12) Provisions, Contingent Liabiliities & Contingent Assets:

The company recognizes as provisions, the liability being present obligations arising from past events, the
settlement of which is expected to result in outflow of resources and which can be measured only by using a
substantial degree of estimation. Contingent liabilities are disclosed by way of a note to the financial statement
after careful evaluation by the management of the facts and legal aspect of the matters involved. Contingent
assets are being neither recognized nor disclosed.

13) Current Assets, Loans And Advances

The balance under items of Sundry Debtors, Loans and Advances and current liabilities are subject to
confirmation and reconciliation and consequential adjustments, wherever applicable. However, in the opinion
of the Management, the realisable value of the current assets, loans and advances in the ordinary course of
business will not be less than the value at which they are stated in the Balance Sheet.

14) Cash Flow

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. Cash flows from operating,
investing and financing activities of the Company are segregated, accordingly.

15) Segment Reporting

Business Segment

As the company is dealing in only one segment i.e. trading & Importers and manufactures of organic,
inorganic, specialty and food chemicals. hence segment reporting is not applicable. Company does not
have distinguishable component of an enterprise that is engaged in providing an individual product or
service or group of related product or services and that is subject to risks and returns that are different
from those of other business segment.

Geographical Segment

The Company operates in only one geographical area hence segment reporting is not applicable.

(D) NOTES TO THE FINANCIAL STATEMENTS

1) The Company does not have information as to which of its supplier are Micro small and Medium Enterprise
registered under The Micro small and Medium Enterprise Development Act 2006. Consequently, the
liability, if any, of interest which would be payable under The Micro small and Medium Enterprise
Development Act 2006, cannot be ascertained. However, the Company has not received any claims in
respect of such interest and as such, no provision has been made in the books of accounts.

2) Contingent liabilities and commitments (to the extent not provided for) - A disclosure for a contingent
liability is also made when there is a possible obligation that may, require an outflow of the Company's
resources.

3) The management has confirmed that adequate provisions have been made for all the known and
determined liabilities and the same is not in excess of the amounts reasonably required to be provided for.

4) The balances of trade payables, trade receivables, loans and advances are unsecured and considered as
good are subject to confirmations of respective parties concerned.

5) Realizations: In the opinion of the Board and to the best of its knowledge and belief, the value on
realization of current assets and loans and advances are approximately of the same value as stated.

6) Figures have been rearranged and regrouped wherever practicable and considered necessary.