. The balance amount are as under.(Revaluation with cost.)

Land Rs 44,94,667 Building Rs.2,10,87,704

4. Business Segment

(a)The Company is doing job work of sheet-metal components There is a negligible production of fan & blower blades, & there is substantial sales of Water Cooler which is considered by management as single segment.

(b)lt is also manufacturing the sheet-metal Components Sales Rs11737212/-

(c) During the year Company continued Trading business of Gysers under the Trade name of Volga - The Company also continued the trading of imported Gas Gysers and Hot & Cold Water Dispenser under the trade name of Volga. Total Purchases are Rs.568092/= and Sales of Rs.1014377/= which is less than 10% of the total turnover.

5. Related Party Disclosures.

(i)The Company neither have Holding, Subsidiary or fellow subsidiary Company nor it is a holding, subsidiary or fellow Company.

(ii)Other related party with whom no transactions have taken place during the year

Associate VRF Engineers Pvt. ltd.

III Directors of the company

Chairman & Managing Director Mr. M. S. Bhalavat

Non executive Directors Mr.A.J.Shah

Mrs. S R Shah

Particulars of remuneration to director is given in Note - B -(8) in this Schedule 13

IV Key Management of the Associate : Mr. M. S. Bhalavat

Mr. R. S. Bhalavat

Due to Crucial financial position, CMD Mr. M S Bhalavat has agreed to forgo the remuneration since Dec.2009.

9. The benefit of MODVAT is credited to purchase & the cost of production is reduced to that extent. However, the amount of Excise payable on finished goods, raw materials, components as at 31st March,2010 estimated at Rs 917839 (P.Y. Rs.363639) shall be accounted for on the clearance of goods from the Factory premises. However, it will have no effect on the results of the Company.

l0. Expenditure in foreign Currency.: NIL

11. Estimated value of Capital Commitments remaining to be executed and not provided : Nil

12.Contingent Liabilities not provided for:

(a) Sales Tax Department has completed assessment for the years 96-97, 97-98, & 99- 2000 and demanded Sales tax, Interest and Penalty as under

Year Assessed Interest Penalty Total Sales Tax(Rs.) (Rs.) (Rs.) (Rs.)

1996-1997 17,90,591 20,50,236 10,74,354 49,15,181

1997-1998 12,08.954 10,65,549 7,03,961 29,78,464

1999-2000 5,58,621 5,37,276 6,70,344 17,66,241

For these years appeals are pending. The Company has made provision for assessed sales tax. How ever no provision for interest & penalty is made since the company shall make application to BIFR (Since Company is already registered with BlFR.)for relief from payment of Interest & Penalty.

(b) The PF authorities has levied damages Rs. 562444 & penal interest Rs. 56769 for delayed payment of PF for the period from March 2002 to July, 2003. However, the Company has approached the higher authorities for weaver of damages as was done in the past

(C) The Companys transformer is required to be sifted from the place where it is at present as the side adjoing primises was sold by operating Agency as per guidelines of BIFR in 2006. the estimated cost for shifting will be approx Rs. 5 lacs: No Provision has being made at present.

13.There is no amount due to Small scale Industrial undertakings/units.

14.Stores & Spares are charged to revenue accounts as and when they are procured

15 Certain Unclaimed credit balances & un recoverable amounts from customers Including Hitachi Home & Life Solution India Ltd which are compromised by the Company for lesser payment or which in the opinion of the management not payable & non-recoverable outstanding Debit balance i.e. (Debit/Credit Balances) are written off during the year and net amount is treated as expense/income during the year.

16 Financial data as on 31st March 2010

The Financial data for further information are given above. The Company has incurred cash loss during the current year & also during previous year. Moreover Company has suspended production from 30.11.2009 & relieved all the staff members from 28.2.2010 and Company has given its Furniture, Tools & Plant & Machinery installed in the Factory Premises on lease. Moreover the B1FR has ordered for change of management. On this basis and on the basis of order of B1FR and on the basis of legal opinion provided to us. considering the SAP issued by 1CA1 and explanations, we form an honest opinion that the Company can be treated as Going Concern.