Notes to Accounts of Laffans Petrochemicals Ltd.

Mar 31, 2025

h Provision and Contingencies

The Company creates a provision when there exists a present obligation as a result of a past event that
probably requires an outflow of resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no
provision or disclosure is made.

i Earnings Per Share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the company

- by the weighted average number of equity shares outstanding during the financial year, adjusted
for bonus elements in equity shares issued during the year and excluding treasury shares

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share
to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential
equity shares, and

- the weighted average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

j Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balance.
k Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end
of financial year which are unpaid. Trade and other payables are presented as current liabilities unless
payment is not due within 12 months after the reporting period.

l Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be
contingent on future events and must be enforceable in the normal course of business and in the event of
default, insolvency or bankruptcy of the company or the counterparty.

m Contingent Liability

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

i) Sales Tax Liability of Rs. 97,33,201 for the year 2008-09 (P.Y. Rs.97,33,201) against which appeal
is pending

B. Terms and rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs.10/- per share.
Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company,
the equity shareholders will be entitled to receive remaining assets of the Company, after distribution of
all prefrential amounts. The distribution will be in proportion to the number of equity shares held by the
shareholders.

Note 30 - Title deeds of immovable properties held/not held in the name of company

The title deeds of the immovable properties of the company are held in the name of the company
Note 31 - Revaluation of Property Plant and Euipment

During the year the company has not revalued the Property Plant and Equipment

Note 32 - Loans or Advances in nature of loans granted to promoters, directors, KMPs and the related
parties (severally or jointly)

The company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and
related parties as defined under the Companies Act, 2013, either severally or jointly with any other person.

Note 33 - Capital-Work-in Progress (CWIP)

There is no Capital Work-in Progress for any project for the Company

**The company does not have any capital work in progess whose completion is overdue or has exceeded its
cost compared to its original plan.

Note 34 - Details of Benami Property held

There are no proceedings intiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the reules made thereunder

Note 35 - Wilful Defaulter

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

Note 36 - Relationship with Struck off Companies

The company does not have any relation with struck off companies.

Note 37 - Compliance with number of layers of companies

The Company do not have any subsidiary

Note 38 - Compliance with approved Scheme(s) of Arrangements

The company is not under any scheme of Arrangements as prescribed under sections 230 to 237 of the Companies
Act, 2013. Hence, there is no effect of such schemes in the books of accounts as at end of the year.

As per our report of even date For and on behalf of the Board of Directors of

For PARVeEn LOKWANI & CO. Laffans Petrochemicals Limited

Chartered Accountants
Firm Regn No. 143818W

CA PARVEEN LOKWANI Sandeep Seth Anisha Seth

Proprietor Director Director

M.No.167785 DIN No. 00316075 DIN No. 06867960

Vaishali Narendra Rathod Mahalinga Booba Kotian

Company Secretary CFO

M.No. A29205

Place:- Mumbai

Date: 23/05/2025 Place:- Mumbai

UDIN:- 25167785BMHTPT6884 Date: 23/05/2025

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Mar 31, 2015

1. Background:

Laffans Petrochemicals Limited is a listed Company and engaged in manufacturing of petrochemical products. In the year 2011, the Company had sold its manufacturing unit and thereafter engaged in the business of trading in chemicals and API and in commodities arbitrage.

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Mar 31, 2014

Background:

Laffans Petrochemicals Limited is a listed Company and engaged in manufacturing of petrochemical products. In the year 2011, the Company had sold its manufacturing unit and thereafter engaged in the business of trading in chemicals and API and in commodities arbitrage.

1 Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil (P.Y. Nil).

2 Sundry Debtors, Sundry Creditors & advances are subject to confirmation by the respective parties. Necessary Adjustments in account will be made in the year in which discrepancy, if any, may be noticed.

3 Sundry Loan & Advances and other assets are, in the opinion of management stated at the amount realizable in the ordinary course of business and provision for all known and determined liabilities are adequate and not in excess of the amounts reasonably required.

4 The Company had sold its manufacturing unit at Panoli to M/s Huntsman Performance Products (India) Pvt. Ltd, on 1st April, 2011 as per the Hon. High Court of Gujarat''s order dated 11th March 2011 and hence the Company has discontinued its manufacturing operation since then.

5 Previous year figures have been regrouped/ reclassified wherever necessary.

6 After discontinuing its manufacturing activity due to sale of manufacturing unit to M/s Huntsman Performance Products (India) Pvt Ltd., the Company is now dealing in only one segment i.e. trading in Commodities and Chemicals, hence no separate Segment reporting is given. The Investment activity has not been treated as separate segment as the same is temporary deployment of funds.

7 Figures in to bracket pertains to previous year.

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Mar 31, 2013

A) Contingent Liability:

i) Sales Tax Liability of Rs. 1,01,13,369 for the year 2008-09 (P.Y. Rs.Nil) against which appeal is pending ii) Income Tax Liability for A.Y. 2009-10 Rs.78,60,520/- (P.Y. Nil) Against which appeal is pending.

iii) Income Tax Liability for A.Y. 2008-09 Rs.7,69,746/- (P.Y. Nil) Against which appeal is pending.

iv) Income Tax Liability for A.Y. 2009-10 Rs.1,65,808/- (P.Y. Nil) Against which appeal is pending.

b) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.Nil (P.Y. Nil). ''. *''''**''

c) Sundry Debtors, Sundry Creditors & advances are subject to confirmation by the respective parties. Necessary Adjustments in account will be made in the year in which discrepancy, if any, may be noticed.

d) Sundry Loan & Advances and other assets are, in the opinion of management stated at the amount realizable in the ordinary course of business and provision for all known and determined liabilities are adequate and not in excess of the amounts reasonably required.

e) The Company has during the year in accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, recognized in the profit & Loss account a difference of Rs. 42,99,293/- between net, deferred tax asset of Rs.21,46,204/- as on 31st March 2013 and on the deferred tax liabilities of Rs.21,53,087/- as on 31st March 2012.

f) The Company has made provision for gratuity on estimate basis which is not in accordance with Accounting Standard 15 "Retirement Benefits". As per AS 15, Gratuity should have been provided on the basis of actuarial valuation.

g) The Company has sold its manufacturing unit at Panoli to M/s Huntsman Performance Products (India) Pvt. Ltd, on 1st April, 2011 as per the Hon. High Court of Gujarat''s order dated 11th March 2011 and hence the Company has discontinued its manufacturing operation since then. During the year the Company has received an additional amount on final settlement which is shown as Profit on sale of unit at Panoli in the Profit and Loss Account.

h) Previous year figures have been regrouped/ reclassified wherever necessary.

i) After discontinuing its manufacturing activity due to sale of manufacturing unit to M/s Huntsman Performance Products (India) Pvt Ltd., the Company is now dealing in only one segment i.e. logistic business, hence no separate Segment reporting is given. The Investment activity has not been treated as separate segment as the same is temporary deployment of funds.

j) Figures in to bracket pertains to previous year.

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Mar 31, 2012

A) Contingent Liability:

i) Excise Duty Rs. Nil(P.Y. 75,0007-) for which appeal is pending.

ii) Letter of Credit Rs.NiKPY8,80,404/-) and Letter of Guarantee Rs.Nil(P.Y 88,46,858/-). iii) Service Tax liability of Rs. Nil (P.Y. Rs. 57,29,279/-) against which appeal is pending iv) Sales Tax liability of Rs. Nil (P.Y. Rs.7,47,201 /-) against which appeal is pending v) Income Tax Liabilities for A.Y. 2009-10 Rs.2,15,817/- (P.Y. AY 2008-09 of Rs. 71,17,100/-) Against which appeal is pending.

b) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.Nil (P.Y. Nil).

c) Sundry Debtors, Sundry Creditors & advances are subject to confirmation by die respective parties. Neces- sary Adjustments in account will be made in the year in which discrepancy, if any, may be noticed.

i) Sundry Loan & Advances and other assets are, in die opinion of management stated at die amount realizable hi me ordinary course of business and provision for all known and determined liabilities are adequate and not in excess of die amounts reasonably required.

d) The Company has during me year in accordance widi Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, recognized in die profit & Loss account a difference of Rs. 4,11,27,958/- between net, deferred tax liabilities of Rs.21,53,087/- as on 31st March 2012 and on die deferred tax liabilities of Rs.4,32,81,045/- as on 31st March 2011.

e) The Company has made provision for gratuity on estimate basis which is not in accordance with Accounting Standard 15 "Retirement Benefits". As per AS 15, Gratuity should have been provided on the basis of actuarial valuation.

f) The Company has sold its manufacturing unit at Panoli to M/s Huntsman Performance Products (India) Pvt. Ltd, on 1 st April, 2011 as per the Hon. High Court order dated 11 th March 2011 and hence the Company has discontinued its operation since then.

g) Previous year figures have been regrouped/ reclassified wherever necessary.

h) Since the Company is dealing in one segment, No separate Segment reporting is given.

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Mar 31, 2010

A) Contingent Liability :

i) Excise Duty Rs. 75,000/- (P.Y. 75,000/-) for which appeal is pending.

ii) Letter of Credit Rs.5,98,49,693/- (P.Y.3,67,31,801/-) and Letter of Guarantee Rs.1,99,49,427/-(P.Y. 7,91,88,169/-).

iii) Service Tax liability of Rs. 16,33,802/- against which appeal is pending

iv) Sales Tax Liability of Rs. 40,38,043/- against which appeal is pending

b) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.Nil (P.Y. Nil).

c) Working Capital from Indian Overseas Bank, HDFC Bank and Punjab National Bank.

i) Secured against hypothecation of stocks of raw materials, packing materials , in process goods , finished goods , consumables , stores and spares, Book debts and other current assets to the extent of Rs.3000 lacs as fund based and non fund based Rs 2500 lacs secured against documentot title of goods and counter indemnity of the company.

ii) Personal Guarantee of Managing Director.

iii) Collateral Security by way of second charge on the fixed assets of the company.

d) Sales Tax Deferment Loan Account: Outstanding as on 31.03.2010 Rs. 374.87 Lacs

Under Sales Tax Diversification Scheme. Payable in equal annual installments of Rs. 93.72 Lacs each.

Payable in Next one Year Rs.93.72 Lacs on 31.05.2010. Secured by personal guarantee of the Managing Director.

e) LICENSED AND INSTALLED CAPACITIES AND PRODUCTION:

Installed Licensed Actual

Capacity Capacity Production

PA-MTs.

Ethoxylate & 55000 MT 55000 MT 30864.801

MT

Glycol Ethers /

Speciality

Chemicals

Previous Year 31000 MT 31000 MT 25,575.252

MT

** Above capacity includes production / blending capacities and varies with the product type

f) Sundry Debtors, Sundry Creditors & advances are subject to confirmation by the respective parties. Necessary Adjustments in account will be made in the year in which discrepancy, if any, may be noticed.

g) Sundry Loan & Advances and other assets are, in the opinion of management stated at the amount realizable in the ordinary course of business and provision for all known and determined liabilities are adequate and not in excess of the amounts reasonably required.

h) There are no delays in payments to Micro, Small and Medium enterprises as required to be disclosed under Micro, Small & Medium enterprises Act 2006. The total amount of Rs.4,10,868/- payable to Micro & Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

i) The Company has during the year in accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, recognized in the profit & Loss account a difference of Rs. 64,11,936/- between net, deferred tax liabilities of Rs.4,08,80,127/- as on 31s March 2010 and on the deferred tax liabilities of Rs.3,44,68,191/- as on 31s March 2009. Deferred tax Liabilities and assets are on account of the following timing differences

j) The Company has made provision for gratuity on estimate basis which is not in accordance with Accounting Standard 15 "Retirement Benefits". As per AS 15, Gratuity should have been provided on the basis of actuarial valuation.

k) Previous year figures have been regrouped/ reclassified wherever necessary.

l) Since the Company is dealing in one segment, No separate Segment reporting is given.

m) Figures into bracket pertains to previous year.