Note - 1: Related Party Disclosure

(A) List of related parties (as identified by management)

(i) Enterprises Owned or significantly influenced by KMP or their relatives:

I G Petrochemicals Limited

(ii) Key Management Personnel (KMP)

1. Mr M M Dhanuka - Managing Director & CEO

2. Mr Paras Jain - Chief Financial Office (upto May 31, 2017)

3. Mr Nilesh Panchal - Chief Financial Officer ( from June 1, 2017)

4. Mr Anand Kadkol - Company Secretary (upto January 19, 2018)

3. Ms Pragati Nathani - Company Secretary (from February 14, 2018)

(iii) Relatives of KMP.

1. Mrs Binadevi Dhanuka - Wife of Managing Director & CEO

2. Mr Mayank Dhanuka - Son of Managing Director & CEO

3. Mrs Neha Dhanuka - Son's wife of Managing Director & CEO

(B) Transaction during the year ended and balances outstanding with related parties are as follows:

(i) Outstanding balances with related parties

The estimates of future salary increase, considered in actuarial valuation, taken on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

(II) Provident Fund

In accordance with the Employee's Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to receive benefit in respect of Provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees salary. The contribution, as specified under the law, are made to the provident fund administered and managed by Government of India (GOI) and Mysore Petro Chemicals Ltd Officers Provident Fund Trust (MPCL OPF Trust). The Company has no further obligation under the fund managed by the GOI and MPCL OPF Trust beyond its monthly contribution which are charged to the Statement of Profit and Loss in the period they are incurred except shortfall if any based on the Government specified minimum rate of return in the case of MPCL OPF Trust . The benefit are paid to employees on their retirement or resignation from the Company.

NOTES TO THE STANDALONE FINANCIAL STATEMENT AS AT MARCH 31, 2018 Note - 35: Note on Slump Sale

The Company has sold the Maleic Anhydride Unit situated at T-1, MIDC Industrial Area, Taloja, Dist. Raigad, Maharashtra - 410 208 to I G Petrochemicals Limited (IGPL) as a going concern on slump sale basis effective from April 1, 2017 for consideration of Rs, 74.48 Crores (Rupees Seventy Four Crores Forty Eight Lakhs Only) as per valuation by Haribhakti & Co. LLP and also approved by shareholders of the Company. The Profit on sale of the unit amounting to Rs, 6,459.20 Lakhs is shown under Exceptional item.

Note - 2 :Financial Risk Management Policies and objectives

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's financial risk management policy is set by the Board.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables, payables, loans and borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures & borrowings.

Interest rate risk

The Company's exposure to interest rate risk is minimal as the Company does not have any significant interest earning asset or interest bearing liability. As such, the Company is not exposed to significant interest rate risk as at the reporting date.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company maintains sufficient cash and cash equivalents to manage its liquidity risk.

Credit Risk

Credit risk is the risk that counterparty will default on its contractual obligations resulting in a financial loss to the Company. To manage this, the Company periodically assess the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts and agreeing of accounts receivable. Individual risk limit are set accordingly.

Financial assets are provided for when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company categorizes a loan or receivable for provision as per provisioning policy of the Company. Where loans or receivables have been provided, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in the statement of profit and loss.

Foreign Currency Risk

Foreign Currency exposure as at balance sheet Date is Nil

Note -3: Pursuant to Ind AS -17 ‘Leases’, the following information is disclosed

a) The Company has given asset on operating lease. The lease rental are receivable by the Company on monthly basis.

b) Future minimum lease rentals receivable under non-cancellable lease agreements are as under:

Note - 4:

The operations of Phthalic Anhydride Plant at Raichur, Karnataka was closed during 3rd week of April 2013. The Board of Directors of the Company in their meeting held on June 4, 2013 had decided to close the unit permanently due to Economic unviability and the unit is closed since July 16, 2013.

Note - 5: Segment Information

For management purposes, the Company is into one reportable segment i.e. trading activity.

The Managing Director is the Chief Operating Decision Maker of the Company who monitors the operating results of its Company for the purpose of making decisions about resource allocation and performance assessment. Company's performance as single segment is evaluated and measured consistently with profit or loss in the standalone financial statements.

Note - 6: Proposed Dividend

The Board of Directors at its meeting held on May 29, 2018 have recommended a payment of final dividend of ' 2 (Rupees two only) per equity share of face value of ' 10 each for the financial year ended March 31, 2018. This amounts to ' 158.74 lakhs including dividend distribution tax of ' 27.07 lakhs.

NOTES TO THE STANDALONE FINANCIAL STATEMENT AS AT MARCH 31, 2018

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

Note - 7: First-time adoption of Ind AS

For all periods up to and including the year ended March 31, 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (‘Previous GAAP'). This note explains the principal adjustments made by the Company in restating its financial statements prepared under Previous GAAP.

(A) Exemptions availed:

Ind AS 101- First-time adoption of Indian Accounting Standards, allows first-time adopters, exemptions from the retrospective application and exemption from application of certain requirements of other Ind AS. The Company has availed the following exemptions as per Ind AS 101:

1 The Company has elected not to apply Ind AS 103- Business Combinations, retrospectively to past business combinations that occurred before April 1, 2016 (‘Ind AS Transition Date').

2 The Company has elected to consider the carrying value of all its items of property, plant and equipment and investment property recognized in the financial statements prepared under Previous GAAP and use the same as deemed cost in the opening Ind AS Balance Sheet.

3 The carrying amounts of the Company's investments in its associate company as per the financial statements of the Company prepared under Previous GAAP, are considered as deemed cost for measuring such investments in the opening Ind AS Balance Sheet.

Footnotes:

1 In the financial statements prepared under Previous GAAP, remeasurement of defined benefit plans, arising primarily due to change in actuarial assumptions was recognized as employee benefits expense in the Statement of Profit and Loss. Under Ind AS, such remeasurement benefits relating to defined benefit plans is recognized in OCI as per the requirements of Ind AS 19- Employee benefits.

2 In the financial statements prepared under Previous GAAP, dividend on equity shares recommended by the Board of Directors after the end of reporting period but before the financial statements were approved for issue, was recognized as a liability in the financial statements in the reporting period relating to which dividend was proposed. Under Ind AS, such dividend is recognized in the reporting period in which the same is approved by the members in a general meeting.

3 Under Previous GAAP, there was no concept of Other comprehensive income. Under Ind AS, specified item of Income, expenses, gains or losses are required to be presented in Other Comprehensive income.

4 The transition from Previous GAAP to Ind AS has not had a material impact on the statement of cash flows.

5 In the financial statements prepared under Previous GAAP, revenue from sale of products was presented net of excise duty. However, under Ind AS, revenue from sale of products includes excise duty. Excise duty expense amounting to ' 322.74 lakhs is presented separately on the face of the Statement of Profit and Loss for the year ended March 31, 2017.