Notes to Accounts of Genus Prime Infra Ltd.

Mar 31, 2024

j. Provision

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Provisions are reviewed at each Balance Sheet date.

k. Other Litigation claims

Provision for litigation related obligation represents liabilities that are expected to materialise in respect of matters in appeal.

I. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in section (d) Revenue from contracts with customers.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Company''s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

The Company''s business model for managing financial assets refers to how it manages its financial assets in

order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Debt instruments at amortised cost

• Debt instruments at fair value through other comprehensive income (FVTOCI)

• Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Debt instrument at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss. This category generally applies to trade and other receivables.

Debt instrument at FVTOCI

A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the OCI. However, the Company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to statement of profit and loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the statement of profit and loss.

Equity investments:

All equity investments are measured at fair value except for equity investment in Associates which have been measured at cost. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in OCI subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If an equity instrument is classified as FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to statement of profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Equity instruments classified as FVTPL category are measured at fair value with all changes recognized in the statement of profit and loss.

Impairment of financial assets

In accordance with Ind AS 109, the Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

For trade receivables and contract assets, the company applies a simplified approach in calculating ECLs. Therefore, the company does not track changes in credit risk, but instead recognises a loss allowance based on life time ECLs at each reporting date. The company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:

a) the rights to receive cash flows from the asset have expired, or

b) The Company has transferred its rights to receive cash flows from the asset, and

(i) the Company has transferred substantially all the risks and rewards of the asset, or

(ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in statement of profit and loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

m. Derivative financial instruments

Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such as foreign currency denominated borrowings and foreign exchange forward contracts to manage some of its transaction exposures. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gain or losses arising from changes in the fair value of derivatives are taken directly to profit or loss. The foreign exchange forward are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposures of the underlying transactions.

n. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and shortterm deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

o. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period.

The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders by the weighted average number of Equity shares outstanding during the year plus the weighted average number of equity shares outstanding, for the effects of all dilutive potential shares.

p. Contingent Liability and contingent assets

A contingent liability is possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise the contingent liability but discloses its existence in the financial statements.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. The Company does not recognise the contingent assets but discloses its existence in the financial statements. Where an inflow of economic benefits are probable, the Company disclose a brief description of the nature of contingent assets at the end of the reporting period. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and the Company recognize such assets.

Contingent liabilities and Contingent assets are reviewed at each Balance Sheet date.

q. CSR expenditure

The Company has opted to charge its CSR expenditure incurred during the year to the statement of profit and loss.

1.3 Change in accounting policies and disclosures

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 01 April 2023. The Company applied for the first-time these amendments.

Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments have had an impact

on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s financial statements.

Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates. The amendments had no impact on the Company''s financial statements.

Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases. Since the Company didn''t have any lease contracts. The amendments had no impact on the Company''s financial statements.

1.4 Recent Accounting Developments - Standards Notified but not yet effective

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from 01 April 2024.

As per our report of even date

For Jethani & Associates For and on behalf of the board

Chartered Accountants ICAI Firm Regn. No. 010749C

CA Umesh Kumar Jethani Amit Agarwal Simple Agarwal

Partner WTD and CEO Director

Membership No. 400485 DIN: 00016133 DIN: 03072646

Hukam Singh Jeevan Kumar

Place: Jaipur CFO Company Secretary

Date: May 27, 2024

Place: Moradabad Date: May 27, 2024

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Mar 31, 2015

1. (a) Previous year figures have been reworked, rearranged, regrouped and reclassified, wherever considered necessary.

(b) Figures have been rounded off to the nearest Rupees.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3. In compliance of Accounting Standard 22 on 'Taxes on Income’ issued by the Institute of Chartered Accountants of India (ICAI), an amount of Rs NIL has been recognized as Deferred Tax Credit as at 31.03.2015 (Previous Year Rs. NIL Deferred tax Credit).

4. The amount owed to Small Scale Industries outstanding for more than 30 days as at 31st March 2015 and the sum exceeding Rs. 1 lacs in each case was Rs. NIL (Previous Year- Rs. NIL).

5. Contingent Liabilities:

Estimated amount of contracts remaining to be executed on Capital Account not provided for Rs.NIL

6. Related Party Disclosure:

Disclosure of Related Party transactions as per Accounting Standard 18 issued by ICAI:

(a) Name of related party and nature of related party relationship where control exist:

(i) Holding Company : Genus Paper & Boards Ltd.

(ii) Subsidiary Company : Sansar Infrastructure Private Limited

: Star Vanijya Private Limited

: Sunima Trading Private Limited

(b) Name of related party and nature of related party relationship other than those referred to in (a) above in transaction with the company :

(i) Joint Ventures etc : Nil

(ii) Key Management Personnel : Amit Agarwal (Whole Time Director)

(iii) Corporate entities over which key management personnel are able to exercise significant influence: Genus Apparels Ltd. & J.C.Textiles Pvt. Ltd.

7. In terms of Accounting Standard (AS-28) on 'Impairment of Asset’ issued by the Institute of Chartered Accountants of India (ICAI), the company during the year carried out an exercise of identifying the assets that may have been impaired in accordance with the said Accounting Standard. However, no such asset has been discarded during the year.

9. Financial information of Subsidiary Companies as required by the first proviso to section 129 (3) read with rule 5 of companies (Accounts) rules 2014 of the Companies Act, 2013 for the year ended 31-03-2015 are separately enclosed.

10. It has also no import, expenditure/earning in foreign currency during the year or during the Previous year.

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Mar 31, 2014

1. (a) Previous year figures have been reworked, rearranged, regrouped and reclassified, wherever considered necessary. (b) Figures have been rounded off to the nearest Rupees,

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary, Computation of Net Profit in accordance with section 309(5) of the Companies Actr 1956 isnot given, as Company hasnotpaid any commission to any of its Directors.

3. In compliance of Accounting Standard 22 on Taxes on Income1 issued by the Institute of Chartered Accountants of India (ICAI): an amount of Rs NIL has been recognized as DeferredTax Creditas at 31,03.2014 (Previous Year Rs. 0.00 Deferred tax Credit).

4. The amount owed to Small Scale Industries outstanding for more than 30 days as at 31st March 2014 and the sum exceeding Rs, 1 lacs in each case was Rs. NIL (Previous Year- R.s. NIL).

5. Contingent Liabilities:

Estimated amount of contracts remaining to be executed on Capital Account not provided forRs.NIL

(a.) Related Party Disclosure:

Disclosure of Related Party transactions as per Accounting Standard 18 issued by ICAI;

(a) Name of related party and nature of related party relationship where control exist:

(1) Holding Company : Genus Paper & Boards Ltd.

(ii) Subsidiary Company : Sansar Infrastructure Private Limited : Star Vanijya Private Limited ; Sunima Trading Private Limited

(b) Name of related party and nature of related party relationship other than those referred to in (a) above in transaction with the company:

(i) Joint Ventures etc : Nil

(ii) Key Management Personnel ; Amit Agarwal (Whole Time Director)

RameshwarPareek (Director) (iii) Corporate entities over which key management personnel arc able to exercise significant influence: Genus Apparels Ltd. & J.C.Textiles Pvt, Ltd.

(c) Transactions with related parties the penod 01-04-2013to31-03-2014:

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Mar 31, 2013

1. a. Previous year figures have been reworked, rearranged, regrouped and reclassified, wherever considered necessary.

b. Figures have been rounded off to the nearest Rupees.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3. Pursuant to the Scheme of Amalgamation/ Merger approved by the Hon''ble High Court, Himachal Pradesh at Shimla vide its order dated 04-03-2005 in the matter of an application made under section 391(2) of the Companies Act 1956, M/s Gulshan Chemcarb Limited (amalgamating company) has been merged with the Company in terms of the provisions of section 391 & 394 of the Companies Act with effect from the appointed date being April 1, 2004. The approved scheme of amalgamation provides that with effect from the appointed date, all asset, properties, rights, claims, interests whatsoever and liabilities, reserves, contracts etc of the above amalgamating company would stand transferred and vested into Gulshan Chemfill Ltd (the transferee company). In terms of the scheme, Gulshan Chemfill Ltd has allotted a total of 78,61,200/- equity shares of Rs. 2/- each fully paid up of the Company to the shareholders of M/s Gulshan Chemcarb Ltd towards the consideration of the above amalgamation. The arrangement being in the nature of amalgamations have been accounted for under the ''pooling of interest'' method as prescribed under the Accounting Standard of ICAI. The accounting policies of the amalgamating company are in consonance with the accounting policies adopted by the transferee company. The Capital Reserves created upon such amalgamation has been recorded in the books of Gulshan Chemfill Ltd.

Computation of Net Profit in accordance with section 309(5) of the Companies Act, 1956 is not given, as Company has not paid any commission to any of its Directors.

4. In compliance of Accounting Standard 22 on ''Taxes on Income'' issued by the Institute of Chartered Accountants of India (ICAI), an amount of Rs. NIL has been recognized as Deferred Tax Credit as at 31.03.2013 (Previous Year Rs. 0.00 Deferred tax Credit).

5. The amount owed to Small Scale Industries outstanding for more than 30 days as at 31st March 2013 and the sum exceeding Rs. 1 lacs in each case was Rs. NIL (Previous Year- Rs. NIL).

6. Contingent Liabilities:

Estimated amount of contracts remaining to be executed on Capital Account not provided for Rs. NIL

7. Related Party Disclosure:

Disclosure of Related Party transactions as per Accounting Standard 18 issued by ICAI:

(a) Name of related party and nature of related party relationship where control exist:

(i) Holding Company : Genus Paper Products Limited

(ii) Subsidiary Company: Sansar Infrastructure Private Limited Star Vanijya Private Limited Sunima Trading Private Limited

(b) Name of related party and nature of related party relationship other than those referred to in (a) above in transaction with the Company :

(i) Joint Ventures etc : Nil

(ii) Key Management Personnel :

Mr. Amit Agarwal (Whole Time Director) Mr. Rameshwar Pareek (Chairman)

(iii) Corporate entities over which key management personnel are able to exercise significant influence: Genus Apparels Ltd. & J. C Textiles Pvt. Ltd.

(a) In terms of Accounting Standard (AS-28) on ''Impairment of Asset'' issued by the Institute of Chartered Accountants of India (ICAI), the Company during the year carried out an exercise of identifying the assets that may have been impaired in accordance with the said Accounting Standard. However, no such asset has been discarded during the year.

(b) The Additional information as required under 3 & 4 of Part II of Schedule VI of the Companies Act, 1956 are not applicable at present on Company as the Company has no Manufacturing facilities /Installed Capacity for any product and hence not carrying out production, not making sale or Purchase and do not held stocks. It has also no import expenditure/earning in foreign currency during the year or during the, previous year.

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Mar 31, 2012

1. a. Previous year figures have been reworked, rearranged, regrouped and reclassified, wherever considered necessary.

b. Figures have been rounded off to the nearest Rupees.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3. Pursuant to the Scheme of Amalgamation/ Merger approved by the Hon'ble High Court, Himachal Pradesh at Shimla vide its order dated 04-03-2005 in the matter of an application made under section 391(2) of the Companies Act 1956, M/s Gulshan Chemcarb Limited (amalgamating company) has been merged with the Company in terms of the provisions of section 391 & 394 of the Companies Act with effect from the appointed date being April 1, 2004.

The approved scheme of amalgamation provides that with effect from the appointed date, all asset, properties, rights, claims, interests whatsoever and liabilities, reserves, contracts etc of the above amalgamating company would stand transferred and vested into Gulshan Chemfill Ltd (the transferee company). In terms of the scheme, Gulshan Chemfill Ltd has allotted a total of 78,61,200/- equity shares of Rs. 2/- each fully paid up of the Company to the shareholders of M/s Gulshan Chemcarb Ltd towards the consideration of the above amalgamation. The arrangement being in the nature of amalgamations have been accounted for under the ‘pooling of interest' method as prescribed under the Accounting Standard of ICAI. The accounting policies of the amalgamating company are in consonance with the accounting policies adopted by the transferee company. The Capital Reserves created upon such amalgamation has been recorded in the books of Gulshan Chemfill Ltd.

In terms of Accounting Standard, the above Capital Reserve forms part of the Reserves & Surplus of the transferee company.

4. In compliance of Accounting Standard 22 on ‘Taxes on Income' issued by the Institute of Chartered Accountants of India (ICAI), an amount of Rs. NIL has been recognized as Deferred Tax Credit as at 31.03.2012 (Previous Year Rs. 65,885.00 Deferred tax Credit).

5. The amount owed to Small Scale Industries outstanding for more than 30 days as at 31st March 2012 and the sum exceeding Rs. 1 lacs in each case was Rs. NIL (Previous Year- Rs. NIL).

6. Contingent Liabilities:

Estimated amount of contracts remaining to be executed on Capital Account not provided for Rs. NIL

7. Related Party Disclosure:

Disclosure of Related Party transactions as per Accounting Standard 18 issued by ICAI:

(a) Name of related party and nature of related party relationship where control exist:

(i) Holding Company : Genus Paper Products Limited

(ii) Subsidiary Company : Nil

(b) Name of related party and nature of related party relationship other than those referred to in (a) above in transaction with the Company :

(i) Joint Ventures etc : Nil

(ii) Key Management Personnel :

- Mr. Amit Agarwal (Whole Time Director)

- Mr. Rameshwar Pareek (Chairman)

(iii) Corporate entities over which key management personnel are able to exercise significant influence:

- Genus Apparels Ltd. & J. C Textiles Pvt. Ltd.

(a) In terms of Accounting Standard (AS-28) on ‘Impairment of Asset' issued by the Institute of Chartered Accountants of India (ICAI), the Company during the year carried out an exercise of identifying the assets that may have been impaired in accordance with the said Accounting Standard. However, no such asset has been discarded during the year.

(b) The Additional information as required under 3 & 4 of Part II of Schedule VI of the Companies Act, 1956 are not applicable at present on Company as the Company have no Manufacturing facilities /Installed Capacity for any product and hence not carrying out production, not making sale or Purchase and do not held stocks.

It has also no import, expenditure/earning in foreign currency during the year or during the Previous year.

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Mar 31, 2011

1. (a) Previous year figures have been reworked, rearranged, regrouped and reclassified, wherever considered necessary.

(b) Figures have been rounded off to the nearest Rupees.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3. Pursuant to the Scheme of Amalgamation/ Merger approved by the Hon'ble High Court, Himachal Pradesh at Shimla vide its order dated 04-03-2005 in the matter of an application made under section 391(2) of the Companies Act 1956, M/s Gulshan Chemcarb Limited (amalgamating company) has been merged with the Company in terms of the provisions of section 391 & 394 of the Companies Act with effect from the appointed date being April 1, 2004.

The approved scheme of amalgamation provides that with effect from the appointed date, all asset, properties, rights, claims, interests whatsoever and liabilities, reserves, contracts etc of the above amalgamating company would stand transferred and vested into Gulshan Chemfill Ltd (the transferee company). In terms of the scheme, Gulshan Chemfill Ltd has allotted a total of 78,61,200/- equity shares of Rs. 2/- each fully paid up of the Company to the shareholders of M/s Gulshan Chemcarb Ltd towards the consideration of the above amalgamation. The arrangement being in the nature of amalgamations have been accounted for under the 'pooling of interest' method as prescribed under the Accounting Standard of ICAI. The accounting policies of the amalgamating company are in consonance with the accounting policies adopted by the transferee company. The Capital Reserves created upon such amalgamation has been recorded in the books of Gulshan Chemfill Ltd.

The details of the asset and liabilities and transfer consideration of Gulshan Chemcarb Limited (Transferor Company) and resultant Reserve are as under:

Computation of Net Profit in accordance with section 309(5) of the Companies Act, 1956 is not given, as Company has not paid any commission to any of its Directors.

4. In compliance of Accounting Standard 22 on 'Taxes on Income' issued by the Institute of Chartered Accountants of India (ICAI), an amount of Rs. 65,885 has been recognized as Deferred Tax Credit as at 31.03.2011 (Previous Year Rs. 1,43,264 Deferred tax Credit).

5. Miscellaneous Expenditure to the extent not written off or adjusted Rs. 58,439 (Previous Year Rs. 63,300/-)

6. The amount owed to Small Scale Industries outstanding for more than 30 days as at 31st March 2011 and the sum exceeding Rs. 1 lacs in each case was Rs. NIL (Previous Year- Rs. NIL).

7. Contingent Liabilities:

Estimated amount of contracts remaining to be executed on Capital Account not provided for Rs.NIL

8. Related Party Disclosure:

Disclosure of Related Party transactions as per Accounting Standard 18 issued by ICAI:

(a) Name of related party and nature of related party relationship where control exist: (i) Holding Company : Genus Paper Products Limited (ii) Subsidiary Company : Nil

(b) Name of related party and nature of related party relationship other than those referred to in (a) above in transaction with the Company :

(i) Joint Ventures etc : Nil

(ii) Key Management Personnel : Dr. C. K. Jain (Chairman and Promoter Director)

Mr. Rameshwar Pareek (Whole Time Director)

(iii) Corporate entities over which key management personnel are able to exercise significant influence: Gulshan Polyols Ltd., Gulshan Holdings Pvt. Ltd., and Gulshan Specialty Minerals Limited, Gulshan Lamee Pack Pvt. Ltd., Genus Power Infrastructures Limited,

(c) Transactions with related parties for the period 01-04-2010 to 31-03-2011:

(a) In terms of Accounting Standard (AS-28) on 'Impairment of Asset' issued by the Institute of Chartered Accountants of India (ICAI), the Company during the year carried out an exercise of identifying the assets that may have been impaired in accordance with the said Accounting Standard. However, no such asset has been discarded during the year.

(b) The Additional information as required under 3 & 4 of Part II of Schedule VI of the Companies Act, 1956 are not applicable at present on Company as the Company has no Manufacturing facilities /Installed Capacity for any product and hence not carrying out production, not making sale or Purchase and do not held stocks.

It has also no import, expenditure/earning in foreign currency during the year or during the Previous year.

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Mar 31, 2010

1. (a) Previous year figures have been reworked, rearranged, regrouped and reclassified, wherever considered necessary.

(b) Figures have been rounded off to the nearest Rupees.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3. Pursuant to the Scheme of Amalgamation/ Merger approved by the Honble High Court, Himachal Pradesh at Shimla vide its order dated 04-03-2005 in the matter of an application made under section 391(2) of the Companies Act 1956, M/s Gulshan Chemcarb Limited (amalgamating company) has been merged with the company in terms of the provisions of section 391 & 394 of the Companies Act with effect from the appointed date being April 1, 2004.

The approved scheme of amalgamation provides that with effect from the appointed date, all assets, properties, rights, claims, interests whatsoever and liabilities, reserves, contracts etc of the above amalgamating company would stand transferred and vested into Gulshan Chemfill Ltd (the transferee company). In terms of the scheme, Gulshan Chemfill Ltd has allotted a total of 78,61,200/- equity shares of Rs. 21- each fully paid up of the Company to the shareholders of M/s Gulshan Chemcarb Ltd towards the consideration of the above amalgamation. The arrangement being in the nature of amalgamations have been accounted for under the pooling of interest method as prescribed under the Accounting Standard of 1CAI. The accounting policies of the amalgamating Company are in consonance with the accounting policies adopted by the transferee Company. The Capital Reserves created upon such amalgamation has been recorded in the books of Gulshan Chemfill Ltd.

The details of the asset and liabilities and transfer consideration of Gulshan Chemcarb Limited (Transfer or Company) and resultant Reserve are as under:

4. The Unsecured Loan in the nature of Inter Corporate Deposits amounting to Rs NIL (Previous Year Rs. 1,64,00,000have been taken during the yearfrom the Companies under the same management. The maximum amount outstanding was Rs 1,64,00,000 (Previous Year Rs. 1,64,00,000/-)

5. In compliance of Accounting Standard 22 on Taxes on Income issued by the Institute of Chartered Accountants of India (ICAI), an amount of Rs 53,78,250 has been recognized as Deferred Tax Assets as at 31.03.2010 (Previous Year Rs. Rs 52,34,986 as Deferred Tax Assets).

6. Miscellaneous Expenditure to the extent not written off or adjusted Rs. 63,300 /- (Previous Year Rs. 68,161/-)

7. The amount owed to Small Scale Industries outstanding for more than 45 days as at 31st March 2009 and the sum exceeding Rs. 1 lacs in each case was Rs. NIL (Previous Year- Rs. NIL).

8. Contingent Liabilities:

Estimated amount of contracts remaining to be executed on Capital Account not provided for Rs.NIL

9. Related Party Disclosure:

Disclosure of Related Party transactions as per Accounting Standard 18 issued by ICAI:

(a) Name of related party and nature of related party relationship where control exist:

i) Holding Company Nil

ii) Subsidiary Company Nil

(b) Name of related party and nature of related party relationship other than those referred to in (a) above in transaction with the Company:

i) Joint Ventures etc Nil

ii) Key Management Personnel : *Mr. Rameshwar Pareek, Executive Director

Dr. C.K. Jain (Chairman and Promoter Director)

Mrs. Mridula Jain (Promoter Director)

iii) Corporate entities over which key management personnel are able to exercise significant influence: Gulshan Polyols Ltd., Gulshan Speciality Minerals Private Limited, Gulshan Lamee Pack Pvt. Ltd. and Gulshan Holdings Pvt. Ltd.

* Mr. Rameshwar Pareek has been appointed as a director of the Company w.e.f. 1st June 2009.

(a) In terms of Accounting Standard (AS-28) on Impairment of Asset issued by the Institute of Chartered Accountants of India (ICAI), the company during the year carried out an exercise of identifying the assets that may have been impaired in accordance with the said Accounting Standard. However, no such asset has been discarded during the year.

(c) The Additional information as required under 3 & 4 of Part II of Schedule VI of the Companies Act, 1956 are Not Applicable at present on company as the company have no manufacturing facilities / installed capacity for any product and hence not carrying out production, not making Sale or Purchse and do not hold stocks.

It has also no import, expenditure / earning in foreign currency during the year or during the Previous Year.

---

Mar 31, 2009

1. (a) Previous year figures have been reworked, rearranged, regrouped and reclassified, wherever considered necessary.

(b) Figures have been rounded off to the nearest Rupees.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3. Pursuant to the Scheme of Amalgamation/ Merger approved by the Honble High Court, Himachal Pradesh at Shimla vide its order dated 04-03-2005 in the matter of an application made under section 391(2) of the Companies Act 1956, M/s Gulshan Chemcarb Limited (amalgamating company) has been merged with the company in terms of the provisions of section 391 & 394 of the Companies Act with effect from the appointed date being April 1, 2004.

The approved scheme of amalgamation provides that with effect from the appointed date, all assets, properties, rights, claims, interests whatsoever and liabilities, reserves, contracts etc of the above amalgamating company would stand transferred and vested into Gulshan Chemfill Ltd (the transferee company). In terms of the scheme, Gulshan Chemfill Ltd has allotted a total of 78,61,200/- equity shares of Rs. 2/- each fully paid up of the Company to the shareholders of M/s Gulshan Chemcarb Ltd towards the consideration of the above amalgamation. The arrangement being in the nature of amalgamations have been accounted for under the pooling of interest method as prescribed under the Accounting Standard of ICAI. The accounting policies of the amalgamating Company are in consonance with the accounting policies adopted by the transferee Company. The Capital Reserves created upon such amalgamation has been recorded in the books of Gulshan Chemfill Ltd.

4. The Unsecured Loan in the nature of Inter Corporate Deposits amounting to Rs NIL (Previous Year Rs. 2,75,41,760 have been taken during the year from the Companies under the same management. The maximum amount outstanding was Rs NIL (Previous Year Rs. 5,76,91,760/-)

5. In compliance of Accounting Standard 22 on Taxes on Income issued by the Institute of Chartered Accountants of India (ICAI), an amount of Rs 58,89,530 has been recognized as Deferred Tax Assets as at 31.03.2009 (Previous Year Rs. 44,286 as Deferred Tax Liability).

6. Miscellaneous Expenditure to the extent not written off or adjusted Rs. 68,161 (Previous Year Rs. 73,031/-)

7. The amount owed to Small Scale Industries outstanding for more than 45 days as at 31st March 2009 and the sum exceeding Rs. 1 lacs in each case was Rs. NIL (Previous Year- Rs. NIL)..

8. Contingent Liabilities:

Estimated amount of contracts remaining to be executed on Capital Account not provided for Rs.NIL

9. Related Party Disclosure:

Disclosure of Related Party transactions as per Accounting Standard 18 issued by ICAI:

(a) Name of related party and nature of related party relationship where control exist:

(i) Holding Company : Nil

(ii) Subsidiary Company : Nil

(b) Name of related party and nature of related party relationship other than those referred to in (a) above in transaction with the Company:

(i) Joint Ventures etc : N/7

(ii) Key Management Personnel : *Mr. S.KTiwari, Executive Director

Dr. C.K. Jain (Chairman and Promoter

Director)

Mrs. Mridula Jain (Promoter Director)

(iii) Corporate entities over which key management personnel are able to exercise significant influence: Gulshan Polyols Ltd., Gulshan Speciality Minerals Private Limited, Gulshan Lamee Pack Pvt. Ltd. and Gulshan Holdings Pvt. Ltd.

*Since Mr. S.K. Tiwari has resigned from the directorship of the Company w.e.f. 21st May, 2008.

(a) In terms of Accounting Standard (AS-28) on Impairment of Asset issued by the Institute of Chartered Accountants of India ( ), the company during the year carried out an exercise of identifying the assets that may have been impaired in accordance with the said Accounting Standard. However, no such asset has been discarded during the year.