The company has only one class of shares referred to as equity shares having a par value of Rs 10/- each.

Each holder of the equity share, as reflected in the records of the company as of the date of the shareholders meeting, is entitled to one vote in respect of each share held for all matters submitted to vote in the shareholders meeting.

NOTE 2

Disclosure of shares held by its holding company

11060000 ( Pr. Year 11060000) Equity Shares fully paid up of Rs.1106 lakhs (Pr. Year Rs. 1106 lakhs ) are held by M/s Hindustan Organics Chemicals Limited, the holding company.

3. The Term loan from HOCL is secured by part of the land to the extent of 62 acres of the Factory & Plant and Buildings at Rudraram Village.

4. The Term loan from HOCL of Rs. 2744.06 lakhs is Zero coupon loan as per terms of the BIFR agreement and is repayable in seven equal annual installments as per the loan agreement commencing from F Y 2010-11. The installment due for F Y 2010-11 , 2011-12 , 2012-13, 2013-14, 2014-15 amounting to Rs.1960.04 lacs is not paid by the company and current maturities of F Y 2015-16 amounting to Rs.392.01 lacs are shown in Note - 8 under the head ' Other Current liabilities' being current maturities of long term debt.

5. The Term loan from HOCL of Rs.756.42 lakhs is Interest bearing @ 10.25% to 14.50% repayable in 5 annual installments commencing from F Y 2010-11 as per the loan agreement. The company is continuing default in payment of all the installments due and interest during the F Y 2010-11 to 2014-15 amounting to Rs.456.43 lacs is not paid by the company & shown in Note -8 of the financial statements under the head 'Other Current liabilities' being current maturities of long term debt and interest due amounting to Rs.616.23 lakhs under Interest accrued and due.

6. Term loan of Rs. 5.00 Crore @14.20% p.a. (floating) for refurbishment of PTFE plant and setting up Modified PTFE plant repayable in 5 years 3 months including moratorium period of 9 months after the completion of the project commencing from April, 2015. The company hypothecated land of 60.285 acres and plant and machinery as collateral security besides furnishing of corporate guarantee by promoter company Viz., HOCL to this extent. Further, HOCL has given an undertaking that they will not withdraw their investments during the period of loan.

7. The company has received plan loan from government of India Rs. 3,60,00,000/-for manufacture of MPTFE on 22.8.2014 and Rs. 13,20,00,000/- for refurbishment of the Plant and HFP and FEP related items on 01.01.2015 @11.5% p.a. repayable in 5 annual installments commencing from F.Y. 2015-16. The 1st installment due for F.Y. 2015-16 amounting to Rs. 336.00 lakhs shown in Note-8 under the head 'Other Current liabilities being Govt. Plan Loan current maturities of long term debt'.

8. Secured by hypothecation of the company's entire stock of raw materials, finished goods, stock in process, consumables, stores & spares and book debts, plant and machinery and part of the land to the extent of Acres 60.285 out of the total land of Acres126.13 at Rudraram Village and guaranteed by the holding company, viz. Hindustan Organic Chemicals Ltd. The cash credit is repayable on demand and carries interest @14.2% p.a.

9. Margin money deposits are subject to first charge/ lien to secure the company's cash credit loan and term loan with a maturity period of 6 to 12 months. 15(B). The company has made a deposit with SBH (Corporate Liquid Term Deposit) for a maturity period of 1 year.

10. Balance standing to the debit/credit of parties is subject to confirmation by them and review by the Company. 14(B) Debts overdue for a period exceeding six months includes towards case filed in High Court of Andhra Pradesh, which is pending amounting to Rs.129.16 Lacs (Previous year Rs.129.16 Lacs)

11. Both employer and employees make monthly contributions of 10% instead of 12% as per BIFR scheme to a separately managed exempted EPF Trust.

12. As per Accounting Standard 15 "Employee benefits", the disclosures as defined in the Accounting Standard are given below:

The Company's Provident Fund is exempted under section 17 of Employees' Provident Fund and Miscellaneous Provisions Act,1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the trust vis-…-vis statutory rate.

Defined Benefit Plan

The employees' gratuity fund scheme managed by a trust (Life Insurance Corporation of India) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected unit credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

Note - 13

The company has prepared these financial statements as per the format prescribed by Schedule III of the Companies Act, 2013 ('' the schedule'') issued by Ministry of Corporate Affairs. Previous period's figures have been recast/restated to conform to the classification required by the Schedule - III

Note - 14

Previous year's figures have been regrouped/reclassified, wherever necessary to confirm to current year's classification.