I The Company has only one class of equity shares having a par value ofRs 5 f- per share IHach holder of equity -share 1% emilled to one vale per share li During 1hc current year, the aroounT of dividend p® yhare rnrogn ized as distnhuiion IP equity shareholders was Ks N) L < Previous year Rs NIL)

2. In evenlof liquidation uf*C Ctimpeny, the holden qf equity shares would be entitled to reteive remain inf aseds of 6* Company, iiflti distribution of all pre leTential amounls Tlsc d isfrihutinn will he m proportion lo ihc number of equity shares held by the Shareholders

3. Of the slmt. 3jM.3Z.39G equity shares of Hs.V- each fully paid up has hetfl alknied lo non-residenls cm iwn-repaJrial inn basis

(i) fish credit From banks are seen red:

(a) by way of first Paripeeau charge cut hypothecation of Company's entire stock-in-trade consisting of raw materials, uod-mpKSSS, finished goods, consumables stores and spares and Teceivables/book debts, both present and future,

(b) by way of first pari passu charge on hypothecation of all existing and future movable assets and Other fixed assets i e. . the plant and machinery at the company's existing plan* at Belavadi Industrial Area. Mysuru,

(c) by way of first pan passu charge by Equitable mortgage of factory Land and Building belonging to the company at Bdavadi Industrial Area. Mysuru. and

(dl funher secured by personal guarantee of the Chairman & Managing Director and the Executive Director (c) Cash credit from hanks cam interest rate -Si; 15 .35% p.a

4. The I,nans from other parties are received from Chairman &. Managing Director. Executive Director of the Company and other entities in which the directors are interested at the interest rate of 13 5% p a. and is repayable on demand.

5. There is no amount due and outstanding lo he [mined to Investor Fduralion and PtntecHim F und E

6. The Comftany lias, nut entered into any forward contracts to miligalc its risks associated with toreian currency fluctuations having undcrly mg transactions and relating 10 firm commitments nr highly- pruhahle forecast trail saci uui.s The company does not emcr inm anv- torn aid contract which is intended for Hading or specula! iv e purposes

6. FAS required by I'ara-tbA of Hie Accounting .klandard AS 1 i issued by The Institute of (.'haltered Aecmimanis of India " Thy FFTeeiy (if Changes m Foteign Exchange tales", during ihu cuncnt financial year translation loss ansing cm account of variation in external commercial borrowing outstanding at the year end has been capitalized to I he extent of Rs 7.1.34.44m utilized in acquit mg capital assets I-urt her 1he Foreign Exchange translation Loss ol'Fts 2,43115 S31 arising there on lues been accounlcd under "Foreign Currency Monetary Hem Translation Difference Account" Accordingly, the balance in ihc said accoum will be amortized over ihe balance lenur ol" loan (uplo 3i" March 2u2ii i Due to ihe change in accounting practice, m accordance with Accounting Standard AS-l I of The Institute of Chartered Accountanis ot'lndu. ihe loss js lower by Ks 3.12.14.iNS after current year amort izuLron of Rs 5,16,1 S2.

7) The company has taken steps to receive cnnsi stoutly quality power tram the power grid, resulting in cconomicallv dahle production if (is ily Further, ihe Company has incurred capital expenditure [hat will increase the capacity of the formaldehyde and Para Formaldehyde plants totwice ils ptosem capacity. Accordingly, the management is of the view- tli.it virtue I certa inly exists regarding sufliriem future mcomci'laxablc income accruing lo the eompany and consequently the past lu-wes are expected to be wiped off Therefore Ihe eompany has recognized the Deterred Tax Asset in the books of Account Ftorrowrngcosts capMahscd during the v ear is Rs 72,87.741/- (PY NJ!.) H I ore on currency translation difference capitalised during 1he year is Rs 73,34,449/- 1 There are no employees who are in receipt of remuneration in tbe aggregate al Ihe rate of not Fess 1han R s '-.(Xin.fifyV- per annum or 500 OOOi- |ier month in respect of part of the year during ihe year

8. Inter-dmsion transfers of goods aggregating to a value of Rx 11 ,-BS ,7S. I OB/- for iniemal use as captive consumption ate disclosed as conn a-, items m Profit and Loss Statement to reflect the into economic value of Production rnter-ve the divisions. This treatment of i.ntra-dmsion transfers differs from the Ircatmenl recommended by Accounting Standard -9 1 Revenue EievugpiLion) presenbed by the Companies iAccnuntmg SundardsJ Rales. 2fKl6 AcMinJingjy. the sales and raw material consumption figures are higher by Rsl I SS "H I -OS/- accounting neaimenl has nn impact on the results of the company

9 Confinnstion Ifom ccnam parlies tinr amounts due to Lhemruinoutil due Irom lliem as pet uccormis of the Cumpuns Han mu hceit received Necessarx adjustment. ifsnv uill be mode when [he iccuunla are i rainn led/KSI led

Excise Dun- approximately Its 20 97 tacs (hwkws yea# Rs.29 76 lacs I on slock assailing clearance has been considered in vuluidiurt of finished

10. he Income lax assessments of (he company have been completed upto the Assessment year 2012-13 There are no demands Outstanding. In vie* of loss lot assessment year 2015-16, the company has been advised that there is JIO liability to income to* and accordingly no provision has been made.

RELATED PARTY Disclosure

A. Relaship:

1. subsidaries                       NILL

Mr. C D Datwani

Mrs. Saroj c dATWANI

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