| Disclosure in board of directors report explanatory MUNAK CHEMICALS LIMITED DIRECTORS’ REPORT Your Directors take pleasure in presenting to you the Thirty Fourth Annual Report and Audited Statements of Accounts for the year ended 31st March, 2014. FINANCIAL RESULTS and operations The Company has closed its operation and there was no Production and Sale during the year under review. The working results showed net loss of Rs. 14.92 lacs as against a loss of Rs. 11.38 lacs in the previous year. FIXED DEPOSITS The Company has not accepted any fixed deposits from the public during the year. DIRECTORS Mrs. Rita Garg, Director of the company retires by rotation under Article 123 of the Articles of Association of the company and being eligible, offers herself for re-appointment. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors’ Responsibility Statement, it is hereby confirmed : i. that in the preparation of the annual accounts for the financial year ended 31st March, 2014, the applicable accounting standards had been followed along with proper explanation relating to material departures ;ii. that the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the company for the year under review ;iii. that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities ;iv. that the Directors had prepared the accounts for the financial year ended 31st March, 2014 on a ‘going concern’ basis. AUDITORS The present auditors M/s. S.C. Dewan & Co., Chartered Accountants, Panchkula, will retire at the forthcoming Annual General Meeting. They have confirmed their eligibility for reappointment and the Board recommends their re-appointment at the forthcoming Annual General Meeting. MANAGEMENT REPLY ON THE OBSERVATION OF STATUTORY AUDITORS As required by AS 15 notified under Companies (Accounting Standards) Rules 2006 regarding “Accounting for Retirement Benefits” The Company has not complied with the various provision of AS 15, because now only a skeleton staff has been left with the company. However the company has made a provision of Rs. 48,519/- on account of Gratuity on estimated basis. The Company has sold substantial part of its fixed assets after obtaining the approval of the shareholders in its Extra ordinary General Meeting held on 09th day of November, 2009. Due to the adverse policies of Govt of India withdrawing the subsidies, resulting into closure of the unit. The company does not foresee any opportunity to revive the company. PARTICULARS OF EMPLOYEES Particulars of Employees pursuant to the provision of Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rule, 1975, is not annexed since none of the Employees was in receipt of remuneration higher than the limit fixed in the said Section. ENERGY CONSERVATION The Company has taken adequate measures with respect to conservation of energy etc. as required under section 217(1)(e) of the Companies Act. 1956 read with Companies (Disclosure of particulars in the report of the Board of Directors) Rule, 1988. Technology absorption 1) Research and Development.No Research and Development work has been carried out by the Company and therefore, there is no expenditure on this head or any other benefit accrued from it. 2) Technology Absorption. The Company has not imported any Technology.
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