1. ADDITIONAL INFORMATION:
i. During the year the management of the Company has scrutinized the
current assets, loans and advances and found some discrepancy. However,
in absence of correct figures of balances of debtors, provisions for
bad and doubtful debts have not been made. The management of the
Company had informed that physical verification of certain finished
goods lying at branches are neither physically verified nor their net
realizable value is ascertainable, in case it is sold in the market.
ii. Provision for Income Tax had been made in pursuance to section
115JB of the Income Tax Act, 1961 in the Balance Sheet made for
Financial Year 2013-2014 (i.e. ending on 31-03-2014).
iii. Income Tax assessment has been completed up to Assessment Year
2012-13 and Sales Tax Assessment has been completed up to Accounting
Year 2011-2012.
iv. Balance of Sundry Debtors/Creditors; Loans & advances are subject
to confirmation.
v. Most of the Debtor's (more than six month), loans and Advances are
irrecoverable/not fully recoverable but the same have not yet been
Provided/written off in the books of account by the company.
vi. Company is in the Process of compiling the information of MSMED
Act. However the matter of interest is not material in the opinion of
the board of directors.
vii. Related Party Disclosure (As identified by the Management)
Related Party Relationship:
(a) Where control Exists M/s. Sanitex Shri Jay Kothari is the
Chemicals Ltd., Director of the Company
Baroda (for a part of the year)
Where control Exists M/s. S. N. Shri Jay Kothari is the
Enterprises, Indore Karta of the firm
(b) Key Management Shri Nagin Chand
Personnel Kothari Chairman
Shri Jay Kothari Managing Directors
Smt. Sajjanbai
Kothari Directors
Smt. Anjali Shukla Directors
viii. SEGMENT INFORMATION
In terms of Accounting Standards-17, the Company had identified the
following Segment, details are as under:-
Primary Segments
Segment Liabilities:-
Note:- No separate segment wise details are maintained. Because same
line of business activities.
ix. RESTRUCTURING OF SHARE CAPITAL:
The Company had applied to Bombay Stock Exchange for listing of 49,82
600 equity shares of Rs 10/- each issued to the promoters and their
associates on preferential basis, 10,00,000 equity shares of Rs 10/-
each issued to Raunaq Laboratories Ltd., on other than cash basis,
under swapping agreement between the Company and Raunaq Laboratories
Ltd and 5,00,000 equity shares of Rs 10/- each issued to relative of
promoters at a premium of Rs 1/- each in the year 2005.
Bombay Stock Exchange declined listing of above shares. The Company had
filed Company petition with Honorable High Court of Madhya Pradesh,
Indore Bench under section 391 to 394 read with section 100 to 105 of
the Companies Act, 1956 for Scheme of Arrangement for
Reconstruction/Restructuring of Capital between the Company and its
shareholders on the ground that the Company has been operating at
marginal capital due to partial shut-down of the factory for renovation
and inadequate working capital. The Company was also suspended at the
stock exchange due to non-compliance of listing agreement, specifically
for capital mismatch.
The Honb'le High Court of Madhya Pradesh, Indore Bench had passed order
on 04.12.2013 and approved the scheme of Arrangement for
Reconstruction/Restructuring of Capital. According to the order passed
by the Honb'le High Court of Madhya Pradesh, Indore Bench, the
promoters and their associates had surrendered 49,82,600 equity shares
of Rs 10/- each without any consideration and applied to the Company
for issue of fresh 1,00,00,000 equity shares of Rs. 10/- for cash at
par. The Company had issued 1,00,00,000 equity shares of Rs. 10/- each
for cash during the financial year 2013-14.
x. The Following tables' summaries the components of the net benefit
expenses recognized in the profit and loss account the fund status and
amount recognized in the balance sheet for the gratuity benefit plan
xi. Loans and advances to related parties Rs 8,38,997/- considered
doubtful and the same has not been provided in books of account.
xii. Sundry Debtors includes Rs. 38,85,341/- due from the related
parties have been considered doubtful and the same has not been
provided in books of account.
xiii. That the trading of the shares of the Company has been suspended
by Bombay Stock Exchange and it's formalities for regularization are
pending.
xiv. Previous year's figures are regrouped and/or rearranged wherever
necessary and are shown in brackets.
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