NOTES ON THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED ON MARCH 31, 2015

1. Corporate information

Shivalik Rasayan Limited was registered with the ROC, Gwalior, Madhya Pradesh under the Registration number 1498/79 dated 16/03/1979. In the year 1980 company shifted its registered office from Madhya Pradesh to Uttar Pradesh under the Registration number 6992/5041 dated 23/02/1980. Old Registration number has been converted into new Corporate Identification number (CIN) L24237UR1979PLC005041. Registered office of the company is situated in the state of Uttarakhand at Village Kolhupani, P.O.Chandanwari, Dehradun - 248007. The company is manufacturer of organophosphate insecticides such as Dimethoate Technical and Malathion Technical.

2. Significant Accounting Policies

a. Basis of Accounting and brparation of financial statements

The financial statements of the Company are brpared in accordance with the Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as brscribed by the Companies Act 2013 U/s 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Companies Act, 2013 and guidelines issued by the Securities and Exchange Board of India (SEBI), Accounting policies have been consistently applied.

b. Use of estimates

The brparation of the financial statements is in conformity with GAAP, requires management to make judgments, estimates and assumptions that affect the application of polices and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about the carrying values of assets and liabilities that are readily apparent from other sources. Actual results may differ from these estimates.

c. Inventories

Inventories are valued at cost or net realizable value, whichever is lower. Cost of inventories is ascertained on the weighted average basis. Further, in respect of the manufactured inventories, i.e., process stocks and finished goods, appropriate share of manufacturing expenses is included on direct cost basis. Store, fuel and packing materials are valued at lower of cost, based on first-in-first-out method or net realizable value.

d. Debrciation and amortization

Debrciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Debrciation on tangible fixed assets has been provided on the written down value. No debrciation is provided on land.

e. Investments

No Long term investments are made by the company during the current financial year.

f. Purchases

Purchases are net of rebate/special discounts, excise duty, goods returned etc.

g. Employees Benefits

a) Contribution to Provident Fund and Family Pension Fund are accounted for on accrual basis.

b) Leave Encashment Benefits are accounted for on accrual basis.

c) The Company has Gratuity Fund covered by the scheme with LIC of India. The expenses towards gratuity are recognized in the Statement of Profit & Loss on the basis of an actuarial valuation based on projected unit credit method.

h. Revenue Recognition

a) Sales are accounted for on dispatch of goods from the factory to the customers. Net Sales are stated exclusive of returns, sales tax, excise duty and applicable trade discounts and allowances.

b) The claims are accounted for on settled basis.

i. Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

j. Provision for Current & Deferred

Tax Expense comprises of Current Tax and Deferred Tax. Current Tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred Income Tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing difference of earlier years/period. Deferred Tax Assets & liabilities are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed debrciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

Deferred Tax Assets and Liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

k. Contingent Liabilities & Assets

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

34. The Company has not received any confirmation from suppliers regarding their status of registration under the Micro, Small & Medium Enterprises Development Act, 2006 which came into effect from October 2, 2006 and hence disclosure required under the said act have not been given.

35. The Previous Year Figures have been reworked, regrouped, rearranged, reclassified and / or re-casted wherever deemed necessary to make them comparable with those of the current year's figures.

AUDITORS' REPORT

Signed in terms of our report of even date attached

for RAI QIMAT a ASSOCIATES

Chartered Accountants

Sd/- (QIMAT RAI GARG)

Partner

M.No.080857

Firm Regn. No.013152C

FOR AND ON BEHALF OF THE BOARD

Sd/- RAHUL BISHNOI

CHAIRMAN (DIN : 00317960)

Sd/- S. K. SINGH

MANAGING DIRECTOR (DIN : 00318015)

Sd/- VINOD KUMAR

CHIEF FINANCIAL OFFICER (PAN : AQPPK5268F)

Place : New Delhi

Date : 29th May 2015