Notes to Accounts of Gujarat Carbon & Industries Ltd.

Mar 31, 2015

A). Rights of Equity Shareholders and Preference Shareholders The Company has only one class of Equity Shares having par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the company. Preference shares shown are outstanding as on date (original amount Rs 172 Lacs) and due for redemption in 10 installments starting from 1.4.2006.

Note:

1. Reserve specifically represented by earmarked investments shall be termed as a 'fund'

2. Debit balance of P & L shall be shown as negative figure under surplus instead of presenting on the asset sid Pursuant to the provisions of Schedule -A to the Companies Act, 2013 effective from 1-4-2014 the company has reassessed the useful lives of its fixed assets. The revised useful lives as assessed by Management match with those specified in Part C of schedule II to the Companies Act -2013 for all the assets.

In case of assets whose useful lives have ended the carrying value as at 1-4-2014 amounting to Rs.1,39,068/- have been adjusted against the reserve as on 1-4-2014.

a. Although operations of the Company have totally ceased since March 2007 and entire plant and machinery and related electric installations disposed of, accounts have been prepared on a 'going concern' basis.

b. In view of the accumulated losses, no transfer has been made to the Capital Redemption Reserve in respect of Redeemable Preference Shares.

c. Revaluation

i. The Company had earlier revalued leasehold land, building, plant machinery and electrical installations of its erstwhile Carbon Black Unit (First Revaluation 30-9-1986) and also freehold land, building, plant and machinery and electrical installations of MEK Division at the estimated market value as on 30-9-1993 resulting in the net increase of Rs.2204.61 Lakhs which was transferred to revaluation Reserve. Relying on legal opinion, the Company had set off debit balance of Profit and Loss Account of Rs. 2094.75 Lakhs as on 30.09.1993 against the balance of revalued assets of Carbon Black Division as on 30.09.1986 and updated on 30.09.1993 and MEK Division as on 30.09.1993.

ii. The Company had further revalued buildings except a flat and above mentioned assets of MEK Division at estimated market value as on 31-3-1999. The net increase in the value of such assets amounted to Rs.2229.96 Lakhs which had been transferred to Revaluation Reserve Account. Relying on legal opinion, the Company had set off Rs. 1140.00 Lakhs being accumulated debit balance of Profit and Loss Account up to 30-09-1997 against Revaluation Reserve of Rs. 2229.96 lakhs created on 31-3-1999 as stated above.

d. No provision is made for interest payable on certain Inter-corporate Deposits. The quantum of such interest which may be payable is not determined at present as the Company is in negotiation with the lenders and the same shall be provided as and when finally crystallized.

e. Preference shares due for redemption as on April1, 2013 have not been redeemed and continue to be shown as preference share capital. Accumulated Dividend on Cumulative Preference Shares amounts to Rs. 104.92 lakhs (Previous Year Rs.96.32 lakhs).

f. i) In the opinion of the management, Current and Non-current Assets, Long Term and Short Term Loans and Advances are realizable at a value, in the ordinary course of business, which is at least equal to the amount at which these are stated, and provisions for all known and determined liabilities are adequate and not in excess of the amounts stated.

ii) The accounts of certain Trade Receivables, Trade Payables, Loans and Advances and Lenders are however subject to formal confirmations / reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current year's financial statements on such reconciliation / confirmation.

i. Deferred Tax Asset/Liability - In absence of virtual certainty of sufficient future taxable income, as a matter of prudence, the Company has not accounted for cumulative net deferred tax assets for the year ended March. 31, 2015. j. Details of transactions with related parties as identified by the management in accordance with Accounting Standard -18 of the Companies Accounting Standard Rules, 2006 are as follows:

The following transactions were carried out with related parties (companies) in the ordinary course of business and at arm's length:

The Company has compiled the above information based on verbal confirmations from suppliers. As at the year end, no supplier has intimated the Company about its status as a Micro or Small Enterprise or its registration under the Micro, Small and Medium Enterprises Development Act, 2006. l. Physical verification of stocks of raw materials, finished goods and stores has not been done since no stocks are being carried.

Details of consumption (raw materials, stores and spares), capacity, stocks, imports and foreign exchange expenditure earnings not given as no production operations have been carried out in last four years.

g. After the resignation of the Company Secretary w.e.f. November 27, 2006, the Company continues to make concerted efforts to appoint a Company Secretary as required under Section 203 of the Companies Act,2013.

h. Previous year's figures have been reclassified / regrouped / rearranged wherever considered necessary.

i. No provision for Income Ta x is required to be made for the year under Minimum Alternate Tax (Section 115JB of the Income Tax Act,1961).

Note :

a) The above Cash Flow Statement has been prepared under the indirect method set out in Accounting Standard - 3 on "Cash Flow Statements" as prescribed under section 133 of the Companies Act read with Rule 7 of the Companies (Accounts) Rules, 2014.

b) Previous year figures have been regrouped / rearranged where necessary.

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Mar 31, 2014

Note 1 - Share Capital

A). Rights of Equity Shareholders and Preference Shareholders

The Company has only one class of Equity Shares having par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share.In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the company. Preference shares shown are outstanding as on date (original amount Rs 172 Lacs) and due for redemption in 10 installments starting from 1.4.2006.

a. Although operations of the Company have totally ceased since March 2007 and entire plant and machinery and related electric installations disposed of, accounts have been prepared on a ''going concern'' basic

b. In view of the accumulated losses, no transfer has been made to the Capital Redemption Reserve in respect of Redeemable Preference Shares.

c. Revaluation

i. The Company had earlier revalued leasehold land, building, plant machinery and electrical installations of its erstwhile Carbon Black Unit (First Revaluation 30-9-1986) and also freehold land, building, plant and machinery and electrical installations of MEK Division at the estimated market value as on 30-9-1993 resulting in the net increase of Rs.2204.61 Lakhs which was transferred to revaluation Reserve.

Relying on legal opinion, the Company had set off debit balance of Profit and Loss Account of Rs. 2094.75 Lakhs as on 30.09.1993 against the balance of revalued assets of Carbon Black Division as on 30.09.1986 and updated on 30.09.1993 and MEK Division as on 30.09.1993.

ii. The Company had further revalued buildings except a flat and above mentioned assets of MEK Division at estimated market value as on 31-3-1999. The net increase in the value of such assets amounted to Rs.2229.96 Lakhs which had been transferred to Revaluation Reserve Account.

Relying on legal opinion, the Company had set off Rs. 1140.00 Lakhs being accumulated debit balance of Profit and Loss Account up to 30-09-1997 against Revaluation Reserve of Rs. 2229.96 lakhs created on 31-3-1999 as stated above.

d. No provision is made for interest payable on certain Inter-corporate Deposits. The quantum of such interest which may be payable is not determined at present as the Company is in negotiation with the lenders and the same shall be provided as and when finally crystallized.

e. Preference shares due for redemption as on April1,2013 have not been redeemed and continue to be shown as preference share capital. Accumulated Dividend on Cumulative Preference Shares amounts to Rs. 104.92 lakhs (Previous Year Rs.96.32 lakhs).

f. In respect of pending legal suits against book debts amounting to Rs.84.86 lakh provision has not been considered till final outcome of the legal suits.

g. Contingent Liabilities have not been provided for in respect of:

Year ended Year ended 31st March, 2014 31st March, 2013 Rs. Lacs Rs. Lacs

i. Claims against the Company relating to (including interest or penalty upto the date of demand) - Income Tax 54.08 54.08

ii. Liability for termination benefits payable to Amount not Amount not contract labour as per ascertainable ascertainable order of (Company has gone in Company has gone in Labour Court appeal against appeal against said order) said order)

iii Further interest / liability / penalty if any as may arise in respect of matters referred to in Note 14(g)(i) above - amounts not ascertainable

h. i) In the opinion of the management, Current and Non-current Assets, Long Term and Short Term Loans and

Advances are realizable at a value, in the ordinary course of business, which is atleast equal to the amount at which these are stated, and provisions for all known and determined liabilities are adequate and not in excess of the amounts stated.

ii) The accounts of certain Trade Receivables, Trade Payables, Loans andAdvances and Lenders are however subject to formal confirmations / reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements on such reconciliation / confirmation.

i. Deferred Tax Asset/Liability - In absence of virtual certainty of sufficient future taxable income, as a matter of prudence, the Company has not accounted for cumulative net deferred tax assets for the year ended March. 31, 2014.

j. Details of transactions with related parties as identified by the management in accordance with Accounting Standard -18 of the Companies Accounting Standard Rules, 2006 are as follows:

The following transactions were carried out with related parties (companies) in the ordinary course of business and at arm''s length:

The Company has compiled the above information based on verbal confirmations from suppliers. As at the year end, no supplier has intimated the Company about its status as a Micro or Small Enterprise or its registration under the Micro, Small and Medium Enterprises Development Act, 2006.

l. Physical verification of stocks of raw materials, finished goods and stores has not been carried out since no stocks are being carried.

Details of consumption (raw materials, stores and spares), capacity, stocks, imports and foreign exchange expenditure earnings not given as no production operations have been carried out in last four years.

m. No provision for Income Tax is required to be made for the year under Minimum Alternate Tax (Section 115JB of the Income Tax Act,1961).

p. After the resignation of the Company Secretary w.e.f. November 27, 2006, the Company continues to make concerted efforts to appoint a Company Secretary as required under Section 383A of the Companies Act, 1956.

q. Previous year''s figures have been reclassified / regrouped / rearranged wherever considered necessary.

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Mar 31, 2013

A. Although operations of the Company have totally ceased since March 2007 and entire plant and machinery and related electric installations disposed of, accounts have been prepared on a ''going concern'' basis.

b. In view of told'' accumulated losses, no transfer has been made to the Capital Redemption Reserve in respect of Redeemable Preference Shares.

c. Revaluation

i. The Company had earlier revalued leasehold land, building, plant machinery and electrical installations of its erstwhile Carbon Black Unit (First Revaluation 30-9-1986) and also freehold land, building, plant and machinery and electrical installations of MEK Division at the estimated market value as on 30-9- 1993 resulting in the net increase of Rs.2204.61 Lakhs which was transferred to revaluation Reserve.

Relying on legal opinion, the Company had set off debit balance of Profit and Loss Account of Rs. 2094.75 Lakhs as on 30.09.1993 against the balance of revalued assets of Carbon Black Division as on 30.09.1986 and updated on 30.09.1993 and MEK Division as on 30.09.1993.

ii. The Company had further revalued buildings except a flat and above mentioned assets of MEK Division at estimated market value as on 31-3-1999. The net increase in the value of such assets amounted to Rs.2229.96 Lakhs which had been transferred to Revaluation Reserve Account.

Relying on legal opinion, the Company had set off Rs. 1140.00 Lakhs being accumulated debit balance of Profit and Loss Account up to 30-09-1997 against Revaluation Reserve of Rs. 2229.96 lakhs created on 31-3-1999 as stated above.

d. No provision is made for interest payable on certain Inter-corporate Deposits. The quantum of such interest which may be payable is not determined at present as the Company is in negotiation with the lenders and the same shall be provided as and when finally crystallized.

e. Preference shares due for redemption as on Aprih, 2012 have not been redeemed and continue to be shown as preference share capital. Accumulated Dividend on Cumulative Preference Shares amounts to Rs. 96.32 lakhs (Previous Year Rs.87.72 lakhs).

f. In respect of pending legal suits against book debts amounting to Rs.84.86 lakh provision has not been considered till final outcome of the legal suits.

g. Contingent Liabilities have not been provided for in respect of:

Year ended Year ended 31st March, 2013 31st March, 2012 Rs. Lacs Rs. Lacs

i. Claims against the Company relating to 54.08 58.38 (including interest or penalty upto the date of demand) - Income Tax

ii. Liability for termination benefits payable to Amount not ascertainable NA contract labour as per order of Labour Court (Company has gone in appeal against said order)_

iii Further interest / liability / penalty if any as may arise in respect of matters referred to in Note 15(g)(i) above - amounts not ascertainable

h. i) In the opinion of the management, Current and Non-current Assets, Long Term and Short Term Loans and Advances are realizable at a value, in the ordinary course of business, which is at least equal to the amount at which these are stated, and provisions for all known and determined liabilities are adequate and not in excess of the amounts stated.

ii) The accounts of certain Trade Receivables, Trade Payables, Loans and Advances and Lenders are however subject to formal confirmations / reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements on such reconciliation / confirmation.

i. Deferred Tax Asset/Liability - In absence of virtual certainty of sufficient future taxable income, as a matter of prudence, the Company has not accounted for cumulative net deferred tax assets for the year ended March. 31, 2013.

j. Details of transactions with related parties as identified by the management in accordance with Accounting Standard -18 of the Companies Accounting Standard Rules, 2006 are as follows:

The Company has compiled the above information based on verbal confirmations from suppliers. As at the year end, no supplier has intimated the Company about its status as a Micro or Small Enterprise or its registration under the Micro, Small and Medium Enterprises Development Act, 2006.

k. Physical verification of stocks of raw materials, finished goods and stores has not been carried out since no stocks are being carried.

Details of consumption (raw materials, stores and spares), capacity, stocks, imports and foreign exchange expenditure earnings not given as no production operations have been carried out in last three years.

l. Provision for Income Tax has been made for the year under Minimum Alternate Tax (Section 115JB of the Income Tax Act,1961).

m. Earnings per Share:

n. After the resignation of the Company Secretary w.e.f. November 27, 2006, the Company continues to make concerted efforts to appoint a Company Secretary as required under Section 383A of the Companies Act, 1956.

o. The Company has reclassified / regrouped / rearranged the previous year''s figures wherever considered necessary.

Note :

a) The above Cash Flow Statement has been prepared under the ''Indirect Method'' as set out in Accounting Standard - 3 on "Cash Flow Statements" issued by the Institute of Chartered Accountants of India.

b) Previous year figures have been regrouped / rearranged to conform to the current year''s presentation.

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Mar 31, 2012

A. Although operations of the Company have totally ceased since March 2007 and entire plant and machinery and related electric installations disposed of' accounts have been prepared on a going concern basis.

b. In view of the accumulated losses' no transfer has been made to the Capital Redemption Reserve in respect of Redeemable Preference Shares.

c. Revaluation

i. The Company had earlier revalued leasehold land' building' plant machinery and electrical installations of its erstwhile Carbon Black Unit (First Revaluation 30-9-1986) and also freehold land' building' plant and machinery and electrical installations of MEK Division at the estimated market value as on 30-9-1993 resulting in the net increase of Rs.2204.61 Lakhs which was transferred to revaluation Reserve.

Relying on legal opinion' the Company had set off debit balance of Profit and Loss Account of Rs. 2094.75 Lakhs as on 30.09.1993 against the balance of revalued assets of Carbon Black Division as on 30.09.1986 and updated on 30.09.1993 and MEK Division as on 30.09.1993.

ii. The Company had further revalued buildings except a flat and above mentioned assets of MEK Division at estimated market value as on 31-3-1999. The net increase in the value of such assets amounted to Rs.2229.96 Lakhs which had been transferred to Revaluation Reserve Account.

Relying on legal opinion' the Company had set off Rs. 1140.00 Lakhs being accumulated debit balance of Profit and Loss Account up to 30-09-1997 against Revaluation Reserve of Rs. 2229.96 lakhs created on 31-3-1999 as stated above.

d. No provision is made for interest payable on certain intercorporate Deposits amounting to Rs 924.50 lakhs (Previous Year Rs.866.76 Lacs) which includes Rs.87.51 Lakhs for current year (Previous Year Rs. 87.51 Lakhs) as the accumulated outstanding interest already provided till 31st March' 2002' of Rs. 920.57 lakhs is still remaining unpaid.

e. Preference shares due for redemption as on ApriH' 2011 have not been redeemed and continue to be shown as preference share capital. Accumulated Dividend on Cumulative Preference Shares amounts to Rs. 87.72 lakhs (Previous Year Rs.79.12 lakhs).

f. In respect of pending legal suits against book debts amounting to Rs.84.86 lakh provision has not been considered till final outcome of the legal suits.

ii. Further interest / liability / penalty if any as may arise in respect of matters referred to in Note 15(g)(i) above - amounts not ascertainable

g. i) In the opinion of the management' Current and Non-current Assets' Long "Term and Short Term Loans and Advances are realizable at a value' in the ordinary course of business' which is atleast equal to the amount at which these are stated' and provisions for all known and determined liabilities are adequate and not in excess of the amounts stated.

ii) The accounts of certain Trade Receivables' Trade Payables' Loans and Advances and Lenders are however subject to formal confirmations / reconciliations and consequent adjustments' if any. The management does not expect any material difference affecting the current year's financial statements on such reconciliation / confirmation.

h. Deferred Tax Asset/Liability - In absence of virtual certainty of sufficient future taxable income' as a matter of prudence' the Company has not accounted for cumulative net deterred tax assets for the year ended March. 31' 2012.

i. Details of transactions with related parties as identified by the management in accordance with Accounting Standard -18 of the Companies Accounting Standard Rules' 2006 are as follows:

The following transactions were carried out with related parties (companies) in the ordinary course of business and at arm's lenoth: Rs. Lacs

The Company has compiled the above information based on verbal confirmations from suppliers. As at the year end' no supplier has intimated the Company about its status as a Micro or Small Enterprise or its registration under the Micro' Small and Medium Enterprises Development Act' 2006.

j. Physical verification of stocks of raw materials' finished goods and stores has not been carried out since no stocks are being carried.

Details of consumption (raw materials' stores and spares)' capacity' stocks' imports and foreign exchange expenditure earnings not given as no production operations have been carried out in last two years.

k. Provision for Income Tax or Minimum Alternate Tax (under Section 115JB of the Income Tax Act'1961) is not considered necessary.

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Mar 31, 2011

1 In terms of agreement for sale entered into with a foreign buyer and related purchase order/s, the company has sold the entire plant and machinery and related electric installations on 'as is, what is' basis. The management decided to account for the sale of said assets in accounts on final shipment. As such, the loss on account of sale of said assets is accounted for during the year.

Although operations of the Company are totally ceased since March 2007 and sale of entire plant and machinery and related electric installations are accounted during the year, accounts are prepared on a going concern basis.

2.(a) The Company had earlier revalued leasehold land, building, plant machinery and electrical installations of its erstwhile Carbon Black Unit (First Revaluation 30-9-1986) and also free hold land, building, plant and machinery and electrical installations of MEK Division at the estimated market value as on 30-9-1993 resulting in the net increase of Rs.2204.61 Lakhs which was transferred to revaluation Reserve.

Relying on legal opinion, the,Company had set off debit balance of Profil and Loss Account of Rs. 2094.75 Lakhs as on 30.09.1993 against the balance of revalued assets of Carbon Black Division as on 30.09.1986 and updated on 30.09.1993 and MEK Division as on 30.09.1993.

(b) The Company had further revalued buildings except a flat and above mentioned assets of MEK Division at estimated market value as on 31-3-1999. The net increase in the value of such assets amounted to Rs.2229.96 Lakhs which had been transferred to Revaluation Reserve Account.

Relying on legal opinion, the Company had setoff Rs. 1140.00 Lakhs being accumulated debit balance of Profit and Loss Account up to 30-09-1997 against Revaluation Reserve of Rs. 2229.96 lakhs created on 31-3-1999 as stated above.

3. Sales of current year Nil (Previous year Rs.Nil)

4 Cumulative Preference Shares are redeemable in 10 equal installments staring from 01.04.2006.

5.(i) No provision ismade for interest payable on certain Intercorporate Deposits amounting to Rs 866.76 lakhs (Previous Year Rs.779.25) which includes Rs.87.51 Lakhs for current year (Previous Year Rs. 87.51 Lakhs) as the accumulated outstanding interest already provided till 31 st March, 2002, of Rs. 920.57 lakhs is still remaining unpaid.

(ii) Accumulated Dividend on Cumulative Preference Shares amount to Rs. 79.12 lakhs (Previous Year Rs.68.80 lakhs).

6. In respect of pending legal suits against book debts amounting to Rs.85.46 lakh provision has not been considered till final outcome of the legal suits.

7. It is considered prudent to make provision with accounts for Contingent liability in respect of

(a) Income Tax.Act. 1961 Rs. 19.79 lakh (Previous year Rs. 19.79 lakh)

(b) Sales Tax Law Rs. 09.41 lakh (Previous year Rs. 9.41 lakh)

8. The payment against supplies from Small Scale and Ancillary Industrial Undertakings are made in accordance with approved credit terms; and to the extent ascertained from the available information, there was no amount overdue in respect of principal and/or interest as on 31.03.2011

Sundry Creditors include Rs. NIL (Previous year Rs.NIL) due to Small Scale and Ancillary Industrial Undertakings to the extent such parties have been identified from available information.

9. Physical verification of stocks of raw materials, finished goods and stores has not been carried out since no stocks are being carried.

10. Details of consumption (raw materials, stores and spares), capacity, stocks, imports and foreign exchange expenditure earnings not given as no production operations have been carried out in last two years.

11. Balance of Creditors, Debtors, Loans & Advances and Deposits are subject to confirmation and adjustment, if any including security deposits, margin money lying with banks & advance payment of taxes (net)

12. Provision for Income Tax or Minimum Alternate Tax (under Section 115JB of the IncomeTaxAct,1961)isnot considered necessary.

13. Deferred Taxation - In absence of virtual certainty of sufficient future taxable income, as a matter of prudence, the Company has not accounted for cumulative net deferred tax assets for the year ended March. 31,2010.

15. Since the operations of the company, (relating to one reportable segment viz. chemicals) are kept in abeyance for the year, question of disclosure under AS 17 does not arise. There are no other reportable segments of the company.

16. Previous year's figures have been regrouped/rearranged wherever necessary.

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Mar 31, 2010

For the year For the year ended ended

31-3-2010 31-3-2009

Rs in Lakhs Rs in Lakhs

1 Although operations of the Company have ceased since March 2007 and sale of entire plant and machinery and related electric installations has been accounted during the year ended March 31, 2009, accounts are prepared on a going concern basis.

The company has entered into an agreement dated 16.02.2010 to sell its factory land with the construction thereon for a gross consideration of Rs 4.3 crore receivable in installments. On receipt of the total agreed consideration the deed of sale transferring the said property shall be executed and the transaction will be accounted thereafter.

2. (a) The Company had earlier revalued leasehold land, building, plant machinery and electrical installations of its erstwhile Carbon Black Unit (First Revaluation 30-9-1986) and also freehold land, building, plant and machinery and electrical installations of MEK Division at the estimated market value as on 30-9-1993 resulting in the net increase of Rs.2204,61 Lakhs which was transferred to revaluation Reserve.

Relying on legal opinion, the Company had set off debit balance of Profit and Loss Account of Rs. 2094.75 Lakhs . as on 30.09.1993 against the balance of revalued assets of Carbon Black Division as on 30.09.1986 and updated on 30.09.1993 and MEK Division as on 30.09.1993.

(b) The Company had further revalued buildings except a flat and above mentioned assets of MEK Division at estimated market value as on 31-3-1999. The net increase in the value of such assets amounted to Rs.2229.96 Lakhs which had been transferred to Revaluation Reserve Account.

Relying on legal opinion, the Company had set off Rs. 1140.00 Lakhs being accumulated debit balance of Profit and Loss Account up to 30-09-1997 against Revaluation Reserve of Rs. 2229.96 lakhs created on 31-3-1999 as stated above.

3. Sales of current year Nil (Previous year Rs.Ntl).

4 Cumulative Preference Shares held by ISG Traders Ltd are redeemable in 10 equal annual installments starting from 01.04.2006.

5. No provision is made for: (i) interest payable on certain Inter-corporate Deposits amounting to Rs 779.25 lakhs (Previous Year Rs.691.74) which includes Rs. 87.51 Lakhs for current year (Previous Year Rs. 90.89 Lakhs) as the accumulated outstanding interest already provided till 31st March, 2002, of Rs. 920.27 lakhs is still remaining unpaid and company is expecting waiver on such unprovided interest, (ii) Accumulated Dividend on Cumulative Preference Shares amounting to Rs. 68.80 lakhs (Previous Year Rs.51.60 lakhs).

6. En respect of pending legal suits against book debts amounting to Rs.8S.46 lakh provision has not been Considered till final outcome of the legal suits.

7. It is considered prudent to make provision with accounts for Contingent liability in respect of

(a) Income Tax.Act.1961 Rs. 19.79 lakh (Previous year Rs. 19.79 lakh)

(b) Sales Tax Law Rs. 9.41 lakh (Previous year Rs. 9.41 lakh)

8. The payment against supplies from Smalt Scale and Ancillary Industrial Undertakings are made in accordance with approved credit terms; and to the extent ascertained from the available information, there was no amount overdue in respect of principal and/or interest as on 31.03.2010

Sundry Creditors include Rs. NIL (Previous year Rs.NIL Lakhs) due to Small Scale and Ancillary Industrial Undertakings to the extent such parties have been identified from available information.

9. Balance of Creditors, Debtors, Loans & Advances and Deposits are subject to confirmation and adjustment, if any including security deposits, margin money lying with banks & advance payment of taxes (net)

10. Provision for Income Tax or Minimum Alternate Tax (under Section 115JB of the Income Tax Act,1961) is not considered necessary.

11. Deferred Taxation - In absence of virtual certainty of sufficient future taxable income, as a matter of prudence, the Company has not accounted for cumulative net deferred tax assets for the year ended March. 31, 2010.

12. Since the operations of the company (relating to one reportable segment viz. chemicals) continue to be suspended question of disclosure under AS 17 does not arise. There are no other reportable segments of the company.

13. Previous years figures have been regrouped/rearranged wherever necessary.

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Mar 31, 2009

1 In terms of agreement for sale entered into with a foreign buyer and related purchase order/s, the company has sold the entire plant and machinery and related electric installations on as is, what is basis. The management decided to account for the sale of said assets in accounts on finaf-shipment. As such, the loss on account of sale of said assets is accounted for during the year.

Although operations of the Company are totally ceased sinc March 2007 and sale of entire plant and machinery and related electric installations are accounted during the year, accounts are prepared on a going concern basis.

2. (a) The Company had earlier revalued leasehold land, building, plant machinery and electrical installations of its

erstwhile Carbon Black Unit (First Revaluation 30-9-1986) and also freehold land, building, plant and machinery and electrical installations of MEK Division at the estimated market value as on 30-9-1993 resulting in the net increase of Rs.2204.61 Lakhs which was transferred to revaluation Reserve.

Relying on legal opinion, the Company had set off debit balance of Profit and Loss Account of Rs. 2094.75 Lakhs as on 30.09/1993 against the balance of referred assets of Carbon Black Division as on 30.09.1986 and updated on 30.09.1993 and MEK Division as on 30.09.1993.

(b) The Company had further revalued buildings except a flat and above mentioned assets of MEK Division at estimated market value as on 31-3-1999. The net increase in the value of such assets amounted to Rs.2229.96 Lakhs which had been transferred to Revaluation Reserve Account.

Relying on legal opinion, the Company had set off Rs. 1140.00 Lakhs being accumulated debit balance of Profit and Loss Account up to 30-09-1997 against Revaluation Reserve of Rs. 2229.96 lakhs created on 31 -3-1999 as stated above.

3. Sales of current year Nil (Previous year Rs.Nil) is net of Discount Nil allowed to customers (Previous year Rs. Nil lakhs).

4 Cumulative Preference Shares issued to star Paper Mills Ltd are redeemable in equal installments staring from 01.04.2006.The Company has not made payment of two Installment amounting Rs.51.60 lakhs( previous year Rs.34.40 lakhs)

5. (i) No provision is made for interest payable on certain Intercorporate Deposits amounting to Rs 691.74 lakhs

(Previous Year Rs.600.85) which includes Rs.90.89 Lakhs for current year (Previous Year Rs. 90.89 Lakhs) as the accumulated outstanding interest already provided till 31s March, 2002, of Rs. 1020.36 lakhs is still remaining unpaid.

(ii) Accumulated Dividend on Cumulative Preference Shares amount to Rs. 51.60 lakhs (Previous Year Rs.34.40 lakhs).

6. In respect of pending legal suits against book debts amounting to Rs.85.46 lakh provision has not been considered till final outcome of the legal suits.

7. It is considered prudent to make provision with accounts for Contingent liability in respect of

(a) Income Tax.Act.1961 Rs. 19.79 lakh (Previous year Rs. 19.79 lakh)

(b) Sales Tax Law Rs. .09.41 lakh (Previous year Rs. 9.41 lakh)

8. The payment against supplies from Small Scale and Ancillary Industrial -Undertakings aro made irntecordance with approved credit terms; and to the extent ascertained from the available information, there was no amount overdue in respect of principal and/or interest as on 31.03.2009 _

Sundry Creditors include Rs. NIL (Previous year Rs.NIL Lakhs) due to Small Scale and Ancillary Industrial Undertakings to the extent such parties have been identified from available information.

9. Physical verification of stocks of raw materials, finished goods and stores has not been carried out since no stocks are being carried.

10. Balance of Creditors, Debtors, Loans & Advances and Deposits are subject to confirmation and adjustment, if any including security deposits, margin money lying with banks & advance payment of taxes (net)

11. Provision for Income Tax or Minimum Alternate Tax (under Section 115JB of the Income Tax Act,1961) is not considered necessary.

12. Deferred Taxation - In absence of virtual certainty of sufficient future taxable income,as a matter of prudence, the _Company has-not accounted for cumulative net deferred tax assets for the year ended March. 31, 2009.

13. Since the operations of the company, earlier relating to one reportable segment viz. chemicals are kept in abeyance for the year, question of disclosure under AS 17 does not arise There are no other reportable segments of the company:

14. Previous years figures have been regrouped/rearranged wherever necessary.