Notes to Accounts of Krishna Engineering Works Ltd.

Mar 31, 2013

Not available

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Mar 31, 2012

1. RESEARCH & DEVELOPMENT

Revenue expenditure on research and development ongoing research project is charged in the year in which it is incurred. Expenditure which results in developing the new products or processes where the management is of the opinion that products will be/are commercially viable are deferred and charged to the future accounting periods over a period of five years commencing from the following year to the initial year in which these are incurred.

2. The confirmation of credit balance of IDBI Rs. 1196 Lac has not been made available to us

3. Parties balances are subject to confirmation and reconciliation if any.

4. The confirmation .of debit balance of no lien a/c of S.B.I, and PSIDC has not been made available to us.

5. previous figures fiave been regrouped/rearranged wherever considered necessary.

6. Provisions for taxation has not been made as there is no tax liability during the year as per Companies calculations.

7. No interest has been provided for on loans from financial institution and Bank during the year.

8. The Balance confirmation and confirmation of interest charged on loans from financial institutions and Bank have not been made available to us.

9. The company was declared sick industrial company within the meaning of section 3{1)(o)date sick industrial co. (Spl. Prov.) Act, 1985 by Hon' Board for industrial and financial reconstruction in 1999.

10. The company has unabsorbed depreciation and carried forward losses under tax law and there is reasonable certainty that no future, taxable income will be available so no deferred tax asset has been calculated and provided .

11. Segment information

The company is engaged only in the business of engineering components and there are. no separate reportable segments as per accounting standards 1st on segments reporting.

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Mar 31, 2011

1. The contingent liabilities not provided for

in the books of account:- Bank guarantee — —

2. The confirmation of credit balance of IDBI Rs. 1221 Lac has not been made available to us.

3. Debentures of Rs. 2 Crore have already become due for redemption. Rs. 25 Lacs out of 2 Crore have been paid during the year. But no confirmation has been made available to us.

4. L & T Finance Ltd. balance of Rs. 38391676 and interest payable of Rs. 4066159 has been written off during the year and shown under misc. income. But no confirmation from L & T Finance Ltd. has been made available to us.

5. Parties balances are subject to confirmation and reconciliation if any.

6. The confirmation of debit balance of no lien a/c of S.B.I, and PSIDC of Rs. 95 Lacs has not been made available to us.

7. Previous figures have been regrouped/rearranged wherever considered necessary.

8. Provisions for taxation has not been made as there is no tax liability during the year as per Companies calculations.

9. No interest has been provided for on loans from financial institution and Bank during the year.

10. The Balance confirmation and confirmation of interest charged on loans from financial institutions and Bank have not been made available to us.

11. The company was declared sick industrial company within the meaning of section 3(1)(o)of the sick industrial co. (Spl. Prov.) Act, 1985 by Hon' Board for industrial and financial reconstruction in 1999.

12. The company has unabsorbed depreciation and carried forward losses under tax law and there is reasonable certainty that no future taxable income will be available so no deferred tax asset has bee n calculated and provided.

13. Segment information : The company is engaged only in the business of engineering components and there are no separate reportable segments as per accounting standards 17 on segments reporting.

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Mar 31, 2010

1. Managerial remuneration 480000 paid to Mg. Director

2. No interest has been charged on loans from financial institution and Bank during the year.

3. The Balance confirmation and confirmation of interest charged on loans from financial institutions and Bank have not been made available to us.

4. The company was declared sick industrial company within the meaning of section 3(1) (o) of the sick industrial co. (Spl. Prov.) Act, 1985 by Hon Board for industrial and financial reconstruction in 1999.

5. The company has unabsorbed depreciation and carried forward losses under tax law and there is reasonable certainty that no future taxable income will be available so no deferred tax asset has been calculated and provided.