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Notes to Accounts of Archit Organosys Ltd.

Mar 31, 2015

Note 1:

Rights, Preferences and Restrictions

The rights and privileges to equity shareholders are general in nature and defined under the Articles of Association.

Equity Shares : The Company has only class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, if any, in proportion to their shareholding.

Note 2:

Contingent Liabilities and Capital commitments

Contingent Liabilities

- Claims not acknowledged by as debt 1,47,07,069 1,47,07,069

Capital Commitments

- Estimated amount of contracts remaining to be executed on capital account and not provided for NIL NIL

- Other commitments NIL NIL

Note 3:

The company had entered in to derivatives contracts (for sale of foreign currency) with HDFC bank Limited which have already been concluded in earlier years. The company had incurred loss on such contracts against which the sum of Rs. 78,70,798/- (including adjustment of fixed deposit amounting to Rs. 23,64,200/-) have already been paid and charged to Statement of Profit and Loss under the head "Loss on Derivative Contract". The company had also received summons / show cause notice from Mumbai Debt Recovery Tribunal in the month of May, 2009. In response to the same, based on legal advise, the company had filed its reply with appropriate authority. Pending final outcome, the management is of the opinion that the aforesaid liability is of contingent nature and therefore the company has not recognized as liability for the balance loss of Rs. 1,47,07,069/- including interest up to January, 2013.

Note 4:

Employee Benefits

(a) Defined contribution to Provident fund and Employee state insurance

The company makes contribution towards employees'' provident fund and employees'' state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 3,94,899/- (P.Y. Rs. 2,89,648/-) as expense towards contributions to these plans.

Note 5:

The Company operates within a solitary business segment i.e. dealing & manufacturing of chemicals, the disclosure requirements of Accounting Standard -17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

Note 6:

Related Party Disclosures

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below:

(a) List of related parties with whom transactions have taken place during the year and relationship:

Sr. Name of related party Relationship

No.

1 Krishna Orgochem Enterprise over which key management personnel exercise significant influence

2 Adonis Lifecare Private Limited

3 Kandarp K. Amin Key Management Personnel (KMP)

4 Archana K. Amin

5 Archit K. Amin

6 Suchit K Amin Relative of Key Management Personnel

7 Shimoli A. Amin

Note 7:

Statement of Management

(a) The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

(b) Balance Sheet and Statement of Profit and Loss read together with Notes to the accounts thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and results of the Company for the year under review.

Note 8:

The previous year''s figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current year.


Mar 31, 2013

1 Contingent Liabilities and Capital commitments

[Amount in Rs.]

As at As at Particulars 31st March, 2013 31st March, 2012

Contingent Liabilities (See Note 30 below)

Claims not acknowledged by as debt 1,47,07,069 2,13,40,422

Bank Guarantee 1,00,00,000 1,00,00,000

Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for NIL NIL

Other commitments NIL NIL

2 The company had entered in to derivatives contracts (for sale of foreign currency) with HDFC bank Limited which have already been concluded in earlier years. The company had incurred loss on such contracts against which the sum of Rs. 55,06,598/- have already been paid and charged to Statement of Profit and Loss under the head "Loss on Derivative Contract" in financial year 2008-2009. The company had also received summons / show cause notice from Mumbai Debt Recovery Tribunal in the month of May, 2009. In response to the same, based on legal advise, the company had filed its reply with appropriate authority. Pending final outcome, the management is of the opinion that the aforesaid liability is of contingent nature and therefore the company has not recognized as liability for the balance loss ofRs. 1,70,71,269/- including interest.

Further the company had fixed deposit amounting to Rs. 23,64,200/- including interest amounting to Rs. 2,21,821/- accrued thereon with HDFC Bank Limited. During the current financial year the Bank has adjusted the amount of fixed deposit against the aforesaid dues and therefore the company has charged the sum of Rs. 23,64,200/- to statement of profit and loss under the head "Loss on Derivative Contracts".

Consequent to such adjustments the liability in respect of balance loss on account of concluded derivative contracts gets reduced to Rs. 1,47,07,069/- including interest.

3 Employee Benefits

(a) Defined contribution to Provident fund and Employee state insurance

The company makes contribution towards employees'' provident fund and employees'' state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 3,95,460/- (P.Y. Rs. 1,79,360/-) as expense towards contributions to these plans.

4 The Company operates within a solitary business segment i.e. dealing & manufacturing of chemicals, the disclosure requirements of Accounting Standard - 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

5 Balances of Trade Payables, Trade Receivable and Loans and Advances are subject to confirmations and reconciliation if any, by the respective parties.

6 Statement of Management

(a) The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

(b) Balance Sheet and Statement of Profit and Loss read together with Notes to the accounts thereon, are drawn up so as to disclose the information required under the Companies Act, 1956 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and results of the Company for the year under review

7 The previous year''s figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current year.


Mar 31, 2012

The equity shareholders shall have:

(i) One Vote and a poll when present in person (including a body corporate by a duly authorised representative) or by an agent duly authorised under a power of attorney or by aproxy his voting right shall be in proportion to his share of the paid equity share capital of the company. However, no member shall exercise any voting rights in respect of any share registered in his name on which any calls or other sums presently payable by him have not been paid or in regard to which the company has exercised any right of lien,

(ii) subject to the rights of person if any, entitled to share with special rights as to dividends, all dividends shall be declared and paid according to the amount paid or credited as paid to the shares in respect where of the dividend is paid but if and so long as nothing is paid upon any shares in the company , dividends may be decleared and paid according to the amounts of the

(iii) A special resolution sancationing a sale to any other company duly passed pursuant to section 494 of the act may, subject to the provision of the act, in like manner as aforesaid determined that any shares or other consideration receivable by the liquidator be distributed against the memebers otherwise then in accordance with their existing rights and any such determination shall be binding upon all the members subject to the rights of dissent and consequential right conferred by the said section

(a) The Company have calls in arrears / unpaid calls amounting to Rsl.,53,150/-, however it does not have any outstanding calls in due from directors and officers of the company. The company has not forfeited any shares at balance sheet date.

Nature of Security

1 The Term Loans amounting to Rs. 48,96,536/- (P.Y. Rs. 1,12,72,705/-) are secured by mortgage of Land and Building at plot no. 25/9/A and 25/9/B, hypothecation of plant and machinery at plot no. 25/9/A and 25/9/B and FDR. Further it is secured by personal guarantee of Directors.

2 The Vehicle loans amounting to Rs. 16,38,652/- (P.Y.Rs. 15,92,906/-) are secured by Vehicles

1.1 Contingent Liabilities and Capital commitments

[Rs. in lacs]

Particulars As at As at

31 st March, 2012 31 st March, 2011

Contingent Liabilities ( See Note 2.26 below)

Claims not acknowledged by as debt 213.39 187.66

Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for NIL NIL

Other commitments NIL NIL

1.2

(a) The company had entered in to derivatives contracts (for sale of foreign currency) with HDFC bank Limited which have already been concluded in earlier years. The company had incurred the loss on such contracts to the tune of Rs. 259.83 lacs and against the same the sum of Rs. 55.07 lacs have already been paid. The company had also received summons /show cause notice from Mumbai Debt Recovery Tribunal in the month of May, 2009. In response to the same, based on legal advise, the company had filed its reply with appropriate authority. Pending final outcome and as in the opinion of the management the aforesaid liability is of contingent nature, the company has not provided for the balance loss of Rs. 142.45 lacs and interest amounting to Rs. 62.31 lacs aggregating to Rs. 204.76 lacs.

Further the company has placed fixed deposit amounting to Rs. 23.30 lacs including interest amounting to Rs. 1.87 lacs accrued thereon till year end with HDFC bank limited. However the bank has not given any confirmation in respect thereof in view of above referred dues to bank on account of concluded derivative contract. Although the settlement of Fixed Deposit is pending against the aforesaid dues, the company is of the opinion that the dues on account of derivative contract is restricted to Rs. 181.46 only if at all the liability gets crystallized.

(b) The Company has received Sales Tax Assessment orders for the financial year 2006-2007 assessing the Central Sales Tax amounting to Rs. 10.10 lacs and Gujarat Value added Tax amounting to Rs. 7.46 lacs aggregating to Rs. 17.56 lacs payable by the company. The company has recognized principle dues amounting to Rs. 8.92 lacs as statutory dues payable and paid Rs. 6.00 lacs against such demand. However the company has not provided interest amounting to Rs. 6.86 lacs and penalty amounting to Rs. 1.78 lacs aggregating to Rs. 8.64 as the company has preferred an appeal before Joint Commissioner of Commercial Tax (Appeal),hence considered as contingent liability.

1.3 Employee Benefits

(a) Defined contribution to Provident fund and Employee state insurance The company makes contribution towards employees' provident fund and employees' state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 1,79,360/- (P.Y Rs. 1,57,682/-) as expense towards contributions to these plans.

1.4.

The Company operates within a solitary business segment i.e. dealing & manufacturing of chemicals, the disclosure requirements of Accounting Standard -17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

1.5

Related Party Disclosures

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below:

1.6 Change in name and Object Clause

During the year, the company has applied for change in name from Shri Chlochem Limited to Archit Organosys Limited. Subsequent to year end, on receipt of fresh certificate of incorporation consequent upon change of name date 19th may, 2012, the name of the company is changed to Archit Organosys Limited.

1.7 Balances of unsecured loans, sundry creditors, sundry debtors, loans and advances and amounts due to sundry debtors are subject to confirmations and reconciliation if any, by the respective parties.

1.8 In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the Balance Sheet. Provision for all known liabilities has been made and is not in excess of amount reasonably necessary.

1.9 Additional information, to the extent applicable, required under para 5(8) of part-ll of Schedule VI to the Companies Act, 1956.

1.10 The previous year's figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current year.


Mar 31, 2011

1. The company had entered in to derivatives contracts (for sale of foreign currency) which have been concluded by the previous period. The company had incurred the loss on such contracts to the tune of Rs. 242.73 lacs and against the same the sum of Rs. 55.07 lacs have already been paid. The company had also received summons /show cause notice from Mumbai Debt Recovery Tribunal in the month of May, 2009. In respect to the same, based on legal advise, the company had filed its reply with appropriate authority. Pending final outcome and as in the opinion of the management the aforesaid liability is of contingent nature, the company has not provided for the balance loss of Rs.142.45 lacs and Interest amounting to Rs, 45,21 lacs aggregating to Rs. 187.66 lacs.

2. Employee Benefits

(a) Defined contribution to Provident fund and Employee state insurance

The company makes contribution towards employees' provident fund and employees' state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs.1,57,682/- (P.Y. Rs. 51,359/-) as expense towards contributions to these plans.

(b) Defined Contribution Benefit Plans(Gratuity)

The following table sets out the status of the gratuity scheme non funded plan as at 31st March, 2011.

3. The Company operates within a solitary business segment i.e. dealing & manufacturing of chemicals, the disclosure requirements of Accounting Standard - 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

4. Related Party Disclosures

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below:

5. The Company estimates deferred tax/(charge) using the applicable rate of taxation based on the Impact of timing difference between financial statements and estimated taxable Income for the current year.

6. Balances of unsecured loans, sundry creditors, sundry debtors, loans and advances and amounts due to sundry debtors are subject to confirmations and reconciliation tf any, by the respective parties. *

7. in the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the Balance Sheet. Provision for all known liabilities has been made and is not in excess of amount reason a be necessary.

8. The company is yet to initials the process of obtaining the confirmation from suppliers who have registered them selves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). In the absence of relevant information relating to the suppliers registered under the Micro, Small and Medium Enterprises (Development) Act, 2006, the balance due to Micro, Small and Medium Enterprises at year end and interest paid or payable under MSMED Act, 2006 during the year could not be compiled and disclosed.


Mar 31, 2010

1. The company had entered in to derivatives contracts (for sale of foreign currency) which have been concluded during the period under review. The company has incurred the loss on such contracts to the tune of Rs. 225.64 lacs and against the same the sum of Rs. 55.07 lacs have already been paid. The company has also received summons /show cause notice from Mumbai Debt Recovery Tribunal in the month of May, 2009. In respect to the same, based on legal advise, the company has filed its reply with appropriate authority. Pending final outcome and as in the opinion of the management the aforesaid liability is of contingent nature, the company has not provided for the balance loss of Rs. 142.45 lacs and interest amounting to Rs. 28.12 lacs aggregating to Rs. 170.57 lacs.

2. Employee Benefits

(a) Defined contribution to Provident fund and Employee state insurance

The company makes contribution towards employees provident fund and employees state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs.51,359/- (P.Y. Rs. 1,07,237/-) as expense towards contributions to these plans.

3. The Company operates within a solitary business segment i.e. dealing & manufacturing of chemicals, the disclosure requirements of Accounting Standard - 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

4. Related Party Disclosures:

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below:

(a) List of related parties with whom transactions have taken place during the year and relationship:

Sr.No. Name of related party Relationship

1 Krishna Orgochem Enterprise over which key management

2 Archit Polymers Pvt. Ltd. personnel exercise significant influence

3 Kandarp K. Amin Key Management Personnel

4 Archana K. Amin Key Management Personnel

5 Archit K. Amin Relative of Key Management Personnel

5. The Company estimates deferred tax/(charge) using the applicable rate of taxation based on the impact of timing difference between financial statements and estimated taxable income for the current year.

6. Pursuant to Accounting Standard-29, Provisions, Contingent Liabilities and Contingent Assets, the disclosure relating to provisions made in the accounts for the year ended 315t March, 2010 is as follows:

Contingent Liabilities [Amount in Rs.]

Particulars As at As at

31/03/2010 30/09/2009

Claims not acknowledge by 170.57 157.87 the company (See Note No. 2 above)

Provisions [Amount in Rs.]

Particulars

Provision for Excise duty and other Expenses

Opening Balance 4.53.910

Additions 7.35.220

Payment 4.53.910

Reversals NIL

Closing Balance 7.35.220



7. Balances of unsecured loans, sundry creditors, sundry debtors, loans and advances and amounts due to sundry debtors are subject to confirmations and reconciliation if any, by the respective parties.

8. In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the Balance Sheet. Provision for all known liabilities has been made and is not in excess of amount reasonably necessary.

9. The company is yet to initiate the process of obtaining the confirmation from suppliers who have registered them selves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). In the absence of relevant information relating to the suppliers registered under the Micro, Small and Medium Enterprises (Development) Act, 2006, the balance due to Micro, Small and Medium Enterprises at year end and interest paid or payable under MSMED Act, 2006 during the year could not be compiled and disclosed.

10. The previous years figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current year.


Sep 30, 2009

1. The company had entered in to derivatives contracts (for sale of foreign currency) which have been concluded during the period under review. The company has incurred the loss on such contracts to the tune of Rs. 212.94 lacs and against the same the sum of Rs. 55.07 lacs have already been paid. The company has also received summons /show cause notice from Mumbai Debt Recovery Tribunal in the month of May, 2009. In respect to the same, based on legal advise, the company has filed its reply with appropriate authority. Pending final outcome and as in the opinion of the management the aforesaid liability is of contingent nature, the company has not provided for the balance loss of Rs. 142.45 lacs and interest amounting to Rs. 15.42 lacs aggregating to Rs. 157.87 lacs.

2. The company has placed two fixed deposits amounting to Rs. 8,00,000/- and Rs. 9,00,000/- aggregating to Rs. 17,00,000/- with HDFC Bank Limited as margin money towards derivative contracts entered into by the company. The aforesaid fixed deposits have been matured during the period under review. However the Bank has neither repaid the matured amount to company for confirmed the balance with them in fixed deposits since the liability on account of option loss under derivative contracts is under dispute and pending for recovery with Mumbai Debt Recovery Tribunal. In the absence of any confirmation, the company has neither provided for interest amounting to Rs. 1.94 lacs accrued thereon till maturity date nor adjusted the amount of fixed deposits against option loss.

3. Employee Benefits

(a) Defined contribution to Provident fund and Employee state insurance

The company makes contribution towards employees provident fund and employees state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognized Rs. 1,07,237 /- (P.Y. Rs. 64,908/-) as expense towards contributions to these plans.

4. The Company operates within a solitary business segment i.e. dealing & manufacturing of chemicals, the disclosure requirements of Accounting Standard - 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

5. Related Party Disclosures:

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below:

(a) List of related parties with whom transactions have taken place during the year and relationship:

Sr.No. Name of related party Relationship

1 Krishna Orgochem Enterprise over which key management

2 Archit Polymers Pvt. Ltd. personnel exercise significant influence

3 Kandarp K. Amin Key Management Personnel

4 Archana K. Amin Key Management Personnel

5 Archit K. Amin Relative of Key Management Personnel

6 Shri Chlochem Globle FZE 100% Subsidiary Company



6. The Company estimates deferred tax/(charge) using the applicable rate of taxation based on the impact of timing difference between financial statements and estimated taxable income for the current year.

7. The company had invested the sum of Rs. 12.61 lacs by way ot share capital in subsidiary company Shri Chlochem Global FZE, Dubai. The subsidiary company has discontinued its operations and therefore consolidation of financial statements of subsidiary company is not warranted.

8. Pursuant to Accounting Standard-29, Provisions, Contingent Liabilities and Contingent Assets, the disclosure relating to provisions made in the accounts for the year ended 30th September, 2009 is as follows :

Contingent Liabilities [Amount in Rs.]

Particulars As at 30/09/2009 2007-2008

Claims not acknowledge by the company-Excise Duty - Not Determined

Provisions [Amount in Rs.]

Particulars

Provision for Gratuity

Opening Balance 85,412

Additions 3,50,400

Utilisation -

Reversals -

Closing Balance 4,35,812



9. Balances of unsecured loans, sundry creditors, sundry debtors, loans and advances and amounts due to sundry debtors are subject to confirmations and reconciliation if any, by the respective parties.

10. In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the Balance Sheet. Provision for all known liabilities has been made and is not in excess of amount reasonably necessary.

11. The company is yet to initiate the process of obtaining the confirmation from suppliers who have registered them selves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). In the absence of relevant information relating to the suppliers registered under the Micro, Small and Medium Enterprises (Development) Act, 2006, the balance due to Micro, Small and Medium Enterprises at year end and interest paid or payable under MSMED Act, 2006 during the year could not be compiled and disclosed.

12. Additional information pursuant to provision of para 3, 4C and 4D of Part-ll of Schedule-VI of the Companies Act, 1956:

13. The previous years figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current year.

 
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