Notes to Accounts of Ganesh Benzoplast Ltd.

Mar 31, 2023

a) In determining the allowances for credit losses of Trade Receivables, the Company has used a practical expedient by computing the Expected Credit Loss Allowance for Trade Receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The Expected Credit Loss allowance is based on the ageing of the receivables that are due and the rates used in the provision matrix.

b) Since the Company calculates impairment under the simplified approach for Trade Receivables, it is not required to separately track changes in credit risk of Trade Receivables as the impairment amount represents Lifetime Expected Credit Loss. Accordingly, based on a harmonious reading of Ind AS 109 and the break-up requirements under Schedule III, the discolsure for all such Trade Receivables is made as shown above.

c) Trade receivables does not include any receivables from directors and officers of the company.

During the year, the Company allotted 28,25,000 Equity Shares of the face value of '' 1/- each at an issue price of '' 103/-(including a premium of '' 102/- per share), fully paid upon exercising the option available with the 23 warrant holders to convert 28,25,000 warrants held by them.

(b) Terms/Rights attached to Equity shares

The company has only one class of equity shares having par value of ^ 1/- per share. Each holder of equity shares is entitled to one vote per share. The Company if declares dividend would pay in Indian Rupees. The dividend, if proposed by the Board of Directors will be subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserve:

Capital reserve: Capital reserve was created on account of capital receipts and forfeiture of partly paid Equity Shares. There is no movement in Capital Reserve during the current and previous year.

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

Retained Earnings: Retained Earnings are the profits that the Company has earned till date, less any transfer to General Reserve, dividends or other distributions paid to shareholders. The reserve can be utilised in accordance with the provision of the Companies Act, 2013.

Other comprehensive income: Other comprehensive income (OCI) represents the re-measurement loss on defined benefit plan, net of taxes that will not be re-classified to the Statement of Profit & Loss.

Short-term overdraft - from bank

From Bank (Secured) - outstanding '' 96.90 million as at 31^st March, 2023 (Outstanding as at 31^st March, 2022 '' Nil) overdraft facility availed from Union Bank of India against security of fixed deposit. The interest rates are in the ranges from 7.50% to 8% p.a.

From Bank (Secured) - outstanding '' 0.42 million as at 31^st March, 2022 overdraft facility availed from Central Bank of India against security of fixed deposit.

Claims by parties against company not acknowledged as Debt includes the following

a. GBL has challenged and objected to an Arbitration Award u/s.34 of Arbitration Act,1996 before the Hon''ble High

Court of Delhi on various grounds; against the Findings of the Arbitrator in the matter of Morgan Securities and Credits Pvt Ltd (MSC), wherein it has initiated Arbitration Proceedings to recover outstanding claim on ICD of '' 3.4 million advanced to GBL in year 2000. The Arbitrator passed an award on December, 09, 2015 for '' 540 million against GBL (Principal '' 3.4 million and also allowed an Exorbitant Interest of '' 536.60 million on this principal amount which was calculated @ 3% p.m. with monthly rest till date of Award).

Morgan Securities and Credit Pvt Ltd had objected and obtained an ex-parte order on November 17, 2020 for restraining the Company to proceed further for preferential allotment after GBL took shareholders'' resolutions in respect thereto. GBL has sought vacation of the said ex-parte order, obtained without hearing GBL. Hon''ble High Court, Delhi vide its order dated January 21, 2021, has modified the ex-parte order passed on November 17,2020 and allowed GBL to act on shareholders'' Resolutions to proceed with preferential allotment pursuant to proposed Share Sale and Purchase Agreement (SSPA) subject to deposit of '' 30 million towards outstanding principal amount of '' 3.4 million and a simple interest of 36% per annum on it from September 28,2001 till date of order of the Court. Hon''ble High Court of Delhi has prima facie observed that the claim of 36% interest with monthly rest by which principal amount '' 3.4 million along with interest has become '' 900 million (260 times) appears to be against the

most basic notions of Justice and warrants serious consideration by Court. GBL has deposited the full amount of '' 30 million with Registry of Delhi High Court in compliance of the said Order and direction of Hon''ble Court and as per the legal opinion sought, there are remote chances of any further liability.

Further, GBL had initiated the Criminal complaint against Morgan Securities and Credit Pvt Ltd and their sister/ group company along with concerned Stock broker company for act of cheating and breach of trust in fraudulent sale of pledged shares (which were kept as security for availing ICD facilities) in market to its sister concern/group companies at manipulated prices and other mandatory irregularities done by Morgan Securities and Credit Pvt Ltd., while giving the ICD facilities to GBL as an NBFC Company. This criminal complaint is being re-investigated by EOW. The Directors of accused company have challenged said order and directions and the matter is pending before Hon''ble Bombay High Court, Mumbai. GBL has also filed a complaint with SEBI against Morgan Securities and Credit Pvt Ltd for violation of various regulations under SEBI Act, while selling of pledged shares at depressed value, by manipulation in the Market; this complaint is subjudice before SEBI.

b. The State Trading Corporation (STC) had claimed the amount aggregating to '' 242.64 million in relation to certain transactions pertaining to period 2004-2008 which was disputed and not acknowledged as debt by the company and shown as "Contingent Liability" in the financial statements. This was also treated as contingent liability in the scheme of revival, approved under the provisions of the erstwhile Sick Industrial Companies (Special Provisions) Act, 1985 by Hon''ble Delhi High Court vide its order dated December 04, 2015.

Subsequently, STC had filed an application u/s 9 of the Insolvency & Bankruptcy Code, 2016 with NCLT, Mumbai Bench, which was disposed of by the order passed by Adjudicating Authority in Feb 2020 and ordered the company to pay '' 21.89 million to STC in consonance with the revival scheme. The company paid the amount as per the said order of Adjudicating Authority in full and final settlement of all alleged but disputed claims of STC. Even though STC upon receiving the full amount of '' 21.89 million as per NCLT order, has belatedly filed an appeal against the above referred NCLT order, before NCLAT Delhi Bench, the said appeal was dismissed by the NCLAT vide its order dated April 20, 2023.

C. Show Cause Notice (SCN) No. CGST/Bel-V/R-II/CBDT/GBL/148/20-21/1489 dated 20.10.2021 received from Assistant Commissioner (Division-V), GST & Central Excise, Belapur Commissionerate, Navi Mumbai for the period Apr 2016 to 30 June 2017 for Reconciliation difference between revenue as per STR & ITR for '' 4.68 million. As per the view of GST consultant this show cause notice will not sustained due to technical issues.

NOTE 48 : SEGMENT REPORTING AS PER IND AS 108 ON "OPERATING SEGMENT"

a) Description of segments and principal activities:

The Company has determined following reporting segments based on the information reviewed by the Company''s Chief Operating Decision Maker (''CODM'') (i.e. Chairman & Managing Director):

• Segment-1, Chemical

• Segment-2, Liquid Storage Terminal (LST)

The above business segments have been identified considering:

a. the nature of products and services

b. the differing risks and returns

c. the internal organisation and management structure, and

d. the internal financial reporting system

The Chief Operating Decision Maker ("CODM") evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by operating segments. The CODM reviews revenue and profit as the performance indicator for all of the operating segments.

The Company is primarily engaged in the business of Chemical and Liquid Storage Terminal (LST). The Company has presented segment information on the basis of Financial Statements in accordance with Ind AS 108 "Operating Segments.

NOTE 50 : FINANCIAL INSTRUMENTS a) Capital Risk management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating, healthy capital ratios and establish a capital structure that would maximize the return to stakeholders through optimum mix of debt and equity.

The Company''s capital requirement is mainly to fund its capacity expansion and repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank borrowings and the equity capital by way of preferential allotment. The Company is not subject to any externally imposed capital requirements.

The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and elongate the maturity of its debt portfolio, and closely monitors its judicious allocation amongst competing capital expansion projects, to capture market opportunities at minimum risk.

Detail of Net debt of the company which includes, interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents and current investments.

i. Equity includes all capital and reserves of the Company that are managed as capital.

ii. Debt is defined as long and short term borrowings, as described in note 22 & 27.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest- bearing loans and borrowing in the current period.

The main risks arising from Company''s financial instruments are foreign currency risk, interest rate risk, credit risk and liquidity risk. The Board of Directors review and agree policies for managing each of these risks.

b) Financial risk management

The Company has a Risk Management Committee established by its Board of Directors for overseeing the Risk Management Framework and developing and monitoring the Company''s risk management policies.

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s Risk Management Committee focuses to minimize potential adverse effects of all the risk on its financial performance.

The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management systems are reviewed regularly to reflect changes in the market conditions and the Company''s activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

The risk management policies aims to mitigate the following risks arising from the financial instruments:

- Market risk;

- Credit risk; and

- Liquidity risk.

c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in the market prices. The value of a financial instruments may change as result of change in interest rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including payable, deposits, loans & borrowings.

The Company management evaluates and exercise control over process of market risk management. The Board recommends risk management objective and policies which includes management of cash resources, borrowing strategies and ensuring compliance with market risk limits and policies.

d) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in rupees with a mix of fixed and floating rates of interest. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

e) Credit risk management:

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks. The Company has adopted a policy of only dealing with credit worthy counter parties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

Company''s credit risk arises principally from the trade receivables, loans, cash & cash equivalents.

Trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating score card and individual credit limits defined in accordance with the assessment.

Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables. Receivables are deemed to be past due or impaired with reference to the Company''s normal terms and conditions of business. These terms and conditions are determined on a case to case basis with reference to the customer''s credit quality and prevailing market conditions. The Company based on past experiences does not expect any material loss on its receivables and hence no provision is deemed necessary on account of expected credit loss (''ECL''). The credit quality of the Company''s customers is monitored on an ongoing basis and assessed for impairment where indicators of such impairment exist. The Company uses simplified approach (i.e. lifetime expected credit loss model) for impairment of trade receivables. The solvency of the debtor and their ability to repay the receivable is considered in assessing receivables for impairment. Where receivables have been impaired, the Company actively seeks to recover the amounts in question and enforce compliance with credit terms.

Cash and cash equivalents

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. The Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit- ratings assigned by credit-rating agencies and hence the risk is reduced.

Liquidity risk management

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. The Company maintains flexibility in funding by maintaining availability under committed credit lines. The Management monitors rolling forecasts of the Company''s Liquidity position and cash and cash equivalents on the basis of the expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be low.

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. The table includes both interest and principal cash flows.

To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

The Company has pledged part of its trade receivables, short term investments and cash and cash equivalents in order to fulfill certain collateral requirements for the banking facilities extended to the Company. There is obligation to return the securities to the Company once these banking facilities are surrendered.

NOTE : 52 EMPLOYEE BENEFIT OBLIGATIONS

A) Defined contribution plan

The Company operates defined contribution retirement benefit plans for all qualifying employees. Under these plans, the Company is required to contribute a specified percentage of payroll costs.

Company''s contribution to provident fund recognised in statement of profit and loss of R 2.06 Million (31^st March, 2022: R 1.84 Million)

B) Defined benefit plans

The level of benefits provided depends on the member''s length of service and salary at retirement age.

The gratuity plan is covered by The Payment of Gratuity Act, 1972. Under the gratuity plan, all employees are entitled to Gratuity Benefits on exit from service due to retirement, resignation or death at the rate of 15 days'' salary for each year of service with payment ceiling of R 20 lakhs. The vesting period for gratuity as payable under The Payment of Gratuity Act, 1972 is 5 years.

Under the Compensated absences plan, leave encashment is payable to all eligible employees on separation from the Company due to death, retirement, superannuation or resignation. At the rate of daily salary, as per current accumulation of leave days.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

b. Compensated Absences

Under the compensated absences plan, leave encashment is payable to certain eligible employees on separation from the company due to death, retirement, or resignation. Employees are entitled to encash leave while serving the company at the rate of daily salary, as per current accumulation of leave days.

The company also has leave policy for certain employees to compulsorily utilised the pending leave balance as on 30^th June for every year.

NOTE 56 - DETAILS OF BENAMI PROPERTY HELD

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

NOTE 57 WILFUL DEFAULTER

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

NOTE 58 RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company does not have any transactions with struck-off companies.

NOTE 59 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

NOTE 60 COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.

NOTE 61 UNDISCLOSED INCOME

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income

NOTE 62 VALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSET

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

NOTE 63 UTILISATION OF BORROWINGS AVAILED FROM BANKS AND FINANCIAL INSTITUTIONS

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such loans were taken.

NOTE 64 FUNDS FROM FOREIGN PARTIES

The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

The Company ghave not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

NOTE 65 DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

The accompanying Notes are an integral part of the Standalone Financial Statements

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Mar 31, 2018

NOTE 1 : Capital Commitments

Estimated amount of contract remaining to be executed on capital account, net of advances is Rs, 80.65 Millions (Previous year Rs, 28.05 Millions).

NOTE 2 : Gratuity and other Post-Employment Benefit Plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is non-funded. The following tables summaries the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans.

Statement of profit and loss account

Net employee benefit expense recognized in the employee cost

NOTE 3 : Related Party Disclosure

a) Names of related parties and related party relationship Related parties where control exists irrespective of Nil whether transactions have occurred or not__

Related parties with whom transactions have taken place

during the year__

Key Management Personnel Rishi Ramesh Pilani/Raunak Pilani (Promoter Directors)

Ramesh Pilani (CFO)

_Ramakant Pilani (CEO)_

Relatives of key management personnel Poonam Pilani (Wife of Rishi Pilani)

Manju Pilani (Wife of Ramakant Pilani)

_Sushila Pilani (Wife of Ramesh Pilani)_

Enterprises owned or significantly influenced by Ganesh Investment and Financial Technics Pvt. Ltd.

key management personnel or their relatives Stolt Rail Logistic Systems Ltd

(Formerly Infrastructure Logistic Systems Ltd)

Susram Financial Services and Realty Pvt. Ltd.

Agarwal Bulkactives Pvt.Ltd.

NOTE 4: First-time adoption of Ind AS

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 1^st April, 2017, with a transition date of 1^st April, 2016. The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements for the year ended 31^st March, 2018, be applied retrospectively and consistently for all financial years presented. However, in preparing these Ind AS financial statements, the Company has availed of certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity).

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. Optional Exemptions

a. Deemed Cost - The Company has opted and accordingly considered the carrying value of property, plant and equipment, Intangible assets and Investment properties as deemed cost as at transition date.

b. Investments - The Company has considered the cost of Investments as deemed cost as at transition date.

B. Mandatory Exceptions

a. Estimates - An entity’s estimates in accordance with Ind AS 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).

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

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:

I Reconciliation of Balance sheet as at 1^st April, 2016 (Transition Date) and as at 31^st March, 2017

II Reconciliation of statement of Profit & Loss as at 31^st March, 2017

III (A) Reconciliation of Equity as at 31^st March, 2017

(B) Reconciliation of total comprehensive income as at 31^st March, 2017

(C) Reconciliation of cash flow Statement as at 31^st March, 2017

The presentation requirements under Previous GAAP differs from Ind AS and hence Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.

C. Reconciliation of cash flows for the year ended 31^st March 2017

The adjustments as explained above are of non-cash nature and accordingly, there are no material differences in the cash flows from operating, investing and financing activities as per the erstwhile GAAP and as per Ind AS.

IV Notes to the first-time adoption of Ind AS

Recognition of gain/loss on actuarial valuation in Other Comprehensive income

Under the previous GAAP, measurements i.e. actuarial gains and losses on the net defined benefit obligation were recognized in the statement of profit and loss. Under Ind AS, these remeasurements are recognized in other comprehensive income (OCI) instead of the statement of profit and loss. As a result of this change, the profit for the year ended 31^st March, 2017 increased by Rs, 0.61 Millions. There is no impact on the total equity as at 31^stMarch, 2017.

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Mar 31, 2016

1. Capital Commitments

Estimated amount of contract remaining to be executed on capital account, net of advances, not provided for is Rs.150.92 Millions (Previous year Rs. 21.36 Millions)

2. In earlier years net worth of the Company had been fully eroded, as a result Company had approached to the Board for Industrial & Financial Restructuring (BIFR) for protection provided under The Sick Industrial Company''s (Special Provisions) Act, 1985 and the Company was declared as sick unit vide order of BIFR passed in May, 2010 vide reference no.42/2009 wherein the board has appointed IDBI as Operating Agency (OA) which has submitted the revival scheme to BIFR.

In April, 2013 Draft rehabilitation scheme (DRS) was circulated to public for suggestion and objections. Thereafter due to nonfunctioning of BIFR bench for longer time, Company approached to Delhi High court for sanctioning the scheme. The Hon'' High Court of Delhi, vide judgment dated 4th December 2015, sanctioned the D.R.S. and the sanctioned scheme is under implementation.

During the year, under consideration Company has taken write back of pending waivers (Accumulated interest accrued and due but unpaid on Long Term loan availed for Capex from Financial institutions, and the said interest was suo-motto disallowed u/s 43B of Income Tax Act, 1961 in computation of total income of past many years) to the tune of Rs. 500 Millions as per the BIFR rehabilitation scheme and the same is reflected under Exceptional Item in Schedule no 25 to notes to accounts.

3. Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is non-funded.

The following tables summaries the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

4. There are no dues to Micro, Small and Medium Enterprises as defined under “The Micro, Small and Medium Enterprises Development Act, 2006 as at 31 March 2016. This information has been determined to the extent; such parties have been identified on the basis of the information available with the Company.

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Mar 31, 2015

1. Corporate Information

The Company is engaged in the business of manufacture, export and import of premium range of speciality chemicals, food preservatives and Industrial lubricants. The Company also provides conditioned storage facilities for bulk liquids and chemicals at various ports in India.

2. Share Capital

(a) Terms/Rights attached to Equity shares

The Company has only one class of equity shares having face value of Rs. 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders

3. Contingent Liabilities not provided for

Rs. Millions

Particulars 31-Mar-15 31-Mar-14

Claims filed by Seventeen parties before different courts against Company not acknowledge as 94.88 94.88 Debt including the claim partly acknowledged.

Claim for delayed interest(disputed) made by three parties namely M/s 944 944 Sahastraa Export and M/s Harsh Industries and M/s Fab trade.

Claims by Two co-op banks by filing recovery suits in respect of guarantees 22.32 22.32 alleged to have been issued by Company

Contingent Liabilities in respect of 50.00 50.00 pending Sales Tax re-assessment

Claim of The State Trading Corporation Ltd in respect of unrealized exports 113.50 113.50 bills of The State Trading Corporation Ltd

Claim of Jawaharlal Nehru Port Trust Amount Amount &Marmagao Port Trust in Arbitration indeter indeter minate minate

Income Tax demand (Pertains to interest charged u/s 234A/B/C and 220(2) of I.T Act 1961) in respect of Assessment Year 1999-00 and 2000- 01. In this respect the Company has 28.21 28.21 approached to BIFR for waiver of overall interest. And looking in to Company's financial crisis our plea is likely to be accepted.

4. Capital Commitments

Estimated amount of contract remaining to be executed on capital account, net of advances, not provided for is Rs. 21.36 Million (Previous year Rs. 18.33 Million)

5. In earlier years net worth of the Company had been fully eroded, as a result Company had approached to the Board for Industrial & Financial Restructuring (BIFR) for protection provided under The Sick Industrial Company's (Special Provisions) Act, 1985 and the Company was declared as sick unit vide order of BIFR passed in May, 2010 vide reference no.42/2009 wherein the board has appointed IDBI as Operating Agency (OA) which has submitted the revival scheme to BIFR.

In April, 2013 Draft rehabilitation scheme (DRS) was circulated to public for suggestion and objections. As per the directions of BIFR, in December, 2014 Operating Agency (OA)submitted the revised final DRS incorporating some of the changes suggested by BIFR for its sanction, and very soon BIFR will sanction the said DRS.

6. Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is non-funded.

The following tables summaries the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans.

7. There are no dues to Micro, Small and Medium Enterprises as defined under "The Micro, Small and Medium Enterprises Development Act, 2006 as at 31 March 2015. This information has been determined to the extent; such parties have been identified on the basis of the information available with the Company.

8. Related Party Disclosure

a) Names of related parties and related party relationship

Related parties where control exists irrespective of whether Nil transactions have occurred or not

Related parties with whom transactions have taken place during the year

Key Management Personnel Rishi Pilani/Raunak Pilani (Promoter Directors)

Ramesh Pilani (CEO)

Relatives of key management Poonam Pilani (Wife of personnel Rishi Pilani)

Manju Pilani (Mother of Paunak Pilani)

Sushila Pilani (Mother of Rishi Pilani)

Ramakant Pilani (Father of Raunak Pilani)

Enterprises owned or Futuristic Offshore Services significantly influenced by key and Chemical Ltd management personnel or their relatives Agarwal Chemicals

Ganesh Investment and Financial Technics Pvt Ltd

Infrastructure Logistic Systems Ltd

Susram Financial Services and Realty Pvt Ltd.

Agarwal Bulk Actives Pvt.Ltd.

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Mar 31, 2014

1. Corporate Information

Ganesh Benzoplast Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange in India. The company is engaged in the business of manufacturing and selling food preservatives and industrial lubricants. The company caters to both domestic and international markets. The company also provides storage and warehousing services at various ports in India.

2. Basis of preparation

The financial statements have been prepared to comply in all material respects in respects with the Notified accounting standard by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

(a) Terms/Rights attached to Equity shares

The company has only one class of equity shares having par value of ''1'' per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders

b) Company had issued 746,630 nos. of Zero coupon Bond (ZCB) having face value of Rs. 100 each for an aggregate of Rs. 74.66 million to IFCI in accordance with One Time Settlement Agreement entered in the earlier years. The said ZCB are redeemable at par in three equal installments of Rs. 24.88 million each on September 30, 2016, September 30, 2017 and September 30, 2018. These ZCB are interest free and non transferable. Further these are secured by second charge on all fixed assets of the Company.

c) Cent rental loan is secured against contract with one of the customer Indorama Synthetic (I) Limited for rendering of storage services. Further this is secured against mortgage of personal properties of promoters alongwith personal guarantees of directors and their relatives.

d) Term Loans from financial institutions include loans directly disbursed by India Debt Management Pvt Lrd (IDM) and those acquired by IDM from some erstwhile lenders of the Company. All these term loans are secured by a first charge/ mortgage of all immovable properties both present and future and by a first charge by way of hypotheecation of all movables (save and except book debts) including movable machinery spares, tools and accessories present and future and shall rank pari passu between one another. These loans are proposed to be restructured in both quantum and repayment schedule under a draft Rehabilitation Scheme filed by the Company with BIFR which is pending approval. As per the proposed terms under the Draft Rehabilitation Scheme, these loans carry an interest rate of 18.50% p.a. effective from January 1,2014 and are repayable before 31.08.2014 based on terms agreed between IDM and the Company. The Company is taking appropriate steps to repay the said loans, by way of availing fresh long term loans from prospective investor to replace the debt of IDM. Hence though the restructured loans of IDM are repayable by 31.08.2014, these continue to be classified as Long term borrowings for the current finacial year as the Compnay and management expect to refinance these obligations through fresh long term loans.

The Company has made profit during the year but since, the company has sufficient assessed losses as well as book losses, no provision has been made in respect of Income Tax or MAT u/s 115JB of the Income Tax Act,1961. Further in view of uncertainty of availment of tax benefit on accumulated business losses and unabsorbed depreciation, company has recognized deferred tax assets only to the extent of deferred tax liability.

e) Fixed deposits are subject to first charge to secure the bank overdraft facilty and bank guarantees issued in favour of the company.

f) Margin Money deposit are subject to first charge to secure the bank gurantees issue by the Central bank of India in the favour of company of equal amount to various parties.

3. Contingent Liabilities not (Rs. in millions) provided for

Particulars 31-Mar-14 31-Mar-13

Claims filed by Seventeen 94.88 94.88 parties before different courts against company not acknowledge as Debt including the claim partly acknowledged.

Claim for delayed 9.44 9.44 interest(disputed) made by three parties namely M/s Sahastraa Export and M/s Harsh Industries and M/s Fab trade.

Claims by Two co-op banks by 22.32 22.32

filing recovery suits in respect of guarantees alleged to have been issued by company

Contingent Liabilities in respect 50.00 50.00 of pending Sales Tax re- assessment

Claim of The State Trading 113.50 113.50 Corporation Ltd in respect of unrealized exports bills of The State Trading Corporation Ltd

Claim of Jawaharlal Nehru Port Amount Amount Trust & Marmagao Port Trust in indeter- indeter-

Arbitration minate minate

Income Tax demand (Pertains 28.21 37.63

to interest charged u/s 234A/B/C and 220(2) of I.T Act 1961) in respect of Assessment Year 1999-00 and 2000-01. In this respect the company has approached to BIFR for waiver of overall interest. And looking in to company''s financial crisis our plea is likely to be accepted.

4. Capital Commitments

Estimated amount of contract remaining to be executed on capital account, net of advances, not provided for is Rs. 18.33 Million (Previous year Rs. 55.00 Million)

5. Capital and Reserves of the company has been fully eroded by the net losses, the necessary reference to the Board for Industrial & Financial Reconstruction (BIFR) had been made and the company was declared as sick vide order of BIFR passed in May, 2010, wherein the board has appointed Operating Agency to prepare a revival scheme for the Company. In April''2013 Draft rehabilitation scheme (DRS) was circulated to public for suggestion and objections.

6. Gratuity and other post-employment benefit plans:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is non-funded.

The following tables summaries the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans.

7. There are no dues to Micro, Small and Medium Enterprises as defined under "The Micro, Small and Medium Enterprises Development Act, 2006 as at 31 March 2014. This information has been determined to the extent; such parties have been identified on the basis of the information available with the Company.

8. Since the paid up share capital of Company is more than Rs. 50 million, It is required to employ whole time secretary as per the provisions of section 383A of the Companies Act, 1956. Since company is suffering from great financial crisis and cost efficient Company Secretary is not available for reasonable remuneration, accordingly the Company has outsourced all its secretarial work to professional CS firm.

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Mar 31, 2013

1. Corporate Information

Ganesh Benzoplast Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange in India. The company is engaged in the business of manufacturing and selling food preservatives and industrial lubricants. The company caters to both domestic and international markets. The company also provides storage and warehousing services at various ports in India.

2. Basis of preparation

The financial statements have been prepared to comply in all material respects in respects with the Notified accounting standard by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

3. Capital Commitments

Estimated amount of contract remaining to be executed on capital account, net of advances, not provided for is Rs. 55.00 Million (Previous year Rs. 0.8 Million)

4. Capital and Reserves of the company has been fully eroded by the net losses, the necessary reference to the Board for Industrial & Financial Reconstruction (BIFR) had been made and the company was declared as sick vide order of BIFR passed in May, 2010, wherein the board has appointed Operating Agency to prepare a revival scheme for the Company.

5. Gratuity and other post-employment benefit plans:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is non-funded.

The following tables summaries the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans.

6. There are no dues to Micro, Small and Medium Enterprises as defined under "The Micro, Small and Medium Enterprises Development Act, 2006 as at 31 March 2013. This information has been determined to the extent; such parties have been identified on the basis of the information available with the Company.

7. Since the paid up share capital of Company is more than Rs. 50 million, It is required to employ whole time secretary as per the provisions of section 383A of the Companies Act, 1956. Since company is suffering from great financial crisis and after lot of effort also cost efficient Company Secretary is not available for reasonable remuneration. Accordingly the Company has outsourced all its secretarial work to professional CS firm.

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Mar 31, 2012

1. Corporate Information

Ganesh Benzoplast Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange in India. The company is engaged in the business of manufacturing and selling food preservatives and industrial lubricants. The company caters to both domestic and international markets. The company also provides storage and warehousing services at various ports in India.

2. Basis of preparation

The financial statements have been prepared to comply in all material respects in respects with the Notified accounting standard by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. Previous year''s figures have been regrouped where necessary to confirm this years classification keeping in mind requirement of revised schedule VI.

(a) Terms/Rights attached to Equity shares

The company has only one class of equity shares having par value of n'' per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of ail preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per the records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal & beneficial ownership of shares.

a) Company had issued 746,630 nos. of Zero coupon Bond (ZCB) having face value of Rs.100 each for an aggregate of Rs.74.66 million to IFCI in accordance with One Time Settlement Agreement entered in the earlier years. The said ZCB are redeemable at par in three equal installments of Rs.24.88 million each on September 30, 2016, September 30, 2017 and September 30, 2018. These ZCB are interest free and non transferable. Further these are secured by second charge on all fixed assets of the Company.

b) Cent rental loan is secured against contract with one of the customer Bharat Petroleum Corporation Limited for rendering of storage services. Further this is secured against mortgage of personal properties of promoters alongwith personal guarantees of directors and their relatives and corporate guarantee of M/s Agarwal Bulk Actives Pvt Ltd. (Associates). This loan is'' repayable in 24 monthly installments ofRs. 1.22 million each including interest @ bank rate plus 5% p.a., from the date of the loan.

c) Term Loans from financial institutions are secured against mortgage/charge of all movable/immovable properties both present and future and first charge by way of hypothecation of all movables (save and except book debts) including movable machinery spares, tools and accessories present and future subject to prior charge and/or charge to be created in favour of India Debt Management Pvt. Ltd ("IDM") for the loans extended by it to the company and shall rank pari-passu with such charges. There are no agreed term in respect of repayment and interest is charged @16% p.a.

a) Bank overdraft facility is secured against fixed deposits of Rs. 45 Millions with bank. The overdraft is repayable on demand and carries interest @ 10% p.a.

b) Cent rental loan is secured against contract with one of the customer The Fertilizers Chemical Travancore Limited for rendering of storage services. Further this is secured against mortgage of personal properties of alongwith personal guarantees of directors and their relatives and corporate guarantee of M/s Agarwal Buik Actives Pvt Ltd. (Associates).

The Company has made profit during the year but since the company has huge assessed losses as well as book losses, no provision has made in respect of Income Tax or MAT u/s 115JB of the Income Tax Act,1961. Secondly SICK companies are exempt from MAT as per provisions of section 115JB of the act. Further In view of uncertainty of availment of tax benefit on accumulated business losses and unabsorbed depreciation, company has recognized deferred tax assets only to the extent of deferred tax liability. .

3. CAPITAL COMMITMENTS

Estimated amount of contract remaining to be executed on capita! account, net of advances, not provided for is Rs. 0.8 Million (Previous year 7NIL).

4. Capital and Reserves of the company has been fully eroded by the net losses, the necessary reference to the Board for Industrial & Financial Reconstruction (BIFR) had been made and the company was declared as sick vide order of BIFR passed in May, 2010, wherein the board has appointed Operating Agency to prepare a revival scheme for the Company.

5. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is non-funded. .

The following tables summaries the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

6. There are no dues to Micro, Small and Medium Enterprises as defined under "The Micro, Small and Medium Enterprises Development Act, 2006 as at 31 March 2012. This information has been determined to the extent; such parties have been identified on the basis of the information available with the Company.

7. Since the paid up share capita! of Company is more than Rs.50 million, It is required to employ whole time secretary as per the provisions of section 383A of the Companies Act, 1956. Since company is suffering from great financial crisis and after lot of effort also cost efficient Company Secretary is not available for reasonable remuneration. Accordingly the Company has outsourced all its secretarial work to professional CS firm.

8. Remuneration to Managing Director-As per resolution passed in 24th General meeting of the Company held on 30 September 2011 Company has paid Rs.0.5 Million 70.1 Million. Per month to Mr, Rishi Pilani starting from 1 November 2011 till 31 March 2012 as salary for the post of Chairman Cum Managing Director.

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Mar 31, 2011

1 Contingent Liabilities not provided for

(Rs. in millions)

31-Mar-11 31-Mar-10

Claims fled by Twenty Two parties 89.91 89.91

before different courts against com- pany not acknowledge as Debt includ- ing the claim partly acknowledged

Claims by Two co-op banks by fling 13.20 13.20 recovery suits in respect of guaran- tees alleged to have been issued by company

Contingent Liabilities in respect of 50.00 50.00 pending Sales Tax re-assessment

Claim of The State Trading Corpo- 113.50 ration Ltd in respect of unrealized 113.50 exports bills of The State Trading Corporation Ltd

Claim of Jawaharlal Nehru Port Amount Amount Trust & Marmagao Port Trust in indetermi- indetermi- Arbitration nate nate

Income Tax demand (Pertains to 37.63 37.63 interest charged u/s 234A/B/C and 220(2) of I.T. Act 1961) in respect of Assessment Year 1999-00 and 2000-01. In this respect the company has approached to BIFR for waiver of overall interest. And looking in to company's financial crisis our plea is likely to be accepted.

2. Capital and Reserves of the company has been fully eroded by the net losses, the necessary reference to the Board for Industrial & Financial Reconstruction (BIFR) had been made and the company was de- cleared as sick unit vide order of BIFR passed in May, 2010, wherein the board has appointed Operating Agency to prepare a revival scheme for the Company.

3. Secured Loans referred to in Schedule 'C':-

a) Company had issued 746,630 nos. of Zero coupon Bond (ZCB) having face value of Rs.100 each for an aggregate of Rs.74.66 million to IFCI in accordance with One Time Settlement Agreement entered in the earlier years. The said ZCB are redeemable in three equal installments of Rs.24.88 million each on September 30, 2016, September 30, 2017 and September 30, 2018. These ZCB are interest free.

b) Term Loans referred to (B) (1) and (2) of schedule 'C' are secured by mortgage/charge of all movable/immovable properties both present and future and first charge by way of hypothecation of all movables (save and except book debts) including movable machinery spares, tools and accessories present and future subject to prior charge and/or charge to be created in favour of India Debt Management Pvt. Ltd ("IDM") for the loans extended by it to the company and shall rank pari passu with such charges.

4. The Company has made Profit during the year but since the company has huge assessed losses as well as book losses, no provision has made in respect of Income Tax or MAT u/s 115JB of the Income Tax Act,1961. Further In view of uncertainty of a ailment of tax benefit on accumulated business losses and unabsorbed depreciation, company has recognized deferred tax assets only to the extent of deferred tax liability.

5. Since the paid up share capital of Company is more than Rs.50 million, It is required to employ whole time secretary as per the provisions of section 383A of the Companies Act, 1956. Since company is suffering from great financial crisis and after lot of effort also cost efficient cost accountant is not available for reasonable remuneration. Accordingly the Company has outsourced all its secretarial work to professional CS firm.

There has been no payment of remuneration to the managing director or any other directors of the Company.

6. Segment Information

Business Segments :

The business of the company is presently organized in the following major segments

CHEMICAL DIVISION

Manufacturing and marketing of specialized chemicals such as Benzoate Plasticizer, Benzoic Acid and spectrum preservatives. The company is the only company in India to manufacture pure Benzoic Acid, confirming to international standards of food grade. Sodium Benzoate & Benzoic acid both have huge demands in the Industries like Food Processing, Fruit Processing Toothpaste, Automobile, Paints, Tobacco, Rubber, Coolant, Paper, Corrosion and Cutting Oils

INFRASTRUCTURE DIVISION

Liquid chemical storage tanks which are leased on rent for storing liquid chemicals. The tanks are located presently at JNP (Nhava Sheva), Goa and Cochin. The storage terminals are located at prime terminals for import and export of liquid cargo.

Others include immaterial operating segments of the company.,,

Geographical Segments :

The Company does not have revenue or assets/ customers based on such revenue which expose the Company to diverse risk/reward environments hence the company has not made any secondary segment disclosures. Also since the operations of the company are in India and hence the Company is not affected by diverse risks & rewards environment.

The details are as under:

7 Gratuity and other post-employment benefit plans:

The Company has a defend benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is non-funded.

The following tables summarise the components of net benefit expense recognised in the Profit and loss account and amounts recognised in the balance sheet for the respective plans.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

8 Un-hedged Foreign Currency Exposure

Particulars of Un-hedged foreign Currency Expo- sure as at the Balance Sheet date

* It is not practicable to furnish quantitative information in view of the large number of items which differ in size and nature, each being less than 10% in value of the total.

** Excluding captive consumption

*** Capacities of all the finished goods are interchangeable and can be utilized for different product mix

9. The Company has operating lease from various premises which are renewable on a periodic basis and cancelable at its option. Rental expenses for operating lease are charged to Profit and Loss account for the year Rs.19.53 Million(Previous Year Rs.23.17 Million)

Not later than one year Rs.19.53 Millions (Previous Year Rs.23.17 Millions)

Not later than five years Rs.19.53 Millions (Previous Year Rs.23.17 Millions)

10. The Company in earlier years had given interest free loan/advances to one of the director of the Company amount- ing to Rs.8.28 Millions for which the approval of Central Government as required by section 295(1) of Companies Act,1956 was not obtained. During the current financial year whole loan was repaid by the said director and no such amount is outstanding from him. Similarly company has also regularized the provisions of section 58A,58AA of Companies Act,1956, in respect of acceptance of Fixed Deposits from public by way of repaying the whole amount of Rs.10.92 Millions taken from shareholders and relatives,

11. Previous Year Comparatives

Previous year's figures have been regrouped where necessary to conform to this year's classification.

Note : (1) Figures in brackets represents outflows

(2) The above cash flow statements has been prepared under the indirect method as set outing the Accounting standard 3 on cash flow statement issued by the ICAI.

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Mar 31, 2010

1 Contingent Liabilities not provided for

Rs, in millions

2009-2010 2008-2009

Claims against the Company not acknowledged as debts * 42.00 42.00

Guarantees and Counter guarantees given by the Company 2.66 2.00

Income Tax demand (including interest u/s 234 A/B/C & 220) in respect of Assessment

Year 1999-00 in respect of which the company has gone on appeal.

Based on judicial pronouncements, the Companys claim is likely to be accepted by appellate authorities 37.63 37.63

Claims against the Company not acknowledged as debts comprises of two customers who have commenced action against the Company in respect of losses suffered due to rupture of storage tank. It has been estimated that the liability, should the action be successful is Rs. 42 millions

A trial date has not yet been set and therefore it is not practicable to state the timing of any payment. The Company has been advised by its Counsel that it is possible, but not probable, the action will succeed and accordingly no provision for any liability has been made in these financial statements.

2. Capital and Reserves of the company has been fully eroded by the net losses, the necessary reference to the Board for Industrial & Financial Reconstruction (BIFR) had been made and the case has been registered. The management of the Company is working on business plans to improve profitability and is working with certain lenders on improving its capital structure. Subsequent to the year end the Company has been declared as Sick Industrial Undertaking by Board for Industrial and Financial Reconstruction (BIFR), wherein the board has appointed Operating Agency to prepare a revival scheme for the Company.

3. Debentures referred to in Schedule C:-

a) During the current and previous financial year Company has redeemed all the Non Convertible Debentures way of One Time Settlement (OTS). As on date no liability exists for Non Convertible debentures.

b) Company had issued 746,630 nos. of Zero coupon Bond (ZCB) having face value of Rs.100 each for an aggregate of Rs.74.66 Mn. to IFCI in accordance with One Time Settlement agreement. The said ZCB are redeemable in three equal installments of Rs.24.88 Mn.each on September 30,2016, September 30,2017 and September 30,2018. These ZCB are interest free.

c) Term Loans referred to (B) (1) and (2) of schedule C are secured by mortgage/charge of all movable properties both present and future and first charge by way of hypothecation of all movables (save and except book debts) including movable machinery spares, tools and accessories present and future subject to prior charge and/ or charge to be created in favour of India Debt Management Pvt Ltd ("IDM") for the loans extended by it to the company and shall rank pari-passu with such charges.

Apart from the Term Loans referred to (B) (1) and (2) of schedule C, the company has also taken two loans from IDM secured by all movable and immovable assets of the company. The security creation on these loans is yet to be completed

4. The Company has made loss during the year and accordingly no provision has made in respect of Income Tax. The Company has accumulated losses upto March 31, 2010. Further In view of uncertainty of availment of tax benefit on accumulated business losses and unabsorbed depreciation, company has recognized deferred tax assets only to the extent of deferred tax liability.

5. Since the paid up share capital of Company is more than Rs 2 crores, It is required to employ whole time secretary as per the provisions of section 383A of the Companies Act, 1956. The Company has given advertisement for appointment and the whole time secretary will be appointed in due course.

6. There has been no payment of remuneration to the managing director or any other directors of the Company.

7. Segment Information

Business Segments :

The busings of the company is presently organized in the following major segments

CHEMICAL DIVISION

Manufacturing and marketing of specialized chemicals such as Benzoate Plasticizer, Benzoic Acid and spectrum preservatives. The company is the only company in India to manufacture pure Benzoic Acid, confirming to international standards of food grade. Sodium Benzoate & Benzoic acid both have huge demands in the Industries like Food Processing, Fruit Processing Toothpaste, Automobile, Paints, Tobacco, Rubber, Coolant, Paper, Corrosion and Cutting Oils.

INFRASTRUCTURE DIVISION

Liquid chemical storage tanks which are leased on rent for storing liquid chemicals. The tanks are located presently at JNP (Nhava Sheva), Goa and Cochin. The storage terminals are located at prime terminals for import and export of liquid cargo.Others include immaterial operating segments of the company.

Geographical Segments :

The Company does not have revenue or assets/ customers based on such revenue which expose the Company to diverse risk/reward environments hence the company has not made any secondary segment disclosures.

8. Related Parties

a) Names of related parties

Names of related parties where control exists irrespective of whether transactions have occurred or not

Nil

Names of other related parties with whom transactions have taken place during the year

Key Management Personnel

Relatives of key management personnel

Rishi Pilani / Raunak Pilani

Ravi Pilani Poonam Pilani Shantidevi Pilani Manju Pilani Sushila Pilani Ramakant Pilani Ramesh Pilani

Enterprises owned or significantly influenced by key management personnel or their relatives

Futuristic Offshore Services And Chemical Ltd

Agarwal Chemicals

Susram Financial Services and Techniques Pvt Ltd.

Agarwal Bulk Actives Pvt.Ltd.

Ganesh Risk Management Pvt. Ltd

Ganesh Flexobenz Pvt.Ltd

Ganesh Energene Limited

9. Gratuity and other post-employment benefit plans:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is non-funded.The following tables summarise the components of net benefit expense recognised in the profit arrd loss account and amounts recognised-in the balance sheet for the respective plans.

10. The Company has operating lease from various premises which are renewable on a periodic! basis and cancelable at its option. Rental expenses for operating lease are charged to Profit and Loss account for the year Rs.23.17 Mn. (Previous Year Rs. 17.57 Mn.)

Not later than one year Rs. 23.17 Mn. (Previous Year Rs. 17.57 Mn.) Not later than five years Rs. 23.17 Mn. (Previous Year Rs. 17.57 Mn.)

11. Previous Year Comparatives

Previous years figures have been regrouped where necessary to conform to this years classification.