Notes to Accounts of Konkan Tyres Ltd.

Mar 31, 2012

A) The company has only one class or shares referred to as Equity Shares having a par value or Ks10/- each. Each holder of Equity share is entitled to one vote per shares.

b) The Company has not declared any Dividend as it has accumulated Losses.

c) In the event of Liquidation of the company, the holders of equity share will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

d) share reconciliation

The Reconciliation of the number of shares outstanding and the amount of share capital as at March 2012 & March 2011 is set out below :

(1) No provision is made for interest on Unsecured Loans Rs.23.51 Lakhs appearing in Balance Sheet to that extent Profit is overstated. The company is not in operations.

(2) Unsecured Loans are subject to confirmation.

(3) The Income Tax cases are completed upto Asst.Year 2006 -2007 (31.3.2006). The Company''s Income Tax Assessments resulted in demand exceeding Rs.170.00 Lakhs and above (approx.). The Company has disputed the demand and preferred Appeal in relevant Years. No provision is made for the expected liability in Account.

(4) The Company has written off are the debtors who are not recoverable and are adjusted the sundry creditors which are not payable over the period.

(5) The Company has given corporate guarantee to other Companies of Rs.50 Lakhs.

(6a) Advances recoverable in cash or kind are subject to confirmation and no recovery is made over the last 5 years. No provision is also made for doubtful recovery.

(7) The Company has not adopted Accounting Standard 22 as it is loss making company and does not expect to make profit in coming year.

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Mar 31, 2011

(1) No provision is made for interest on Unsecured Loans Rs.39.46 Lakhs appearing in Balance Sheet to that extent Profit is overstated.

(2) Unsecured Loans are subject to confirmation.

(3) The Income Tax cases are completed upto Asst.Year 2006 -2007 (31.3.2006). The Company's Income Tax Assessments resulted in demand exceeding Rs. 170.00 Lakhs and above (approx.). The Company has disputed the demand and preferred Appeal in relevant Years. No provision is made for the expected liability in Account.

(4) The Company has written off are the debtors who are not recoverable and are adjusted the sundry creditors which are not payable over the period.

(5) The Company has given corporate guarantee to other Companies Of fo.50 Lakhs.

(6a) Advances recoverable in cash or kind are subject to confirmation and no recovery is made over the last 5 years. No provision is also made for doubtful recovery.

(7) The Company has not adopted Accounting Standard 22 as it is loss making company and does not expect to make profit in coming year.

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Mar 31, 2010

(1) No provision is made for interest on Unsecured Loans Rs.28.90 Lakhs appearing in Balance Sheet to that extent Profit is overstated.

(2) Unsecured Loans are subject to confirmation.

(3) The Income Tax cases are completed upto Asst. Year 2006 -2007 (31.3.2006). The Company's Income Tax Assessments resulted in demand exceeding Rs. 170.00 Lakhs and above (approx.). The Company has disputed the demand and preferred Appeal in relevant Years. No provision is made for the expected liability in Account.

(4) The Company has written off are the debtors who are not recoverable and are adjusted the sundry creditors which are not payable over the period.

(5) The Company has given corporate guarantee to other Companies of Rs.50 Lakhs.

(6a) Advances recoverable in cash or kind are subject to confirmation and no recovery is made over the last 5 years. No provision is also made for doubtful recovery.

(7) The Company has not adopted Accounting Standard 22 as it is loss making company and does not expect to make profit in coming year.

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Mar 31, 2009

(1) No provision is made for interest on Unsecured Loans Rs.70.72 Lakhs appearing in Balance Sheet to that extent Profit is overstated.

(2) Unsecured Loans are subject to confirmation.

(3) The Income Tax cases are completed upto Asst.Year 2003-2004 (31.3.2003). The Companys Income Tax Assessments resulted in demand exceeding Rs. 120.00 Lakhs and above (approx.). The Company has disputed the demand and preferred Appeal in relevant Years. No provision is made for the expected liability in Account.

(4) The Company is showing in Current Assets as Sundry Debtors, many amounts which are not recovered over last 4 to 6 years. As per information given by management, this amount approximately works out to the tune of Rs.40.60 Lakhs. No Provision is made for Doubtful Sundry Debtors and to that extent the Profits and General Reserves are overstated.

(5) The Company has given corporate guarantee to other Companies of Rs.50 Lakhs.

(6a) Advances recoverable in cash or kind are Rs.23.34 Lakhs subject to confirmation and no recovery is made over the last 5 years. No provision is also made for doubtful recovery,

(6b) Advances include debit balance of Sundry Creditors amounting to Rs.46.38 Lakhs. No recovery is made over the last 5 years and according to the explanation given by the management most of the advances aie recoverable.

(7). The Company has not adopted Accounting Standard 77 as it is loss making company and does not expect to make profit incoming year.

(8) As per information given by management there is no manufacturing activity during the year under audit and management has revalued the stock at Rs.35.43 Lakhs compared to opening stock of Rs.35.43 Lakhs. This is necessary due to deterioration in quality of the stock.