2. In the opinion of the Board of Directors, the Other Current Liabilities are approximately of the value stated in the Balance Sheet, if realised in the ordinary course of business. The balances are subject to confirmation from the parties. Unclaimed Dividend amounting to Rs. 1,08,069 is unclaimed for more than Seven Years and is deposited in Ministry of Corporate Affairs , Delhi on 15/04/2013. However DD Drwan before 31/03/2013.

During the Year under Audit the Company has W/OFF and W/BACK Outstanding Balance in Unsecured Loan,Other Liability.

The Balance Confirmation Certificate at the Year End were Not Obtained by the Company in case of all the Creditors, Sister Concern, Associate Concern, Directors, Director Relative Account.

Provision for taxation is not required to be made as there is no taxable income as per the provisions of the Income Tax Act,1961.

Since Financial Year:2010-11 the Company has entered into agreement for Sale of Nadesari Unit, CAD Unit, Pungam Unit and Ankleswar-GIDC Unit and also received advance against such Sale , the same is shown as Advance From Prties. Also Refer Point No. 2.23 of Notes on the Financial Statements , as regards Various Liabilities Written Off. The Company is Registered with GBIFR Vide their Letter No.:IC/IM/SUR/24545-2011/T-16/749780.Dated:21-09-2012. Registration Number is 12 Dated : 21/09/2012.

Wherein the Company is expecting to get the Waiver of Interest , Penalties etc. On Sales Tax , GIDC Dues , Electricity Duty based on the Directions of Govt. Of Gujarat & Pending Settlment Dues Payable to GOG of Rs. 14.96 Lacs. (PY. Rs.102.78 Lacs.) have been shown in Statutory Dues. The GOG has introduced New Scheme in Place of Its earlier Scheme, for Relief to the Sick Industrial Units Registered with the BIFR Vide GR BFR/(HPC)/102009/435690/P Dated : 15/07/2010.

3. The Company has not accounted for the impairment losses on account of diminution in the value of fixed assets including capital work in progress in respect of incomplete project as the management is not in position to estimate the exact nature and quantum of loss on this account. Management feels that upon revival of operations the company would be in position to work out loss on this account. The Fixed Assets Register is required to be Produced before us for our verification.

4. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the Balance Sheet, if realised in the ordinary course of business. The balance of Sundry debtors includes overdue balance from various parties and also efforts are being made for recovery from such parties.The balances are subject to confirmation from the parties.

During the Year under Audit the Company has W/OFF and W/BACK Outstanding Balance in Loan and Advances Account The Balance Confirmation Certificate at the Year End were Not Obtained by the Company in case of all the Sister Concern, Associate Concern, Directors , Director Relative Account. Please Refer Notes on Accounting Policies wherein as per requirements of AS-18 for Related Parties Transaction were mentioned in Details on Point No.2.22.

4. In Respect of Contingent Liability : 31.03.14 31.03.13

1 Contingent Liabilities in respect of -

a. Income tax and Sales tax matters 67,33,054* 67,33,054*

b. Excise    & Other matters               3,06,28,381*   3,42,42,985*

c. GEB (DGVCL)                                  40,245*        40,245*

* In a Above Includes KACL Contingent Laibility of Rs. 10,25,21,860/-

* In b Above Includes KACL Contingent Laibility of Rs. 2,43,54,288/-

* In c Above Includes KACL Contingent Laibility of Rs.15,16,59,386/-L.Y. & IN C.Y. of Rs.40,245/-

NOTE:

(i) The Company has preferred appeals against demand under c above.

(ii) The Company had disputed the electricity charges raised by Gujarat Electricity Board in arbitration proceedings.

The award is in the favour of the company.However Board has Passed the Ressolution on the Basis of letter of DGVCL to Industry Commissioner for outstanding Dues of the Company & hence Liability for GEB Dues is considered at Rs.40,245/-

(iii) The Sum of Rs. 22.90 Lacss being Payment under Protest has been written off and Rs.1.09 Lacs being paid to Daurala Sugar towards Sales Tax deposit. The exact outcome of the notices issues by the appropriate authority could not be ascertained in absence of requisite information. This is as per information & explanation given to us.

(iv) In terms of consent term reached in response to the legal proceedings between the company and Unsecured Creditors , The Company agreed to pay dues towards Creditors in installments. The company has stopped the payment of these installments. The liability , is stated at the amount as per the consent Term Unsecured Creditor has separately approached the H'ble Bombay High Court.

5. In Respect of Refrence made to GOG Scheme :

The accounts have been prepared on "Going Concern" assumption despite continuous losses, erratic operation, complete erosion of the net worth of the company. Company is referred to GBIFR for rehabilitation and revival.

6. In Respect of Previous Years Figures :

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. The Revised Schedule VI does not require presentation of a reconciliation explaining the impact of the reclassification of the previous year figures in the financial statements. The Previous year's figures have been regrouped / rearranged wherever found necessary.

During the Financial Year 2010-11 the Company has entered into agreement for Sale of Nadesari Unit , CAD Unit and Ankleswar - GIDC Unit as a Whole and also received advance against such Sale. The Necessary Procedure as prescribed U/s. 293 of the Companies Act, is to be Complied with. Details of the same are as under :

7. In CAD Unit :

During the FY : 2011-12 All P & M were sold to Kohinoor Enterprise for Rs.400 Lacs at a Loss of Rs. 2456.85 Lacs And Whole of the Bulding Scrap was Sold along with Building Scrap of Pungam to Suffian Steels for Total Amount of Rs.18 Lacs. No Advance Balance Amount Except Rs.25 Lacs Towards Security Deposit of Kohinoor Enterprise was Laying at the Year end.

8. In Pungam Unit During the FY : 2011-12 All P & M Except Land & Building. Were Sold to Kohinoor Enterprise For Rs.210 Lacs at a Loss of Rs. 113.49 Lacs. Sold Amount is Adjusted from the total Amount Received of Rs.210 Lacs, And No Advance Balance Amount as on 31-03-2014. Bulding scrap was Sold along with Building Scrap of CAD to Suffian Steels for Total Amount of Rs.18 Lacs. No Advance Balance Amount was Laying at the Year end. During the Previous Year Land was Sold at Rs.6.27 Crores to Shree Anu Enterprise, Ankleshwar.The Payment was received in full.

There are Pending Dues against the Companies by the Sales Tax department . However During the Previous Year Company is Registered with the GOG Scheme as mentioned in the Report.