Vadivarhe Speciality Chemicals Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

Terms / rights attatched to equity shares

The company has single class of equity shares having face value of Rs.10 per share. The voting rights of shareholders in proportion to its share of paid up equity capital of the company. The Equity shares are entitled to receive dividend as declared from time to time. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Note 32

01 Segment Information

I. Business Segments

The Company is only engaged in the business of manufacturing of Speciality Chemicals, Intermediates & API.

II. Geographical Segments

Disclosed based on revenues within India ( sales to customers in India ) and revenues outside India (sales to customer located outside India.)

(i) Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company has provided for gratuity based on actuarial valuation done as per Projected Unit Credit Method.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and the funded status and amount recognized in the balance sheet for the respective plans.

The estimate of future salary increase, considered in the actuarial valuation, takes account of inflation, security, promotion and other relevant factors such as supply and demand in the employment market.

(ii) Defined Contribution Plans -

Amount of Rs. 32,63,700/- (Previous Year: Rs. 30,02,200/-) is recognized as an expense and included in Note 6 - "Contribution to Provident and other funds" in the Profit and Loss account.

The information has been given in respect of such vendors to the extent they could be identified as “Micro and Small Enterprises” enterprises on the basis of information available with the Company

The Company deals with various Micro and Small Enterprises on mutually accepted terms and conditions. Accordingly, no interest is payable if the terms are adhered to by the Company.Consequently, no interest has been paid or is due and no provision for interest payable to such units is required or has been made under Micro, Small and Medium Enterprises Development Act, 2006.

ii) There is No revaluation of company''s Property, Plant and Equipment as on 31.03.2025 and 31.03.2024.

iii) There is no any loans and advances in the nature of loans granted to promoters, KMPs, directors and related parties.

iv) Capital-Work-in-Progress as on 31.03.2025 and 31.03.2024 are disclosed in Schedule KLM

v) There is no Intangible assets under development as on 31.03.2025 and 31.03.2024

vi) There is no benami property held by Company as on 31.03.2025 and 31.03.2024.

vii) Company is not declared as wilful defaulter by any authority

viii) Company don''t have any transactions with companies struck off u/s 248 or 560 of the Companies Act, 2013

x) Compliance with approved scheme of arrangements u/s 230 to 237 of Companies Act,2013 is not applicable to this company.

xi) There is No any loans/funds advanced to any Intermediaries or funds to be received from Funding Parties.

xii) The Company has borrowings from Bank or financial institution in the nature of cash credit on the basis of security of stock, book debts, collateral security and personal guarantee of directors. The outstanding balance as on 31st March, 2025

xiv) The Company has Not declared/proposed any interim and final dividend for the year and previous financial year.

xv) As per Rule 11 (e) of Companies (Audit and Auditors) Rules, 2014, the company has not loaned or advanced or invested or received any funds to/from any entity(ies) or person(s) including foreign entities.

xvi) Compliance with number of layers of companies-Not Applicable to the Company

16 The Company has elected to exercise the option permitted under section 115BAA of the Income Tax Act 1961 as introduced by the Taxation Laws (Amendment)Ordinance, 2019. Accordingly, the Income tax is applicable to the Company is at the basic tax rate

of 22% plus applicable surcharge and cess w.e.f F.Y. 2022-2023.

17 Previous year comparatives

Previous year’s figures have been regrouped, where necessary to conform to the current year’s classification.

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Mar 31, 2024

01 Segment Information

I. Business Segments

The Company is only engaged in the business of manufacturing of Speciality Chemicals, Intermediates & API.

II. Geographical Segments

Disclosed based on revenues within India ( sales to customers in India ) and revenues outside India (sales to customer located outside India.) Geographical Segments

The following table shows the distribution of the Company’s consolidated sales by geographical market, regardless of where the goods were produced.

03 Capital Commitments

Estimated amount Of contracts remaining to be executed on capital account and not provided for

04 Provisions and Contingencies

Bank Guarantee provided to Maharashtra Pollution Control Board of Rs 2,26,82,000/-

Note 10

05 Gratuity and other post-employment benefit plans (i) Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company has provided for gratuity based on actuarial valuation done as per Projected Unit Credit Method.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and the funded status and amount recognized in the balance sheet for the respective plans.

The estimate of future salary increase, considered in the actuarial valuation, takes account of inflation, security, promotion and other relevant factors such as supply and demand in the employment market.

(ii) Defined Contribution Plans -

Amount of Rs. 30,02,200/- (Previous Year: Rs.29,06,900/-) is recognized as an expense and included in Note 6 - "Contribution to Provident and other funds" in the Profit and Loss account.

06 Derivative Instruments and Un-hedged Foreign Currency Expsoure

a Particulars of Unhedged Foreign Currency Exposure as at the Balance Sheet date

The Company does not enter into any derivate contracts to hedge its risk associated with foreign currency fluctuations for its revenue transactions. There are no accounts payables denominated in foreign currency at year end. The unhedged foreign currency exposure in respect of accounts receivable and loans and advances at the year end is given below:

Excise duty on sales amounting to Rs. NIL/- (Previous Year: Rs. NIL/-) has been reduced from sales in Profit & Loss account and has been considered as (income) / expense in Note No 9 & 10 financial statements.

*Note :The company has split the Equity shares of denomination of Rs 100 to Denomination of Rs 10/- on 17/08/2016.

The Company has declared bonus shares in the ratio of 3:2 (3 share bonus for Every 2 shares held in Company) on 27/02/2017 to all existing shares holders.

The information has been given in respect of such vendors to the extent they could be identified as “Micro and Small Enterprises” enterprises on the basis of information available with the Company

The Company deals with various Micro and Small Enterprises on mutually accepted terms and conditions. Accordingly, no interest is payable if the terms are adhered to by the Company.Consequently, no interest has been paid or is due and no provision for interest payable to such units is required or has been made under Micro, Small and Medium Enterprises Development Act, 2006.

ii) There is No revaluation of company''s Property, Plant and Equipment as on 31.03.2024 and 31.03.2023.

iii) There is no any loans and advances in the nature of loans granted to promoters, KMPs, directors and related parties.

iv) Capital-Work-in-Progress as on 31.03.2024 and 31.03.2023 are disclosed in Schedule KLM

v) Intangible assets under development as on 31.03.2024 and 31.03.2023 are disclosed in Schedule KLM

vi) There is no benami property held by Company as on 31.03.2024 and 31.03.2023.

vii) Company is not declared as wilful defaulter by any authority

viii) Company don''t have any transactions with companies struck off u/s 248 or 560 of the Companies Act, 2013

x) Compliance with approved scheme of arrangements u/s 230 to 237 of Companies Act,2013 is not applicable to this company.

xi) There is No any loans/fonds advanced to any Intermediaries or funds to be received from Funding Parties.

xii) The Company has borrowings from Bank or financial institution in the nature of cash credit on the basis of security of stock, book debts, collateral security and personal guarantee of directors. The outstanding balance as on 31 st March, 2024

xiv) The Company has Not declared/proposed any interim and final dividend for the year and previous financial year.

xv) As per Rule 11 (e) of Companies (Audit and Auditors) Rules, 2014, the company has not loaned or advanced or invested or received any funds to/fTom any entity(ies) or person(s) including foreign entities.

xvi) Compliance with number of layers of companies-Not Applicable to the Company

xvii) The Company has not traded or invested in crypto curreny or virtual currency during the F.Y. 2023-24.

15 The Company has elected to exercise the option permitted under section 115BAA of the Income Tax Act 1961 as introduced by the Taxation Laws (Amendment)Ordinance, 2019. Accordingly, the Income tax is applicable to the Company is at the basic tax rate

of 22% plus applicable surcharge and cess w.e.f F.Y. 2022-2023.

16 Previous year comparatives

Previous year’s figures have been regrouped, where necessary to conform to the current year’s classification.

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Mar 31, 2016

B) NOTES ON ACCOUNTS: -

1. Balances of Debtors and Creditors are subject to confirmation.

2. The current assets and current liabilities are, in the opinion of the directors, recoverable and payable at the values stated in the statement of accounts.

3. Security for Secured Loans:

Company has switch over its Financial Facilities from NKGSB Co-op Bank Ltd to Axis Bank Ltd, Nashik Branch. Axis Bank Ltd has taken over overall financial facilities provided by NKGSB Co-op Bank Ltd to the Vadivarhe Specialty Chemicals Ltd.

Cash Credit Account with Axis Bank Ltd.

borrowed during the year and which has been secured by -Primary Security- Hypothecation of entire current assets (present and future) 15% cash margin to be recovered upfront in case of LC and Bank Guarantee.

Term Loan Account with Axis Bank Ltd.

borrowed during the year and which has been secured by -Collateral Security- Exclusive first hypothecation charge on entire movable fixed assets of the Company (present and future)

Personal Guarantee of Directors Mr. Sunil H. Pophale.

4. Dues from Small Scale Industrial Undertaking:

Based on the information available with the Company, no creditor has been identified as “supplier” within the meaning of The Micro, Small and Medium Enterprises Development Act, 2006.

5. It is informed by the management no provision has been made for interest as required by Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 on amounts due to Small Scale Industries, as the amount is not ascertainable. These will be charged to accounts as and when claimed by the parties and/or paid to them.

6. Foreign Exchange Transactions:

i) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

ii) Monetary items in the form of Loans, Current Assets and Current Liabilities in Foreign Currency , outstanding at the close of the year , are converted in Indian currency the appropriate rates of exchange prevailing on the date of the Balance Sheet , resultant gain or loss is accounted in the statement of Profit and loss during the year.

iii) All other incomes or expenditure in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.

7. Since the VAT Audit is yet to complete the changes that may occur due to the VAT Audit will be effected in the year of completion of audit.

8. The advance given to customer Enaitec Labs private Limited of Rs 4,00,00,099/-.

9. Change in the shareholding:

Mr. Sunil Pophale transferred 60,000 shares of Rs 100 each (12.4% shareholding) to Aditi Pophale on 18 May 2015.

10. Creditors includes codexis of Rs 18,72,000/- for the supply of the goods. The balance is outstanding for more than three years. The payment is withheld on account of certain issues arising of the supply and use of the material.

11. Advances from Customer: The advance from customer includes a party Emmellen Biotech of Rs 3_f52,595/-which is pending for more than three years.

12. Creditors for capital good include a party Pharma Air control engineers of Rs 4,58,890/- which is pending since 2012.

13. Items wherever necessary are re grouped re arranged and reclassified accordingly.

Notes to the accounts Note 11

14 Segment Information

I. Business Segments

The Company is only engaged in the business of manufacturing of Specialty Chemicals. Intermediates & API,

The Company has discontinued the Trading and Marketing of Nutraceutical (Food & Health Supplementary) Products.

II. Geographical Segments

Disclosed based on revenues within India ( sales to customers in India ) and revenues outside India (sales to customer located outside India.) Geographical Segments

The following table shows the distribution of the Company’s consolidated sales by geographical market, regardless of where the goods w''ere produced.

Assets and additions to tangible and intangible fixed assets by geographical area: The following table shows the carrying amount of segment assets and addition to segment assets by geographical area in which assets are located:

Note 11

15 Related Parties

Related part}- disclosures:

Name of related parties with whom transactions have taken place during the year:

Key Management Personnel Director Mr. Sunil H. Pophale

Director Mrs. Meena S. Pophale

Director Mr. Vasant P. Jagtap

* As the future liabilities for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to individual basis is not ascertainable and therefore not included above.

d) Details of transactions with related parties, exceeding 10% of line transactions.

Note:

Details of loans given to associates and firms / companies in which directors are interested

The Company has not made any loans and advances in the nature of loan to associates or loans and advances in the nature of loans where there is no repayment schedule or repayment beyond seven years or no interest or interest below Section 186 of the Companies Act, 2013,

Further, there are no loans and advances in the nature of loans to firms / companies iir which directors are interested.

16Leases

In ease of assets taken on lease Finance lease:

Vehicles includes vehicle obtained on finance lease. The lease is for four years after which the legal title would be passed to the lessee. There is no escalation clause in the lease agreement. There is no restrictions imposed by lease arrangements. There are no subleases.

17 Gratuity and other post-employment benefit plans

(i) Defined Benefit Plans —

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company has provided for gratuity based on actuarial valuation done as per Projected Unit Credit Method.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and the funded status and amount recognized in the balance sheet for the respective plans.

The estimate of future salary increase, considered in the actuarial valuation, takes account of inflation, security, promotion and other relevant factors such as supply and demand in the employment market.

(ii) Defined Contribution Plans -

Amount of Rs. 19,87.060/- (Previous Year: Rs. 18,17,762/-) is recognized as an expense and included in Note 6 - "Contribution to Provident .

and other funds" in the Profit and Loss account.

18 Derivative Instruments and Un-hedged Foreign Currency Expsoure a Particulars of Unhedged Foreign Currency Exposure as at the Balance Sheet date

The Company does not enter into any derivate contracts to hedge its risk associated with foreign currency fluctuations for its revenue transactions. There are no accounts payables denominated in foreign currency at year end. The unheeded foreign currency exposure in respect of accounts receivable and loans and advances at the year end is given below:

Note II

19

Excise duty on sales amounting to Rs.1,63.83.190/- (Previous Year: Rs.57,22,269/-) has been reduced from sales in Profit & Loss account and lias been considered as (income) / expense in Note No 9 & 10 financial statements.

The Company has not identified any Creditors identified as "Supplier" within the meaning of The Micro. Small and Medium Enterprises Development Act, 2006

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Mar 31, 2015

B) NOTES ON ACCOUNTS; -

1. Balances of Debtors and Creditors are subject to confirmation.

2. The current assets and current liabilities are, in the opinion of the directors, recoverable and payable at the values stated in the statement of accounts.

3. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in schedule II of the Act. Accordingly the unamortized carrying value is being depreciated/ mortised over the revised/ remaining useful lives. The written down value of Fixed assets whose lives have expired as at 1^st April 2014 have been adjusted net of tax , in the opening balance of Profit and Loss Account amount to Rs. 1,87,156=30/-

4. During the year , the company has provided depreciation over estimated useful lives of assets as prescribed in schedule - II of the Company Act, 2013 of Rs 1,46,30,162/- If the depreciation was provided as per Schedule XIV of Companies Act 1956, the depreciation would have been Rs 1,65,19,817/- and to that extent of Rs 18,89,655/-profit is increased.

In the absence of certainty regarding availability of sufficient future taxable income, the recognition of Deferred Tax Assets has been restricted to the extent of closing Deferred Tax Liability.

In the absence of virtual certainty regarding availability of sufficient future taxable income, the recognition of Deferred Tax Assets on carry forward business loss and depreciation is restricted to the closing Deferred Tax Liability ‘less other items of Deferred Tax Assets.

In the view of above note the net debit/credit on account of Deferred Tax to the Profit and Loss Account in Rs. NIL (Previous Year Rs.NIL)

6. Security for Secured Loans:

The borrowing from Cholamadalam Finance Ltd. by way of vehicle loan has been secured by Bus purchased against it. The Loan has been repaid during the financial year.

Bank Overdraft (Current A/cl NKGSB Co-operative Bank Ltd.

borrowed during the year and which has been secured by -Primary Security- Hypothecation of entire current assets (present and future) 15% cash margin to be recovered upfront in case LC. Collateral Security- EM/ RM of property situated at Gat No.204, Vadivarhe Speciality Chemicals, Nashik Mumbai Highway, Vadivarhe, Igatpuri, Nashik - 422403 admeasuring 11618.19 Sq. Mtr. In the name of Vadivarhe Speciality Chemicals Ltd.

Personal Guarantee of Directors Mr. Sunil H. Pophale.

7• Dues from Small Scale Industrial Undertaking:

Based on the information available with the Company, no creditor has been identified as “supplier” within the meaning of The Micro, Small and Medium Enterprises Development Act, 2006.

8. It is informed by the management no provision has been made for interest as required by Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 on amounts due to Small Scale Industries, as the amount is not ascertainable. These will be charged to accounts as and when claimed by the parties and/or paid to them.

11. Foreign Exchange Transactions:

i) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

ii) Monetary items in the form of Loans, Current Assets and Current Liabilities in Foreign Currency , outstanding at the close of the year , are converted in Indian currency t the appropriate rates of exchange prevailing on the date of the Balance Sheet , resultant gain or loss is accounted in the statement of Profit and loss during the year.

iii) All other incomes or expenditure in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.

12. Since the VAT Audit is yet to complete the changes that may occur due to the VAT Audit will be effected in the year of completion of audit.

13. The advance received against the costumer Enaltec Labs private Limited of Rs 4,33,25,961/- in the previous year has been adjusted against the invoice raised for additional charges and income is recognized. Confirmation of the same is not obtained from the customer.

14. Manasi Pophale transferred entire shareholding (8.57%) i.e. 41 shares to Mr. Sunil Pophale.

15. The director Len F. Vaz has resigned on 30/04/2014 and Mr. Vasant P. Jagtap is appointed as director with effect from 01/05/2014.

16. Items wherever necessary are re grouped re arranged and reclassified accordingly.

i)6 Gratuity and other post-employment benefit plans

(i) Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company has provided for gratuity based on actuarial valuation done as per Projected Unit Credit Method.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and the funded status and amount recognized in the balance sheet for the respective plans.

The estimate of future salary increase, considered in the actuarial valuation, takes account of inflation, security, promotion and other relevant factors such as supply and demand in the employment market.

(ii) Defined Contribution Plans -

Amount of Rs. 18,17,762/- (Previous Year: Rs. 19,48,740/-) is recognized as an expense and included in Note 6 - "Contribution to Provident and other funds" in the Profit and Loss account.

08 Derivative Instruments and Un-hedged Foreign Currency Exposure

a Particulars of Unhedged Foreign Currency Exposure as at the Balance Sheet date

Excise duty on sales amounting to Rs.57,22,269/- (Previous Year: Rs.58,86,022/-) has been reduced from sales in Profit & Loss account and lias been considered as (income) / expense in Note No 9 & 10 financial statements.

The Company is in the process of compiling information necessary for it to ascertain the liability of interest payable to suppliers pursuant to The Micro, Small and Medium Enterprises Development Act, 2006. Management estimates that the amount of interest payable, if any, would not be significant.

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Mar 31, 2014

B) NOTES ON ACCOUNTS: -

1. Balances of Debtors and Creditors are subject to confirmation.

2. The current assets and current liabilities are, in the opinion of the directors, recoverable and payable at the values stated in the statement of accounts.

In the absence of certainty regarding availability of sufficient future taxable income, the recognition of Deferred Tax Assets has been restricted to the extent of closing Deferred Tax Liability.

In the absence of virtual certainty regarding availability of sufficient future taxable income, the recognition of Deferred Tax Assets on carry forward business loss and depreciation is restricted to the closing Deferred Tax Liability less other items of Deferred Tax Assets.

In the view of above note the net debit/credit on account of Deferred Tax to the Profit and Loss Account in Rs. NIL (Previous Year Rs.NIL)

3. Security for Secured Loans:

The borrowing from Cholamadalam Finance Ltd. by way of vehicle loan has been secured by Bus purchased against it.

Bank Overdraft (Current A/c) NKGSB Co-operative Bank Ltd.

borrowed during the year and which has been secured by -Primary Security- Hypothecation of entire current assets (present and future) 15% cash margin to be recovered upfront in case LC. Collateral Security- EM/ RM of property situated at Gat No.204, Vadivarhe Speciality Chemicals, Nashik Mumbai Highway, Vadivarhe, Igatpuri, Nashik - 422403 admeasuring 11618.19 Sq. Mtr. In the name of Vadivarhe Speciality Chemicals Ltd.

Personal Guarantee of Directors Mr. Sunil H. Pophale.

4. Dues from Small Scale Industrial Undertaking:

Based on the information available with the Company, no creditor has been identified as “supplier” within the meaning of The Micro, Small and Medium Enterprises Development Act, 2006.

5. It is informed by the management no provision has been made for interest as required by Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 on amounts due to Small Scale Industries, as the amount is not ascertainable. These will be charged to accounts as and when claimed by the parties and/or paid to them.

6. Foreign Exchange Transactions:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

Foreign currency monetary assets 8s liabilities are restated at the yearend exchange rates. Exchange differences arising on the settlement of currency monetary items or on reporting Company’s foreign currency monetary items at rates different from those at which they were initially recorded during the year or reported in the previous financial statements, are recognized as income or expense in the year in which they arise.

7. The company has discontinued the activity of Neutraceutical (Food 8s Health Supplementary) Products from 01/04/2013.

8. The company is in process of installation of ERP software since Financial year 2012-13 and the expenditure incurred up to 34/03/2014 is Rs. 5,88,000/-. All modules of the software are not in operation and therefore company has not provided the depreciation.

9. Items wherever necessary are re grouped re arranged and reclassified accordingly.

10 Segment Information

I. Business Segments

The Company is only engaged in the business of manufacturing of Speciality Chemicals, Intermediates & API.

The Company has discontinued the Trading and Marketing of Nutraceutical (Food & Health Supplementary) Products.

II. Geographical Segments

Disclosed based on revenues within India (sales to customers in India) and revenues outside India (sales to customer located outside India.) Geographical Segments

The following table shows the distribution of the Company’s consolidated sales by geographical market, regardless of where the goods were produced.

Assets and additions to tangible and intangible fixed assets by geographical area: The following table shows the carrying amount of segment assets and addition to segment assets by geographical area in which assets are located:

12 Leases

In case of assets taken on lease Finance lease:

Vehicles includes vehicle obtained on finance lease. The lease is for four years after which the legal title would be passed to the lessee. There is no escalation clause in the lease agreement. There is no restrictions imposed by lease arrangements. There are no subleases.

13 Capital Commitments

Estimated amount Of contracts remaining to be executed on capital account and not provided for

14 Gratuity and other post-employment benefit plans

(i) Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company has provided for gratuity based on actuarial valuation done as per Projected Unit Credit Method.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and the funded status and amount recognized in the balance sheet for the respective plans.

The estimate of future salary increase, considered in the actuarial valuation, takes account of inflation, security, promotion and other relevant factors such as supply and demand in the employment market.

(ii) Defined Contribution Plans -

Amount of Rs. 19,48,740/- (Previous Year: Rs.18,19,858) is recognized as an expense and included in Note 6 - "Contribution to Provident and other funds" in the Profit and Loss account.

15 Derivative Instruments and Un-hedged Foreign Currency Exposure a Particulars of Unheeded Foreign Currency Exposure as at the Balance Sheet date

The Company does not enter into any derivate contracts to hedge its risk associated with foreign currency fluctuations for its revenue transactions. There are no accounts payables denominated in foreign currency at year end. The unheeded foreign currency exposure in respect of accounts receivable and loans and advances at the year end is given below:

Excise duty on sales amounting to Rs.58,86,022/- (Previous Year: Rs.43,69,272) has been reduced from sales in Profit & Loss account and has been considered as (income) / expense in Note No 9 & 10 financial statements.

The Company is in the process of compiling information necessary for it to ascertain the liability of interest payable to suppliers pursuant to The Micro, Small and Medium Enterprises Development Act, 2006. Management estimates that the amount of interest payable, if any, would not be significant.

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Mar 31, 2013

B) NOTES ON ACCOUNTS: -

1. Balances of Debtors and Creditors are subject to confirmation.

2. The current assets and current liabilities are, in the opinion of the directors, recoverable and payable at the values stated in the statement of accounts.

3. The break-up of deferred tax assets and liabilities into major components at the year end of 31/3/2013 is as below:

In the absence of certainty regarding availability of sufficient future taxable income, the recognition of Deferred Tax Assets has been restricted to the extent of closing Deferred Tax Liability.

In the absence of virtual certainty regarding availability of sufficient future taxable income, the recognition of Deferred Tax Assets on cariy forward business loss and depreciation is restricted to the closing Deferred Tax Liability less other items of Deferred Tax Assets.

In the view of above note the net debit/credit on account of Deferred Tax to the Profit and Loss Account in Rs. NIL (Previous Year Rs NIL)

4. Security for Secured Loans:

The borrowing from Kotak Mahindra and from Cholamadalam Finance Ltd. by way of vehicle loan has been secured by Motor Cars and Bus purchased against it.

Bank Overdraft (Current A/c) NKGSB Co-operative Bank Ltd.

borrowed during the year and which has been secured by -Primary Security- Hypothecation of entire current assets (present and future) 15% cash margin to be recovered upfront in case LC. Collateral Security- EM/ RM of property situated at Gat No.204, Vadivarhe Speciality Chemicals, Nashik Mumbai Highway, Vadivarhe, Igatpuri, Nashik - 422403 admeasuring 11618.19 Sq. Mtr. In the name of Vadivarhe Speciality Chemicals Ltd.

Personal Guarantee of Directors Mr. Sunil H. Pophale.

5. Dues from Small Scale Industrial Undertaking:

Based on the information available with the Company, no creditor has been identified as “supplier” within the meaning of The Micro, Small and Medium Enterprises Development Act, 2006.

6. It is informed by the management no provision has been made for interest as required by Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 on amounts due to Small Scale Industries, as the amount is not ascertainable. These will be charged to accounts as and when claimed by the parties and/or paid to them.

9. Secured Loans:

The company has purchased a (vehicle) motor car from Kotal Mahindra Prime Ltd. and The Bus from Cholamandalam Finance Limited by hypotheting the respective vehicles.

10. Foreign Exchange Transactions:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

Foreign currency monetary assets 85 liabilities are restated at the yearend exchange rates. Exchange differences arising on the settlement of currency monetary items or on reporting Company’s foreign currency monetary items at rates different from those at which they were initially recorded during the year or reported in the previous financial statements, are recognized as income or expense in the year in which they arise.

11. Items wherever necessary are re grouped re arranged and re classified accordingly.

06 Gratuity and other post-employment benefit plans

(i) Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company has provided for gratuity based on actuarial valuation done as per Projected Unit Credit Method.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and the funded status and amount recognized in the balance sheet for the respective plans.

The estimate of future salaiy increase, considered in the actuarial valuation, takes account of inflation, security, promotion and other relevant factors such as supply and demand in the employment market.

(ii) Defined Contribution Plans -

Amount of Rs. 18,19,858/- (Previous Year: Rs. 14,20,220) is recognized as an expense and included in Note 6 - "Contribution to Provident and other funds" m the Profit and Loss account.

08 Derivative Instruments and Un-hedged Foreign Currency Exposure a Particulars of Unheeded Foreign Currency Exposure as at the Balance Sheet date

The Company does not enter into any derivate contracts to hedge its risk associated with foreign currency fluctuations for its revenue transactions. There are no accounts payables denominated in foreign currency at year end. The unheeded foreign currency exposure in respect of accounts receivable and loans and advances at the year end is given below:

Excise duty on sales amounting to Rs.43,69,272/- (Previous Year: Rs. 52,56,673) has been reduced from sales in Profit & Loss account and has been considered as (income) / expense in Note No 9 & 10 financial statements.

The Company is m the process of compiling information necessary for it to ascertain the liability of interest payable to suppliers

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Mar 31, 2012

B) NOTES ON ACCOUNTS: -

1. Balances of Debtors and Creditors are subject to confirmation.

2. The current assets and current liabilities are, in the opinion of the directors, recoverable and payable at the values stated in the statement . of accounts.

In the absence of certainty regarding availability of sufficient future taxable income, the recognition of Deferred Tax Assets has been restricted to the extent of closing Deferred Tax Liability.

In the absence of virtual certainty regarding availability of sufficient future taxable income, the recognition of Deferred Tax Assets on carry forward business loss and depreciation is restricted to the closing Deferred Tax Liability less other items of Deferred Tax Assets.

In the view of above note the net debit/credit on account of Deferred Tax to the Profit and Loss Account in Rs. NIL (Previous Year Rs.NIL)

4. Security for Secured Loans:

The borrowing from Kotak Mahindra and from Cholamadalam Finance Ltd. by way of vehicle loan has been secured by Motor Cars and Bus purchased against it.

Bank Overdraft (Current A/c) North Kannada Gaud Saraswat Brahmin Co-operative Bank Ltd. borrowed during the year and which has been secured by

Primary Security- Hypothecation of entire current assets (present and future) 15% cash margin to be recovered upfront in case as

Collateral Security- EM/ RM of property situated at Gat No.204,

Vadivarhe Speciality Chemicals, Nashik Mumbai Highway, Vadivarhe,

Igatpuri, Nashik - 422403 admeasuring 11618.19 Sq. Mr. In the name of Vadivarhe Speciality Chemicals Ltd.

Personal Guarantee of Directors Mr. Sunil H. Pophale.

5. Dues from Small Scale Industrial Undertaking:

Based on the information available with the Company, only one creditor has been identified as “supplier” within the meaning of The Micro, Small and Medium Enterprises Development Act, 2006.

6. It is informed by the management no provision has been made for interest as required by Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 on amounts due to Small Scale Industries, as the amount is not ascertainable. These will be charged to accounts as and when claimed by the parties and/or paid to them.

9. Secured Loans:

The company has purchased a (vehicle) motor car from Kotal Mahindra Prime Ltd. and The Bus from Cholamandalam Finance Limited by hypotheting the respective vehicles.

10. Foreign Exchange Transactions:

Transactions in foreign currencies are recorded at the exchange rates . prevailing on the date of the transaction.

Foreign currency monetary assets 8& liabilities are restated at the yearend exchange rates. Exchange differences arising on the settlement of currency monetary items or on reporting Company’s foreign currency monetary items at rates different from those at which they were initially recorded during the year or reported in the previous financial statements, are recognized as income or expense in the year in which they arise.

11. Items wherever necessary are re grouped re arranged and re classified accordingly.