Notes to Accounts of Ishan Dyes & Chemicals Ltd.

Mar 31, 2018

1] Vehicle Loan is Secured by Hire Purchase of vehicle where the vendors have a lien on and right of repossession of specific vehicle. The loan is repayable in remaining 6 monthly installments by September'' 18 and carries interest rate of 9.38% p.a.

2] Machinery Loan is primarily Secured against first & exclusive charge on all movable machinery of the company including all stores, spare parts, both present and future being and lying at company''s premises or go-down or rented place by the company. Further, secured against equitable mortgage by deposit of title deeds with the bank as security in respect of loan faculties/limits viz cash credit, ILC/FLC open cum bank guarantee and machinery loan, The term loan is repayable in 24 monthly installments and carries interest rate of 11.25% p.a.

3] Machinery Term Loan is for the purpose of purchase of machineries, equipment’s and other movable fixed assets and such term loan is primarily Secured against first & exclusive charge by way of equitable mortgage of factory land. Further, secured by way of hypothecation of entire machineries, electrode installations, furniture & fixtures, office equipment’s and other movable fixed assets of the company, situated at the factories, present and future. The term loan is repayable in 60 monthly installments and carries interest rate of 9.50% p.a.

4] Other Term loan is for the purpose of construction of industrial land and such term loan is primarily Secured against first & exclusive charge by way of equitable mortgage of factory land. Further, secured by way of hypothecation of entire machineries, electrode installations, furniture & fixtures, office equipment’s and other movable fixed assets of the company, situated at the factories, present and future. The term loan is repayable in 60 monthly installments and carries interest rate of 9.50% p.a.

5] Repayable on demand.

As per Indian Accounting Standard 19 "Employee benefits", the disclosures as defined are given below:

Defined Contribution Plans

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees ''Pension Scheme (EPS) with the government, and certain state plans such as Employees'' State Insurance (ESI). PF and EPS cover substantially all regular employees and the ESI covers certain workers. Contributions are made to the Government''s funds. While both the employees and the Company pay predetermined contributions Into the Provident Fund and the ESI Scheme, contributions into the Pension fund is made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary. During the year, the Company has recognized the following amounts in the Account towards company''s contribution:

Defined Benefit Plans

Gratuity: The Company makes annual contributions to Employees'' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

a) On normal retirement / early retirement / withdrawal / resignation:

b) As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service.

c) On the death in service:

d) As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit The Company provides for death benefit, a defined benefit plan (death benefit plan) to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non-funded.

The estimate of future increase in compensation levels, considered in the actuarial valuation, have been taken on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market The above information has been certified by the actuary and relied upon by the auditors.

(*) marked details are not filled up for FY 2017-18 because it is not applicable as per Acturial Valuation Report due to adoption of IND AS from 01/04/2017 by the company. Employee benefits are accounted and shown as per Acturial Valuation Report as on 31st March 2018.

Note 1- The Company has received a Intimation u/s 154 of the Income Tax Act 1961 for AY 2015-16, 2016-17, AY 2017-18 and Prior Years.

Note 2- The Company has filed an appeal against CST Penalty order for FY 2011-12 Note 3- The Company has filed an appeal against VAT Penalty order for FY 2011-12

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Figures in brackets ( ) are pertaining to previous year Note - 37 DIRECTORS RE MMUNE RATION

Salary of Rs. 42,00,000/- & Bonus - Rs. 4,62,000/Note - 38 Balance due to / from third parties are subject to confirmation, reconciliation, and / or adjustments, if any.

Note - 6 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the ordinary course of business.

Note - 7 The company has only one segment of activity i.e. Chemicals

Note - 8 Net Exchange Gain Included in the profit and loss account is Rs. 88,93,201/- (Loss in PY Rs. 3,63,387/-].

Note - 9 Previous year’s figures have been regrouped or reclassified wherever necessary to correspond with the current year’s classification or disclosure. Please refer to note no. 44 for recondlliation between financials prepared under Revised Schedule VI vis a vis IND AS.

Note - 10 Figures have been rounded off to the nearest rupee.

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Mar 31, 2016

Shares issued for other than cash, Bonus issue and Shares bought back

1. No shares had been allotted as fully paid up pursuant to without payment being received in rash during the period of five years immediately preceding the balance sheet date

2. shams had been allotted as fully paid up by way of bonus shares during the period five years immediately preceding the balance-sheet date-

3 Mo shares had been bought back during the period of five years immediately preceding the balance sheet date.

Circuit the Company makes annual - Assurance (flash Accumulating Scheme of LIC, a funded defined benefit plan for (fuelling employees. The scheme provides for payment in vested employees as under:

-Defined Benefit plans

The company makes annual contributions to employees group gratuity –cum life assurance (cash accumulation) scheme of LIC a funded defined benefit plan for gratuity Act, 1972 with vesting employees as under

A)ON normal retirement /early retirement/ withdrawal /resignation

B)as per the provisions of payments of gratuity ACT,1972 Without any vesting period`

C)On the death in service.

d) As per the provisions of Payment of gratuity Act,1972 without any vesting period.

Death Benefit: The (Company provides fur death benefit, a defined benefit. plan (death benefit plan) to certain categories of employees .the death benefit plan provides a lump sum payment to vested employees on being compensation received from the insurance company and restricted to limited set forth in the sand plan the death benefit plan is funded.

The estimate of future increase in compensation levels, considered in the actuarial valuation, have been taken on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market, The above information has been certified by the'' actuary and relied upon by the auditors.

4 DIRECTORS REMUNERATION;

Salary of Rs. 42,00,000/- Bonus - Rs. 3,30,000/

5 Balance due t o / form third parties are subject to confirmation, reconciliation and / or adjustments, I f any.

6 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the ordinary course of business.

7 The company has only one segment of activity i.e Chemicals

8 Disclosure Under Micro, Small & Medium Enterprises Development Act, 2006

The company has not received the required information foam suppliers regarding their stains under Micro, Small & Medium Enterprises Development Act. 2006. Hence, disclosures, if any, relating to the amounts unpaid as at the yearend together with the interest paid/payable as required under The said Act have not been made.

9 N et Exchange Gain included in the profit and loss account is R.s. 27.12,570/- (Py7.80,874/ -)

10 Previous Year Comparatives

Previous year''s figures have been regrouped or reclassified wherever necessary to correspond with the current year''s classification or disclosure.

11. figures have been rounded off to the nearest rupee

A MEMBER ENTITLED TO ATTEND AND VOTE IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AM) A PROXY NEED NOT BE A MEMBER OF THE COMPANY. The Proxy, in order to be effective, must be received by the Company not less than hours before the commencement of the meeting.

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Mar 31, 2015

1 BACKGROUND:

Ishan Dyes and Chemicals Ltd. was incorporated on 26th July 1993 under the Companies Act,1956.The company is engaged into the business of manufacturing Copper Phthalocyanine Crude Blue (CPC Blue) and Pigment Blues.The products of the company are also exported and well established in the domestic market.

2 Share Capital

2.a The Number and amount of shares Authorised, issued, subscribed & fully paid up and subscribed but not fully paid up:-

2.d Shares issued for other than cash, Bonus issue and Shares bought back

1 No shares had been allotted as fully paid up pursuant to contract(s) without payment being received in cash during the period of five years immediately preceding the balance sheet date.

2 No shares had been allotted as fully paid up by way of bonus shares during the period of five years immediately preceding the balance-sheet date.

3 No shares had been bought back during the period of five years immediately preceding the balance sheet date.

3 Employee Benefits

As required by Accounting Standard-15 'Employee Benefits' the disclosures are as under :

Defined Contribution Plans

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees 'Pension Scheme (EPS) with the government, and certain state plans such as Employees' State Insurance(ESI). PF and EPS cover substantially all regular employees and the ESI covers certain workers. Contributions are made to the Government's funds. While both the employees and the Company pay predetermined contributions into the Provident Fund and the ESI Scheme, contributions into the Pension fund is made only by the Company. The contributions are normally based on a certain proportion of the employee's salary. During the year, the Company has recognised the following amounts in the Account towards company's contribution:

Defined Benefit Plans

Gratuity: The Company makes annual contributions to Employees' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

a) On normal retirement / early retirement / withdrawal / resignation:

b) As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service.

c) On the death in service:

d) As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit: The Company provides for death benefit, a defined benefit plan (death benefit plan) to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non funded.

The estimate of future increase in compensation levels, considered in the actuarial valuation, have been taken on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. The above information has been certified by the actuary and relied upon by the auditors.

4 Contingent Liabilities

Particulars "As at 31st March "As at 31st March 2015 2014"

Notice for short deduction/payment of TDS and 492583 NIL interest thereon

The Company has received a penalty notice u/s 271(1)(b) of the Income Tax Act, 1961 for AY 2011-12 for which the Company has prefred appeal.

Figures in brackets pertain to the figures of previous year.

5 DIRECTORS REMMUNERATION: Salary of Rs. 42,00,000/- & Bonus - Rs. 3,30,000/-

6 Balance due to / from third parties are subject to confirmation, reconciliation, and / or adjustments, if any.

7 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the ordinary course of buisness.

8 The company has only one segment of activity i.e. Chemicals

9 Disclosure Under Micro, Small & Medium Enterprises Development Act, 2006 The company has not received the required information from suppliers regarding their status under Micro, Small & Medium Enterprises Development Act, 2006. Hence, disclosures, if any, relating to the amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been made.

10 Net Exchange Gain included in the profit and loss account is Rs. 7,80,874/- (PY 16,58,790/-).

11 Previous Year Comparatives

Previous year's figures have been regrouped or reclassified wherever necessary to correspond with the current year's classification or disclosure.

12 Figures have been rounded off to the nearest rupee.

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Mar 31, 2014

1 BACKGROUND:

Ishan Dyes and Chemicals Ltd. was Incorporated on 26th July 1993 under the Companies Act, 1956.The company Is engaged into the business of manufacturing Copper Phthalocyanine Crude Blue [CPC Blue] and Pigment Blues The products of the company are also exported and well established in the domestic market

2) PROVIDENT FUND

Liability is determined an the basis of contribution as required under the statute /rules.

i. CENVAT CREDIT

CENVAT Credit is accounted on accrual basis on purchase of materials.

j. FOREIGN CURRENCY TRANSACTIONS Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Monetary items are translated at the year-end rates. The exchange difference between the rate prevailing on the date of transaction and on the date of settlement as also on translation of monetary items at the end of the year is recognised as Income or expense, as the case may be Any premium or discount arising at the Inception of the forward exchange contract is recognized as income or expense over the life of the contract

k. REVENUE RECOGNITION

Revenue / Income is recognised when no significant uncertainty as to determination or realisation exists.

I. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision involving substantial degree of estimation in measurement is recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed In notes, If any. Contingent Assets are neither recognised nor disclosed In the financial statement

m. BORROWING COSTS

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the costof such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to revenue.

ii. TAXES ON INCOME

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to/ recovered from the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income forthe period and reversal of timing differences of earlier years/ period. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient: future income will be available except that deferred tax assets, in case there are urabsorbed depreciation and losses, are recognised If there is virtual certainty that sufficient future taxable income will be available to realise the same.

o, DOUBTFUL DEBTS/ADVANCES

Provision Is made In the accounts In respect of debts/advances which In the opinion of the management are considered doubtful of recovery.

p. IMPAIRMENT LOSS

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts, Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use Is the present value of estimated future cash Hows expected to arise from die continuing use of die asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties,, less the costs of disposal 3
2 No shares had been allotted as fully paid up by way of bonus shares during the period of fiW years Immediately preceding the balance- sheet date.

3 No shares had been tmught back during the period of live year; immediately preceding the balance sheet date.

3. Contingent Liabilities

As at 31st March As at 31st March 2014 2013

Income Tax - 1,95,000

ESIC - 11,98,094

Total - 13,93,094

4 Details of contingent Liability Not Provided

Particulars As at 31st March As at 31st March 2014 2013

(i) Contingent Liabilities

(a] Claims against the company not acknowledged as debt - -

(b) Guarantees

Bank Gurantee for GPCB (with Bank of India) - 50,000

[c} Other money for which the company is contingently liable

Income Tax Act

CITfA] Penalty matter for AY Z006 - 1,95,000

ESIC - 11,98,094

Total - 14,43,094



The company has received a penalty notice u/s. 271(1][c ] of the Income Tax Act, 1961 for the AY. 2Oll-12.

5 Employee Benefits

A required hy Accounting Standard-1S ''Employee Benefits'' the disclosures are as under:

Defined Contribution Plans

The Company offers Its employees defined contribution plans In the form of Provident Fund [PF] and Employees ''Pension Scheme [EPS] with the government, and certain state plans such as Employees'' State InsnrancefESl). f7 ar|d EPS cover substantially all reguLar employees and the ESI covers certain workers. Contributions are made to the Government''s funds. While both the employees and the Company pay predetermined contributions into the Provident Fund and the ESI Scheme, contributions into the Pension fund is made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary. During the year, the Company has recognised the folio wine amounts in the Account to wards company''s contribution:

Defined Benefit Plans

Gratuity; The Company makes annual contributions to Employees'' Group Gratulty-cum Life Assurance [Cash Accumulation] Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

a] On normal retirement / early retirement /withdrawal / resignation;

b] As per the provisions of Payments of Gratuity Act 1972 with vesting period of 5 years of service.

c] On the death in service:

d] As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit: The Company provides for death benefit, a defined benefit plan [death benefit plan] to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit pLan is nan funded.

The Estimate of future increase in compensation Levels, considered in the actuarial valuation, have beer, taken on account Df inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market The above information has been certified hy the actuary and relied upon hy the auditors.

Since the Company has formed Gratuity Trust during the year which Inturn has taken policy with LIC of India during the year, hence change in fair value of assets has not been provided

6 DIRECTORS REMMUNERATION:

Salary of Rs. 42,00,000/- & Bonus - Rs. 3,30,000/-

7 Balance due Id / from third parties arwe subject bn confirmation, reconciliation, and / or adjustments, if any.

8 In the opinion of the board, Loans and Advances and Current Assets are approximately of the value stated), if realized In the ordinary course of holiness.

9 The company has only one segment of activity Chemicals

10 Disclosure Under Micro; Small & Medium Enterprises Development Act, 2006

The company has not received rJhe required information from suppliers regarding their status onder Micro, Email & Medium Enterprises Development Act 2006. Hence, disclosures, if any, relating Co the amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been made.

11 Net Exchange Gain included In the profit and loss account Is Ets. 17,14,465/-.

12 Previous year''s figures have been regrouped or reclassified wherever necessary to correspond with the current year''s classification or disclosure

13 Figures have been rounded off to the nearest rupee.

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Mar 31, 2013

1.1.1 Estimated amount of contracts remaining to be executed on Capital commitment net of advances: Rs. 7.11 lacs (P.Y. Rs.45.00 Lacs)

1.1.2 Previous years figure have been regrouped and / or rearranged wherever consider necessary to confirm to the present year''s grouping.

1.1.3 Contingent liability

a. The Company has received a show cause notice for FY 2009-10 & 2010-11 vide reference no. 37000202640000304/Ins V dated 30/04/2013 from Employee State Insurance Corporation, Regional Office. Recovery of liability is determined of Rs.11.98 Lacs.

b. The disputed statutory dues aggregating Rs.1.95 Lacs that have been deposited on account of disputed matters pending before appropriate authorities as under :

1.2 PAYMENTS TO AUDITORS

Audit fees: Rs. 90,000/- (excluding taxes)

1.3 DIRECTORS REMUNERATION: Salary of Rs. 30,00,000/- & Bonus - Rs. 3,30,000/- 1.20 Balances due to / from third parties are subject to confirmation, reconciliation, and/or adjustments, if any.

1.4 In the opinion of the Board, Loans and Advances and Current Assets are approximately of the value stated, if realized in the ordinary course of business.

1.5 Undisputed Statutory Liability outstanding for more than six months is Nil.

1.6 Net Exchange Gain included in the profit and loss account is Rs. 7,38,989/-.

1.7 The company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard as per Schedule VI of companies Act, 1956 could not be provided.

1.8 Earning in Foreign Exchange

FOB Value of Direct Export: Rs. 549.38 lacs (P.Y.: Rs. 487.95 lacs)

1.9 Extra ordinary item :

During the year under review, the Company has outstanding liability of Rs.143.62 Lacs as on 01/04/2012 of Term Loan of M/s Charotar Nagrik Sahakari Bank. The Company applied for one time settlement of its liabilities and obtained settlement order dated 16/07/12 determining total repayment of Rs.495.41 Lacs. The Company was supposed to discharge aforesaid liability by July''13. But the Company repaid the entire term loan liability during the year under review and received No Due Certificate from the Bank dated 05/04/2013. Additional liability of Rs.351.79 Lacs (Rs.495.41 less Rs.143.62 Lacs) has been reduced by Investment in shares & share linking deposit of Rs.6.44 Lacs. Net figures of Rs.345.35 Lacs charged to Profit & Loss A/c as Extraordinary item.

1.10 Related Party Disclosures as required by AS-18 Piyushbhai N. Patel, Anilaben P. Patel, Shrinal Piyush Patel

Nature of transactions Amount (in lacs)

Payment for Remunerat i on 33.30

1.11 Key Management Personnel:

Piyushbhai N. Patel, Managing Director Shrinal Piyush Patel, Director

1.12 The company has only one segment of activity i.e. production of Phthalocyanine Blue.

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Mar 31, 2012

Note 1 Contingent Liabilities

For the year ended For the year ended 31 March 2012 31 March 2011

Particulars

Income tax liabilities for matter pending in appeal 195,000 195,000

Total 195,000 195,000

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Mar 31, 2011

1. OTHER NOTES

(A) Estimated amount of contracts remaining to be executed on Capital account net of advances: Rs.3.00 lacs (P.Y. Rs.9.00 Lacs)

(B) Previous years figure have been regrouped and/or rearranged wherever consider necessary to confirm to the year's grouping.

(C) Contingent liability on account of bill discounted that remained unpaid as on 31st March 2011 is Rs.40.56 Lacs.

2. DIRECTORS REMUNERATION: Salary of Rs.31,98,720

3. Balances due to/from third parties are subject to confirmation, reconciliation, and/or adjustments, if any.

4. In the opinion of the Board, Loans and Advances and Current Assets are approximately of the value sated, if realized in the ordinary course of business.

5. Undisputed Statutory liability outstanding for more than six month is Nil.

6. Net exchange Gain included in the profit and loss account is 8.55 lacs.

7. The company has not received any intimation from suppliers regarding their status under the J Micro. Small and Medium Enterprise Development Act, 2006 and hence disclosure requirement in this regard as per Schedule VI of companies Act, 1956 could not be provided.

8.Government of Gujarat has announced scheme for One Time Settlement for Co-op Banks under liquidation. As per the scheme, for one time payment, no interest is payable from date MFA In case of borrowings from C.X.S. Bank Ltd, the company is eligible for benefits are the said scheme. Based on the scheme, the Board is of the opinion that there is no naturity interest payment or Year under audit.

9.Quantity information regarding opening and closing stock of finished goods and sales is produced by way of annexure to these notes.

10. Key Management Personnel:

Piyush bhai N. Patel, Managing Director Shrinal Piyush Patel, Director

11. The company has only one segment of activity i.e. production of Phthalocyanine Blue.

12. The company has been advised that in view of carry forwarded losses, Company does not envisage any liability on account of Income Tax and hence no provision is made for Income tax benefits.