Notes to Accounts of Vivid Global Industries Ltd.

Mar 31, 2024

Revenue Recognition :

Sales are recognised when the goods are invoiced or despatched to the customers and are recorded exclusive of excise duty and net of trade discount and sales tax.

Export sales are recognised on the date of Shipping bill.

Duty Drawback is accounted in the year in which it is received.

Interest Income has been recognised on the basis of the amount received from the Banks

v. Long Term investments are valued at cost.

vi. Foreign currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. All foreign currency assets and liabilities (except those towards fixed assets) are translated at year end exchange rate and related exchange gain/loss is recognised in Profit and Loss Account.

Adjustmenmt in respect of liabilities incurred for acquisition of fixed assets are adjusted in the carrying amount of fixed assets.

II) The following are the observations during the course of Audit under review and brought to the notice of the members of the Company :-

1) Due to the complexities of business the value of the Inventory has been considered as has been verified, valued and certified by the Management.

2) Balances of Sundry Debtors and Sundry Creditors as on 31/03/2024 are recorded at realisable value. The Management has been able to produce some confirmations of balances due from Debtors as well as the Balances Payable to the Creditors. However the value of these Debtors and Creditors for the Balance Sheet purpose has been take as certified by the Management.

CIF Value of Exports have been reported based on the working submitted by the management and it has been explained that wherever the Insurance and Freight has been recovered from the customers, the same has been included in the value shown above and in absence of the same, the Insurance & Freight has been claimed as expenditure.

Installed capacity is as certified by the Management and not verified by the auditors. It denotes estimated production of a product, if the entire plant & machinery is operated on triple shift basis during the year and is exclusively utilised for its production. However, the plant and machinery is common for the production of various dye-intermediates and hence the installed capacity may vary depending upon the product mix adopted by the company.

11) Deferred Tax Adjustment :

For the company, the deferred tax adjustment as required by AS-22 consists only on account of Difference in the Rate of Depreciation under the Income Tax Act and the Companies Act. The DTA/DTL of the earlier years was calculated @ of the Rate of Tax applicable in that particular year and for the current year @ Rate of Tax applicable for the year under consideration. Due to the change in the Rate of Tax in the year under consideration, the Opening balance of DTA/DTL has been revised accordingly.

The Profit & Loss Account has been debited with the Deffered Tax Liability of Rs. 11,13,084/-

12) In accordance with the requirement for disclosure of amounts due to SSI units, the company has not compiled the list of its sundry creditors who satisfy this criteria.

Subject to this, the information relating to payment overdue to SSI units cannot be computed.

13) Previous years figures have been regrouped wherever necessary in order to confirm to current years presentation.

14) Statement of policy Account Value Showing Various Components Under The Policy for the period : 1st April 2023 to 31st March 2024

15) An Environment Compensation Order, asking the Company to Pay Rs.60,98,400 was levied on the company by the Maharashtra Pollution Control Board (MPCB) as per the ‘Polluter Pays’ Principle. The company has preferred an appeal before the Supreme Court against the said Order where in, the Supreme Court has directed the Company to deposit Rs.18,30,000 (30% of the Compensation Amount) with the The United India Insurance Company as a Refundable Deposit and the rest is kept in abeyance till the proceedings are completed. As informed to us, this Deposit shall be Refundable back to the Company if the Order of the Supreme Court is decided in favour of the Company and Dismissing the Order of MPCB. The amount of Rs.60,98,400/- is however shown as a ‘Contingent Liability’ for FY 2023-24 till the outcome of this Appeal.

Contingent liabilities and commitments (to the extent not provided for)	As at 31 March 2024	As at 31 March 2023
(i) Contingent Liabilities The company is facing court cases With Central Excise department in respect	64,000	64,000
of Modvat credit claimed for F.Y. 1994-95 The company has preferred an appeal against the said order and is confident of succeeding in the said appeal. (The liability disclosed above is net of predeposit of Rs. 50,000) Maharashtra Pollution Control Board has levied penalty as per ''Polluters Pays''	60,98,400	60,98,400
Principle. The company has preferred an appeal before the Supreme court. (The liability disclosed above is inclusive of the deposit made of Rs. 18,30,000) Other	3,79,760	3,79,760
Guarantee Given	28,69,675	28,69,675
(ii) Commitments	94,11,835	94,11,835
	94,11,835	94,11,835

FINANCIAL RISK MANAGEMENT

The Company’s activity exposes it to market risk, liquidity risk and credit risk. Company’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the company. This note explains the sources of risk which the entity is exposed to and how the company manages the risk.

(A) Credit risk

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

i. Credit risk management

Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 30 days past due.

A default on a financial asset is when the counterparty fails to make contractual payments of when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

ii. Provision for expected credit losses

The company follows ‘simplified approach’ for recognition of loss allowance on Trade receivables.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed.

(B) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Company consistently generated sufficient cash flows from operations to meet its financial obligations. Also, the Company has unutilized credit limits with banks.

Management monitors rolling forecasts of the company’s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. In addition, the company’s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements

Maturities of financial liabilities

The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. In the table below, borrowings includes both interest and principal cash flows. To the extent that interest rates are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk such as commodity risk.

(i) Foreign currency risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the import of goods.

The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies and standard operating procedures to mitigate the risks.

(ii) Interest rate risk

The Company primarily borrows funds under fixed interest rate arrangements with banks and financial institutions and therefore the Company is not exposed to interest rate risk.

(iii) Price risk

The Company is not significantly exposed to changes in the prices of commodities/equity instruments.

The management assessed that the fair value of cash and cash equivalent, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

The fair values for loans and other non current financial assets were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the Fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

ii. Fair Value Hierarchy

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

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.

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

iii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the use of Breakup value/net asset value for unquoted equity instruments

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

iv. Valuation inputs and relationships to fair value

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at March 31,2023 and March 31,2024 are shown as below:

v. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the chief financial officer (CFO) and the audit committee. Discussions of valuation processes and results are held between the CFO, audit committee and the valuation team regularly.

---

Mar 31, 2018

Note 1

a) Captital Subsidy of Rs.11,00,000/- during the year under consideration received from Directorate of Industries, Palghar,Government of Maharashtra has been reduced from the Cost of the Plant & Machinery. Hence the depreciation on addition to Fixed Assets made during the year has been calculated at the cost of new assets less the subsidy received.

Note 2 a

Captital Subsidy of Rs.11,00,000/- during the year under consideration received from Directorate of Industries, Palghar,Government of Maharashtra has been reduced from the Cost of the Plant & Machinery. Hence the depreciation on addition to Fixed Assets made during the year has been calculated at the cost of new assets less the subsidy received.

Note 3 a (i) Quantitative details in respect of opening, closing stock and sale of finished goods :

In view of the complexities of the business, the details provided hereunder could not be verified by us during the course of our audit and hence the following information provided is as certified by the management.

Note 3 b (i) Quantitative details of principal items of raw materials and packing materials consumed:

In view of the complexities of the business, the details provided hereunder could not be verified by us during the course of our audit and hence the following information provided is as certified by the management.

While valueing Principal Raw material under note 14 b (i) Company has valued goods as mentioned below

Imported goods(@CIF Value)= (Foreign Currency * LC Opening rate ) custome duty Bank Charges Clearing & Forwarding expences Transportation

Local goods = Purchased Price Transportation

The Confirmation of the Trade Receivables have not been provided as at the time of completion of the Audit and hence the Debtors have been considered as certified by the Management.

Trade Receivable stated above include debts due by:

I) The following are the observations during the course of Audit under review and brought to the notice of the members of the Company :-

1) Due to the complexities of business the value of the Inventory has been considered as has been verified, valued and certified by the Management.

2) Balances of Sundry Debtors and Sundry Creditors as on 31/03/2018 are recorded at realisable value. The Management has been able to produce some confirmations of balances due from Debtors as well as the Balances Payable to the Creditors. However the value of these Debtors and Creditors for the Balance Sheet purpose has been taken as certified by the Management.

CIF Value of Exports have been reported based on the working submitted by the management and it has been explained that wherever the Insurance and Freight has been recovered from the customers, the same has been included in the value shown above and in absence of the same, the Insurance & Freight has been claimed as expenditure.

Installed capacity is as certified by the Management and not verified by the auditors. It denotes estimated production of a product, if the entire plant & machinery is operated on triple shift basis during the year and is exclusively utilised for its production. However, the plant and machinery is common for the production of various dye-intermediates and hence the installed capacity may vary depending upon the product mix adopted by the company.

During the year under consideration the Company has opted to major expansion of their Production Capacity and hence have installed new Plant & Machinery in their Factory Premises at Tarapur (Maharashtra). Due to this expansion the Installed Capacity of the Company has risen from 720 MT to 1,400 MT per annum.

4) Cash & Bank Balance

a) Till the complition of Audit Bank statement of following bank were not produced before the Auditor

b) As per the interest certificate produced before us the company has received interest of Rs.14,73,891/on deposits given to Banks on Account of LC Margins. However in the Financials of the Company only Rs.13,03,626/- has been recorded as Interest Income. The difference has not been reconciled by the Company and presented before us. However the Cummulative L/C Margin with the Banks as on 31/03/2018 is matching with the Bank Statements presented before us.

5) Income Recognition

a) The Company is eligible to get benefit under the Merchant Export from India Scheme against the Export of Goods. This benefit is in the form of a Licence which can be utilised to pay Custom Duty on Import of Goods for Manufacturing purpose. During the year under consideration, the Company has received this benefit of Rs.19,72,716/- the extent of which the Custom Duty has been paid by them by way of this Scheme. The Company has not recorded the benefit of this scheme in their financials and has directly debited the Custom Duty Paid amount to the Profit & Loss Account only to the extent of the net amount of Custom Duty paid. The balance of the un-utilised value of this Licence as on 31/03/2018 is ''7/- (Rupees Seven Only)

b) AS per the Advance Licence conditions, the Company had to Export 31,050 Kgs of N Methyl J Acid against the Import of 37,260 Kgs of J Acid during the year under consideration. However the Company has been able to Export only 30,963 Kgs of N Methyl J Acid and hence there is a shortfall of Export of 86.98 Kgs of N Methyl J Acid. The penalty payable by the Company on account of this short fall of Export will be ascertained by the Customs Department and intimated to the Company. The said liability has not been accounted for in the financials as the quantum of the same will be ascertained only on completion of the adjudication by the Custom Department.

6) Related Party transactions :

I Names of Related Parties and nature of relationship.

A. Associates

1 Vivid Intermediates Private limited

2 M/s Sumichem Corporation

B. Enterprises over which Key Management Persons Have significant influence and Enterprises having Key Management Person in common.

1 Vivid Chemical (FIRM)

C. Key Management Persons and Relatives

1 Mr. Sudhir Mody Father of the Directors Mr. Sumish Mody & Mr. Miten Mody

2 Mr. Sumish Sudhir Mody Director

3 Mr. Miten Sudhir Mody Director

4 Mrs. Asha Sudhir Mody Mother of the Directors Mr. Sumish Mody & Mr. Miten Mody

5 Mrs. Meena Sumish Mody Director & Wife of Mr.Sumish Mody

6 Mrs. Amisha Miten Mody Internal Auditor & Wife of Mr. Miten Mody

7 Mr. Dharmesh Chokshi Director

8 Mrs. Alka Parekh Director

a) In Segment Reporting of the Company the Unallocable Expenses & Capital Employed figure of each segment is calculated on the proportion of Export Sales to Total Sales for the corresponding period.

2 Secondary segment:

Since company deals in one line of product only ie. Chemicals , it does not satisfy the criteria of reportable Secondary Segments; hence the Secondary Segment is not reported.

7) Current Tax :

Provision for Tax has been made on the basis of the Income Tax Act 1961. However as the company is entitled to set off their Current Tax Liability against the Brought Forward Minimum Alternate Tax (MAT) of ''5,12,207/- the Provision of Current Tax has been ascertained at ''73,27,882/- (incl. of Surcharge & Cess). As on the date of this Balance Sheet there is no allowable brought forward losses or Depreciation which can be carried forward for the subsequent years.

Note a) The Face Value of Shares of Company has been split to ''5 from Rs.10 ( w.e.f 3rd December, 2015 ).

b) The Board of Directors have proposed to declare the Dividend @ 10% (P/Y 10%) on the Paid Up Equity Share Capital of the Company.

8) Deferred Tax Adjustment :

For the company, the deferred tax adjustment as required by AS-22 consists only on account of Difference in the Rate of Depreciation under the Income Tax Act and the Companies Act. The DTA/DTL of the earlier years was calculated @ of the Rate of Tax applicable in that particular year and for the current year @ Rate of Tax applicable for the year under consideration. Due to the change in the Rate of Tax in the year under consideration, the Opening balance of DTA/DTL has been revised accordingly

The Profit & Loss Account has been debited with the Deffered Tax Liability of Rs.14,88,858/-.

9) In accordance with the requirement for disclosure of amounts due to SSI units, the company has not compiled the list of its sundry creditors who satisfy this criteria.

Subject to this, the information relating to payment overdue to SSI units cannot be computed.

10) Previous years figures have been regrouped wherever necessary in order to confirm to current years presentation.

11) Company has defaulted in recognising Gratuity Liability in the Financials.

---

Mar 31, 2016

1. Particulars of Licensed Capacity, Installed Capacity and Actual Production : 2015-16 (Kgs) 2014-15 (Kgs) a. Installed Capacity:

Dye Intermediates equivalent 1,400,000 720,000

Installed capacity is as certified by the Management and not verified by the auditors. It denotes estimated production of a product, if the entire plant & machinery is operated on triple shift basis during the year and is exclusively utilized for its production. However, the plant and machinery is common for the production of various dye-intermediates and hence the installed capacity may vary depending upon the product mix adopted by the company.

During the year under consideration the Company has opted to major expansion of their Production Capacity and hence have installed new Plant & Machinery in their Factory Premises at Tarapur (Maharashtra). Due to this expansion the Installed Capacity of the Company has risen from 720 MT to 1,400 MT per annum

2. Related Party transactions :

3. Names of Related Parties and nature of relationship.

4. Associates

5. Vivid Intermediates Private limited

6. M/s Sumichem Corporation

7. Enterprises over which Key Management Persons Have significant influence and Enterprises having Key Management Person in common.

8. Vivid Chemical (FIRM)

9. Key Management Persons and Relatives

10. Mr. Sudhir Mody

11. Mr. Sumish S. Mody

12. Mr. Miten S. Mody

13. Mrs. Asha S. Mody

14. Mrs. Meena S.Mody

15. Mrs. Amisha M Mody

16. In Segment Reporting of the Company the Unallocable Expenses & Capital Employed figure of each segment is calculated on the proportion of Export Sales to Total Sales for the corresponding period.

17. Secondary segment:

Since company deals in one line of product only ie. Chemicals, it does not satisfy the criteria of reportable Secondary Segments; hence the Secondary Segment is not reported.

18. Current Tax :

Provision for Tax has been made on the basis of the Income Tax Act 1961. However as the company is entitled to set off their Current Tax Liability against the Brought Forward Minimum Alternate Tax (MAT) of Rs. 5,12,207/- the Provision of Current Tax has been ascertained at Rs. 45,04,828/- (incl. of Surcharge & Cess). As on the date of this Balance Sheet there is no allowable brought forward losses or Depreciation which can be carrier forward for the subsequent years.

19: The Face Value of Shares of Company has been split to Rs. 5 from Rs. 10 ( w.e.f 3^rd December, 2015 ). Hence the Earning Per Share figures of Previous year has been adjusted accordingly in the EPS Table.

20. The Board of Directors have proposed to declare the Dividend @ 7. 5% (P/Y 5%) on the Paid Up Equity Share Capital of the Company.

21. During the period under review the Company made a Preferential Issued 2,57,070 fully paid Equity Shares of Rs. 5/- Each at a Premium of Rs. 2.78/- per share to the Promoter group after obtaining all the necessary approvals from the Appropriate Authorities.

22. Deferred Tax Adjustment:

For the company, the deferred tax adjustment as required by AS-22 consists only on account of Difference in the Rate of Depreciation under the Income Tax Act and the Companies Act.

The Profit & Loss Account has been debited with the Differed Tax Liability of Rs. 5,67,747/-.

23. In accordance with the requirement for disclosure of amounts due to SSI units, the company has not compiled the list of its sundry creditors who satisfy this criteria.

Subject to this, the information relating to payment overdue to SSI units cannot be computed.

24. Previous year’s figures have been regrouped wherever necessary in order to confirm to current year’s presentation.

---

Mar 31, 2015

1. Disclosure pursuant to Note no. 6(A)(f) of Part I of Schedule VI to the Companies Act, 1956

Equity Shares (Previous year) are held by , the holding company.

Above disclosure is required for each class of Shares held by its holding company or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate.

2. The following are the observations during the course of Audit under review and brought to the notice of the members of the Company :-

a. Due to the complexities of business the value of the Inventory has been considered as has been verified, valued and certified by the Management.

b. Balances of Sundry Debtors and Sundry Creditors as on 31/03/2015 are recorded at realisable value. The Management has been able to produce some confirmations of balances due from Debtors as well as the Balances Payable to the Creditors. However the value of these Debtors and Creditors for the Balance Sheet purpose has been take as certified by the Management.

Installed capacity is as certified by the Management and not verified by the auditors. It denotes estimated production of a product, if the entire plant & machinery is operated on triple shift basis during the year and is exclusively utilised for its production. However, the plant and machinery is common for the production of various dye-intermediates and hence the installed capacity may vary depending upon the product mix adopted by the company.

3. Related Party transactions :

I Names of Related Parties and nature of relationship.

A. Associates

1 Vivid Intermediates Private limited

2 M/s Sumichem Corporation

B. Enterprises over which Key Management Persons Have significant influence and Enterprises having Key

Management Person in common.

1 Vivid Chemical (FIRM)

C. Key Management Persons and Relatives

1 Shri. Sudhir Mody

2 Shri. Sumish S. Mody

3 Shri. Miten S. Mody

4 Smt. Asha S. Mody

Secondary segment:

Since company deals in one line of product only ie. Chemicals , it does not satisfy the criteria of reportable segments; hence not reported.

4. Current Tax :

Provision for Tax has been made on the basis of the Income Tax Act 1961 However as the company has utilised brought forward Depreciation loss of the earlier years under the normal provisions of the Income Tax Act. As on the date of this Balance Sheet there is no allowable brought forward losses or Depreciation which can be carrier forward for the subsequent years.

5. Deferred Tax Adjustment :

For the company, the deferred tax adjustment as required by AS-22 consists only on account of Difference in the Rate of Depreciation under the Income Tax Act and the Companies Act.

The Profit & Loss Account has been debited with the Deffered Tax Liability of Rs.2,26,175/-.

6. In accordance with the requirement for disclosure of amounts due to SSI units, the company has not compiled the list of its sundry creditors who satisfy this criteria.

Subject to this, the information relating to payment overdue to SSI units cannot be computed.

7. Previous years figures have been regrouped wherever necessary in order to confirm to current years presentation.

---

Mar 31, 2014

Note 1 Disclosure pursuant to Note no. 6(T) of Part I of Schedule VI to the Companies Act, 1956

As at 31 March As at 31 March

Contingent liabilities and commitments (to the extent not provided for) 2014 2013

(i) Contingent Liabilities

The company is facing court cases With Central Excise department in re- spect of Modvat credit claimed for F.Y. 1994-95 The company has preferred 64,000 64,000 an appeal against the said order and is confdent of succeeding in the said appeal.

(The liability disclosed above is net of predeposit of Rs. 50,000) Guarantee Given 269,675 -

333,675 64,000

(ii) Commitments

- -

333,675 64,000

2) Related Party transactions :

I Names of Related Parties and nature of relationship.

A. Associates

1 Vivid Intermediates Private limited

2 M/s Sumichem Corporation

B. Enterprises over which Key Management Persons Have significant infuence and Enterprises having Key Management Person in commom

1 Vivid Chemical (FIRM)

C. Key Management Persons and Relatives

1 Mr. Sudhir Mody

2 Mr. Sumish S. Mody

3 Mr. Miten S. Mody

Secondary segment:

Since company deals in one line of product only ie. Chemicals , it does not satisfy the criteria of reportable segments; hence not reported.

3) Current Tax :

Provision for Tax has been made on the basis of the Liability of the Company as ascertained under the Minimum Alternate Tax based on the Book profits. However as the company has accumulated losses of the earlier years under the normal provisions of the Income Tax Act, the Provision of Taxation Payable under this Act is not required for the year under review.

4) Deferred Tax Adjustment :

For the company, the deferred tax adjustment as required by AS-22 consists only of unabsorbed depreciation and losses.

Due to the Virtual Uncertainity of profits in the earlier years the Management had decided against providing for the Deffered Tax Liability. The Profit & Loss Account has been debited with the Deffered Tax Liability of Rs.24,18,440/-.The breakup of the Deffered Tax Liability pertaining to the earlier years and for the year under consideration is as follows:

5) In accordance with the requirement for disclosure of amounts due to SSI units, the company has not compiled the list of its sundry creditors who satisfy this criteria.

Subject to this, the information relating to payment overdue to SSI units cannot be computed.

6) Previous years figures have been regrouped wherever necessary in order to confirm to current years presentation.

---

Mar 31, 2013

1 Related Party transactions :

I Names of Related Parties and nature of relationship.

A. Associates

1 Vivid Intermediates Private limited

2 M/s Sumichem Corporation

B. Enterprises over which Key Management Persons Have signifcant infuence and Enterprises having Key Management Person in commom

1 Nil

C. Key Management Persons and Relatives

1 Mr. Sudhir Mody

2 Mr. Sumish S. Mody

3 Mr. Miten S. Mody

Secondary segment:

Since company deals in one line of product only ie. Chemicals , it does not satisfy the criteria of reportable segments; hence not reported.

Current Tax :

Provision for current income tax is made at the current tax rate based on assessable income. However as the company has accumulated losses of the earlier years, the Provision of Taxation as per Income Tax is not made is not required for the year under review. Provision for MAT liability has been made as per applicable rate defned u/s 115JB of the Income Tax Act 1961.

Deferred Tax Adjustment :

For the company, the deferred tax adjustment as required by AS-22 consists only of unabsorbed depreciation and losses. As the company has earned proft during the year under consideration and as the Company has accumulated Losses of the earlier years , it is estimated the same are not suffcient to cover the accumulated losses of the earlier years. In view of the same the deferred tax asset/liability has not been recognised.

In accordance with the requirement for disclosure of amounts due to SSI units, the company has not compiled the list of its sundry creditors who satisfy this criteria.

Subject to this, the information relating to payment overdue to SSI units cannot be computed.

Previous years fgures have been regrouped wherever necessary in order to confrm to current years presentation.

---

Mar 31, 2012

1 Related Party transactions :

Names of Related Parties and nature of relationship.

A. Associates

14 Related Party transactions :

1 Vivid Intermediates Private limited

1 Names of Related Parties and nature of relationship.

2 M/s Sumichem Corporation

A.Associates

B. Enterprises over which Key Management Persons Have significant influence and Enterprises having Key

1 Vivid Intermediates Private limited

Management Person in commom

2 M/s Sumichem Corporation

1 Nil

B. Enterprises over which Key Management Persons Have significant influence and Enterprises having Key

C. Key Management Persons and Relatives Management Person in commom

1 Mr. Sudhir Mody

2 Mr. Sumish S. Mody

1 Nil

3 Mr. Miten S. Mody

C.Key Management Persons and Relatives

Secondary segment:

Since company deals in one line of product only ie. Chemicals , it does not satisfy the criteria of reportable segments; hence not reported.

Current Tax :

Provision for current income tax is made at the current tax rate based on assessable income. However as the company has accumulated losses of the earlier years, the Provision of Taxation is not required for the year under review.

Deferred Tax Adjustment :

For the company, the deferred tax adjustment as required by AS 22 consists only of unabsorbed depreciation and losses. As the company has incurred a Loss during the year under consideration and as the Company has accumulated Losses of the earlier years , it is estimated the same are not sufficient to cover the accumulated losses of the earlier years. In view of the same the deferred tax asset/liability has not been recognised.

In accordance with the requirement for disclosure of amounts due to SSI units, the company has not compiled the list of its sundry creditors who satisfy this criteria.

Subject to this, the information relating to payment overdue to SSI units cannot be computed.

Previous years figures have been regrouped wherever necessary in order to confirm to current years presentation.

---

Mar 31, 2011

1 Contingent Liabilities :

2010-11 2009-10 Rupees Rupees

The company is facing following court cases:

i. With Central Excise department in respect of Modvat credit 64,000 64,000 claimed for F.Y. 1994-95 The company has preferred an appeal against the said order and is confident of succeeding in the said appeal.

(The liability disclosed above is net of predeposit of Rs. 50,000)

2 Particulars of Licensed Capacity, Installed Capacity and Actual Production :

Installed capacity is as certified by the Management and not verified by the auditors. It denotes estimated production of a product, if the entire plant & machinery is operated on triple shift basis during the year and is exclusively utilised for its production. However, the plant and machinery is common for the production of various dye-intermediates and hence the installed capacity may vary depending upon the product mix adopted by the company.

3 Segment Reporting :

B Secondary segment:

Since company deals in one line of product only ie. Chemicals , it does not satisfy the criteria of reportable segments; hence not reported.

4 Related Party transactions :

I Names of Related Parties and nature of relationship.

A. Associates

1 Vivid Intermediates Private limited

2 M/s Sumichem Corporation

B. Enterprises over which Key Management Persons Have significant influence and Enterprises having Key Management Person in commom

1 Nil

C. Key Management Persons and Relatives

1 Mr. Sudhir Mody

2 Mr. Sumish S. Mody

3 Mr. Miten S. Mody

5 Earnings per share :

Earnings per share is calculated as per AS-20 issued by the ICAI. The Net Profit After Tax considered for calculation of basic and diluted earnings per share is Rs. 45,09,008/-. There is no difference between basic and diluted earnings per share.

6 Current Tax :

i Provision for current income tax is made at the current tax rate based on assessable income. However as the company has accumulated losses of the earlier years, the Provision of Taxation is not required for the year under review.

ii Deferred Tax Adjustment : For the company, the deferred tax adjustment as required by AS-22 consists only of unabsorbed depreciation and losses. Though the company has made nominal profits during the year under consideration as well as the earlier year, the same are not sufficient to cover the accumulated losses of the earlier years. In view of the same the deferred tax asset/liability has not been recognised.

7 In accordance with the requirement for disclosure of amounts due to SSI units, the company has not compiled the list of its sundry creditors who satisfy this criteria. Subject to this, the information relating to payment overdue to SSI units cannot be computed.

8 Previous years figures have been regrouped wherever necessary in order to confirm to current years presentation.

---

Mar 31, 2010

1 Contingent Liabilities:

2009-10 2008-09

Rupees Rupees

The company is facing following court cases: With Central Excise department in respect of Modvat credit 64,000 64,000

claimed for F.Y. 1994-95 The company has preferred an appeal against the said order and is confident of succeeding in the said appeal.

(The liability disclosed above is net of predeposit of Rs. 50,000)

2. particulars of Licensed Capacity. Installed Capacity and Actual Production :

Installed capacity is as certified by the Management and not verified by the auditors. It denotes estimated production of a product, if the entire plant & machinery working on triple shift during the year is exclusively utilised for its production. However, the plant and machinery is common for the production of various dye-intermediates and hence the installed capacity may vary depending upon the product mix adopted by the company.

3 Segment Reporting :

B Secondary segment:

Since company deals in one line of product only fe. Chemicals , it does not satisfy the criteria of reportable segments; hence not reported.

4 Related Party transactions :

I Names of Related Parties and nature of relationship.

A. Associates

1 Vivid Intermediates Private limited

2 M/s Sumichem Corporation

B. Enterprises over which Key Management Persons have significant influence and Enterprises having Key Management Person in commom

1 Nil

C. Key Management Persons and Relatives

1 Mr. Sudhir Mody

2 Mr. Sumish S. Mody

3 Mr. Miten S. Mody

5 Earnings per share :

Earnings per share is calculated as per AS-20 issued by the ICAI. The Net Profit After Tax considered for calculation of basic and diluted earnings per share is Rs. 71,05,992/-. There is no difference between basic and diluted earnings per share.

6 Current Tax :

i Provision for current income tax is made at the current tax rate based on assessable income.

ii Deferred Tax Adjustment:

For the company, the deferred tax adjustment as required by AS-22 consists only of unabsorbed depreciation and losses. The company has a history of continuing losses. Though measures have been taken towards turning the company around, we do not have evidence claiming certainty of profits in the immediate future. In view of the same, the deferred tax asset/Liability is not recognised.

7 In accordance with the requirement for disclosure of amounts due to SSI units, the company has not compiled the list of its sundry creditors who satisfy this criteria.

Subject to this, the information relating to payment overdue to SSI units cannot be computed.

8 Previous years figures have been regrouped wherever necessary in order to confirm to current years presentation.