1. During the current financial year 2014-15 the company has sold its
IT devision to ECS Biz Tech P. Ltd. under the scheme of demerger
approved by Hon'ble Gujarat High Court and accordingly cancelled
80,36,062 Equity Shares under the said scheme Company has allotted
68,17,400 Equity Shares during F.Y. 2009-10 to the Shareholders of
Lesha Energy Resources Limited on aquiring the steel devision from the
said company under the scheme of De-merger approved by the Hon'ble High
Court of Gujarat.
The Company has not issued any Bonus Shares or Bought back any shares
during the period of last five years immediately preceeding the Balance
Sheet date.
2. Terms/rights attached to equity shares
The company has only one class of equity shares having par value of
Rs.10 per share.Each holder of equity shares is entitled to one vote
per share.The dividend,if any,proposed by the Board of Directors will
be subject to the approval of the shareholders in the ensuing Annual
General Meeting. In the event of liquidation of the company,the
holders of equity shares will be entitled to receive assets of the
company remaining after settlement of all liabilities.
The Company has not received any intimation on suppliers regarding
their status under the Micro, Small and Medium Enterprise Development
(MSMED) Act, 2006 and hence disclosure as required under section 22 of
The Micro, Small and Medium Enterprise regarding:
(a) Amount due and outstanding to suppliers as at the end of the
accounting year;
(b) interest paid during the year;
(c) interest payable at the end of the accounting year;
(d) interest accrued and unpaid at the end of the accounting year;
have not been given , the company is making efforts to get the
confirmation from the suppliers as regards their status under the said
act.
3. Notes on Accounts Contingent Liabilities
There is no contingent liability as informed by management.
Capital Expenditure Commitments: Nil
4. Related Party Transactions:-
As per Accounting Standard (AS -18) issued by the Institute of
Chartered Accountants of India, the disclosures of transactions with
the related parties are given below:
List of related parties where control exists and related parties with
whom transactions have taken place and relationships:
Sr No Name Relationship
1 Shalin A. Shah Director
2 Ashok C. Shah Director
3 Hitesh Donga Director
4 Daksha D Bhatt Director
5 Leena A. Shah Director's Relative
6 Gujarat Natural Resources Ltd. Associate Concern
7 Shree Ghantakarna Rolling Mills P. Ltd Associate Concern
8 Tanya Estate Pvt. Ltd. Associate Concern
9 Lesha Agro Food Pvt. Ltd Associate Concern
10 Ashnisha Alloys Pvt. Ltd Associate Concern
11 Shalin A. Shah HUF Director's Relative
5. Segment Reporting:
Accounting standards interpretation (ASI) 20 dated 14-02-2004, issued
by the accounting standard board of ICAI, on AS-17, Segment reporting
clarifies that in case by applying the definition of "Business Segment
and Geographical Segment" given in AS-17, it is concluded that there
the company has following business segments:
1 Trading of Steel Products
2 Trading of Electronics Products
3 Trading of Toys
4 Dealing in Shares & Securities
There is no secondary identifiable segment.
Information given in accordance with the requirement of Accounting
Standard 17, on "Segment Reporting"
6. Earnings per Share:-
The earning considered in ascertaining the company's EPS comprises the
profit available for shareholders i.e profit after tax and
statutory/regulatory appropriations. The number of shares used in
computing Basic EPS is the weighted average number of shares
outstanding during the year as per the guidelines of AS-20.
Others;- * Details of loan made during the year 2014-15 as per section
186(4) of The Companies Act 2013 is as per Annexure -1
* Scheme of Arrangement: High Court has sanctioned the Scheme of
Arrangement in the nature of De-merger between the company and M/s. ECS
Biztech Pvt. Ltd. for the De-merger of I T Division of the Demerged
Company. As a result of the Scheme, the Paid up Capital of the Company
reduced from Rs.17,46,97,000/- to Rs.9,43,36,380/-. Further the
shareholders of the Company gets 23 equity shares of Resulting Company
for every 50 equity shares held by the shareholders of Demerged Company
on the Record Date.
* In opinion of the management of the company, all loans, advances and
deposits are recoverable in cash or kind for value to be received for
which no provision is required. However in the opinion of the auditors,
it shall be prudent to make sufficient provision for such
non-performing assets amounting to Rs. 135.32 Lacs
* As informed by the management that the loans are interest free, which
in our opinion is violation of Section 186 (7) of the Companies Act,
2013.
* Confirmation of the concerned parties for the amount due to them
and/or due from them as per accounts of the company are not received.
Necessary adjustments, if any, will be made when accounts are
reconciled or settled. Balance of sundry debtors and creditors, loans
and advances accepted and given in the balance sheet are subject to
confirmation.
* In the opinion of board of directors the value of loans and advances
and other current assets have a value on realization in the ordinary
course of business at least equal to the amount at which they are
stated in balance sheet.
* Balance with IDBI bank for Rs. 10,969/- is subject to confirmation as
no details has been produced before us for the same.
* As regarding loans from GIDC , the said amount is outstanding since
long, the management has provided us with the explanation that as the
GIDC has not allotted them their land, the said loan is not repayable
and the repayment will start once the GIDC will allots the plot to the
company.
* As regards to the differed tax liability the company needs to reverse
Rs. 30.45 L against opening reserves as the assets been transferred in
the scheme of demerger. Also there is carry forward of losses, the
company need not to recognize deferred tax assets in the event of
non-availability of convincing evidence as to future income.
* Above Disclosure is made after taking into account the principle of
materiality.
* The previous year's figures have been reworked, regrouped, rearranged
and reclassified wherever necessary. Amounts and other disclosures for
the preceding year are included as an integral part of the current year
financial statements and are to be read in relation to the amounts and
other disclosures relating to the current year.
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