| 1. SHARE CAPITAL
A. Terms/rights attached to equity shares :
The company has only one class of equity shares having par value of Rs.
10/- per share. Each holder of equity shares is entitled to one vote
per share The company declares and pays dividends in Indian rupees. The
Dividend proposed by the Board of Directors is subject to the approval
of shareholders in the ensuing Annual General Meeting, except in case
of Interim dividend. The equity shares rank parri passu and carry equal
rights with respect to voting and dividend. In the event of liquidation
of the Company, the equity shareholders shall be entitled to
proportionate share of their holding in the assets remained after
distribution of all preferential amounts.
B. The Equity Share Capital of the Company had been reduced from
10,21,87,000 comprising of 1,02,18,700 shares of Rs.10/- per share
fully 99,89,550 equity shares of Rs.5/- each fully paid up. The
reduction in capital had been approved under section 100 of the
Companies Act 1956 by the High Court Of Gujarat vide its order dated
Sept.21,2007. The company then converted its reduced face value of
shares from Rs 5 each to Rs 10 each vide special resolution passed in
Extra-ordinary General Meeting dated October 15, 2007.
2. Contingent Liabilities and commitment [to the extent not provided
for] :
Contingent Liabilities :
a Claims against the Company not
acknowledged as debts :
i) Labour Matters 435000 435000
b In respect of guarantees given by
Banks and/or counter guarantees
given by the Company 250000 2349779
c Other money for which the company
is contingent liable :
i) Letters of Credit for Imports 22864000 3664452
3. Derivative Financial Instruments :
A. The Company has not entered into any forward contracts to offset
foreign currency risks arising from the amounts denominated in
currencies other than the Indian Rupee.
4. Seament Information :
Based on the guiding principal given in Accounting Standard - 17 on
Segment Reporting issued by the Institute of Chartered Accountants of
India, the Company's primary business is manufacturing of PE,
Tarpaulin, HDPE/PP Woven sacks and fabrics, which has similar risks and
returns, accordingly there are no separate reportable segment as far as
primary segment is concerned.
The operations of the company are in India and all assets and
liabilities are located in India except export debtors and import
creditors. The secondary business segment by geographical market is
given below.
5. Related Party Transactions :
A. Name of the Related Party and Nature of the Related Party
Relationship :
a) Directors and their relatives :
Mr. Pradeep kumar Bhutoria Executive Director
Mrs. Sushma Bhutoria Executive Director
Mr. Abhishek Bhutoria Son of Director
Mr. Alpesh Tripathi Director
Mr. Prakash Ramnani Director (*) Resigned
Mr. Dipen M Shah Director
b) Enterprises significantly influenced by Directors and/or their
relatives :
Asian Gases Limited
Bangal Business Limited
Mahanagar Realestate Pvt. Ltd.
Related party relationship is as identified by the Company and relied
upon by the Auditors.
6. During the year 2013-2014, company has imported capital goods under
EPCG License Scheme and availed custom duty benefit of Rs. 211.32 lacs
against which company has export obligation of Rs. Rs. 1785.24 lacs,
which is to be completed within six years of import. The company has
fulfilled its obligation during the year.
7. The Company has worked out deferred tax liabilities/assets at March
31, 2015. In view of unabsorbed depreciation and business losses under
tax laws, net result of computation is net deferred tax assets, which
are not recognised as a matter of prudence and in absence of virtual
certainty as to its realization.
8. Confirmation letters have not been obtained from some of the Debtors
Creditors, and Loans & Advances.
Hence the, balances of these accounts are subject to confirmation,
reconciliation and consequent adjustments, if any.
9. Previous period's figures have been regrouped/ reclassified wherever
necessary to correspond with the current period's classifications/
disclosure.
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