Notes to Accounts of TECIL Chemicals & Hydro Power Ltd.

Mar 31, 2025

h) Provisions and Contingencies

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

Contingent liabilities not provided for, are disclosed by way of Notes to Accounts with particulars of the nature
and quantum, wherever possible, of such liabilities.

i) Segment Reporting: -

The Company has carried out no trading activity and hence there is no separate segment.

j) Earnings per Share:-

The Company presents basic earnings per share ("EPS") data for its equity shares. Basic EPS is calculated by
dividing the profit and loss attributable to equity shareholders of the Company by the average number of equity
shares outstanding during the period.

k) Accounting for taxes on Income:-

In view of the accumulated losses, the Management has not disclosed Income tax expense in its financial
statements. Hence the accounting treatment of income tax as required under Ind AS 12 issued by ICAI is not
applicable.

l) Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS-7 "Statement of cash flows", whereby profit/
(loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flows from operating, investing and financing activities of the
company are segregated based on the available information.

NOTES FORMING PART OF ACCOUNT:

16. Disputed liabilities not provided for:

Central Excise Refund

As per the order of the Asst. Commissioner of Central Excise, Kottayam Division, Kottayam dated 23.12.1998
holding that Calcium Carbide manufactured and used captive consumption in the manufacture of acetylene black
within the factory is not liable for levy of excise duty, the company is entitled to a refund of excise duty of
Rs.82,89,691/- in respect of the period from April, 1978 to July, 1983.

This was confirmed by the Hon''ble CEGET, New Delhi as per the order No.A/1076/02 NB (D) dated 24.10.2002.
Based on the above order the company filed a refund claim for Rs.82,86,691/- before the Deputy Commissioner
of Central Excise, Kottayam Division on 30.01.2003. However, the Deputy Commissioner allowed only
Rs.37,99,198/-as refund and the same was recognized as income in the Profit & Loss account in the year 2002¬
2003. The claim for the balance amount of Rs.44,86,993/- was rejected by the Excise authorities for want of proof
payment of duty.

Against this order the company had filed an appeal before the Commissioner of Central Excise and Customs
(Appeals) Cochin on 22-10-2003 and the appeal was disposed of in favour of the Company.

The Department has gone in appeal. In view of the above, the claim for the refund of the balance amount of
Rs. 44,86,993/- has not been recognized in the accounts. Company has also filed appeal before CEGAT, New Delhi
for release of balance amount, which is pending for disposal.

17. Disclosure of transactions with Related parties, identified on the basis of representations made by key
managerial personnel and information available with the Company.

Relationship Entitieswhere control exist: Nil

I. Associate and Group Companies: Nil

II. Key Management Personnel:

Lizhyamma Kurian

Varghese Kurian

Shaji Mathew Kalladayil

Madhavan Thundil Biju

Prem Kumar Sankara Panicker

Parameswaran Radhakrishnan Nair

Puthuparambil Parameswaran Pillai Vijayakumar

Jeeben Varghese Kurian

Ramasubramonia Iyer

CS Jofin John

25. Details of dues to micro and small enterprises as defined under MSMED Act, 2006

There is no defaults and overdue amount payable to suppliers who have intimated about their status as Micro
and Small Enterprises as per the provisions of Micro Small and Medium Enterprises Development Act 2006
(MSMED Act, 2006).

26. The Ministry of corporate affairs (MCA) has issued a notification (Companies account Amendment rule 2021)
which is effective from 1st April 2023, states that every company which uses accounting software for maintain
its books of account shall use only the accounting software where there is a feature of recording audit trail of
each and every transaction and further creating an edit log of each change made to books of account along
with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The company uses Tally Prime Edit Log Release 2.1 which has feature of recording audit trail edit log facility as
required by MCA and has been operative throughout the financial year for the transaction recorded in the
software.

27. The Company has full time Company Secretary as required u/s 203 of the Companies Act, 2013 during the

year.

28. The company has not advanced/loaned/invested funds to any entities including foreign entities
(intermediaries), with the understanding that the intermediary shall directly or indirectly lend or invest in other
entities by or on behalf of the company (ultimate Beneficiaries). Further company has not provided any
guarantee, security on behalf of the ultimate beneficiaries.

29. The company has not received funds from any entities including foreign entities (funding parties), with the
understanding that the company shall directly or indirectly lend or invest in other person or entities by or on
behalf of the funding parties (ultimate Beneficiaries). Further company has not provided any guarantee,
security on behalf of the ultimate beneficiaries.

30. Contingent Liabilities:

The Company has made construction including infrastructure developments on the lease hold land. The
Government of Kerala vide G.O 117/2015 dated has resumed the leasehold land. The Company has filed
petition before the Hon''ble High court of Kerala claiming compensation for the infrastructure and
improvement made by the Company on the lease land, which is pending before the Hon''ble High court of
Kerala. Hence necessary entry in the books of accounts will be made on finalization of compensation matter.

31. Other matters:

a. Advance for land at Chingavanam:

An advance of Rs. 10,00,00,000/- was received from M/s. Kayaltheeram Builders and Realtors India Private
Limited for sale of land. Execution of deed is pending.

b. Arbitration Award:

An Arbitration Award passed by the Hon''ble Arbitrator on 09.12.2015 directing the Company to pay a sum of
Rs. 79.50 Lakhs in the matters of ARC No.4 of 2014 of A, R.38/2011 of the High Count of Kerala in the Arbitration
proceedings between Mr. T Baburaj and Company. Against this Award, the company as well as Mr. Baburaj
has filed Appeal before the District Court, Kottayam. Hence no provision has been made in the accounts.

c. Dues to Small Scale Industrial undertakings:

There are no outstanding dues as defined under the Interest on Delayed Payments of Small Scale and Ancillary
Industrial Undertaking Act, 1933 and section 3(i) of the Industrial (Development and Regulation) Act, 1951.

d. The Company has filed an appeal against the order No. 8501/14 dated 29.06.2016 of the Additional Tahsildar,
Kottayam directing to pay Rs 10,52,337/- towards penalty and value of sand removed from lease land.

32. Figures of the previous year have been regrouped / rearranged wherever necessary and are given in bracket
unless otherwise specified. The Company has completed the above accounts based on the revised / modified
Schedule III applicable for the accounting period 2022-23. The disclosure requirements are made in the notes
to accounts or by way of additional statements. The other disclosures as required by the Companies Act are
made in the notes to accounts.

As per attached report of even date

For S R PAI & CO For and behalf of Board of Directors

CHARTERED ACCOUNTANTS

FRN:0010793S

Sd/-

Sd/- Sd/-

CA S Rajeeva Pai Varghese Kurian SRS lyer,CFO

(Partner) Chairman and Managing Director

Membership No: 214230 DIN No.: 01114947

UDIN:25214230BMJLGT2573

Sd/- Sd/-

ShajiK Mathew JofinJohn

Whole-time Director Company Secretary
DIN No.:01866682 M.No:A47891

Place: Kochi
Date:26.05.2025

---

Mar 31, 2024

h) Provisions and Contingencies

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

Contingent liabilities not provided for, are disclosed by way of Notes to Accounts with particulars of the nature and quantum, wherever possible, of such liabilities.

i) Segment Reporting: -

The Company has carried out no trading activity and hence there is no separate segment.

j) Earnings per Share:-

The Company presents basic earnings per share ("EPS") data for its equity shares. Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the Company by the average number of equity shares outstanding during the period.

k) Accounting for taxes on Income: -

In view of the accumulated losses, the Management has not disclosed Income tax expense in its financial statements. Hence the accounting treatment of income tax as required under Ind AS 12 issued by ICAI is not applicable.

l) Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS-7 "Statement of cash flows", whereby profit/ (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available information.

NOTES FORMING PART OF ACCOUNT:

16. Disputed liabilities not provided for:

Central Excise Refund

As per the order of the Asst. Commissioner of Central Excise, Kottayam Division, Kottayam dated 23.12.1998 holding that Calcium Carbide manufactured and used captive consumption in the manufacture of acetylene black within the factory is not liable for levy of excise duty, the company is entitled to a refund of excise duty of Rs.82,89,691/- in respect of the period from April, 1978 to July, 1983.

This was confirmed by the Hon''ble CEGET, New Delhi as per the order No.A/1076/02 NB (D) dated 24.10.2002. Based on the above order the company filed a refund claim for Rs.82,86,691/- before the Deputy Commissioner of Central Excise, Kottayam Division on 30.01.2003. However, the Deputy Commissioner allowed only Rs.37,99,198/-as refund and the same was recognized as income in the Profit & Loss account in the year 20022003. The claim for the balance amount of Rs.44,86,993/-was rejected by the Excise authorities for want of proof payment of duty.

Against this order the company had filed an appeal before the Commissioner of Central Excise and Customs (Appeals) Cochin on 22-10-2003 and the appeal was disposed of in favour of the Company.

25. Details of dues to micro and small enterprises as defined under MSMED Act, 2006

There is no defaults and overdue amount payable to suppliers who have intimated about their status as Micro and Small Enterprises as per the provisions of Micro Small and Medium Enterprises Development Act 2006 (MSMED Act, 2006).

26. The Ministry of corporate affairs (MCA) has issued a notification (Companies account Amendment rule 2021) which is effective from 1st April 2023, states that every company which uses accounting software for maintain its books of account shall use only the accounting software where there is a feature of recording audit trail of each and every transaction and further creating an edit log of each change made to books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The company uses Tally Prime Edit Log Release 2.1 which has feature of recording audit trail edit log facility as required by MCA and has been operative throughout the financial year for the transaction recorded in the software.

27. The Company has full time Company Secretary as required u/s 203 of the Companies Act, 2013 during the

year.

28. The company has not advanced/loaned/invested funds to any entities including foreign entities (intermediaries), with the understanding that the intermediary shall directly or indirectly lend or invest in other entities by or on behalf of the company (ultimate Beneficiaries). Further company has not provided any guarantee, security on behalf of the ultimate beneficiaries.

29. The company has not received funds from any entities including foreign entities (funding parties), with the understanding that the company shall directly or indirectly lend or invest in other person or entities by or on behalf of the funding parties (ultimate Beneficiaries). Further company has not provided any guarantee, security on behalf of the ultimate beneficiaries.

30. Contingent Liabilities:

The Company has made construction including infrastructure developments on the lease hold land. The Government of Kerala vide G.O 117/2015 dated has resumed the leasehold land. The Company has filed petition before the Hon''ble High court of Kerala claiming compensation for the infrastructure and improvement made by the Company on the lease land, which is pending before the Hon''ble High court of Kerala. Hence necessary entry in the books of accounts will be made on finalization of compensation matter.

31. Other matters:

a. Advance for land at Chingavanam:

An advance of Rs. 10,00,00,000/- was received from M/s. Kayaltheeram Builders and Realtors India Private Limited for sale of land. Execution of deed is pending.

b. Arbitration Award:

An Arbitration Award passed by the Hon''ble Arbitrator on 09.12.2015 directing the Company to pay a sum of Rs. 79.50 Lakhs in the matters of ARC No.4 of 2014 of A, R.38/2011 of the High Count of Kerala in the Arbitration proceedings between Mr. T Baburaj and Company. Against this Award, the company as well as Mr. Baburaj has filed Appeal before the District Court, Kottayam. Hence no provision has been made in the accounts.

c. Dues to Small Scale Industrial undertakings:

There is no outstanding dues as defined under the Interest on Delayed Payments of Small Scale and Ancillary Industrial Undertaking Act, 1933 and section 3(i) of the Industrial (Development and Regulation) Act, 1951.

d. The Company has filed an appeal against the order No. 8501/14 dated 29.06.2016 of the Additional Tahsildar, Kottayam directing to pay Rs 10,52,337/- towards penalty and value of sand removed from lease land.

32.Figures of the previous year have been regrouped / rearranged wherever necessary and are given in bracket unless otherwise specified. The Company has completed the above accounts based on the revised / modified Schedule III applicable for the accounting period 2022-23. The disclosure requirements are made in the notes to accounts or by way of additional statements. The other disclosures as required by the Companies Act are made in the notes to accounts.

As per attached report of even date

For S R PAI & CO For and behalf of Board of Directors

CHARTERED ACCOUNTANTS

FRN:0010793S

Sd/-

Sd/- Sd/-

CA S Rajeeva Pai Varghese Kurian SRS lyer,CFO

(Partner) Chairman and Managing Director

Membership No: 214230 DIN No.: 01114947

UDIN:24214230BKEKMM1106

Sd/- Sd/-

ShajiK Mathew JofinJohn

Whole-time Director Company Secretary DIN No.:01866682 M.No:A47891

Place: Kochi Date:21.05.2024

---

Mar 31, 2023

3. Contingent Liabilities:

The Company has made construction including infrastructure developments on the lease hold land. The Government of Kerala vide G.O 117/2015 dated has resumed the leasehold land. The Company has filed petition before the Hon''ble High court of Kerala claiming compensation for the infrastructure and improvement made by the Company on the lease land, which is pending before the Hon''ble High court of Kerala. Hence necessary entry in the books of accounts will be made on finalization of compensation matter.

4. Other matters:

A. Advance for land at Chingavanam:

An advance of Rs. 10,00,00,000/- was received from M/s Kayaltheeram Builders and Realtors India Private Limited for sale of land. Execution of deed is pending.

B. Arbitration Award:

An Arbitration Award passed by the Hon''ble Arbitrator on 09.12.2015 directing the Company to pay a sum of Rs. 79.50 Lakhs in the matters of ARC No.4 of 2014 of A,R.38/2011 of the High Count of Kerala in the Arbitration proceedings between Mr. T Baburaj and Company. Against this Award, the company as well as Mr. Baburaj has filed Appeal before the District Court, Kottayam. Hence no provision has been made in the accounts.

C. Dues to Small Scale Industrial undertakings:

There is no outstanding dues as defined under the Interest on Delayed Payments of Small Scale and Ancillary Industrial Undertaking Act, 1933 and section 3(i) of the Industrial (Development and Regulation)Act, 1951.

D. The Company has filed an appeal against the order No. 8501/14 dated 29.06.2016 of the Additional Tahsildar, Kottayam directing to pay Rs. 10,52,337/- towards penalty and value of sand removed from lease land. The Company has remitted total demand including Interest amounting to Rs. 14,19,758/- by way of Demand Draft on 20.07.2022.

5. Fundamental accounting assumption regarding Going Concern.

The Board of Directors of the Company has been continuously exploring new avenues of business opportunities to deploy its surplus funds. Till such time, the Company has utilized its surplus funds by giving interest bearing Inter- Corporate Deposits. Since the substratum of the Company is intact, the Accounts of the Company have been prepared on ''going concern'' basis.

14. Disclosure of transactions with Related parties, as required by Accounting Standard 18 as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

Relationship Entities where control exist: Nil

I. Associate and Group Companies : Nil

II. Key Management Personnel:

Lizhyamma Kurian,

Varghese Kurian,

Shaji Mathew Kalladayil,

Madhavan Thundil Biju,

Prem Kumar Sanakara Panicker Parameswaran Radhakrishnan Nair,

Toby Antony (Resigned on 09-11-2022)

Puthuparambil Parameswaran Pillai Vijayakumar,

Jeeben Varghese Kurian.

CS Muhammed Rishad Mustafa Ramasubramonia Iyer

15. In view of the accumulated losses, the Management has not provided deferred tax assets as well as deferred

tax liabilities. Hence the disclosure in respect of accounting treatment of income tax as required under Ind AS 12 issued by ICAI is not done.

16. Figures of the previous year have been regrouped / rearranged wherever necessary and are given in bracket

unless otherwise specified. The Company has completed the above accounts based on the revised / modified Schedule III applicable for the accounting period 2022-23. The disclosure requirements are made in the notes to accounts or by way of additional statements. The other disclosures as required by the Companies Act are made in the notes to accounts.

As per attached report of even date

For S R PAI & CO For and behalf of Board of Directors

CHARTERED ACCOUNTANTS

FRN:0010793S

Sd/-

Sd/-

CA S Rajeeva Pai Varghese Kurian

(Partner) Chairman and Managing Director

Membership No: 214230 DIN No.: 01114947

Sd/-

Shaji K Mathew Director

DIN No.: 01866682

Place: Cochin Date:27/05/2023

---

Mar 31, 2015

1. Disputed liabilities not provided for:

Central Excise Refund

As per the order of the Asst. Commissioner of Central Excise, Kottayam Division, Kottayam dated 23.12.1998 holding that Calcium Carbide manufactured and used captive consumption in the manufacture of acetylene black within the factory is not liable for levy of excise duty, the company is entitled to a refund of excise duty of Rs.82,89,691/- in respect of the period from April 1978 to July, 1983.

This was confirmed by the Hon'ble CEGAT, New Delhi as per the order No.A/1076/02 NB (D) dated 24.10.2002. Based on the above order the company filed a refund claim for Rs.82,86,691/- before the Deputy Commissioner of Central Excise, Kottayam Division on 30.01.2003. However the Deputy Commissioner allowed only Rs.37,99,198/- as refund and the same was recognized as income in the Profit & Loss account in the year 2002-2003. The claim for the balance amount of Rs.44,86,993/- was rejected by the Excise authorities for want of proof for payment of duty.

Against this order the company had filed an appeal before the Commissioner of Central Excise and Customs (Appeals) Cochin on 22-10-2003 and the appeal was disposed of in favour of the Company.

The Department has gone in Appeal. In view of the above, the claim forthe refund of the balance amount of Rs. 44,86,993/- has not been recognized in the accounts. Company has also filed appeal before CEGAT, New Delhi for release of balance amount, which is pending for disposal.

2. Contingent Liabilities:

The Company had acquired lease hold land and invested a sum of Rs. 1.76 Lakhs thereon. The Government has taken decision to resume to land vide G.0.117/2015 dated 20.3.2015.

3. Other matters:

A. Intercorporate Deposit:

The Company has given Inter-corporate Deposits to Rashtriya Metal Industries Ltd. Rs.225 Lakhs, Vindhyachal Hydro Power Ltd. Rs.50 Lakhs, Indian Energen Ltd Rs.62 Lakhs and D.S. Kulkarni Developers Ltd Rs.75 Lakhs. These Inter-corporate deposits have been made with the aforesaid Companies against security of Post dated Cheques. The Company is receiving interest on the deposits regularly.

B. Survey of freehold land of the Company at Chingavanam:

The independent Directors of the Company had conducted physical survey of the freehold land at Chingavanam during the previous year and no discrepancy has been found by them.

C. Advance given to parties:

The Company has given recoverable advance to Mr. Joseph Manual Rs.10 Lakhs. The company is expecting to recover the advances soon.

D. Sale of surplus land at Chingavanam:

The Company had entered into an agreement for sale of surplus land at Chingavanam with some parties who had paid a sum of Rs. 6 Crores as advance. However they defaulted in making the balance consideration as per agreement for sale dated 4.7.2012 in spite of extension of time granted to them. The said agreement was cancelled in terms of clause 8 thereof and the Company refunded Rs. 5 Crores by way of Cheques, after recovering Rs. 1 Crore towards opportunity loss, claim, etc. However the Cheques were returned with remark "REFUSED" on the envelope by Postal Department. The Company maintains that the amount of Rs. 5 Crores is still payable to the party.

E. Due to Small Scale Industrial undertakings.

There is no outstanding dues as defined under the Interest on Delayed Payments of Small Scale and Ancillary Industrial Undertaking Act, 1933 and section 3(i) of the Industrial (Development and Regulation) Act, 1951.

4. Current Assets

4.1. As the Company has been under Lockout since July 1999, dues under the heads Sundry Debtors, Loans and Advances and Current Liabilities including Sundry Creditors are subject to confirmation.

5.2. Sundry Debtors include an amount of Rs.36,18,754/- (Rs.95,73,047/-) due for a period exceeding three years. The Company has filed suits before judicial authorities for recovery of dues. During the current year, the Company has adjusted the balance of the receivable against the provision created earlier.

4.3. A sum of Rs.7,193/-was lying as balance in Central Bank of India for years. Since there was no transactions with them for many years, now it is understand that the Bank has written back it as their charges. Accordingly the balance is treated as bank charges.

5. Fundamental accounting assumption regarding Going Concern.

As pending issues inter-alia resumption of power supply, grant of Financial Assistance and other incentives from State Government and other concerned Authorities remain unresolved, the chances of early resumption of manufacturing activities of viable plants receded. The Company has disposed off its Factory Buildings, Plant & Machineries etc at Chingavanam during the year 2011-12. The above conditions indicate the existence of material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern.

6. The Companies in which the Directors are associated have filed the Annual Returns and did not make any default in the repayment of deposits if any fallen out. On the basis of representations received from the Directors, none of the Directors attract disqualifications under section 164 of the Companies Act, 2013.

7. The Company had no full time Company Secretary during the year under report due to layoff /lockout.

8. Others

8.1 Basic earning per Equity Share and Diluted earning per Equity Share have been computed by dividing net profit by the weighted average number of equity shares outstanding for the year.

8.2 Calculation of basic Earnings per share.

9. Disclosure of transactions with Related parties, as required by Accounting Standard 18 as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

Relationship Entities where control exist: Citric India Limited

Associate and Group Companies: Chemo Pharma Labs Limited.

I. Key Management Personnel:

(1) Shri. S B Somani, Chairman & Managing Director

(2) Shri S.R.S. Iyer, Chief Financial Officer

10. The Sundry Debtors, Sundry Creditors and Loans and Advances are subject to confirmation, reconciliation, and adjustments. The Management is of the opinion that such reconciliation or adjustments if any will not materially affect the accounts.

11. Traveling Expenses of Directors, which are incurred for purposes otherthan business.

12. In view of the accumulated losses, the Management has not provided deferred tax assets as well as deferred tax liabilities. Hence the disclosure in respect of accounting of taxes on income as required under Accounting Standard 22 issued by ICAI is not done.

13. Figures are given in thousands unless otherwise stated

14. Figures of the previous year have been regrouped / rearranged wherever necessary and are given in bracket unless otherwise specified. The Company has completed the above accounts based on the revised / modified Schedule III applicable for the accounting period 2014-15. The disclosure requirements are made in the notes to accounts or by way of additional statements. The other disclosures as required by the Companies Act are made in the notes to accounts.

---

Mar 31, 2014

1. Disputed liabilities not provided for:

Central excise Refund

As per the order of the Asst. Commissioner of Central Excise, Kottayam Division, Kottayam dated 23.12.1998 holding that Calcium Carbide manufactured and used captive consumption in the manufacture of acetylene black within the factory is not liable for levy of excise duty, the Company is entitled to a refund of excise duty of Rs.82,89,691/- in respect of the period from April, 1978 to July, 1983.

This was confirmed by the Hon''ble CEGAT, New Delhi as per the order No.A/1076/02 NB (D) dated 24.10.2002. Based on the above order the Company filed a refund claim for Rs.82,86,691/- before the Deputy Commissioner of Central Excise, Kottayam Division on 30.01.2003. However the Deputy Commissioner allowed only Rs.37,99,198/- as refund and the same was recognized as income in the Profit & Loss account in the year 2002-2003. The claim for the balance amount of Rs.44,86,993/- was rejected by the Excise authorities for want of proof for payment of duty.

Against this order the Company had filed an appeal before the Commissioner of Central Excise and Customs (Appeals) Cochin on 22-10-2003 and the appeal was disposed of in favour of the Company.

The Department has gone in Appeal. In view of the above, the claim for the refund of the balance amount of Rs. 44,86,993/- has not been recognized in the accounts. Company has also filed appeal before CEGAT, New Delhi for release of balance amount, which is pending for disposal.

Managerial Remuneration:

Paid to Shri. S. B. Somani, Chairman and Managing Director:

Particulars Amount (In Rupees)

Salary 7,20,000 (7,20,000) Perquisites 4,32,000 (4,32,000) Contribution to Provident Fund 86,400 (86,400)

Total 12,38,400 (12,38,400)

Contingent Liabilities:

The Company had acquired lease hold land and invested a sum of Rs.1.76 Lakhs thereon. Our request for renewal of lease land is pending with Government.

Other matters:

A. DLF Settlement:

During the previous year under report the Company has entered into settlement agreement with DLF Limited in pending arbitration matter. A joint settlement application also was filed at that time. The Company has made payment of Rs.1.76 Crores during the current year in addition to Rs.5.00 Crores paid earlier. The effect of the settlement is given during the year as per Arbitral Tribunal, Kochi order dated 04.11.2013 and shown as "Additional payment in settlement of Creditors" amounting to Rs.6.76 Crores.

B. Inter Corporate Deposit:

The Company has given Inter-corporate Deposits to M/s. Rashtriya Metal Industries Ltd. Rs.200 Lakhs, M/s. Vindhyachal Hydro Power Ltd. Rs.50 Lakhs, M/s. Indian Energen Ltd Rs.69 Lakhs and M/s. D.S. Kulkarni Developers Ltd Rs.119 Lakhs. These Inter-corporate deposits have been made with the aforesaid Companies against security of Post dated Cheques. The Company is receiving interest on the deposits regularly.

C. Survey of freehold land of the Company at Chingavanam:

The independent Directors of the Company had conducted physical survey of the freehold land at Chingavanam during the previous year and no discrepancy has been found by them.

D. Advance given to parties:

The Company has given recoverable advances to Mr. Joseph Manual Rs.10 Lakhs and Mr. Sudhir Kale Rs.1.01 Lakhs. The Company is expecting to recover the advances soon.

E. Sale of surplus land at Chingavanam:

The Company had entered into an Agreement for Sale with some party for sale of surplus land on 04/07/2012 and due to default in making the balance sale consideration as per Agreement for Sale, the said Agreement was cancelled on 12/03/2013. The Company maintains that refund of advance of Rs.5 Crores is still payable to the parties of the cancelled Agreement

F. Due to Small Scale industrial undertakings.

There is no outstanding dues as defined under the Interest on Delayed Payments of Small Scale and Ancillary Industrial Undertaking Act, 1933 and Section 3(i) of the Industrial (Development and Regulation) Act, 1951.

G. Loans and Advances

Include an amount of Rs.1,18,69,600/- (Rs. 1,12,00,000/-) paid to Associate Concerns as per Note No.16.

2. Current Assets

2.1. As the Company has been under Lockout since July 1999, dues under the heads Sundry Debtors, Loans and Advances and Current Liabilities including Sundry Creditors are subject to confirmation.

2.2. Sundry Debtors include an amount of Rs.95,73,047/- (Rs. 1,27,94,135/-) due for a period exceeding three years against which provision of Rs.59,54,293/- has been made towards Doubtful Debts. The Company has filed suits before different judicial authorities against certain.debtors for recovery of dues amounting to Rs.42,91,787/- (Rs.42,91,787/-). During the current year, the Company has adjusted the part of the receivable against the provision created earlier.

Fundamental accounting assumption regarding Going Concern.

3. As pending issues inter-alia resumption of power supply, grant of Financial Assistance and other incentives from State Government and other concerned Authorities remain unresolved, the chances of early resumption of manufacturing activities of viable plants receded. The Company has disposed off its Factory Structure, Plant & Machineries etc at Chingavanam during the financial year 2011-12 and 2013-14. The above conditions indicate the existence of material uncertainty that may cast significant doubt about the Company''s ability to continue as a going concern.

Quantitative Details ,

4. Information pursuant to Para 3, 4C and 4D of Schedule VI, Part II to the Companies Act, 1956 are given below:

NOT APPLICABLE (as the Company has no Licensed / installed capacity)

Traded Goods -

A. CHEMICALS QUANTITY (KG.) VALUE (Rs.''000)

Opening Stock Nil (Nil) Nil (Nil)

Purchases Nil (Nil) Nil (Nil)

Sales Nil (Nil) Nil (Nil) Closing Stock Nil (Nil) Nil (Nil)



During 2014 During 2013

5. Raw Materials Consumed NIL NIL

5.1 Percentage of consumption of indigenous / imported raw - Materials, packing materials, spare parts and components NIL NIL

6. Expenditure in Foreign Currency NIL 2,704

7. CIF value of Imports - Raw materials/ Spares / Capital goods NIL NIL

8. Capital Commitments NIL

9. The Companies in which the Directors are associated have filed the Annual Returns and did not make any default in the repayment of deposits if any fallen out. On the basis of representations received from the Directors, none of the Directors attract disqualifications under Section 274(1 )(g) of the Companies Act, 1956.

10. The Company had no full time Company Secretary as required u/s 383A of the Companies Act, 1956 during the year under report due to layoff / lock out.

11. Others

11.1 Basic earning per Equity Share and Diluted earning per Equity Share have been computed by dividing net profit by the weighted average number of equity shares outstanding for the year.

12. Disclosure of transactions with Related parties, as required by Accounting Standard 18 as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

13. The Sundry Debtors, Sundry Creditors and Loans and Advances are subject to confirmation, reconciliation, and adjustments. The Management is of the opinion that such reconciliation or adjustments if any will not materially affect the accounts.

14. Traveling Expenses include foreign travel expenses of Directors, which are incurred for purposes other than business.

15. In view of the accumulated losses, the Management has not provided deferred tax assets as well as deferred tax liabilities. Hence the disclosure in respect of accounting of taxes on income as required under Accounting Standard 22 issued by ICAI is not done.

16. Figures are given in thousands unless otherwise stated

17. Figures for the previous year have been regrouped / rearranged wherever necessary and are given in bracket unless otherwise specified.

---

Mar 31, 2013

1. Disputed items not provided for.

Central excise Refund

As per the order of the Asst. Commissioner of Central Excise, Kottayam Division, Kottayam dated 23.12.1998 holding that Calcium Carbide'' manufactured and used captive consumption in the manufacture of acetylene black within the factory is not liable for levy of excise duty, the company is entitled to a refund of excise duty of Rs.82,89,691/- in respect of the period from April 1978 to July, 1983.

This was confirmed by the Hon''ble CEGAT, New Delhi as per the order No.A/1076/02 NB (D) dated 24.10.2002. Based on the above order the company filed a refund claim for Rs.82,86,691 /- before the Deputy Commissioner of Central Excise, Kottayam Division on 30.01.2003. However the Deputy Commissioner allowed only Rs.37,99,198/- as refund and the same was recognized as income in the Profit & Loss account in the year 2002-2003. The claim for the balance amount of Rs.44,86,993/-was rejected by the Excise authorities forwant of proof for payment of duty.

Against this order the company had filed an appeal before the Commissioner of Central Excise and Customs (Appeals) Cochin on 22-10-2003 and the appeal was disposed of in favour of the Company.

The Department has gone in Appeal. In view of the above, the claim for the refund of the balance amount of Rs. 44,86,993/- has not been recognized in the accounts. Company has also filed appeal before CEGAT, New Delhi for release of balance amount, which is pending for disposal.

The Department has gone in Appeal. In view of the above, the claim for the refund of the balance amount of Rs. 44,86,993/- has not been recognized in the accounts. Company has also filed appeal before CEGAT, New Delhi for release of balance amount, which is pending for disposal.

2. The Company has paid Rs.10 Crores towards KSEB arrears in FY.2011-2012. The Total arrears was settled under One Time Settlement at Rs. 14.75 Crores and the balance amount of Rs.4.75 Crores paid in full and final settlement during the year2012-13.

3. Contingent Liabilities:

The Company had acquired lease hold land and invested a sum of Rs.1.76 Lacs thereon. The matter is sub-judice before the Hon''ble Kerala High Court against resumption of said land order by Kerala Government. In the event any adverse judgment is passed the said sum of Rs. 1.76 Lacs may have to be written off.

4. Other Pending Matters

A. DLF Settlement

During the year under report the Company has entered into Settlement Agreement with DLF Ltd. in pending Arbitration matter. A Joint Settlement Application has been filed during the current year and Company has also made payment of Rs.4.50 Crores in addition to Rs.50 Lacs paid in F.Y.2011-12 to DLF Ltd. leaving a sum of Rs.1.76 Crores to be paid in instalments, the effect of settlement will be given in the account in the year 2013-14 as the Arbitration Tribunal has to pass an award in terms of Settlement Agreement arrived at.

B. Inter Corporate Deposits

The Company has given Inter-Corporate Deposits to Rashtriya Metal Industries Ltd. Rs. 100 Lacs and Vindhyachal Hydro Power Ltd. Rs. 50 Lacs. These Inter-Corporate Deposits have been made with the aforesaid Companies against Security of Post Dated Cheques. The Company is receiving interest on the Inter-Corporate Deposits regularly.

The Company has also made Inter-Corporate Deposit with India Ener-Gen Ltd. Rs.62 Lacs. However, the said company has not made any payment towards interest. The Company has made demand for repayment of the said loan and the repayment is expected during the year 2013-14.

C. SurveyofFreeholdLandoftheCompanyatChingavanam

The Independent Directors of the Company had conducted physical survey of the freehold land at Chingavanam on 30/09/2012 and no discrepancy has been found by them.

D. Flat at New Delhi

The company was in possession of one flat at 97-Sunder Nagar, New Delhi. In terms of Supreme Court Order, the company has handed over the vacant possession of the said flat on 31/03/2013. The Company has also written off the book value amounting to Rs.2.66 Lacs of the said flat on 31/03/2013

E. Advances Given to the parties

The Company had given recoverable advances to Mr. Joseph Manual Rs.10 Lacs and Mr. Sudhir Kale Rs.1.01 Lacs. The Company is expecting to recover their advances during the year 2013-14.

F. Embezzlement of Funds by an employee of the Company

One employee of the Company had embezzled a sum of Rs.4.98 Lacs in the year 2005-2006 and did not account for the said amount to the Company. The Company had also filed a Criminal Complaint against the said employee. Since the chances of the recovery of the amount was bleak, the Company has written off the said amount during the year under report.

G. Sale of Surplus Land at Chingavanam

The Company had entered into an Agreement for Sale for sale of Surplus Land at Chingavanam with some Parties who had paid a sum of Rs.Six Crores as an advance. However, the said Parties defaulted in making payment of balance consideration as per Agreement for Sale dated 04/07/2012 in spite of extension of time granted to them. The said Agreement was cancelled in terms of Clause 8 thereof. The Company has made refund of Rs. Five Crores (These Cheques are reflected in Bank Reconciliation Statement as on 31.03.2013 as "Cheques Issued But Not Presented For Payment".) to the said parties after appropriating a sum of Rs. One Crore towards Opportunity Loss, Claims etc., The Cheques sent to the said Parties have, however, been returned with remark "REFUSED" on the envelops by Postal Department. The said sum of Rs. One Crore towards Opportunity Loss, Claims etc. appropriated from advances received from the said Parties has been credited under the head "Other Income". After appropriation of the said amount, there is no amount due to the said parties.

5.Due to Small Scale Industrial undertakings.

There is no outstanding dues as defined under the Interest on Delayed Payments of Small Scale and Ancillary Industrial Undertaking Act, 1933 and section 3(l) of the Industrial (Development and Regulation)Act, 1951.

6. Loans and Advances

Include an amount of Rs. 1,12,00,000/- (Rs.1,20,50,962/-) paid to Associate Concern as per Note No. 19(1).

7. Fixed Assets.

The entire Plants and Machineries, equipments and other old movables at Chingavanam Factory were disposed off in the previous year 2011-12. However, due to reasons beyond control, i.e, delay in getting concurrence the Revenue Department, agitation by the former workers, etc the purchaser could not dismantle / remove the scrap from the Company''s premises till the end of this financial year.

8. Current Assets

8.1. As the Company has been under Lock -out since July 1999, dues under the heads Sundry Debtors, Loans and Advances and Current Liabilities including Sundry Creditors are subject to confirmation.

8.2 In the earlier years, the Company had made full provision of Rs. 1,35,31,446/- towards amount due from Sundry Debtors for a period exceeding 3 years. During this year the Company has reviewed the status of the amount recoverable from Sundry Debtors as well as the Suits filed of Rs.42,91,787/- by the Company for recovery of the amount due form some of the parties. After conducting review, the Company has Written Off a sum of Rs.7,37,311/- and has credited Rs.36,18,754/- to "Excess Provision Written Back Account".

8.3. Advance against purchases include an amount of Rs. NIL (Rs.8,36,990/-) due for a period exceeding three years for which provision for doubtful advance has been made. During the year this was adjusted againstthe provision created earlier.

Fundamental accounting assumption regarding Going Concern.

9. As pending issues inter-alia resumption of power supply, grant of Financial Assistance and other incentives from State Government and other concerned Authorities remain unresolved, the chances of early resumption of manufacturing activities of viable plants receded. The Company has disposed off its Factory Buildings, Plant & Machineries etc., at Chingavanam during the year 2011-12. The above conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company''s ability to continue as a going concern.

10. Capital Commitments NIL

16. The Companies in which the Directors are associated have filed the Annual Returns and did not make any default in the repayment of deposits if any fallen out. On the basis of representations received from the Directors, none of the Directors attract disqualifications under section 274(1 )(g) of the Companies Act, 1956.

11. The Company had no full time Company Secretary as required u/s 383A of the Companies Act, 1956 during the year under report due to layoff / lock out

12. Others

12.1 Basic earning per Equity Share and Diluted earning per Equity Share have been computed by dividing net profit by the weighted average number of equity shares outstanding for the year.

13. Disclosure of transactions with Related parties, as required by Accounting Standard 18 as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

Relationship Entities where control exist: Nil

I. Associate and Group Companies

(1) Citric India Limited, (2) Chemo Pharma Labs Limited, (3) India Energen Limited (4) Vindhyachal Hydro Power Ltd.

II. Key Management Personnel:

Shri. S BSomani, Chairman & Managing Director

14. The Sundry Debtors, Sundry Creditors and Loans and Advances are subject to confirmation, reconciliation, and adjustments. The Management is of the opinion that such reconciliation or adjustments if any will not materially affect the accounts.

15. Traveling Expenses include foreign travel expenses of Directors amounting to Rs.2704652/-, which are incurred for purposes other than business.

16. In view of the accumulated losses, the Management has not provided deferred tax assets as well as deferred tax liabilities. Hence the disclosure in respect of accounting of taxes on income as required under Accounting Standard 22 issued by ICAI is not done.

17. Figures are given in thousands unless otherwise stated

18. Figures for the previous year have been regrouped / rearranged wherever necessary and are given in bracket unless otherwise specified.

19. The Financial Statements for the year ended 31.03.2013 are prepared as per revised Schedule VI. Accordingly, the previous year figures have been re-classified, wherever necessary, to conform to this year''s classification.

---

Mar 31, 2012

1. Contingent Liabilities:

DLF Universal Limited (Formerly known as DLF Industries Limited) (here in referred to as DLF) had filed a claim of Rs. 500 Lacs and the matter has been under Arbitration. During 2006-07, the Company had entered into a Memorandum of Understanding with the DLF in the terms of which DLF has agreed to sale/ transfer the machineries to the Company and/or its nominees which are in its possession or to be dispatched by the foreign supplier. The Company has agreed to make payment of Rs. 250 Lacs exclusive of Sales Tax, Freight and Insurance to be borne by. the Company for the machineries, which are in possession of DLF. The Company has also agreed to open confirmed Letter of Credit in favor of KONCAR for shipment of the remaining machineries. The Company has made the payment of Rs.50 Lacs to DLF.

DLF has filed Statement of Claim before the Arbitral Forum inter alia for breach of terms of Memorandum of Understanding on the part of the Company. The Company has made a counter claim for financial losses, damages, costs and claims against DLF for non-fulfillment of contractual obligations. The matter is pending for hearing.

2. Disputed liabilities not provided for:

2.1. ESIC Kerala had made a demand of Rs.9.21 Lacs during 2009-2010 and the same has been stayed by Hon'ble High Court. This has been charged to revenue after adjusting the provision of Rs.2.4 Lacs available in the Books.

2.2. Disputed power charges to KSEB and arrears:

After a prolonged discussions and requests with various Authorities, the long pending KSEB arrears was crystallized and the Company has paid Rupees Ten Crores during the year against final settlement. However, thereafter, the Board unilaterally demanded Rs.4,75,58,345/- as further dues, which the Company has challenged before the Hon'ble High Court of Kerala. The Court stayed the same and directed the Government to re-examine and consider the Company's representation for waiver of the MD charges for the period when the Company was closed and no electricity was consumed. The Company is hopeful of a favorable decision and hence this liability is not provided in Books of Account.

2.3. Central excise Refund

As per the order of the Asst. Commissioner of Central Excise, Kottayam Division, Kottayam dated 23.12.1998 holding that Calcium Carbide manufactured and used captive consumption in the manufacture of acetylene black within the factory is not liable for levy of excise duty, the company is entitled to a refund of excise duty of Rs.82,89,691/- in respect of the period from April 1978to July, 1983.

This was confirmed by the Hon'ble CEGAT, New Delhi as per the order No.A/1076/02 NB (D) dated 24.10.2002. Based on the above order the company filed a refund claim for Rs.82,86,691/- before the Deputy Commissioner of Central Excise, Kottayam Division on 30.01.2003. However the Deputy Commissioner allowed only Rs.37,99,198/- as refund and the same was recognized as income in the Profit & Loss account in the year 2002-2003. The claim for the balance amount of Rs.44,86,993/- was rejected by the Excise authorities for want of proof for payment of duty.

- Against this order the company had filed an appeal before the Commissioner of Central Excise and Customs (Appeals) Cochin on 22-10-2003 and the appeal was disposed of in favour of the Company.

The Department has gone in Appeal. In view of the above, the claim for the refund of the balance amount of Rs. 44,86,993/- has not been recognized in the accounts. Company has also filed appeal before CEGAT, New Delhi for release of balance amount, which is pending for disposal.

3. Contingent Liabilities:

During the year the Company has made payment of statutory dues, retrenchment compensation etc. amounting to Rs.473.41 Lakhs in aggregate to the remaining 261 employees of the Company who have submitted their resignation pursuant to a settlement agreement signed between the Company and the Trade Unions in the presence of Labour Commissioner, Trivandrum. Consequent upon this, the entire labour issues / industrial disputes stand settled once for all.

4. Due to Small Scale Industrial undertakings. -

On verification of invoices issued by the suppliers of the company there is no Small Scale industry as defined under the Interest on Delayed Payments of Small Scale and Ancillary Industrial Undertaking Ad, 1933 and section 3(i) of the Industrial (Development and Regulation) Act, 1951, having total amount outstanding exceeding Rs. 1,00,000 to each unit.

5 Loans and Advances include amount of Rs.31,40,000/- (Rs. Nil) dues to Associate Concern.

6. Fixed Assets.

During the financial year, the entire Plants and Machineries, equipments and other old movables at Chingavanam (Dist - Kottayam) were disposed off.

7. Current Assets

7.1. As the Company has been under Lock -out since July 1999, dues under the heads Sundry Debtors, Loans and Advances and Current Liabilities including Sundry Creditors are subject to confirmation.

7.2. Sundry Debtors include an amount of Rs.1,35,31,446/- (Rs.1,35,31,446/-) due for a period exceeding three years against which full Provision of Rs.1,35,31,446/- has been made towards Doubtful Debts. The Company has filed suits before different judicial authorities against certain debtors for recovery of dues amounting to Rs.42,91,787/- (Rs.42,91,787/-).

Against some of these suits decrees were awarded in favour of the Company for an amount of Rs.23,11,610/- (Rs.23,11,610/-), which are in process of execution.

7.3. Advance against purchases include an amount of Rs.8,36,990/- (Rs.836990/-) due for a period exceeding three years for which provision for doubtful advance has been made.

Fundamental accounting assumption regarding Going Concern.

8. As pending issues inter-alia resumption of power supply, grant of Financial Assistance and other incentives from State Government and other concerned Authorities remain unresolved, the chances of early resumption of manufacturing activities of viable plants receded. The Company has disposed off its Factory buildings, Plant and machineries etc., at Chingavanam during the year. The above conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern.

9. Capital Commitments

Estimated amount of contracts remaining to be executed on capital accounts Rs.86,64,839/- (Rs. 86,64,839/-).

10. The Companies in which the Directors are associated have filed the Annual Returns and did not make any default in the repayment of deposits if any fallen out. On the basis of representations received from the Directors, none of the Directors attract disqualifications under section 274(1 )(g) of the Companies Act, 1956.

11. The Company had no full time Company Secretary as required u/s 383Aof the Companies Act, 1956 during the year under report due to layoff / lock out.

12. Others

12.1. Basic earnings per Equity Share and Diluted earnings per Equity Share have been computed by dividing net profit by the weighted average number of equity shares outstanding for the year.

12.2. Calculation of basic Earnings per share

12.3. The Sundry Debtors, Sundry Creditors and Loans and Advances are subject to confirmation, reconciliation, and adjustments. The Management is of the opinion that such reconciliation or adjustments if any will not materially affect the accounts.

12.4. Traveling Expenses include foreign travel expenses of Directors, which are incurred for purposes other than business.

12.5. In view of the accumulated losses, the Management has not provided deferred tax assets as well as deferred tax liabilities. Hence the disclosure in respect of accounting of taxes on income as required under Accounting Standard 22 issued by ICAI is not done.

12.6. Figures are given in thousands unless otherwise stated

12.7. Figures for the previous year have been regrouped / rearranged wherever necessary and are given in bracket unless otherwise specified.

12.8. The Financial statements for the year ended 31.03.2011 had been prepared as per the then applicable pre-revised Schedule VI of the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the Financial Statements for the year ended 31.03.2012 are prepared as per revised Schedule VI. Accordingly, the previous year figures have also been re-classified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

---

Mar 31, 2011

1.1 Contingent Liabilities:

DLF Universal Limited (Formerly known as DLF Industries Limited) (here in referred to as DLF) had filed a claim of Rs. 500 Lacs and the matter has been under Arbitration. During 2006-07, the Company had entered into a Memorandum of Understanding with the DLF in the terms of which DLF has agreed to sale/ transfer the machineries to the Company and/or its nominees which are in its possession or to be dispatched by the foreign supplier. The Company has agreed to make payment of Rs. 250 Lacs exclusive of Sales Tax, Freight and Insurance to be borne by the Company for the machineries, which are in possession of DLF. The Company has also agreed to open confirmed Letter of Credit in favour of KONCAR for shipment of the remaining machineries. The Company has made the payment of Rs.50 Lacs to DLF. DLF has filed Statement of Claim before, the Arbitral Forum inter alia for breach of terms of Memorandum of Understanding on the part of the Company. The Company has made a counterclaim for financial losses, damages, costs and claims against DLF for non-fulfillment of contractual obligations. The matter is pending for hearing.

2.2 Disputed liabilities not provided for:

2.2.1 The Company has filed an appeal before Hon'ble High Court of Kerala against order of Sub-Court Kottayam awarding additional compensation of Rs. 12,38,087/- (Rs.12,38,087/-) on land acquired by the company in prior years. The company has made a deposit of Rs. 5000/- against this in the court and included under the head "Loans and Advances".

2.2.2 ESIC Kerala had made a demand of Rs.9.21 Lacs during 2009-2010 and the same has been stayed by Hon'ble High Court. This has been charged to revenue after adjusting the provision of Rs.2.84 Lacs available in the Books.

2.3 Other liabilities not provided:

Recovery Suits filed by some Creditors for supplies of goods, claiming Rs. 19,30,288/- together with interest are pending before various Courts against which a sum of Rs. 13,30,772/- has been provided in the books.

2.4 Central excise Refund

As per the order of the Asst. Commissioner of Central Excise, Kottayam Division, Kottayam dated 23.12.1998 holding that Calcium Carbide manufactured and used captive consumption in the manufacture of acetylene black within the factory is not liable for levy of excise duty, the company is entitled to a refund of excise duty of Rs.82,89,891/- in respect of the period from April 1978 to July, 1983.

This was confirmed by the Hon'ble CEGAT, New Delhi as per the order No.A/1078/02 NB (D) dated 24.10.2002. Based on the above order the company filed a refund claim for Rs.82,86,691/- before the Deputy Commissioner of Central Excise, Kottayam Division on 30.01.2003. However the Deputy Commissioner allowed only Rs.37,99,198/- as refund and the same was recognized as income in the Profit & Loss account in the year 2002-2003. The claim for the balance amount of Rs.44,86,993/- was rejected by the Excise authorities for want of proof for payment of duty.

Against this order the company had filed an appeal before the Commissioner of Central Excise and Customs (Appeals) Cochin on 22-10-2003 and the appeal was disposed of in favour of the Company.

The Department has gone in Appeal. In view of the above, the claim for the refund of the balance amount of Rs. 44,86,993/- has not been recognized in the accounts. Company has also filed appeal before CEGAT, New Delhi for release of balance amount, which is pending for disposal.

2.7 During the year the Company has made payment of Rs. 22.18 Lacs in aggregate to 31 employees who have either resigned or had attained superannuation age and provision has been made for remaining employees towards Gratuity and Leave Encashment on accrual basis.

2.8 Due to Small Scale Industrial undertakings.

On verification of invoices issued by the suppliers of the company there is no Small Scale industry as defined under the Interest on Delayed Payments of Small Scale and Ancillary Industrial Undertaking Act, 1933 and section 3(i) of the Industrial (Development and Regulation) Act, 1951, having total amount outstanding exceeding Rs1,00,000 to each unit.

2.9 Fixed Assets

2.9.1 After reopening of the plants at Chingavanam (Dist - Kottayam) for maintenance the Management of the Company has physically verified the machineries, equipments and other installations and no discrepancies have been found.

2.10 Current Assets

2.10.1 Loans and Advances includes dues of Rs. NIL (Rs.1,00,35,000/-) from Associate Concern.

2.10.2 As the Company has been under Lock -out since July 1999 years, dues under the heads Sundry Debtors, Loans and Advances and Current Liabilities including Sundry Creditors are subject to confirmation / reconciliation.

2.10.3 Sundry Debtors include an amount of Rs.1,35,31,446/- (Rs.1,35,31,446/-) due for a period exceeding three years against which full Provision of Rs.1,35,31,446/- has been made towards Doubtful Debts. The Company has filed suits before different judicial authorities against certain debtors for recovery of dues amounting to Rs.42,91,787/- (Rs.42,91,787/-). Against some of these suits decrees were awarded in favour of the Company for an amount of Rs.23,11,610/- (Rs.2311610/-), which are in process of execution.

2.10.4 Advance against purchases include an amount of Rs.8,36,990/- (Rs.8,36,990/-) due for a period exceeding three years for which provision for doubtful advance has been made.

Fundamental accounting assumption regarding Going Concern.

2.11 As pending issues inter-alia resumption of power supply, grant of Financial Assistance and other incentives from State Government and other concerned Authorities remain unresolved, the chances of early resumption of manufacturing activities of viable plants receded. The Management is however hopeful that the pending issues will receive due consideration from all concerned Authorities to pave way for resumption of manufacturing operations of plants at Chingavanam. The accounts have been prepared on Going Concern basis.

Quantitative Details

2.17 The Companies in which the Directors are associated have filed the Annual Returns and did not make any default in the repayment of deposits if any fallen out. On the basis of representations received from the Directors, none of the Directors attract disqualifications under section 274(1)(g) of the Companies Act, 1956.

2.18 The Company had no full time Company Secretary as required u/s 383A of the Companies Act, 1956 during the year under report due to lay off/lock out.

2.19 Others

2.19.1 In view of the accumulated losses, the Management has not provided deferred tax assets as well as deferred tax liabilities. Hence the disclosure in respect of accounting of taxes on income as required under Accounting Standard 22 issued by ICAI is not applicable.

2.19.2 The manufacturing plant at Chingavanam was re-opened for maintenance however the maintenance work is discontinued for the time being.

2.19.3 Basic earning per Equity Share and Diluted earning per Equity Share have been computed by dividing net profit by the weighted average number of equity shares outstanding for the year.

2.20 Disclosure of transactions with Related parties, as required by Accounting Standard 18 as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

Relationship Entities where control exist Nil

I. Associate and Group Companies

Citric India Ltd.

Chemo Pharma Labs Ltd.

India Energen Ltd.

B D Somani & Co

S.H Khatod & Sons

Vindhyachal Hydro Power Ltd.

2.21 Figures are given in thousands unless otherwise stated

2.22 Figures for the previous year have been regrouped / rearranged wherever necessary and are given in bracket unless otherwise specified.

2.23 The Sundry Debtors, Sundry Creditors and Loans and Advances are subject to confirmation, reconciliation, and adjustments. The Management is of the opinion that such reconciliation or adjustments if any will not materially affect the accounts.

2.24 Directors' Traveling Expenses of Rs.26.89 Lakhs include foreign travel expenses of Directors, which are incurred for purposes other than business.

---

Mar 31, 2010

1.1 Contingent Liabilities :

DLF Universal Limited (Formerly known as DLF Industries Limited) (here in referred to as DLF) had filed a claim of Rs. 500 Lacs and the matter has been under Arbitration. During 2006-07, the Company had entered into a Memorandum of Understanding with the DLF in the terms of which DLF has agreed to sale/ transfer the machineries to the Company and/or its nominees which are in its possession or to be dispatched by the foreign supplier. The Company has agreed to make payment of Rs. 250 Lacs exclusive of Sales Tax, Freight and Insurance to be borne by the Company for the machineries which are in possession of DLF. The Company has also agreed to open confirmed Letter of Credit in favour of KONCAR for shipment of the remaining machineries. The Company has made the payment of Rs.50 Lacs to DLF.

DLF has filed Statement of Claim before the Arbitral Forum inter alia for breach of terms of Memorandum of Understanding on the part of the Company. The Company has made a counter claim for financial losses, damages, costs and claims against DLF for non fulfillment of contractual obligations. The matter is pending for hearing.

1.2 Disputed liabilities not provided for:

1.2.1 The Company has filed an appeal before Honble High Court of Kerala against order of Sub-Court Kottayam awarding additional compensation of Rs. 12,38,087/- (Rs.12,38,087/-) on land acquired by the company in prior years. The company has made a deposit of Rs. 5000/- against this in the court and included under the head "Loans and Advances".

1.2.2 ESIC Kerala had made a demand of Rs.9.21 Lacs and the same has been stayed by Honble High Court. This has been charged to revenue Rs.2.84 Lacs after adjusting the provision available.

1.3 Other liabilities not provided :

Recovery Suits filed by some Creditors for supplies of goods, claiming Rs. 45,23,240/- together with interest are pending before various Courts against which a sum of Rs. 32,87,470/- has been provided in the books.

1.4 Central excise Refund

As per the order of the Asst. Commissioner of Central Excise, Kottayam Division, Kottayam dated 23.12.1998 holding that Calcium Carbide manufactured and used captive consumption in the manufacture of acetylene black within the factory is not liable for levy of excise duty, the company is entitled to a refund of excise duty of Rs.82,89,691/- in respect of the period from April 1978 to July, 1983.

This was confirmed by the Honble CEGAT, New Delhi as per the order No.A/1076/02 NB (D) dated 24.10.2002. Based on the above order the company filed a refund claim for Rs.82,86,691/- before the Deputy Commissioner of Central Excise, Kottayam Division on 30.01.2003. However the Deputy Commissioner allowed only Rs.37,99,198/ - as refund and the same was recognized as income in the Profit & Loss account in the year 2002-2003. The claim for the balance amount of Rs.44,86,993/- was rejected by the Excise authorities for want of proof for payment of duty.

Against this order the company had filed an appeal before the Commissioner of Central Excise and Customs (Appeals) Cochin on 22-10-2003 and the appeal was disposed of in favour of the Company.

The Department has gone in Appeal. In view of the above, the claim for the refund of the balance amount of Rs. 44,86,993/- has not been recognized in the accounts. Company has also filed appeal before CEGAT, New Delhi for release of balance amount, which is pending for disposal.

1.5 During the year the Company has made payment of Rs. 10.9 Lacs in aggregate to 18 employees who have either resigned or had attained superannuation age and provision has been made for remaining employees towards Gratuity and Leave Encashment on accrual basis.

1.6 Due to Small Scale Industrial undertakings.

On verification of invoices issued by the suppliers of the company there is no Small Scale industry as defined under the Interest on Delayed Payments of Small Scale and Ancillary Industrial Undertaking Act, 1933 and section 3(i) of the Industrial (Development and Regulation) Act, 1951, having total amount outstanding exceeding Rs1,00,000 to each unit.

1.7 Fixed Assets

1.7.1After reopening of the plants at Chingavanam (Dist – Kottayam) for maintenance the Management of the Company has physically verified the machineries, equipments and other installations and no discrepancies have been found.

1.8 Current Assets

1.8.1 Loans and Advances includes dues of Rs. 100,35,000/- (Rs.1,35,00,000/-) from Associate Concern.

1.8.2 As the Company has been under Lock -out since July 1999 years, dues under the heads Sundry Debtors, Loans and Advances and Current Liabilities including Sundry Creditors are subject to confirmation / reconciliation.

1.8.3 Sundry Debtors include an amount of Rs.1,35,31,446/- (Rs.1,35,31,446/-) due for a period exceeding three years against which full Provision of Rs.1,35,31,446/- has been made towards Doubtful Debts. The Company has filed suits before different judicial authorities against certain debtors for recovery of dues amounting to Rs.42,91,787/- (Rs.42,91,787/-).

Against some of these suits decrees were awarded in favour of the Company for an amount of Rs.23,11,610/- (Rs.2311610/-), which are in process of execution.

1.8.4 Advance against purchases include an amount of Rs.8,36,990/- (Rs.8,36,990/-) due for a period exceeding three years for which provision for doubtful advance has been made.

Fundamental accounting assumption regarding Going Concern.

1.9 As pending issues interalia resumption of power supply, grant of Financial Assistance and other incentives from State Government and other concerned Authorities remain unresolved, the chances of early resumption of manufacturing activities of viable plants receded. The Management is however hopeful that the pending issues will receive due consideration from all concerned Authorities to pave way for resumption of manufacturing operations of plants at Chingavanam. The accounts have been prepared on Going Concern basis.

1.10 Capital Commitments

Estimated amount of contracts remaining to be executed on capital accounts Rs.86,64,839/- (Rs. 86,64,839/-).

1.11 The Companies in which the Directors are associated have filed the Annual Returns and did not make any default in the repayment of deposits if any fallen out. On the basis of representations received from the Directors, none of the Directors attract disqualifications under section 274(1)(g) of the Companies Act, 1956.

1.12 The Company had no full time Company Secretary as required u/s 383A of the Companies Act, 1956 during the year under report due to lay off / lock out.

1.13 Others

1.13.1 In view of the accumulated losses, the Management has not provided deferred tax assets as well as deferred tax liabilities. Hence the disclosure in respect of accounting of taxes on income as required under Accounting Standard 22 issued by ICAI is not applicable.

1.13.2 The manufacturing plant at Chingavanam was re-opened for maintenance however the maintenance work is discontinued for the time being.

1.14 Disclosure of transactions with Related parties, as required by Accounting Standard 18 as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

Relationship Entities where control exist Nil

I. Associate and Group Companies

Citric India Ltd.

Chemo Pharma Labs Ltd.

India Energen Ltd.

B D Somani & Co

S.H Khatod & Sons

Vindhyachal Hydro Power Ltd.



1.15 Figures are given in thousands unless otherwise stated

1.16 Figures for the previous year have been regrouped / rearranged wherever necessary and are given in bracket unless otherwise specified.