NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015

Note 1

Corporate Information

The Company was incorporated in 1986 and is dealing in chemicals,mainly Vinyl Acetate Monomer (VAM) . The equity shares of the Company are listed on BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE).

Note 2

Significant Accounting Policies

2.1 The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable. The financial statements have been brpared on accrual basis under the historical cost convention on a going concern basis. The accounting policies adopted in the brparation of financial statements are consistent with those followed in the brvious year.

2.2 The brparation of financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the Management's best knowledge of current events and actions, future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/ materialised.

2.3. i. Tangible assets are stated at cost.

ii. Debrciation has been provided on straight line method on fixed assets, as per the rates specified in Schedule II of the Companies Act, 2013.

2.4. Long-term investments are carried individually, at cost less provision for diminution,other than temporary,in the value of such investments.Current investments are carried individually,at the lower of cost and fair value.Cost of investments include acquisition charges such as brokerage,fees and duties.

2.5. Inventory of Traded Goods is valued at actual cost or net realisable value,whichever is lower.

2.6. Accounting for Taxes on Income:

i. Provision for current tax is made on the basis of taxable income for the current year in accordance with the provisions of the Income Tax Act,1961.

ii. Deferred tax resulting from timing differences between book and tax profits is accounted for under the liability method at the current rate of tax to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized and carried forward only if there is a virtual /reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

2.7. Foreign Currency transactions are recorded at the exchange rates brvailing on the date of transaction. Foreign currency designated assets and liabilities are restated at year end rates or at contract rates and the resultant gain or loss is taken to the Statement of Profit and Loss.

2.8. Employees' Benefits:

i. Contribution to Provident and Family Pension Fund are funded as a percentage of salary.

ii. Gratuity liability is funded as per group gratuity scheme of Life Insurance Corporation of India.

iii. Leave encashment liability is provided for on the basis of actuarial valuation as at the year end.

2.9. Revenue Recognition:

i. Income from sale of goods is recognised upon transfer of significant risk and rewards of ownership of the goods to the customer which generally coincides with delivery and acceptance of the goods sold. Sales are net of Sales tax/ VAT, returns , rebates and discounts.

ii. Claims which are not of material nature/insurance claims etc. are accounted for when no significant uncertainties are attached to their eventual receipt.

iii. Negotiated price reduction obtained from supplier is accounted for as a part of 'Other operating revenue'.

2.10. Provisions,Contingent Liabilities and Contingent Assets:

i. Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be outflow of resources.

ii. Disclosure for a contingent liability is made,without a provision in books,when there is an obligation that may,but probably will not, require outflow of resources.

iii. Contingent Assets are neither recognised nor disclosed in the financial statement.

2.11. Earnings Per Share:

In determining the earnings per share,the Company considers the net profit after tax and post tax effect of any extra-ordinary/exceptional item is shown separately.The number of shares considered in computing basic earnings per share is the number of shares outstanding at the end of the year.

3 . Details of dues to micro and small enterprises

The Company did not have any time during the year, amount due to small and medium enterprises (SME) which is outstanding for more than 45 days. Further,no interest is paid/payable to such SME creditors. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Segment information

The Company's current business activity has only one primary reportable segment, namely trading in chemicals.

5. Previous year's figures have been regrouped wherever necessary.

As per our report of even date

For Khanna & Panchmia

Chartered Accountants

Firm Reg. No.136041W

Ketan Panchmia

Partner

Mem.No. 038985

For and on behalf of the Board

P.C. Patel President & Secretary

M.B. Parekh Chairman & Managing Director

N.K. Parekh Director

Mumbai

Dated : 18th May, 2015