The following contingent liability existed as on 31-03-2015 for which no provision has been made:

A penalty up to Rs 4 Lakhs (Previous year -Rs.4 Lakhs) which could be levied by a Court for lapses under the Negotiable Instruments Act.

2. Rehabilitation Scheme 2002/2003 of BIFR:

a) Supply of power at a concessional rate:

The Company had recognized the claims made by the GEB towards electricity supply to the Company in excess of Rs.2.84 per unit (inclusive of energy & demand charges) as refundable by the GEB in line with the tariff approved vide order dated 28.08.2000 and its extension for a period of 5 years as further rehabilitation scheme sanctioned by BIFR. However, the State Govt. / GEB have not extended the same till date. In the meanwhile the Company is in the process of finalizing its MDRS envisaging various reliefs and concessions from the State Govt. of Goa which is currently pending before the Govt. of Goa/BIFR. In the circumstances and pending revised MDRS to be sanctioned by BIFR duly supported by the Govt. of Goa, the provision of Rs.1717.45 lakhs relating to the past period is in the opinion of the management not enforceable and hence written off during the year as advances no longer recoverable.

b) Extension of CST exemption and Exemption from payment of Entry Tax:

The Board for Industrial and Financial Reconstruction (BIFR) through its order dated 21st November 2002; with a view for the long term sustenance had granted Extension of CST exemption from July 2005 up to 2012 and Exemption from payment of Entry Tax from September 2000. Accordingly, a liability of Rs.490 lakhs and Rs.1711.96 lakhs (previous year - Rs. 490 lakhs and Rs. 1711.96 lakhs) has not been provided towards CST and Entry Tax respectively.

3. Advances no longer recoverable:

The advances no longer recoverable and written off during the year by the Company amounting to Rs.1978.45 lakhs include; apart from Rs.1717.45 lakhs as mentioned at Note-28 (a) above, Rs.243.23 lakhs towards advances made to suppliers which in the opinion of the management have become bad and not realizable and Rs.17.76 lakhs towards excess provision of fire insurance claim.

4. Bad debts:

The Company has also during the year written off as bad debts an amount of Rs.2076.09 lakhs towards Sundry Debtors pertaining to the disputed billing during 2008-09 on account of sudden fall in prices of shredded scrap from USD 690 PMT to USD 220 PMT and selling prices from Rs.60,000/- PMT to Rs.32,000/- PMT as a result of the Global economic crisis which in the opinion of the management have become bad and irrecoverable.

5. Excise duty liability:

In respect of manufactured goods held in stock, excise duty at 12.36% is estimated at Rs. 3.87 Lakhs (Prev. year Rs. 3.87 Lakhs @ 12.36%). The same has not been provided in the books as per the policy of the Company except on stock at depots and stock sent to converters on which duty already paid has been included in the valuation. This does not affect the profits made by the Company.

6. Claims against the Company not acknowledged as debts:

PARTICULARS                            REMARKS

Authority / Department                 Goa Electricity Board (GEB)

Amount Due                             Rs.87.84 crores; comprising of
                                       Rs.2.16 crores principal and
                                       Rs.85.68 crores delayed payment
                                       charges (DPC) @ 2% per month
                                       compounded

Dispute involved                       Granting of 25% rebate for 3.5
                                       years instead of 5 years and
                                       levy of DPC @2% per month
                                       compounded

Before which authority                 Hon'ble Supreme Court of India

During the year eligible VAT input credit of Rs.719.04 lakhs for the period 01.04.2005 to 31.03.2015 has been set off against the Central Sales Tax payable for the period 01.04.2005 to 31.03.2015. Further, a sum of Rs.212.99 lakhs being the old electricity rebate claim provided as advances recoverable in cash or kind or for value to be received and also provided as electricity charges payable has been set off during the year.

8. Other Income:

Other income (refer Note-20) includes write back of Rs.1157.44 lakhs being liability to Unsecured Loan from Rukmani Finance Pvt. Ltd. who have waived the same keeping in view the proposed rehabilitation programme.

9. The balances of Loans & Advances under Current Assets, Sundry Debtors & Sundry Creditors are subject to confirmation / reconciliation.

10. The Board is of the opinion that the Current Assets, Loans and Advances have, in the ordinary course of business, value at least equal to the amount at which they are stated in the Balance Sheet.

11. Figures for the previous year have been regrouped to conform to those of the current year.