Notes to Accounts of Pondy Oxides & Chemicals Ltd.

Mar 31, 2018

1 Corporate Information

POCL the leading Secondary Lead Smelter in India and it produces the highest quality Lead and Lead Alloys, PVC additives, Zinc Metal and Zinc Oxides which are supplied to mainly battery manufacturers, tyre and rubber manufacturers, chemical and PVC pipe manufacturing. The Company’s products are exported to numerous international customers mainly but not limited to the Asian region like Japan, South Korea, Thailand and Middle - East. Over the years POCL has built a unmatched brand image within the lead sector for its quality, high level of efficiency, reliability, technical support and service.

2 Basis of preparation of financial statements Statement of compliance

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (‘the Act’) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

Basis of preparation and presentation

For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

The financial statements for the year ended March 31, 2018 are the first financial statements which the Company has prepared in accordance with Ind AS with the date of transition as April 1, 2016. Refer to note 53 for information on how the Company adopted Ind AS.

Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in current and future periods.

Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is the Company’s functional currency. All financial information presented in INR has been rounded to the nearest Lakhs (up to two decimals). The financial statements are approved for issue by the Company’s Board of Directors on 24th May, 2018.

2A Critical accounting estimates and management judgments

In application of the accounting policies, which are described in note 2, the management of the Company is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant.

Information about significant areas of estimation, uncertainty and critical judgements used in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:

Property, Plant and Equipment (PPE), Intangible Assets and Investment Properties

The residual values and estimated useful life of PPEs, Intangible Assets and Investment Properties are assessed by the technical team at each reporting date by taking into account the nature of asset, the estimated usage of the asset, the operating condition of the asset, past history of replacement and maintenance support. Upon review, the management accepts the assigned useful life and residual value for computation of depreciation/amortisation. Also, management judgement is exercised for classifying the asset as investment properties or vice versa.

Current tax

Calculations of income taxes for the current period are done based on applicable tax laws and management’s judgement by evaluating positions taken in tax returns and interpretations of relevant provisions of law.

Deferred Tax Assets

Significant management judgement is exercised by reviewing the deferred tax assets at each reporting date to determine the amount of deferred tax assets that can be retained/ recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Fair value

Management uses valuation techniques in measuring the fair value of financial instruments where active market quotes are not available. In applying the valuation techniques, management makes maximum use of market inputs and uses estimates and assumptions that are, as far as possible, consistent with observable data that market participants would use in pricing the instrument. Where applicable data is not observable, management uses its best estimate about the assumptions that market participants would make. These estimates may vary from the actual prices that would be achieved in an arm’s length transaction at the reporting date.

Impairment of Trade Receivables

The impairment for trade receivables are done based on assumptions about risk of default and expected loss rates. The assumptions, selection of inputs for calculation of impairment are based on management judgement considering the past history, market conditions and forward looking estimates at the end of each reporting date.

Impairment of Non-financial assets (PPE/ Intangible Assets/ Investment Properties)

The impairment of non-financial assets is determined based on estimation of recoverable amount of such assets. The assumptions used in computing the recoverable amount are based on management judgement considering the timing of future cash flows, discount rates and the risks specific to the asset.

Defined Benefit Plans and Other long term employee benefits

The cost of the defined benefit plan and other long term employee benefits, and the present value of such obligation are determined by the independent actuarial valuer. An actuarial valuation involves making various assumptions that may differ from actual developments in future. Management believes that the assumptions used by the actuary in determination of the discount rate, future salary increases, mortality rates and attrition rates are reasonable. Due to the complexities involved in the valuation and its long term nature, this obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities could not be measured based on quoted prices in active markets, management uses valuation techniques including the Discounted Cash Flow (DCF) model, to determine its fair value The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is exercised in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

Provisions and contingencies

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances known at the reporting date. The actual outflow of resources at a future date may therefore vary from the figure estimated at end of each reporting period.

2B Recent accounting pronouncements Standards issued but not yet effective

The following standards have been notified by Ministry of Corporate Affairs

a. Ind AS 115 - Revenue from Contracts with Customers (effective from April 1, 2018)

b. Ind AS 116 - Leases (effective from April 1, 2019)

The Company is evaluating the requirements of the above standards and the effect on the financial statements is also being evaluated.

(c) Rights, preferences and restrictions in respect of equity shares issued by the Company

The company has only one class of equity shares having a par value of '' 10/- each. The equity shares of the company having par value of '' 10/- rank pari-passu in all respects including voting rights and entitlement to dividend. The dividend proposed if any, by the Board of Directors, is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year, the Company proposed a dividend of '' 3/- per equity share held (Previous year '' 3/- per equity share held)

Notes:

(a) Working Capital loans are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares, book debts, materials in transit, etc., and guaranteed by promoter directors of the company. The above working capital facilities availed from banks are additionally secured by a charge / mortgage on all fixed assets of the company. The loans carry interest in the range of 7% to 9%

(b) Inter-corporate and other deposits carry interest in the range of 11% to 12% payable annually, repayable as per the terms of repayment agreed.

* Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management represents the principal amount payable to these enterprises. There are no interest due and outstanding as at the reporting date. Please refer note 45.

3 Operating Segments

The operations of the Company falls under a single primary segment i.e., “Metal” in accordance with Ind AS 108 ‘Operating Segments” and hence segment reporting is not applicable.

4 Financial Instruments Capital management

The Company manages its capital to ensure that entities in the Company will be able to continue as going concern, while maximising the return to stakeholders through the optimisation of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity, long-term borrowings and other short-term borrowings.

For the purposes of the Company’s capital management, capital includes issued capital, share premium and all other equity reserves attributable to the equity holders.

Financial risk management objectives

The treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using natural hedging financial instruments and forward contracts to hedge risk exposures. The use of financial derivatives is governed by the Company’s policies approved by the board of directors, which provide written principles on foreign exchange risk, the use of financial derivatives, and the investment of excess liquidity. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Company actively manages its currency and interest rate exposure through its finance division and uses derivative instruments such as forward contracts, wherever required, to mitigate the risks from such exposures. The use of derivative instruments is subject to limits and regular monitoring by appropriate levels of management.

Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company actively manages its currency rate exposures through a centralised treasury division and uses natural hedging principles to mitigate the risks from such exposures. The use of derivative instruments, if any, is subject to limits and regular monitoring by appropriate levels of management.

Forward foreign exchange contracts

It is the policy of the company to enter into forward foreign exchange contracts to cover (a) repayments of specific foreign currency borrowings; (b) the risk associated with anticipated sales and purchase transactions, taking into account the natural hedging on imports & exports and cost of currency to be recovererd from the customers as per Sale Contract.

Disclosure of hedged and unhedged foreign currency exposure

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

Movement in the functional currencies of the various operations of the Company against major foreign currencies may impact the Company’s revenues from its operations. Any weakening of the functional currency may impact the Company’s cost of imports and cost of borrowings and consequently may increase the cost of financing the Company’s capital expenditures. The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of a currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates of each currency by 2%, which represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 2% change in foreign currency rates.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

Interest rate risk management

The Company is exposed to interest rate risk because it borrow funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied. Further, in appropriate cases, the Company also effects changes in the borrowing arrangements to convert floating interest rates to fixed interest rates.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

The 25 basis point interest rate changes will impact the profitability by INR 32.81 Lakhs for the year (Previous INR 24.72 Lakhs)

Credit risk management

Credit risk arises when a customer or counterparty does not meet its obligations under a customer contract or financial instrument, leading to a financial loss.

The Company is exposed to credit risk from its operating activities primarily trade receivables and from its financing/ investing activities, including deposits with banks, mutual fund investments and foreign exchange transactions. The Company has no significant concentration of credit risk with any counterparty.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure is the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables, margin money and other financial assets excluding equity investments.

(a) Trade Receivables

The Company has credit evaluation policy for each customer and, based on the evaluation, credit limit of each customer is defined. Wherever the Company assesses the credit risk as high, the exposure is backed by either bank, guarantee/letter of credit or security deposits.

The Company does not have higher concentration of credit risks to a single customer. As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default in payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

(b) Investments, Derivative Instruments, Cash and Cash Equivalents and Bank Deposits

Credit Risk on cash and cash equivalents, deposits with the banks/financial institutions is generally low as the said deposits have been made with the banks/financial institutions, who have been assigned high credit rating by international and domestic rating agencies.

Credit Risk on Derivative Instruments is generally low as the Company enters into the Derivative Contracts with the reputed Banks.

Investments of surplus funds are made only with approved banks/ financial institutions/ counterparty. Investments primarily include bank deposits, investment in units of quoted mutual funds issued by high investment grade funds etc. These bank deposits, mutual funds and counterparties have low credit risk. The Company has standard operating procedures and investment policy for deployment of surplus liquidity, which allows investment in bank deposits, debt securities and mutual fund schemes of debt and arbitrage categories and restricts the exposure in equity markets.

Offsetting related disclosures

Offsetting of cash and cash equivalents to borrowings as per the consortium agreement is available only to the bank in the event of a default. Company does not have the right to offset in case of the counter party’s bankruptcy, therefore, these disclosures are not required.

Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company invests its surplus funds in bank fixed deposit and mutual funds, which carry minimal mark to market risks. The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

Liquidity tables

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay.

5 Retirement benefit plans Defined contribution plans

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of Gratuity fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary. The contributions, as specified under the law, are made to the Gratuity fund as well as Employee State Insurance Fund

The total expense recognised in profit or loss of Rs. 66.21 Lakhs (for the year ended March 31, 2017: Rs. 40.40 Lakhs) represents contribution paid to these plans by the Company at rates specified in the rules of the plan.

Defined benefit plans

(a) Gratuity

Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gratuity is computed by multiplying last drawn salary (basic salary including dearness Allowance if any) by completed years of continuous service with part thereof in excess of six months and again by 15/26. The Act provides for a vesting period of 5 years for withdrawal and retirement and a monetary ceiling on gratuity payable to an employee on separation, as may be prescribed under the Payment of Gratuity Act, 1972, from time to time. However, in cases where an enterprise has more favourable terms in this regard the same has been adopted.

Sensitivity analysis

In view of the fact that the Company for preparing the sensitivity analysis considers the present value of the defined benefit obligation which has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

(b) Compensated absences

The expected cost of accumulating compensated absences is determined at each balance sheet date using projected unit credit method on the additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense recognised during the year is Rs. 7.26 Lakhs (previous year Rs. 2.84 Lakhs)

6 First-time adoption of Ind AS Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 3 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (The company’s date of transition).

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 generally applicable to the Company (as amended from time to time) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

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

A.1 Ind AS optional exemptions

A.1.1 Deemed cost for PPE and Intangibles

Ind AS 101 permits a first-time adopter to elect to fair value a class of property, plant and equipment or to continue with the carrying value for all of its PPE as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities.

The company has elected to fair value its land as on the date of transition and apply Ind AS 16 retrospectively on other classes of property, plant and equipment.

A.1.2. Deemed cost for Intangible Assets

Ind AS 101 permits a first-time adopter to elect to fair value the intangible assets or to continue with the carrying value as per the previous GAAP as deemed cost on the date of transition

The company has elected to continue the carrying value on the date of transition as per previous GAAP as deemed cost.

A.1.3. Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI or 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.

A.1.4. Leases

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The company has elected to apply this exemption for such contracts/ arrangements.

A.2 Ind AS mandatory exceptions

A.2.1 Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (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 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for impairment of financial assets based on expected credit loss model in accordance with Ind AS at the date of transition as these were not required under previous GAAP

B. Notes to first-time adoption

B.1 Proposed dividends

Under Ind AS, liability to pay dividends arises only when the share holders approves the dividends recommended by the board of directors. Till such approval the proposed dividends does not meet the recognition criteria of a liability. The Company has accordingly, reversed the provisions for proposed dividends and the related taxes.

B.2 Fair valuation impact of PPE as deemed cost

Ind AS 101 permits a first-time adopter to elect to fair value a class of property, plant and equipment as at the date of transition to Ind AS as its deemed cost as per Ind AS at the date of transition. The company has elected to fair value its land as on the date of transition and apply Ind AS 16 retrospectively on other classes of property, plant and equipment. The consequential impact has been considered in the retained earnings.

B.3 Remeasurement of depreciation on PPE

The company applied Ind AS 16 retrospectively on property, plant and equipment, except land. Accordingly, recomputed the related depreciation impact and accounted in the Ind AS financials.

B.4 Fair valuation of financial assets and liabilities

Under Ind AS, financial assets and liabilities are to be valued at amortised cost or fair valued through profit and loss (FVTPL) or fair valued through other comprehensive income (FVTOCI) based on the Company’s business objectives and the cash flow characteristics of the underlying financial assets and liabilities. The Company has remeasured the financial assets and liabilities as on the date of transition and the consequential impact has been given in the opening retained earnings.

B.5 Remeasurement of post-employment benefit obligations

Under Ind AS, remeasurements i.e. 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 recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. Adjustments have been made for such re-classifications/ remeasurements.

B.6 Remeasurement of demerger expenses

Under existing GAAP, demerger expenses are allowed to be carried forward and amortised over a period of time. Since no such explicit provision under Ind AS, the carrying amount as per previous GAAP has been adjusted in the opening retained earnings.

B.7 Deferred tax

Under Ind AS, the deferred tax asset and liabilities are required to be accounted based on balance sheet approach and also to be recognised on all adjustments considered in the opening Ind AS balance sheet. Accordingly, the Company has remeasured its deferred tax assets and liabilities as aforesaid and accounted in the Ind AS financial statements.

B.8 Investment Property

Under the previous GAAP, investment properties were presented as part of property, plant and equipment. Under Ind AS, investment properties are required to be separately presented on the face of the balance sheet. This, however, does not have any impact on the total equity or profit under Ind AS.

B.9 Excise duty

Under the previous GAAP, 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, 2018 by Rs. 1,588.15 lakhs (previous year Rs. 5,839.21 lakhs). There is no impact on the total equity or profit as a result of this adjustment.

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Mar 31, 2015

1.0 DEMERGER

The Hon'ble High Court of Madras on December 4, 2014 sanctioned the Scheme of Arrangement (Demerger) vide Company Petition No 338 of 2014 for Demerger of four undertakings of the Company, namely Metallic Oxides, Plastic Additives, Zinc Refining and Alloying & Refining along with their related assets and liabilities to M/s. POCL Enterprises Limited with effect from April 1,2013, the Appointed Date.

The Scheme of Demerger has been accounted for in terms of the Court Order and alterations or modifications as approved by the Board of Directors of the Company and the Resulting Company as provided for in the Scheme.

Consequent to the Demerger of the four Undertakings of the Company in terms of the Scheme, the Financial Statements of the Company for the year ended March 31,2015 , do not include the operations of the four Demerged Undertakings and therefore strictly not comparable with the figures of the Previous Year ended March 31,2014.

The Resulting Company shall be required to reimburse and indemnify M/s. Pondy Oxides & Chemicals Limited ( "the Company" ) against all liabilities and obligations incurred by the Company in legal, taxation and other proceedings in so far as liabilities and obligations relates to periods prior to the Appointed Date i.e. April 1,2013 in respect of the Demerged Undertakings as defined in the Scheme of Arrangement approved by the Hon'ble High Court of Madras.

All the Assets & Liabilities relating to the Demerged Undertakings of the Company, on the Appointed Date have been transferred to the Resulting Company.

Rs. 78.14 Lakhs of Investments held by the Company in M/s. POCL Enterprises Limited as Share Capital (781465 equity shares of face value of Rs. 10/- each) have been cancelled pursuant to the Order of the Hon'ble High Court of Madras forthe Scheme of Arrangement (Demerger)

As per the Scheme ofArrangement (Demerger) referred above, each member of the Demerged Company (M/s. Pondy Oxides & Chemicals Limited ) whose name stood recorded in the Register of Members as on January 9, 2015 , against the original holding of two shares, has received one equity share of Rs.10 each in the Resulting Company (M/s. POCL Enterprises Limited), allotted in the ratio of 0.5:1. In consideration of this, one share held in the Demerged Company stands cancelled. Hence each member holds one share in Demerged Company and one share in the Resulting Company, against the original holding of two shares, Accordingly paid up share capital of the company has been reduced from Rs. 1,115.20 Lakhs to Rs. 557.60 Lakhs.

As a result of Demerger, M/s. POCL Enterprises Limited ceases to be a wholly owned subsidiary of the Company.

The effective date for the Scheme of Demerger is December 22, 2014, being the date on which the Certified True Copy of the High Court Order was filed with Registrar of Companies, Tamilnadu and taken on record by them.

Disclosure of Discontinued Operations

Names and General Nature of Business of Discontinued Operations are as follows:

(i) Metallic Oxides Undertaking - Manufacture of Metallic Oxides

(ii) Plastic Addivities Undertaking - Manufacture of Plastic Additives

(iii) Zinc Refining Undertaking - Manufacture of Zinc Metal and its Metallic Oxides

(iv) Lead Refining Undertaking - Refining of Lead Metal

Reason for Discontinuation: - Demerger of Units as per the Order of Hon'ble High Court of

Madras dated December 4, 2014

Initial Disclosure event and Time - The Effective date i.e., December 22, 2014 on which the Certified

True Copy of the Order of Hon'ble High Court filed with Registrar of Companies Tamilnadu.

1.1 The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to One vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2.1 Rs. 474.37 lakhs (Rs.189.08 lakhs ) of term loan from Canara Bank for New Project in Andhra Pradesh for construction of building and machinery are primarily secured by way of first mortgage /Charge on the immovable / movable assets situated in factories of the company and guaranteed by promoter directors of the company, repayable in 48 monthly instalments effective from Novemeber 2014 Rs.14.03 lakhs (Rs.14.88 lakhs) of Vehicle loan availed from banks, primarily secured by hypothecation of respective vehicles, repayable as per conditions of the respective term loans. The above loans are additionally secured by hypothecation of present and future stock of raw materials, stock-in- process, finished goods, stores & spares, book debts, materials in transit, etc.

3.1 Rs. 39.74 lakhs (Rs. Nil) of term loan for Vehicle is primarily secured by hypothecation of the Vehicle and repayable as per the term of the Vehicle loan **3.3 Represents loan received from directors.

4.1 Working Capital loans are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores & spares, book debts, materials in transit, etc., and guaranteed by promoter directors of the company.

4.2 Other loans and advances from others includes unsecured loan from Directors.

5.1 Defined Benefit Plan :

The Employee's gratuity liability has been made on actuarial basis . The Present value of obligation is determined by using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit and entitlement measures each unit separately to build up the final obligation.

6 (i) Related Party Disclosures

in accordance with Accounting Standard 18, the disclosure required is given below Name of the related parties and relationship

(a) Related enterprises

M/s. Ardee Industries Private Limited M/s. Bansal Metalic Oxides M/s. Bansal Chemicals (India)

M/s. Daman Metalic Oxides

(b) Key Management Personnel

S.No Name Designation

1 Mr. Anil Kumar Bansal Managing Director

2 Mr. R.P.Bansal Whole Time Director

3 Mr. Ashish Bansal Whole Time Director

4 Mr. K Kumaravel GM-Finance & Co. Secretary

(c ) Relatives of Key Management Personnel

S.No Name Relationship

1 Mrs. Manju Bansal W/o. Mr. Anil Kumar Bansal

2 Mrs. Saroj Bansal W/o. Mr. R.P. Bansal

3 Mrs. Charu Bansal W/o. Mr. Ashish Bansal

4 Mr. Pawan Bansal S/o. Mr. R.P. Bansal

5 Mrs. Megha Choudhari D/o. Mr. Anil Kumar Bansal

6 Mr. Punit Choudhari Daughter's husband of Mr. Anil Kumar Bansal

7 Mrs. Shashi Gupta Sister of Mr. Anil Kumar Bansal

8 Mr. Manoj Kumar Bansal Brother of Mr. Anil Kumar Bansal

9 Mrs. Sushma Gupta D/o Mr. R P Bansal

iii Disclosure in respect of Material related party transaction during the year

1.00 Purchase / Material Consumed include Rs. Nil (Rs.628.87 lakhs) from M/s. Bansal Chemicals India

2.00 Sale include sale of Rs. Nil (Rs. 12.43 lakhs) to M/s.Ardee Indutries Pvt. Ltd , Rs.22.05 lakhs (Rs. 584.30 lakhs) to M/s. Bansal Chemicals (India) and Rs. Nil (Rs.9.13 lakhs) to M/s. Bansal Metalic Oxides

3.00 Conversion Charges paid include Rs.Nil (Rs.23.21 lakhs) to M/s. Ardee Industries Pvt.Ltd and Rs. 3.16 lakhs (Rs. 68.62 lakhs) to M/s. Bansal Metalic Oxides.

4.00 Remuneration paid include Rs. 43.25 lakhs (Rs.39.57 lakhs) to Mr.Anil Kumar Bansal, Rs.Nil (Rs. 32.26 lakhs) to Mr.Sunil Kumar Bansal ; Rs.33.91 lakhs (Rs.31.06 lakhs) to Mr. R P Bansal, Rs.Nil (Rs.29.50 lakhs) to Mr. Devakar Bansal, Rs. Nil (Rs.9.97 lakhs) to Mr. Y.V. Raman, Rs. 32.74 lakhs (Rs. 29.14 lakhs) to Mr.Ashish Bansal. Rs.15.12 lakhs (Rs.12.30 lakhs) to Mr.K. Kumaravel

5.00 Interest paid include Rs.Nil (Rs.13.39 lakhs) to M/s. Ardee Indutries Pvt. Ltd, Rs.11.87 lakhs (Rs.8.91 lakhs) to M/s. Daman Metalic Oxides, Rs. 1.34 lakhs (Rs.1.29 lakhs) to M/s. Rajendra Metchem, Rs.Nil (Rs.6.91 lakhs) to Mr. Padam C. Bansal, Rs.9.58 lakhs (Rs.5.85 lakhs) to Mr.Anil Kumar Bansal, Rs.21.41 lakhs (Rs.14.52 lakhs) to Mr.R P Bansal, Rs. Nil (Rs.1.00 lac) to Mr.Devakar Bansal, Rs.15.27 lakhs (Rs. 8.27 lakhs) to Mr.Ashish Bansal,Rs. Nil (Rs.0.06 lakhs) to Mr. Y.V.Raman, Rs.Nil (Rs. 12.91 lakhs) to Mrs.Vijaya Bansal, Rs.7.35 lakhs (Rs.2.50 lakhs) to Mrs.Manju Bansal, Rs.9.82 lakhs (Rs.3.62 lakhs) to Mrs.Saroj Bansal, Rs.1.94 lakhs (Rs. 1.73 lakhs) to Mrs.Megha Choudhari, Rs.5.41 lakhs (Rs. 3.65 lakhs) to Mrs.Charu Bansal, Rs.1.21 lakhs (Rs.1.09 lakhs) to Mr.Pawan Bansal, Rs.1.20 lakhs (Rs.1.20 lakhs) to Mrs.Sashi Gupta, Rs.Nil (Rs. 0.37 lakhs) to Mrs. Vandana Bansal, Rs.0.92 lakhs (Rs.0.58 lakhs) to Punit Choudhari, Rs.Nil (Rs. 0.11 lakhs) to Mr. Amber Bansal, Rs. 0.21 lakhs (Rs. 0.20 lakhs) to Mr. Manoj Kumar Bansal and Rs.0.69 lakhs (Rs. 0.59 lakhs) to Mrs. Sushma Gupta

6.00 Sales and distribution expenses represents Rs. Nil (Rs. 16.81 lakhs) Paid to M/s. Bansal Chemicals (India), Rs. Nil (Rs. 0.20 lakhs) Paid to M/s. Ardee Industries Pvt. Ltd

7.00 Inter Corporate deposit paid Rs.Nil (Rs.17.58 lakhs) to M/s. Ardee Industries Pvt. Ltd.

8.00 Inter Corporate deposit received Rs.Nil (Rs.10.21 lakhs) from M/s. Ardee Industries Pvt Ltd

9.00 Loan taken include Rs. Nil (Rs.25 lakhs) from M/s. Daman Metalic Oxides, Rs.377.75 lakhs (Rs.73.58 lakhs) from Mr.Anil Kumar Bansal, Rs.176.25 lakhs (Rs.114.75 lakhs) from Mr.R P Bansal, Rs. 222.75 lakhs (Rs.122.47 lakhs) from Mr.Ashish Bansal, Rs.68.90 lakhs (Rs.72.50 lakhs) from Mrs.Manju Bansal,Rs.48.75 lakhs (Rs. 30.50 lakhs) from Mrs.Charu Bansal and Rs.42.75 lakhs (Rs.44.00 lakhs) from Mrs.Megha Choudhari, Rs.85.30 lakhs (Rs.64.00 lakhs) from Mrs.Saroj Bansal , Rs.Nil (Rs. 10.5 lakhs) from Mrs.Vandana Bansal, and Rs. Nil (Rs. 5.00 lakhs) from Mr. Punit Choudhari, Rs. Nil (Rs. 1.25 lakhs) from Mrs. Vijaya Bansal and Rs. Nil (Rs. 5.22 lakhs) from Mrs. Sushma Gupta

10.00 Loan paid include Rs. 98.95 lakhs (Nil) to M/s. Daman Metalic Oxides, Rs.Nil (Rs. 3.25 lakhs) to Mr. Padam C Bansal, Rs.32.95 lakhs (Rs. 107.35 lakhs) to Mr. Anil Kumar Bansal, Rs. Nil (Rs. 91.45 lakhs) to Mr.Devakar Bansal, Rs.21.71 (Rs. 93.30 lakhs) to Mr. R P Bansal, Rs. 20.45 lakhs (Rs.143.95 lakhs) to Mr. Ashish Bansal, Rs.68.90 lakhs (Rs.90.87 lakhs) to Mrs.Manju Bansal, Rs.48.75 lakhs (Rs.30.50 lakhs) to Mrs.Charu Bansal, Rs.43.09 lakhs (Rs. 54.94 lakhs) to Mrs.Megha Choudhari, Rs.Nil (Rs.62.30 lakhs) to Mrs.Vandana Bansal Rs. 85.30 lakhs (Rs.81.60 lakhs) to Mrs.Saroj Bansal, Rs. 10.10 lakhs (Nil) to Mr. Pawan Bansal, Rs.12.64 lakhs (Nil) to Mr. Punit Choudhari,Rs. 10.00 lakhs (Nil) to Mrs. Sashi Gupta, Rs.1.79 lakhs (Nil) to Mr. Manoj Kumar Bansal and Rs.5.75 lakhs (Nil) to Mrs. Sushma Gupta

11.00 Trade and other payable include Rs.Nil (Rs.91.83 lakhs) to M/s.Daman Metalic Oxides, Rs.1.95 lakhs (Nil) to M/s. Bansal Metallic Oxide and Rs. Nil (Rs. 119.33 lakhs) to M/s. Bansal Chemicals (India), Rs. Nil (Rs. 10.00 lakhs) to M/s. Rajendra Metchem, Rs. 351.24 lakhs (Nil) to Mr. Anil Kumar Bansal, Rs.Nil (Rs.55.33 lakhs) to Mr.Padam C Bansal, Rs.284.97 lakhs (Rs.100.00 lakhs) to Mr.R P Bansal, Rs.216.04 lakhs (Nil) to Mr.Ashish Bansal, Rs.Nil (Rs.0.50 lakhs) to Mr.Y.V. Raman, Rs.Nil (Rs. 107.68 lakhs) to Mrs.Vijaya Bansal, Rs.Nil (Rs. 9.12 lakhs) to Mr.Pawan Bansal, Rs.Nil (Rs. 10.50 lakhs) to Mrs.Vandana Bansal, Rs.Nil (Rs. 10.00 lakhs) to Mrs.Sashi Gupta, Rs. Nil (Rs.7.11 lakhs) to Mr.Punit Choudhari, Rs. Nil (Rs.0.90 lakhs) to Mr.Amber Bansal, Rs. Nil (Rs.1.61 lakhs) to Mr.Manoj Kumar Bansal and Rs. Nil (Rs.5.22 lakhs) to Mrs.Sushma Gupta

12.00 Trade and other Receivables includes Rs. Nil (Rs. 79.27 lakhs) from M/s. Bansal Chemicals (India)

13.00 Inter Corporate Deposit outstanding includes Rs. Nil (Rs. 104.97 lakhs) payable to M/s Ardee Industries P Ltd.

8.0 Contigent Liaibilites and Commitments (Rs. in Lakhs)

(A) Contigent Liaiblites

Particulars As at 31 March, As at 31 March, 2015 2014

(I ) (i) Gurantees to bank and Financial Institutions against credit facilies extended to subsidiary Company - 30.00

(ii) Performance/ Finance Guarantees 25.00 25.00

(iii) Other Money for which the company is contingently liable Liability in Respect of LC Opened 458,63 608.30

Liablity in respect of Bills Discounted with Banks 162.87 542.93

(II) Commitments

(a) Estimted amount of contracts remaining to be executed on capital account and not provided for 222.00 310.55

The business of the Company falls under a single primary segment i.e., Metal for the purpose of Accounting Standard 17.

9.0 Previous year figures have been regroped/rearranged wherever necessary.

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Mar 31, 2014

1.1 Employee Benefits (AS -15 revised)

As per Accounting Standard 15 " Employee benefits", the disclosures as defined in the Accounting Standard are given below:

1.2 Defined Benefit Plan :

The Employee''s gratuity liability has been made on actuarial basis. The Present value of obligation is determined by using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

2.0 (i) Related Party Disclosures in accordance with Accounting Standard 18, the disclosure required is given below

(a) Name of the related parties and relationship

Subsidiary: M/s POCL Enterprises Limited.

(b) Other Related Enterprises

M/s. Ardee Industries Private Limited

M/s. Bansal Metalic Oxides

M/s. Bansal Chemicals (India)

M/s. Daman Metalic Oxides

(c) Key Management Personnel

Name Designation

Dr. Padam C Bansal Chairman

Sri. Anil Kumar Bansal Managing Director

Sri. Sunil Kumar Bansal Whole Time Director

Sri. R.P.Bansal Whole Time Director

Sri. Devakar Bansal Whole Time Director

Sri. Y.V. Raman Whole Time Director

Sri. Ashish Bansal Director

(d) Relatives of Key Management Personnel

Name Relationship

Smt. Vijaya Bansal W/o. Dr. Padam C.Bansal

Smt. Manju Bansal W/o . Sri. Anil Kumar Bansal

Smt. Neelam Bansal W/o. Sri. Sunil Kumar Bansal

Smt. Saroj Bansal W/o. Sri. R.P. Bansal

Smt. Vandana Bansal W/o. Sri. Devakar Bansal

Smt. Charu Bansal W/o. Sri. Ashish Bansal

Sri. Pawan Bansal S/o. Sri. R.P. Bansal

Sri. Harsh Bansal S/o. Sri. Sunil Kumar Bansal

Sri. Sagar Bansal S/o. Sri. Devakar Bansal

Smt. Megha Choudhari D/o. Sri. Anil Kumar Bansal

Sri. Punit Choudhari Daughter''s husband of Sri. Anil Kumar Bansal

Smt. Shashi Gupta Sister of Sri. Anil Kumar Bansal

Sri. Narendra Kumar Gupta Sister''s husband of Sri.Anil Kumar Bansal

Sri. Manoj Kumar Bansal Brother of Sri.Anil Kumar Bansal

Smt. Sushma Gupta D/o Sri.R P Bansal

Sri. Amber Bansal S/o Sri.Devakar Bansal

iii Disclosure in respect of Material related party transaction during the year

1 Purchase / Material Consumed include Rs.628.87 lacs(Rs. 578.35 lacs) from M/s. Bansal Chemicals (India), Rs.NIL (Rs.0.50 lacs) from M/s. Ardee Industries Pvt. Ltd and Rs.NIL (Rs.1.53 lacs) from M/s. Bansal Metalic Oxides.

2 Sale include Sale of Rs. 12.43 lacs (Rs. 13.41 lacs) to M/s.Ardee Industries Pvt. Ltd., Rs.584.30 lacs (Rs.626.38 lacs) to M/s. Bansal Chemicals (India) and Rs. 9.13 lacs (Rs.24.25 lacs) to M/s. Bansal Metalic Oxides.

3 Conversion Charges paid include Rs.23.21 lacs (Rs.18.07 lacs) to M/s. Ardee industries Pvt.Ltd and Rs. 68.62 lacs (Rs.62.74 lacs) to M/s. Bansal Metalic Oxides.

4 Remuneration paid include Rs. 39.57 lacs (Rs.35.98 lacs) to Sri.Anil Kumar Bansal, Rs.32.26 lacs (Rs. 29.62 lacs) to Sri.Sunil Kumar Bansal; Rs.31.06 lacs (Rs.28.41 lacs) to Sri. R P Bansal, Rs.29.50 lacs (Rs.27.49 lacs) to Sri. Devakar Bansal, Rs.9.97 lacs (Rs.9.35 lacs) to Sri. Y.V. Raman, Rs.29.14 lacs (Rs.24.61 lacs) to Sri.Ashish Bansal.

5 Interest paid include Rs.13.39 lacs (Rs.11.52 lacs) to M/s. Ardee Industries Pvt. Ltd., Rs.8.91 lacs (Rs.11.31 lacs) to M/s.Daman Metalic Oxides , Rs. 1.29 lacs (Rs. 2.37 lacs) to M/s. Rajendra Metchem, Rs.6.91 lacs (Rs.5.54 lacs) to Dr. Padam C Bansal, Rs.5.85 lacs (Rs.6.10 lacs) to Sri.Anil Kumar Bansal, Rs.NIL (Rs.0.89 lacs) to Sri. Sunil Kumar Bansal, Rs.14.52 lacs (Rs.6.44 lacs) to Sri.R P Bansal, Rs.1.00 lacs (Rs.15.57 lacs) to Sri.Devakar Bansal, Rs.8.27 lacs (Rs.2.77 lacs) to Sri.Ashish Bansal, Rs. 0.06 lacs ( Rs.0.06 lacs ) to Sri. Y.V.Raman, Rs.12.91 lacs (Rs.11.78 lacs) to Smt.Vijaya Bansal, Rs.2.50 lacs (Rs.1.27 lacs) to Smt.Manju Bansal, Rs.NIL (Rs.1.73 lacs) to Smt.Neelam Bansal, Rs.3.62 lacs (Rs.1.45 lacs) to Smt.Saroj Bansal, Rs.1.73 lacs (Rs. 2.54 lacs) to Smt.Megha Choudhari, Rs.3.65 lacs (Rs.3.43 lacs) to Smt.Charu Bansal, Rs.NIL (Rs.0.19 lacs ) to Sri.Harsh Bansal, Rs.1.09 lacs (Rs.0.99 lacs) to Sri.Pawan Bansal, Rs.NIL (Rs.0.47 lacs) to Sri.Sagar Bansal, Rs.1.20 lacs (Rs.1.20 lac) to Smt.Sashi Gupta,Rs.0.38 lacs (Rs.0.38 lacs) to Sri.Narendra Kumar Gupta, Rs.0.37 lacs (Rs.1.73 lacs ) to Smt.Vandana Bansal and Rs.0.58 lacs (Rs.0.13 lacs) to Sri. Punit Choudhari Rs.0.11 lacs (Rs. NIL) to Sri. Amber Bansal, Rs.0.20 lacs (Rs. NIL) to Sri. Manoj Kumar Bansal, Rs.0.59 lacs (Rs. NIL) to Smt. Sushma Gupta.

6 Sales and distribution expenses represents Rs. 16.81 lacs ( Rs.22.50 lacs) paid to M/s. Bansal Chemicals (India), Rs. 0.20 lacs (Rs. NIL) paid to M/s. Ardee Industries Pvt. Ltd.

7 Inter Corporate Deposit Paid Rs.17.58 lacs (Rs.15.69 Lacs) to M/s. Ardee Industries Pvt. Ltd.

8 Inter Corporate Deposit Received Rs.10.21 lacs (Rs.26.05 lacs) from M/s. Ardee Industries Pvt Ltd.

9 Loan taken include Rs. 25.00 lacs (Rs.NIL) from M/s. Daman Metalic Oxides, Rs.NIL (Rs.12.55 lacs) from Dr.Padam C Bansal, Rs.73.58 lacs (Rs.104.75 lacs) from Sri.Anil Kumar Bansal, Rs.NIL (Rs. 18.50 lacs) from Sri. Sunil Kumar Bansal, Rs.114.75 lacs (Rs.114.50 lacs) from Sri.R P Bansal, Rs.NIL (Rs. 67.00 lacs) from Sri. Devakar Bansal, Rs. 122.47 lacs (Rs.51.50 lacs) from Sri.Ashish Bansal, Rs.72.50 lacs (Rs.30.50 lacs) from Smt.Manju Bansal,Rs.30.50 lacs (Rs. 11.25 lacs) from Smt.Charu Bansal and Rs.44.00 lacs (Rs.76.50 lacs) from Smt.Megha Choudhary, Rs.64.00 lacs (Rs.20.00 lacs) from Smt.Saroj Bansal, Rs.10.50 lacs (Rs. 84.50 lacs) from Smt.Vandana Bansal, Rs. NIL (Rs.2.50 lacs) from Sri. Pawan Bansal, Rs. NIL (Rs.51.00 lacs) from Smt. Neelam Bansal and Rs. 5.00 lacs (Rs. 2.00 lacs) from Sri. Punit Choudhari and Rs. NIL (Rs. 4.00 lacs) from Sri.Sagar Bansal and Rs.1.25 lacs (Rs. NIL) from Smt. Vijaya Bansal, Rs. 5.22 lacs (Rs. NIL) from Smt. Sushma Gupta.

10 Loan paid Include Rs. NIL (Rs.50.00 lacs) to M/s. Daman Metalic Oxides, Rs. 3.25 lacs (Rs.NIL) to Dr. Padam C Bansal, Rs.107.35 lacs (Rs.169.97 lacs) to Sri. Anil Kumar Bansal, Rs.NIL (Rs.18.50 lac) to Sri. Sunil Kumar Bansal, Rs.91.45 lacs (Rs. 87.80 lacs) to Sri.Devakar Bansal Rs.93.30 lacs (Rs. 90.46. lacs) to Sri. R P Bansal, Rs. 143.95 lacs (Rs.48.02 lacs) to Sri. Ashish Bansal, Rs.NIL (Rs.51 lacs) to Smt.Neelam Bansal, Rs.90.87 lacs (Rs.18.88 lacs) to Smt.Manju Bansal, Rs.30.50 lacs (Rs.38.00 lacs) to Smt.Charu Bansal, Rs.54.94 lacs (Rs. 82.99 lacs) to Smt.Megha Choudhari, Rs.62.30 lacs (Rs.24.50 lacs) to Smt.Vandana Bansal, Rs.81.61 lacs (Rs.13.11 lacs) to Smt.Saroj Bansal, Rs. NIL (Rs. 4.00 lacs) to Sri. Sagar Bansal and Rs. NIL (Rs.2.27 lacs) to Smt. Sashi Gupta.

11 Trade and other payable Include Rs.91.83 lacs (Rs.65.93 lacs) to M/s.Daman Metalic Oxides, Rs.NIL (Rs.3.30 lacs) to M/s.Bansal Metallic Oxide, Rs. 119.33 lacs (Rs. NIL) to M/s.Bansal Chemicals (India), Rs. 10.00 lacs (Rs. NIL) to M/s. Rajendra Metchem, Rs. NIL ( Rs.45.72 lacs) to Sri. Anil Kumar Bansal; Rs.NIL (Rs.113.83 lacs) to Sri.Devakar Bansal, Rs.55.33 lacs (Rs.58.58 lacs) to Dr.Padam C Bansal, Rs.100.00 lacs (Rs.56.29 lacs) to Sri.R P Bansal, Rs. NIL (Rs.0.81 lacs) to Sri. Sunil Kumar Bansal, Rs.NIL (Rs.26.83 lacs) to Sri.Ashish Bansal, Rs.0.50 lacs (Rs.0.50 lacs) to Sri.Y.V. Raman, Rs.107.68 lacs (Rs.106.43 lacs) to Smt.Vijaya Bansal, Rs.NIL (Rs. 0.79 lacs) to Smt.Neelam Bansal, Rs.NIL (Rs.19.90 lacs) to Smt.Manju Bansal, Rs.9.12 lacs (Rs. 9.12 lacs) to Sri. Pawan Bansal, Rs.Nil (Rs.13.74 lacs) to Smt.Megha Choudhari, Rs.10.50 lacs (Rs. 64.03 lacs ) to Smt.Vandana Bansal, Rs.10.00 lacs ( Rs. 10.00 lacs) to Smt.Sashi Gupta, Rs.NIL (Rs.19.91 lacs) to Smt.Saroj Bansal, Rs.NIL (Rs. 0.79 lacs) to Smt.Neelam Bansal, Rs.3.19 lacs (Rs.3.19 lacs) to Sri. Narendra Kumar Gupta, Rs 7.11 lacs (Rs.NIL) to Sri. Punit Choudhari, Rs 0.90 lacs (Rs.NIL) to Sri. Amber Bansal, Rs 1.61 lacs (Rs.NIL) to Sri. Manoj Kumar Bansal and Rs 5.22 lacs (Rs.NIL) to Smt.Sushma Gupta.

12 Trade and other Receivables includes Rs.79.27 (Rs.87.61 lacs) from M/s. Bansal Chemicals (India).

13 Inter Corporate Deposit outstanding include Rs.104.97 lacs (Rs.112.34 lacs) payable to M/s. Ardee Industries Pvt Ltd.

14 Pondy Oxides and Chemicals Ltd has given Corporate Guarantee of Rs. 30.00 lacs (Rs. 30.00 lacs) to M/s. POCL Enterprises Ltd.

15.0 Contigent Liabilities and Commitments (Rs. in Lakhs)

(A) Contigent Liabilities

Particulars As at 31 March, As at 31 March, 2014 2013

(I) (i) Gurantees to bank and Financial Institutions against credit facilities extended to subsidiary company 30.00 30.00

(ii) Performance/ Finance Guarantees 25.00 1.36

(iii) Other Money for which the company is contingently liable

(a) Liability in Respect of LC Opened 608.30 138.60

(b) Liability in respect of Bills Discounted with Banks 542.93 814.38

(II) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for 310.55 27.25

16.0 The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from complaince with section 212 of the Companies Act, 1956, subject fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

17.0 Previous year figures have been regrouped/rearranged wherever necessary.

Notes:

1. Ministry of Corporate Affairs, Government of India has granted a general exemption through its General Circular No: 2/2011 dated 8th February, 2011 from the applicability of the provisions of sub- section [1] of section 212 of the Companies Act, 1956.

2. The company will make available the annual accounts of the subsidiary companies and related detailed information if sought by the members of the company or its subsidiaries. Further, the annual accounts of the subsidiary companies will also be kept for inspection by any member of the company or its subsidiary at the Registered Office of the company and that of the subsidiary companies concerned.

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Mar 31, 2013

1.1 Defined Benefit Plan :

The Employee''s gratuity liability has been made on actuarial basis . The Present value of obligation is determined by using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

2.0 (i) Related Party Disclosures

In accordance with Accounting Standard 18, the disclosure required is given below

(a) Name of the related parties and relationship

Subsidiary: M/s POCL Enterprises Limited.

(b) Other related enterprises

M/s. Ardee Industries Private Limited M/s. Bansal Metalic Oxides M/s. Bansal Chemicals (India) M/s. Daman Metalic Oxides

iii Disclosure in respect of Material related party transaction during the year

1 Purchase / Material Consumed include Rs.578.35 lacs(Rs. 1257.94 lacs) from M/s. Bansal Chemicals (India), Rs.0.50 lacs (Rs.1.25 lacs) from M/s. Ardee Industries Pvt. Ltd and Rs.1.53 lacs (Nil) from M/s. Bansal Metalic Oxides.

2 Sale include sale of Rs. 13.41 lacs (Rs. 10.35 lacs) to M/s.Ardee Industries Pvt. Ltd, Rs.626.38 lacs (Rs.434.97 lacs) to M/s. Bansal Chemicals (India) and Rs. 24.25 lacs (Rs.24.88 lacs) to M/s. Bansal Metalic Oxides.

3 Conversion Charges paid include Rs.18.07 lacs (Rs.4.09 lacs) to M/s. Ardee Industries Pvt.Ltd and Rs. 62.74 lacs (Rs.48.63 lacs) to M/s. Bansal Metalic Oxides.

4 Remuneration paid include Rs. 35.98 lacs (Rs.34.35 lacs) to Sri.Anil Kumar Bansal, Rs.29.62 lacs (Rs. 28.21) to Sri.Sunil Kumar Bansal; Rs.28.41 lacs (Rs.28.04 lacs) to Sri. R. P. Bansal, Rs.27.49 lacs (Rs.26.33 lacs) to Sri. Devakar Bansal, Rs.9.35 lacs (Rs.8.4 lacs) to Sri. Y.V. Raman, Rs.24.61 lacs (24.60) to Sri.Ashish Bansal.

5 Interest paid include Rs.11.52 lacs (Rs.8.89 lacs) to M/s. Ardee Industries Pvt. Ltd, Rs.11.31 lacs (Rs.6.39 lacs) to M/s. Daman Metalic Oxides, Rs. 2.37 lacs (Rs.0.66 lacs) to M/s. Rajendra Metchem, Rs.5.54 lacs (Rs.4.02 lacs) to Dr. Padam C Bansal, Rs.6.10 lacs (Rs.7.19 lacs) to Sri.Anil Kumar Bansal, Rs.0.89 lacs (Rs.0.16 lacs) to Sri. Sunil Kumar Bansal, Rs.6.44 lacs (Rs.2.17 lacs) to Sri.R. P. Bansal, Rs.15.57 lacs (Rs.9.30 lacs) to Sri.Devakar Bansal, Rs.2.77 lacs (Rs.3.16 lacs) to Sri.Ashish Bansal, Rs. 0.06 lacs (Rs.0.07 lacs) to Sri. Y.V. Raman, Rs.11.78 lacs (Rs.10.87 lacs) to Mrs.Vijaya Bansal, Rs.1.27 lacs (Rs.0.43 lacs) to Mrs.Manju Bansal, Rs.1.73 lacs (Rs.1.37 lacs) to Mrs.Neelam Bansal, Rs.1.45 lacs (Rs.1.10 lacs) to Mrs.Saroj Bansal, Rs.2.54 lacs (Rs.0.58 lacs) to Mrs.Megha Choudhari, Rs.3.43 lacs (Rs.3.13 lacs) to Mrs.Charu Bansal, Rs.0.19 lacs (0.19) to Sri.Harsh Bansal, Rs.0.99 lacs (Rs.0.84 lacs) to Sri.Pawan Bansal, Rs.0.47 lacs (Rs.0.27 lacs) to Sri.Sagar Bansal, Rs.1.20 lacs (Rs.1.26 lacs) to Mrs.Sashi Gupta, Rs.0.38 lacs (Rs.0.38 lacs) to Sri.Narendra Kumar Gupta, Rs.1.73 lacs (Rs.0.20 lacs) to Mrs. Vandana Bansal and Rs.0.13 lacs (Nil) to Sri. Punit Choudhari.

6 Sales and distribution expenses represents Rs. 22.50 lacs (Rs.14.52 lacs) paid to M/s. Bansal Chemicals (India).

7 Inter corporate deposit paid Rs.15.69 lacs (Rs.44.62 Lacs) to M/s. Ardee Industries Pvt. Ltd.

8 Inter corporate deposit received Rs.26.05 lacs (Rs.43 lacs) from M/s. Ardee Industries Pvt Ltd.

9 Loan taken include Nil (Rs.50 lacs) from M/s. Daman Metalic Oxides, Rs.12.55 lacs (Rs. 5.60 lacs) from Dr.Padam C Bansal, Rs.104.75 lacs (Rs.142.00 lacs) from Sri.Anil Kumar Bansal, Rs.18.50 lacs (Rs. 13.50 lacs) from Sri. Sunil Kumar Bansal, Rs.114.50 lacs (Rs.71.50 lacs) from Sri.R. P. Bansal, Rs.67.00 lacs (Rs. 128.25 lacs) from Sri. Devakar Bansal, Rs. 51.50 lacs (Rs. 64.00 lacs) from Sri.Ashish Bansal, Rs.30.50 lacs (Rs. 7.75 lacs) from Mrs.Manju Bansal, Rs.11.25 lacs (Rs. 29.25 lacs) from Mrs.Charu Bansal and Rs.76.50 lacs (Rs.18.00 lacs) from Mrs.Megha Choudhari, Rs.20.00 lacs (Rs.2.90 lacs) from Mrs.Saroj Bansal, Nil (Rs. 4.20 lacs) from Sri. Harsh Bansal, Rs.84.50 lacs (Rs. 3.60 lacs) from Mrs.Vandana Bansal, Rs. 2.50 lacs (Nil) from Sri. Pawan Bansal. Rs. 51.00 lacs (Nil) from Mrs.Neelam Bansal, Rs. 2.00 lacs (Nil) from Sri. Punit Choudhari and Rs.4.00 lacs (Nil) from Sri.Sagar Bansal.

10 Loan paid Include Rs. 50 .00 lacs (Nil) to M/s. Daman Metalic Oxides, Nil (Nil) to Dr. Padam C Bansal, Rs.43.00 lacs (Rs. 43.00 lacs) to Sri. Anil Kumar Bansal, Rs.13.50 lacs (Rs.13.50 lacs) to Sri. Sunil Kumar Bansal, Rs.16 lacs (Rs. 16.00 lacs) to Sri.Devakar Bansal, Rs.12.00 lacs (Rs. 12.00 lacs) to Sri. R P Bansal, Rs.0.50 lacs (Rs.0.50 lacs) to Sri Y.V.Raman, Nil (Nil) to Sri. P.N.Sridharan, Rs.46.00 lacs (Rs.46.00 lacs) to Sri. Ashish Bansal, Rs.51.00 lacs (Rs.10.00 lacs) to Mrs.Neelam Bansal, Rs.18.88 lacs (Rs.1.00 lac) to Mrs.Manju Bansal, Rs.38.00 lacs (Rs.2.50 lacs) to Mrs.Charu

Bansal, Rs.82.99 lacs (Rs. 3.00 lacs) to Mrs.Megha Choudhari, Rs.24.50 lacs (Rs.1.30 lacs) to Mrs.Vandana Bansal, Nil (Rs. 2.95 lacs) to Sri. Harsh Bansal, Rs.13.11 lacs (Rs.1.10 lacs) to Mrs.Saroj Bansal, Nil (Rs. 0.34 lacs) to Sri. Narendra Kumar Gupta, Rs. 4.00 lacs (Nil) to Sri. Sagar Bansal and Rs. 2.27 lacs (Nil) to Mrs. Sashi Gupta.

11. Trade and other payable include Rs.65.93 lacs (Rs.105.76 lacs) to M/s.Daman Metalic Oxides, Nil (Rs.1.40 lacs) to M/s.Ardee Industries Pvt Ltd, Rs.3.30 lacs(Rs. 5.63 lacs ) to Bansal Metalic Oxides and Nil (Rs 0.98 lacs) to Bansal Chemicals (India), Rs. 45.72 lacs (Rs. 105.47) to Sri. Anil Kumar Bansal; Rs.113.83 lacs (Rs.120.62) to Sri.Devakar Bansal, Rs.58.58 lacs (Rs.42.15 lacs) to Dr.Padam C Bansal, Rs.56.29 lacs (Rs.67.04 lacs) to Sri.R. P. Bansal, Rs. 0.81 lacs (Nil) to Sri. Sunil Kumar Bansal, Rs.26.83 lacs (Rs.20.85 lacs) to Sri.Ashish Bansal, Rs.0.50 lac (Rs.0.50 lac) to Sri.Y.V. Raman, Rs.106.43 lacs (Rs. 98.18 lacs) to Mrs.Vijaya Bansal, Rs.0.79 lacs (Rs. 7.35 lacs) to Mrs.Neelam Bansal, Rs.19.90 lacs (Rs.7.13 lacs) to Mrs.Manju Bansal, Rs.9.12 lacs (Rs. 8.29 lacs) to Mr.Pawan Bansal, Nil (Rs. 29.57 lacs) to Mrs.Charu Bansal, Rs.13.74 lacs (Rs. 17.95 lacs) to Mrs.Megha Choudhari, Rs.64.03 lacs (Rs. 2.47 lacs) to Mrs.Vandana Bansal, Nil (Rs. 1.62 lacs) to Sri.Harsh Bansal, Nil (Rs. 2.51 lacs) to Sri.Sagar Bansal, Rs.10.00 lacs (Rs. 11.72 lacs) to Mrs.Sashi Gupta, Rs.19.91 lacs (Rs.11.70 lacs) to Mrs.Saroj Bansal, Rs.0.79 lacs (Rs. 7.35 lacs) to Mrs.Neelam Bansal and Rs.3.19 lacs (Rs.3.19 lacs) to Sri.Narendra Kumar Gupta.

12 Trade and other receivables includes Rs. 87.61 lacs (Nil) from M/s. Bansal Chemicals (India),

13 Inter corporate deposit outstanding include Rs. 112.34 lacs (Rs. 91.62 lacs) payable to M/s Ardee Industries Pvt. Ltd.

14 Pondy Oxides and Chemicals Ltd has given Corporate Guarantee of Rs. 30 lacs (Rs. 30.00 lacs) to M/s. POCL Enterprises Ltd.

3.0 Contigent Liabilities and Commitments (Rs. in Lakhs)

(A) Contigent Liabilities

Particulars As at 31 March, As at 31 March, 2013 2012

(I) (i) Gurantees to bank and Financial Institutions against credit facilies extended to third parties 30.00 30.00 (ii) Performance Guarantees 1.36 3.86

(iii) Other Money for which the company is contingently liable 138.60 793.70

(iv) Liability in respect of Bills Discounted with Banks 814.38 340.55

(II) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for 27.25 20.50

4.0 The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3, dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

5.0 Previous year figures have been regroped/rearranged wherever necessary.

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Mar 31, 2012

Particulars As at 31st March, As at 31st March, 2012 2011

1 Contingent Liaibilites and Commitments

(A)Contingent Liaibilites

(I) (i) Guarantees to Bank and Financial Institutions against credit facilites extended to third parties 30.00 1430.00

(ii) Performance Guarantees 3.86 3.86

(iii) Other Money for which the company is contingently liable 793.70 220.69

(iv) Liability in respect of Bills Discounted with Banks 340.55 670.56

(II) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for 20.50 39.22

2. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February 2011 and 21 st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiary has been included in the Consolidated Financial Statements.

3. The financial results of the current period are not strictly comparable with the corresponding period due to consoildation of results of M/s. Lohia Metals Pvt. Ltd effective from 01.04.2011 pursuant to the , merger of the latter with the Company vide the order of the Honourable High Court of Madras dated 12th March 2012.

4 Previous year figures have been regrouped/rearranged wherever necessary, due to amalgamation previous year figures are not comparable.

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Mar 31, 2011

1. Contingent liabilities not provided for: (Rs. in lakhs)

S. No Nature of Contingency Current year figure Last year figure

1. Letter of Credit 220.69 520.59

2. Capital WIP 39.22 35.00

2. All secured loans availed from the banks are personally guaranteed by four Promoter Whole Time Directors.

3. The Company has given Corporate Guarantee of Rs.1430 lakhs (Rs.30 lakhs) on behalf of Subsidiary Companies M/s. POCL Enterprises Limited (formerly known as Baschem Pharma Limited) and M/s. Lohia Metals Pvt. Ltd

4. Sundry debtors of Rs.1.88 lakhs (Rs. 10.30 lakhs), being non-recoverable has been written off as bad debts.

5. Auditors Remuneration

Statutory Audit : Rs. 3.50 lakhs (Rs.2.00 lakhs)

TaxAudit : Rs. 0.50 lakhs (Rs.0.50 lakhs)

Others : Rs. 0.74 lakhs (Rs.0.14 lakhs)

6. CIF Value of Imports.

Raw Materials : Rs. 11369.57 lakhs (Rs.8623.53 lakhs)

7. Expenditure in Foreign Currencies on Cash Basis Travelling Expenses : Rs. 6.85 lakhs (Rs. 1.92 lakhs)

8. Earnings in Foreign Exchange.

Sales :Rs. 12,673.47 lakhs (Rs. 5088.48 lakhs)

9. Remuneration to Managing Director and Whole Time Directors :

Salary : Rs 45.00 lakhs (Rs 39.20 lakhs)

Perquisites : Rs.31.43 lakhs (Rs. 13.90 lakhs)

10. Related party transactions

In accordance with Accounting Standard 18, the disclosure required is given below

1. Name of the related parties and relationship

Subsidiary: M/s POCL Enterprises Limited. (Formelly known as Baschem Pharma Limited) M/s.Lohia Metals Private Limited.

2. Other related enterprises

M/s. Ardee Industries Private Limited.

M/s. Bansal Metallic Oxides

M/s. Bansal Chemicals (India)

M/s. Daman Metallic Oxides

3. Key Management Personnel

S.No Name Designation

1 Sri. PadamC. Bansal Chairman

2 Sri. Anil Kumar Bansal Managing Director

3 Sri. Sunil Kumar Bansal Whole Time Director

4 Sri. R.P.Bansal Whole Time Director

5 Sri. Devakar Bansal Whole Time Director

6 Sri. Y.V.Raman Whole Time Director

7 Sri. Ashish Bansal , Director

4. Relatives of Key Management Personnel

S.No Name Name of the relative

1 Sri. Pawan Bansal S/o. Sri.R.P.Bansal

2 Smt. Manju Bansal W/o. Sri.Anil Kumar Bansal

3 Smt. Neelam Bansal W/o. Sri.Sunil Kumar Bansal

4 Smt. Saroj Bansal W/o. Sri.R.P.Bansal

5 Smt. Vandana Bansal W/o. Sri.Devakar Bansal

6 Smt. Shashi Gupta Sister of Sri.Anil Kumar.Bansal

7 Sri. Narendra Kumar Gupta Sister's husband of Sri Anil Kumar. Bansal

11. During the year the Board of directors of the Company has approved the merger of its subsidiary company M/s Lohia Metals Private Limited with holding company M/s Pondy Oxides and Chemicals Limited on 18/03/2011 subject to the approval of the Honorable High Court of Madras as required under Section 391-394 of the Companies Act ,1956 with 2 fully paid equity share of Rs 10/- each of M/s Lohia Metals Private Limited be exchanged with 5 fully paid equity shares of Rs 10/- each of M/s Pondy Oxides and Chemicals Limited.

12. The company has not received the information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end has not been given.

13. Balance in Sundry Debtors/ Creditors and advances amount are subject to confirmation.

14. General:

i. Previous year's figures have been regrouped wherever necessary

ii. A figure in brackets represents previous year figures.

iii. Figures have been rounded off to the nearest rupee.

iv. Schedules 1 to 18 and accounting policies and notes (schedule-19) annexed to this Balance sheet and Profit and Loss account form part of the accounts and should be read in conjunction therewith.

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Mar 31, 2010

1. Contingent Liabilities not. provided for [Rs in Lakhs]

S.No Nature of contingency Current year figure Last year figure

1. Letter of Credit 117.78 379.77

2. Capital WIP 35.00 28.81

3. CST Payable 6.49 6.49

2 All secured loans availed, from the banks are personally guaranteed by four Promoter Whole Time Directors.

3. The Company has given Corporate Guarantee of Rs.30 lakhs [Rs.30 lakhs] on behalf of Subsidiary Company M/s. Baschem Pharma Limited.

4. Sundry debtors of Rs.10.30 Lakhs [Rs.0.76 Lakhs], being non-recoverable has been written off as bad debts.

5. Unutilized DEEC license on account ofdeemed exports outstanding at the year-end is Rs. Nil [Rs.54.89 Lakhs].

6. Auditors Remuneration

Statutory Audit : Rs. 2.00 Lakhs [Rs.2.00 Lakhs]

Tax Audit : Rs. 0.50 Lakhs [Rs.0.50 Lakhs]

Others . Rs. 0.14 Lakhs [Rs.0.31 Lakhs]

7. CIF Value of Imports

Raw Materials : Rs. 8,623.53 Lakhs [Rs.5, 492.83 Lakhs]

8. Expenditure in Foreign currencies on cash basis

Travelling expenses : Rs. 1.92 Lakhs [Rs.3.61 Lakhs]

9. Earnings in Foreign exchange

Sales :Rs. 5,088.48 Lakhs {Rs. 1,664.74 Lakhs]

10. Remuneration to Managing Director and Whole Time Directors

Salary : Rs. 39.20 Lakhs [Rs. 34.82 Lakhs]

Perquisites : Rs. 13.90 Lakhs [Rs. 14.20 Lakhs]

11. Related Party Transactions

In accordance with Accounting Standard 18, the disclosure required is given below

1. Name of the related Parties and relationship Subsidiary: M/s Baschem Pharma Limited

M/s.Lohia Metals Private Limited

2. Other related enterprises

M/s. Ardee Industries Private Limited

M/s. Bansal Metallic Oxides

M/s. Bansal Chemicals [India]

3. Key Management Personnel

S.No Name Designation

1. Sri. Padam C.Bansal Chairman

2. Sri. Anil Kumar Bansal Managing Director

3. Sri. Sunil Kumar Bansal Whole Time Director

4. Sri. R.P. Bansal Whole Time Director

5. Sri. Devakar Bansal Whole Time Director

6. Sri. Y.V.Raman Whole Time Director

7. Sri. Ashish Bansal Director

4. Relatives of Key Management Personnel

S.No Name Relationship

1. Sri. Pawan Bansal S/o. Sri.R.P.Bansal

2. Smt. Manju Bansal W/o. Sri.Anil Kumar Bansal

3. Smt. Neelam Bansal W/o. Sri.Sunil Kumar Bansal

4. Smt. Saroj Bansal W/o. Sri.R.P.Bansal

5. Smt. Vandana Bansal W/o. Sri.Devakar Bansal

6. Smt. Shashi Gupta Sister of Sri.Anil Kumar.Bansal

7. Sri. Narendra Kumar Gupta Sisters husband of Sri. Anil Kumar Bansal 12. The company has not received the information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end have not been given.

13. Balance in Sundry Debtors/ Creditors and advances amount are subject to confirmation.

14. General

i. Previous years figures have been regrouped wherever necessary

ii. Figures in brackets represent previous year figures.

iii. Figures have been rounded off to the nearest rupee.

iii. Schedules 1 to 18 and accounting policies and notes [Schedule-19] annexed to this Balance Sheet and Profit and Loss Account form part of the accounts and should be read in conjunction therewith.

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Mar 31, 2000

1. Excise duty liability on finished goods as on 31.03.2000 is Rs. 12.83 lacs (Rs. 14.94 lacs) not provided in the accounts, as per Schedule 20(4) of Accounting policies and this has no effect on Profit and Loss Account.

2. Estimated amount ofcontingent liability on Bank Guarantee and Letter of credit availed is Rs.74.46 lacs (Rs.58.86 lacs).

3. (a) Bills discounted with Canara Bank secured by way of hypothecation of stocks, book debts and first charge of factory land, building and plant and machinery subject to a maximum limit of Rs.100 lacs (Rs. 150 lacs) is Rs.95.90 lacs (Rs.167.78 lacs).

(b) All secured loans availed from the Banks are personally guaranteed by five Directors.

4. Guarantees given on behalf of Subsidiary Company M/s Baschem Pharma Limited in respect of loans and advances granted to it by bank is Rs.44 lacs (Rs.44 lacs).

5. Estimated amount of contract remaining to be executed on capital account and not provided for is Rs.5.25 lacs (Rs.0.55 lacs).

6. Sundry Debtors, includes Rs.9,83,626/- (Rs.9,25,438/-) overdue and pending receivable in respect of which the company has filed a suit for recovery as per the advice of the companys Legal Advisor and in their opinion are recoverable. Further Rs.8,280/- (Rs. 95,199/-) non-recoverable has been written off as bad debts and an amount of Rs.Nil (Rs. 2,43,238/-) has been provided as doubtful debts in the current year.

7. The basis of valuation of inventories during the year conform to the revised accounting standard on the valuation of inventories (AS2) issued by the Institute of Chartered Accountants of India which became effective on 1 st April 1999. The effect of changes in value of inventories and profit for the year is Nil.

8. CIF value of Imports

Raw Materials: Rs.2,81,51,858/-(Rs.2,96,58,877).

9. Expenditure inforeign currencies Travelling expenses : Rs.1,34,030 (Nil)

10. Earnings in Foreign Exchange

Export of Metallic Oxides: Rs.98,095/- (Nil)

11. Remuneration to Managing director and Wholetime directors Salary Rs. 9,00,000/- (Rs.8,28,000/-) Perquisites Rs. 2,42,300/- (Rs.3,57,386/-)

12. In view of the insufficient information from the suppliers regarding their status as SSI units, the amount due to small scale industrial undertaking cannot be ascertained.

13. Balance in Sundry Debtors/Creditors and advances amount are subject to confirmation.

14. General

i. Previous years figures have been regrouped wherever necessary

ii. Figures have been rounded off to the nearest rupee.

iii. Schedules 1 to 19 and accounting policies and notes (schedule-20) annexed to this Balance Sheet and Profit and Loss Account form part of the accounts and should be read in conjunction therewith.