1. Busines Purchase & Disclosure as per requirement of AS 26 Company
has taken over business of two partnership firms on 01/04/2005 on going
concern basis and the details of the same is as follows;
Sr. No. Name of Firm Amount of Value of Goodwill
1. M/s. J.S. Chemicals Rs. 19,00,000/- Rs. 1,25,220/-
2. M/s. Solvochem Industries Rs. 50,00,000/- Rs. 20,816/-
The legal formalities for transfer of assets and intimation to
government authorities is pending.
The details of Goodwill is as below;
Useful Life 5 years -
Gross carrying Amount Opening
Additions 146,036 -
Amortisation 29,207 -
Closing 119,829 -
4. Preferential Issue of Equity Shares
During the year company has come out with preferential issue of equity
shares and successfully allotted 29,50,000 equity shares of Rs.10/-
each at a premium of Rs.31/- to the non promoters of the company.
6. Related party disclosures
a) Related parties:
i. Associate companies
1. RRJ Dyes & Intermediates Limited.
2. Solvochem Intermediates Pvt. Ltd.
3. Goldstar Chemicals Pvt. Ltd.
4. Prolife Biochemical Industries Pvt. Ltd.
ii. Key management Personnel
1. Mr.M.S.Jolly, Director 2. Mr.Ashok Jain, Managing Director
iii. Relative of Key Management Personnel
a) Master Karan Jolly
b) Mrs. Anureet M Jolly
c) Mrs. Leela L.Patel
Related party transactions:
Natute of transactons Associate Key Management Relative of key
Companies Personnel Management
Sale of goods 1,31,04,600 Nil Nil
Purchase of goods 1,74,13,901 Nil Nil
Outstanding 42,25,371 Nil Nil
Outstanding payable 42,82,318 Nil Nil
Purchase of business Nil 38,57,850 30,42,150
7. Earning per share
The company has not issued any potential equity shares, accordingly,
basic and diluted earnings per share are the same:
Net Profit after Tax 2,20,90,414 3, 1 0,703
Weighted Average 64,57,808 51,00,000
No. of Equity Shares
Nominal Value of Share 10 10
Eaming per share 3.42 0.06
8. Contingent Liabilities 2005-06 2004-05
Claims against the company not acknowledged
as debts: Nil Nil
9. Supplementary Profit & Loss Data 2005-06 2004-05
(a) Remuneration to directors
Salaries 160,000 Nil
(b) Payments to auditors
As auditors (Statutory & Tax) 18,500 11,020
Other services Nil Nil
(c) Lincenses and Installed Capacities;
1. 4-Chloro 2 Amino Phenol 360,000
2. Fast Red ITR Base 36,000
3. Fast Blue BB Base 24,000
4. Fast Red R Base 24,000
5. OCPA 180,000
6. 1,5 DIOA 60,000
7. Amino Still Banzene 30,000
8. Acid Yellow 60,000
9. D.T.P.T. 150,000
10. Palmitoyl Chloride 36,000
10. Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and
other debit/credit balances arc analysed but subject to confirmation
and adjustments necessary upon reconciliation thereof. Pending
adjustments on confirmation/reconciliation, if any, the balances are
taken at recorded amounts and the amounts recoverable are shown as
11. Accounting for taxes on income (AS-22)
Deferred Tax Liability is Rs. 59,27,590/- on account of liming
difference in depreciation as per Income Tax Act and Companies Act.
12. Schedule 1 to 19 forms the integral part of the Balance Sheet as at
3 1st March 2006 and the P & L A/c for the year ended on that date.
13. Prior year comparatives
Prior year amounts have been reclassified, where necessary to conform
to current years presentation.
14. Balance Sheet abstract and companies general business profile as
per the annexure.