Shreyas Intermediates Limited (The Company) was incorporated in the year 1992 and is engaged in the business of manufacturing of Pigments and Pigment Intermediates.

B) OTHER NOTES TO ACCOUNTS: -

1. The company has incurred Cash Losses during the year as well as in the earlier year and accordingly has been covered under the definition and provisions of The Sick Industrial Companies (Special Provisions) Act, 1985. The company had made an application with the Board of Industrial & Financial Restructuring under the provisions of the Act which was declined due to technical issues. The company has made a fresh reference to the Board of Industrial & Financial restructuring which is pending before the Secretariat. The notice was issued by the Secretariat for personal hearing on a date however the notice was received upon the lapse of the above date. The company has represented its case and is awaiting further instruction and intimations from the respective authority and forums.

2. The company had availed secured loans from the bankers which had been defaulted. The company had approached the financial institutions with a settlement scheme which has been duly approved by both the lending bankers. Bank of Baroda had approved a One Time Settlement option in respect of its dues by assigning its entire dues to Invent ARC. Furthermore State Bank of India had also assigned their dues on Security Realization basis to Invent ARC. The company remains committed to settle the dues according to the above scheme on specified terms. According to the specified terms under the scheme, the company has not made any provision towards the above and thus we remain unable to quantify the implication of the above scheme of restructuring in our report.

3. During the year, the company has reduced the carrying cost of its Plant & Machinery by the quantum of interest and principal which had been capitalized by the Company. An additional amount which represents the value of Capital Repairs undertaken in respect of the said plant & machineries during the production trial run period, has been reduced and reclassified under Other Non-Current Assets, pursuant to the advice of the technical evaluation team. Accordingly, during the year the cost of Plant & Machinery have been decreased to account for the above reduction of carrying cost of the plant as also Capital Repairs to bring the value of the Plant at its reasonable realistic value as per the technical evaluation team. The company has claimed a rebate on the Interest during the year which represents cessation of the interest liability in respect of its Secured Loans availed during the earlier years.

4. The Directors of the Company have certified that Current Assets, Loans, Advances and Deposits have a realizable value at least equal to the amount at which they are stated in the Balance Sheet. Directors are of the opinion that provision for all known liabilities has been made during the year and not in excess of the amount reasonably necessary.

5. The Company has not yet been able to completely identify the suppliers covered under Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. However, the Company does not have any claim for interest outstanding at the dose of the year from any said party.

6. Balances of Sundry Creditors, Debtors and advances are subject to reconciliation and confirmation.

7. The financial statements have been prepared covering for the period of six months from 1 st of October 2014 to 31 st of March 2015 whereas the previous year cover a period of year ended 30thSeptember, 2014. The figures pertaining to previous year have been regrouped/reclassified wherever required.