1). The above audited financial results, after being reviewed by audit committee, have been approved by the Board of Directors during meeting dated 14th August,2014.

2).Project division has been disposed of at a consideration of Rs.951 lac on 17.06.2014 pursuant to members approval and consent of Asset Sale Committee constituted by BIFR to that effect. The same has been treated as exceptional item.

3).BIFR had directed Allahabad Bank, the Operating Agency to submit a rehabilitation package,which after being worked out in consultation with Ernst & Young Pvt. Ltd. has been circulated among all secured lenders.

4). Issue of equity shares against proceeds of application money from Nicco Restructuring Employees Trust Fund (NRETF) amounting to Rs. 66 lacs is pending approval of price of issue from appropriate authorities. As such the diluted impact of such shares could not be ascertained.

5). Pursuant to operationalisation of Companies Act 2013, resulting in change in treatment of depreciation for downward revision of life span of fixed asset , capital employed has been reduced by Rs.1102 lac on account of depreciating over aged fixed assets to residual value and loss has been decreased by Rs.46 lac for depreciating remaining assets under SLM method in terms of revised rate.

6).Audit observations:


a).21,83,000, 5% cumulative redeemable preference shares of Rs.100/- each are overdue for redemption. Renewal/restructuring of the same, has been addressed in the DRS.

b).Retention of brought forward balance since 01.04.2011 against deferred tax asset (net) is ascribed to expected approval of BIFR of management action plan to rehabilitate the company which confirms adequacy of future taxable profit. However subsequent addition/ accretion thereon has been done away as a measure of abundant prudence.

C). Internal financial control system is in place.However, being a new provision, such control is under assessment through an integrated framework to ensure operating effectiveness.

7). Previous year/period figures have been regrouped and rearranged whereever necessary in terms of current period grouping.