1) The Sales Tax & Income-Tax Assessments are pending for earlier
years. Liabilities in respect of such taxes could not ascertained.
2) During the year.the Company has issued 8,50,000 Equity shares of Rs.
10 each issued at a price of Rs. 20/-( including premium of Rs. 10/-
each) on conversion of Warrants issued on preferential basis.
3) Export benefits including Central Excise, Advance Licenses and
Passbook of Duty Credit to be reconciled with the related evidences and
Statements and necessary adjustment if required will be made after
reconciliation. Export benefits receivable are valued and certified by
the management. However the actual realisation of the same may
4) The Company has deposits of Rs.74 lacs with the Pyrates Phosphates &
Chemicals Ltd(PPCL) which is overdue. However the company has filed a
suit with District Court and for the same District Court has given the
ruling in favour of the Company by the way of decree. The Company has
now filled an application for the execution of the preferential claim
for the decree against PPCL and as per the latest order given by the
Honourable High Court Patna, it has been decided that the claim may be
considered upon liquidation / disposal of all the assets of PPCL. In
view of that, the management has not made any provision for doubtful
5) Sundry Debtors, Creditors, Loan, Deposits and advances are subject
to reconciliation and confirmation, necessary adjustment if required
will be after reconciliation.
6) Some assets of which the company is beneficial owner are pending for
transfer in the name of the company.
7) No provision has been made in the accounts for diminution in the
value of quoted investments by reason of these
investments being Long Term lnvestment and the decline in their value
being on account of temporary factors.
During the year ended March 31,2011, the Company made an investment of
Rs 2.55 Lacs by way of subscription to the equity share capital of
Shree Ambika Naturals Pvt. Ltd. With this subscription, Shree Ambika
Naturals Pvt. Ltd. has become a subsidiary of the Company.
Shree Ambika Naturals Pvt. Ltd. (Formerly Known as Shree Ambika Dyechem
Pvt. Ltd.) is a company having its manufacturing unit atAhmednagar,
8) The Company had created an Employees'' Group Gratuity Fund in the
previous year, which has taken a Group Gratuity cum Life Insurance
Policy from the Life Insurance Corporation of India. Consequent to this
reserve at the previous year end has decreased by Rs. 4.73 Lacs for
contribution of premium to LIC for earlier years liability. Bonus is
accounted on cash basis.
9) In the opinion of the Board of Directors to the best of Knowledge
and belief all the current assets, loans and advances have been stated
at realisable value at least of an amount equal to the amount at which
they are stated in Balance Sheet.
10) Unpaid Dividend accounts are subject to reconciliation.
11) The Company does not possess information as to which of its
suppliers are Micro, Small and Medium Enterprises, as defined in the
Micro, Small and Medium Enterprises Development Act,2006 to whom the
Company owes any amount However, the Company is regular in making
payments to its suppliers and has not received any claim in respect of
interest fordelayed payment.
12) The outstanding forward exchange contract as on 31st March,2011
entered into by the company was for USD Nil (Prev. year USD 85,400
equivalent INR 39.40 Lacs).
13) The entire operations of the Company relate to only one segment
viz. Dyes, Chemicals & Intermediates such, there is no separate
reportable segment under Accounting Standard-17 on Segment Reporting.
14) As stipulated in Accounting Standard - 28 on Impairment of Assets
issued by the Institute of Chartered Accounl India, the company has
assessed potential generation of economic benefits from its business
units and is of the v Assets employed in continuing businesses are
capable of generating adequate returns over their useful lives in tr
course of business, there is no indication to the contrary and
accordingly management is of the view that no imp provision is called
for in these accounts.
15) Related Party Disclosure as required by Accounting Standard -18
issued by the Institute of Chartered Accoun India.
A Entities where control exists
ShreeAmbika Naturals Pvt. Ltd. (Formerly Known as Shree Ambika Dye
Chem. Pvt. Ltd.)
B Key Management Personal (KMP)
Shri V. P. Shah Managing Director
Shri R. L. Rathod Whole Time Director (upto 15th July, 2010)
Dr.S.N.Sahai Whole Time Director
C Relatives of KMP Smt.JayaP.Shah Shri. P. B. Shah PB.ShahHUF
D Other Related Parties (Entities in which (KMP) or their relatives
have significant influence) Jayshree Chemicals Jayapriya Chemical
Ganesh Tiles & Marble Industries VIP Chem Pvt Ltd.
AmarTrading Corporation Standardcon Pvt.Ltd.
J.V.Dye Chem. Pvt. Ltd.
16) Accounting for Taxon Income Deferred taxliability at the year
end comprises of timing difference on account of depreciation.
17) Additional Information Pursuant to the provisions of Para 3,4C,4D &
Part II of Schedule VI of the Companies Act, 1956. (For A to E
below figures in bracket relate to the previous year)
1. The Installed Capacities, Production & Consumption of Raw Materials
are as per the certificate given by the
management on which the Auditors have relied, being a technical matter.
2. Under the Industrial Policy Statement dated 24th July 1991,and the
notification issued thereunder, there is no licensing requirement for
the Company''s product.