Notes to Accounts of Indo Euro Indchem Ltd.

Mar 31, 2024

1.15. Provisions, contingent liabilities, contingent assets

A provision is recognized when the Company has a present obligation (legal or
constructive) as a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a reliable estimate can be
made. If the effect of time value of money is material, provisions are discounted using
a current pre-tax rate that reflects, when appropriate, the risk specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is
recognized as a finance cost. These are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.

A disclosure for a contingent liability is made when there is a possible obligation or a
present obligation that may, but probably will not require an outflow of resources. When
there is a possible obligation or a present obligation in respect of which likelihood of
outflow of resources is remote, no provision or disclosure is made.

The Company does not recognize a contingent asset but discloses its existence in the
financial statements if the inflow of economic benefits is probable. However, when the
realization of income is virtually certain, then the related asset is no longer a contingent
asset, but it is recognized as an asset.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at
each balance sheet date.

1.16. Earnings per share

Basic earnings per share are computed using the net profit for the year attributable to
the shareholders’ and weighted average number of shares outstanding during the
year. The weighted average numbers of shares also include fixed number of equity
shares that are issuable on conversion of compulsorily convertible preference shares,
debentures or any other instrument, from the date consideration is receivable
(generally the date of their issue) of such instruments.

Diluted earnings per share is computed using the net profit for the year attributable to
the shareholder’ and weighted average number of equity and potential equity shares
outstanding during the year including share options, convertible preference shares and
debentures, except where the result would be anti-dilutive. Potential equity shares that
are converted during the year are included in the calculation of diluted earnings per
share, from the beginning of the year or date of issuance of such potential equity
shares, to the date of conversion.

1.17. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity
and a financial liability or equity instrument of another entity. Financial assets and
financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit or loss
are recognized immediately in profit or loss.

Financial Investments

Non-Current Investments includes Investment in Partnership Firm which is stated at
Original Capital invested, share of profit earned by the Firm and the interest earned on
the Capital.

2. OTHER ADDITIONAL INFORMATION FORMING PART OF FINANCIAL STATEMENT

I. Contingent Liability: NIL

II. Capital Commitment: NIL

III. The Management has considered all the Trade Receivables as good and taking effort
for recovery from the parties. Therefore, the Management has not recommended any
provision for doubtful debts against the receivables.

IV. Out of the Loan & advances, some parties has expressed its financial inability to pay
interest; hence, no interest or lower interest is accounted on the said loan. However,
the Management is taking steps to recover the dues & interest, if any and are hopeful
to settle the account in due course and no provision for doubtful debts is made on the
same.

V. Ind-AS 116 Accounting of Lease expenses is not applicable as all leases as on the
reporting date are for the short-term period.

VI. The outstanding balance of assets and liabilities are accepted as they appear in the

books of accounts and are subject to reconciliation / adjustments, if any, and
confirmation by respective parties.

VII. The Company has reasonable check & internal Control over the expenses incurred

that are legitimate for the purpose of the Business with the Debit vouchers along
with supporting documents, as available, which are checked, approved and

authorized by the Staff, Managers and Directors as per the internal control and
budget policy of the Company.

VIII. The current liability includes statutory liabilities towards Taxes and dues which
shall be paid in due course as per the Management.

IX. Micro, small and medium enterprise disclosure:

The Company has not received any memorandum (as required to be filed by the
suppliers with the notified authority under the Micro, Small and Medium Enterprises
Development Act, 2006) claiming their status as on 31^st March 2024 as micro, small
or medium enterprises. Consequently, the amount paid/payable to these parties
during the year is nil..

X. Segment Reporting:

The Company has one reportable business and geographical segment and hence no
further disclosure is required under IND AS- 108 on Segment Reporting.

XI. Related Parties Disclosures under IND AS 24:

As per Annexure attached

XII. Previous year’s figures have been regrouped and recast wherever necessary to
conform to the current year classification.

For VORA & ASSOCIATES FOR AND ON BEHALF OF THE BOARD

CHARTERED ACCOUNTANTS

(ICAI F.R. No.: 111612W)

SD/- SD/- SD/-

RONAK A. RAMBHIA VARDHAMAN C. SHAH AKSHIT LAKHANI

PARTNER MANAGING DIRECTOR DIRECTOR

(Membership No.: 140371) DIN: 00334194 DIN: 00334241

SD/- SD/-

R. MISHRA VARSHA BANSAL

CFO CO. SECRETARY

Place: Mumbai Place: Mumbai

Date: 7^th May, 2024 Date: 7^th May, 2024

---

Mar 31, 2015

1) Figures of previous year have been rearranged/regrouped wherever necessary to make hem comparable with current year figures.

2) In the opinion of the Board of Directors the Current Assets and Loan & Advances are approximately of the value stated if realised in the ordinary course of business. The provision for depreciation and all the known Liabilities are adequate and not in excess or short of the amount reasonably necessary.

3) The Company follows the system of recording gratuity liability on cash basis , which is contrary to AS-15 issued by the Institute of Chartered Accountants of India . If retirement benefit are accounted on accrual basis, the profit for the year would be lower by Rs. Nil (Previous Year Rs. Nil) as the company has no permanent employees who have completed five years tenure and the liabilities will increase to that extent, but the total liabilities of paid Director for earlier year upto Balance Sheet date is Rs.1,96,730/- (Previous Year Rs.1,96,730).

4) Confirmation in respect of Sundry Debtors, Sundry Creditors Loans& Advances are not available for verification, hence they are subject to confirmation and reconciliation if any. In the opinion of the management there are no chances of adjustment and if any adjustment arise out of reconciliation it would not be significant. However if any liabilities may arise on account of late payment or otherwise, the profit of the Company will be effected to that extent.

5) The company has entered into one time settlement with SangliUrban Co-op. Bank Ltd. for old disputes with the banks on various issues. The company has paid the agreed first installment and has to pay last installment with interest so old disputed liability will finally settle.

6) The Company has provided tax liabilities during the year as per Income Tax Law. The tax provision in accounts is made without adjusting the MAT Credit if any.

7) The Management have confirmed that all the fixed assets , current assets, Loans & Advances shown in the Balance Sheet and all purchases, expenses paid/provided are actually incurred for the purpose of business of Company . All the Sales, Income, Purchases and Expenses are provided in the accounts.

8) As informed by the management there are no outstanding payable to the Micro and Small Enterprises to whom the company owed sum exceeding Rs. 1 lakh, which is outstanding for more than 30 days at the end of the year as per Micro Small & Medium Enterprises Development Act,2006 thus no need to pay and provide any interest.

9) No Share Certificates of Sangli Urban Co-Operative Bank Ltd. and Silicon Vyapar Pvt. Ltd. could be physically verified as the Bank and Other Party has not given certificates to the Company as informed by the management.

10) Segment Reporting

The Company is engaged in the business of Purchase and sale of Dyes Chemicals Pigments and Animal Feed Supplements which constitute a single business Chemicals Segment as per management. As there are no export sales, thus there are no reportable geographical segments, thus no segment report are given.

11) Related Party disclosures

Related Party Disclosures as required by AS-18 " Related Party Disclosures" are given below:- The Company has identified following related parties

I. (A) Companies/Other Organization under the control of Directors where transactions are entered into and/or outstanding balance exist as at the Balance Sheet Date:-

1) Shah Chhaganlal Laxmich and (HUF)

2) JMC Exim (India) Pvt. Ltd

3) Silicon Vyapar Pvt. Ltd.

4) JMC Logistics

5) Rachita Enterprises

6) Gadia Mercantile Pvt. Ltd.

7) JMC Investment Consultants Pvt. Ltd.

8) Vardhman C. Shah HUF

9) Infinity VinconPvt Ltd.

10) Prime Decor Laminate Pvt Ltd

11) B. S. Enterprises

12) Indo Asia Impex

(B) Key Management Persons and their relatives

1) Mr. Jaysukh Shah - Director

2) Mr. Vardhman Shah - Director

3) Mr. AkshitLakhani - Director

---

Mar 31, 2014

1. Figures of previous year have been rearranged/regrouped wherever necessary to make them comparable with current year figures.

2. In the opinion of the Board of Directors the Current Assets and Loan & Advances are approximately of the value stated if realised in the ordinary course of business. The provision for depreciation and all the known Liabilities are adequate and not in excess or short of the amount reasonably necessary.

3. The Company follows the system of recording gratuity liability on cash basis , which is contrary to AS-15 issued by the Institute of Chartered Accountants of India . If retirement benefit are accounted on accrual basis, the profit for the year would be lower by Rs. Nil (Previous Year Rs. Nil) as the company has no permanent employees who have completed five years tenure and the liabilities will increase to that extent, but the total liabilities upto Balance Sheet date is Rs. 1,96,730/- (Previous Year Rs. 1,96,730).

4. Confirmation in respect of Sundry Debtors, Sundry Creditors Loans & Advances are not available for verification, hence they are subject to confirmation and reconciliation if any. In the opinion of the management there are no chances of adjustment and if any adjustment arise out of reconciliation it would not be significant. However if any liabilities may arise on account of late payment or otherwise, the profit of the Company will be effected to that extent.

5. No contractual interest is provided on Bank Loan from Sangli Urban Co-op. Bank Ltd. @ 17% p.a for the year Rs.22,34,772/- and simple accumulated interest of Rs.2,40,68,55 1/-(Previous Year Rs.2,18,33,779/-), as the management is disputing the above interest liabilities and principal loan but are willing of settlement the disputes. The management have expressed before us that they have counter claim against the Bank as Bank have not given the management accounts for sales of share pledged to them by the Directors. The Bank have been given permission to sale the share given of Directors to appropriate the loan. The Bank have sold some share and not given any account hence the Director have counter claim against Bank but as per account and past Balance Sheet the interest paid to Banks are shown lower to the extent of Rs.2,40,68,55 1/- (Previous Year Rs.2,18,33,739/-) thus the profit is overstated by same amount and credit balance of Statement of Profit & Loss will be debit, balance and unsecured loan will increase by the same amount.

6. The Company has provided tax liabilities during the year as per Income Tax Law. The tax provision in accounts is made without adjusting the MAT Credit.

7. The Management have confirmed that all the fixed assets , current assets, Loans & Advances shown in Balance Sheet and all purchases, expenses paid/provided are actually incurred for the purpose of business of Company . All the Sales & Income are fully and genuinely , and correctly , provided in the accounts.

8. As informed by the management there are no outstanding payable to the Micro and Small Enterprises to whom the company owed sum exceeding Rs. 1 lakh, which is outstanding for more than 30 days at the end of the year as per Micro Small & Medium Enterprises Development Act,2006 thus no need to pay any interest.

9. No Share Certificates of Sangli Urban Co-Operative Bank Ltd. and Silicon Vyapar Pvt. Ltd. could be physically verified as the Bank and Other Party has not given certificates to the Company.

10. Segment Reporting

The Company is engaged in the business of Purchase and sale of Dyes Chemicals Pigments and Animal Feed Supplements which constitute a single business Chemicals Segment as per management and as there are no export sales and as such there are no reportable geographical segments, thus no segment report are given.

11. Deferred Tax

In compliance with the Accounting Standard AS-22 relating to Accounting for taxes on Income, the Company have planned the future growth of the Company and are confident of future profitability to claim future tax credit on brought forward losses under Income Tax Act.

12. Related Party disclosures

Related Party Disclosures as required by AS-18 " Related Party Disclosures" are given below

The Company has identified following related parties

I, (A) Companies/Other Organisation under the control of directors where transactions are entered into and/or outstanding balance exist as at the Balance Sheet Date:-

1) Shah Chhaganlal Laxmichand (HUF)

2) JMC Exim (India) Pvt. Ltd

3) Silicon Vyapar Pvt. Ltd.

4) JMC Logistics

5) VitragAssociates

6) Lamitech India

7) Rachita Enterprises

8) Parekh Overseas

9) Gadia Mercantile Pvt. Ltd.

10) JMC Investment Consultants Pvt. Ltd.

11) Vardhman C. Shah HUF

12) Infinity Vincon Pvt Ltd.

13) Prime Decor Laminate Pvt Ltd

14) B. S. Enterprises

15) In do Asia Impex

(B) Key Management Persons and their relatives

1) Mr. Jaysukh Shah - Director

2) Mr. Vardhman Shah - Director

3) Mr. Akshit Lakhani - Director

---

Mar 31, 2013

1. Figures of previous year have been rearranged/regrouped wherever necessary to make them comparable with current year figures.

2. In the opinion of the Board of Directors the Current Assets and Loan & Advances are approximately of the value stated if realised in the ordinary course of business. The provision for depreciation and all the known Liabilities are adequate and not in excess or short of the amount reasonably necessary.

3. The Company follows the system of recording gratuity liability on cash basis , which is contrary to AS-15 issued by the Institute of Chartered Accountants of India . If retirement benefit are accounted on accrual basis, the profit for the year would be lower by Rs. Nil (Previous Year Rs. Nil) as the company has no permanent employees who have completed five years tenure and the liabilities will increase to that extent, but the total liabilities upto Balance Sheet date is Rs. 1,96,730/- (Previous Year Rs. 1,96,730).

4. Confirmation in respect of Sundry Debtors, Sundry Creditors Loans & Advances are not available for verification, hence they are subject to confirmation and reconciliation if any. In the opinion of the management there are no chances of adjustment and if any adjustment arise out of reconciliation it would not be significant. However if any liabilities may arise on account of late payment or otherwise, the profit of the Company will be effected to that extent.

5. No contractual interest is provided on Bank Loan from Sangli Urban Co-op. Bank Ltd. @ 17% p.a for the year Rs.22,34,772/- and simple accumulated interest of Rs.2,18,33,779/- (Previous Year Rs. 1,95,99,007/-), as the management is disputing the above interest liabilities and principal loan but are willing of settlement the disputes. The management have expressed before us that they have counter claim against the Bank as Bank have not given the management accounts for sales of share pledged to them by the Directors. The Bank have been given permission to sale those share by Directors to appropriate the loan. The Bank have sold some share and not given any account hence the Director have counter claim against Bank but as per account and past Balance Sheet the interest paid to Banks are shown lower to the extent ofRs.2,18,33,739/- (Previous Year Rs. 1,95,99,007/-) thus the profit is overstated by same amount and credit balance of Statement of Profit & Loss will be debit balance and unsecured loan will increase by the same amount.

6. The Company has provided tax liabilities during the year after adjustment of brought forward depreciation as per Income Tax Law. The tax provision in accounts is made without adjusting the MAT Credit.

7. The Management have confirmed that all the fixed assets , current assets, Loans & Advances shown in Balance Sheet and all purchases, expenses paid/provided are actually incurred for the purpose of business of Company . All the Sales & Income are fully and genuinely , and correctly , provided in the accounts.

8. As informed by the management there are no outstanding payable to the Micro and Small Enterprises to whom the company owed sum exceeding Rs. 1 lakh, which is outstanding for more than 30 days at the end of the year as per Micro Small & Medium Enterprises Development Act,2006 thus no need to pay any interest.

9. No Share Certificates of Sangli Urban Co-Operative Bank Ltd. and Silicon Vyapar Pvt. Ltd. could be physically verified as the Bank and Other Party has not given certificates to the Company.

10. Segment Reporting

The Company is engaged in the business of Purchase and sale of Dyes Chemicals Pigments and Animal Feed Supplements which constitute a single business Chemicals Segment as per management and as there are no export sales and as such there are no reportable geographical segments, thus no segment report are given.

11. Deferred Tax

In compliance with the Accounting Standard AS-22 relating to Accounting for taxes on Income, the Company have planned the future growth of the Company and are confident of future profitability to claim future tax credit on brought forward losses under Income Tax Act.

12 Related Party disclosures

Related Party Disclosures as required by AS-18 " Related Party Disclosures" are given below:-

The Company has identified following related parties

I. (A) Companies/Other Organisation under the control of directors where transactions are entered into and/or outstanding balance exist as at the Balance Sheet Date:-

1.) Shah Chhaganlal Laxmichand (HUF)

2) JMC Exim (India) Pvt. Ltd

3) Silicon Vyapar Pvt. Ltd.

4) JMC Logistics

5) Vishal Enterprises

6) Vitrag Associates

7) Lamitech India

8) Rachita Enterprises

9) Parekh Overseas

10) Gadia Mercantile Pvt. Ltd.

11) JMC Investment Consultants Pvt. Ltd.

12) VArdhman C. Shah HUF

13) Infinity Vincon Pvt Ltd.

14) Prime D6cor Laminate Pvt Ltd

---

Mar 31, 2011

1. Figures of previous year have been rearranged/regrouped wherever necessary to make them comparable with current year figures.

2. In the opinion of the Board of Directors the Current Assets and Loan & Advances are approximately of the value stated if realised in the ordinary course of business. The provision for depreciation and all the known Liabilities are adequate and not in excess or short of the amount reasonably necessary.

3. The Company follows the system of recording gratuity liability on cash basis , which is contrary to AS-15 issued by the Institute of Chartered Accountants of India . If retirement benefit are accounted on accrual basis, the profit for the year would be lower by Rs. Nil (Previous Year Rs. Nil/-) as the company has no permanent employees who have completed five years tenure and the liabilities will increase to that extent, but the total liabilities up to Balance Sheet date is Rs.1,96,730/- (Previous Year Rs.1,96,730).

4. Confirmation in respect of Sundry Debtors, Sundry Creditors Loans & Advances are not available for verification, hence they are subject to confirmation and reconciliation if any. In the opinion of the management there are no chances of adjustment and if any adjustment arise out of reconciliation it would not be significant. However if any liabilities may arise on account of late payment or otherwise, the profit of the Company will be effected to that extent.

5. No contractual interest is provided on Bank Loan from Sangli Urban Co-op. Bank Ltd. @ 17% p.a amounting to Rs.1,73,64,235/- (Previous Year Rs.1,51,29,463/-), as the management is disputing the above interest liabilities and principal loan but are willing of settlement of disputes. The management have expressed before us that they have counter claim against the Bank as Bank have not given the management account for sales of share pledged to them. The Bank have been given permission to sale those share and appropriate the loan. The Bank have sold some share and not given any account hence the have counter claim against Bank but as per account and past Balance Sheet the interest paid to Banks are shown lower to the extent of Rs.1,73,64,235/- (Previous Year Rs.1,51,29,463/-) thus the profit is overstated by same amount and credit balance of Profit & Loss Account will be debit balance and unsecured loan will increase by the same amount.

6. No provision for tax is required to be made in accounts , due to brought forward depreciation loss in current year , but income tax liability has been provided as per Minimum Alternative Tax U/s. 115JB.

7. The Management have confirmed that all the fixed assets , current assets, Loans & Advances shown in Balance Sheet and all purchases, expenses paid/provided are actually incurred for the purpose of business of Company . All the Sales & Income are fully and genuinely , and correctly , provided in the accounts.

8. As informed by the management there are no outstanding payable to the Micro and Small Enterprises to whom the company owed sum exceeding Rs.1 lakh, which is outstanding for more than 30 days at the end of the year as per Micro Small & Medium Enterprises Development Act,2006 thus no need to pay any interest.

9. No Share Certificates of Sangli Urban Co-Operative Bank Ltd. could be physically verified as the Bank has not given certificates.

10. Segment Reporting

The Company is engaged in the business of manufacture, Purchase and sale of Dyes Chemicals Pigments and Animal Feed Supplements which constitute a single business segment and as there are no export sales and as such there are no reportable geographical segments, thus no segment report are given.

11. Deferred Tax

In compliance with the Accounting Standard AS-22 relating to Accounting for taxes on Income, the Company have planned the future growth of the Company and are confident of future profitability to claim future tax credit on brought forward losses under Income Tax Act.

Difference in current year are accounted out of current year Profit & Loss Account for Rs.5,08,724/- (Previous Year Rs.5,22,829/-)

12 Related Party disclosures

Related Party Disclosures as required by AS-18 " Related Party Disclosures" are given below:- The Company has identified following related parties

I. (A) Companies/Other Organisation under the control of directors where transactions are entered into and/or outstanding balance exist as at the Balance Sheet Date:-

1. Shah Chhaganlal Laxmichand (HUF)

2. JMC Exim (India) Pvt. Ltd

---

Mar 31, 2010

1. Figures of previous year have been rearranged/regrouped wherever necessary to make them comparable with current year figures.

2. In the opinion of the Board of Directors the Current Assets and Loan & Advances are approximately of the value stated if realised in the ordinary course of business. The provision for depreciation and all the known Liabilities are adequate and not in excess or short of the amount reasonably necessary.

3. The Company follows the system of recording gratuity liability on cash basis , which is contrary to AS-15 issued by the Institute of Chartered Accountants of India . If retirement benefit are accounted on accrual basis, the profit for the year would be lower by Rs. Nil (Previous Year Rs. Nil/-) as the company has no permanent employees who have completed five years tenure and the liabilities will increase to that extent, but the total liabilities upto Balance Sheet date is Rs.1,96,730/- (Previous Year Rs.1,96,730).

4. Confirmation in respect of Sundry Debtors, Sundry Creditors Loans & Advances are not available for verification, hence they are subject to confirmation and reconciliation if any. In the opinion of the management there are no chances of adjustment and if any adjustment arise out of reconciliation it would not be significant. However if any liabilities may arise on account of late payment or otherwise, the profit of the Company will be effected to that extent.

5. No contractual interest is provided on Bank Loan from Sangli Urban Co-op. Bank Ltd. @ 17% p.a amounting to Rs.1,51,29,463 /- (Previous Year Rs.1,29,31,165/-), as the management is disputing the above interest liabilities and principal loan but are willing of settlement of disputes. The management have expressed before us that they have counter claim against the Bank as Bank have not given the management account for sales of share pledge to them. The Bank have been given permission to sale those share and appropriate the loan. The Bank have sold some share and not given any account hence the have counter claim against Bank but as per account and past Balance Sheet the interest paid to Banks are shown lower to the extent of Rs.1,51,29,463/- (Previous Year Rs.1,29,31,165/-) and total Rs.9,09,80,587/- thus the loss is understated by same amount and credit balance of Profit A Loss Account will be debit balance and unsecured loan will increase by the same amount.

6. No provision for tax is required to be made in accounts , due to brought forward depreciation loss in current year , but income tax liability has been provided as per Minimum Alternative Tax U/s. 115JB.

7. The Management have confirmed that all the fixed assets , current assets, Loans & Advances shown in Balance Sheet and all purchases, expenses paid/provided are actually incurred for the purpose of business of Company . All the Sales & Income are fully and genuinely , and correctly , provided in the accounts.

8. As informed by the management there are no outstanding payable to the Micro and Small Enterprises to whom the company owed sum exceeding Rs. 1 lakh, which is outstanding for more than 30 days at the end of the year as per Micro Small & Medium Enterprises Development Act,2006 thus no need to pay any interest.

9. No Share Certificates of Sangli Urban Co-Operative Bank Ltd. could be physically verified as the Bank has not given certificates. N.S.C Certificate are pledged to Sales Tax Authorities for issue of C form.

10. Segment Reporting

The Company is engaged in the business of manufacture, Purchase and sale of Dyes Chemicals Pigments and Animal Feed Supplements which constitute a single business segment and as there are no export sales and as such there are no reportable geographical segments, thus no segment report are given.

11. Deferred Tax

In compliance with the Accounting Standard AS-22 relating to Accounting for taxes on Income, the Company have planned the future growth of the Company and are confident of future profitabilities to claim future tax credit on brought forward losses under Income Tax Act.

Difference in current year are accounted out of current year Profit A Loss Account for Rs.5,22,829/- (Previous Year Rs.10,41,085/-)

12 Related Party disclosures

Related Party Disclosures as required by A5-18 " Related Party Disclosures" are given below-.-

The Company has identified following related parties

I. (A) Companies/Other Organisation under the control of directors where transactions are entered into and/or outstanding balance exist as at the Balance Sheet Date:-

1. Shah Chhaganlal Laxmichand (HUF)

2. JMC Exim Pvt. Ltd

(B) Key Management Persons and their relatives

1. Mr. Jaysukh Shah - Director

2. Mr. Vardhman Shah - Director

3. Mr. Shah - Director

---

Mar 31, 2009

1. Figures of previous year have been rearranged/regrouped wherever necessary to make them comparable with current year figures. .

2. In the opinion of the Board of Directors the Current Assets and Loan & Advances are approximately of the value stated if realized in the ordinary course of business. The provision for depreciation and all the known Liabilities are adequate and not in excess or short of the amount reasonably necessary.

3. The Company follows the system of recording gratuity liability on cash basis , which is contrary to AS-15 issued by the Institute of Chartered Accountants of India . If retirement benefit are accounted on accrual basis, the profit for the year would be lower by Rs. Nil (Previous Year Rs. Nil/-) as the company has no employees who have completed five years tenure and the liabilities will increase to that extent, but the total liabilities up to Balance Sheet date is Rs.1,96,730/- (Previous Year Rs.1,96,730).

4. Confirmation in respect of Sundry Debtors, Sundry Creditors Loans A Advances are not available for verification, hence they are subject to confirmation and reconciliation if any.

In the opinion of the management there are no chances of adjustment and if any adjustment arise out of reconciliation it would not be significant. However if any liabilities may arise on account of late payment or otherwise, the profit of the Company will be effected to that extent.

5. No contractual interest is provided on Bank Loan from Sangli Urban Co-op. Bank Ltd. @ 17% p.a amounting to Rs.l,29,31,165 /- (Previous Year Rs.l,10,52,278/-), as the management is disputing the above interest liabilities and are willing of settlement of disputes. Due to above, the interest paid to Banks are shown lower to the extent of Rs.l,29,31,165/- (Previous Year Rs.1,10,52,278/-) and total Rs.7,58,51,124/- thus the loss is understated by same amount and credit balance of Profit A Loss Account will be debit balance and unsecured loan will increase by the same amount.

6. No provision for tax is required to be made in accounts , due to brought forward depreciation loss in current year , but income tax liability has been provided as per Minimum Alternative Tax U/s. 115JB and provision is also made for Fringe Benefit Tax.

7. The Management have confirmed that all the fixed assets , current assets, Loans A Advances shown in Balance Sheet and all purchases, expenses paid/provided are actually incurred for the purpose of business of Company . All the Sales & Income are fully and genuinely , and correctly , provided in the accounts.

8. Contingent liability not provided for 3

The amount outstanding on account of contracts of capital goods is not been worked out by the Management, hence no capital commitment are given . The management expect no liabilities as no parties have made any claims and management will try to recover the . amount advanced or ask them to deliver the machinery they have been contracted.

9. As informed by the management there are no outstanding payable to the Micro and Small Enterprises to whom the company owed sum exceeding Rs. 1 lakh, which is outstanding for more than 30 days at the end of the year as per Micro Small A Medium Enterprises Development Act,2006 thus no need to pay any interest.

10. No Share Certificates of Sangli Urban Co-Operative Bank Ltd. could be physically verified as the Bank has not given certificates. N.S.C Certificate are pledged to Sales Tax Authorities for issue of ''C'' form.

11. Segment Reporting .

The Company is engaged in the business of manufacture, Purchase and sale of Dyes Chemicals Pigments and Animal Feed Supplements which constitute a single business

segment and as there are no export sales and as such there are no reportable geographical segments, thus no segment report are given.

12. Deferred Tax

In compliance with the Accounting Standard AS-22 relating to Accounting for taxes on Income, the Company have planned the future growth of the Company and are , confident of future profit abilities to claim future tax credit on brought forward losses under Income Tax Act.

Difference in current year are accounted out of current year Profit A Loss Account for Rs.10,41,085/- (Previous Year Rs,9,46,236/-)

13 Related Party disclosures

Related Party Disclosures as required by AS-18 " Related Party Disclosures" are given below:-

The Company has identified following related parties ''

I. (A) Companies/Other Organization under the control of directors where transactions are entered into and/or outstanding balance exist as at the Balance Sheet Date:-

1. Rushabh Chemical Co. * .

2. Shah Chhaganlal Laxmichand (HUF)

3. Elite Laminates Pvt. Ltd. *