Notes to Accounts of Jayshree Chemicals Ltd.

Mar 31, 2016

NOTES :

1. The Company has only one class of shares referred to as equity shares having a par value of '' 10/-. Each holder of equity shares is entitled to one vote per share.

2. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of shares held by the shareholders.

3. Details of Share holders holding more than 5% of total shares as on 31st March, 2016

Notes :

Disclosure pertaining to Micro, Small and Medium Enterprises (as per information available with the Company : Principal amount Outstanding as at 31st March, 2016 '' NIL, ('' 2,12,740/-)

Derivative Instruments :

i. The Company uses foreign currency forward contracts to hedge risk associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

Outstanding Forward Contracts entered into by the Company on account of payables:

1. RELATED PARTY DISCLOSURE :

Name of the related party Relationship

A. Name of the related party with whom the Company has transactions during the year

East Coast Powers Limited Subsidiary

The West Coast Paper Mills Ltd Control of KMP

Shree Ram Trust Control of KMP

Orbit Udyog Pvt. Ltd. Control of KMP

B.N. Kapur Pvt Ltd Control of KMP

The Thirumbadi Rubber Co. Ltd. Control of KMP

Crossley & Towers Pvt.Ltd Control of KMP

Shree Satyanarayan Investments Co. Ltd Control of KMP

The Diamond Company Ltd Control of KMP

Sri Girija Prasanna Cotton Mills Ltd . Control of KMP

The Indra Company Ltd. Control of KMP

Veer Enterprises Ltd. Control of KMP

Akhivi Tea Plantations & Agro Ind. Ltd. Control of KMP

Gold Mohore Investments Co. Ltd. Control of KMP

Saumya Trade & Fiscal Services (P) Ltd. Control of KMP

Shree Kumar Bangur Chairman

Virendraa Bangur Managing Director

P N Ojha Executive Director P K Gupta Chief Financial Officer

S K Lahoti Company Secretary

Shashi Devi Bangur Relative of KMP

Bharati Bangur - Executive (Corporate Affairs) Relative of KMP

The estimates of future salary increase, considered in actuarial valuation, take into account of inflation, seniority, promotion and

relevant factor, such as demand supply in the employment market.

2. As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The average net profit of the Company made during the three immediately financial years, as calculated under the provision of section 198 of the Companies Act, 2013, is negative, therefore no amount has been earmarked for the purpose of Corporate Social Responsibilities.

3 The Board has approved in their meeting held on 8th September, 2014 sale of the Company''s Chloro Alkali Manufacturing Facility at Ganjam in Odisha and Salt Manufacturing Facility at Pundi in Andhra Pradesh "on as is where is basis" on a slump sale basis as a going concern to Aditya Birla Chemical (India) Ltd (ABCIL) at a lump sum consideration of '' 212 Crores. The Company has finally handed over its Chloro Alkali Manufacturing Facility at Ganjam, Orissa and Salt Manufcaturing Facility at Pundi in Andhra Pradesh to ABCIL on 21st September, 2015.

4 Basis of calculation of Basic and Diluted Earnings Per Share is as under :

5 Current year’s figures are not comparable as the Company has sold Chloro Alkali Manufacturing Facility at Ganjam, along with Salt Fields on slump sale basis on "as is where is basis" on 21/09/2015 to Aditya Birla Chemicals (India) Limited.

6 Figures in bracket represent amount related to previous year.

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

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Mar 31, 2015

1. SHARE CAPITAL

1. The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share.

2. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However,no such preferential amounts exist currently. The distribution will be in proportion to the number of shares held by the shareholders.

2. Nature of Security

For Modernisation cum Expansion Project : Secured by first pari-passu charge inter-se by way of hypothection of machinery and other fixed assets acquired or to be acquired out of the Term Loans from State Bank of Bikaner And Jaipur, State Bank of India and Indian Overseas Bank, the Term Lenders, and equitable mortgage of all the piece and parcel of factory land and other land aggregating to 140.80 Acres (lease hold land measuring about 107.41 Acres and free hold land measuring about 33.39 Acres) (excluding Wind Mill Land and Wind Mill receivables) situated at Ganjam District, Kalyanpur, Kanchipur, Jarapadar at Jayshree Nagar where the Company's registered office is located together with all buildings and structures, plant & machineries erected thereon, both present and future, and second charge on the current assets of the Company.

Out of total land of 140.80 Acres leasehold land measuring 42.79 Acres is presently mortgaged with the Government of Odisha. The Company is to create equitable mortgage thereon in favour of Banks on release of charge by Government of Odisha. At present FDR of Rs. 10.86 lacs equivalent to amount of dues of Government of Odisha are held under lien with State Bank of Bikaner and Jaipur, and a mortgage on land purchased from OSFC measuring 2.40 Acres is to be created.

For Wind Mill Project : Exclusively secured by first pari-passu charge by way of hypothecation on the whole movable fixed assets purchased/to be purchased out of the term loans for the wind mill project at Bogampatti Village, Sulur Taluk, Tirupur, Coimbatore and Wind Mill receivables in favour of State Bank of Bikaner And Jaipur (SBBJ) and Indian Overseas Bank (IOB) and second charge on the current assets ranking pari-passu with other term lenders and to be further secured by equitable mortgage of Wind Mill project land measuring 2 Acres in favour of SBBJ and IOB on pari-passu basis.

3. CONTINGENT LIABILITIES AND COMMITMENTS

a. Contingent Liabilities

Claims against the Company not Acknowledge as Debt (Net of deposit)

i) Sales Tax Demand under Appeals 82,51,465 45,98,885

ii) Income Tax Demand under Appeals - 2,23,629

iii) Others 5,95,92,288 5,01,15,126

6,78,43,753 5,49,37,640

Guarantees 4,31,31,109 8,32,08,582

11,09,74,862 13,81,46,222

b. Commitments

Outstanding Estimated Capital Commitment (Net of Advances) 20,46,600 12,22,539

Other commitment :

Derivative Instruments :

i. The Company uses foreign currency forward contracts to hedge risk associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

Outstanding Forward Contracts entered into by the Company on account of payables :

Loan Payable

As at No. of Contracts US Dollar INR Equivalent

31.03.2015 2 37,41,000 22,48,39,327

31.03.2014 2 47,62,500 28,18,59,698

ii. The year-end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below :

Amount Payable in Foreign currency on account of the following :

Loan Payable

As at No. of Contracts US Dollar INR Equivalent

31.03.2015 – – –

31.03.2014 1 4,34,000 2,60,82,521

4. SEGMENT REPORTING

The company has no reportable business segment as per AS-17 "Segment Reporting" as it mainly deals into the business of chemicals only.

The Company caters mainly to the needs of domestic market. There is no export turnover during the year, as such there are no reportable Geographical segments.

5. RELATED PARTY DISCLOSURE :

Name of the related party Relationship

A. Name of the related party with whom the Company has transactions during the year

East Coast Powers Limited Subsidiary

The West Coast Paper Mills Ltd Control of KMP

Shree Ram Trust Control of KMP

Orbit Udyog Pvt. Ltd. Control of KMP

B.N. Kapur Pvt Ltd Control of KMP

The Thirumbadi Rubber Co. Ltd. Control of KMP

Crossley & Towers Pvt.Ltd Control of KMP

Shree Satyanarayan Investments Co. Ltd Control of KMP

The Diamond Company Ltd Control of KMP

Sri Girija Prasanna Cotton Mills Ltd . Control of KMP

The Indra Company Ltd. Control of KMP

Veer Enterprises Ltd. Control of KMP

Akhivi Tea Plantations & Agro Ind. Ltd. Control of KMP

Gold Mohore Investments Co. Ltd. Control of KMP

Saumya Trade & Fiscal Services (P) Ltd. Control of KMP

Shree Kumar Bangur Chairman

Virendraa Bangur Managing Director

P N Ojha Executive Director

P K Gupta Chief Financial Officer

R K Gupta Company Secretary

Shashi Devi Bangur Relative of KMP

Bharti Bangur - Executive (Corporate Relative of KMP Affairs)

5. As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The average net profit of the Company made during the three immediately financial years, as calculated under the provision of section 198 of the Companies Act, 2013, is negative, therefore no amount has been earmarked for the purpose of Corporate Social Responsibilities.

6. The Board has approved in their meeting held on 8th September, 2014 sale of the Company's Chloro Alkali Manufacturing facility at Ganjam in Orissa and Salt manufcaturing facility at Pundi in Andhra Pradesh on "as is basis" on a slump sale as a going concern to Aditya Birla Chemicals (India) Ltd (ABCIL) at a lump sum consideration of ' 212 crores.The Company is under process to finalise the closing date for hand over.

7. The Company has recognised Rs. 1,48,33,755/- towards insurance claim receivables against loss of raw-materials and equipments as exceptional item.

8. Figures in bracket represent amount related to previous year.

9. Previous year's figures have been rearranged / regrouped wherever necessary. Signatures to Note Nos. 1 and 2.

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Mar 31, 2014

1.1 SEGMENT REPORTING

The company has no reportable business segment as per AS-17 "Segment Reporting" as it mainly deals into the business of chemicals only.

The Company caters mainly to the needs of domestic market. There is no export turnover during the year, as such there are no reportable Geographical segments.

1.2 The exceptional items represents losses of raw materials because of cyclone-Phailin and flood.

1.3 The Company has lost production because of shutdown of plant due to cyclone-Phailin, flood and break down of transformer due to after effect of cyclone.

1.4 Figures in bracket represent amount related to previous year.

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

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Mar 31, 2013

(Amounting

Year ended PartlCarS 31/03/2012

1.1 CONTINGENT LIABILITIES AND COMMITMENTS

a. Contingent Liabilities

Claims against the Company not acknowledged as Debt (Net of Deposit)

i) Sales Tax Demand under Appeals 45,98,885 45,98,885

ii) Income Tax Demand under Appeals 2,23,629 2,23,629

iii) Others 3,38,63,924 3,05,91,802

3,86,86,438 3,54,14,316

Guarantees 7,57,51,089 5,40,34,790

11,44,37,527 8,94,49,106

b. Commitments

Outstanding Estimated Capital Commitment (Net of Advances) 1,36,67,483 67,83,451

1.2 Figures in bracket represent amount related to previous year.

1.3 Previous year''s figures have been re-arranged/re-grouped wherever necessary.

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Mar 31, 2012

Notes:

1. The Company has only one class of shares referred to as equity shares having a par value of Rs 10/-. Each holder of equity shares is entitled to one vote per share.

2. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However,no such preferential amounts exist currently. The distribution will be in proportion to the number of shares held by the shareholders.

Notes:

Terms of Repayment

Outstanding Rupee Term Loan availed for Wind Mill is repayable in 16 quarterly instalments ofRs 18,75,000/- each. Outstanding Rupee/FCNR(B) Term Loans are repayable in 22 quarterly instalments of Rs 3,75,00,000/- each.

Outstanding Rupee Corporate Loan is repayable in 12 monthly instalments ofRs 25,00,000/- each.

Nature of Security

For Government of Odisha - Subsidised Housing Scheme :

Secured by legal mortgage upon the Company's Leasehold Land measuring 42.79 Acres and Buildings and Structures constructed thereon.

For Modernisation cum Expansion Project:

Secured by first pari-passu charge inter-se by way of hypothection of machinery and other fixed assets acquired or to be acquired out of the Term Loans from State Bank of Bikaner and Jaipur, State Bank of India and Indian Overseas Bank, the Term Lenders, and equitable mortgage of all the piece and parcel of factory land and other land aggregating to 140.80 Acres (lease hold land measuring about 107.41 Acres and free hold land measuring about 33.39 Acres) (excluding Wind Mill Land and Wind Mill receivables) situated at Ganjam District, Kalyanpur, Kanchipur, Jarapadar at Jayshree Nagar where the Company's registered office is located together with all buildings and structures, plant & machineries erected thereon, both present and future, and second charge on the current assets of the Company.

Out of total land of 140.80 Acres leasehold land measuring 42.79 Acres is presently mortgaged with the Government of Odisha. The Company is to create equitable mortgage thereon in favour of Banks on release of charge by Government of Odisha. At present FDR of Rs 10.86 Lacs equivalent to amount of dues of Government of Odisha are held under lien with State Bank of Bikaner and Jaipur, and a mortgage on land purchased from OSFC measuring 2.40 Acres is to be created.

Notes:

Cost of Materials Consumed Includes employee benefits expenses Rs 28,42,736/- (Rs 28,23,633/-), Power & Fuel Rs 8,87,02£/- (Rs 6,14,090/-), Repairs & Maintance Rs 17,14,183/- (Rs 21,85,922/-), Insurance Rs 7,351/- (Rs 7,530/-) and Rates & Taxes Rs 2,58,627/-(Rs 2,27,179/-).

1.1 CONTINGENT LIABILITIES AND COMMITMENTS

a. Contingent Liabilities

Claims against the Company not acknowledged as Debt (net of deposit)

i) Sales Tax Demand under Appeals 45,98,885 47,95,651

ii) Income Tax Demand under Appeals 2,23,629 34,44,730

iii) Others 3,05,91,802 2,29,93,751

3,54,14,316 3,12,34,132

Guarantees 5,40,34,790 1,23,04,216

8,94,49,106 4,35,38,348

b. Commitments

Outstanding Estimated Capital Commitment (Net of Advances) 67,83,451 82,46,93,774

Other commitment:

Derivative Instruments:

a. The Company uses foreign currency forward contracts to hedge risk associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

1.2 The Company has changed its accounting policy on valuation of finished goods from FIFO method to Weighted Average method. However, the change of method in valuation has no material impact on the financial results.

1.3 The corresponding figures of the previous financial year are not comparable with those of the current financial year, as the Company has commenced Commercial Production of 152 MTPD Membrane Cell Technology based Plant from 1st April, 2011 whereas the capacity of Mercury Cell based Plant was 65 MTPD.

1.4 Figures in bracket represent amount related to previous year.

1.5 Previous year's figures have been re-arranged/re-grouped wherever necessary.

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Mar 31, 2011

1.Outstanding Capital Commitments (Net of Advance) are estimated at Rs 1,08,05,930/- (Rs 82,46,93,774/-).

31st March, 31st March, 2011 2010 Rs Rs 2. Contingent Liabilities not provided for:

(a) Claims against the Company not acknowledged as Debts (Net of deposit) -

i)Sales Tax Demand 47,95,651 43,24,958 under Appeals

ii)Income Tax Demand 34,44,730 - under Appeals

iii) Others(including 2,29,93,751 1,68,83,578 Excise Duty under appeals)

(b) Guarantees 1,23,04,216 1,99,18,493

* Includes payments to and provision for employees Rs 28,23,633/- (Rs 26,55,153/-), Power & Fuel Rs 6,14,090/- [Rs6,57,405/-), Repairs & Maintenance Rs 21,85,922/- (Rs 13,28,212/-), Insurance Rs 7,530/- (Rs 6,984/-) and Rates & TaxesRs 2,27,179/- (Rs 2,56,250/-).

** Includes Rs 6,20,04,274/- transferred to Pre-operative Expenses.

3. Depreciation has been computed on straight line method under Section 205 (2) (b) of the Companies Act, 1956 except on (i) Furniture & Fittings (ii) Motor Cars & Vehicles (iii) Laboratory Equipments (iv) Railway Siding (v) Weighing Machines and (vi) Fire Extinguishers which are depreciated on written down value basis under Section 205 (2) (a) of the Companies Act, 1956.

4. Disclosure pertaining to Micro, Small and Medium Enterprises (as per information available with the Company: Principal amount Outstanding as at 31st March, 2011 Rs 1,89,605/- (Rs 7,95,829/-).

5.Segment Reporting:

The Company caters mainly to the needs of domestic market. There is no export turnover during the year, as such there are no reportable Geographical segments.

6. There is no impairment of Assets during the year and, therefore no adjustment has been made thereof.

7. The following table summarises net benefit expenses recognized in the profit & loss account and funded status and amounts recognised in the balancesheet for Gratuity and Leave Encashment Liability:

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

8.Details of Security given under Secured Loan :

Against Cash Credit -

Secured by hypothecation of stocks of Raw Materials, Stores, Finished Products,Stock-in-Process and book-debts by way of first charge and also equitable mortgage by way of first charge on pari-passu basis with other term lenders on immovable properties of factory land and other land aggregating to 141.46 acres at Ganjam Dist. together with all buildings and structures thereon and all Plant & Machineries attached to the earth or permanently fastened to anything attached to the earth.

Against Modernisation cum expansion project -

Secured by pari-passu charge inter-se by way of hypothecation of machinery and other fixed assets acquired or to be acquired out of the Term Loan and equitable mortgage of factory land and other lands aggregating 141.46 acres at Ganjam Dist. Kalyanpur, Kanchipur, Jarapadar on pari-passu basis and pari-passu second charge over the current assets.

Against Wind-Mill -

Secured by first pari-passu charge by way of hypothecation on the whole movable fixed assets purchased/to be purchased out of the term loan for the Wind Mill project at Bogampatti Village, Sulur Taluk, Tirupur Coimbatore and Wind Mill receivables and second charge on the current assets ranking pari-passu with other term lenders and to be further secured by equitable mortgage of Wind - Mill project land measuring 2 acres.

Security Given under Secured Loans -

The Housing Department, Government of Orissa is not in existence. Accordingly, dues against the Housing loan could not be repaid. The Company has made a Fixed Deposit of Rs 10.00 Lacs with S.B.B.J. Kolkata, which is held under lien by them to be utilised for repayment of dues of the Housing Department, Government of Orissa. On release of charge by Government of Orissa on Land measuring 42.79 acres, the same shall be mortgaged to Term Lenders and Cash Credit Lenders by way of first charge.

9. Derivative Instruments:

a) The Company uses foreign currency forward contracts to hedge risk associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

10.The Company has closed down the existing Mercury Cell based Caustic Soda Plant on 29/12/2010 and on the same day commenced trial run of the Membrane Cell Technology based new Plant, which was successfully completed on 31/03/2011, hence financial statements of the year are not comparable with the corresponding previous year's figures.

11.Other Income includes Rs 834.96 Lacs on account of used mercury sold during the year derived from the old Mercury Cell based caustic soda Plant.

12.Figures in bracket represent amount related to previous year.

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

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Mar 31, 2010

1. Outstanding Capital Commitments (Net of Advances) are estimated at Rs. 82,46,93,774/- (Rs. 28,73,95,000/-).

Particulars 31st March, 2010 31st March, 2009 Rs. Rs.

2. Contingent Liabilities not provided for:

(a) Claims against the Company not acknowledged as Debts (Net of Deposit)

Sales Tax Demand under Appeals 43,24,958 23,24,990

Income Tax Demand under Appeals - 50,39,888

Others (including Excise Duty under Appeals) 1,68,83,578 36,24,364

(b) Guarantees 1,99,18,493 15,93,768

3. Depreciation has been computed on Straight Line Method under Section 205 (2)(b) of the Companies Act, 1956, except on (i) Furniture & Fittings (ii) Motor Cars & Vehicles (iii) Laboratory Equipments (iv) Railway Siding (v) Weighing Machines and (vi) Fire Extinguishers which are depreciated on written down value basis under Section 205 (2)(a) of the Companies Act, 1956.

4. Disclosure pertaining to Micro, Small and Medium Enterprises (as per information available with the Company : Principal amount Outstanding as at 31st March, 2010, Rs. 7,95,829/- (Rs. 6,90,867/-).

5. Segment Reporting

Business segment is primary segment of the Company and comprises chemicals business and wind mill power generation. Wind mill base power generation has come into operation with effect from 30.09.2009

6. Right Issue expenses includes Auditors Remuneration Rs. 75,000/-.

7. There is no impairment of Assets during the year and, therefore no adjustment has been made thereof.

8 Related Party Disclosure

A) Name of the related party with whom the Company has transactions during the year:

Name of the related party Relationship

East Coast Powers Limited Subsidiary

The West Coast Paper Mills Ltd. Control of KMP

Shree Ram Trust Control of KMP

Fort Gloster Industries Ltd. Control of KMP

D. K. Maheshwari Executive Director

Bharti Bangur - Executive (Corporate Affairs) Relative of KMP Note: KMP means Key Managerial Personnel

9. Unutilised money raised through rights issue has been kept in current account with scheduled banks.

10. Details of security given under Secured Loan

Against Cash Credit -

Secured by hypothecation of stocks of Raw Materials, Stores, Finished Products, Stock-in-Process and Book Debts by way of first charge and also equitable mortgage byway of first charge on pari-passu basis with other term lenders on immovable properties of factory land and other land aggregating to 141.46 acres at Ganjam Dist. together with all Buildings and Structures thereon and all Plant & Machineries attached to the earth or permanently fastened to anything attached to the earth.

Against Modernisation cum Expansion Project -

Secured by pari-passu charge inter-se by way of hypothecation of machinery and other fixed assets acquired or to be acquired out of the Term Loan and equitable mortgage of factory land and other lands aggregating141.46 acres at Ganjam Dist. Kalyanpur, Kanchipur, Jarapadar on pari-passu basis and pari-passu second charge over the current assets.

Against Wind Mill -

Secured by first pari-passu charge by way of hypothecation on the whole movable fixed assets purchased/to be purchased out of the term loan for the Wind Mill project at Bogampatti Village, Sulur Taluk, Tirupur Coimbatore and Wind Mill receivables and second charge on the current assets ranking pari-passu with other term lenders and to be further secured by equitable mortgage of Wind-mill project land measuring 2 acres.

11. Figures in bracket represent amount related to previous year.

12. Previous years figures have been re-arranged/re-grouped wherever necessary.