Notes to Accounts of Seya Industries Ltd.

Mar 31, 2024

i. The Company has Authorised Capital of Equity and Preference Shares, however the Company has no outstanding Non-Convertibf Redeemable Preference Shares.

ii. Rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of Capital.

Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of Shareholders, except in case of interim dividend. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

iii. During the year under review the Company have converted 1,970,540 Compulsory Convertible Preference Shares (CCPS) of Rs.10/- each into equal number of Equity Shares

1) -Rupee Term Loan from banks comprises of Loan taken for expansion project and Car loans.

-Term loan for expansion of project is secured by way of first charge, having pari-passu rights, on factory - land and building (Save and except stock and book debts), situated at one of the Company''s location.

-Car loan from bank is secured against hypothecation of Car.

-Rate of Interest are in the range of Base Rate plus 0.00% to 2.65% p.a. and repayable on quarterly basis with last in March 2027[Refer Note 30.1]

2) -Rupee Term Loan from Other comprises of Loan taken for expansion of project and Long-term augmentation of working capital and is secured by way of first charge, having pari-passu rights, on factory - land and building (Save and except stock and book debts), situated at separate locations of the Company.

-Rate of Interest for FIs are in the range of Base Rate plus 0.00% to 2.65% p.a. and repayable on quarterly basis with instalments payable until March 2027[Refer Note 30.1]

-Borrowings from Others are repayable as per agreed terms in single tranche along-with accrued Interest at the end of 10 years ie. Mar-2030. In accordance with contractual terms, interest has commenced from FY20-21.

3) Liability on account of claim of a Guarantor arising out of right of subrogation due to wrongful invocation of pledge shares of the Promoters.

During the prior period certain Lenders had initiated formal legal communication, with a view to protect their interest. The Company has contested and continues to defend such action by the Lenders. Meanwhile the Company also continued to engage with lenders with a view to arrive at a resolution to ongoing matters. Due to ongoing dispute with the lenders in relation to their failure to comply with committed lending obligations, the Company has, basis of legal advice, not provided for interest costs on certain loans outstanding, amounting to INR 2,336.39 Lacs in respect of Operating Assets and INR 6,641.69 Lacs in respect of Project Assets. The Company continues to believe in the merits of the litigation, however there continues to remain material uncertainties in relation to the outcome of the said litigations. The Promoter in Aug-21 had entered into a settlement agreement with S C India Credit Fund thought its Manager S. C. India Manager Pvt. Ltd in relation to the settlements of Amounts pertaining to the NCD''s raised by the Company. The Company has been complying with the settlement terms and due payments are being made as per agreed terms. The Company has availed certain loans in relation to which the Company has not provided for interest cost on such borrowings. In the event the Company would have provided the interest as per contractual terms on such borrowings, the total liability in respect of such borrowings would be INR 77,503.86 as on 08^th Nov-2023.

30.2. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Enterprises, to whom the Company owes dues which are outstanding as at the Balance Sheet date. The information has been identified to the extent such parties have been identified on the basis of information available with the Company.

30.3. Financial Instruments

The Company has negligible exposure in Foreign Currency during the year and hence has not availed any financial instrument, viz. Derivatives and Forward Contract Instruments for hedging its risks and exposure to foreign currency fluctuations.

30.4. Value of imports calculated on CIF basis: ''NIL (Previous Year: NIL)

30.5. Expenditure in Foreign Currency: ''NIL (Previous Year: NIL)

30.6. Amounts remitted in foreign currency during the year on account of dividend: NIL (Previous year: NIL)

30.9. Disclosure under IND AS-19: Employee Benefits Obligations 30.9.1. Defined Benefit Plan

During the Period under review Company has made contribution towards Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India. Both are funded defined benefit plans for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company''s Gratuity Scheme. Vesting occurs upon completion of Five years of services. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Compensated Absences is recognised in the same manner as gratuity.

30.9.2. The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

30.9.3. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, Increments and other relevant factors.

30.9.4. The expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of assets management and historical result of the return on plan asset.

30.9.5. In absence of specific details of plan assets from LIC, the details of plan assets have not been furnished. The details of experience adjustment relating to Plan assets are not readily available in valuation report and hence are not furnished.

30.9.6. The following table set out the funded status and amounts recognised in Company''s financial statements as at March 31, 2024 for Defined Benefit Plan. (Disclosure as per IND AS-19)

Sensitivity Analysis

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade, expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at end of the reporting period, while holding all other assumptions constant. The result of Sensitivity analysis is given below:

In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as and when calculating the defined benefit liability recognised in the Balance Sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the prior year.

30.10. Capital Management

The key objective of the Company''s capital management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business. The Company focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company. For the purposes of Capital Management, the Company considers the following components of its Balance Sheet to manage capital.

(B) Fair Value Hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. An explanation of each level are follows

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

There are no Financial Assets which are required to be carried at Fair value using Fair value hierarchy

30.16. Financial Risk Management Objectives

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including interest rate risk and other price risk), credit risk and liquidity risk.

(A) Market Risk

Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument, as a result of interest rates, and other price risks. Financial instruments affected by market risks, primarily include loans, borrowings and Trade receivables.

(i) Interest Rate Risk

The Company borrows funds in Indian Rupees, to meet both the long term and short-term funding requirements. Interest on term borrowings is subject to Base rate / MCLR and is fixed for at least one year. The sensitivity analysis detailed below have been determined based on the exposure to variable interest rates on the average outstanding amounts due to bankers over a year. [Refer Note 30.1] If the interest rates had been 25 BPS higher / lower and all other variables held constant, the company''s profit for the year ended March 31, 2024, would have been decreased/increased by ''0.50 Lakhs.

(ii) Price Risk

100% of Company''s revenues are generated from Local Markets and the raw materials are procured through local purchases where local purchases track import parity price. The Company is affected by the price stability of certain commodities. Due to the significantly increased volatility of certain commodities, the Company enters into contract with the customers that has provision to pass on the change in the raw material prices. The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs.

(iii) Foreign Currency Risks

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from future commercial transactions and is recognised as financial assets and liabilities, denominated in a currency that is not its functional currency. The exposure to foreign currency risk of the Company at the end of the reporting period was NIL.

(B) Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables). The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.

Though the Customer credit risk is managed by the Company''s established policy, procedures and control relating to the customer credit risk management, the impact arising from above on its trade receivables needs to be closely monitored on case to case basis and allowance if any should be appropriately considered. The Company uses financial information and past experience to evaluate Outstanding receivable in terms of credit worthiness, credit quality, individual credit limits of majority of its customers which are periodically monitored. The historical experience of collecting receivables of the Company is supported by low level of past default, however the impact of the on-going situation needs continuous evaluation by the management. The credit risk as at balance sheet date is perceived to be moderate, however expected to improve going forward.

(C) Liquidity Risk

The Company manages liquidity risk by maintaining adequate surplus and financing facilities by continuously monitoring forecasts and actual cash flows. The Company monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility. The company faces acute liquidity risks on account of pandemic induced factors. The table below provides details regarding the contractual maturities of financial liabilities as at March 31, 2024

1. The construction of the Mega Greenfield Expansion project undertaken by the Company has been temporarily kept on hold predominantly due to failure of Lenders in fulfilling their committed lending obligations. Also, the Management has taken several actions like (i) reduction in unit operating costs (ii) increasing liquidity by making its operations more efficient and nimbler (iii) putting on hold discretionary expenses and (iv) deferring certain capital expenditures, etc.

30.17. Investor Education and Protection Fund

In view of the moratorium u/s 14 of the Insolvency & Bankruptcy Code, 2016 being in force against the Company, the action of transferring funds lying in the Unpaid Dividend Account of the Company to Investor Education and Protection Fund, as per the provisions of sub-section (5) of Section 124 of the Companies Act, 2013, has been kept in abeyance and shall be subject to orders of the Hon''ble NCLT.

30.18. Corporate Social Responsibility:

During FY 2023-24, the CSR provisions were not applicable, since the Company did not meet the criteria as stipulated u/s. 135(1) of the Companies Act, 2013.

30.19. In the opinion of the Board of Directors / Interim Resolution Professional, except as otherwise stated, the Current Assets, Loans and Advances have value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the foregoing Balance Sheet and adequate provision for all known liabilities on the Company has been made.

30.20. The Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, Statement of Changes in Equity, Statement of Significant Accounting Policies and the Other Explanatory Notes for the year ended March 31, 2024, forms an integral part of the financial statements of the Company.

30.21. The Operations of the Company were severely impacted materially due to Covid-19 pandemic and its resurgence during previous years. However, the Company continued to incur committed expenditure with respect to its Employees, Plant & Other related expenditures. While the pandemic situation, Russia-Ukraine conflict and now the economic landscape cross the world and more particularly in US and European countries has adversely affected the economy at large, the chemical industry has also been affected in segments. This has significantly impacted Company''s profitability. The Management is evaluating all the possible effects resulting from such situation in relation to the carrying amounts of Trade receivables, Inventories, its assets comprising Property, Plant and Equipment, Intangible assets, Financial assets but has not yet concluded on adjustments required to be made to the carrying values of such assets as at March 31, 2024, accordingly, the management has not accounted for any Impairment/Write-off on account of Loss of certain receivables of the company and certain Non-current liabilities, under exceptional item. The same however are not affecting continuing operations. The impact assessment is a continuing process given the uncertainties associated with its nature and duration. In developing such assumptions and estimates relating to the uncertainties in relation to the recoverable amounts of these assets, the management is using internal and external sources of information to the extent available. The Impact of the same may be evident at a future date, however the same may not affect continuing operations.

Several actions have been taken by the Company Management to mitigate the effects of Covid-19, Russia-Ukraine conflict & Challenging economic Landscape on Company''s business by reducing unit costs and increasing liquidity by making operations more efficient and nimbler, putting on hold discretionary expenses, deferring certain capital expenditures, etc. In order to sustain operations, actions to cut employee costs through pay cuts, leave without pay and reduction in workforce have also been taken during the period under review. The Management continues to carry out the impact assessment on Company''s assets and closely monitor any material changes to future economic conditions.

30.22. Previous Year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure and to conform to Ind AS presentation requirements.

30.23. Other Statutory Information

(i) There are no proceedings which have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) The Company has not been declared a wilful defaulter by any bank or financial institution.

(iii) The Company has not identified any transaction with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 and has no balances outstanding from struck of Companies.

(iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(v) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vi) The Company have 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:

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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vii) The Company have 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 Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(viii) 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).

(ix) Title deeds of all the Immovable Property are held in name of the Company.

(x) The Code on Social Security, 2020 and Code of wages, 2019 relating to employee benefits during employment and postemployment benefits received Presidential assent in September 2020. The Codes have been published in the Gazette of India. However, the date on which the Codes will come into effect has not been notified. The Company will assess the impact of the Codes when it comes into effect and will record any related impact in the period the Codes become effective.

(xi) The National Company Law Tribunal ("NCLT"), Mumbai Bench, vide order dated 2nd November 2023 passed in CP (IB) 446 MB 2023 has initiated corporate insolvency resolution process ("CIRP") against the company. Mr. Bhavesh Rathod, IP Registration No. IBBI/IPA-001/IP-P01200/2018-2019/11910 has been appointed as Interim Resolution Professional ("IRP") to manage affairs of the Company in accordance with the provisions of the insolvency and bankruptcy Code 2016 ("Code). In line with the provisions of the Code, the powers of the Board of Directors stand suspended and the same are being exercised by IRP.

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Mar 31, 2023

Provisions, contingent liabilities and assets

Provisions are recognised when the company has a present
obligation (legal or constructive) as a result of 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 obligation. If the effect of
the time value of money is material, provisions are determined
by discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value of
money and the risks specific to the liability. Where discounting
is used, the increase in the provision due to the passage of time
is recognised as a finance cost.

Contingent Assets are not recognised in the financial statements.

2.16. Borrowing Cost

Borrowing cost that are directly attributable to the acquisition,
construction, or production of a qualifying asset are capitalized
as a part of the cost of such asset till such time the asset is ready
for its intended use or sale.

Borrowing cost consist of interest and other costs that an entity
incurs in connection with the borrowing of funds. Borrowing
costs also includes exchange differences to the extent regarded
as an adjustment to the borrowing costs. A qualifying asset is an
asset that necessarily requires a substantial period of time to get
ready for its intended use or sale. All other borrowing cost are
recognized as expense in the period in which they are incurred.

2.17. Inventories

• Raw materials, Work in progress, manufactured goods
and Stores & Spares are valued at lower of Cost (FIFO)
or estimated net realisable value after providing for
obsolescence and other losses, where considered
necessary.

• By-products, self-generated scrap and non-reusable waste
are valued at estimated net realisable value.

• Cost includes all charges in bringing the goods to their
present location and condition, including other levies,
transit insurance and receiving charges.

• Work in progress and finished goods include appropriate
proportion of overheads and, where applicable, excise
duty.

• Estimated net realisable value is the estimated selling price
in the ordinary course of business, reduced by estimated
costs of completion and estimated costs necessary to make
the sale.

2.18. Revenue Recognition

Sale of Goods

Revenue from sales are recognized, when risks and rewards of
ownership of products are passed on to the customers, which
is generally on dispatch/delivery of goods and there is no
significant uncertainty regarding amount of consideration that
will be derived. Revenue from sale of goods are recognized at
the fair value of the consideration received or receivable, net
of returns including estimated returns where applicable, and
trade discounts, rebates, sales tax and value added tax/GST.
Revenue is recognized only when risks and rewards incidental
to ownership are transferred to the customer, it can be reliably
measured, and it is reasonable to expect ultimate collection.

The Company has adopted Ind AS 115 Revenue from contracts
with customers, with effect from April 1, 2018. Ind AS 115
establishes principles for reporting information about the
nature, amount, timing and uncertainty of revenues and cash
flows arising from the contracts with its customers and replaces
Ind AS 18 Revenue and Ind AS 11 Construction Contracts.

The Company has adopted Ind AS 115 using the cumulative
effect method whereby the effect of applying this standard is
recognised at the date of initial application (i.e. April 1, 2018).
Accordingly, the comparative information in the statement of
profit and loss is not restated.

Other Income

Interest Income

Interest income is recognized using effective interest rate
method and on time proportion basis taking into account the
amount outstanding and the interest rate applicable.

Dividend

Dividend income is recognised when the Company''s right to
receive the payment is established, which is generally when
shareholders approve the dividend.

2.19. Employee Benefits

Defined benefit plans

The liability in respect of defined benefit plans is calculated
using the projected unit credit method with actuarial valuations
being carried out at the end of each annual reporting period. The
present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows by reference to
market yields at the end of the reporting period on government
bonds. The currency and term of the government bonds shall
be consistent with the currency and estimated term of the
post-employment benefit obligations. The current service cost
of the defined benefit plan, recognised in the profit or loss as
employee benefits expense, reflects the increase in the defined
benefit obligation resulting from employee service in the
current year, benefit changes, curtailments and settlements.
Past service costs are recognised in profit or loss in the period
of a plan amendment. The net interest cost is calculated by
applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is
included in employee benefit expense in profit or loss. Actuarial
gains and losses arising from experience adjustments and
changes in actuarial assumptions are charged or credited to OCI
in the period in which they arise and is reflected immediately in
retained earnings and is not reclassified to profit or loss.

Short-term and Other long-term employee benefits

A liability is recognised for benefits accruing to employees in
respect of wages and salaries, and casual leave in the period the
related service is rendered at the undiscounted amount of the
benefits expected to be paid in exchange for that service.

The Company''s net obligation in respect of other long¬
term employee benefits is the amount of future benefit that
employees have earned in return for their service in the current
and previous periods. That benefit is discounted to determine
its present value.

Defined contribution plans

The Company''s contributions to defined contribution plans are
recognised as an expense as and when the services are received
from the employees entitling them to the contributions.

2.20. Income Tax

Current Income Tax

Income tax expense consists of current and deferred tax. Income
tax expense is recognised in profit or loss except to the extent
that it relates to items recognised in OCI or directly in equity, in
which case it is recognised in OCI or directly in equity respectively.
Current tax is the expected tax payable on the taxable profit for
the year, using tax rates enacted or substantively enacted by the
end of the reporting period, and any adjustment to tax payable
in respect of previous years. Current tax assets and tax liabilities
are offset where the Company has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.

Deferred Tax

Deferred tax is recognised on temporary differences between
the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the
computation of taxable profit.

Deferred tax is measured at the tax rates that are expected to
be applied to the temporary differences when they reverse,
based on the laws that have been enacted or substantively
enacted by the end of the reporting period. Deferred tax assets
and liabilities are offset if there is a legally enforceable right
to set off corresponding current tax assets against current tax
liabilities and the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same tax authority on the
Company.

A deferred tax asset is recognised to the extent that it is probable
that future taxable profits will be available against which the
temporary difference can be utilised. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefit will be
realised. Withholding tax arising out of payment of dividends
to shareholders under the Indian Income tax regulations is not
considered as tax expense for the Company and all such taxes
are recognised in the statement of changes in equity as part of
the associated dividend payment.

Minimum Alternate Tax (''MAT'') credit is recognised as deferred
tax asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during
the period for which the MAT credit can be carried forward for
set-off against the normal tax liability. MAT credit recognised
as an asset is reviewed at each Balance Sheet date and written
down to the extent the aforesaid convincing evidence no longer
exists.

2.21. Earnings per share

The Company presents basic and diluted earnings per share
("EPS") data for its equity shares. Basic EPS is calculated by
dividing the profit or loss attributable to equity shareholders of
the Company by the weighted average number of equity shares
outstanding during the period. Diluted EPS is determined by
adjusting the profit or loss attributable to equity shareholders
and the weighted average number of equity shares outstanding
for the effects of all dilutive potential ordinary shares, which
includes all stock options granted to employees.

2.22. Foreign Currency

Foreign currency transactions

Transactions in foreign currencies are translated to the
respective functional currencies of entities within the Company
at exchange rates at the dates of the transactions. Monetary
assets and liabilities denominated in foreign currencies at the
reporting date are translated into the functional currency at the
exchange rate at that date. Exchange differences arising on the
settlement of monetary items or on translating monetary items
at rates different from those at which they were translated on
initial recognition during the period or in previous financial
statements are recognized in the income statement in the period
in which they arise. When several exchange rates are available,
the rate used is that at which the future cash flows represented
by the transaction or balance could have been settled if those
cash flows had occurred at the measurement date.

2.23. Research and development

Expenditures on research activities undertaken with the
prospect of gaining new scientific or technical knowledge and
understanding are recognized in the income statement when
incurred. Development activities involve a plan or design for
the production of new or substantially improved products and
processes. Development expenditures are capitalized only if:

• development costs can be measured reliably;

• the product or process is technically and commercially
feasible;

• future economic benefits are probable; and

• the Company intends to and has sufficient resources to
complete development and to use or sell the asset.

The expenditures to be capitalized include the cost of materials
and other costs directly attributable to preparing the asset for its
intended use. Other development expenditures are recognized
in the income statement as incurred.

3. RECENT ACCOUNTING PRONOUNCEMENTS

The Ministry of Corporate Affairs (MCA) on 23rd March, 2022
through companies (Indian Accounting Standards) Amendment
Rules, 2022 has notified the following amendments to IND AS
which are applicable on 1st April 2022:

3.1. Ind AS 16 - Property, Plant and equipment -

The amendment clarifies that excess of net sale proceeds of
items produced over the cost of testing, if any, shall not be
recognised in the profit or loss but deducted from the directly
attributable costs considered as part of cost of an item of
property, plant and equipment. The amendment prohibits an
entity from deducting from the cost of property, plant and
equipment amounts received from selling items produced
while the company is preparing the asset for its intended
use. Instead, an entity will recognise such sales proceeds and
related cost in the profit or loss The Company does not expect
the amendments to have any impact in its recognition of its
property, plant and equipment in its financial statements.

3.2. Ind AS 37 - Provisions, Contingent Liabilities and Contingent
Assets

The amendment specifies that the cost of fulfilling a contract
comprises the costs that relate directly to the contract. Costs
that relate directly to a contract can either be incremental costs
of fulfilling that contract (examples would be direct labour,
materials) or an allocation of other costs that relate directly
to fulfilling contracts (examples depreciation charge). The
amendment is essentially a clarification, and the Company does
not expect the amendment to have any significant impact in its
financial statements.

3.3. Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part
of applying the acquisition method, the identifiable assets
acquired and liabilities assumed must meet the definitions of
assets and liabilities in the Conceptual Framework for Financial
Reporting under Indian Accounting Standards (Conceptual
Framework) issued by the Institute of Chartered Accountants of
India at the acquisition date. These changes do not significantly
change the requirements of Ind AS 103.

3.4. Ind AS 106 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement
of leasehold improvements by the lessor in order to resolve any
potential confusion regarding the treatment of lease incentives
that might arise because of how lease incentives were described
in that illustration. The Company is in the process of assessing
the impact of the amendment in its financial statements.

3.5. Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it
applies the ''10 %'' test of Ind AS 109 in assessing whether to
derecognise a financial liability. The Company is in the process
of assessing the impact of the amendment in its financial
statements.

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Mar 31, 2018

Footnotes

i. The Credit Period on sale of goods varies from Customer to Customer and generally ranges between 0 to 90 days. For Financial risk related to trade receivables Refer Note No. 31.17 (B)

ii. The Company has used a Practical expedient for computing expected credit loss allowance for trade receivables, taking into account historical credit loss experience and accordingly, provisions are made for expected credit loss for amounts due from customers where necessary.

Footnote

i. The Company has Authorised Capital of Equity and Preference Shares.

ii. Rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of Capital.

Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of Shareholders, except in case of interim dividend. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

iii. The Company has not allotted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back during the period of five years immediately preceding the Balance Sheet date.

iv. The Company offered Equity shares to Promoters as well as to Non-Promoters through Preferential Allotment in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. The year wise details are as follows:

For Financial Year 2016-17:

9.350.000 Equity Shares and 4,250,000 Convertible Warrants of face value Rs.10/- each were allotted to Promoters and Non-Promoters on November 8, 2016 at an issue price of Rs.180/- each (Including Premium of Rs.170/- each). The issue proceeds from the preferential allotment has been fully utilised for the object for which the money was raised.

For Financial Year 2017-18:

4.250.000 Equity Shares of face value Rs.10/- each were allotted to Promoters and Non-Promoters on September 14, 2017 on full conversion of convertible warrants. The issue proceeds from the preferential allotment has been fully utilised for the object for which the money was raised.

Footnote

i. Rupee Term Loan from banks comprises of Loan taken for expansion project of Rs.21,829.34 Lakhs and Car loan of Rs.272.98 Lakhs.

ii. Term loan for expansion of project is secured by way of first charge, having pari-passu rights, on factory - land and building (Save and except stock and book debts), situated at one of the Company''s location.

iii. Car loan from bank is secured against hypothecation of Car.

iv. Terms of Repayments of Secured Loans

v. Rate of interest of Rupee term loan from Banks are in the range of base rate / MCLR plus 0.00% to 2.65% p.a. and is repayable on quarterly basis with last installments payable from April 2020 to March 2027.

vi. Non-Convertible redeemable preference shares are redeemable not more than twelve years with a dividend rate as may be decided by Board of Directors

1. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Enterprises, to whom the Company owes dues which are outstanding as at the Balance Sheet date. The information has been identified to the extent such parties have been identified on the basis of information available with the Company.

2. Financial Instruments

The Company has negligible exposure in Foreign Currency during the year and hence has not availed any financial instrument, viz. Derivatives and Forward Contract Instruments for hedging its risks and exposure to foreign currency fluctuations.

3. Value of imports calculated on CIF basis: NIL (Previous Year: NIL)

4. Amounts remitted in foreign currency during the year on account of dividend: NIL (Previous year: NIL)

5. Earnings in Foreign Exchange: NIL (Previous Year: NIL)

6. Disclosure under IND AS-19: Employee Benefits Obligations

7. Defined Benefit Plan

During the Period under review Company has made contribution towards Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India.

Both are funded defined benefit plans for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company''s Gratuity Scheme. Vesting occurs upon completion of Five years of services.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Compensated Absences is recognised in the same manner as gratuity.

8. The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

9. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, Increments and other relevant factors.

10. The expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of assets management and historical result of the return on plan asset.

11. In absence of specific details of plan assets from LIC, the details of plan assets have not been furnished. The details of experience adjustment relating to Plan assets are not readily available in valuation report and hence are not furnished.

12. The following table set out the funded status and amounts recognised in Company''s financial statements as at March 31, 2018 for Defined Benefit Plan. (Disclosure as per IND AS-19)

13. Capital Management

The key objective of the Company''s capital management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business.

The Company focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.

14.. Disclosure Under IND AS 108 - "Operating Segment"

(a) The Company is mainly engaged in manufacturing of Speciality Chemicals Intermediates. These in the context of Ind AS 108 "Operating Segment" is considered to constitute one single primary segment.

(b) The Company is Domiciled in India and during the reporting period Company did not had any Direct Export.

Terms and Conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free. There have been no guarantees provided to any related party receivables or payables. For the year ended March 31, 2018, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (Previous Year: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Footnote

15. Including Non-Convertible Redeemable Preference shares (Rs.15,126.17 Lakhs) and Unsecured Borrowings (''8,280.93 Lakhs for FY 18, Rs.8,281.50 Lakhs for FY 17 & Rs.25,768.86 Lakhs for FY 16) are from Promoter and Related Parties.

16. The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments

(B) Fair Value Hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. An explanation of each level are follows

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

There are no Financial Assets which are required to be carried at Fair value using Fair value hierarchy

17. Financial Risk Management Objectives

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including interest rate risk and other price risk), credit risk and liquidity risk.

(A) Market Risk

Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument, as a result of interest rates, and other price risks. Financial instruments affected by market risks, primarily include loans and borrowings.

(i) Interest Rate Risk

The Company borrows funds in Indian Rupees, to meet both the long term and short-term funding requirements. Interest on term borrowings is subject to Base rate / MCLR and is fixed for at least one year. The sensitivity analysis detailed below have been determined based on the exposure to variable interest rates on the average outstanding amounts due to bankers over a year.

If the interest rates had been 25 BPS higher / lower and all other variables held constant, the company''s profit for the year ended March 31, 2018 would have been decreased/increased by Rs.39.63 Lakhs.

(ii) Price Risk

100% of Company''s revenues are generated from Local Markets and the raw materials are procured through local purchases where local purchases track import parity price. The Company is affected by the price stability of certain commodities. Due to the significantly increased volatility of certain commodities, the Company enters into contract with the customers that has provision to pass on the change in the raw material prices. The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs.

(B) Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables)

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.

Customer credit risk is managed by the Company''s established policy, procedures and control relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment through financial institutions. Outstanding receivables and the credit worthiness of its customers are periodically monitored and taken upon case to case basis.

Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low.

(C) Liquidity Risk

The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by continuously monitoring forecasts and actual cash flows. The Company has obtained fund and nonfund based working capital lines from various banks. The Company invests its surplus funds in bank fixed deposit which carry low risks. The Company monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility All payments are made along due dates and requests for early payments are entertained after due approval and availing early payment discounts.

31.18. Transition to IND AS

These are the first Financial Statements of the Company prepared in accordance with Ind AS.

The Accounting Policies set out in Note 2 have been applied in preparing the Financial Statements for the year ended March 31, 2018, the comparative information presented in these Financial Statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS Balance Sheet as at April 1, 2016 (the date of transition). In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in Financial Statements prepared in accordance with the Accounting Standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (IGAAP). An explanation of how the transition from IGAAP to Ind AS has affected the financial position, financial performance and cash flows of the Group is set out in the following tables and notes.

(A) Exemptions and Exceptions Availed

In preparing these Ind AS Financial Statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101 First-time Adoption of Indian Accounting Standards, as explained below. The resulting difference between the carrying values of the assets and liabilities in the Financial Statements as at the transition date under Ind AS and IGAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This Note explains the adjustments made by the Company in restating its IGAAP Financial Statements, including the Balance Sheet as at April 1, 2016 and the Financial Statements as at and for the year ended March 31, 2017.

(a) IND AS Optional Exemptions

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from IGAAP to Ind AS.

(i) Deemed Cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the Financial Statements as at the date of transition to Ind AS, measured as per IGAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for Plant, Property and Equipment. The company has determined that the values of items of Plant, Property and Equipment; except for Land, as at March 31, 2016 do not differ materially from fair valuation as at April 1, 2016 (date of transition to Ind AS). Accordingly, the company has not revalued the items of property plant and equipment at April 1, 2016 except for Land which have been measured at fair value at the date of transition to Ind AS. The Company regards the fair value as deemed cost at the transition date, viz., April 1, 2016.

(B) Classification and measurement of financial assets

The Company has assessed conditions for classification of the financial assets on the basis of the facts and circumstances that were exist on the date of transition to Ind AS.

(C) Reconciliation between IGAAP and IND AS

Ind AS 101 requires an entity to reconcile equity, Total Comprehensive Income and cash flows for prior periods. The following tables represent the reconciliations from IGAAP to Ind AS.

(III) Notes to Reconciliation

(a) Land - Fair Value as Deemed Cost - As at the date of Transition April 1, 2016, the company has elected to measure Land at fair value in accordance with stipulations of IND AS 16 and use the fair value as deemed cost with impact of Rs.31,421 Lakhs in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the reserves.

(b) Loans and Other Financial Assets - Under IGAAP, the Company accounted for Long Term Security Deposits paid and long-term loans to employees at nominal value. Under Ind AS, these financial assets are measured at Fair Value through Profit or Loss. The difference between Fair Value and Nominal value is accounted for as prepaid employee benefit and Deferred Rent Asset. Also, under Ind AS, below market interest rate loan received is recorded at fair value by using an appropriate discount rate on date of obtaining the loan. The interest income is recorded periodically till the maturity of the loan and the prepaid account is discounted based on effective interest method.

(c) Deferred Tax - MAT credit entitlement which was presented under Other Current assets now has been presented under Deferred Tax as per the Ind AS requirement. The impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and loss approach in the previous GAAP) for computation of deferred taxes has resulted in charge to the Reserves, on the date of transition, with consequential impact to the Statement of Profit and Loss for the subsequent periods.

(d) Retained Earnings - Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

(e) Proposed Dividend - Under IGAAP, dividends proposed by the Board of Directors after the Balance Sheet date, but before the approval of the Financial Statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the Shareholders in the General Meeting. Accordingly, the liability for proposed dividend (including dividend distribution tax) included under current provisions has been reversed with corresponding adjustment to Retained earnings. Consequently, the total equity has increased by an equivalent amount.

(f) Remeasurement of Gratuity Recognised in Other Comprehensive Income - Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset and are recognised in other comprehensive income. Under previous GAAP, actuarial gains and losses were recognised in statement of profit and loss.

(g) Other Comprehensive Income - Under Ind AS, all items of income and expense recognised in a period are to be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Statement of Profit and Loss as Other Comprehensive Income which includes remeasurement of defined benefit plans. The concept of Other Comprehensive Income did not exist under IGAAP.

18. Investor Education and Protection Fund

There is no amount due and outstanding as at Balance Sheet date to be credited to the Investor Education and Protection Fund.

19. Corporate Social Responsibility

During FY 2017-18, the Company has spent Rs.58.75 Lakhs on Corporate Social Responsibility activities, against the requirement of Rs.57.91 Lakhs, being 2% of average of the net profits for the preceding three years

20. In the opinion of the Board of Directors, the Current Assets, Loans and Advances have value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the foregoing Balance Sheet and adequate provision for all known liabilities on the Company has been made.

21. The Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, Statement of Changes in Equity, Statement of Significant Accounting Policies and the Other Explanatory Notes for the year ended March 31, 2018 forms an integral part of the financial statements of the Company.

22. Previous Year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure and to conform to Ind AS presentation requirements

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Mar 31, 2017

1. CORPORATE INFORMATION

Seya Industries Ltd (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are traded on BSE Limited. The Company is engaged in manufacturing of Speciality chemicals, Pharmaceutical Intermediates, Agrochemical Intermediates and Inorganic Chemical Intermediates.

2.1 Rights, preferences and restrictions attached to shares

The Company has only one class of Equity Shares having a par value of Rs.10/- per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of Shareholders, except in case of interim dividend. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

2.2. The Company has not allotted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back during the period of five years immediately preceding the Balance Sheet date.

2.3. During the period under review the Company has allotted 9,350,000 Equity Shares and 4,250,000 convertible warrants of face value of Rs. 10/- each and at a premium of Rs.170/-. Out of 4,250,000 convertible warrants, 3,850,000 warrants have been issued to Promoters (including related Parties) and 400,000 warrants have been issued to Non-Promoters, on a preferential basis entitling the allottee of warrants, from time to time to apply for and obtain allotment of one equity share of the face value of Rs. 10/- each fully paid up against each of such warrant at Price and on such terms and conditions as have been approved in the Extra-Ordinary General Body Meeting (EOGM) on November 1, 2016 in accordance with applicable provisions of law including SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended thereof. The Company has received full subscription money from the Promoters (including related parties) being 100% of the warrant price and subscription money from Non-Promoter being 25% of warrant price in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. Fully paid-up equity shares of the face value of Rs. 10/- each of the Company will be allotted to both Promoters (including Related parties) and Non-Promoters on receipt of balance 75% warrant price from Non-Promoters on each warrant within eighteen months from 1st November 2016.

3.1. Rupee Term Loan from banks comprises of Loan taken for expansion project of Rs.9,326.53 Lakhs and Car loan of Rs.3.57 Lakhs

3.1.1. Term loan for expansion of project is secured by way of first charge, having pari-passu rights, on factory - land and building (Save and except stock and book debts), situated at one of the Company’s location.

3.1.2. Car loan from bank is secured against hypothecation of Car.

3.2. Terms of Repayments of Secured / Unsecured Loans

4.1 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Enterprises, to whom the Company owes dues which are outstanding as at the Balance Sheet date.

The information has been identified to the extent such parties have been identified on the basis of information available with the Company.

4.2. Financial Instruments

The Company has negligible exposure in Foreign Currency during the year and hence has not availed any financial instrument, viz, Derivatives and Forward Contract Instruments for hedging its risks and exposure to foreign currency fluctuations.

4.3 Value of imports calculated on CIF basis: NIL (Previous Year: NIL)

4.4. Expenditure in Foreign Currency

4.5 Amounts remitted in foreign currency during the year on account of dividend: NIL (Previous year: NIL)

4.6. Earnings in Foreign Exchange: NIL (Previous Year: NIL)

4.7.1 Disclosure under AS-15: Employee Benefits

4.7.1. Defined Benefit Plan

During the Period under review Company has made contribution towards Employees’ Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India.

Both are funded defined benefit plans for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company’s Gratuity Scheme. Vesting occurs upon completion of Five years of services.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Compensated Absences is recognised in the same manner as gratuity.

4.7.2. The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

4.7.3. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, Increments and other relevant factors.

4.7.4. The expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of assets management and historical result of the return on plan asset.

4.7.5. In absence of specific details of plan assets from LIC, the details of plan assets have not been furnished. The details of experience adjustment relating to Plan assets are not readily available in valuation report and hence are not furnished.

4.7.6. The following table set out the funded status and amounts recognised in Company’s financial statements as at March 31, 2017 for Defined Benefit Plan. (Disclosure as per AS-15)

4.8.1. Classification of Business Segments

Primary Segments

For better understanding of Company’s business, the Company has classified its business segments based on the respective end use of its products into Inorganic, Speciality, Pharmaceuticals & Agrochemical Intermediates, which does not have any financial impact and for which necessary Segment wise statement has been shown as per Accounting Standard - 17 (AS - 17). Inter-segment transfer prices are normally negotiated at cost or market prices whichever is lower with an overall optimisation objective of the Company. Revenue and expenses have been accounted based on their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on the reasonable basis, have been included under ??Un-allocable Expenses??

Secondary Segments

The Company sells its products mainly within India where the conditions prevailing are uniform. Hence disclosures w.r.t. Secondary segments have not been provided.

4.8.2. Segment-wise Capital Employed

The Fixed Assets used in the Company’s business or liabilities contracted cannot be classified as per reportable segments, as the Fixed Assets and Services are used interchangeably between segments hence it is not practically possible to provide segment-wise disclosures relating to Capital employed

4.9. Disclosure under AS-19: Leases

The Company has entered into operating lease arrangements as Lessee for certain facilities and office premises. The lease is non-cancellable and is for a period of 10 years and may be renewed for a further period of 10 years based on mutual agreement of the parties. The lease agreements does provide for any increase in the lease payments.

4.10. Investor Education and Protection Fund

There is no amount due and outstanding as at Balance Sheet date to be credited to the Investor Education and Protection Fund.

4.11. In the opinion of the Board of Directors, the Current Assets, Loans and Advances have value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the foregoing Balance Sheet and adequate provision for all known liabilities on the Company has been made.

4.12 Impairment of Assets (AS-28)

Based on exercise of impairment of assets undertaken by the management in due cognizance of paragraphs 5 to 13 of Accounting standard -28, the Company has concluded that no impairment loss is required to be booked.

4.13 Previous Year’s figures:

Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

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Mar 31, 2016

1. Term loan for expansion of project is secured by way of first charge, having pari-passu rights, on factory - land and building (Save and except stock and book debts), situated at one of the company''s location.

2. Car loan from bank is secured against hypothecation of Car.

*Working capital loan from bank is secured against hypothecation of Stock of Raw Materials, Stock in Process, Semi-Finished and Finished goods, Stores and Spares (not relating to plant and machinery), book debts.

3. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Enterprises, to whom the Company owes dues which are outstanding as at the Balance Sheet date. The information has been identified to the extent such parties have been identified on the basis of information available with the Company.

4. Financial Instruments

The Company has negligible exposure in Foreign Currency during the year and hence has not availed any financial instrument, viz. Derivatives and Forward Contract Instruments for hedging its risks and exposure to foreign currency fluctuations

5. Value of imports calculated on CIF basis: NIL (Previous Year: NIL)

6. Amounts remitted in foreign currency during the year on account of dividend: NIL (Previous year: NIL)

7. Earnings in Foreign Exchange: NIL (Previous Year: NIL)

8. Disclosure under AS-15: Employee Benefits

9. Defined Benefit Plan

During the Period under review Company has made contribution towards Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India.

Both are funded defined benefit plans for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company''s Gratuity Scheme. Vesting occurs upon completion of Five years of services.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Compensated Absences is recognized in the same manner as gratuity.

10. The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

11. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, Increments and other relevant factors.

12. The expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of assets management and historical result of the return on plan asset.

13. In absence of specific details of plan assets from LIC, the details of plan assets have not been furnished. The details of experience adjustment relating to Plan assets are not readily available in valuation report and hence are not furnished.

14. The following table set out the funded status and amounts recognized in Company''s financial statements as at March 31, 2016 for Defined Benefit Plan. (Disclosure as per AS-15)

15. Classification of Business Segments

Primary Segments

For better understanding of Company''s business, the Company has classified its business segments based on the respective end use of its products into Inorganic, Organic, Specialty, Pharmaceuticals & Agrochemical Intermediates, which does not have any financial impact and for which necessary Segment wise statement has been shown as per Accounting Standard - 17 (AS - 17). Inter-segment transfer prices are normally negotiated at cost or market prices whichever is lower with an overall optimization objective of the Company. Revenue and expenses have been accounted based on their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on the reasonable basis, have been included under "Un-allocable Expenses"

Secondary Segments

The Company sells its products mainly within India where the conditions prevailing are uniform. Hence disclosures w.r.t. Secondary segments have not been provided.

16. Segment-wise Capital Employed

The Fixed Assets used in the Company''s business or liabilities contracted cannot be classified as per reportable segments, as the Fixed Assets and Services are used interchangeably between segments hence it is not practically possible to provide segment-wise disclosures relating to Capital employed

17. Disclosure under AS-19: Leases

The Company has entered into operating lease arrangements as Lessee for certain facilities and office premises. The lease is non-cancellable and is for a period of 10 years and may be renewed for a further period of 10 years based on mutual agreement of the parties. The lease agreements does provide for any increase in the lease payments.

18. In the opinion of the Board of Directors, the Current Assets, Loans and Advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the foregoing Balance Sheet and adequate provision for all known liabilities on the Company has been made

19. Impairment of Assets (AS-28)

Based on exercise of impairment of assets undertaken by the management in due cognizance of paragraphs 5 to 13 of Accounting standard -28, the Company has concluded that no impairment loss is required to be booked.

20. Previous Year''s figures:

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2015

1. CORPORATE INFORMATION:

Seya Industries Ltd (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on BSE Limited, Kolkata Stock Exchange, and Ahmedabad Stock Exchange. The Company is engaged in manufacturing of Fine & Speciality chemicals Intermediates, Pharmaceutical Intermediates, Agrochemical Intermediates, Organic Chemical Intermediates and Inorganic Chemical Intermediates.

2. Rights, preferences and restrictions attached to shares

The Company has only one class of Equity Shares having a par value of Rs 10/- per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of Shareholders, except in case of interim dividend. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

3. The Company has not allotted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back during the period of five years immediately preceding the Balance Sheet date.

4. The Company has received share application money to allot 151,261,714 Non-Convertible Redeemable Preference Shares of Rs 10/- each.

5. Rupee Term Loan from banks comprises of loan taken for expansion of project of Rs3,700.29 Lakhs and Car loan of Rs 11.24 Lakhs.

6. Term loan for expansion of project is secured by way of first charge, having pari-passu rights, on factory - land and building (Save and except stock and book debts), situated at one of the company's location.

7. Car loan from bank is secured against hypothecation of Car.

8. Working capital loan from bank is secured against hypothecation of stock of raw materials, Stock in Process, Semi-Finished and Finished goods, Stores and Spares (not relating to plant and machinery), book debts.

9. Contingent liabilities and commitments to the extent not provided Rs in Lakhs

As at March As at March 31, 2015 31, 2014

Contingent Liabilities - -

Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for.

- Tangible Assets 25,081.11 3,600.51

TOTAL 25,081.11 3,600.51

10. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Enterprises, to whom the Company owes dues which are outstanding as at the Balance Sheet date. The information has been identified to the extent such parties have been identified on the basis of information available with the Company.

11. Financial Instruments

The Company has negligible exposure in Foreign Currency during the year and hence has not availed any financial instrument, viz. Derivatives and Forward Contract Instruments for hedging its risks and exposure to foreign currency fluctuations

12. Amounts remitted in foreign currency during the year on account of dividend: NIL (Previous year. NIL)

13. Earnings in Foreign Exchange: NIL (Previous Year. NIL). The Company has made Foreign Exchange gain on account of currency fluctuation as on date of Balance Sheet by an amount of Rs20.72 Lakhs (Previous Year. Rs 13.92 Lakhs), however the same has not been realised in Cash

14. Disclosure under AS-15: Employee Benefits

15. Defined Benefit Plan

During the Period under review Company has made contribution towards Employees' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India.

Both are funded defined benefit plans for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company's Gratuity Scheme. Vesting occurs upon completion of Five years of services.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Compensated Absences is recognised in the same manner as gratuity.

16. The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

17. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, Increments and other relevant factors.

18. The expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of assets management and historical result of the return on plan asset.

19. In absence of specific details of plan assets from LIC, the details of plan assets have not been furnished. The details of experience adjustment relating to Plan assets are not readily available in valuation report and hence are not furnished.

20. The following table set out the funded status and amounts recognised in Company's financial statements as at March 31, 2015 for Defined Benefit Plan. (Disclosure as per AS-15)

Rs in Lakhs

21. Classification of Business Segments

Primary Segments

For better understanding of Company's business, the Company has classified its business segments based on the respective end use of its products into Inorganic, Organic, Fine & Speciality, Pharmaceuticals & Agrochemical Intermediates, which does not have any financial impact and for which necessary Segment wise statement has been shown as per Accounting Standard - 17 (AS - 17). Inter-segment transfer prices are normally negotiated at cost or market prices whichever is lower with an overall optimisation objective of the Company. Revenue and expenses have been accounted based on their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on the reasonable basis, have been included under "Un-allocable Expenses"

Secondary Segments

The Company operates only in one geographical segment i.e. India, hence disclosures w.r.t. Secondary segments have not been provided.

22. Segment-wise Capital Employed

The Fixed Assets used in the Company's business or liabilities contracted cannot be classified as per reportable segments, as the Fixed Assets and Services are used interchangeably between segments hence it is not practically possible to provide segment-wise disclosures relating to Capital employed

23. Disclosures under AS-18: Related Party Disclosures

Details of Related Parties:

Description of Relationship Name of the Parties

Key Management Personnel (KMP) 1. Mr. Ashok G Rajani - Chairman & Managing Director

2. Mr. A. K. Bhowmik - Director

Company in which either of M/s. Universal Textile KMP or their Relatives can Waterproof Co. (India) in which exercise significant influence relatives of KMP are partners

24. Disclosure under AS-19: Leases

The Company has entered into operating lease arrangements as Lessee for certain facilities and office premises. The lease is non-cancellable and is for a period of 10 years and may be renewed for a further period of 10 years based on mutual agreement of the parties. The lease agreements does provide for any increase in the lease payments.

25. Investor Education and Protection Fund:

There is no amount due and outstanding as at Balance Sheet date to be credited to the Investor Education and Protection Fund.

26. Disclosure under Clause 32 of the Listing Agreement:

The Company does not have any subsidiaries hence the Disclosures under Clause 32 of the Listing Agreement is not applicable.

27. Previous Year's figures:

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2014

1.1. Corporate Information:

Seya Industries Ltd (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on BSE Limited, Delhi Stock Exchange, Kolkata Stock Exchange, and Ahmedabad Stock Exchange. The Company is engaged in manufacturing of Organic Intermediates, Inorganic Intermediates, Pharmaceutical intermediates, Agro Chemical Intermediates and Fine and Speciality Chemicals Intermediates.

2.1. Terms / Rights attached to Equity Shares:

The Company has only one class of Equity Shares having a par value of Rs.10/- per share. Each Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of Shareholders, except in case of interim dividend. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

2.2. The Company has not allotted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back during the period of five years immediately preceding the Balance Sheet date.

2.3. The Company has received share application money to allot 42,794,500 equity sharesof Rs.10/- each at a premium of Rs.5/- per share and 51,217,600 equity shares of Rs.10/- each at a premium of Rs.7/- per share.

3.1. Rupee Term Loan from banks comprises of loan taken for expansion of project of Rs.4,236.66 Lakhs and Car loan of Rs.21.09 Lakhs.

3.1.1. Term loan for expansion of project is secured by way of first charge, having pari-passu rights, on factory - land and building (Save and except stock and book debts), situated at one of the Company''s location.

4.1.2. Car loan from bank is secured against hypothecation of Car.

4.2. Terms of Repayments of Secured / Unsecured Loans:

5.1. Loan from Banks comprises of Working Capital Rupee Loan of Rs.1,380.80 Lakhs and Foreign Currency Loan of US$5.64 Lakhs (equivalent to Rs.336.31 Lakhs as calculated on the date of the Balance sheet) i.e. Buyer''s Credit:

5.1.1. Working Capital Loan from Bank is secured against Hypothecation of stock of Raw materials, Stock in Process, Semi- Finished and Finished goods, Stores and Spares (not relating to plant and machinery), Book debts.

5.1.2. Buyer''s Credit is secured by Lien on Fixed Deposits placed by the Company.

6. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS:

6.1. Contingent liabilities and commitments to the extent not provided:

in Lakhs

As at As at March 31, 2014 March 31, 2013

Contingent Liabilities - -

Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for

Tangible Assets 3,600.51 33.81

ToTAL 3,600.51 33.81

6.2. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006:

There are no Micro and Small Enterprises, to whom the Company owes dues which are outstanding as at the Balance Sheet date. The information has been identified to the extent such parties have been identified on the basis of information available with the Company.

6.3. Financial Instruments:

The Company has negligible exposure in Foreign Currency during the year and hence has not availed any financial instrument, viz. Derivatives and Forward Contract Instruments for hedging its risks and exposure to foreign currency fluctuations

6.4. Value of imports calculated on CIF basis: NIL (Previous Year: NIL)

6.5. Amounts remitted in foreign currency during the year on account of dividend: NIL (Previous year: NIL)

6.6. Earnings in Foreign Exchange: NIL (Previous Year: NIL). The Company has made Foreign Exchange gain on account of currency fluctuation as on date of Balance Sheet by an amount of ''13.92 Lacs(Previous Year: NIL), however the same has not been realised in Cash

6.7. Disclosure under AS-15: Employee Benefits

6.7.1. Defined Benefit Plan

During the Period under review Company has made contribution towards Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India.

Both are funded defined benefit plans for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per the Company''s Gratuity Scheme. Vesting occurs upon completion of Five years of Services.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Compensated Absences is recognised in the same manner as gratuity.

6.7.2. The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

6.7.3. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, Increments and other relevant factors.

6.7.4. The expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of assets management and historical result of the return on plan asset.

6.7.5. In absence of specific details of plan assets from LIC, the details of plan assets have not been furnished. The details of experience adjustment relating to Plan assets are not readily available in valuation report and hence are not furnished.

6.7.6. The following table set out the funded status and amounts recognised in Company''s financial statements as at March 31, 2014 for Defined Benefit Plan. (Disclosure as per AS-15):

6.7.7. Classification of Business Segments:

For better understanding of Company''s business, the Company has classified its business segments based on the respective end use of its products into Inorganic, Organic, Fine & Speciality, Pharmaceuticals & Agrochemical Intermediates, which does not have any financial impact and for which necessary Segment wise statement has been shown as per Accounting Standard - 17 (AS - 17). Inter-segment transfer prices are normally negotiated at cost or market prices whichever is lower with an overall optimisation objective of the Company. Revenue and expenses have been accounted based on their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on the reasonable basis, have been included under "Un-allocable Expenses"

6.7.8. Segment-wise Capital Employed:

The Fixed Assets used in the Company''s business or liabilities contracted cannot be classified as per reportable segments, as the Fixed Assets and Services are used interchangeably between segments hence it is not practically possible to provide segment-wise disclosures relating to Capital employed.

7.1. Disclosure under AS-19: Leases

The Company has entered into operating lease arrangements as Lessee for certain facilities and office premises. The lease is non- cancellable and is for a period of 1 year and may be renewed for a further period of 1 year based on mutual agreement of the parties. The lease agreements does provide for any increase in the lease payments.

7.2. Investor Education and protection Fund:

There is no amount due and outstanding as at Balance Sheet date to be credited to the Investor Education and Protection Fund.

7.3. Disclosure under Clause 32 of the Listing Agreement:

The Company does not have any subsidiaries hence the Disclosures under Clause 32 of the Listing Agreement is not applicable.

7.4. Previous Year''s figures:

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

1.1 Corporate Information:

Seya Industries Ltd (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Delhi Stock Exchange, BSE Limited, Kolkata Stock Exchange, and Ahmedabad Stock Exchange. The Company is engaged in manufacturing of organic and inorganic Chemicals

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Mar 31, 2012

A) Contingent Liabilities not provided for:-

Particulars 2011-12 2010-11

1. Estimated amount of contracts remaining to be executed on capital account and not provided for 325.00 285.00

Contingent Liabilities not provided for in respect of:

2. a) Central Excise (Matter Subjudice) 58.61 Nil

b) Sales Tax (under Appeal) Nil Nil

c) Income Tax (MAT) (Matter Subjudice) Nil Nil

d) Export Duty Nil Nil

e) Electricity Tax (Interest) Nil Nil

f) Labour Matters (Matter Sub-judice), to the extent quantifiable. Nil Nil

i) Aggregate value of the letter of credit outstanding 417.59 Nil

ii) Aggregate Value of Guarantees outstanding Nil Nil

b) Balances of Sundry Debtors and Creditors are subject to confirmation.

i) OTHERS:

2. Related Party & Key Management Personnel Disclosure under Accounting Standards 18:

1. Name of the Party Relationship

Mr. Ashok G Rajani Key Management Person

Mr. A. K. Bhowmik Key Managerial Person

3. Earnings Per Share:

Equity of the Company is employed partly in pre-commercial production activity and partly in commercial production activity which cannot be ascertained in exact sums. In the Circumstances EPS cannot be comparable.

4. During the year, Deferred Tax Assets/Liability is not provided as the management of the Company are not certain about reasonable time in which the timing difference would reverse. However, the amount of Deferred Tax Liability comes to Rs. 9834.44 Lakhs (Prev. Year Rs. 2876.35).

5. Disclosure as required under clause 32 of listing agreement have not been given as the company do not have any subsidiary.

6. Letters for year-end balance confirmation of sundry debtors and sundry creditors have been sent to the parties. In respect of confirmations received, the company is under process of scrutinizing and reconciling the balances.

7. The company has started commercial production for one of its products in the Organic Intermediate segment as on 01st December, 2011 while certain products still remained under construction and development. In the circumstances statement of Profit and Loss for the current year pertains to Business activities of the products whose commercial production has already commenced.

8. During the year ended 31st 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 statement. The adoption of revised schedule VI does not impact recognition and measurement principle followed for preparation of financial statement. However, it has significant impact on presentation and disclosures made in the financial statement. The Company has also reclassified the previous year's figures in accordance with the requirements applicable in the current year. In view of this reclassification certain figures of current year are not strictly comparable with those of the previous year.

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Mar 31, 2011

A) Contingent Liabilities not provided for:-

Particulars 2010-11 2009-10

1 Estimated amount of contracts remaining to Rs. 285 Rs. 275 be executed on capital account and not Lacs Lacs provided for

2 Contingent Liabilities not provided for in respect of: NIL NIL

a) Central Excise (Matter Subjudice) NIL NIL

b) Sales Tax (under Appeal) NIL NIL

c) Income Tax (MAT) (Matter Subjudice) NIL NIL

d) Export Duty NIL NIL

e) Electricity Tax (Interest) - NIL

f) Labour Matters (Matter Subjudice), to the extent quantifiable. NIL NIL i) Aggregate value of the letter of credit outstanding NIL NIL

ii) Aggregate Value of Guarantees outstanding NIL NIL

b) Balances of Sundry Debtors and Creditors are subject to confirmation.

c) During the year under review in addition to and in continuation of contribution of the long term funds provider, towards the assignment of the debts of the bank and financial institutions, in its favour, as per existing contract, additionally provided funds to the tune of Rs. 15126.17 Lacs, as at 31st March 2011, towards the company's rationalization process, and accordingly the management of the company had successfully negotiated with the fund provider and converted their entire contribution into equity shares of the Company. During the Annual General Meeting in September 2010 some of the members/Shareholders of the Company had requested that the shares to these funds providers be allotted at a premium instead of at par. The Management of the company has successfully negotiated and has executed necessary contract based on which the company has agreed to allot 4,27,94,500 equity shares at a premium of Rs 5/- per share and 5,12,17,600 equity shares at a premium of Rs 7/- per share which at present will be treated as Application Money pending allotment and with due compliance of provisions of the Companies Act 1956 and Stock Exchanges. After allotment the said shares will have pari passu rights with other shares of the Company. The said equity shares when allotted will be treated as consideration received in cash as per Circular no.8/32/(75) 77-CL-V,dated 13th March 1978 issued by the Company Law Board Department

D) OTHERS:

1. The Company has not received information from the creditors regarding their status under Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure relating to amount unpaid at the end of the year under this Act has not been given. There are no claims for interest on delayed payment.

2. Related Party & Key Management Personnel Disclosure under Accounting Standards 18

1. Name of the Party Relationship

Mr. Ashok G Rajani Key Management Person

B. Transaction with Related Parties

Sr. Particulars Key Management Personnel No. 1. Remuneration to Directors 17,60,000/-

3. The Company's business activity falls within a single primary segment,viz., Manufacture of Organic Chemicals. As such there is no reporting segment as per Accounting Standard 17

4. Earning Per Share

The Company reports basic and diluted earning per share (EPS) in accordance with accounting Standard - 20 issued by the Institute of Chartered Accountants of India. The Basic EPS has been computed by dividing the income available to equity share holders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS have been computed using the weighted average number of equity shares and diluted potential equity shares outstanding at the end of the year.

5. The Company has started its commercial production on 2nd March, 2011 and accordingly expenses incurred till that date, after deducting income thereon, has been transferred to Capital Expenditure pending allocation from the Profit & Loss Account. Thus Profit & Loss Account relates to the period from 2nd March, 2011 to 31st March, 2011.

6. Previous year's figures have been regrouped and rearranged wherever considered necessary to make them comparable with those of the current year.

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Mar 31, 2010

A) Contingent Liabilities not provided for:-

Particulars 2009-10 2008-09

1 Estimated amount of contracts remaining to be Rs 275 lacs Rs 16 lacs executed on capital account and not provided for

2 Contingent Liabilities not provided for in respect of: NIL

a) Central Excise (Matter Subjudice) NIL NIL

b) Sales Tax (under Appeal) NIL NIL

c) Income Tax (MAT) (Matter Subjudice) NIL NIL

d) Export Duty NIL NIL

e) Electricity Tax (Interest) NIL

f) Labour Matters (Matter Subjudice), to the extent quantifiable. NIL NIL

i) Aggregate value of the letter of credit outstanding NIL NIL

ii) Aggregate Value of Guarantees outstanding NIL NIL

b) Balances of Sundry Debtors and Creditors are subject to confirmation.

c) During the year under review in addition to and in continuation of contribution of the fund provider, as per existing contract, additionally provided funds to the tune of Rs. 13078.24 lacs towards the companys rationalization process, and accordingly the management of the Company successfully negotiated with the fund provider and converted their entire contribution into equity shares of the Company. The Company has executed necessary contract based on which your company has agreed to allot 13,07,82,400 equity shares at par which at present will be treated as application money pending allotment and with due compliance of provisions of the Companies Act 1956 and terms and conditions of listing entered with Stock Exchanges. After allotment the said shares will have pari passu rights with other shares of the Company. The said equity shares when allotted will be treated as consideration received in cash as per Circular no.8/32/(75) 77-CL-V,dated 13th March 1978 issued by the Company Law Board Department

D) OTHERS:

1. The Company has not received information from the creditors regarding theit status under Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure relating to amount unpaid at the end of the year.under this Act has not been given. There are no claims for interest on delayed payment.

2. A Related Party Disclosure under Accounting Standards 18

a) List of Related Parties NIL

b) Associate Companies

Sriman Petrochemicals Limited Key Management personnel

c) Other parties related to key personnel NIL B. Transaction with Related Parties NIL

3. The Companys business activity falls within a single primary segment.viz., Manufacture of Organic Chemicals. As such there is no reporting segment as per Accounting Standard 17

4. The Company has not provided depreciation for the year under review in view of the fact that the plant and machinery including building and other assets of the Company are under rationalisation for obtaining quality production. Accordingly, based on the advise received by the Company (as per law laid down in Liquidator of Pursa Ltd v/s. C I T (25 ITR 265 SC)) no depreciation on any of the assets have been provided.

5. Previous years figures have been regrouped and rearranged wherever considered necessary to make them comparable with those of the current year.

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Mar 31, 1993

The Company has prepared a statement of "Pre-Operative Project Expenditure pending Allocation" instead of a Profit & Loss A/c as the Project is under construction. Necessary details as per part II of Schedule VI to the Companies Act, 1956 have been disclosed in the said statement.

In the opinion of the Directors, the Company is not liable to pay any amount by way of Gratuity. As such, no provision has been made for Gratuity in the Books of Account.