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Notes to Accounts of Amal Ltd.

Mar 31, 2017

1 * The Company has availed the deemed cost exemption under Para D7AA of IND AS 101 in relation to the property, plant and equipment on the date of transition that is April 01, 2015 and hence the net carrying value as per Indian GAAP of block as on April 01, 2015 has been considered as deemed cost on that date. Refer note below for the carrying value of gross block and the accumulated depreciation as on April 01, 2015 under Indian GAAP (IGAAP)

2. Leasehold land

The lease term in respect of leasehold land is 97 years. The lease term in respect of land acquired under finance lease is up to 97 years with ability to opt for renewal of the lease term on fulfillment of certain conditions.

3. All Property, plant and equipments are pledged as security (refer note 9)

ii) Terms | rights attached to Equity Shares

a) The Company has only one class of Equity Shares having a par value of Rs. 10 per share. Each holder of Equity Shares 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 shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

b) Dividend - Nil

Note

a) Advance towards Share Capital amounting to Rs. 240 lakhs refers to the amount received from the Promoter Company towards Share Capital during the year 1996-97. The Company to issue 24 lakhs equity shares of Rs. 10/- each to the Promoter Company at par as per the Modified Sanctioned Scheme (MS - 13) approved by the BIFR on July 01, 2013. The Company has applied for in-principle approval from BSE and SEBI which is pending. Considering the above, the advance has been shown as Share application money pending allotment.

b) Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

c) As per Modified Sanctioned Scheme (MS-10 and MS-13) approved by the Board for Industrial and Financial Reconstruction (BIFR), the Company had issued 0% redeemable Preference shares of Rs.10 crore to Atul Ltd (Promoter) and received interest free secured loan of Rs. 11.29 crore and interest free unsecured loan of Rs. 5.39 crore from Atul Ltd. These financial liabilities are measured at amortized cost and the Day 1 fair value difference is recognized as Deemed Capital contribution from Atul Ltd.

* Current maturities of long term debt disclosed under other financial liabilities (refer note 11(b))

Note

(i) The Company had reached a One Time Settlement with the secured creditors comprising of Corporate | Term loans availed from the banks and financial institutions under which the payments were made directly by the lender company (Atul Ltd) to them. By way of execution of deed of assignment of debts owed by the Company, the lender company has now acquired from these banks and financial institutions the debts and rights, title and interest in encumbrances, facility and underlying securities including inter alia comprised of all movable and immovable properties that have been charged by the Company in favour of these banks and financial institutions pursuant to the original deed of hypothecation entered into by the Company. The entire dues | debts against the banks and financial institutions have been fully satisfied for which '' No dues | debts certificates '' have been obtained from them and the charges have been modified and stands in favour of the lender company as Secured loans.

(ii) Security: The secured loan from related party is secured by the whole immovable and movable properties including machinery, machinery spares, tools and accessories, inventory and other movables both present and future.

(iii) Terms of repayment of term loans:-

a. Secured loan from Atul Ltd does not carry any interest and shall be repaid in three installments, first installment will be of Rs. 200.00 lakhs in FY 2017-18, second installment will be of Rs. 300.00 lakhs in FY 2018-19 and third installment will be of Rs. 628.89 lakhs in FY 2019-20 as per the approved modified sanctioned scheme (MS - 13).

b. Unsecured loan as on March 31, 2017 which does not carry any interest is repayable after March 31, 2020 upon terms and conditions which will be mutually decided between the Company and the lender Company (Atul Ltd).

(iv) Terms | rights attached to Preference Shares

The Company has only one class of 0% Redeemable Preference Shares having a par value of Rs. 10 per share. These shares are redeemable at par over a period of 7 years, starting Rs. 100 lakhs every year from financial year 2016-17 to 2019-20 and Rs. 200 lakhs every year from financial year 2020-21 to 2022-23. Further extension of 1 year was granted by Atul Ltd as per the request of the Company for installment due on March 31, 2017.

(v) Preference Share Capital

Note 4 Lease

The Company has taken land on cancellable lease at Atul from Atul Ltd for 97 years from February 03, 1996 on annual lease rent of Rs. 8,000/-.

Note 5 Going concern

The Company was declared sick by the Board for Industrial and Financial Reconstruction (BIFR) on July 20, 2006 and the BIFR, vide its order dated July 16, 2009, sanctioned the revival scheme for the Company which was further modified in June 2010. Relevant adjustments as required by the scheme including recasting of creditors had been carried out in the books of account.

Subsequently, the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) vide its order dated March 22, 2011 allowed the appeal filed by one of the unsecured creditors and remanded the case back to the BIFR for considering revival scheme through Operating Agency (OA). IDBI Bank Ltd (IDBI), appointed as OA by BIFR, reviewed the Draft Rehabilitation Scheme (DRS) prepared by the Company and submitted it to BIFR on February 16, 2012. The Company revised the DRS with cut-off date as March 31, 2013 and the same was approved by BIFR in its meeting held on July 01, 2013 as modified sanctioned scheme (MS - 13). The salient features of MS - 13 include implementation of project, settlement of unsecured creditors at 30% of principal dues (as approved under earlier scheme) and issue of shares to promoter company towards advance received against share application money. Further, the Company has applied to Central Board of Direct Taxes for carry forward of business losses beyond eight years which is approved subject to certain conditions specified in CBDT order.

Due to adverse market condition and because of the change in regulatory norms in USA, the Company has proposed to shelve the plan of setting-up pMPAA project as stated in MS-13. However, in order to turnaround, the Management has contemplated other alternatives and considered the Merger with its parent company Atul Ltd.

The Board of Directors had approved the proposed merger of the Company with Atul Ltd at its meeting held on December 05, 2014. The Company had submitted the Modified Draft Rehabilitation Scheme (''Merger Scheme'') to the BIFR through IDBI Bank Ltd (Operating Agency) on March 31, 2016, for obtaining their approval. The Central Government has, vide notification dated November 28, 2016, notified ''The Sick Industrial Companies (Special Provisions) Repeal Act, 2003'' effective December 01, 2016. As a result, the BIFR and Appellate Authority for Industrial and Financial Reconstruction (AAIFR) have been abolished and the Sick Industrial Companies (Special Provisions) Act, 1985 is repealed. Pursuant to the same, all proceedings or appeals of whatever nature pending before BIFR | AAIFR have been abated. However, any scheme of revival, which has already been sanctioned by the BIFR in the past and is under implementation, will continue to be in force. Accordingly, the modified sanctioned scheme (MS - 13) approved by BIFR in its meeting held on July 01, 2013 continues to be in place. In view of the above, books of account have been prepared on going concern basis.

The Merger Scheme pending approval of BIFR, stands abated. Subsequently, the Board of Directors in its meeting held on March 24, 2017 decided not to proceed with Merger Scheme.

Note 6 Micro and small enterprise dues

The Company has certain dues to suppliers (trade and capital) registered under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED Act''). The disclosures pursuant to the said MSMED Act are as follows:

Above disclosures have been made based on information available with the Company, for suppliers who are registered as Micro, Small and Medium Enterprise under "The Micro, Small and Medium Enterprise Development Act, 2006 as at March 31, 2017. The auditors have relied upon in respect of this matter.

Note 7 Employee Benefit Obligation

(a) Defined contributions plans:

(i) Provident fund

(ii) State defined contribution plans

- Employers'' contribution to employees'' state insurance

- Employers'' contribution to employees'' pension scheme 1995

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the income tax authorities.

(b) Defined benefit plans:

Gratuity

The Gratuity fund is maintained with the LIC of India under Group Gratuity scheme.

Valuation in respect of Gratuity have been carried out by independent actuary, as at the Balance Sheet date, based on the following assumptions and sensitivity:

Sensitivity analysis produces the results by varying a single parameter & keeping all the other parameters unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed.

There are no changes from the previous period in the methods and assumptions used in preparing the sensitivity analysis.

(c) Other Long term benefits

Long term compensated absences (Unfunded scheme)

Leave encashment is payable to eligible employees who have earned leaves, during the employment and | or on separation as per the company''s policy

Valuation in respect of leave encashment have been carried out by independent actuary, as at the Balance Sheet date, based on the following assumptions:

Note 8 First time adoption of IND AS Transition to Ind AS

These are the Company''s first Standalone Financial Statements prepared in accordance with Ind AS.

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from April 01, 2016, with a transition date of April 01, 2015. These Financial Statements for the year ended March 31, 2017 are the first the Company has prepared under Ind AS. For all periods up to and including the year ended March 31, 2016, the Company prepared its Financial Statements in accordance with the previously applicable Indian GAAP (hereinafter referred to as ''IGAAP''). The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS Financial Statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Company has prepared Financial Statements which comply with Ind AS for year ended March 31, 2017, together with the comparative information as at and for the year ended March 31, 2016. The Company has prepared opening Ind AS balance sheet as at April 01, 2015, the date of transition to Ind AS. In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in Financial Statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act IGAAP. An explanation of how the transition from IGAAP to Ind AS has affected the financial position, financial performance and cash flows of the Company is set out in the following tables and notes:

A. Exemptions and exceptions availed

In preparing these Ind AS Financial Statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the Financial Statements as at the transition date under Ind AS and IGAAP have been recognized directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Company in restating its IGAAP Financial Statements, including the Balance Sheet as at April 01, 2015 and the Financial Statements as at and for the year ended March 31, 2016.

a) Ind AS optional exemptions

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous IGAAP to Ind AS.

i) Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the Financial Statements as at the date of transition to Ind AS, measured as per the IGAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible assets and investment property covered by Ind AS 40 Investment properties. Accordingly, the Company has elected to measure all of its property, plant and equipment, property at their IGAAP carrying value.

ii) Business combinations

Ind AS 101 provides the option to apply Ind AS 103 "Business Combinations" prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

iii) Designation of previously recognized financial instruments

Ind AS 101 allows the Company to designate investments in equity instruments at FVTPL on the basis of the facts and circumstances at the date of transition to Ind AS.

The Company has elected to apply this exemption for its investment in equity investments

b) Ind AS mandatory exceptions:

i) Estimates

Estimates in accordance with Ind AS at the transition date shall be consistent with estimates made for the same date in accordance with IGAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 01, 2015 are consistent with the estimates as at the same date made in conformity with IGAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under IGAAP:

9) Investment in equity instruments carried at FATPL

10) Impairment of financial assets based on expected credit loss model.

ii) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

B. Reconciliations between IGAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from IGAAP to Ind AS.

i) Reconciliation of equity as at March 31, 2016 and April 01, 2015

* The IGAAP figures have been reclassified to confirm to Ind AS presentation requirements for the purposes of this note.

C Notes to the reconciliations

11. Under previous GAAP, preference shares were shown as part of equity and carried at cost. Redeemable preference shares contain a contractual obligation to deliver cash to the holders. Under Ind AS the same is classified as liability and current portion of preference shares amounting to Rs. 8,617 thousand has been classified as part of other financial liability.

12. As per Modified Sanctioned Scheme (MS-10 and MS-13) approved by the Board for Industrial and Financial Reconstruction (BIFR), the Company had issued 0% redeemable Preference shares of Rs. 1,00,000 thousand to Atul Ltd (Promoter) and received interest free secured loan of Rs. 1,12,900 thousand and interest free unsecured loan of Rs. 53,900 thousand from Atul Ltd. Under the Previous GAAP, borrowings are measured at the transaction price. Under IND AS, the initial recognition of all financial liabilities is at fair value and subsequently at amortized cost. As the Company has obtained interest free borrowings from the Holding company (Atul Limited) which had resulted in the fair value at initial recognition of these interest free borrowings to be lower than transaction price. This Day 1 gain has been recognized by the company as a deemed capital contribution from the holding company (Atul Ltd) under IND AS since it is a transaction with the parent in its capacity as such. Subsequently, the interest free borrowings has been recognized at amortized cost resulting in recognition of interest expense based on market rate of interest determined at inception of the transaction. The net effect of this is an increase in other equity as at March 31, 2016 of Rs. 112,428 thousand, increase as at April 01, 2015 of Rs. 135,975 thousand, and an increase in loss (finance cost) for the year ended March 31, 2016 of Rs. 23,548 thousand."

13. Excise duty

Under IGAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2016 by Rs. 26,500 thousand. There is no impact on the total equity and profit.

14. Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements that is actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the IGAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2016 decreased by Rs. 161 thousand. There is no impact on the total equity as at March 31, 2016.

15. Cash discount

Under IGAAP, revenue from sale of products was measured at transaction price. Under Ind AS, revenue from sale of goods is measured at fair value of consideration received or receivable. Hence, cash discount is reduced from revenue to present the same at its fair value. This change has resulted in a decrease in total revenue and total expenses for the year ended March 31, 2016 by Rs. 201 thousand. There is no impact on the total equity and profit.

Note 15 Capital Management

a) The Company declared sick by BIFR through its order dated July 31, 2006.

Presently, the modified sanctioned scheme (MS-13) approved by BIFR in its meeting held on July 01, 2013 continued to be in place.

The Management is taking all steps to increase shareholder values as per approved BIFR Scheme (MS-13) to revive the Company and make its net worth positive.

b) Dividends

The Company has not declared any dividend.

Note 16: Fair value measurements

(b) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

There were no transfers between any levels during the year.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes Mutual Funds that have a quoted price(NAV) and are valued using the closing NAV

Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(c) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

i) the use of quoted market prices.

ii) the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

(d) Valuation Processes

The company obtains assistance of independent and competent third party valuers to perform the valuations of financial assets and liabilities wherever required for financial reporting purposes, including level 3 fair values. This experts report to the financial risk management team, chief financial officer (CFO) and the audit committee (AC). Discussions of valuation processes and results are held between the CFO and AC .

(e) Fair value of financial assets and liabilities measured at amortized cost.

The carrying amounts of trade receivables, bank deposits with more than 12 months maturity, cash and cash equivalents, Trade payables, employee benefit payable, provision for expenses and retention payable are considered to have their fair values approximately equal to their carrying values.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own and counter party credit risk.

(f) Valuation inputs and relationships to fair value

Note17: All investment in Unquoted Equity shares held by the company have been fully impaired, except for investment in equity shares of Bharuch Enviro Infrastructure Ltd for which, its cost of acquisition has been considered as fair value, Considering the statutory requirement of regulatory authorities relating to purchase and restriction on transfer.

*The change in the unobservable inputs for unquoted equity instruments does not have a significant impact in its value.

Note 18 Financial Risk Management

The Company''s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company''s senior management has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The key risks and mitigating actions are also placed before the Audit Committee of the Company. The Company''s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Risk Management Committee of the Company is supported by the Finance team and experts who provides assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The activities are designed to: -protect the Company''s financial results and position from financial risks; -maintain market risks within acceptable parameters, while optimizing returns; and -protect the Company''s financial investments, while maximizing returns.

This note explains the sources of risk which the Company is exposed to and how the Company manages the risk in the financial statements.

(A) Credit risk

The Company is exposed to credit risk, which is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk arises from cash and cash equivalents, investments carried at amortized cost or fair value through profit & loss and deposits with banks and financial institutions, as well as credit exposures to trade/non-trade customers including outstanding receivables.

(i) Credit risk management

Credit risk is managed at corporate level depending on the policy surrounding credit risk management.

(ii) Provision for expected credit losses Trade receivables

Trade receivables consist of major amount receivable from Atul Ltd, the Holding company, for which no credit risk is involved.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at corporate level in accordance with practice and limits set by the management. These limits vary by taking into account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory | operating requirements."

(i) Maturities of financial liabilities

The tables below analyze the Company''s financial liabilities into relevant maturities based on their contractual maturities for:

The following are contractual maturity of financial liability at the reporting date. The amount are gross and undiscounted, and includes contractual interest payment.

(C) Market risk

(i) Cash flow and fair value interest rate risk

The Company''s entire borrowings, are from Atul Ltd (Holding Company) and are fixed rate borrowings that is 0%, are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(ii) Price risk

(a) Exposure

The Company''s exposure to equity securities price risk arises from unquoted equity investments and quoted mutual funds held by the Company and classified in the balance sheet as fair value through profit and loss. To manage its price risk arising from investments in equity securities, the Company invests only in accordance with the limits set by the Company.

(b) Sensitivity

Note 19

The Board of directors of Amal limited has appointed the Managing Director (''MD'') to assess the financial performance and position of the Company, and make strategic decisions. The MD has been identified as being the Chief Operating Decision Maker for corporate planning.

The Company operates in a single business segment that is manufacturing of bulk chemicals. Further, it''s operations are confined within India. Accordingly, there are no separate reportable segment as per Ind AS - 108 on '' Operating Segments '' and no further disclosures are required.

Note 20

During the year, the Company has not entered into any transaction in nature of loans and advances which falls within the purview of Regulation 34(3) & 53(f) of SEBI(LODR) Regulation, 2015.

Note 21

Figures for previous year have been regrouped | reclassified | rearranged wherever necessary to make them comparable to those for the current year.

Note 22

All amounts are rounded of to the nearest thousands unless otherwise stated. Figures less than '' 50 has been shown at actuals in bracket


Mar 31, 2016

1) Terms | rights attached to Preference shares

The Company has only one class of 0% Redeemable Preference shares having a par value of Rs. 10 per share. These shares are redeemable at par over a period of 7 years, starting Rs. 100 lakhs every year from financial year 2013-14 to 2016-17 and Rs. 200 lakhs every year from financial year 2017-18 to 2019-20 as per the Modified Sanctioned Scheme (MS - 13) approved by BIFR. Extension of 3 years was granted by the Board of Atul Ltd as per the request of Monitoring Committee formed under the Scheme whereby the repayment will now start from 2016-17.

2) Terms | rights attached to Equity shares

The Company has only one class of Equity shares having a par value of Rs. 10 per share. Each holder of equity shares 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 Shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the Shareholders.

Note:3

Advance towards Share capital amounting to Rs. 240 lakhs refers to the amount received from the Promoter Company towards Share capital during the year 1996-97. The Company is to issue 24 lakhs equity shares of Rs. 10/- each to the Promoter Company at par as per the Modified Sanctioned Scheme (MS - 13) approved by the BIFR on July 01, 2013. The Company has applied for in-principle approval from ASE, BSE and SEBI which is pending. Considering the above, the advance has been shown as Share application money pending allotment. Further, as per Modified Draft Rehabilitation Scheme (MDRS) ("Merger Scheme") submitted to BIFR for approval, upon the merger scheme becoming effective, the above Advance towards Share capital shall stand cancelled and extinguished.

Note:

(4) The Company had reached a One Time Settlement with the secured creditors comprising of Corporate | Term loans availed from the banks and financial institutions under which the payments were made directly by the lender company (Atul Ltd) to them. By way of execution of deed of Assignment of debts owed by the Company, the lender company has now acquired from these banks and financial institutions the debts and rights, title and interest in encumbrances, facility and underlying securities including inter alia comprised of all movable and immovable properties that have been charged by the Company in favour of these banks and financial institutions pursuant to the original deed of hypothecation entered into by the Company. The entire dues | debts against the banks and financial institutions have been fully satisfied for which '' No dues | debts certificates'' have been obtained from them and the charges have been modified and stands in favour of the lender company as Secured loans.

(5) Security:

The secured loan from related party is secured by the whole immovable & movable properties including machinery, machinery spares, tools and accessories, inventory & other movables both present & future.

(6) Terms of repayment of term loans:-

7. Secured loan from Atul Ltd does not carry any interest and shall be repaid in three installments, first installment will be of Rs. 200.00 lakhs in FY 2017-18, second installment will be of Rs. 300.00 lakhs in FY 2018-19 and third installment will be of Rs. 628.89 lakhs in FY 2019-20 as per the approved modified sanctioned scheme (MS - 13).

8. Unsecured loan which does not carry any interest is repayable after March 31, 2017 upon terms and conditions which will be mutually decided between the Company and the lender company (Atul Ltd) subject to prior approval of the BIFR.

Note 9. Lease

The Company has taken land on cancellable lease at Atul from Atul Ltd for 97 years from February 03, 1996 on annual lease rent of Rs. 8,000.

Note 10. Going concern

The Company was declared sick by the Board for Industrial and Financial Reconstruction (BIFR) on July 20, 2006 and the BIFR, vide its order dated July 16, 2009, sanctioned the revival scheme for the Company which was further modified in June 2010. Relevant adjustments as required by the scheme including recasting of creditors had been carried out in the books of account.

Subsequently, the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) vide its order dated March 22, 2011 allowed the appeal filed by one of the unsecured creditors and remanded the case back to the BIFR for considering revival scheme through Operating Agency(OA). IDBI Bank Ltd (IDBI), appointed as OA by BIFR, reviewed the Draft Rehabilitation Scheme (DRS) prepared by the Company and submitted it to BIFR on February 16, 2012. The Company revised the DRS with cut-off date as March 31, 2013 and the same was approved by BIFR in its meeting held on July 01, 2013 as modified sanctioned scheme (MS - 13). The salient features of MS - 13 include implementation of project, settlement of unsecured creditors at 30% of principal dues (as approved under earlier scheme) and issue of shares to promoter company towards advance received against share application money. Further, the Company has applied to Central Board of Direct Taxes for carry forward of business losses beyond eight years which is approved subject to certain conditions specified in CBDT order.

Due to adverse market condition and because of the change in regulatory norms in USA, the Company has proposed to shelve the plan of setting-up p-MPAA project as stated in MS-13. However, in order to turnaround, the Management has contemplated other alternatives and considered the Merger with its parent company i.e. M/s. Atul Ltd.

The Board of Directors ("The Board") has approved the Proposed Merger of the Company with Atul Ltd. The Board has approved share swap ratio of 1 equity share of the face value of Rs. 10 each fully paid up of Atul Ltd for every 50 equity shares of the face value of Rs. 10 each fully paid up of Amal Ltd at its meeting held on December 05, 2014. The Company has submitted the Modified Draft Rehabilitation Scheme (MDRS) ("Merger Scheme") to the Board for Industrial and Financial Reconstruction (BIFR) through IDBI Bank Ltd (Operating Agency) on 31st March 2016 for obtaining their approval. Under the proposed scheme, the entire undertaking of Amal Ltd together with all assets and liabilities will be transferred to Atul Ltd. In view of the above, books of account have been prepared on going concern basis. The appointed date of the proposed scheme is April 1, 2014. However, pending approval of scheme by BIFR, no effect of the scheme has been given in the books of account.

Note 11 Micro and small enterprise dues

Trade payables include '' Nil due to Micro and small enterprise. The disclosure as required under Schedule III of the act and Micro, Small and Medium Enterprise Development Act, 2006.

Note 12. Employee Benefits

(13) Defined contributions plans:

(14) Provident fund

(15) State defend contribution plans

- Employers'' contribution to employees'' state insurance

- Employers'' contribution to employees'' pension scheme 1995

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the income tax authorities.

The Company has recognized The following amounts in The Statement of Profit and Loss for the year:

(16) Defined benefit plans:

(17) Gratuity

The Gratuity fund is maintained with the LIC of India under Group Gratuity scheme.

Valuation in respect of Gratuity have been carried out by independent actuary, as at the Balance Sheet date, based on the following assumptions:

(c) Other Long term benefits

Long term compensated absences (Unfunded scheme)

Leave encashment is payable to eligible employees who have earned leaves, during the employment and | or on separation as per the company''s policy Valuation in respect of leave encashment have been carried out by independent actuary, as at the Balance Sheet date, based on the following assumptions:

Note 18

The Company operates in a single segment that is manufacturing of Bulk Chemicals. Further, it''s operations are confined within India. Accordingly, there are no separate reportable segment as per Accounting Standard - 17 on ''Segment Reporting'' and no further disclosures are required.

Note 19

During the year, the Company has not entered into any transaction in nature of loans and advances which falls within the purview of Regulation 34(3) & 53(f) of SEBI (LODR) Regulation, 2015.

Note 20

Figures for previous year have been regrouped | reclassified | rearranged wherever necessary to make them comparable to those for the current year.


Mar 31, 2015

Note 1

Advance towards share capital amounting to Rs. 240 lacs refers to the amount received from the promoter company towards share capital during the year 1996-97 which has not been refunded. The Company has to issue the Equity shares of Rs. 10/- each to the promoter company at par as per the Modified Sanctioned Scheme (MS - 13) approved by the BIfR on July 01, 2013. The Company has applied for in-principle approval from ASE | BSE SEBI, which is pending. Considering the above, the advance has been shown as share application money pending allotment.

Note 2 i) The Company had reached a One Time Settlement with the secured creditors comprising of Corporate | Term loans availed from the banks and financial institutions under which the payments were made directly by the lender company (Atul Ltd) to them. By way of execution of Deed of Assignment of debts owed by the Company, the lender company has now acquired from these banks and financial institutions the debts and rights, title and interest in encumbrances, facility and underlying securities including inter alia comprised of all movable and immovable properties that have been charged by the Company in favour of these banks and financial institutions pursuant to the original deed of hypothecation entered into by the Company. The entire dues | debts against the banks and financial institutions have been fully satisfied for which ' No dues | debts certificates ' have been obtained from them and the charges have been modified and stands in favour of the lender company as secured loans.

ii) Terms of repayment of term loans:

a. Secured loan from Atul Ltd does not carry any interest and shall be repaid in three installments, first installment will be of Rs. 200.00 lacs in 2017-18, second installment will be of Rs. 300.00 lacs in 2018-19 and third installment will be of Rs. 628.89 lacs in 2019-20 as per the approved modified sanctioned scheme (MS - 13).

b. Unsecured loan which does not carry any interest is repayable after March 31, 2016 upon terms and conditions which will be mutually decided between the Company and the lender company (Atul Ltd) subject to prior approval of the BIfR.

NOTE 3 LEASE

The Company has taken land on cancellable lease at Atul from Atul Ltd for 97 years from february 03, 1996 on annual lease rent of Rs. 8,000/-.

NOTE 4 GOING CONCERN

The Company was declared sick by the Board for Industrial and financial Reconstruction (BIfR) on July 20, 2006 and the BIfR, vide its order dated July 16, 2009, sanctioned the revival scheme for the Company which was further modified in June 2010. Relevant adjustments as required by the Scheme including recasting of creditors had been carried out in the books of account.

Subsequently, the Appellate Authority for Industrial and financial Reconstruction (AAIfR) vide its order dated March 22, 2011 allowed the appeal filed by one of the unsecured creditors and remanded the case back to the BIfR for considering revival scheme through Operating Agency (OA). IDBI Bank Ltd (IDBI), appointed as OA by BIfR, reviewed the Draft Rehabilitation Scheme (DRS) prepared by the Company and submitted it to BIfR on february 16, 2012. The Company revised the DRS with cut-off date as March 31, 2013 and the same was approved by BIfR in its meeting held on July 01, 2013 as Modified Sanctioned Scheme (MS - 13). The salient features of MS - 13 include implementation of project, settlement of unsecured creditors at 30% of principal dues (as approved under earlier scheme) and issue of shares to promoter company towards advance received against share application money. further, the Company has applied to Central Board of Direct Taxes for carry forward of business losses beyond eight years which is approved subject to certain conditions specified in CBDT order.

Due to adverse market condition and because of the change in regulatory norms in USA, the Company has proposed to shelve the plan of setting-up pMPAA project as stated in MS-13. However, in order to turnaround, the Management has contemplated other alternatives and considered the Merger with its parent company; Atul Ltd.

The Board of Directors (Board) has approved the proposed merger of the Company with Atul Ltd. The Board has approved share swap ratio of 1 Equity share of the face value of Rs. 10 each fully paid up of Atul Ltd for every 50 Equity shares of the face value of Rs. 10 each fully paid up of Amal Ltd at its meeting held on December 05, 2014. The Company is in the process of submitting the Modified Draft Rehabilitation Scheme (MDRS) (Merger Scheme) to the Board for Industrial and financial Reconstruction (BIfR) through the Operating Agency for obtaining their approval. Under the proposed Scheme, the entire undertaking of Amal Ltd together with all assets and liabilities will be transferred to Atul Ltd. In view of the above, books of account have been prepared on going concern basis. The appointed date of the proposed Scheme is April 1, 2014. Upon approval of Scheme by the BIfR, effect of the Scheme will be given in the books of account.

Above disclosures have been made based on information available with the Company, for suppliers who are registered as Micro, Small and Medium Enterprise under. The Micro, Small and Medium Enterprise Development Act, 2006 as at March 31, 2015. The auditors have relied upon in respect of this matter.

a) Defined contribution plan:

i) Provident fund

ii) State defined contribution plans

- Employers' contribution to Employees' State Insurance

- Employers' contribution to Employees' Pension Scheme 1995

The Provident fund and the state defined contribution plan are operated by the Regional Provident fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the income tax authorities.

b) Defined benefit plans:

i) Gratuity

ii) Leave encashment

As per the Policy of the Company, Gratuity fund is maintained with Life Insurance Corporation of India Ltd under Group Gratuity Scheme.

Leave encashment is payable to eligible employees who have earned leaves during the employment and or on separation as per the Policy of the Company.

a) During 2014-15 the Company has revised the useful life of its fixed assets and provided depreciation as per the useful life and in the manner prescribed in Schedule II to the Companies Act 2013. Accordingly, depreciation charge for the year is higher by Rs. 2,39,000.

b) Till 2013-14, the depreciation provided on revalued portion of fixed assets was debited to Statement of Profit and Loss and corresponding amount was withdrawn from Revaluation Reserve and credited to the Statement of Profit and Loss. However, from current year, pursuant to Application guide on the provisions of Schedule II to the Companies Act, 2013, withdrawal from Revaluation Reserve into Statement of Profit and Loss is not permissible and the amount standing to the credit of Revaluation Reserve will be credited to General Reserve on retirement or disposal of revalued asset. As a result of above, Loss for the year is higher by Rs. 38,000.

NOTE 5

The Company operates in a single segment; manufacturing of Specialty Chemicals. further, the operations of the Company are confined within India. Accordingly, there are no separate reportable segment as per Accounting Standard - 17 on ' Segment Reporting ' and no further disclosures are required.

NOTE 6

During the year, the Company has not entered into any transaction in nature of loans and advances which falls within the purview of Clause 32 of Listing Agreements.

NOTE 7

figures for previous year have been regrouped reclassified rearranged wherever necessary to make them comparable to those for the current year.


Mar 31, 2014

Corporate information

Amal Ltd is a public company domiciled in India and incorporated on July 04, 1974 with the Registrar of Companies, Maharashtra under the provisions of the Companies Act, 1956. It''s shares are listed on ASE and BSE. Amal was incorporated under the name Piramal Rasayan Ltd on July 04, 1974. Its name was subsequently changed to Amal Rasayan Ltd by the said Registrar of Companies on November 10, 1986 and further to Amal Products Ltd on November 23, 1995 and further to its present name viz. Amal Ltd on September 11, 2003. The Company is engaged in the manufacturing of Speciality Chemicals (Sulphuric Acid Oleum).

Basis of preparation

These Financial Statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable Accounting Principles in India, the applicable Accounting Standards notified under Section 211 (3C) and the relevant provisions of the Companies Act, 1956. The significant Accounting Policies adopted by the Company are detailed below.

(Rs. 000)

NOTE 1 CONTINGENT LIABILITIES AND COMMITMENTS

2013-14 2012-13

(a) Claims against the Company not acknowledged as debts in respects of:

Sales tax 6,668 6,668

Service tax Excise duty 123 -

Labour matter 1,500 -

Unsecured creditors 4,152 -

(b) Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) 2,258 -

The Company has taken land on cancellable lease at Atul from Atul Ltd for 97 years from February 03, 1996 on annual lease rent of Rs. 8,000/-.

NOTE 2 GOING CONCERN

The Company was declared sick by the Board for Industrial and Financial Reconstruction (BIFR) on July 20, 2006 and the BIFR, vide its order dated July 16, 2009, sanctioned the revival scheme for the Company which was further modified in June 2010. Relevant adjustments as required by the scheme including recasting of creditors had been caried out in the books of account. Subsequently, the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) vide its order dated March 22, 201 1 allowed the appeal filed by one of the unsecured creditors and remanded the case back to the BIFR for considering revival scheme through Operating Agency (OA). IDBI Bank Ltd (IDBI), appointed as OA by the BIFR, reviewed the Draft Rehabilitation Scheme (DRS) prepared by the Company and submitted it to the BIFR on February 16, 2012. The Company revised the DRS with cut-off date as March 31, 2013 and the same was approved by the BIFR in its meeting held on July 01,2013 as modified sanctioned scheme (MS - 13). The salient features of MS - 13 include implementation of project, settlement of unsecured creditors at 30% of principal dues (as approved under earlier scheme) and issue of shares to promoter company towards advance received against share application money. Further, the Company has applied to Central Board of Direct Taxes for carry forward of business losses beyond eight years.

MS - 13 envisages revival plan which is a multi faceted approach for improving the operational and financial strength of the Company. The Management believes that MS - 13 will further facilitate the revival and will have no adverse effects on the state of affairs of the Company. Further, necessary steps for revival as envisaged under the Scheme are being taken. In view of above, the books of account have been prepared on going concern basis.

NOTE 3 MICRO, SMALL AND MEDIUM ENTERPRISE DUES

Sundry creditors include Rs. Nil due to Micro, Small and Medium Enterprise. Following is the information, required to be furnished as per Section 22 of the Micro, Small and Medium Enterprise Development Act, 2006.

Above disclosures have been made based on information available with the Company, for suppliers who are registered as Micro, Small and Medium Enterprise under ''The Micro, Small and Medium Enterprise Development Act, 2006'' as at March 31, 2014. The auditors have relied upon in respect of this matter.

NOTE 4 EMPLOYEE BENEFITS

(a) Defined contribution plans:

(i) Provident fund

(ii) State defined contribution plans

- Employers'' contribution to employees'' state insurance

- Employers'' contribution to employees'' pension scheme 1995

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognised by the income tax authorities.

The company has recognised the following amounts in the Statement of Profit and Loss for the year:

(b) Defined benefit plans:

(i) Gratuity

(ii) Leave encashment

The Gratuity fund is maintained with the LIC of India under Group Gratuity Scheme.

Leave encashment is payable to eligible employees who have earned leaves, during the employment and | or on separation as per the Company''s policy.

Valuation in respect of Gratuity and Leave encashment have been carried out by independent actuary, as at the Balance Sheet date, based on the following assumptions:

NOTE 5

The Company operates in a single segment i.e. manufacturing of Speciality Chemicals. Further, it''s operations are confined with in India. Accordingly, there are no separate reportable segment as per Accounting Standard - 17 on ''Segment Reporting'' and no further disclosures are required.

NOTE 6

During the year, the Company has not entered into any transaction in nature of loans and advances which falls within the purview of clause 32 of listing agreement.

NOTE 7

Figures for previous year have been regrouped reclassified rearranged wherever necessary to make them comparable to those for the current year.


Mar 31, 2013

1 Corporate Information

Amal Limited is a public company domiciled in India and incorporated on July 04 ,1974 with the Registrar of Companies, Maharashtra under the provisions of the Companies Act, 1956. It''s shares are listed on ASE and BSE. Amal was incorporated under the name Piramal Rasayan Limited on July 04, 1974. Its name was subsequently changed to Amal Rasayan Limited by the said Registrar of Companies on November 10,1986 and further to Amal Products Limited on November 23, 1995 and further to its present name viz. Amal Limited on September 11, 2003. The company is engaged in the manufacturing ofSpeciality Chemicals (Sulphuric Acid Oleum).

2 Basis of preparation

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in lndia,the applicable accounting standards notified under Section 211 (3C) and the relevant provisions of the Companies Act, 1956.The significant accounting policies adopted by the Company are detailed below.

3. CONTINGENT LIABILITIES

(Rs.in ''000) Particulars 2012-13 2011-12

Contingent liabilities not provided for in respect of

(a) Sales tax matters under appeal 6,668 6,668

(b) Estimated amount of contract remaining to be executed on capital accounts and not provided for (net of advances)

4. EARNINGS PER SHARE

Earnings per Share (EPS) -The numerators and denominators used to calculate basic and diluted Earnings per Share:

5. LEASE

The Company has taken land on cancellable lease at Atul from M/s Atul Ltd for 97 years from February 3, 1996 on annual lease rent of Rs. 8,000/-.

6. GOING CONCERN

The Company was declared sick by Board of Industrial and Financial Reconstruction (BIFR) on July 20,2006 and BIFR vide its order dated July 16, 2009 sanctioned the revival scheme for the Company which was further modified in June 18,2010. Relevant adjustments as required by the scheme including recasting of creditors had been carried out in books of account.

Subsequently, the Appellate Authority of Industrial and Financial Reconstruction (AAIFR) vide its order dated March 22,2011 allowed the appeal filed by one of the unsecured creditors and remanded the case back to the BIFR for considering revival scheme through operating agency. BIFR vide its order dated October 11,2011 appointed IDBI bank as operating agency. IDBI has reviewed the Draft Rehabilitation Scheme (DRS) prepared by the Company and submitted the same to BIFR on February 16, 2012. The Company has revised the DRS with cut-off date as March 31,2013 and the same is under review with BIFR for approval.

The DRS envisages revival plan which is a multi faceted approach for improving the operational and financial strength of the Company.The management believes that DRS will further facilitate the revival and will have no adverse effects on the state of affairs of the company if approved as proposed.Consequential adjustments, if any, will be made in books of account upon approval of scheme by BIFR. Further, the Company has also completed its capacity expansion of Sulphuric Acid plant at Ankleshwar from 120TPDto 140TPD.In view of above developments, the accounts have been prepared on a going concern basis.

7. MICRO,SMALLAND MEDIUM ENTERPRISE DUES

Sundry creditors include Rs. Nil due to Micro, Small and Medium Enterprise. Following is the information, required to be furnished as per Section 22 of the Micro, Small and Medium Enterprise Development Act, 2006.

8. EMPLOYEE BENEFITS

(a) Defined contribution plans:

(i) Provident fund

(ii) State defined contribution plans

- Employers'' contribution to Employees'' state insurance

- Employers'' contribution to Employees'' Pension Scheme 1995

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits.These fundsare recognized by the income tax authorities.

The company has recognized the following amounts in the Statement of Profit and Loss for the year:

(b) Definad benefit plans: u

(i) Gratuity

(ii) Leave Encashment

The Gratuity Fund is maintained with the L1C of India under Group Gratuity Scheme.

Leave Encashment is payable to eligible employees who have earned leaves,during the employment and j or on separation as perthe Company''s policy.

Note: Since the Company had adopted AS -15 (Revised) - "Employee Benefits" for the first time during the financial year ended March 31,2011, hence the disclosure for gratuity and leave encashment figures as required by Para 120(n) have not been presented for thefinancial year priorto 2010-11.

9. In the opinion of the management, the Company is presently engaged in manufacturing of Speciality chemicals & others.The products included being related and not subject to different risks and returns, as per management''s contention, no separate reportable segment needs to be identified. And hence no separate segment information disclosure as per the requirement of AS 17 on Segment Reporting is applicable to the Company.

10. During the year, the Company has not entered into any transaction in nature of loans and advances which falls within the purview of clause 32 of listing agreement.


Mar 31, 2012

1. Corporate Information

AMAL Limited is a public company domiciled in India and incorporated on July 4, 1974 with the Registrar of Companies, Maharashtra under the provisions of the Companies Act, 1956. Its shares are listed on ASE and BSE. AMAL was incorporated under the name PIRAMAL Rasayan Limited on July 4, 1974. Its name was subsequently changed to AMAL Rasayan Limited by the said Registrar of Companies on November 10, 1986 and further to AMAL Products Limited on November 23, 1995 and further to its present name viz AMAL Limited on September 1 1, 2003. The Company is engaged in the manufacturing of Specialty Chemicals (Sulphuric Acid | Oleum).

2. Basis of preparation

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under Section 211(3C) and the relevant provisions of the Companies Act, 1956. The significant accounting policies adopted by the Company are detailed below.

a) Terms rights attached to preference shares

The Company has only one class of 0% redeemable preference shares having a par value of Rs10 per share. These shares are redeemable over a period of 5 years starting from 2013-2014 as per the Draft Rehabilitation Scheme (DRS) submitted to BIFR. The scheme is subject to approval of BIFR.

b) Terms | rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs10 per share. Each holder of equity shares 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 shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note

1. The Company had reached a One Time Settlement with the secured creditors comprising of Corporate | Term loans availed from the banks and financial institutions under which the payments were made directly by the lender Company (Atul Limited) to them. By way of execution of deed of Assignment of debts owed by the Company, the lender Company has now acquired from these banks and financial institutions the debts and rights, title and interest in encumbrances, facility and underlying securities including inter alia comprised of movable and immovable properties that have been charged by the Company in favour of these banks and financial institutions pursuant to the original deed of hypothecation entered into by the Company. The entire dues | debts against the banks and financial institutions have been fully satisfied for which "No dues | debts certificates" have been obtained from them and the charges have been modified and stands in favour of the lender Company (Atul Limited) as Secured loans.

2. Terms of repayment of term loans:

a. Secured loan from Atul Limited shall be repaid in six yearly installments, five installments will be of Rs 200.00 lacs w.e.f FY 2016-17 and last sixth installment will be of Rs 128.89 lacs will be repaid in the FY 2021-22 as per the Draft Rehabilitation Scheme (DRS) submitted to BIFR. The scheme is subject to approval of BIFR.

b. Unsecured loan is repayable after March 31, 2013 upon terms and conditions which will be mutually decided between the Company and the lender.

3. CONTINGENT LIABILITIES

(Rs.in '000)

Particulars 2011-12 2010-11

Contingent liabilities not provided for in respect of

i. Sales tax matter under appeal 6,668 6,454

ii. Estimated amount of contract remaining to be executed on capital accounts and not provided for (net of advances) - 3,230

4. LEASE

The Company has taken land on lease at Atul from M/s. Atul Ltd. for 97 years from February 03, 1996 on annual lease rent of Rs 8,000/-.

5. GOING CONCERN

The Company was declared sick by Board of Industrial and Financial Reconstruction (BIFR) on July 20, 2006 and BIFR vide its order dated July 16, 2009 sanctioned the revival scheme for the Company which was further modified in June 2010. Relevant adjustments as required by the scheme including recasting of creditors had been carried out in books of account.

Subsequently, the Appellate Authority of Industrial and Financial Reconstruction (AAIFR) vide its order dated March 22, 201 1 allowed the appeal filed by one of the unsecured creditors and remanded the case back to the BIFR for considering revival scheme through operating agency. BIFR vide its order dated October 11, 2011 appointed IDBI bank as operating agency. IDBI has reviewed the Draft Rehabilitation Scheme (DRS) prepared by the Company and submitted the same to BIFR on February 16, 2012.

The DRS envisages revival plan which is a multi faceted approach for improving the operational and financial strength of the Company. The management believes that DRS will further facilitate the revival and will have no adverse effects on the state of affairs of the company if approved as proposed. Consequential adjustments, if any, will be made in books of account upon approval of scheme by BIFR. Further, the Company has also completed its capacity expansion of Sulphuric Acid plant at Ankleshwar from 120 TPD to 140 TPD. In view of above developments, the accounts have been prepared on a going concern basis.

6. EMPLOYEE BENEFITS

(A) Defined contribution plans:

a. Provident fund

b. State defined contribution plans

- Employers' contribution to Employees' State Insurance

- Employers' contribution to Employees' Pension Scheme, 1995

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the income tax authorities.

Note: Since the Company had adopted AS - 15 (Revised) - "Employee Benefit" for the first time during the financial year ended March 31, 2011, hence the disclosure for gratuity and leave encashment figures as required by Para 120(n) have not been presented for the financial year prior to 2009-10.

7. In the opinion of the management, the Company is being presently engaged in manufacturing of Specialty chemicals & others. The product included being related and not subject to different risks and returns, as per management's contention, no separate reportable segment to be identified. And hence no separate segment information disclosure as per the requirement of AS 17 on Segment Reporting is applicable to the Company.

8. During the year, the Company has not entered into any transaction in nature of loans and advances which falls within the purview of Clause 32 of Listing Agreement.


Mar 31, 2010

1. Related party information

(a) name of related party and nature of relationship:



Name of the related party Description of relationship

1. Atul Ltd Associated Company

2. Atul Europe Ltd Associated Company

3. Ameer Trading Corporation Ltd Associated Company

4. Mr S S Lalbhai Key management personnel

5. Mr V Koppaka Key management personnel

6. Mr T R Gopi Kannan Key management personnel



2. Going Concern

The Company has at March 31, 2010, accumulated losses of Rs. 388,425.35 (thousands) resulting in a negative net worth of Rs. 203,888.70 (thousands). During the year the current liabilities exceed current assets by Rs. 15,496.86 (thousands). The Company has restarted its manufacturing operations at Ankleshwar site and as such, it is considered as a going concern. In view of the complete erosion of the net worth, a reference was made to the Board for Industrial and Financial Reconstruction (BIFR) which was registered by BIFR in September 2005 and the Company was declared sick by BIFR on July 20, 2006. However, all potential losses and expenses have been booked during the year.

3. The Company has recasted the creditors as per the guidelines of BIFR, vide its sanctioned scheme 2009 (SS’09) dated July 17, 2009 by writing back 70% of the unsecured creditors pertaining prior to the cut off date March 31, 2009, amounting to Rs. 46,701.64 (in thousands). The said amount has been transferred to the Profit and Loss Account.

4. Suppliers and customers balances are subject to confirmation.

5. Manufacturing plants of Ankleshwar and Atul units were not operational with effect from February 2004, except Sulfuric Acid | Oleum plant at Ankleshwar, for which your Company had undertaken job work activity. The capacity of the plant was enhanced from 100 tons per day (tpd) to 120 tpd. The Company undertook job work activity from July 2009 till August 2009. Now, your Company has started manufacturing and sales activities for Sulfuric Acid | Oleum plant effective from September, 2009.

6. In view of introduction of Accounting Standard 28 on Impairment of Assets (AS 28) by the Institute of Chartered Accountants of India, the Company had reviewed the recoverable value of all its assets at its Bulk Chemical and Dye Intermediate divisions as on April 01, 2004 and March 31, 2005. Due to non remunerative prices for the products of its two divisions and the increasing costs of operations the viability of the businesses was affected and accordingly the Company had recognized an impairment loss for the assets of the two divisions in the year 2004-05.

7. Previous Years figures have been regrouped and recasted wherever necessary.

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