Bombay Wire Ropes Ltd Management Discussions

BOMBAY WIRE ROPERS LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS: Rs. in Lakhs 2007-2008 2006-2007 Deficit for the year (31.65) (48.20) Add: Previous Years deficit (822.95) (774.75) Balance deficit in the Profit & Loss A/c. (854.60) (822.95) Less: General Reserve 67.40 67.40 Balance deficit carried forward (787.20) (755.55) YEAR ENDED REVIEW: As informed last year the company has permanently and irrevocably closed down its wire rope unit situated at Kolshet Road, Thane after complying with the procedures required under the relevant laws laid down for the purpose. The aforesaid closure has been challenged by some workmen who have filed a reference which remains pending for consideration before the Industrial Court. However the Company, has been advised that the closure of factory is legally complete. The Company has during the year commenced the activity of manufacturing wooden furniture.. The Company had, alongwith Warden Synplast (P) Ltd., entered into an agreement with a developer for grant development rights in the land owned by the Company. The aforesaid they agreement has been terminated by the Company on certain grounds and the dispute has been referred to arbitration as per the order of Honble Bombay High Court in suit filed by the developer for specific performance of the contract. The arbitration process has commenced but not been completed till date. As the possession of the property remains with the Company and WS and no development whatsoever has commenced thereon, the part amount received from the developer continues!to be shown under Current Liabilities 8, Provisions and the land and building(s) thereon also continue to be included under Fixed Assets having regard to para 11 of Accounting Standard (AS)-9 under which revenue cannot be recognised until significant risks and rewards of ownership has been transferred.