అకౌంట్స్ గమనికలుVipras Corporation Ltd.

Mar 31, 2009

1. The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

2. In the opinion of the Board, the current assets, loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provision of all known liabilities is adequate and neither in excess of nor short of amount reasonably necessary.

4. In view of uncertainty of future taxable income which will set off the brought forward loss ,no deferred tax assets has been created in term of Accounting Standard (AS) 22- Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India.

5. Additional information as required under Part IV of schedule VI to the Companies Act,1956.

6. Consequent to the total erosion of net worth by 30thSeptember,1997,the Company was referred to the Hon'ble Board for Industrial & Financial Reconstruction (BIFR) and the Company was declared as sick Industrial Company by Hon'ble BIFR at the hearing held on 5.1.99. ICICI was appointed as the Operating Agency to formulate a rehabilitation scheme for the revival of the Company. Based on the report of the Operating Agency a Draft Rehabilitation scheme was circulated to all the involved agencies and a joint meeting was convened on 21.11.2000. In the view of the above, though the net worth of the Company is eroded ,the accounts have been prepared on principles applicable to a Going Concern.

Two Banks have made application to BIFR for permission u/s 22(1) of SICA for taking recovery proceedings against the company.

7. In the absence of assessable profits no provision has been made for taxation during the current year. (Previous Year - Nil)

8. Loans and Advances : Maximum amount outstanding from the companies under the same management :-

9. (a) Sales Tax due in respect of Trading Activity is outstanding to the extent of Rs.42,77,311 (Previous Year:42,77,311).

10 Summary of Significant Accounting Policies :

(a) Fixed Assets and Depreciation : Refer Note No. 1 of Schedule No.

(b) Inventories :

The Company has adopted the method of valuation of Closing stock on the following basis :-

(i) Raw material at cost following FIFO method of valuation, excluding excise duties.

(ii) Material in process at raw material cost, after considering scale and other inherent losses, however there is no material in process as on 31st March,2009

(iii) Finished goods has been valued at lower of cost or net realizable value. The cost means raw material cost and manufacturing expenses.

(iv) The consumable stores and spares are charged to production at the point of procurement . There is a stock of Nil (Previous year NIL Kgs ) of furnace oil valued at purchase price.

(v) Scrap at Net Realizable Value, however there is no scrap on 31st March,2009

(c) Miscellaneous Expenses :

The Company proposes to write off expenditure not represented by assets and Miscellaneous expenditure in the following manner from the year of full commercial production:

(i) Expenditure not represented by assets over a period of Five financial year.

(ii) Preliminary and Share Issue expenses over a period of Ten years.

iii) Deferred Revenue expenditure over a period of five years.

(iv) Technical Know-how fees over a period of six years.

(d) Sales :

Sales represent amount billed for goods sold exclusive of Excise Duty, but net of trade discount, returns and allowances. Sale is treated as complete on delivery of goods from company's premises.

(e) Interest income on Sundry Deposits is accounted on Cash Basis.

(f) Foreign Currency Transactions: Import of goods received during the year are accounted on the basis of actual value remitted for the same.

(g)The Company was unable to honor the following Letter of Credits opened with banks and could not repay the bills of exchange drawn by the Company and not honored by the parties:

(j) The company has introduced audit of its Excise Records with reference to accounts Records. An Audit of all the Modvat credit availed on its purchases/input and all the excise charged on sales by excise department have been reconciled with account department.

All the entries of current year have been reconciled and found ok. There is no difference in Modvat availed and excise charged in current year by excise and account book .

(k) In respect of secured term loans from Banks and Institutions and on working capital from Banks including overdue Hundies' L.Cs/B.Gs., the interest is provided for as per the Intimations/Demand Notices received by the Company. In cases where no such intimation/notices are received, interest is provided at the contracted rates

11. As per Accounting Standards As 20 on Earning per share (EPS) issued by the Institute of Chartered Accountants of India, the particulars of EPS for Equity shareholders are as below:

12. In accordance with Accounting Standards 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the company has accounted for deferred tax during the year. The company has significant amount of carried forward losses and unabsorbed depreciation under the Income tax act. However, as a ,matter of prudence, deferred Tax assets have been recognized only to the extent there is deferred tax liability.

The components of Deferred tax assets to the extent recognized and deferred tax liability as on 31st march,2007 are as follows

13. In view of uncertainty of future taxable income which will set off the brought forward loss ,no deferred tax assets has been created in term of Accounting Standard (AS) 22- Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India.

14. Interest cost debited to Profit & Loss Account is net of interest received/receivable during the year.

15. The debit and credit balances remain unconfirmed.

16. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business, subject to exact determination of scaling and other inherent production losses for inventories and to reconciliation of accounts with sundry debtors and the necessary adjustments, if any, will be made at the time of reconciliation. The provision for all known Liabilities is adequate and not in excess of amount reasonably necessary.

17 Previous years figures have been regrouped wherever necessary. Figures in brackets relate to the previous year.

18. Debit balance in R.G. 23 of C.Y.Rs.298773 & P.Y. Rs.395484 disclosed under schedule ‘J' in balance sheet consist of input credit taken on account of material received for conversion jobs.

19. Company is undertaking conversion jobs from traders for which MODVAT credit on receipt of goods and MODVAT debit on dispatch of goods after conversion is accounted in excise books only.