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NOTES TO ACCOUNTS

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Year End :1995-09 
1. In the opinion of the management the provisions of Provident Fund Act are not yet applicable. Hence no provisions or payments have been made for the same.

2. As no employees of the Company has put in the qualifying period of services for the entitlement of gratuity benefits, no provision has been made for the same.

3. Licensed capacity, installed capacity and Actual Production

As the Company's project is under implementation stage, the requisite information is not applicable.

4. Preliminary Expenses will be written off by the Company in ten equal instalments.

5. Estimated amount of contracts remaining to be executed on capital accounts Rs. 10497466/-.

6. Pending the settlement of accounts advances paid to companies/parties towards capital purchases/ services are shown by way of advances for capital purchases/work-in-progress.

7. The trial runs of DMAE and DEAE plants commenced trial production in April, 1995, and the commercial operations began in October 1995. While the raw materials and utilities consumed during the trial runs are charged to pre-operative expenditure, the sale proceeds of out put (Finished products) are credited to pre-operative expenditure.

8. Fees paid to Auditors Rs. 20,000/-.

9. Since the Company has not started commercial production, the provisions of paragraphs 3 & 4 (C) & (D) of Part II of Schedule VI to Companies Act are not applicable so far they relate to

a. Capacities, production and stocks.

b. Raw-material consumption

c. Value of imported raw-materials and spare parts consumed.

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