| 1. Cash Credit and term loan limits is secured by hypothecation of
entire plant and machinery including all the assets being created under
expansion and all the current assets of the Company, equitable mortgage
of land, industrial building and plot of the company at Dabhel and
Vapi, office premises of associate company at Bangalore, personal
guarantee of Managing Director of the Company and corporate guarantee
of associate company. Term Loan is repayable in 71 EMIs
2. related party disclosure
As Per Accounting Standard 18, the disclosure of transaction with the
related parties are given below.
(i) List of Related parties where control exists with whom transaction
have taken place and relationship:
Sr, Name of the Related Party Relationship
No.
1 Hiitesh Topiiwaalla
2 Aartii Topiwaala Key Management Personal
3 Paramount Kum Kum Private Limited
4 Paramount Personal Care Private Limited
5 Parcos Brands Communication Private Associates
Limited
6 PETL Exports Private Limited
3. contingent liabilities and commitments
1) Contingent Liabilities in respect of :
a. The sales tax matter in dispute with the Commissioner of Commercial
Taxes, Surat, Gujarat, in respect of F.Y. 2005-06 is contested in
appeal. On the similar issue in the earlier years and later years the
decision was in favour of the Company.
b. Liability in respect of Letter of Credit opened with bank -
Rs.38,32,617/- ( Previous Year Rs.94,33,194).
c. The estimated amount of contracts remaining to be executed on
capital accounts (Net of Advance) and not provided for Rs.17,535,720/-
(Previous Year Rs. 22,669,820).
2) Some of the Balances of Debtors, Creditors, Loans and Advances are
subject to confirmation. Loss, if any, on account of this will be
recongnised in the year in which confirmation are received.
3) In the opinion of the Board, the current assets, loans and advances
are expected to realize at least the amount at which they are stated,
if realized in the ordinary course of business, and provision for all
known liabilities have been adequately made in the accounts.
4) Provision of Gratuity is made for those employees who have completed
five year of their services.
5) The company operates in one segment only namely "Cosmetics
Products", and transactions in geographical segment are not material,
therefore the segment wise figures are not given.
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