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Notes to Accounts of Sadhana Nitro Chem Ltd.

Mar 31, 2017

Right, preferences and restriction attached to each class of shares.

The company has only one class of equity shares having at par value of Rs. 10/- per Share. Each holder of equity share is entilted to one vote per share. The company declares and pays dividend in indian Rupees. The dividend proposed by the Board of Director is subject to the approval of the share holders in the ensuing Annual general meeting. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to number of shares held by share holder.

The company has only one class of Preference shares having par value of Rs.. 10/- per Share. The Preference shares are non-convertible in nature bearing fixed dividend rate of 9%. The non-convertible, cumulative, redemable preference shares shall be redeemed at the option of the company any time after 3 (three) years but not later than 10 (Ten) years from the date of issue & as decided by the Board of Director in accordance with the term of the issue and in accordance with the provision of the Companies Act, 2013, or any re -enactment thereof.

Note No 1(1)

Loan of Rs. 20.89 Lacs under sales tax deferred scheme Is Interest free and Is repayable In 15 Installment from April-2012 to April -2018

Note No 1 (2)

a) Inter Coporate Deposit are repayable in quaterly after April -2018 and earring interest Rate of 15% to 16%

Note No 2 (1)

As notified by Ministry of Corporate Affairs (MCA) vide its notification no.G.S.R. 308(E), the details of Specified Bank Notes (SBN) held and transacted during the period from 8th November,2016 to 30th December,2016 as provided in the table below:-

Defined Benefit Plan

The Employee’s gratuity fund scheme managed by a trust is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority promotion and other relevant factor including supply and demand in the employment market. The above information is certified by actuary. The expected rate on plan assets is determined considering several applicable factor, mainly the composition of plan assets held assessed risk, historical result of return on plan assets and the company’s policy for plan assets management.

Note No 3 SEGMENT REPORT

In accordance with AS-17 ‘Segment Reporting’ segment information has been given in the consolidated financial statements of Sadhana Nitro Chem Ltd. and therefore no separate disclosure on segment information is given in these financial statements.

Ill) Disclosure in respect of material related party transaction during the year

(1) Sale of Good to Anuchem BVBA, Belgium Rs. 9,29,27,225 (Rs. 7,62,52,149)

(2) Loan Accepted from Manekchand Panachand Trading & Investment Co.Pvt Ltd. (Holding Company) Rs. 2,69,12,313 (P.YRs. 9291000)

(3) Loan Repayment from Manekchand Panachand Trading & Investment Co.Pvt Ltd. (Holding Company)Rs. 2,69,12,313 (P.YRs. 86,52,313)

Note No 4

Previous year’s figures have been regrouped and re-classified wherever necessary.


Mar 31, 2016

Rights, preferences and restrictions attached each class of shares.

The company has only one class of equity shares having at par value of '' 10/- per Share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Director is subject to the approval of the share holders in the ensuing Annual general meeting. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to number of shares held by share holder. The company has only one class of Preference shares having at par value of '' 10/- per Share. The Preference shares are non-convertible in nature bearing fixed dividend rate of 9%. The non-convertible, cumulative, redeemable preference shares shall be redeemed at the option of the company any time after 3 (three) years but not later than 10 (Ten ) years from the date of issue & as decided by the Board of Director in accordance with the term of the issue and in accordance with the provision of the Companies Act, 2013, or any re -enactment thereof.

Defined Benefit Plan

The Employee''s gratuity fund scheme managed by a trust is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation ,take into account inflation, seniority, promotion and other relevant factor including supply and demand in the employment market. The above information is certify by actuary.

The expected rate on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risk, historical results of return on plan assets and the company''s policy for plan assets management.

I) List of related parties

i) Holding Company - M/s. Manekchand Panachand Trading Investment Co. Pvt. Ltd.

ii) Subsidiaries - M/s. Anuchem B.V.B.A Belgium

iii) Promoters Having Significant Influence - M/s. Lifestyle Networks Ltd.

M/s. I.B.I. Engineering & Services Pvt. Ltd.

M/s. Amnisera Corporation

M/s. Manekchand Panachand & Co.

M/s. Chandra Net Ltd.

II) Key Management Personal

i) Shri. A. D. Javeri - Chairman & Managing Director

Smt. Seema A. Javeri wife of Shri. A. D. Javeri Smt. Molina D. Javeri mother of Shri. A. D. Javeri Mr. Abhishek A. Javeri son of Shri. A. D. Javeri

ii) Abhishek A . Javeri - Director & CFO

iii) Shri. N. R. Jani - Company Secretary

III) Disclosure in respect of material related party transaction during the year

(1) Sale of Good to Anuchem BVBA, Belgium Rs, 7,62,52,149 (PY Rs, 1,62,32,722) (2) Receiving Services to Amnisera Corporation (Associate Company) Rs, 4,63,375 (PY. Rs, 1,62,543) (4) Loan Accepted from Manekchand Panachand Trading & Investment Co. Pvt. Ltd. (Holding Company) Rs, 92,91,000 (PY. Rs, Nil) (5) Loan Repayment from Manekchand Panachand Trading & Investment Co.Pvt. Ltd. (Holding Company) Rs,8 65 2313 (PY. Rs, Nil)

NOTE - 1

The order book position has improved during the financial year as compared to the past including long term supply agreements. This will improve the overall performance of the company in addition to absorbing accumulated losses. Hence although there are accumulated losses as on 3181 March, 2016, considering the overall strategy, going concern would not be affected and accordingly financial statements have been prepared.

NOTE - 2

Previous year''s figures have been regrouped and re-classified wherever nec


Mar 31, 2015

Note (1)

The Loan ofRs. 35.00 Laks from ICICI Bank having interest of 10.91 % is repayable in 60 monthly installment of Rs. 0.75 lakhs from January2012to Oct- 2016

Note (2)

The Total loan ofRs. 20.90 lakhs from SICOM Ltd. Consisting of 3 loans Rs. 12.10 lacs, Rs. 5.81 lacs and Rs. 2.98 lacs. This loan is interest free under Sales Tax Deferral Scheme. This loan is repayable in 15 installments from April 2012 and last installments falling due on April 2018.

Defined Benefit Plan

The Employee's gratuity fund scheme managed by a trust is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognzied in the same manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority promotion and other relevent factor including supply and demand in the employment market. The above information is certified by actuary.

The expected rate on plan assets is determined considering several applicable factor, mainly the composition of plan assets held assessed risk, historical result of return on plan assets and Ihe company's policy for plan assets management.

3) List of related parties

i) Holding Company - M/s, Manekchand Panachand Trading Investment Co, Pvt. Ltd.

ii) Subsidiaries - M/s. Anuchem B.V.B.A., Belgium

Associates - M/s. Lifestyle Networks Ltd.

M/s. Phthlo Colours & Chemicals (I) Ltd.

M/s. Amnisera Corporation

II) Key Mangement Personal

i) Shri. A.D Javeri - Chairman & Managing Director

ii) Shri N.R.Jani - Company Secretary

iii) Shri Sanjeev P. Shah - Chief Finance Officer

III) Disdousre in respect of material related party transaction during the year

(1) Sale of Good to Anuchem BVBA, Belgium Rs 1,62,32,722 (PY Rs 7,37,96,603) (2) Anuchem PTE Ltd Singapore Rs Nil (Rs 67,55,275) (3) Receiving Services from Amnisera Corp. (Associate) Rs 4,63,375 (PY Rs.1,62,543) (4) Purchase of Asset from Manekchand Panachand Trading Inv.Co Pvt .Ltd (Holding Company)Rs 7,35,00,000 (PY Rs.Nil) (5) Guarantee Commission paid to Asit D Javeri (KMP)Rs 24,00,000 (PY Nil) (6) Loan Repayment to Asit D Javeri (KM P) Rs Nil (PY Rs.12,00,000)

NOTE 4

During the years, the company reassessed useful life of its fixed assets as per Schedule II of Companies Act, 2013. Accordingly,an amount of Rs.21,93,101/- has been recognized in the opening balance of retained earning where the remaining useful life of the assets isNIL.

NOTE 5

The order book position has improved during the financial year as compared to the past including long term supply agreements. During the period, the company has disposed most of its non core assets and the proceeds have been utilized to settle some of the high costdetrt and also towards working capital requirements. This in cumulative perspective will improve the overall performance of the company in addition to absorbing accumulated losses. Hence although there are accumulated losses as on 31 St March, 2015, considering the overall strategy, going concern would not be affected and accordingly financial statements have been prepared.

NOTE 6

The Current financial statements have been prepared for 12 months whereas the previous period was for 9 months and accordingly previous year figures are not comparable. Previous year's figures have been reclassified in accordance with the requirements applicable during the current period.


Mar 31, 2014

Note 1(i)

The loan of Rs. 35.00 lakhs from ICICI Bank having interest of 10.91% is repayable in 60 monthly installments of Rs. 0.75 lakhs each from January 2012 to July 2016.

Note 2(ii)

The Total loan of Rs. 20.90 lakhs from SICOM Ltd. consisting of 3 loans of Rs. 12.10 lacs, Rs. 5.81 lakhs and Rs. 2.98 lakhs. This loan is interest free under Sales Ta x Deferral Scheme. This loan is repayable in 15 installments from April 2012 and last installment falling due on April 2018.

Note 3(iii)

This interest free loan has been given by Chairman and Managing Director Pursuant to agreement with secured lenders and is repayable only after repayment of secured term loan.

Defined Benefit plan

The employee''s gratuity fund scheme managed by a trust is defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation ,take into account inflation, seniority, promotion and other relevant factor including supply and demand in the employment market. The above information is certify by actuary.

The expected rate on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risk, historical results of return on plan assets and the company''s policy for plan assets management.

NOTE - 4

In accordance with AS-17 ''Segment Reporting'' segment information has been given in the consolidated financial statements of the company and therefore no separate disclosure on segment information is given in these financial statements.

I) List of Related Parties

i) Holding Company - M/s. Manekchand Panachand Trading Investment Co. Pvt. Ltd.

ii) Subsidiaries - M/s. Anuchem B.V.B.A., Belgium

M/s. Anuchem Pte. Ltd., Singapore

iii) Associate Companies

- M/s. Lifestyle Networks Ltd.

M/s. IBI Engineering & Services Pvt. Ltd. M/s. Amnisera Corporation M/s. Manekchand Panachand & Co. M/s. Chandra Net Pvt. Ltd.

II) Key Management Personnel & their relatives i) Shri A.D.Javeri

- Chairman & Managing Director

Smt. Seema A. Javeri wife of Shri A.D. Javeri Smt. Molina D. Javeri Mother of Shri A.D. Javeri Mr. Abhishek A. Javeri son of Shri A.D. Javeri

ii) Shri N.R. Jani - Wholetime Director & Company Secretary

III ) Disclosure in respect of material related party transactions during the period.

(1) Sale of Goods to Anuchem B.V.B.A., Belgium Rs. 7,37,96,603/- (P.Y. Rs. 18,95,57,392/-) (2) Anuchem Pte Ltd., Singapore Rs. 67,55,275/- (P.Y. Rs. 3,11,63,124/-) (3) Receiving Services to Amnisera Corporation (Associated Company) Rs. 1,62,543/- (P.Y. Rs.1 5,88,652/-) (4) Interest Expenses to Manekchand Panachand Trading & Investment Co.Pvt.Ltd.(Holding Company) Rs. Nil (P.Y. Rs. 45,18,399/-) (5) Loan Accepted to Manekchand Panachand Trading & Investment Co.Pvt.Ltd. (Holding Company) Rs. Nil (P.Y. Rs. 6,10,54,474/-) (6)Loan Repayment to Asit D. Javeri (Key Management) Rs. 12,00,000/- (P.Y. Rs. 38,00,000/-) ( 7 ) Fixed Deposit Received from Asit D. Javeri (Key Management) Rs. Nil (P.Y. Rs. 12,00,000/-).

NOTE - 5

Income Tax assessments for the assessment year 98-99 and 99-2000 were reopened under section 148 of the Income Tax Act, 1961 for disallowing claim under section 80HHC of the Act and assessments were completed under section 144 of the Act. The Hon''ble Bombay High court in the company''s writ petition has issued rules and the matter is pending. Company has been legally advised that it bound to succeed in the writ and hence against demand of Rs. 1,54,19,469/-for these year no provision is considered necessary. provision existing in books of Rs. 93,42,356/-is considered adequate to cover liability estimated to arise out of order giving effect to the orders of Hon''ble Supreme Court for the assessment year 2001-02 to 2005-06 that are awaited and in respect of subsequent year.

NOTE - 6

The order book position has improved during the financial year as compared to the past including long term supply agreements. During the period, the company has disposed most of its non core assets and the proceeds have been utilized to settle some of the high cost debt and also towards working capital requirements. This in cumulative perspec- tive will improve the overall performance of the company in addition to absorbing accumulated losses. Hence although there are accumulated losses as on 31St March, 2014, considering the overall strategy, going concern would not be affected and accordingly financial statements have been prepared.

NOTE - 7

The Approval towards Managerial Remuneration of Whole time Director & Company Secretary is awaited from the Central Government.

NOTE - 8

The Current financial statements have been prepared for 9 months whereas the previous year was prepared for 15 months and accordingly previous year figures are not comparable. Previous year''s figures have been re-classified in accordance with the requirements applicable during the current period.


Jun 30, 2013

NOTE - 1

Income Tax assessments for the assessment year 98-99 and 99-2000 wear reopened under section 148of income tax act 1961 for disallowing claim under section 80HHC of the act and assessment were completed under section 144of the act .in the company writ petition before the Hon.ble Bombay High courtrules issued and matter is pending. Company has been legally advised that it bound to succeed in the writ and hence again demand of Rs.1, 54,19,469/- for these year no provision is considered necessary, provision existing in books of Rs. 93 42 356/- is considered adequate to cover liability estimated to arise out of order giving effect to the orders of Hon''able Supreme Court for the assessment year 2001-02 to 2005-06 that are awaited and in respect of subsequent year.

NOTE - 2

The order book position has improved during the financial year as compared to the past including long term supply agreements. In order to execute these orders on a timely basis which will have positive impact on overall performance, the company has strategically initiated disposal of their non-core fix assets which would generate sufficient working capital. These measures will improve overall financial position of the company in addition to absorbing accumulated losses. Hence, although there are accumulated losses as on June 30*, 2013, considering the overall strategy, going concern would not be affected and accordingly financial statements have been prepared.

In addition, Disposal of non core fixed assets would be sufficient to reverse deferred tax assets created on account of unabsorbed depreciation as the proposed gain of these assets and resultant taxable income would be higher than the carrying value of deferred tax assets.

NOTE - 3

The unamortized balance in Foreign currency monetary item translation difference Account arising out of revaluation of Long term Foreign Currency monetary items which are being amortized over the period of such items have disclosed in Note on Reserves and Surplus (Note 3).

NOTE - 4

The current financial statements have been prepared for 15 months and accordingly previous year figures are not comparable. Previous year''s figures have been re-classified in accordance with the requirements applicable during the current period.


Mar 31, 2012

Rights, preferences and restrictions attached each class of shares.

The company has only one class of equity share having at par value of Rs.10/-per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the share holders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to number of shares held by the share holder.

(Note 1 (1))

a] WCTLIoan ofRs 444.10 lakhs (P.Y. Rs 671.12 lakhs) having interest of 7.25% to 7.50% is repayable in 16 quarterly installments of Rs 31.25 lakhs from April 2011 to January 2015.

b] Term Loan ofRs 50.61 lakhs (P.Y. Rs69.98 lakhs) having interest of 14.50% to 14.50% is repayable in 6 equal quarterly installments after a moratorium of 18 months. This loan is repayable from November 2010 to June 2012.

c] WCTLIoan of Rs 243.12 lakhs (P.Y. Rs 283.29 lakhs) having interest of 15.25% to 15.25% is repayable in 48 monthly installments fromApril, 2010 to April 2013.

d] Term Loan ofRs22.81 lakhs (P.Y. Rs 123.32 lakhs) having interest of 13.50% to 14% is repayable in 60 monthly installment of Rs 8.30 lakhs starting from May 2007 to May 2012.

e] WCTL loan of Rs 446.41 lakhs (P.Y.Rs 474.90 lakhs) having interest of 7.25% to 7.50% is repayable in 15 quarterly installment from first July, 2010 to three installment ofRs 10.00 lakhs each, next 4 installments of Rs 15.00 lakhs each, next 4 installments ofRs 40.00 lakhs each, and last three installments ofRs 56.25 lakhs each.

f] Term Loan ofRs 69.95 lakhs (P.Y. Rs153.38 lakhs) having interest of 14.50% to 14.50% is repayable in 10 quarterly installment fromApril 2010 to first four installments ofRs 17.00 lakhs each, next 4 installments ofRs 21.00 lakhs each and last 2 installments ofRs 17.75 lakhs each.

g] Term Loan ofRs 113.88 lakhs (P.Y. Rs 419.88 lakhs) having interest of 14.50% to 14.50% is repayable in 10 quarterly installments fromApril 2010 to first four installments ofRs 33.00 lakhs, next 4 installments ofRs 42.00 lakhs and last installments of Rs 37.50 lakhs each.

h] Details of continuing default as on 31st March, 2012.

State Bank of Patiala Rs 42.00 lakhs due on 31-03-2012 not yet paid, State Bank of Patiala Rs 36.00 lakhs (USD 70768) due on 31 -03-2012 paid on 18-06-2012 (P. Y.- State Bank of Patiala Rs 10.00 lakhs (USD 22090) due 30-09-2010, paid on 24-12-2010 Rs41.67 lakhs (USD 92490) due on 31-03-2011 paid on 12-05-2011.)

Note 1(2)

The loan ofRs 35.00 lakhs from ICICI Bank having interest of 10.91 % is repayable in 60 monthly installments of Rs 0.75 lakhs each from January 2012 to July 2016.

Note 1(3)

Inter corporates deposits Rs 86.66 lakhs (P.Y. Rs 91.26 lakhs) are interest free and are repayable on March, 2015.

Note 1(4)

The Total loan of Rs 20.90 lakhs from SICOM Ltd. consisting of 3 loans ofRs 12.10 lacs,5.82 lacs and Rs 2.98 lacs. This loan is interest free under Sales Tax Deferral Scheme. This loan is repayable in 15 installments from April 2012 and last installment falling due on April 2018.

The Company has investment of X 25,50,000 comprising of 2,55,000 equity shares ofRs 10/- each (51% of the equity capital) in Lifestyle Networks Ltd., a subsidiary company. As at 31st March, 2012, accumulated loss of the subsidiary of Rs 4,99,65,059/- has exceeded capiial. Desides investments, to the subsidiary the Company had given guarantees to their lenders who have given secured loan to them the balance of which as on the Balance Sheet date is Rs 62,07,857/-. Based on the subsidiary's performance during the financial year and other business plans coupled with the fact that out of the loans advanced to them in the past have been recovered during the year no provision is considered necessary in respect of the investments and guarantees and loan advanced to them.

Defined Benefit plan

The employee's gratuity fund scheme managed by a trust is defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized manner as gratuity.

The estimated rate of escalation in salary considered in actuarial valuation ,take into account inflation, seniority, promotion and other relevant factor including supply and demand in the employment market. The above information is certify by actuary.

The expected rate on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risk, historical results of return on plan assets and the company's policy for plan assets management.

NOTE - 2

Contingent Liabilities not provided for:

(a) Estimated amount of contracts remaining to be executed on capital accounts (Net of Payments) - 18,47,390

(b) In respect of Guarantee given by the Company's Banker for Central Excise and other purposes 25,000 25,000

(c)In respect of corporate guarantee given by the company to the bank for Loans borrowed by Indian subsidiary 62,07,857 2,95,48,508

NOTE:

a) The company is mainly engaged in manufacturing of Chemical Intermediates having similar risks and returns, constituting a single segment. Revenue from other activities pursued are insignificant. Operations of the company are classified into two primary Geographical Segments namely Exports and Loal. These segments have been identified and reported taking into account exchange control regulations, underlying currency risks and the internal financial reporting segments.

b) Segment Revenue and Expenses

i) Revenue directly attributable each of the segments is shown under sgement revenue.

ii) Segment expenses include directly attributable and certain indirect expenses allocated on a reasonable basis. It excludes interest expenses, depreciation and other common expenses which cannot be allocated on a reasonable basis.

c) Segment Assets and Liablities

Fixed Assets used in the companies business are not identifiable to any particular reportable segment; consequently management believes that it is not practical to provide segment disclosures relating to capital employed.

Ill) Disclosure in respect of material related party transactions during the year.

(1) Sale of Goods to Anuchem B.V.B.A., Belgium Rs 28,99,24,002/- (P.Y. Rs 10,08,49,541/-) (2) Anuchem Pte Ltd., Singapore Rs 2,21,58,969/- (P.Y. f Nil) (3) Receiving Services to Amnisera Corporation (Associated Company) Rs 13,18,581/- (P.Y. Rs 10,34,181/-) (4) Interest Expenses to Manekchand Panachand Trading & Investment Co.PvLLtd.(Holding Company) Rs 42,12,838/-(P.Y. Rs 21,34,213/-) (5) Interest Expenses to Manekchand Panachand & Co. (Associate Company) Rs 42,12,838/- (P.Y. Rs 21,34,213/-) (6) Interest Income to Life Style Network Ltd. (Subsidiary Company) Rs Nil (P.Y Rs 16,11,690/-) (7) Loan Accepted to Manekchand Panachand Trading & Investment Co.Pvt.Ltd. (Holding Company) Rs 3,83,85,000/- (P.Y. Rs 4,44,60,000/-), Manekchand Panachand & Co. (Associate Company)Rs. Nil (P.Y. Rs .27,50,000/-) (8) Loan Repayment to Lifestyle Networks Ltd. (Subsidiary Company) Rs Nil (P.Y. Rs 2,43,07,166/-), Asit D. Javeri (Key Management) Rs 32,52,000/-(P.Y. Rs 4,50,000/-) (9) Fixed Deposit Received to Asit D. Javeri (Key Management) 112,00,000/- (P.Y. Rs 12,00,000/-).

NOTE - 3

income Tax assessments for the assessment years 98-99 and 99-2000 were reopened under section 148 of the Income Tax Act, 1961 for disallowing claim under section 80 HHC of the Act and assessments were completed under section 144 of the act. In the Companies Writ Petition before the Hon'ble Bombay High Court rule was issued and matter is pending. Company has bee legally advised that it is bound to succeed in the Writ and hence against demand of Rs 1,54,19,469/-for these years no provision is considered necessary. Provision existing in books of X 93,42,356/- is considered adequate to cover liability estimated to arise out of order giving effect to the orders of Hon'ble Supreme Court for the assessment year 2001 -02 to 2005-06 that are awaited and in respect of subsequent years.

NOTE - 4

The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) (Second Amendment Rules) 2011 on Accounting Standard 11 (AS -11) notified by Government of India on Deceember 29,2011. Accordingly an amount ofRs 1,13,13,928/- has been transferred to the Foreign Currency Monetary items Translation difference account to be amortised over the balance period of loan and an amount of Rs 27,58,520/- has been capatialised as part of cost of asset and shall be depreciated over balance life of asset. This has the effect of increasing the profits for the period and corresponding decrese in debit balance in Profit and Loss Account byRs 1,20,66,214/-.

NOTE - 5

Cinsidering the turn around in the global economy coupled with the fact that the order book position has improved including long term supply agreement from customers, the company is confident about improvement in financial position in the coming years which would in turn absorb accumulated losses. Hence the company feels that although there are accumulated losses as on March 31,2012, considering the current business trend, going concern would not be affected and accordingly accounts have been prepared.


Mar 31, 2011

1) The previous year's figures have been reworked, regrouped and reclassified wherever necessary.

2) Considering the turn around in the Global economy coupled with the fact that the Order Book position has improved including long term supply agreement from customers, the company is confident about improvement in financial position in the coming years which would in turn absorb accumulated losses. Hence, the company feels that although there are accumulated losses as on March 31,2011, considering the current business trend, going concern would not be affected and accordingly accounts have been prepared.

3) The Company has investment of Rs. 25,50,000 comprising of 2,55,000 equity shares ofRs. 10/- each (51 % of the equity capital) in Lifestyle Networks Ltd., a subsidiary company. As at 31st March, 2011, accumulated loss of the subsidiary of Rs. 5,36,27,881/- has exceeded in capital. Besides investments, to the subsidiary the Company had given guarantees to their lenders who have given secured loan to them the balance of which as on the Balance Sheet date is Rs.2,95,48,508/-. Based on the subsidiary's performance during the financial year and business plans that are in the process of being implemented, coupled with the fact that out of the loans advanced to them in the past have been recovered during the year no provision is considered necessary in respect of the investments and guarantees and loan advanced to them.

4) Expenditure attributed to Fixed assets in the course of construction Rs. 30,46,464/- (RY Rs. 2,47,080/-)

5) Income tax assessments are completed up to and inclusive of the year ending 31/03/2008. In the writ petitions filed before H'ble Bombay High Court in respect of the re-opened Assessment pertaining to year ending 31st March 1998 and 31st March 1999, rule was issued and that for the year ending 31st March 2001 has been restored to C.I.T (Appeals) for re-adjudication. Company has been advised that for these years and in the appeal that is pending before C.I.T (Appeals) for the year ended 31-03-2007, based on judicial precedent, no provision is required to be made towards the outstanding demands of Rs. 1,42,09,603/-. For the year ending 31-03-2002 to 31-03-2005, company's special leave petition are pending before H'ble Supreme Court and for these years provision (net of payments made) in the accounts of Rs.38,38,909/- is considered adequate.

6) Schedule "D" - Unsecured Loan

a) Fixed Deposits from others include Rs. 75,00,000/- of deposits which is personally guaranteed by the Chairman & Managing Director.

b) Other loan from Directors include 12,13,093/- (RY Rs. 7,63,093/-) as part of promoters contribution pursuant to the convenant contained in the sanction letters of lender bank.

7) Other debtors includes Rs. 3,74,64,587/- (RY Rs. 1,92,08,392/-) from wholly owned subsidiary.

8) a) Sundry Creditors includes Rs. 15,80,276/- (RY Rs. 5,16,773/-) being total outstanding dues to Small Scale Industrial Undertakings to the extent identified on the basis of information available with the company.

b) Names of Small Scale Industrial Undertaking and Disclosure under MSMEDA to whom the Company owes as on 31st March, 2011, an amount exceeding Rs. 1.00 Lac which is outstanding for more than 30 days; (i) R.S. Samant Engineers Pvt.Ltd. Rs. 7,95,671/- (ii) Kris Flexipacks Rs. 3,64,165/- (iii)Amod Engineering Works Rs. 2,16,415/- (iv) Niki Chemical industries Rs. 2,04,025/-.

9) SEGMENT REPORT

a) The company is mainly engaged in manufacturing of Chemical Intermediates having similar risks and returns, constituting a single segment. Revenue from other activities pursued are insignificant. Operations of the company are classified into two primary Geographical Segments namely Exports and Local. These segments have been identified and reported taking into account exchange control regulations, underlying currency risks and the internal financial reporting segments.

b) Segment Revenue and Expenses :-

i) Revenue directly attributable each of the segments is shown under segment revenue.

ii) Segment expenses include directly attributable and certain indirect expenses allocated on a reasonable basis. It excludes interest expenses, depreciation and other common expenses which cannot be allocated on a reasonable basis.

c) SegmentAssets and Liabilities :-

Fixed Assets used in the companies business are not identifiable to any particular reportable segment; consequently management believes that it is not practical to provide segment disclosures relating to capital employed

10) RELATED PARTY DISCLOSURES.

I) List of Related Parties

i) Holding Company M/s. Manekchand Panachand Trading Investment Co. Pvt. Ltd.

ii) Subsidiaries M/s. Anuchem B.VBA, Belgium

M/s. Anuchem Pte. Ltd., Singapore

M/s. Lifestyle Networks Ltd.

iii) Associate Companies M/s. IBI Engineering & Services Pvt. Ltd.

M/s.Amnisera Corporation

M/s. Manekchand Panachand & Co.

M/s. Chandra Net Pvt. Ltd.

II) Key Management Personnel

i) ShriA.D.Javeri Chairman & Managing Director

Smt. SeemaA. Javeri wife of Shri A.D. Javeri Smt. Molina D. Javeri Mother of Shri A.D. Javeri Mr.AbhishekA. Javeri son of ShriA.D. Javeri

ii) ShriN.R.Jani Director & Company Secretary

III) Disclosure in respect of material related party transactions during the year.

(1) Sale of Goods to Anuchem B.VBA, Belgium Rs. 10,08,49,541/- (RY Rs. 8,66,39,697/-) (2) Receiving Services to Amnisera Corporation (Associated Company) Rs. 10,34,181/- (RY Rs. 7,53,006/-) (3) Interest Expenses to Manekchand Panachand Trading & Investment Co.Pvt.Ltd.(Holding Company)Rs. 21,34,213/- (RY Rs. 10,91,731/-) (4) Interest Expenses to Manekchand Panachand & Co. (Associate Company) Rs. 3,68,630/- (RY Rs. 39,340/-) (5) Interest Income to Life Style NetwBrk Ltd. (Subsidiary Company) Rs. 16,11,690/- (RY Rs.55,60,156/-) (6) Loan Accepted to Manekchand Panachand Trading & Investment Co.Pvt.Ltd. (Holding Company)Rs. 4,44,60,000/- (RY Rs.1,66,00,000/-), Manekchand Panachand & Co. (Associate Company) Rs..27,50,000/- (RY Rs.20,00,000/-) (7) Loan Repayment to Lifestyle Networks Ltd. (Subsidiary Company)Rs. 2,43,07,166/- (RY Rs. 3,72,99,379/-), Manekchand Panachand & Co.Rs. 27,50,000/- (RY Rs. 20,00,000/-), Asit D. Javeri (Key Management) Rs.4,50,000/-. (8) Fixed Deposit Received to Asit D. Javeri (Key Management)Rs. 12,00,000/- (RY Rs. 12,00,000/-)

31.03.2011 31.03.2010

11) Contingent Liabilities not provided for:

(a) Estimated amount of contracts remaining to be executed on capital accounts (Net of Payments) 18,47,390 8,88,797

(b) In respect of Guarantee given by the Company's Banker for Central Excise and other purposes 25,000 25,000

(c) In respect of corporate guarantee given by the company to the bank for Loans borrowed by Indian subsidiary 2,95,48,508 4,93,70,807

12) The Ministry of Corporate Affairs, Government of India vide its general Notifications No S.0.301 (E) dated 8th February 2011 issued under section 211 (3) of the Companies Act, 1956 has exempted certain classes of companies from disclosing certain information in their profit and loss account. The company being an export oriented company is entitled to the exemption. Accordingly, disclosures mandated by paragraphs 3(i)(a), 3(ii)(a), 3(ii)(b) and 3(ii)(d) of Part II, Schedule VI to the CompaniesAct, 1956 have not been provided.

13) Additional information required to be given in pursuance of Para Nos.3,4-C,4-D of Part II of Schedule VI of the CompaniesAct, 1956.


Mar 31, 2010

1) Considering the turn around in the Global economy coupled with the fact that the Order Book position has improved including long term supply agreement from customers, the company is confident about improvement in financial position in coming years which would in turn absorb accumulated losses. Hence, the company feels that although there are accumulated losses as on 31st March, 2010, considering the current business trend, going concern would not be affected and accordingly accounts have been prepared.

2) The Company has investment of Rs. 25,50,000 comprising of 255000 equity shares of Rs. 10/- each (51 % of the equity capital) in Lifestyle Networks Ltd., a subsidiary company. As at 31st March, 2010, accumulated loss of the subsidiary of Rs. 5,21,24,019/- has exceeded its capital. Besides investments, in the subsidiary the Company had advanced unsecured loans of Rs. 5,44,34,699/- as at 1st April, 2009 and having closing balance of Rs. 2,26,95,476/- as at 31st March, 2010 and had further given guarantees to their lenders who have given secured loan to them the balance of which as on the Balance Sheet date is Rs. 4,93,70,807/- (P.Y. Rs. 6,35,65,772/- ). Based on the subsidiarys performance during the financial year and business plans that are in the process of being implemented, coupled with the fact that out of the loans advanced to them in the past substantial recoveries were made during the year and the subsidiary has represented that they would clear the entire outstanding before the end of the following financial year, no provision is considered necessary in respect of the investments and guarantees and loan advanced to them.

3) Income tax assessment of demand are completed upto and inclusive of the assessment year 2007-08 (Financial Year31st March, 2007). As perthe department amount outstanding is Rs. 1,98,68,768/-. Retrospective amendment to Section 80HHC brought about by the Taxation Laws Amendment Act 2005 were given effect to in the reopened assessments of earlier years and in the subsequent regular assessments. Against the reopening of earlier years assessments in the Companys writ petition, Honble Bombay High Court was pleased to issue rule and against disallowances made in regular assessments, the matter is restored to CIT(Appeals) for fresh adjudication. Management is of the view that if the Companys petition for waiver of interest under Section 234B (on account of the retrospective amendment to Section 80HHC) as per CBDT instructions, reliefs in appellate proceedings and on account payments are taken into account, balance in provision for taxation as at the Balance Sheet date is adequate.

4) The repayment of Loan falling due within one year is as under :-

a) Secured Term Loans : Rs. 4,62,45,944/-

b) Unsecured Loans : (1) Fixed Deposit Rs. 1,84,93,000/-

(2) Other Loan Rs. 4,10,67,962/-

(3) From Directors Rs. 7,63,093/-

5) a) Sundry Creditors includes Rs. 5,16,773/- (P.Y. Rs.24,86,959/-) being total outstanding dues to Small Scale Industrial Undertakings to the extent identified on the basis of information available with the company.

b) Names of Small Scale Industrial Undertaking and Disclosure under MSMEDA to whom the Company owes as on 31st March, 2010, an amount exceeding Rs. 1.00 Lac which is outstanding for more than 30 days:

(i) R. S. Samant Engineers Pvt. Ltd. Rs. 3,97,861/-

(ii) Kris Flexipacks Rs. 1,18,912/-.

6) SEGMENTREPORT.

a) The company is mainly engaged in manufacturing of Chemical Intermediates having similar risks and returns, constituting a single segment Revenue from other activrties pursued are insignificant. Operations of the company are classified into two primary Geographical Segments namely Exports and Local. These segments have been identified and reported taking into account exchange control regulations, underlying currency risks and the internal financial reporting segments.

b) Segment Revenue and Expenses :-

i) Revenue, directly attributable each of the segments is shown under segment revenue.

B) Segment expenses include directly attributable and certain indirect expenses allocated on a reasonable basis. It excludes interest expenses, depreciation and other common expenses which cannot be allocated on a reasonable basis.

c) Segment Assets and Liabilities :-

Fixed Assets used in the companies busiriess are not identifiable management believes that it is not practical to provide segment disclosures relating to capital employed.

7) RELATED PARTY DISCLOSURES.

I) List of Related Parties

i) Holding Company - M/s. Manekchand Panachand Trading Investment Co. Pvt. Ltd

ii) Subsidiaries - M/s. Anuchem B.V.B.A., Belgium

M/s. Anuchem Re. Ltd., Singapore

M/s. Lifestyle Networks Ltd.

iii) Associate Companies - M/s. !BI Engineerings Services Pvt. Ltd.

M/s. Amnisera Corporation

M/s. Manekchand Panachand & Co.

M/s. Chandra Net Pvt. Ltd.

II) Key Management Personnel

i) ShriA.D.Javeri - Chairman & Managing Director

Smt. Seema A. Javeri wife of Shri AD. Javeri

Smt. Molina D. Javeri Mother of Shri A.D. Javeri

Mr. Abtvshek A. Javeri son of Shri A.D. Javeri

ii) Shri N.R.Jani - Director & Company Secretary

* IBI Engineering & Services Pvt. Ltd., Rs. 30,125/- and Manekchand Panachand & Co. Rs. 9,205/-.

** Mr. A.D. Javeri Rs. 1,71,200/-.

# From Manekchand Panachand & Co. Rs. 20,00,000/-.

8) Employee Benefit.

Defined Benefit plan

The employee gratuity fund scheme managed by a trust is defined benefit plane .the present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized manner as gratuity.

9) The previous years figures have been reworked, regrouped and reclassified wherever necessary. Amount and other disclosure for the proceeding year are included as an integral part of the current year financial statement and are to be read relation to the amount and other disclosures relating to the current year.

This information is given pursuant to the recognition granted by the Department of Scientific & Industrial Research, Ministry of Science & Technology, Government of India, vide their letter No.TU/IV-RD/1177/2006 dated 17th April, 2006, the Companys Research & Development Laboratory.

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