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Notes to Accounts of Vishnu Chemicals Ltd.

Mar 31, 2022

B) Unsecured Loans:1 Loans from Promoter Directors:

The loans from promoter Directors are interest-free and unsecured in nature. There are no specified terms and conditions, however the same are amortised using effective interest rate.

2 Loan from Subsidiary

The loan from Subsidiary carries Interest rate of 7% (7%) per annum.

C) Cumulative Redeemable preference Shares

The Company has issued and allotted 7,66,37,500 7% Cumulative Redeemable Preference Shares (CRPS) of face value of '' 10/- each aggregating '' 76,63,75,000/- to the existing 7% Cumulative Redeemable Preference Shareholders in lieu of their existing 4,75,00,000 7% Cumulative Redeemable Preference Shares of face value of '' 10/- each aggregating '' 47,50,00,000/- and the outstanding accumulated dividend thereon up to 31st March, 2017 amounting to '' 29,13,75,000. The redemption tenure has also been extended from 10 to 15 years and are now redeemable by 31-03-2033. During the year, preference dividend @ 1% has provided amounting '' 76,63,750/- and preference shareholders has given their consent to forego 6% preference dividend amounting '' 4,59,82,500/- for the financial year 2021-22

Disclosures:

The Company has provided for Deferred Tax in accordance with the Accounting Standard on "Income Taxes" (IND AS 12) issued by the institute of Chartered Accountants of India. The details of deferred tax assets and liabities of the Company as on the date of Balance Sheet are as given above:

A) Secured Loans:

1 The Rate of interest for loans repayable on demand from consortium of banks ranges from MCLR 2.75% to 5.00%. The rate of Interest on convertible FCNRB demand loan ranges from Libor 2.50% to 4.75% per annum.

2 Interest rate for the Bill Discounting facility ranges from 6.65% to 7.50%

3 Security:

Working Capital Loans from Consortium Bankers consisting of State Bank of India, Union Bank of India, Indian Overseas Bank and Andhra Bank are secured by first pari passu charge by way of hypothecation of inventories, book debts and other current assets of the Company, and second pari passu charge on the fixed assets of the Company. The promoter directors have extended their personal assets as securities i.e. land, plots, buildings and shares etc.,

4 Guarantees:

All the above loans are guaranteed by the Promoter Directors.

B) Unsecured Loans:

Loans from Promoter Directors disclosed here are short term in nature. There are no specified terms and conditions.

The principal amount remaining unpaid as at 31st March, 2022 in respect of enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) is '' 0.09 Lakhs (31st March, 2021 '' 16.24 Lakhs). The interest amount computed based on the provisions under Section 16 of the MSMED is '' 0.08 Lakhs (31st March, 2021 '' 4.32 Lakhs)

The list of undertakings covered under MSMED was determined by the Company on the basis of information available with it after getting confirmation from Suppliers.

NOTE 4l| SEGMENT REPORTING:

Operating segment is defined as a component of an entity which earns revenue, whose operating results are regularly reviewed by Chief Operating Decision Maker and for which discrete financial information is available. The Chairman and Managing Director of the Company, who regularly reviews the entity''s operating results to make decisions about allocation of resources and assessment of performance has been identified as the Chief Operating Decision Maker of the Company. As the Company is engaged in manufacture and sale of chemicals, the same has been identified as the sole operating segment.

Note: The details of the transactions during the year as reported above are net of GST, where applicable.

As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the Key Management personnel is not ascertainable and, therefore, not included above.

An amount of '' 322.86 Lakhs (Previous Year: '' 113.00 Lakhs) has been contributed to Krishna Foundation during the year towards Corporate Social Responsibility.

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured.

NOTE 43 The paid-up share capital of the Company as on financial year ended 31st March, 2022 and financial year ended 31st March, 2021 is '' 8,858.35 Lakhs divided into 1,19,46,020 Equity Shares of '' 10/- each and 7,66,37,500 7% Cumulative Redeemable Preference Shares of '' 10/- each. The Public Shareholding in equity capital as on 31st March, 2022 and as on 31st March, 2021 is 25%.

The preference shareholders have given their consent to forego 6% preference dividend of the eligible 7% preference dividend amounting '' 459.83 Lakhs for the financial year 2021-22 and Preference shareholders forego 7% preference dividend amounting '' 536.46 Lakhs for the financial year 2020-21

NOTE 44| EMPLOYEE BENEFITS:1. Defined Contribution Plan:

The company makes contributions towards provident fund and employee state insurance regularly at the applicable rates based on the salaries of the eligible employees. The obligation of the Company is limited to making the contributions and there is no further contractual or constructive obligation. The following are the details of contributions made during the year which are debited to Statement of Profit and Loss

NOTE 50 Figures for the previous year have been regrouped, rearranged, and reclassified, wherever considered necessary, to conform to the classification/ presentation of the current year.

Mar 31, 2019

1. Basis of Preparation of Financial Statements

a) Statement of Compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with Companies (Indian Accounting Standards) Rules as amended from time to time and other relevant provisions of the Act, as applicable.

b) Basis of Preparation

The financial statements have been prepared on a going concern basis and on an accrual method of accounting. Historical cost is used in preparation of the financial statements except as otherwise mentioned in the policy.

c) Functional and Presentation currency

The financial statements are prepared in INR, which is the Company''s functional currency.

d) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

- expected to be realised or intended to be sold or consumed in normal operating cycle,

- held primarily for the purpose of trading,

- expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- it is expected to be settled in normal operating cycle,

- it is held primarily for the purpose of trading, - it is due to be settled within twelve months after the reporting period, or

- there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

e) Use of Estimates and Judgments

The preparation of financial statements in conformity with Ind AS, requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as on the date of the financial statements and the income and expenditure for the reporting year. Though, these estimates a nd assumptions a re ba sed on the information avai lable at that point in time, the actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected

Critical estimates and judgments in applying accounting policies

Estimates and judgments made in applying accounting policies that have significant effect on the amounts recognized in the financial statements are as follows:

i) Property, Plant and Equipment

The charge in respect of periodic depreciation is derived after estimating the asset''s expected useful life and the expected residual value at the end of its life. The depreciation method, useful lives and residual values of Company''s assets are estimated by management at the time the asset is acquired and reviewed during each financial year.

ii) Employee Benefit Plans

Employee defined benefit plans and long term benefit plans are measured on the basis of actuarial assumptions. However, any changes in these assumptions may have impact on the reported amount of obligation and expenses.

Disclosures:

1. The Company has only one class of equity shares at a par value of Rs. 10. All the equity shares carry equal rights and obligations including for dividend and with respect to voting rights.

2. Names of shareholders holding more than 5% of the Share capital and their shareholding.

Disclosures:

A. Secured

1. Term Loans from banks represents loans from Consortium of Bankers - State Bank of India, Andhra Bank, Indian Overseas Bank and Union Bank of India. Term Loans are secured by charge on the assets acquired out of the term loan and charge on entire existing movable/ immovable assets of the Company. The above loans are further secured by personal guarantee of promoters and others. All the above securities rank in all respects pari passu amongst the consortium of bankers.

2. The term loans are repayable in predetermined periodic instalments outstanding up to 7 years period from the date of respective loan. These are repayable by 2023-24 and carry an average interest of 11.7% p.a. The aggregate amount of instalments outstanding as on March 31, 2019 is Rs. 8,065.59 Lakhs (March 31, 2018 Rs. 10,008.93 Lakhs)

3. The hire purchase loans are secured against the assets purchased out of those loans. The net carrying amount of assets acquired on hire purchase as on 31st March 2019 is Rs. 196.18 Lakhs (March 31, 2018: Rs. 198.12 Lakhs). The company had capitalized the assets at their fair value considering that the hire purchase agreements are in the nature of Finance Lease. The details are as follows:-

B) Unsecured Loans:

1 Loans from Promoters:

The loans from promoters are interest-free and unsecured in nature. There are no specified terms and conditions, however the same are amortised using effective interest rate.

C) Cumulative Redeemable Preference Shares

During the previous year , the Company has issued and allotted 7,66,37,500 7% Cumulative Redeemable Preference Shares (CRPS) of face value of Rs. 10/- each aggregating Rs. 76,63,75,000/- to the existing 7% Cumulative Redeemable Preference Shareholders in lieu of their existing 4,75,00,000 7% Cumulative Redeemable Preference Shares of face value of Rs. 10/- each aggregating Rs. 47,50,00,000/- and the outstanding accumulated dividend thereon up to March 31, 2017 amounting to Rs. 29,13,75,000.

The redemption tenure has also been extended from 10 to 15 years and are now redeemable by 31-03-2033. During the year, preference shareholders have given their consent to forego 6% of the 7% preference dividend for the financial year 2018-19. Refer to Note No. 38.

Disclosures:

A) Secured Loans:

1. The Rate of interest for loans repayable on demand from consortium of banks ranges from MCLR 3.80% to 4.95%

2. Interest rate for the Bill Discounting facility ranges from 9.10% to 14.25%

3 Security:

Working Capital Loans from Consortium Bankers consisting of State Bank of India, Union Bank of India, Indian Overseas Bank and Andhra Bank are secured by first pari passu charge by way of hypothecation of inventories, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company. The promoters have extended their personal assets as securities i.e. land, plots, buildings, shares etc.

3 Guarantees:

All the above loans are guaranteed by the Promoters.

B) Unsecured Loans:

Loans from Promoters disclosed here are short term in nature. There are no specified terms and conditions.

Disclosures:

The principal amount remaining unpaid as at 31.03.2019 in respect of enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) is Rs. 94.04 Lakhs (31.03.2018 - Rs. 27.71 Lakhs). The interest amount computed based on the provisions under Section 16 of the MSMED is Rs. 4.51 Lakhs

The list of undertakings covered under MSMED was determined by the company on the basis of information available with it after getting confirmation from Suppliers.

Note 2

Segment Reporting:

* Non-current assets exclude financial instruments, deferred tax assets, post-employment benefit assets and rights underinsurance contracts, loans.

Disaggregated Revenue:

As the Company is engaged in manufacture and sale of chemicals with no diversity, no separate disaggregation of revenue is reportable.

Note 3

There is no change in Equity Share Capital during the year. The Public Shareholding as on March 31, 2019 is 25%.

Note 4

During the previous year the authorized share capital of the company increased from Rs. 7500,00,000/- divided into 1,50,00,000 Equity Shares of Rs. 10/- each and 6,00,00,000 Preference Shares of Rs. 10/- each to Rs. 95,00,00,000/- divided into 1,50,00,000 Equity Shares of Rs. 10/- each and 8,00,00,000 Preference Shares of Rs. 10/- each by alteration of Clause V of Memorandum of Association the company vide shareholders postal ballot resolution dated 26th January, 2018.

Further during the previous year i.e. on 29th March, 2018, the company issued and allotted 7,66,37,500 further 7% Cumulative Redeemable Preference Shares (CRPS) of face value of Rs. 10/- each aggregating Rs. 76,63,75,000/- to the existing 7% Cumulative Redeemable Preference

Shareholders in lieu of their existing unredeemed 4,75,00,000 7% Cumulative Redeemable Preference Shares of face value of Rs. 10/- each aggregating Rs. 47,50,00,000/- and the outstanding accumulated dividend thereon amounting to Rs. 29,13,75,000/- as on 31st March, 2017 pursuant to section 55(3) of the Companies Act, 2013 read with rules made there under. Subsequently, the said allotment was ratified by the Board on receipt of the order dated 13th April, 2018 from Hon''ble National Company Law Tribunal, Bench at Hyderabad (NCLT) under section 55(3) of the Companies Act, 2013 and according to NCLT order dated 13th April, 2018 the existing 4,75,00,000 7% Redeemable Preference Shares of Rs. 10/- each deemed to have been redeemed.

The paid-up share capital of the Company as on financial year ended 31st March, 2019 and financial year ended 31st March, 2018 is Rs. 88,58,35,200/- divided into 1,19,46,020 Equity Shares of Rs. 10/- each and 7,66,37,500 Cumulative Redeemable Preference Shares of Rs. 10/- each.

Note 5 Subsidiaries:

The company has three 100% wholly owned subsidiaries - Vishnu Barium Private Limited in India and two overseas subsidiaries - Vishnu Hong Kong Limited and Vishnu South Africa Pty Limited.

Vishnu Hong Kong Limited, incorporated in Hong Kong, ceased functioning in March 2018 and a provision for the entire investment and other receivables has been made in the books of the holding company-Vishnu Chemicals Limited has been in 2018-19. The closure of the company was effected in 2018-19 as per the laws of Hong Kong and hence Vishnu Hong Kong Private Limited ceased to exist.

Vishnu South Africa Pty Limited was incorporated in 2017-18 in South Africa but is yet to commence operations. Though the incorporation was carried out, no investment towards Share Capital was made in that company as the same was not required on incorporation as per the laws of that country.

Note 6

Employee Benefits:

1. Defined Contribution Plan:

Note 7

Additional information pursuant to section 129 of the Companies Act, 2013: Salient features of the financial statements of the subsidiaries:

There are no assets and liabilities and revenue with regard to the subsidiary-Vishnu South Africa Pty Limited and another subsidiary-Vishnu Hong kong Limited which ceased operations and has been wound up.

Note 8

Figures for the previous year have been regrouped, rearranged and reclassified, wherever considered necessary, to conform to the classification/ presentation of the current year.

Mar 31, 2018

1. Basis of Preparation of Financial Statements

a) Statement of Compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 ("the Act"), Companies (Indian Accounting Standards) Rules, 2015, Companies (Indian Accounting Standards) (Amendment) Rules, 2016 and other relevant provisions of the Act, as applicable. Previous periods have been restated to Ind AS.

b) Basis of Measurement

The financial statements have been prepared on a going concern basis and on an accrual method of accounting. Historical cost is used, in preparation of the financial statements except as otherwise mentioned in the policy.

c) Functional and Presentation currency

The financial statements are prepared in INR, which is the Company''s functional currency.

d) Use of Estimates and Judgments

The preparation of financial statements in conformity with Ind AS, requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as on the date of the financial statements and the income and expenditure for the reporting year. Though, these estimates and assumptions are based on the information available at that point of time, the actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected

Critical estimates and judgments in applying accounting policies

Estimates and judgments made in applying accounting policies that have significant effect on the amounts recognized in the financial statements are as follows:

i) Property, Plant and Equipment

ii) Employee Benefit Plans

Disclosures: A. Secured:

1. Term Loans from banks represents loans from Consortium of Bankers - State Bank of India, Andhra Bank, Indian Overseas Bank and Union Bank of India. Term Loans are secured by charge on the assets acquired out of the term loan including mortgage of building constructed and charge on entire existing movable/immovable assets of the Company. The above loans are further secured by personal guarantee of Directors and others. All the above securities rank in all respects pari passu amongst the consortium of bankers.

2. The term loans are repayable in equated periodic instalments outstanding up to 7 years period from the date of respective loan. These are repayable by 2023-24 and carry an average interest of 13.175% p.a. The aggregrate amount of instalments outstanding as on March 31, 2018 is Rs. 10,008.93 Lakhs (March 31, 2017: Rs. 12,163.43 Lakhs, April 01, 2016: Rs. 6,476.45 Lakhs)

3. The hire purchase loans are secured against the assets purchased out of those loans. The net carrying amount of assets acquired on hire purchase as on 31st March 2018 is Rs. 198.12 lakhs (March 31, 2017: Rs. 286.76 lakhs, April 01, 2016 Rs. 257.82 Lakhs). The company had capitalized the assets at their fair value considering that the hire purchase agreements are in the nature of Finance Lease. Instalment payments are apportioned between finance charge and principal which is disclosed under secured loans. The details are as follows:

B) Unsecured Loans:

1 Loans from Directors:

The loans from Directors are non-interest bearing and are unsecured in nature. There are no specified terms and conditions. However, the same are amortized using effective interest rate over a period of 5 years.

2 Redeemable Preference Shares:

During the year , the Company has issued and allotted 7,66,37,500 7% Cumulative Redeemable Preference Shares (CRPS) of face value of Rs. 10/- each aggregating Rs. 76,63,75,000/- to the existing 7% Cumulative Redeemable Preference Shareholders in lieu of their existing 4,75,00,000 7% Cumulative Redeemable Preference Shares of face value of Rs. 10/- each aggregating Rs. 47,50,00,000/- and the outstanding accumulated dividend thereon up to March 31, 2017 amounting to Rs. 29,13,75,000. For details, refer to Note No. 37.

Disclosures:

A) Secured Loans:

1 The Rate of Interest for loans repayable on demand from Banks ranges from respective Banks MCLR 2.75% to 4.00%

2 Security:

Working Capital Loans from Consortium Bankers consisting of State Bank of India, Union Bank of India, Indian Overseas Bank, Andhra Bank are secured by first pari passu charge by way of hypothecation of inventories, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company. The directors have extended their personal security i.e Land, Plots, Buildings & Shares etc.

3 Guarantees:

All the above loans are guaranteed by the Promoter Directors.

B) Unsecured Loans:

Loans from Directors disclosed here are short term in nature. No repayments terms are specified.

Note 2 SEGMENT REPORTING:

3. There is no change in Equity Share Capital during the year. The Public Shareholding as on March 31, 2018 is 25%.

4. During the year the authorized share capital of the company increased from Rs. 75,00,00,000/- divided into 1,50,00,000 Equity Shares of Rs. 10/- each and 6,00,00,000 Preference Shares of Rs. 10/- each to Rs. 95,00,00,000/- divided into 1,50,00,000 Equity Shares of Rs. 10/- each and 8,00,00,000 Preference Shares of Rs. 10/- each by alteration of Clause V of Memorandum of Association the company vide shareholders postal ballot resolution dated 26th January, 2018.

Further during the year i.e. on 29th March, 2018, the company issued and allotted 7,66,37,500 further 7% Cumulative Redeemable Preference Shares (CRPS) of face value of Rs. 10/- each aggregating Rs. 76,63,75,000/- to the existing 7% Cumulative Redeemable Preference Shareholders in lieu of their existing unredeemed 4,75,00,000 7% Cumulative Redeemable Preference Shares of face value of Rs. 10/- each aggregating Rs. 47,50,00,000/- and the outstanding accumulated dividend thereon amounting to Rs. 29,13,75,000/- as on 31st March, 2017 pursuant to section 55(3) of the Companies Act, 2013 read with rules made there under. Subsequently, the said allotment was ratified by the Board on receipt of the order dated 13th April, 2018 from Hon''ble National Company Law Tribunal, Bench at Hyderabad (NCLT) under section 55(3) of the Companies Act, 2013 and according to NCLT order dated 13th April, 2018 the existing 4,75,00,000 7% Redeemable Preference Shares of Rs. 10/- each deemed to have been redeemed.

The paid-up share capital of the Company as on financial year ended 31st March, 2018 is Rs. 88,58,35,200/- divided into 1,19,46,020 Equity Shares of Rs. 10/- each and 7,66,37,500 Cumulative Redeemable Preference Shares of Rs. 10/- each.

5. These financial statements, for the year ended 31 March 2018, are the first time the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31st March 2018, 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). Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31st March 2018, together with the comparative period data as at and for the year ended 31st March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1st April 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

An explanation of how the transition from previous GAAP to Ind AS has affected the company''s financial position and financial performance is set out in the following tables and notes.

i. Exemptions and Exceptions availed:

In the Ind AS Opening Balance Sheet as on 1st April 2016, the carrying amounts of assets and liabilities from the Indian GAAP as at 31st March 2015 are generally recognized and measured according to Ind AS in effect as on 31st March 2018.

For certain individual cases, however, Ind AS 101 provides for optional exemptions and mandatory exceptions to the general principles of retrospective application of Ind AS. The Company has used the following exemptions and exceptions in preparing its Ind AS Opening Balance Sheet:

ii. Optional Exemptions Availed:

- Property, plant and equipment & Intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous Indian GAAP (IGAAP) and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38, Intangible Assets. Accordingly, the company has elected to measure all of its property, plant and equipment and intangible assets at their erstwhile Indian GAAP carrying value.

- Investment in subsidiary and joint ventures: The Company has elected to measure its investments in subsidiary and joint ventures in the separate financial statements at cost. The cost of investment for the purpose of first financial statements shall be previous Indian GAAP carrying amount net of impairment on the date of transition.

iii. Notes to First Time Adoption:

1) Investments at Fair Value

As per Ind AS, the Company has classified certain investments as at FVTPL. The fair value of these investments has been calculated as on the reporting day. The gain is adjusted to retained earnings as on 1st April, 2016. In FY 2016-17, the fair value impact is accounted through Profit and Loss account.

2) Amortization of Long Term Loans

a) Processing fee on long-term loans is amortized as per the requirement of Ind-AS 109. Accordingly, processing fee which was shown under capital work in progress as per the earlier GAAP was reversed.

b) Loan from the Directors is amortized using effective interest rate. The difference between the present value and the actual loan amount is accounted as capital contribution from the Promoters.

c) Loan to subsidiary is amortized and the difference between the present value and actual loan amount is accounted as component of investment in subsidiary.

3) Preference Dividend (Ref Note 37)

On account of issue of new preference shares along with accumulated dividends, accumulated dividend on preference share capital upto 31st March 2016, which was shown as contingent liability has become certain liability.

Accumulated preference dividend upto 31st March 2016 is adjusted to opening retained earnings as on 01st April 2016. Preference Dividend pertaining to the year 2016-17 is adjusted in comparative profit and loss account of previous year.

Note 6 EMPLOYEE BENEFITS:

1. Defined Contribution Plan:

7. Figures for the previous year have been regrouped, rearranged and reclassified, wherever considered necessary, to conform to the classification/ presentation of the current year.

Mar 31, 2016

Disclosures:

1. All the equity shares carry equal rights and obligations including for dividend and with respect to voting rights.

2. 7% Redeemable Preference Shares which are cumulative in nature are liable to be redeemed at par after the expiry of ten years ending with March, 2018 ( Rs.4000 Lakhs) and September, 2019 Rs.750 Lakhs)

3. Dividend on Redeemable Preference Share Capital: Dividends on the 7% Redeemable Preference Share Capital of Rs.4750 Lakhs has not been provided for the year 2015-16. However, as the Preference Shares are cumulative in nature, the amount payable as dividend for the year of Rs.332.50 Lakhs (Rs.332.50 Lakhs ) is being shown as a Contingent liability.

4. Names of shareholders holding more than 5% of the Share capital and their shareholding.

Disclosures:

Terms & Conditions of the above Loans are given below:

A) Secured Loans:

1. Term Loans from banks represents loans from Consortium of Bankers - State Bank of Hyderabad, Andhra Bank, Indian Overseas Bank and Union Bank of India. Term Loans are secured by charge on the assets acquired out of the term loan including mortgage of building constructed and charge on entire existing movable/immovable assets of the Company. The above loans are further secured by personal guarantee of Promoter Directors and others. All the above securities rank in all respects pari passu amongst the consortium of bankers.

2. The term loans are repayable in equated periodic installments outstanding up to 7 years (5 Years) period from the date of respective loan. These are repayable by 2022-23 (2019-20) and carry an average interest of 14.30% p.a. The aggregate amount of installments outstanding as on March 31, 2016 is Rs.6476.46 Lakhs (Rs.5994.92 Lakhs)

3. The hire purchase loans are secured against the assets purchased out of those loans. The net carrying amount of assets acquired on hire purchase as on 31^st March 2016 is Rs.2,57,82,362/- (Rs.2,87,62,648/-). The company had capitalized the assets at their fair value considering that the hire purchase agreements are in the nature of Finance Lease as defined in Accounting Standard 19 on âLeasesâ. Installment payment are apportioned between Finance charge and Principal which is disclosed under secured loans. The details are as follows:-

Disclosures:

A) Secured Loans:

1. The Rate of Interest for Loans repayable on demand from Banks ranges from respective Banks Base Rate 2.50% to 4.75%

2 Security:

Working Capital Loans from Consortium Bankers consisting of State Bank of Hyderabad, State Bank of India, Union Bank of India, Indian Overseas Bank, Andhra Bank and Punjab National Bank are secured by first pari passu charge by way of hypothecation of inventories, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company. The directors have extended their personal security i.e Land, Plots, Buildings & Shares etc.

3 Guarantees:

All the above loans are guranteed by the Promoter Directors.

B) Unsecured Loans:

1 Inter Corporate Loans:

These loans carry Interest rate of 15.5% and are repayable on demand

2. Segment Reporting:

Geographic Segment:

The Company has two (2) geographical segments, i.e., (1) Domestic (2) Overseas.

3. Related Party Disclosures:

Key Management Personnel:

1. Sri. Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri Ch. Siddartha, Director

4. Sri T. Rama Krishna, CFO

5. Ms. Shruti Gupta, Company Secretary

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

4. Vishnu Hongkong Limited

5. Solvay Vishnu Barium Pvt Ltd.,

6. There is No change in Equity Share Capital. The Public Shareholding as on 31.03.2016 is 25%.

7. The entire preference Share Capital is held by promoters. The preference shareholders have given their ''NOCâ to declare Dividend on Equity Share holders. In order to keep sufficient Cash flows in the Company, the preference shareholders have given their consent, to defer the dividend on their Shares. However the dividend payable on preference Share Capital have been shown as Contingent Liability.

8. Capitalization of Interest of Rs.312.82 Lakhs during 2007-08 has resulted in overstatement of Rs.312.82 Lakhs in gross block of fixed assets, overstatement of Rs.96.87 Lakhs in accumulated depreciation and overstatement of Rs.215.95 Lakhs in net block of fixed assets as at March 31, 2015. During the year under review, the Company has reversed the interest capitalized in the previous years and made necessary adjustments both to the gross block and accumulated depreciation and the balance amount of Rs.215.95 Lakhs is adjusted from the Surplus balance carried forward.

9. Additional information pursuant to note 5 of Part II of the revised Schedule VI of the Companies Act, 1956.

10. Figures for the previous year have been regrouped, rearranged and reclassified wherever considered necessary to conform to the classification/ presentation of the current year.

Mar 31, 2015

1. CONTINGENT LIABILITIES AND COMMITMENTS (To the Extent Not Provided For) (In Rupees) as on 31.03.2015. as on 31.03.2014

1. Contingent Liabilities:

a. Claims against Company not acknowledged as debt. 22,595,226 21,379,526

b. Indemnity given by Company to the banks for Bank guarantees and Letters of Credit 434,581,250 163,242,000

2. Commitments:

a. Dividend on 7% Cumulative Redeemable Preference Shares including

Dividend Tax 262,918,872 222,711,365

3. Related Party Disclosures: Key Management Personnel:

1. Sri. Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri Ch. Siddartha, Director

4. Sri T. Rama Krishna, CFO

5. Sri B.S. Harikrishna, Company Secretary

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

4. Vishnu Hong Kong Limited

4. Figures for the previous year have been regrouped, rearranged and reclassifed wherever considered necessary to conform to the classifcation/ presentation of the current year.

Mar 31, 2014

SHARE CAPITAL

1. All the equity shares carry equal rights and obligations including for dividend and with respect to voting rights.

2. 7% Redeemable Preference Shares which are cumulative in nature are liable to be redeemed after the expiry of ten years from the date of its issue.

3. Dividend on Redeemable Preference Share Capital:Dividends on the 7% Redeemable Preference Share Capital of Rs.4750 Lakhs has not been provided for the year 2013-14. However as the Preference Shares are cumulative in nature, the amount payable as dividend of Rs.332.50 Lakhs for the year (Rs.332.50 Lakhs) is being shown as a Contingent liability.

4. Names of shareholders holding more than S% of the Share capital and their shareholding.

LONG TERM BORROWINGS

Terms & Conditions of the above Loans are given below:

1. Term Loans from banks represents loans from Consortium Bankers being State Bank of Hyderabad and Indian Overseas Bank. Term Loans are secured by pari passu charge on the assets acquired out of the term loan including mortgage of building constructed and charge on entire existing movable/immovable assets of the Company. The above loans are further secured by personal guarantee of Directors, entire fixed assets of M/s Vishnu Life Sciences Ltd and also the relatives of the directors have given their personal guarantee. All the above securities will be on a pari passu basis with all the consortium bankers.

2. The term loans are repayable in equated periodic instalments outstanding up to 4 years period from the date of respective loan. These are repayable by 2018-19 and carry an average interest of 15% p.a. The aggregrate amount of instalments outstanding as on March 31, 2014 is Rs. 3,996.56 Lakhs.

3. The hire purchase loans are secured against the assets purchased out of those loans. The net carrying amount of assets acquired on hire purchase as on 31st March 2014 is Rs. 2,61,96,181/-(Rs. 79,03,110/-). The company had capitalized the assets at their fair value considering that the hire purchase agreements are in the nature of Finance Lease as defined in Accounting Standard 19 on "Leases" Installment payment are apportioned between Finance charge and Principal which is disclosed under secured loans.

SHORT TERM BORROWINGS

A) Secured Loans:

1 The Rate of Interest for Loans repayable on demand from Banks ranges from respective Banks Base Rate 4.2S% to 6.75%

2 Security: Working Capital Loans from Consortium Bankers consisting of State Bank of Hyderabad, State Bank of India, Union Bank of India, Indian Overseas Bank, Andhra Bank and Punjab National Bank are secured by first pari passu charge by way of hypothecation of inventories, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company. The directors have extended their personal security i.e Land, Plots, Buildings & Shares etc.

3 Gurantees: All the above loans are guranteed by the Directors, Shri. Ch. Krishna Murthy, Smt. Ch. Manjula & Shri. Ch. Sidhartha

B) Unsecured Loans

1 Inter Corporate Deposits:

These are interest free and no terms of repayment are specified.

CONTIGENT LIABLITIES

(Rs. in lakhs)

As on As on 31.03.2014 31.03.2013

1. Contingent Liabilities:

a. Claims against company not acknowledged as debt. 21,379,526 9,536,624

b. Indemnity given by company to the banks for Bank guarantees and Letters of Credit 163,242,000 147,227,616

c. Dividend on 7% Cumulative Redeemable Preference Shares including Dividend Tax 222,968,222 184,067,384

Mar 31, 2013

1. All the equity shares carry equal rights and obligations including for dividend and with respect to voting rights.

2. 7% Redeemable Preference Shares which are cumulative in nature, are liable to be redeemed after the expiry of ten years from the date of there issue

3. "Dividend on Redeemable Preference Share Capital:

Dividends on the 7% Redeemable Preference Share Capital of Rs. 4750 Lakhs has not been provided for the year 2012-13. However as the Preference Shares are cumulative in nature, the amount payable as dividend of Rs. 332.50 Lakhs (Rs. 332.50 Lakhs) is being shown as a Contingent liability."

4. Names of shareholders holding more than 5% of the Share capital and their shareholding.

5. The Rate of Interest for Term Loans from Banks ranges from Base Rate -1.5% to 5%

6. Security:

The term loans from banks are secured by way of pari passu first charge on the fixed assets of the Company and pari passu second charge on the current assets of the company. The above loans are further secured by a pari passu first charge over the fixed assets of Vishnu Life Sciences Limited and the collateral security of assets of some of the Directors and their relatives.

7. Gurantees:

All the above term loans are guranteed by the Directors, Sri Ch. Krishna Murthy, Smt. Ch. Manjula & Sri Ch. Sidhartha

The Company has provided for Deferred Tax in accordance with the Accounting Standard on "Accounting for Taxes on Income" (AS 22) issued by the institute of Chartered Accountants of India. The details of deferred tax assets and liabities of the Company as on the date of Balance Sheet as above:

The Company has no information as to whether any of its vendors constitute a "Supplier" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006 as no declarations were received under the said Act from them.

Loans from Banks

1 The Rate of Interest for Loans repayable on demand from Banks range from Base Rate 4.25% to 6.75%

2 Security:

Working Capital Loans from Banks are secured by pari passu first charge by way of hypothecation of inventories, book debts and other current assets of the company, and pari passu second charge on the fixed assets of the company. The directors have extended their personal security.

3 Gurantees:

All the above loans are guranteed by the Directors, Sri Ch. Krishna Murthy, Smt. Ch. Manjula & Sri Ch. Sidhartha

The Company has no information as to whether any of its vendors constitute a "Supplier" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006 as no declarations were received under the said Act from them.

(Capital Advances include Rs. 55,82,920/- C 23,91,254/-) paid to a related party towards advance for Civil Works) The Company has made current tax provision for Minimum Alternate Tax u/s 115JB of the Income Tax Act 1961. As per the provisions of section 115JAA, MAT Credit Receivable has been recognized in the books of account as an asset to the extent there is convincing evidence that the company will pay normal Income tax during the specified period. MAT Credit is recognized in accordance with the guidance note issued by the Institute of Chartered Accountants of India. The Company will review the same at each balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that the company will pay normal Income Tax during the specified period.

8. CONTINGENT LIABILITIES AND COMMITMENTS (To the Extent Not Provided For):

(Amount in Rs.)

As on As on

31.03.2013 31.03.2012

1. Contingent Liabilities:

a. Claims against company not acknowledged as debt. 9,536,624 8,640,782

b. Indemnity given by company to the banks for 147,227,616 163,088,070 Bank guarantees and Letters of Credit

c. Dividend on 7% Cumulative Redeemable Preference 184,067,384 145,423,403 Shares including Dividend Tax

2. Commitments:

Estimated amount of Contracts remaining to be executed ---- 15,312,055 on Capital account and not provided for.

9. Segment Reporting:

Geographic Segment:

The Company has two (2) geographical segments, i.e., (1) Domestic: (2) External. Revenue attributable to location of customers is as follows:

10. Related Party Disclosures :

Key Management Personnel:

1. Sri Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri Ch. Siddartha, Director

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

11. There is No change in Equity Share Capital. The Public Shareholding as on 31.03.2013 is 25%.

12. The sale of Land in the earlier years is recognized in the books on settlement of all the issues in connection therewith.

13. Figures for the previous year have been regrouped, rearranged and reclassified wherever considered necessary to conform to the classification/ presentation of the current year.

Mar 31, 2012

1. All the equity shares carry equal rights and obligations including for dividend and with respect to voting rights.

2. 7% Cumulative Redeemable Preference Shares which are cumulative nature are liable to be redeemed after the expiry of ten years from the date of its issue

3. Names of shareholders holding more than 5% of the Share capital and their shareholding.

4. "Dividend on Cumulative Redeemable Preference Share Capital:

Dividends on the 7% Cumulative Redeemable Preference Share Capital of Rs. 4,750 Lakhs has not been provided for the period 2011-12. However as the Preference Shares are cumulative in nature, the amount payable as dividend of Rs. 332.50 Lakhs ( Rs. 332.50 Lakhs) is being shown as a Contingent liability."

Figures in the brackets relate to Previous Financial Year

The rate of Interest for Term Loans from Banks is ranging from respective Banks Base Rate - 1.50% to 5%

2 Security:

The term loans from banks are secured by way of first pari passu charge on the fixed assets of the Company and second pari passu charge on the current assets of the company. The directors have extended their personal security i.e land, plots, Shares etc., first pari passu charge over the entire fixed assets of M/s. Vishnu Life Sciences Limited and also the relatives of the directors have given their personal security.

3 Gurantees:

All the above term loans are guranteed by the Directors, Sri. Ch. Krishna Murthy, Smt. Ch. Manjula & Sri. Ch. Siddartha

4 The hire purchase loans taken from ICICI Bank is secured against the assets purchased out of those loans. The net carrying amount of assets acquired on hire purchase as on 31st March 2012 is A 85,60,462/- (A 75,92,572/-). The company had capitalized the assets at their fair value considering the hire purchase agreements are in the nature of Finance Lease as defined in Accounting Standard 19 on "Leases" Installment payment are apportioned between Finance charge and Principal disclosed under secured loan. The details are as follows:-

5. DEFERRED TAX LIABILITIES (NET)

The Company has provided for Deferred Tax in accordance with the Accounting Standard on "Accounting for Taxes on Income" (AS 22) issued by the institute of Chartered Accountants of India. The details of deferred tax assets and liabities of the Company as on the date of Balance Sheet are as follows:

Loans from Banks

1 The rate of Interest for Loans repayable on demand from Banks is ranging from respective Banks Base Rate 4.25% to 6.75%

2 Security:

Working Capital Loans from Banks are secured by first pari passu charge by way of hypothecation of inventories, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company. The directors have extended their personal security i.e Land, Plots, Buildings & Shares etc.

3 Gurantees:

All the above loans are guranteed by the Directors, Sri. Ch. Krishna Murthy, Smt. Ch. Manjula & Sri. Ch. Siddartha

The Company has no information as to whether any of its vendors constitute a "Supplier" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006 as no declarations were received under the said Act from them.

6. CONTINGENT LIABILITIES AND COMMITMENTS (To the Extent Not Provided For):

(Amount in Rs.)

As on As on 31.03.2012 31.03.2011

1. Contingent Liabilities:

a Claims against company not acknowledged as debt. 8,640,782 8,640,782

b Indemnity given by company to the banks for Bank Guarantees and Letters of Credit 163,088,070 237,925,000

2. Commitments:

a Estimated amount of Contracts remaining to be executed on Capital account and not provided for. 15,312,055 -

b Dividend on 7% Cumulative Redeemable Preference Shares 125,125,000 91,875,000

7. Related Party Disclosures:

Key Management Personnel:

1. Sri. Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri. Ch. Siddartha, Director

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

8. Due to non-availability of suitable candidate, the company has not appointed a full time company secretary as per requirement of section 383 A of the Companies Act, 1956. However the company is making efforts to appoint a full time secretary, a compliance Certificate has been obtained from a Practicing Company Secretary.

9. There is No change in Equity Share Capital. The Public Shareholding as on 31.03.2012 is 25%.

10. Figures for the previous year have been regrouped, rearranged and reclassified wherever considered necessary to conform to the classification as required by the Revised Schedule VI of the Companies Act, 1956.

Mar 31, 2011

1. Redeemable Preference Shares:

The present Authorised Capital of the Company is fully issued and subscribed and for allotting the Share Application money of Rs. 1000 Lakhs received, the Authorised Capital needs to be increased by a resolution of the General Body, which is planned to be taken up in the ensuing Annual General Meeting.

Dividend on Redeemable Preference Share Capital:

Dividends on the 7% Redeemable Preference Share Capital of Rs.47.50 crores has not been provided for the year 2010-11. However as the Preference Shares are cumulative in nature, the amount payable as dividend is being shown as a Contingent liability.

2. Secured Loans:

i) The Term Loans from Banks are secured by way of first pari passu charge on the fixed assets of the Company and second pari passu charge on the current assets of the company and are inclusive of overdue accrued Interest of Rs. 280.09 lakhs and principal overdue of Rs.633.73 lakhs.

ii) Working capital loans from Banks are secured by first pari passu charge by way of hypothecation of inventory, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company.

3. Contingent Liabilities: (Rs. in Lakhs)

As on As on 31.03.2011 31.03.2010

(a) Claims against the company 86.41 138.30 not acknowledged as debts

(b) Indemnity given by Company 2379.25 5572.52 to the banks for Bank Guarantees and Letters of Credit

(c) Estimated amount of Contracts 0.00 652.88 remaining to be executed on capital account and not provided for (Net of Advances)

(d) Dividend on 7% Redeemable 918.75 586.25 Preference Shares

4. Segment Reporting:

For the previous year the company has reported API division as a separate business segment though it did not satisfy the relevant 10% threshold in terms of AS17 and hence not required to be reported. In the current year the 2.48% contribution from API division on all specified thresholds has shrunk to minimal levels and so the reporting of this business segment has been dispensed with and the corresponding previous year's figures are also not being separately disclosed.

5. Related Party Disclosures:

Key Management Personnel:

1. Sri. Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri Ch. Siddartha, Director

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

6. The company is unable to furnish the additional information required in terms of Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 since it has no information from any of its creditors as to whether any of them constitute ÃSuppliers' within the meaning of Section 2(n) of the Act

7. Due to non availability of suitable candidate, the company has not appointed a full time company secretary as per requirement of section 383 A of the Companies Act, 1956. However the company is making efforts to appoint a full time secretary, a compliance Certificate has been obtained from a Practicing Company Secretary.

8. There is No change in Equity Share Capital. The Public Share holding as on 31.03.2011 is 25.21%.

9. Additional information pursuant to the provisions of paragraphs 3,4C and of Part II of Schedule VI to the Companies Act, 1956.

Mar 31, 2010

1. Redeemable Preference Shares:

The 7% Redeemable Preference Shares are redeemable, at the option of the company after 10 years from the date of issue, in terms of the Articles of Association of the Company.

Dividend on Redeemable Preference Share Capital:

Dividends on the 7% Redeemable Preference Share Capital of Rs.47.50 crores has not been provided for the year 2009-10. However as the Preference Shares are cumulative in nature, the amount payable as dividend is being shown as a Contingent liability.

2. Secured Loans:

i) The Term Loans from Banks are secured by way of first pari passu charge on the fixed assets of the Company and second pari passu charge on the current assets of the company and are inclusive of overdue accrued Interest of Rs.170.75 lakhs and principal overdue of Rs.533.05 lakhs.

ii) Working capital loans from Banks are secured by first pari passu charge by way of hypothecation of inventory, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company.

3. Contingent Liabilities:

(Rs. in lakhs)

As on As on

31.03.2010 31.03.2009

(a) Claims against the company not acknowledged as debts 138.30 117.62

(b) Indemnity given by Company to the banks for

Bank Guarantees and Letters of Credit 5572.52 1625.65

(c) Estimated amount of Contracts remaining TO BE EXECUTED ON CAPITAL Account and not provided for (Net of Advances) 652.88 755.90

(d) Dividend on 7% Redeemable Preference Shares 586.25 280.00

4. Segment Reporting:

Information given in accordance with the requirement of Accounting Standard - 17, on Segment Reporting issued by the Institute of Chartered Accountants of India.

Companys business segments are as under:

1. Inorganic Chemicals

The Company is engaged in the manufacture of inorganic chemicals which are used in Screen printing, meal treating, leather, water treatment, Active Pharmaceutical ingredients, paint and other specialty areas.

2. Active Pharmaceutical Ingredients (API)

The Company is engaged in the manufacture of APIs which are used in Pharmaceutical industry.

Segment Accounting Policies:

Segment accounting disclosures are in line with accounting policies of the Company. However, the following specific accounting policies have been followed for Segment reporting:

1. Segment Revenue includes Sales and other income directly identifiable with/allocable to the segment including inter-segment revenue.

2. Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result. The expenses, which relate to the Company as a whole and not allocable to Segment, are included under "unallocable expenditure".

3. Income which relates to the Company as a whole and not allocable to segments is included in "unallocable income".

4. Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and liabilities relate to the Company as a whole and not allocable to any segment.

5. Transactions between segments are primarily for materials, which are transferred at market- determined prices

5. Related Party Disclosures:

Key Management Personnel:

1. Sri. Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri Ch. Siddartha, Whole Time Director

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

6. The company is unable to furnish the additional information required in terms of Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 since it has no information from any of its creditors as to whether any of them constitute Suppliers within the meaning of Section 2(n) of the Act

7. Due to non availability of suitable candidate, the company has not appointed a full time company secretary as per requirement of section 383 A of the Companies Act, 1956. However the company is making efforts to appoint a full time secretary, a compliance Certificate has been obtained from a Practicing Company Secretary.

8. There is No change in Equity Share Capital. The Public Share holding as on 31.03.2010 is 25.21%.

9. Additional information pursuant to the provisions of paragraphs 3,4C and 4D of Part II Schedule VI to the Companies Act, 1956.

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