[a] in view of accumulated loss of Company, the net worth has
become negative. The Company,however, is making effort in one hand to
settle & reduce the dues of depositors & on the other hand
endeavouring to reduce the loss by cost economy & venturing into
diversifying activities to generate surplus. The. Companys loss has
been consistently arrested from the year 2000-01 onwards. The accounts
have thus been prepared on a going concern basis.
[b] In response to the Companys application for extension of time for
repayment of matured fixed deposits & reconsideration of rate of
interest payable to deposit holders from the date of maturity to the
date of payment, the Comp. Law Board [CLBs] issued an adverse order,
not considering the financial position of Company. Hence, Company
applied to Honble Kolkata High Court for revision of said order.
Honble Court has since disposed of Companys appeal Ý directing CLB to
re-hear the matter, which is awaited.
Consequently the overdue interest upto 31.03.2008 has not been provided
for in this Acc. as the determination of rate of interest is
still awaited. Company, however, has paid/provided a sum of Rs.491407
included in Schedule-16 towards overdue interest while settling dues of
the depositors during the year on the basis of Orders specifying the
various rates in this connection from Appropriate Authorities.
[c] The Comp. has relied on a legal opinion that the order of the
Company Law Board having contested & pending before the Honble
Kolkata High Court, the directors of Comp. are not disqualified
under Clause [gs] of sub-section [1s] of Section 274 of Companies
Act, 1956 for default in repayment of public deposits together with
interest thereon.
[d] Reserve Bank of India [RBIs] has rejected Companys application to
issue Certificate of Registration to carry on business as Non-Banking
Financial Comp. vide its Order dated 4th February, 2003. Company,
however, has filed a 'Stay Petition' against RBIs order with, the
appropriate authority & hearing of which is awaited.
[e] Income Tax deducted at source on income from investments & others
amounted to Rs.109374/- [Rs.33306/-s].
[f] The Comp. has opened an ESCROW Account for investors repayment
protection under RBIs specific instructions & has deposited Rs.72
lacs in the said Account in the financial year 2007-08. Total fund
transferred upto 31.03.2008 is Rs.489 lakhs. Under this eventuality the
Company doesn't percieve transfer of separate and/or additional fund
designed as 'Investors protection & Education Fund' u/s.205A of the
Companies Act, 1956.
[g] During the year the Comp. has adopted the Accounting Standard-IS
[Revised 2005s] for recognizing the employee benefits. In accordance
with the transitional provision of this Accounting Standard, Rs.69497/-
representing liability on Acc. of charges for leave encashment for
past services has been accounted for with necessary adjustment in the
accumulated balance of Profit & Loss Account as on 1st April, 2007 on
the basis of independent actuarial valuation carried out as on 31st
March, 2008. No provision has been made for gratuity as funded balance
is sufficient to cover the liability.
The Comp. doesn't have defined benefit obligations pertaining to
post retirement medical benefits, pension & superannuation for
existing/surviving employees. As such medical expenses are measured on
cost to Comp. basis. The change doesn't have any material impact on
the profit for year.
The required charge for year on the basis of actuarial valuation as
referred to above has been accounted for in the Profit & Loss Account
for the year in compliance with the Accounting Standard. The details of
amount recognized in the financial statement in respect of the
following defined employee benefit schemes are disclosed in the table
below :
[h] Since the Comp. is not a manufacturing Company, information
required under clause 4C of Part-II of Schedule VI of Companies
Act, 1956, has not been furnished.
