Vinayak Polycon International Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company were demerged from Polycon International Limited, a list company also domiciled in India under the Demerger Scheme approved by the Honourable High Court of Rajasthan, Jaipur Bench vide Order Dated 21-07.2011. The company is engaged in the manufacturing and trading of PET Items like PET Bottles, PET Jars, PET Preforms, Caps and Lids etc. Its manufacturing facilities are located at Chennai

Note 2 LONG TERM BORROWINGS

a) Term Loans Rs.162.20 Lac from Bank together with interest and other charges thereon, is secured by equitable mortgage on company's land and building situate at village Pandur, Chengalpattu Taluk, Distt. Kanchipuram (Tamil Nadu) and Hypothecation of plant and machinery and are further secured by way of extension of charge on entire current assets of the company both present and future and are guaranteed by Chairmen, Managing Director and Executive Directors of the company.

b) Term Loans from Bank carry interest @13.5% P.A. on monthly rest. These are due for repayment as under : TL (Ist) Rs.17.04 Lac -To be repaid in balance 2 instalments of Rs.7.95 Lac and 3rd instalment of Rs.1.14 Lcas TL (IInd) Rs 6.70 Lac. -To be repaid in balance 2 instalments of Rs.2.57 Lac and 3rd instalment of Rs. 2.70 Lacs TL (IIIrd) Rs.134.54 Lac -To be repaid in balance 12 instalments of 10.42 Lcas and 13th instalment of Rs.9.50 Lacs Car Loan From HDFC Bank of Rs.3.92 lacs @10%p.a. on monthly interest with instalment of Rs.22,400 per month The loan is secured by hypothecation of vehicle.

Note 3 EARNINGS PER SHARE (EPS)

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. (For the purpose of calculation of number of shares outstanding during the year, shares issued / to be issued pursuant to the scheme of demerger are also counted as complete shares fully paid up.

Note 4 CONTINGENT LIABILITIES

                                                  (Amt. In Rs.)

                                           AS AT           AS AT
                                        31.03.2014      31.03.2013

a) Excise matter disputed in appeals         -               -

b) Claims against the company not 
   acknowledged as debts                     -               -

c) Sales tax matters disputed in appeals     -               -

d) Income Tax matters disputed in appeals    -               - 

    TOTAL                                    -               -

Names of related parties where control exists and their Relationship

Ridam Polymers Pvt. Ltd. Relative of Director are Directors

HMI Corporation                 Relative of Director are Partner

Crystal Packaging               Relative of Director are Partner

Vinod Baid                      Relative of Director

- Shri Bharat Baid

- Shri Vikram Baid

Enterprise over which key management personnel and their relatives are able to exercise significant influence

- Ridam Polymers Pvt. Ltd.

- HMI Corporation

- Jai Sinter Polycon Pvt. Ltd.

- Crystal Packaging

Note 6 Inventories,loans and advances,trade receivables/payables and other current/non current assets are reviewed annually and in the opinion of the management do not have a value on realization in the ordinery course of business, less than the amount at which they are stated in the Balance Sheet. The response to letter sent by the company requesting confirmation of balances has been insignificant. In the management's opion , in the event of any disparity in the balances,any consequential adjustments required on reconciliation of balances will not be material in relation to the financial statements of the company and the same will be adjusted in the financial statementa as and when the reconciliation is completed.

Note 7 The Company is in the process of conducting the Cost Audit of Cost Accounting Records for the current financial year as required under Notification No. G.S.R. 429(E) dated 3rd June, 2011 issued by the Ministry of Corporate Affairs.

Note 8 Previous year's figure have been regrouped/reclassified wherever necessary to correspond with the current year's classification/ disclosure.