Notes to Accounts of Lords Chloro Alkali Ltd.

Mar 31, 2023

* Fixed deposit 3-12 months include margin money of Rs 44,000 is equal to 5% margin on Bank Guarantee of Rs 8.79 Lakh (Previous Year 2021-22 Rs. 8.79 lakhs) issued to RRVUNL to secure the order of 87.95 Lakh of supply of our product Liquid Chlorine and Hydrochloric acid.Now Contract had completed but margin money still not released from bank (Current year 2022-23- Rs 0.50 (Including interest) Previous Year 2021-22- Rs 0.44) .

* Fixed deposit 3-12 months include margin money of Rs. 5,00,000 is equal to 5% margin on Foreign Letter of Credit of USD 1,24,339.66 to procure the order of Plant & Machinery from The Chemrous Company FC, LLC USA .Current year as on 31.03.2023 is NIL ( Pevious Year 2021-22 Rs. 5 Lakh)

(iii) Rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares with paid up value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share on all resolutions submitted to shareholders. They have right to participate in the profits of the company, if declared by the Board as interim dividend and recommended by the Board and declared by the members as final dividend. They are also entitled to bonus/right issue, as declared by Company from time to time. They have right to receive annual report of the Company, beside other rights available under the Companies Act and Listing Regulations.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, beside other rights available under the Companies Act.

The distribution will be in proportion to the number of equity shares held by the shareholders.

(iv) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, by way of bonus shares and shares bought back for the period of 5 years immediately preceding the balance sheet date

The Company has not issued any shares pursuant to contract(s) without payment being received in cash.

No bonus shares have been issued in preceding 5 years.

The Company has not undertaken any buy back of shares.

Note:-

i) Capital Reserve

The company recognise profit & loss on forfeiture of the company''s own equity instruments to capital reserve

ii) Security Premium Reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013

iii) Retained Earning

* The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Based on information received and available with the Company, there are no amounts payable other than disclosed above to Micro and Small Enterprises as at March 31, 2023 and March 31 2022.

# Details of Corporate Social Responsibility (CSR) expenditure is as follows:

The requisite disclosure relating to the CSR expenditure in terms on guidance note on corporate social responsibility issued by Institute of chartered accountant of India.

i) Gross amount required to be spent by the Company during the year (i.e. 2% of Average Net profits u/ s 198 of Companies Act, 2013 of last three years): Rs. 35.94 lakhs and actually spent Rs. 37.50 lacs)

ii) Amount spent during the previous year ended on March 31, 2022, Rs. 29.00 lakhs

Note :

During the year the Company was required to spent an amount of Rs. 35.94 lakhs . The actual amount spent of Rs. 37.50 lakhs represents CSR expenditure for the current year. During the financial year 2021-22 expenditure incurred Rs. 29.00 Lacs

# Lease related disclosures

The Company has lease for office building and factory lease hold land. With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use assetanda lease liability as a borrowings. Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets. The Company classifies its right-of-use assets in a consistent manner to its property, plant and equipment.

For leases previously classified as finance leases the entity recognised the carrying amount of the lease asset and lease liability immediately before transition as the carrying amount of the right of use asset and the lease liability at the date of initial application. The measurement principles of Ind-AS 116 are only applied after that date.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another party, the right-of-use asset can only be used by the Company. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security. For leases over office building the Company must keep those properties in a good state of repair and return the properties in their original condition at the end of the lease.

B Total cash outflow for leases for the year ended 31 March 2023 was Rs 174.41 lakh(i.e.95.77 is short term and Rs 78.64 is long term ) [Previous year 2021-22 Rs. 187.46 lakh( i.e.108.82 is short term and Rs 78.64 is long term )]

40A Financial instruments (i) Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are classified into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement; as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The management assessed that cash and cash equivalents, trade receivables, other receivables, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. Other noncurrent financial assets and non-current borrowings bear a market interest rate and hence their carrying amounts are also considered a reasonable approximation of their fair values.

40B Financial risk management

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the company. The company is exposed to this risk for various financial instruments, for example by granting loans and receivables to customers, placing deposits, etc. The company¹ s maximum exposure to credit risk is limited to the carrying amount of following types of financial assets.

- cash and cash equivalents,

- trade receivables,

- loans & receivables carried at amortised cost; and

- deposits with banks

Credit risk management

Credit risk rating

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the company, and incorporates this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.

Trade receivables

Company''s trade receivables are considered of high quality and accordingly no life time expected credit losses are recognised on such receivables.

Other financial assets measured at amortised cost

Other financial assets measured at amortized cost includes advances to employees. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

B) Liquidity risk

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. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company*s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company*s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Maturities of financial liabilities

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

41 Segment information

The Company''s primary business segment is reflected based on principal business activities carried on by the Company i.e. Caustic soda and other chemicals, which as per Ind AS 108 on "Segment Reporting” as specified under Section 133 of Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) is considered to be the only operating segment. The Company is primarily operating in India which is considered as a single geographical segment.

1. Pending resolution of the respective proceeding it is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgement/ decisions pending with various forums/ authorities.

2. The Company has reviewed all its pending litigations and proceeding and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of theses proceeding to have a materially adverse effect on its financial position. The Company does not expect any reimbursements in respect of the above contingent liabilities.

B Commitments (net of advance):

Estimated amount of contracts remaining to be executed on capital account Rs. 772.63 Lakh, (Previous year: 31 March 2022: Rs. 53 Lakh).

44 Unclaimed amount in respect of debentures and excess share application money refundable Rs. 11.64 lakhs, (Previous year: 31 March 2022: 11.64 lakhs ) is required to be transferred to the "Investor education and protection fund” in terms of section 125 of the companies act, 2013. the company is taking stqos to reconcile the above accounts and deposit the amount with the appropriate authorities.

Authorisation of financial statements

45

These financial statements for the year ended 31 March 2023 were approved by the Board of Directors on 23th May 2023.

46 The figures have been rounded off to the nearest Rs. lakhs upto two decimals.

47 Additional Regulatory Information:

1) Company has no freehold immovable property during the year.

n) The Company has not revalued its Property, Plant and Equipments during the year.

iii) The company has not made any loan or advances in the nature of loans to promoters, directors, KMPs, and the related parties .

iv) The company do not own or hold any Benami Property under the Benami Transactions (Prohibition) Act,1988(45of 1988) and the rules made there under.

v) The statements of current assets filed by the company with banks are in agreement with the books of accounts.

vi) The company is not declared a Willful Defaulter by any bank or financial institutions.

vii) The company do not have any transactions with companies stuck off under section 248 of the companies Act,2013 or section 560 of companies Act,1956.

viii) All Registration of charges or satisfaction are registered with Registrar of Companies (ROC).

ix) No Scheme(s) of Arrangements has been approved by the competent authority in terms of section 230 to 237 of the companies Act,2013 .

x) The company has utilised long therm borrowed fund for long term purpose only and short term fund for short term purpose only.

xi) During the year no income was surrendered or disclosed as income in the Tax Assessments

xii) The company has not dealt in Crypto Currency during the year.

xiii) The company is not having downstream companies or layers of companies prescribed under clause (87) of section 2 of the Act read with companies (Restriction on number of layers) Rules,2017.

xiv) The Company has not advanced or loaned or invested funds to any other person or entities with an understanding that the intermediary will invest or provide any guarantee, security or the like to or on behalf of ultimate beneficiaries .

xv) The Company has not received any fund from any person (s) or entity(s), including foreign entities( Funding party) with the understanding that the company shall directly or indirectly invest or provide any guarantee, security or the like to or on behalf of funding party.

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Mar 31, 2018

1. Significant accounting judgments, estimates and assumptions

When preparing the financial statements, management undertakes a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses.

The actual results are likely to differ from the judgments, estimates and assumptions made by management, and will seldom equal the estimated results.

Information about significant judgments, estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses are discussed below:

(i) Evaluation of indicators for impairment of non-financial assets

The evaluation of applicability of indicators of impairment of non-financial assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

(ii) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilized. The recognition of deferred tax assets and reversal thereof is also dependent upon management decision relating to timing of A ailment of tax holiday benefits available under the Income Tax Act, 1961 which in turn is based on estimates of future taxable profits.

Sources of estimation uncertainty:

(i) provisions

At each balance sheet date, basis the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding warranties and guarantees. However, the actual future outcome may be different from management’s estimates.

(ii) Fair valuation of financial instruments

Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument.

33 Related party disclosures

The nature of relationship and summary of transactions with related parties are summarized below

a) Name of the related party and nature of their relationship

Name of the related party Nature of relationship

Name of key managerial personnel (KMp) Designation

Mr. Rakesh Ahuja Non-Executive Director

Mr. Madhav Dhir Executive Director

Mr. Yuvraj Ahuja Non-Executive Director

Mr. Ajay Virmani Managing Director

Mr. Ranbir Singh Makhni Independent Director

Mr. Pawan Kumar Nayyar Independent Director

Mr. Sandeep Chaudhary Independent Director

Mr. Chandra Shekhar Pathak Independent Director

Mrs. Poonam Rawat Independent Director

Mr. Shiv Dutt Sharma Independent Director

Mr. Deepak Mathur Director (Technical)

Mr. Rajiv Kumar Chief Financial Officer

Mr. Rohit Verma(29 May’17 to 31 August’17) Company Secretary

Mr. Dipendra Chaudhary(27 February ‘18 to present) Company Secretary

Mr. Alok Dhir Relative of key

managerial personnel

Entities in which KMP/Relatives of KMP can exercise significant influence Cirrus Chemicals Pvt. Ltd.

Dhir & Dhir Associates

A Gratuity

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 following tables summarize the components of net benefit expense recognized in the Statement of Profit and Loss 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.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defind benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied which was applied while calculating the defined benefit obligation liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to prior period.

2.Leases

in case of assets taken on lease

Operating Lease:

The Company has entered into various operating lease arrangements for factory building, guest house and office premises. The leases are renewable on a periodic basis cancellable at its option.

3. Fair value disclosures

(i) Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are classified into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The management assessed that cash and cash equivalents, trade receivables, other receivables, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. Other non-current financial assets and non-current borrowings bear a market interest rate and hence their carrying amounts are also considered a reasonable approximation of their fair values.

4. Financial risk management

ii) Risk Management

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the company. The company is exposed to this risk for various financial instruments, for example by granting loans and receivables to customers, placing deposits, etc. The company’s maximum exposure to credit risk is limited to the carrying amount of following types of financial assets.

- cash and cash equivalents,

- trade receivables,

- loans & receivables carried at amortized cost, and

- deposits with banks

a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the company, and incorporates this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

A: Low B: Medium C: High

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.

Trade receivables

Company’s trade receivables are considered of high quality and accordingly no life time expected credit losses are recognized on such receivables.

Other financial assets measured at amortized cost

Other financial assets measured at amortized cost includes advances to employees. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

B) Liquidity risk

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. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Maturities of financial liabilities

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

C) Market risk

a) interest rate risk

The Company is not exposed to changes in market interest rates as all of the borrowings are at fixed rate of interest. Also the Company’s fixed deposits are carried at amortized cost and are fixed rate deposits. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

b) Price risk Exposure

The Company’s exposure to price risk arises from investments held and classified as FVTPL. To manage the price risk arising from investments in mutual funds and equity investment, the Company diversifies its portfolio of assets. Sensitivity

Below is the sensitivity of profit or loss and equity to changes in fair value of investments, assuming no change in other variables:

5. Capital management

The Company’ s capital management objectives are

- to ensure the Company’s ability to continue as a going concern

- to provide an adequate return to shareholders

Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure. This takes into account the subordination levels of the Company’s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

*The details of amounts outstanding to micro enterprises and small enterprises under the Micro, Small and Medium Enterprises Development Act (MSMED), 2006 are as per available information with the Company.

6. Segment information

The Company''s primary business segment is reflected based on principal business activities carried on by the Company i.e. Caustic soda and other chemicals, which as per Ind AS 108 on “Segment Reporting” as specified under Section 133 of Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) is considered to be the only operating segment. The Company is primarily operating in India which is considered as a single geographical segment.

7. Details of Corporate Social Responsibility (CSR) expenditure is as follows:

i) Gross amount required to be spent by the Company during the year (i.e. 2% of Average Net profits u/s 198 of Companies Act, 2013 of last three years): Rs.8.60 Lakhs (March 31, 2017: Rs. Nil)

8.First time adoption of Ind AS

Financial statements for the year ended 31 March 2018 are the first financial statements that the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (‘previous GAAP’).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on or after 31 March 2018. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2016 which is the Company’s date of transition to Ind AS. This note explains the key adjustments made by the Company in restating its previous GAAP financial statements, including the Balance Sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017 to Ind AS.

A. Optional exemption availed:

i. Deemed cost for property, plant and equipment:

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment are recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. Accordingly, the Company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value.

B. Mandatory exceptions: i. Estimates:

An entity’s estimates in accordance with IndASs at the date of transition to IndAS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made certain estimates in accordance with Ind AS at the date of transition which were not required under previous GAAP.

C. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

(i) Reconciliation of total equity as at 31 March 2017 and 1 April 2016

* The previous GAAP figures have been reclassified to confirm Ind AS presentation requirements for the purpose of this note.

Notes:

Note - 1: Fair valuation of investments

Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and realis-ability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year.

Note - 2: Remeasurement of defined benefit obligation

Under Ind AS, remeasurements i.e. actuarial gains and losses on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these measurements were forming part of the profit or loss for the year.

Note - 3: prior period adjustments

Under previous GAAP, expenses related to period other than current accounting period not captured earlier were shown as prior period expenses or income in the current period Statement of profit and loss. Under Ind AS, prior period adjustments are not allowed and expenses are to be adjusted in the year to which it pertains and balances are to be restated accordingly.

Note - 4: Excise duty

Under previous GAAP reporting framework, statutory taxes levied on sales were required to be netted off from the revenue. Under current reporting framework, excise duty are to be shown separately as expenses.

Note - 5: Deferred tax

Under previous GAAP, deferred tax was accounted using the income statement approach, on the timing differences between the taxable profit and accounting profits for the period. Under Ind AS, deferred tax is recognized following balance sheet approach on the temporary differences between the carrying amount of asset or liability in the balance sheet and its tax base. In addition, various transitional adjustments has also lead to recognition of deferred taxes on new temporary differences.

Note - 6: Deemed cost for property, plant and equipment:

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment are recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. Earlier the company was crediting an amount equal to increased depreciation on leasehold land which was revalued in earlier years to statement of profit and loss account but due to adoption of the exemption the revaluation reserve was transferred to retained earnings, due to which there was increase in depreciation.

B Commitments (net of advance):

Estimated amount of contracts remaining to be executed on capital account Rs. Nil, (Previous years: 31 March 2017: Rs. 1,299.55 lakhs and 1 April 2016 Rs. 276.63 lakhs).

9. Unclaimed amount in respect of debentures and excess share application money refundable Rs. 11.64 lakhs, (Previous years: 31 March 2017: 11.64 lakhs and 1 April 2016 11.64 lakhs) is required to be transferred to the “Investor education and protection fund” in terms of section 125 of the companies act, 2013. the company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

10. Authorization of financial statements

These financial statements for the year ended 31 March 2018 (including comparatives) were approved by the Board of Directors on 16 May 2018.

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Mar 31, 2016

1. Terms/rights attached to equity shares

The Company has only one class of share referred as equity share having at par value ''10/-. Each holder of equity share is entitled to same right in all respect.

2. Related PARTY TRANSACTIONS

In accordance with the Accounting Standard on “Related Party Disclosures” (AS-18), the disclosures in respect of Related Parties and Transactions with them , as identified and certified by the Management, are as follows:

3. Description and Name of Related Parties

Description of Relationship Name

(a) Individuals controlling voting power/exercising Mr. Ajay Virmani (Managing Director) significant influence and their relatives (Also Key Managerial Personnel)

Mr. Yuvraj Ahuja (Director)

Mr. Rakesh Ahuja (Director)

Mr. Alok Dhir (Director)

Mr. Mohit Ahuja (Relative of Director)

Ms. Srishti Dhir (Relative of Director)

Mr. Deepak Mathur (Director Tech.)

(b) Key management personnel and their relatives Included in (a) above

(c) Enterprises over which anyone in (a) and (b) exercises Cirrus Chemicals Pvt. Ltd. significant influence

Dhir & Dhir Associates Cirrus Infrastructure Pvt. Ltd.

4. Estimated amount of contracts remaining to be executed on capital account Rs.276.63 Lac (previous year NIL) (net of advances).

5. Balances of current assets, sundry loans and advances, other long term liabilities including security deposits and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof.

6. High Power Consumption Incentive of Rs. 235.64 Lac has been adjusted in the payment due to Jaipur Vidyut Vitran Nigam Limited (JVVNL). Out of the total incentive of Rs.235.64 Lac, Rs. 120.00 Lac is confirmed by JVVNL and the balance amount of Rs. 115.64 Lac has been accounted for on due basis, subject to confirmation from JVVNL.

7. Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the “Investor Education and Protection Fund” in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

8. As per the provision and definition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided.

9. The previous year figures have been regrouped, rearranged and reclassified to conform to this year’s classification wherever found necessary.

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Mar 31, 2015

1. Terms & Conditions of Secured Borrowings

*Term Loan from other parties (NSFC) .

2. Secured by way of First charge on all the moveable Fixed Assets and leasehold Project Land of the Company,

3. Secured by way of pledge of 26% fully paid up Equity Share of the company.

4. Secured by way of personal guarantee of Mr. Alok Dhir and Mr. Rakesh Ahuja, Promoters cum directors of the Company.

5. Repayable thirty monthly Installment of Rs.40.00 lao each payable from July 2015 along with Interest of 14.50%(also refer note B-7a)

6. Last installment payable on 31.12,2017.

b. Terms & Conditions of Unsecured Borrowings # Loans from Related Parties

1. All the loans have been taken from the directors on interest free basis to meet the working capital requirements of the Company.

All the loans are repayable within a period of 10 years from the date of receipt of loan on the terms as mutually decided between the parties. For detailed Related Party Disclosure, refer note no B.33 of Notes to Accounts.

## Other Loans and Advances comprises of the followings:

1. Loans from Body Corporates

(a) Loan Amount Rs 10.34 lacs

Terms & Conditions:- The above loan comprises of two loans obtained from two body corporates amounting to Rs. 10.34 lacs respectively. These loans are subject to confimations and the terms and conditions of these loans are not known to the company.

2. Loans from NBFC's

(a) Loan Amount Rs. 395 lacs

Terms & Conditions:-All the above loans have been taken during the current financial year from seven NBFC's , which carries rate of interest 9% p.a,, payable on quarterly basis. All the loans are repayable after 1 year from the date of taking the loan

3. Terms of Loan and Advances from others

Sales Tax Loan from RIlCO Rs. 40.46 Lac (Previous year Rs. 40,4S Lac is Interest free and guaranteed by the earlier Ex- Managing Directors - and Ex- Directors of the Company in their personal Capacity).

7. Leasehold Land at Alwar costing Rs. 17.32 lacs was revalued to Rs. 84.74 lacs as on 30.04.1984

8. Durinq the year, pursuant to the notification of Schedule U to the Companies Act, 2013 with effect from April 1,2014, the Company revised the estimated useful life of its assets to align the useful life with those specified in Schedule II.

9. Pursuant to the transition provisions prescribed in schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of the assets, net of residual value, where the remaining useful life of the assets was determined to be NIL as on April 1,2014, and has adjusted an amount of Rs 38.88 Lacs against the opening Surplus balance in the Statement of Profit and Loss under Reserves and Surplus.

10. The management based on external technical evaluation, reassessed the remaining useful life of assets primarily consisting of Plant & Machinery and Electrical Installations at its Alwar Plant Rajasthan. Accordingly, the useful lives of Plant & Machinery and Electrical Installations at its Alwar Plant, Rajasthan have been changed from the previous estimates.

11. Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt and hence not provided in the books of accounts are:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs.503.59 Lac including interest and penalty of Rs. 168.33 Lac (previous year Rs. 595.41 Lac including interest and penalty of Rs. 183.33 Lac).

(ii) In respect of Electricity Duty disputes pending with Judicial Authorities Rs.20.03 Lac (previous year Rs.20.03 Lac).

(iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs. 27.28 Lac (previous year Rs. 27.28 Lac).

(iv) In respect of Income Tax disputes pending with various Judicial Authorities Rs. 287.17 Lac (previous year Rs. 287.17 Lac).

(v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs.35.00 Lac (previous year Rs.35.00 Lac).

(vi) Disputed demand for late payment surcharge on electricity dues amounting Rs. 1226.12 Lac. However the company has paid Rs. 337.24 lac under protest on account of late payment surcharge (previous year Rs. 1226.12 Lac).

(vii) Disputed demand for uninterepted power cut by JWNL Rs. 11.72 Lac (previous year Rs. 11.72 Lac).

(b) Estimated amount of contracts remaining to be executed on capital account Rs. NIL Lac (previous year Rs. 728.66 Lac) (net of advances).

12. Balances of sundry debtors, loan and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof.

13. During the year, the Company has successfully completed the revamp of 107 TPD plant, Alwar, Rajasthan and has started the production from 10th February 2015.

14. High Power Consumption Incentive of Rs. 235.64 Lac has been adjusted in the payment due to Jaipur Vidyut Vitran Nigam Limited (JWNL). Out of the total incentive of Rs.235.64 Lac, Rs. 120.00 Lac is confirmed by JWNL and the balance amount of Rs. 115.64 Lac has been accounted for on due basis, subject to confirmation from JWNL.

15. Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

16. Employee benefits

a) Defined benefit plans: Gratuity

1) Provision towards gratuity is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account.

2) The charge on account of provision for gratuity has been included in 'Salaries, Wages, Allowances and other Benefits. .

3) Actuarial valuation of gratuity has been done with the following assumptions.

b) Defined benefit plans: Leave Encashment

1) Provision towards Leave Encashment is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account

2) The charge on account of provision for Leave Encashment has been included in Salaries, Wages, Allowances and other Benefits.

3) Actuarial valuation of Leave Encashment has been done with the following assumptions.

17. In terms of AS-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, information required to be disclosed in respect of related parties is given below:

(A) Name of related party and nature of related party's relationship where control exists:-

(i) Party having substantial interest in voting power and the power to direct, by statute or agreement, the financial and/or operating policies of the company, a) Shri Alok Dhir & Shri Rakesh Ahuja

(B) Name of related party and nature of related party's relationship having transaction with the company:-

(i) Key Managerial Personnel Relative of Key management Personnel

a) Shri Rakesh Ahuja (Non Executive Director) NIL

b) Shri Ajay Virmani (Managing Director) NIL

c) Shri Yuvraj Ahuja (Executive Director) NIL

(iii) Associate Entities over which key management personnel and person having substantial interest in voting power are able to exercise significant influence.

a) Dhir & Dhir Associates

b) Cirrus Chemicals Pvt. Ltd.

c) Transactions with related parties (consolidated) for the financial year 2014-15.

18. As per the provision and definition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided. .

19. Long Term Contracts

There are no long term contracts as on 31.03.2015 including derivative contracts for which there are any materia! forseeable losses.

20. The previous year figures have been regrouped, rearranged and reclassified, wherever found necessary.

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Mar 31, 2014

1 Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs.595.41 Lac including interest and penalty of Rs.183.33 Lac (previous year Rs. 595.41 Lac including interest and penalty of Rs.183.38 Lac).

(ii) In respect of Electricity Duty disputes pending with Judicial Authorities Rs.20.03 Lac (previous year Rs.20.03 Lac).

(iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs. 27.28 Lac (previous year Rs. 27.28 Lac).

(iv) In respect of Income Tax disputes pending with various Judicial Authorities Rs. 287.17 Lac (previous year Rs. 287.17 Lac).

(v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs.35.00 Lac (previous year Rs.35.00 Lac).

(vi) Disputed demand for late payment surcharge on electricity dues amounting Rs. 1226.12 Lac. However the company has paid Rs. 337.24 lac under protest on account of late payment surcharge (previous year Rs. 1226.12 Lac).

(vii) Disputed demand for incentive allowed in electricity bill by JVVNL Rs.68.86 Lac (previous year Rs. 68.86 lac) contested by the Company.

(viii) Disputed demand for uninterepted power cut by JVVNL Rs. 11.72 Lac (previous year Rs. 11.72 Lac).

(b) Estimated amount of contracts remaining to be executed on capital account Rs. 728.66 Lac (net of advances (previous year Rs. 955.54 Lac).

2 Balances of sundry debtors, loan and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof.

3 The Company has taken steps for revamping and refurbishing the plant for increasing efficiency and Capacity. Therefore the production has been stopped since Aug. 2011.

4 High Power Consumption Incentive of Rs. 235.64 Lac has been adjusted in the payment due to Jaipur Vidyut Vitran Nigam Limited (JVVNL). Out of the total incentive of Rs.235.64 Lac, Rs. 120.00 Lac is confirmed by JVVNL and the balance amount of Rs. 115.64 Lac has been accounted for on due basis, subject to confirmation from JVVNL.

5 Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

6 Based on the available information with the Company, the information related to Micro, Small and Medium Enterprises Development Act, 2006 is as under:

7 Employee benefits

a) Defined benefit plans: Gratuity

1) Provision towards gratuity is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account.

2) The charge on account of provision for gratuity has been included in ''Salaries, Wages, Allowances and other Benefits.

3) Actuarial valuation of gratuity has been done with the following assumptions.

b) Defined benefit plans: Leave Encashment

1) Provision towards Leave Encashment is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account.

2) The charge on account of provision for Leave Encashment has been included in Salaries, Wages, Allowances and other Benefits.

3) Actuarial valuation of Leave Encashment has been done with the following assumptions.

8 Earnings per share (in terms of Accounting Standard AS-20 issued by the Institute of Chartered Accountants of India).

9 As per the provision and definition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided.

10 Additional information as far as applicable pursuant to Part II of Schedule VI to the Companies Act, 1956:

11 The previous year figures have been reclassified to confirm to this year''s classification where ever necessary.

---

Mar 31, 2013

A.1 Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs.595.41 Lac including interest and penalty of Rs.183.33 Lac (previous year Rs. 641.27 Lac including interest and penalty of Rs.183.38 Lac). (ii) In respect of Electricity Duty disputes pending with Judicial Authorities

Rs.20.03 Lac (previous year Rs.20.03 Lac). (iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs.

27.28 Lac (previous year Rs. 27.38 Lac). (iv) In respect of Income Tax disputes pending with various Judicial

Authorities Rs. 287.17 Lac (previous year Rs. 287.17 Lac). v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs.35.00 Lac (previous year Rs.35.00 Lac). vi) In respect of demand from DGFT, relating to default of export obligations related to advance licence Rs. NIL (previous year Rs. 693.96 Lac). The matters has been remanded back by the appropriate authority.

vii) Disputed demand for late payment surcharge on electricity dues amounting Rs. 1226.12 Lac. However the company has paid Rs. 337.24 lac under protest on account of late payment surcharge (previous year Rs. 1226.12 Lac).

viii) Disputed demand for incentive allowed in electricity bill by JVVNL Rs.68.86 Lac (previous year Rs. 68.86 lac) contested by the Company.

ix) Disputed demand for uninterepted power cut by JVVNL Rs. 11.72 Lac (previous year Rs. 11.72 Lac).

(b) estimated amount of contracts remaining to be executed on capital account rs. 955.54 Lac (net of advances) (previous year rs. 25.09 Lac).

A.2 Balances of sundry debtors, loan and advances and current liabilities including sundry creditors are subject to confrmation and adjustments necessary upon reconciliation thereof.

A.3 The Company has taken steps for revamping and refurbishing the plant for increasing effciency and Capacity. Therefore the production has been stopped since Aug. 2011.

A.4 High Power Consumption Incentive of Rs. 235.64 Lac has been adjusted in the payment due to Jaipur Vidyut Vitran Nigam Limited (JVVNL). Out of the total incentive of Rs.235.64 Lac, Rs. 120.00 Lac is confrmed by JVVNL and the balance amount of Rs. 115.64 Lac has been accounted for on due basis, subject to confrmation from JVVNL.

A.5 Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

A.6 Based on the available information with the Company, the information related to Micro, Small and Medium Enterprises Development Act, 2006 is as under:

A.7 Employee benefts

(a) Defned beneft plans: Gratuity

(1) Provision towards gratuity is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the proft and loss account.

(2) The charge on account of provision for gratuity has been included in ''Salaries, Wages, Allowances and other Benefts.

(3) Actuarial valuation of gratuity has been done with the following assumptions.

A.8 In terms of AS-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, information required to be disclosed in respect of related parties is given below:

(A) Name of related party and nature of related party''s relationship where control exists:- (i) Party having substantial interest in voting power and the power to direct, by statute or agreement, the fnancial and/or operating policies of the company.

a) Shri Alok Dhir & Shri Rakesh Ahuja

(B) Name of related party and nature of related party''s relationship having transaction with the company:- (i) Key Managerial Personnel Relative of Key management

Personnel

a) Shri Rakesh Ahuja (Non Executive Director)

b) Shri Ajay Virmani (Managing Director)

c) Shri Yuvraj Ahuja (Executive Director)

(iii) Associate Entities over which key management personnel and person having substantial interest in voting power are able to exercise signifcant infuence.

a) Dhir & Dhir Associates

A.9 As per the provision and defnition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided.

A.10 The previous year fgures have been reclassifed to confrm to this year''s classifcation where ever necessary.

---

Mar 31, 2012

* Terms of Term Loan from Bank

1. Secured by way of Hypothecation of Car.

2. Repayable monthly installment of Rs.0.24 lac along with interest of 9.51% (also refer note B-8a)

3. Last installment payable on January 2015.

** Terms of Term Loan from Others

1. Secured by way of first charge over all Movable and Imovable assets of the company present and future.

2. Repayable ten half yearly installments payable from 1st July 2013 along with interest @12.50% p.a.

3. Last installment payable on January 2018.

*** Terms of Loan and Advances from others

Sales Tax Loan from RIICO Rs. 40.48 Lac (Previous year Rs. 40.48 Lac is Interest free and guaranteed by the earlier Ex- Managing Directors and Ex- Directors of the Company in their personal Capacity).

There is no specefic term and condition of Loan amounting to Rs. 15.34 Lac

A.1 Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs.641.27 Lac including interest and penalty of Rs.183.38 Lac (previous year Rs. 639.74 Lac including interest and penalty of Rs.183.38 Lac).

(ii) In respect of Electricity Duty disputes pending with Judicial Authorities Rs.20.03 Lac (previous year Rs.20.03 Lac).

(iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs. 27.38 Lac (previous year Rs. 27.38 Lac).

(iv) In respect of Income Tax disputes pending with various Judicial Authorities Rs. 287.17 Lac (previous year Rs. 287.17 Lac).

(v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs.35.00 Lac (previous year Rs.35.00 Lac).

(vi) In respect of demand from DGFT, relating to default of export obligations related to advance licence Rs.693.96 Lac (previous year Rs. 693.96 Lac), contested by the Company. Now the matters has been remanded back to the appropriate authority for de novo consideration.

(vii) Disputed demand for late payment surcharge on electricity dues amounting Rs. 1226.12 Lac. However the company has paid Rs. 337.24 lac under protest on account of late payment surcharge (previous year Rs. 602.35 Lac).

(viii) Disputed demand from Provident Fund Department pending with Judicial Authorities Rs.94.50 Lac (previous year Rs. 140.30 Lac).

(ix) Disputed demand for incentive allowed in electricity bill by JVVNL Rs.68.86 Lac (previous year Rs. 55.94 lac) contested by the Company.

(x) Disputed demand for uninterepted power cut by JVVNL Rs. 11.72 Lac (previous year Rs. 11.72 Lac).

(b) Estimated amount of contracts remaining to be executed on capital account Rs. 25.09 Lac (net of advances) (previous year Rs. 126.39 Lac).

A.2 Balances of sundry debtors, loan and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof.

A.3 The Company has taken steps for revamping and refurbishing the plant for increasing efficiency and Capacity. Therefore the production has been stopped since Aug. 2011.

A.4 During the year, the company has regrouped the figure of CWIP under the head capital advance to Short Term Loan & advances as per the requirement of Revised Schedule VI.

A.5 During the year, the company has reversed the liability of Rs.52.98 Lac payable to RIICO which has been settled and no longer required.

A.6 High Power Consumption Incentive of Rs. 235.64 Lac has been adjusted in the payment due to JVVNL. Out of the total incentive of Rs.235.64 Lac, Rs. 120.00 Lac is confirmed by JVVNL and the balance amount of Rs. 115.64 Lac has been accounted for on due basis, subject to confirmation from JVVNL.

A.7 Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

A.8 Employee benefits

a) Defined benefit plans: Gratuity

1) Provision towards gratuity is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account.

2) The charge on account of provision for gratuity has been included in 'Salaries, Wages, Allowances and other Benefits.

3) Actuarial valuation of gratuity has been done with the following assumptions.

b) Defined benefit plans: Leave Encashment

1) Provision towards Leave Encashment is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account.

2) The charge on account of provision for Leave Encashment has been included in Salaries, Wages, Allowances and other Benefits.

3) Actuarial valuation of Leave Encashment has been done with the following assumptions.

A.9 In terms of AS-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, information required to be disclosed in respect of related parties is given below:

(A) Name of related party and nature of related party's relationship where control exists:-

(i) Party having substantial interest in voting power and the power to direct, by statute or agreement, the financial and/or operating policies of the company.

a) Shri Alok Dhir, Shri Ashok Kumar & Shri Rakesh Ahuja

(B) Name of related party and nature of related party's relationship having transaction with the company:-

(i) Key Managerial Personnel Relative of Key management

Personnel

a) Shri Laxmi Paul Dhir (Chairman, Non Executive Director)

b) Shri Rakesh Ahuja (Non Executive Director)

c) Shri Ashok Kumar* Smt. Suman Kumar* (Managing Director)

d) Shri Ajay Virmani**

(Executive Director & CEO)

e) Shri Dhananjay Gautam*

(Whole time Director)

f) Shri Jeevesh Kumar (Whole time Director)

g) Shri Yuvraj Ahuja (Executive Director)

h) Shri Jagtar Singh*

(Whole time Director)

Note: * These managerial personal has now resigned from the company.

** Appointed as Managing Director w.e.f. 12th July 2012.

(iii) Associate Entities over which key management personnel and person having substantial interest in voting power are able to exercise significant influence.

a) Dhir & Dhir Associates

A.10 As per the provision and definition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided.

A.11 The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised schedule- VI to the Company Act. 1956. Consequent to the notification of revised schedule-VI under the Company Act 1956, the financial statements for the year end March31 2012 are prepared as per revised schedule VI. Accordingly, the previous year figures have also been reclassified to confirm to this year's classification. The adoption of revised schedule VI for previous year figures does not impact recognition and measurement principals followed for preparation of financial statements.

---

Mar 31, 2011

1. Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs.639.74 Lac including interest and penalty of Rs.183.38 Lac (previous year Rs. 709.34 Lac including interest and penalty of Rs. 239.46 Lac).

(ii) In respect of Electricity Duty disputes pending with Judicial Authorities Rs. 20.03 Lac (previous year Rs.20.03 Lac).

(iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs. 27.38 Lac (previous year Rs. 69.27 Lac).

(iv) In respect of Income Tax disputes pending with various Judicial Authorities Rs. 287.17 Lac (previous year Rs. 317.87 Lac).

(v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs.35.00 Lac (previous year Rs.35.00 Lac).

(vi) In respect of demand from DGFT, relating to default of export obligations related to advance license Rs. 693.96 Lac (previous year Rs. 693.96 Lac), contested by the Company.

(vii) Disputed demand for late payment surcharge on electricity dues amounting Rs. 939.59 Lac. However the company has paid Rs. 337.24 lac under protest during the year on account of late payment surcharge (previous year Rs. 515.28 Lac).

(viii) Disputed demand from Provident Fund Department pending with Judicial Authorities Rs.140.30 Lac (previous year Rs. 201.64 Lac).

(ix) Disputed demand for excess incentive allowed in electricity bill by JVVNL Rs. 55.94 Lac (previous year Rs. 55.94 lack) contested by the Company.

(x) Disputed demand for uninterested power cut by JVVNL Rs.

11.72Lac (previous year Rs. 11.72 Lac).

(b) Estimated amount of contracts remaining to be executed on capital account Rs. 126.39 Lac (net of advances) (previous year Rs. 26.39 Lac).

2. Balances of sundry debtors, loans and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof.

3. High Power Consumption Incentive of Rs. 235.64 Lac has been adjusted in the payment due to JVVNL. Out of the total incentive of Rs.235.64 Lac, Rs. 120.00 Lac is confirmed by JVVNL and the balance amount of Rs. 115.64 Lac has been accounted for on due basis, subject to confirmation from JVVNL.

4. Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

5. Particulars in respect of small scale industries have been furnished to the extent such parties have been identified on the basis of information available with the company. The small scale industries to whom the company owes any sum, which is outstanding as on 31st March 2011 for more than 30 days, are;

6. During the year, the Company has made investment in office space for enhancement of business activity which is included in CWIP.

7. The provision for obsolete / non - moving stores & Spares has been reduced to Rs. 10.56 lack on the basis of technical evaluation made by the management. Consequently, excess provision of Rs. 192.27 lack has been reversed during the year.

8. During the year, the company has realized Doubtful debts of Rs 300.57 Lac which was earlier termed as doubtful. Consequently, the provision for the same no longer required has been reversed.

9. The company has filed application to the Central Government for approval of Remuneration u/s 198, 269 & 309 of the Company's Act 1956 and the same is awaited.

10. In terms of AS-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, information required to be disclosed in respect of related parties is given below:

(A) Name of related party and nature of related party's relationship where control exists:-

(i) Party having substantial interest in voting power and the power to direct, by statute or agreement, the financial and/or operating policies of the company. a) Shri Alok Dhir & Shri Ashok Kumar

(B) Name of related party and nature of related party's relationship having transaction with the company:-

11. As per the provision and definition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided.

12. Additional information as far as applicable pursuant to Part II of Schedule VI to the Companies Act, 1956:

*Reflects internal consumption/adjustment # Value includes traded goods 52 MT of Rs. 10.92 Lac during the year (previous year 233 MT of Rs. 24.83 Lac)

13. The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

---

Mar 31, 2010

1. Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs. 709.34 Lac including interest and penalty of Rs. 239.46 Lac (previous year Rs. 708.98 Lac including interest and penalty of Rs. 239.46 Lac).

(ii) In respect of Electricity Duty disputes pending with Judicial Authorities Rs. 20.03 Lac (previous year Rs.44.57 Lac).

(iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs. 69.27 Lac (previous year Rs. 78.36 Lac).

(iv) In respect of Income Tax disputes pending with various Judicial Authorities Rs. 317.87 Lac (previous year Rs. 846.95 Lac).

(v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs. 35.00 Lac (previous year Rs.150.00 Lac).

(vi) In respect of demand from DGFT, relating to default of export obligations related to advance licence Rs. 693.96 Lac (previous year Rs. 102.91 Lacs ), contested by the Company.

(vii) Disputed demand for late payment surcharge on electricity dues amount Rs. 515.28 Lac (previous year Rs. 257.29 Lac) contested by the Company.

(viii) Disputed demand from Provident Fund Department pending with Judicial Authorities Rs. 201.64 Lac (previous year Rs. 209.64 Lac).

(ix) Disputed demand for excess incentive allowed in electricity bill by JVVNL Rs.55.94 Lac (previous year Rs. 55.39 lac ) contested by the Company.

(x) Disputed demand for uninterperted power cut by JVVNL Rs.11.72 Lac (previous year Rs. Nil lac ).

(b) Estimated amount of contracts remaining to be executed on capital account Rs. 26.39 Lac (net of advances) (previous year Rs. 31.13 Lac).

3. Other Liabilities include an amount of Rs. 15.00 Lac received from M/s Cirrus Chemicals Private Ltd. towards part consideration of Rs. 150.00 Lac for sale of Land.

4. Balances of sundry debtors, loans and advances and current liabilities including sundry creditors are subject to confrmation and adjustments necessary upon reconciliation thereof.

5. Other Current Assets includes an amount of Rs.176.53 Lac receivable from JVVNL on account of High Power Consumption Incentive, out of which Rs. 120.00 Lac is confrmed by them and the balance amount of Rs. 56.53 Lac has been account for on due basis, for which confrmation is awaited.

6. Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

7. During the year, the company has entered into an Agreement to Sell dated 25.03.2010 of its land at Modigarh, Village Galota, Tehsil Ramgarh, District Alwar, Rajasthan having area of 33 Bigha 19 Biswa to M/s Annalakshmi Trading Private Limited for a total consideration of Rs. 625 lac and possession has been handed over to the vendee in terms of Section 53A of Transfer of Property Act, 1882. As per the terms of agreement, the total consideration has to be paid by M/s Annalakshmi Trading Private Limited by 30th September 2010. The company has received Rs. 25 lac by March 2010. Subsequently, substantial payment has been received by the company. On the basis of Agreement to Sell and in view of the subsequent receipt of amounts and handing over the physical possession of the land to the vendee, the company has recorded the sale transaction as on 31st March 2010, in terms of section 53A of the Transfer of Property Act, 1882.

8. The company has started trading activities during the year 2009-10. In some of the Transactions, vender failed to deliver the goods as agreed. However, company was able to enforce the damages of Rs. 325 lac on them and has recorded the same in the books of accounts as other income on 31st March, 2010.

11. In terms of AS-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, information required to be disclosed in respect of related parties is given below:

(A) Name of related party and nature of related partys relationship where control exists:- (i) Party having substantial interest in voting power and the power to direct, by statute or agreement, the financial and/or operating policies of the company.

a) Shri Alok Dhir & Shri Ashok Kumar

(B) Name of related party and nature of related partys relationship having transaction with the company:-

(i) Key Managerial Personnel Relative of Key management Personnel

a) Shri Ashok Kumar Smt. Suman Kumar (Managing Director)

b) Shri Jeevesh Kumar (Whole time Director)

c) Shri Dhananjay Gautam (Whole time Director)

d) Shri Jagtar Singh (Whole time Director)

(ii) Party having signifcant infuence:

a) Shri Rakesh Ahuja

(iii) Associate Entities over which key management personnel and person having substantial interest in voting power are able to exercise signifcant infuence.

a) Cirrus Chemicals Pvt. Ltd.

b) Dhir & Dhir Associates

c) Shiva Consultants Pvt. Ltd.

d) Opus Reality Development Ltd.

15. As per the provision and defnition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided.

19. The previous years fgures have been reworked, regrouped, rearranged and reclassifed wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.