Notes to Accounts of Mitshi India Ltd.

Mar 31, 2024

B.8 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it
is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of
the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at
the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a
receivable is recognised as an asset if it is virtually certain that reimbursements will be received and the amount of the
receivable can be measured reliably.

Contingent liability is disclosed for possible obligations which will be confirmed only by future events not within the control of
the Company or present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent Assets are not recognized since this may result in the recognition of income that may never be realized.

B.9 Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of
the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair
value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets:

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way
purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace.

Classification of financial assets

The financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of
financial assets are added to the fair value of the financial assets on initial recognition.

After initial recognition:

(i) Financial assets (other than investments) are subsequently measured at amortised cost using the effective interest
method.

Effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest
income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
receipts (including all fees and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where
appropriate, a shorter period, to the net carrying amount on initial recognition.

Investments in debt instruments that meet the following conditions are subsequently measured at amortised cost:

• The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;
and

• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments on principal
and interest on the principal amount outstanding.

Income on such debt instruments is recognised in profit or loss and is included in the “Other Income”.

The Company has not designated any debt instruments as fair value through other comprehensive income.

(ii) Financial assets (i.e. investments in instruments other than equity of subsidiaries) are subsequently measured at fair
value.

Such financial assets are measured at fair value at the end of each reporting period, with any gains (e.g. any dividend
or interest earned on the financial asset) or losses arising on re-measurement recognised in profit or loss and included
in the “Other Income”.

Investments in equity instruments of subsidiaries

The Company measures its investments in equity instruments of subsidiaries at cost in accordance with Ind AS 27. At
transition date, the Company has elected to continue with the carrying value of such investments measured as per the
previous GAAP and use such carrying value as its deemed cost.

Impairment of financial assets:

A financial asset is regarded as credit impaired when one or more events that may have a detrimental effect on estimated
future cash flows of the asset have occurred. The Company applies the expected credit loss model for recognising
impairment loss on financial assets (i.e. the shortfall between the contractual cash flows that are due and all the cash flows
(discounted) that the Company expects to receive).

De-recognition of financial assets:

The Company de-recognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the
Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may
have to pay. On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the
sum of the consideration received and receivable is recognised in the Statement of profit and loss.

Financial liabilities and equity instruments

Equity instruments

Equity instruments issued by the Company are classified as equity in accordance with the substance and the definitions of
an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method. The carrying

amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective
interest method. Interest expense that is not capitalised as part of costs of an asset is included in the “Finance Costs”.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter
period, to the net carrying amount on initial recognition.

De-recognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company''s obligations are discharged,
cancelled or have expired. An exchange between with a lender of debt instruments with substantially different terms is
accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a
substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of
the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial
liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable is recognised in profit or loss.

B. 10 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares
outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

C. Critical Accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with Ind AS requires the Company''s Management to make
judgments, estimates and assumptions about the carrying amounts of assets and liabilities recognised in the financial
statements that are not readily apparent from other sources. The judgements, estimates and associated assumptions are
based on historical experience and other factors including estimation of effects of uncertain future events that are
considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
(accounted on a prospective basis) and recognised in the period in which the estimate is revised if the revision affects only
that period, or in the period of the revision and future periods of the revision affects both current and future periods.

The following are the key estimates that have been made by the Management in the process of applying the accounting
policies:

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value are measured using valuation techniques. The inputs to these models are
taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in
establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.
Changes in assumptions relating to these factors could affect the reported fair value of financial instruments.

Allowance for doubtful trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for
estimated irrecoverable amounts.

Estimated irrecoverable amounts are derived based on a provision matrix which takes into account various factors such as
customer specific risks, geographical region, product type, currency fluctuation risk, repatriation policy of the country,
country specific economic risks, customer rating, and type of customer, etc.

Individual trade receivables are written off when the management deems them not to be collectable.

Note 3.2 : Financial Risk Management

In course of its business, the Company is exposed to certain financial risks that could have significant influence on the
Company''s business and operational/ financial performance. These include market risk (including currency risk, interest rate risk
and price risk), credit risk and liquidity risk

The Board of Directors reviews and approves risk management framework and policies for managing these risks and monitors
suitable mitigating actions taken by the management to minimise potential adverse effects and achieve greater predictability to
earnings. In line with the overall risk management framework and policies, the management monitors and manages risk
exposure through an analysis of degree and magnitude of risks.

(i) Market Risk

Market risk is the risk that changes in market prices, liquidity and other factors that could have an adverse effect on realizable fair
values or future cash flows to the Company. The Company''s activities expose it primarily to the financial risks of changes in
foreign currency exchange rates and interest rates as future specific market changes cannot be normally predicted with
reasonable accuracy.

)

(a) Foreign Currency Risk Management: (R_s. In Lakhs)

The Company undertakes transactions denominated in foreign currencies and thus it is exposed to exchange rate fluctuations.
The Company actively manages its currency rate exposures, arising from transactions entered and denominated in foreign
currencies, and uses derivative instruments such as foreign currency forward contracts to mitigate the risks from such
exposures. The company does not use derivative instruments to hedge risk exposure.

(b) Interest Rate Risk Management:

The Company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating interest rates. The
Company''s risk management activities are subject to management, direction and control under the framework of risk
management policy of interest rate risk. The management ensures risk governance framework for the company through
appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the
Company''s policies and risk objectives

For the company''s total borrowings, the analysis is prepared assuming that amount of the liability outstanding at the end of the
reporting period was outstanding for the whole year.

(ii) Credit Risk

Credit risk refers to the risk that a counterparty or customer will default on its obligation resulting in a loss to the company.
Financial instruments that are subject to credit credit risk principally consist of Loans, Trade and Other Receivables, Cash and
Cash Equivalents, I nvestments and Other Financial Assets.

Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of
risk. The Company''s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of
transactions concluded is spread amongst approved counterparties.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. The
Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several
jurisdictions and operate in independent markets. Ongoing credit evaluation is performed on the financial condition of accounts
receivable and, where appropriate. The average credit period are generally in the range of 14 days to 90 days. Credit limits are
established for all customers based on internal rating criteria.

(iii) Liquidity Risk

The Company monitors its risk of shortage of funds through using a liquidity planning process that encompasses an analysis
of projected cash inflow and outflow.

The Company''s objective is to maintain a balance between continuity of funding and flexibility largely through cash flow
generation from its operating activities and the use of bank loans. The Company assessed the concentration of risk with respect
to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

4. Additional Regulatory Information

a) The Company does not have any benami property where any proceedings have been initiated on or are pending against
the Company for holding benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and rules
made thereunder.

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

c) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.

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

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by (fTsP.rlibL^tfi s)
the Com pany (Ultimate Beneficiary) or

- provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

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

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

- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

f) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income tax Act, 1961.

g) The Company has not traded or invested in crypto currency or virtual currency during the year under review.

h) There are no charges or satisfaction which are yet to be registered with Registrar of Companies beyond the statutory
period.

i) The Company has no transactions with the Companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956.

---

Mar 31, 2018

1. The debit and credit balances of the Parties are subject to confirmation from them.

2. As per the information available with the Company, there are no overdue principal and/or interest amounts payable to the Suppliers under the Micro Small and Medium Enterprises Development Act,2006 at the close of the financial year.

3. Contingent liabilities not provided for in the accounts: NIL

4. In the opinion of the Board the Current & Non-Current Assets are approximately of the value stated, if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

5. Disclosure of Segment Reporting (Ind AS 108):

The business segment has been considered as the primary segment. The Company is in primarily in the business trading in segment of fruits & vegetable products. There are no export sales.

6. Disclosure of Related party (Ind AS 24):

a) Relationship

(i) Subsidiary Company None

(ii) Associate Concern None

(iii) Key Person (Director) 1. Mr. Kumar V. Shah - Managing Director

(iv) Relative of Key Person Mr. Mitesh K. Shah-Son of Kumar V. Shah

b) Transaction

(i) Key Person (Director) 1. Remuneration

K.V.Shah - Rs.12,00,000/-( P. Y. Rs.9,22,500/-)

2. Unsecured Loan received as at year end.

K.V.Shah - Rs.68,53,260/-(P.Y.Rs.82,04,660/-)

(ii) Relative of Key Person 1. Remuneration

Mitesh K. Shah Rs. 2,00,000/- (PY Rs. NIL)

2. Salary Payable Rs. 1,35.000/- (PYRs. NIL)

7. Disclosure of Taxes on income (Ind AS 12):

No recognition of Net Deferred Tax Assets for significant losses available for set off under the provisions of Income Tax Act, ! 1961 have been made in the Account on prudence basis.

No provision for current tax has been made in the financial statements due to carried forward losses available for set off under the provisions of Income Tax Act, 1961.

8. Disclosure of Leases (ind AS 17):

The Company as a Lessee has taken a premises at Mumbai on operating lease for 11 months. The lease rent for the year

Rs. 560000 (PY Rs. 132000) has been recognized in the profit & loss account.. YV

12. Fair Value Measurements

i. Financial Instruments by Category

The management assessed that the carrying amount of the cash and cash equivalent, trade receivables, trade payables, borrowings and other financial assets and liabilities at amortised cost as disclosed in the financial statements approximate their fair value largely due to the contractual payment terms and short term maturities of these instruments.

ii. Fair Value Hierarchy I

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measure at fair value. To provide an indication about the reliability of the inputs used in determing fair value, the company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table:

iii. Fair value measurement

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

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 and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 - If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. This is the case for unquoted equity shares.

There have been no transfers among Level 1, Level 2 and Level 3 during the period

iv. Valuation technique used to determine fair value

The fair value of unquoted equity instruments is not significantly different from their carrying value and hence the management has considered their carrying amount as fair value.

v. Valuation processes

The finance department performs the valuations of financial assets and liabilities required for financial reporting purposes, which reports to the audit committee. Discussions of valuation processes and results are held between them regularly in line with the company''s reporting periods.

8 Financial Risk Management

The company''s activity expose it to market risk, liquidity risk and credit risk. The senior Management of the Company overseas the management of these risks.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market priced with risk associated with commodity price risk. The Management monitors the Market prices on regular basis to mitigate the Market risk.

(B) Liquidity risk

Liquidity risk is the risk that a company may encounter difficulties in meeting its obligations associated, with financial liabilities that are settled by delivering cash or other financial assets.. The Company has liabilities of Trade payable and other payable excluding borrowing from a Director which are expected to mature within 12 months as on 31 st March,2018 Rs92,67,687/- against which the Company has current assets to the tune of Rs.1,81,22,591/- and hence the management monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs.

(A) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

i. Credit risk management

To manage the credit risk, Company periodically assesses the financial reliability of customers; taking into account factors such as credit track record in the market and past dealings with the company for extension of credit to Customer. Company monitors the payment track record of the customers, restrict credit limit, credit rating etc. Concentrations of credit risk are limited as majority of transactions are done on cash on delivery basis which mitigate the credit risk.

ii. Provision for expected credit losses-Trade Receivables

The company follows expected credit loss method ‘for recognition of loss allowance on Trade receivables. The Trade receivables of the Company are less than one year and hence no provision is required as the Management is estimating making provision @ 100% if the invoice is unrealized for more than 2 years from its due date.

9. Capital Management:

For the purpose of the company’s capital management, capital includes issued equity capital,, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company is not exposed to any externally imposed capital requirements. The Net worth of the Company as on 31st March,2018 is positive to the extent of Rs. 35,75,113/-,

10. The provisions of PF, ESI .Bonus and Gratuity Acts are not applicable to the Company as there are no employees covered under the said Acts.

---

Mar 31, 2015

1. The debit and credit balances of the Parties including are subject to confirmation from them.

2. As per the information available with the Company, there are no overdue principal and/or interest amounts payable to the Suppliers under the Micro Small and Medium Enterprises Development Act, 2006 at the close of the financial year.

3. Contingent liabilities Rs.1,03,848/- not provided in the accounts in the absence of the order copy by cex department some Rs. 35,000/- paid by CMD from his personal account.

4. The accumulated losses as on 31st march. 2015 exceeds the Net Worth of the Company. The Company has incurred net cash losses during the current and the previous years and the liabilities exceeds the assets. However, the Accounts are prepared on the basis that the Company is a going concern as the Company has successfully relisted the Company on the Bombay Stock Exchange during the current financial year and have taken necessary steps to revive the business operations of the Company. The Company foresee its better future prospects.

5. In the opinion of the Board the Current Assets, Loans & Advances are approximately of the value stated. if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

6. Previous year figures are regrouped and re-arranged wherever necessary so as to make them comparable with those of the current year's figures.

7. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of Segment Reporting is required.

8. Disclosure of Related party (Accounting Standard 17):

a) Relationship

(i) Subsidiary Company None

(ii) Associate Concern None

(iii) Key Person (Director) 1. Mr. Kumar V. Shah - Managing Director

b) Transaction

(i) Key Persons (Director) 1. Remuneration M. D. K.V.Shah - Rs. 90000/- (P.Y. Rs. 90000/-)

9. Disclosure of Taxes on income ( Accounting Standard 22):

No recognition of Net Deferred Tax Assets over the Deferred tax liability have been made in the Account for the carried forward unabsorbed depreciation available for set off under the provisions of Income Tax Act, 1961 due to non existence of supporting evidence for availability of future taxable Income.

10. Disclosure of Leases ( Accounting Standard 19):

The Company as a Lessee had taken office premises at Andheri (w), Mumbai on operating lease for 11 months which expired during the year. The lease rent for the year Rs. 33000 (PY Rs. 66000) has been recognized in the profit & loss account.

---

Mar 31, 2014

1. Terms/rights attached to equity shares

The company has only one class of equity shares having a face value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

2. The debit and credit balances of the Parties including are subject to confirmation from them.

3. The Company does not have a whole time secretary as required by the provisions of section 383-A of the Companies Act, 1956.

4. As per the information available with the Company, there are no overdue principal and/or interest amounts payable to the Suppliers under the Micro Small and Medium Enterprises Development Act, 2006 at the close of the financial year.

5. Contingent liabilities not provided for in the accounts: NIL

6. The accumulated losses as on 31st March 2014 exceeds the Net Worth of the Company; however, the Accounts are prepared on the basis that the Company is a going concern.

7. In the opinion of the Board the Current Assets, Loans & Advances are approximately of the value stated. if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

8. Previous year figures are regrouped and re-arranged wherever necessary so as to make them comparable with those of the current year''s figures.

9. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of Segment Reporting is required.

10. Disclosure of Taxes on income (Accounting Standard 22):

No recognition of Net Deferred Tax Assets have been made in the Account for the carried forward unabsorbed deprecation available for set off under the provisions of Income Tax Act, 1961 due to non existence of supporting evidence for availability of future taxable Income.

11. Disclosure of Leases (Accounting Standard 19):

The Company as a Lessee had taken office premises at Vile Parle, Mumbai on operating lease for 11 months which expired during the year. The lease rent for the year Rs.66000 (PY Rs.132000) has been recognized in the profit & loss account.

---

Mar 31, 2013

1. The debit and credit balances of the Parties including debtors, creditors and loans & advances are subject to confirmation from them.

2. The Company does not have a whole time secretary as required by the provisions of section 383-Aof the Companies Act, 1956.

3. As per the information available with the Company, there are no principal and/or interest amounts payable to the Suppliers under the Micro Small and Medium Enterprises Development Act,2006 at the close of the financial year.

4. Contingent liabilities/assets not provided for in the accounts:

a) Claim of SICOM for recovery of loans with interest Rs. NIL (Previous year-Rs. 227 lacs) which was disputed by the Company.

b) The matter relating to grant of eligible benefits from the Eligible Certificate issued by Maharashtra State Government (SICOM) is pending before the Hon''ble Supreme Court of India which is admitted in Company''s favour and if the final order comes in Company''s favour then Company will be entitled to claim various benefits/damages/losses/interest from the Maharashtra State Government (SICOM) which is estimated at around Rs. 23.60 crores (Previous year Rs. 20 crores).

5. The accumulated losses as on 31 st March. 2013 exceeds the Net Worthof the Company; however, the Accounts are prepared on the basis that the Company is a going concern.

6. in the opinion of the Board the CurrentAssets, Loans &Advances are approximately of the value stated, if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

7. Previous year figures are regrouped and re-arranged wherever necessary so as to make them comparable with" those of the current year''s figures.

8. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of Segment Reporting is required.

9. Disclosure of Taxes on income (Accounting Standard 22):

No recognition of Net Deferred Tax Assets have been made in the Accounts related to carried forward losses available for set off under the provisions of Income Tax Act, 1961 due to non existence of virtual certainty supported by convincing evidence for availability of future taxable Income.

10. Disclosure of Leases (Accounting Standard 19):

The Company as a Lessee has taken office premises at Vile Parle, Mumbai on operating lease for 11 months. The lease rent for the year Rs.132000 (PY Rs.5500) has been recognized in the profit& loss account.

---

Mar 31, 2012

Terms/rights attached to equity shares

The company has only one class of equity shares having a face value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

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

1. The debit and credit balances of the Parties including are subject to confirmation from them.

2. The Company does not have a whole time secretary as required by the provisions of section 383-A of the Companies Act, 1956.

3. As per the information available with the Company, there are no principal and/or interest amounts payable to the Suppliers under the Micro Small and Medium Enterprises Development Act,2006 at the close of the financial year.

4. Contingent liabilities/assets not provided for in the accounts:

a) Claim of SICOM for recovery of loans with interest-Rs. 227 lacs which is disputed by the Company.

b) The matter relating to grant of eligible benefits from the Eligible Certificate issued by SICOM is pending before the Hon'ble Supreme Court of India which is admitted in Company's favour and if the final order comes in Company's favour then Company will be entitled to claim various benefits/damages/losses/Interest from the SIcOm which is estimated at around Rs. 20.0 crores.

5. The accumulated losses as on 31st March. 2012 exceeds the Net Worth of the Company; however, the Accounts are prepared on the basis that the Company is a going concern.

6. In the opinion of the Board the Current Assets, Loans & Advances are approximately of the value stated. if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

7. During the year ended 31 March, 2012, the revised Schedule VI notified under the Companies Act 1956, has become'' applicable to the Company for preparation and presentation of its financial statements. It has significant impact on presentation and disclosures made in the financial statements. Previous year figures are regrouped and re-arranged so as to make them comparable with those of the current year's figures as per the revised Schedule VI.

8. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of Segment Reporting is required.

9. Disclosure of Taxes on income ( Accounting Standard 22):

No recognition of Net Deferred Tax Assets have been made in the Accounts related to carried forward losses available for set off under the provisions of Income Tax Act, 1961 due to non existence of virtual certainty supporter y convincing evidence for availability of future taxable Income.

---

Mar 31, 2011

1. In the opinion of the Board the Current Assets, Loans & Advances are approximately of the value stated. if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

2. The debit and credit balances of the Parties including secured and unsecured loans are subject to confirmation from them.

3. The Company has not constituted the Audit Committee as required by the provisions of Section 292A and does not have a whole time secretary as required by the provisions of section 383-A of the Companies Act, 1956.

4. No provision for taxation has been made in the absence of taxable income and c/f losses available for set- off under the Income-tax Act, 1961.

5. In the absence of information regarding status of Suppliers as defined under the Micro Small and Medium Enterprises Development Act,2006, the amounts overdue and remaining unpaid on account of principal and/or interest at the close of the financial year to the Suppliers could not be determined. Accordingly the disclosures of the amounts due to the Creditors belonging to Micro Small and Medium Enterprises Development Act,2006 as required under the amended Schedule VI to the Companies Act, 1956 have not been made.

6. Contingent liabilities/assets not provided for in the accounts:

a) Claim of SICOM for recovery of loans with interest-Rs. 227 lacs which is disputed by the Company.

b) The matter relating to grant of eligible benefits from the Eligible Certificate issued by SICOM is before the Hon'ble Supreme Court of India which is admitted in Company's favor and if the final order comes in Company's favor then Company will be entitle to claim various benefits/ damages / losses /Interest from the SICOM which is estimated at around Rs.17.0 crores.

7. The accumulated losses as on 31st March. 2011 exceeds the Net Worth of the Company; However, the Accounts are prepared on the basis that the Company is a going concern.

8. Previous year figures are regrouped and re-arranged wherever necessary so as to make them comparable with those of the current year.

9. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of Segment Reporting is required.

10. Disclosure of Taxes on income ( Accounting Standard 22):

No recognition of Net Deferred Tax Assets have been made in the Account in view of existence of huge carried forward and unabsorbed deprecation available for set off under the provisions of Income Tax Act, 1961 and non existence of supporting evidence for availability of future taxable Income.

---

Mar 31, 2010

1. In the opinion of the Board the Current Assets, Loans & Advances are approximately of the value stated. if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

2. The debit and credit balances of the Parties including secured and unsecured loans aresubject to confirmation from them.

3. The Company has not constituted the Audit Committee as required by the provisions of Section 292A and does not have a whole time secretary as required by the provisions of section 383-A of the Companies Act, 1956.

4. No provision for taxation has been made in the absence of taxable income and c/f losses available for set- off under the Income-tax Act, 1961.

5. In the absence of information regarding status of Suppliers as defined under the Micro Small and Medium Enterprises Development Act,2006, the amounts overdue and remaining unpaid on account of principal and/or interest at the close of the financial year to the Suppliers could not be determined. Accordingly the disclosures of the amounts due to the Creditors belonging to Micro Small and Medium Enterprises Development Act,2006 as required under the amended Schedule VI to the Companies Act, 1956 have not been made.

6. Contingent liabilities/assets not provided for in the accounts:

a) Claim of SICOM for recovery of loans with interest-Rs. 227 lacs which is disputed by the Company.

b) The matter relating to grant of eligible benefits from the Eligible Certificate issued by SICOM is before the Hon'ble Supreme Court of India which is admitted in Company's favor and if the final order comes in Company's favor then Company will be entitle to claim various benefits/ damages / losses /Interest from the SICOM which is estimated at around Rs.15.60 crores.

7. The accumulated losses as on 31st March. 2010 exceeds the Net Worth of the Company; However, the Accounts are prepared on the basis that the Company is a going concern.

8. Previous year figures are regrouped and re-arranged wherever necessary so as to make them comparable with those of the current year.

9. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of ,

10. Disclosure of Taxes on income ( Accounting Standard 22):

No recognition of Net Deferred Tax Assets have been made in the Account in view of existence of huge carried forward and unabsorbed deprecation available for set off under the provisions of Income Tax Act, 1961 and non existence of supporting evidence for availability of future taxable Income.