1) No provision has been made in respect of income tax liability of
Rs.36,047,377/-determined on account of Block assessment up to 18th
June, 1998 pursuant to search operation carried out by the Income Tax
Authorities as the same has been disputed by the Company before the
higher authorities.
The Income Tax authorities conducted search and seizure operations at
the premises of the Company on 18th June 1998 and the Management
confirmed that certain documents were furnished to the Income Tax
Department. We were further informed that certain person without
Management's knowledge and proper authority opened and operated upon
certain Bank Accounts in the name of the Company under forged
signatures and unauthorised resolutions to cover up certain
unauthorised and illegal business transactions through false and forged
invoices. The Company has taken further action by filing complaints
with the concerned Authorities. Pending complaint of enquiries and
investigation, the extent of impact on the Company of the aforesaid
fraudulent transactions could not be ascertained in absolute terms.
The Books of account, records and other relevant documents/papers
pertaining to the aforesaid transactions routed through the said
unauthorised bank accounts have not been produced to us and hence not
examined by us.
However the Income Tax authorities have completed the Block Assessment
up to the period of search and ascertained the liabilities to the
extent of Rs. 36,047,377/- which has been disputed by the Company
before the higher authorities and the same has not been provided in the
accounts.
2) Long Term Trade receivables exceeding six months include
Rs.5,934,745/- (after written off of Rs. 813,187/- last year) due for
recovery for a period of more than thirty six months and above and have
become time barred under Limitations Act, 1963 for recovery thereof. No
action, legal or otherwise, has been initiated by the Management.
However, in the opinion of the Board all the debtors are good for
recovery.
3) The Company did not have a full time Company Secretary during the
year as required pursuant to the provisions of Section 203 of the
Companies Act, 2013.
4) The balance of Trade payable under Other Long term liabilities
accounts appearing in Liabilities remain unrecognized and are subject
to such rectification as deem fit on reconciliation/confirmation.
5) During the year under review the Company has carried out business
transaction in shares and F & O derivative trading only, and hence
there is no separate business segment reporting as per Accounting
Standard 17 issued by the Institute of Chartered Accounts of India.
6) Related parties disclosure
(A) 1. Other related parties where control exists: NIL
2. Key management personnel and their relatives:
Shri A.K Sanghi-Director
Smt. Poonam Sanghi-Director
Shri M. K. Saboo-Independent Director
Shri K. Udaykumar- Independent Director
Note: Related parties' relationships as identified by the Company and
relied upon by the Auditors.
7) Previous year's figures have been rearranged/ regrouped wherever
necessary.
8) Based on the information / documents available with the Company,
sundry creditors includes total outstanding due to Micro & Small
Enterprises of which:
a. Amounts overdue on accounts of principal and / or Interest: NIL
b. Name of the parties to whom the Company owe any sum outstanding for
more than 30 days but not overdue: NIL
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