Notes Forming Part of Balance Sheet and Statement of Profit and Loss

NOTE No. I : SHARE APPLICATION MONEY

During the year under review, the promoters have infused their contribution amounting to Rs. 2.25 crores which is yet to be converted into equity shares pursuant to its approved CDR package along with brvious year contribution of Rs. 9.31 crores. Till the conversion to equity shares, the amount is treated as Share application money as on 31.03.2015. The Company could not issue sharesagainst this promoters contribution as company’s application for br-approval for allotment of shares in terms of the Clause 24(a) ofthe listing agreement was pending with the exchanges as on 31.03.2015.

NOTE No. II Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances)Rs 271.89 Lacs (Previous year Rs. 522.97 lacs)

NOTE No. III In the opinion of the Board, the Current Assets, Loans & Advances shown in the Balance Sheet have a value onrealisation in the ordinary course of business at least equal to the amount at which they are stated.

NOTE No. IV Other expenses under head administrative expenses includes Rs.1,47,352.00 (Previous Year Rs.83,573.00) paid todirectors as sitting fee.

NOTE NO. V Total amount of secured Term Loans installments payable during twelve months following 31.03.2015 are Rs. 14669.55 Lacs ( Previous year Rs. 6778.01 Lacs)

NOTE NO. VI The balance in the parties accounts whether in debit or credit are subject to con?rmation, reconciliation and adjustment. The impact of the same on the accounts at the year end is unascertainable.

NOTE NO. VII In compliance with AS-15, during the year, company has provided Rs. 137.93 Lacs (Rs. 10.62 Lacs) as provision towards the Company Gratuity Policy maintained with LIC after the actuarial valuation done by the LIC.

NOTE NO. VIII The company entered into Forward Exchange Contracts being derivative instruments, which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or available at the settlement date.

NOTE NO. IX Company has not received intimation from supplier regarding the status under Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been given.

NOTE NO. X The outstanding dues of Micro small & medium enterprises have been determined to the extent such parties have been identi?ed on the basis of information available with the company. The parties to whom the Company owes sum outstanding for more than 30 days as at the balance sheet date are :

(1) Ammonia Supply Co. (2) Time technoplast Ltd.

Note No. XI During the year, the Company has incurred foreign currency revenue expenditure of RMB 424386.33 on its China  Office and GBP 793.16 on its U.K of?ce Operation. Such Foreign Currency Expenditure has been translated in Indian Currency @ One RMB equivalent to Rs. 9.89 and One GBP equivalent to Rs. 98.56 at the year end on the basis ofaverage exchange rate during the year computed as per cross currency reference rates published by RBI.

Note No. XII Loans & Advances include Rs. 14.94 lacs (P.Y 14.89 lacs) due from Company Secretary. Maximum amount due during the year is Rs. 14.94 Lacs (P.Y. 15.16Lacs)

Note No. XIII Unpaid dividend as on 31.03.2015 is Rs. 13.51 lacs ( Previous year Rs . 17.28 lacs ). During the financial year, an amount of Rs. 3.60 lacs transferred to central government account (IEPF) on account of unpaid dividend for the financial year 2006-07.

Note No. XIV Capital WIP includes expenses incurred on “Product Technology Development Expenditure” amounting toRs. 1406.55 Lacs ( Previous Year Rs. 1849.07 Lacs).

Note No. XV CORPORATE DEBT RESTRUCTURING

The brsent status of already approved CDR package as on 31st March 2015 is:

The FITL has been created as per the sanction of the respective banks, subject to reconciliation with Banks. The cumulative total of the recompense amount as per CDR package up to 31.3.2015 is Rs. 92.90 crores as per the approval dated November 9, 2012 of the CDR EG.

As per Letter of Approval (LOA), the promoters were required to bring in their contribution aggregating to Rs.27.38 crore (i.e. 25% of total sacrifice of Rs.109.52 crore) before December 2014.However , promoters had so far infused Rs.20.87 crore as on 31st March 2015 and further the balance amount will be infused by September 2015. The same has also been permitted by CDR Eg.

Note No. XVI Company has written off the old balances in view of the accounting new policy (Refer to Accounting Policy no 16)

Note No. XVII FIXED DEPOSIT RESTRUCTURING

The company has not maintained the Liquid Assets ( i.e. 15% of Deposits maturing next financial year ) as a statutory requirement under the companies (Acceptance of Deposit) Rules, 2014. For the relaxation of the above statutory requirement, company had filed the application to the Central Government ( Ministry of Company Affairs ) which has been rejected by the Central Government vide its letter dt 23.03.2015 received in April 2015.

Note No. XVIII The insurance claim lodged with The United India Insurance company Ltd. In regards to fire occurred on the brmises of M/s Dashmesh Medicare Pvt. Ltd. on 30th April,2012 is still pending though the site has been released to M/s Dashmesh Medicare Pvt. Ltd. by Punjab Administration Control. The losses could not be quantiied as on 31st March, 2015.

Note No. XIX During the year company has received a subsidy amounting to Rs. 137.15 lakhs on interest cost and the same has been net off with interest cost.

Note No. XX Previous year figures have been regrouped, rearranged wherever considered necessary for comparison.

As per our separate report of even date

For JAIN & ASSOCIATES

Chartered Accountants (Regd.No.001361N)

S.C. Pathak

Partner

Membership .No. 10194

N.R. Munjal Vice-Chairman Cum Managing Director

Rishav Mehta Executive Director

Himanshu Jain Joint Managing Director

K.M.S. Nambiar Director

N.K. Bansal Chief Financial Officer

Pardeep Verma GM - Corp. Affairs & Company Secretary

Date: 16.05.2015

Place: Chandigarh

NOTE No. XLV SIGNIFICANT ACCOUNTING POLICIES & NOTES ON ACCOUNTS A. SIGNIFICANT ACCOUNTING POLICIES

1. SYSTEM OF ACCOUNTING

The financial statements of the company have been brpared to comply with all material aspects of the applicable Accounting Principles in India, the applicable Accounting Standards notified under section 211 (3C) and the other relevant provision of the Companies Act , 2013. The financial statements have been brpared under the historical cost convention and on the basis of going concern.

2. FIXED ASSETS & DEbrCIATION

a. COST OF FIXED ASSETS

All Fixed Assets are valued at cost/revalued cost net of Cenvat credit wherever eligible. Cost includes all expenses and borrowing cost attributable to the project till the date of commercial production / ready to use.

b. DEbrCIATION / AMORTISATION

Debrciation is provided on straight line method at the rates specified in schedule II of the Companies Act 2013 on pro rata basis and the assets having the value upto Rs. 5000 have been debrciated at the rate of 100%. Lease hold Land is amortized over the period of lease.

The policy of company is to provide debrciation on the Buildings , Plant & Machinery and Other Fixed assets from the date of commercial production/ ready to use.

c. INTANGIBLE ASSETS (OTHER ASSETS)

Cost of product development for which the company becomes entitled to a Patent or DMF iled with regulatory authorities is recognized as other assets. The policy of company is to amortise such assets acquired upto 31-03-2008 on straight-line basis in five subsequent years and those acquired after 31.3.2008 and onwards in ten subsequent years from the year in which these are acquired.

3. BORROWING COSTS

Borrowing costs that are directly attributable to the acquisition,construction of qualifying assets have been capitalised as part of cost of assets. Other Borrowing costs are recognised as an expense in the period in which they are incurred.

4. INVENTORIES

Inventories are valued as under :

Stores & Spares are valued at cost.

Raw Materials are valued at cost on FIFO basis except from last year onwards valuation of the Menthol has been made at cost or Market price whichever is less.

Work in Process is valued at estimated cost basis or net realisable value whichever is less.

Finished Goods are valued at cost or net realisable value whichever is less and is inclusive of excise duty and all expenditure directly attributable to production.

5. RECOGNITION OF INCOME AND EXPENDITURE

Sales are recognised when goods are supplied and are recorded net of rebates and sales tax but inclusive of excise duty. Expenses are accounted for on accrual basis.

6. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded at the exchange rates brvailing at the date of the transactions. The gain or loss arising from forward transactions have been recognised in the year in which the contract has been cancelled/ matured. Foreign currency denominated current assets & current liabilities are translated at year end exchange rates. The resulting gain or loss is recognised in the Proit& Loss Account.

In translating the financial statement of rebrsentative foreign offices for incorporation in main financial statements, the monetary assets and liabilities are translated at the closing rates non monetary assets and liabilities are translated at exchange rates brvailing at the dates of the transactions and income and expenses items are converted at the yearly average rate.

7. COMMODITY EXCHANGE TRANSACTIONS

Commodity Exchange Transaction are recorded at the commodity exchange rate brvailing on the transaction date. Contracts remaining outstanding at the year end have been recorded as per year end rate and resultant proit and loss arising from outstanding contracts are

8. RETIREMENT BENEFITS

The retirement benefits of the employees include Gratuity ,Provident Fund & Leave Encashment. The gratuity is funded through the Group Gratuity Policy with Life Insurance Corporation of India and the contribution to the fund is based on actuarial valuation carried out yearly as at 31st March. Contribution to the provident fund is provided on accrual basis. The leave encashment is provided on the basis of employees entitlement in accordance with company's rules.

9. EMPLOYEES STOCK OPTION SCHEME

The accounting value of stock options rebrsenting the excess of the market price on the date of grant over the exercise price of the shares granted under "Employees Stock Option Scheme" of the Company, is amortised as "Deferred Employees Compensation" on a straight-line basis over the vesting period in accordance with the SEBI [Employee Stock Option Scheme and Employee Stock Purchase Scheme] Guidelines, 1999 and Guidance Note 18 "on Share Based Payments" issued by the ICAI.

10. CURRENT & DEFERRED TAX

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deffered tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deffered tax assets is recognised and carried forward only to the extent that there is a virtual certainity that the asset will be realised in future.

MAT Credit Entitlement is shown under the Current Assets in the Balance Sheet. The same will be charged to profit & loss account in coming years as per the provisions of Section 115JB ofIncome Tax Act, 1961.

11. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when there is a brsent obligation as a result of a past event, that probably requires an outflow of resources and a reliable estimate can be made to settle the amount of obligation. Provision is not discounted to its brsent value and is determined based on the last estimate required to settle the obligation at the year end. These are reviewed at each year end and adjusted to relect the best current estimate. Contingent liabilities are not recognized but disclosed in the inancial statements. Contingent assets are neither recognized nor disclosed in the financial statements.

12. GOVERNMENT SUBSIDY

The policy of company is to account for the Government Subsidy on actual receipt basis.

13. EXPORT INCENTIVES

a) Obligation / entitlements on account of Advance Licences Scheme for import of raw materials are not accounted for but given by way of note.

b) Export incentives are treated as income on export under DEPB & other post export incentive schemes and the same is offset & treated as expenditure in the year ofimport/ utilisation of license.

14. INVESTMENTS

Long Term Investments are being valued at cost.

Current Investments are carried at lower of cost & fair value, determined on an individual investment basis.

15. IMPAIRMENT OF ASSETS

Management periodically assesses using external and internal sources where there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the brsent value of future cash flows expected to arise from the continuous use of the assets and its eventual disposal. The impairment loss to be accounted for is determined as the excess of the carrying amount over the higher of the asset's net sales price or brsent value.

16. TRADE RECEIVABLES

Sundry debtors more than three years at the end of Balance Sheet date will be written off from the books of accounts except those debtors pertaining to related parties ands disputed debtors having matter pending under different Courts.

17. OTHER ACCOUNTING POLICIES

Accounting Policies not specifically referred to are in accordance with generally accepted accounting principles.