1. The Schedules referred to in the Balance Sheet and Profit & Loss
Account forms as integral part of the accounts.
2. The reference made by the company to the Board for Industrial and
Financial Reconstruction (BIFR) for declaring the company as sick on
the basis of audited accounts for the year ended 31st March'' 2008''
although was initially rejected but on appeal the case was registered
in 2011 and the company was declared as sick vide order dated 22nd
July'' 2011 and appointed IDBI Bank as O.A. to prepare DRS.
3. Depreciation on fixed assets has not been provided as the
company''s operations are discontinued from Dec'' 2006..
4. As per the tripartite arrangement dated 9th January'' 2008 between
the company and their bankers Indian Overseas Bank and M/s. Yatish
Trading Co. Pvt. Ltd. the outstanding bank loan was assigned by
creating equitable mortgage on the existing freehold land and charge on
other fixed assets in favour of the later party. One of the group
companies of M/s. Yatish Trading Co. Pvt. Ltd. entered into a contract
manufacturing agreement with the company for manufacture of chemical
products on payment of interest free loan of Rs.12.00 cr. The
contractor failed in their commitment as neither manufacturing activity
was undertaken nor the agreed interest free loan was given and with the
result the company suffered continues losses. In view of this the
company has filed a suit in Bombay High Court for recovery of damages
of Rs. 72.37crore against the group company and M/s. Yatish Trading Co.
Pvt. Ltd. jointly.
5. Shareholder wise reconciliation in respect of calls-in-arrears is
yet to be received from the Registrar and Transfer Agent of the
6. The Company has imported emulsion plant under EPCG scheme in the
2003-04 with an export obligation of Rs. 1246.67 lacs to be fulfilled
within a period of eight years. So far company has exported goods worth
7. Loans and Advances of Rs. 106.23 lacs recoverable in cash or kind
are subject to confirmations.
8. The amount in respect of other current assets'' Trade Payables''
Unsecured Loans and other current
9. Auditors'' Remuneration (excluding service tax):
Audit Fees Rs. 30''000/-
10. Contingent Liabilities:
i. Claims against the Company not acknowledged as debts Rs. 10170.68
thousands (PY Rs.
10170.68 thousands) ii. The following claims against the Company has
been disputed with various statutory authorities:
A) Sales Tax amounting to Rs. 61370.83 thous (PY Rs. 61370.83 thous)
B) Exe4se Duty amounting to Rs: 15.90 lacs (PY Rs. 15.90 lacs )
11. As per requirement of section 22 of the Micro'' Small and Medium
Enterprises Development Act'' 2006 following information has been
disclosed. This information takes into account only those suppliers who
have responded to the enquiries made by the .Company for this purpose.
12. The company is situated in non implemented area as per section 88
of ESIC Act'' hence it is exempted from the Employees State Insurance.
Therefore'' the Company has not deducted ESIC contribution from the
salary and wages of the employees and not depositing ESIC to the
13. Related Party disclosures:
a. Key Management Personnel: i. Mr. R.C. Kothari
il. Mr. T.C. Kothari
b. Relatives of key management personnel: i. Mr. Sidharth Kothari
c. Subsidiary NIL
d. Fellow Subsidiary NIL
e. Holding Company NIL
i. Akar Labels (P) Ltd.
ii. Great Hights Trade Links (P) Ltd.
iii. Salvia Investments & Traders (P) Ltd.
iv. Apex Explosives Pvt. Ltd
v. Apex Detonator Pvt. Ltd
vi. Kothari Explosives
vii. Kothari Enterprises
viii. Ganpati Enterprises There are no transactions during the year
with the related parties mentioned in (b) and (f) (i)'' (ii)''
(iv)''(v)''(vi)'' (vii) & (viii) given above.
14. The Company has not carried on any business activity during the
financial year; hence segment wise reporting in terms of Accounting
Standard 17 ''Segment Reporting'' issued by Institute of Chartered
Accountants of India is not applicable.
15. The previous year''s figures have been regrouped'' rearranged''
reclassified and reworked wherever necessary. Amounts and other
disclosures for the preceding year are included as an integral part of
current year financial statements and are to be read in relation to the
amounts and other disclosures relating to the current year.