Statement of Assets and Liabilities for last Five Years and Latest ...

7. Office Building including parking area has been capitalised from the date of takingpossession. However, the sale / transfer deed is still pending for execution in favourof the company. Stamp duty payable on the registration of office building works outto about Rs.122 Lacs (P.Y. Rs.91 Lacs), which will be accounted for on registration.8. Salary, Allowances and other benefits to Directors of the Company(Rs. in Lacs)Particulars 2009 – 10 2008-09a. Salary / Allowances 28.99 29.30b. Reimbursement 0.74 Nilc. Foreign Service Contribution 4.64 ---b. Incentive Nil Nilc. Sitting fee paid to Non-Executive Directors0.85 0.75In addition, Managing Director has been allowed use of staff car for personal useupto 1000 kms on payment of Rs.600/- per month, in accordance with thenotification of the Govt. of India, Ministry of Finance, Department of PublicEnterprises OM No.2(18)/PC/64 dated 20 th November, 1964 as amended.9. Contingent Liabilities(a) Claims against the Company not acknowledged as debt – Claims by bondholders inthe Consumer Courts: Rs.50 Lacs (P.V. Rs.50 Lacs).(b) The Income Tax assessments of the Company have been completed up toAssessment Year 2007 - 08. The disputed demand outstanding upto the saidAssessment year is Rs. 1664.27 Lacs against which Rs. 1650.35 Lacs has beendeposited by the Company under protest and the appeals of the company arepending at various appellate levels. Based on decisions of the Appellate authorities inother similar matters and interpretation of other relevant provisions, the Company isconfident that the demands are likely to be either deleted or substantially reducedand accordingly no provision has been considered necessary.(c) The company does not pay sales tax on purchase of leased assets. Sales tax on thepurchase / lease of rolling stock, if it becomes payable, is recoverable from Ministryof Railways in terms of the lease agreements. Since, there is no sales tax demandand the amount is unascertainable, no provision is made in the accounts.(d) The Companies (Second Amendment) Act, 2002 provides for levy of cess, towardsrehabilitation / revival of sick industrial companies, which shall not be less than0.005% but not more than 0.10% of the turnover or the gross receipts as theCentral Govt. may from time to time specify by notification in the Official Gazette.Since no notification has been issued, provision for cess has not been made.