1.  CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:
 
 a) Income Tax                   12,718    52,068
 
 b) Excise Duty                   5,842     1,757
 
 c) Sales Tax                     5,739     5,739
 
 d) Bank Guarantee                1,380     1,380
 
 e) Claims against the Company 
 not acknowledged as debt         7,683     7,640
 
 Note: Future cash outflows in respect of (a),(b) and (c) above are
 deteminable on receipt of judgements/decisions pending with various
 forums/authorities.
 
 2. The tax year for the company is the financial year ending March 31
 and the provision for taxation has been calculated for the year ending
 December 31, 2010. The ultimate tax liability will be determined on the
 basis of the figures for the period April 1, 2010 to March 31, 2011.
 The net deferred tax has been provided in Profit and Loss Account as
 per Accounting Standard 22 - Accounting for Taxes on Income issued by
 the Institute of Chartered Accountants of India as detailed:
 
 3. The Company has installed Wind Turbine Generators (WTG) at Lamba,
 Dhank and Pransla in Gujarat. The Local Power Station of the Madhya
 Gujarat Vij Co. Ltd. (MGVCL) grants credit for the power units
 generated by the WTG. Accordingly, the amount of Power and fuel
 consumption disclosed is net of such credit given by MGVCL aggregating
 to Rs. 35,688 (000) (Previous Year Rs. 45,131 (000)).
 
 4. The Company manufactures and sells ABS and SAN and does trading of
 Polycarbonates which belongs to the same product group i.e. Highly
 Specialized Engineering Thermoplastics. The product has the same risks
 and returns, which are predominantly governed by market conditions,
 namely demand and supply position. The Company basically sells all the
 three products within the country and hence the segment based on
 geographical risk factors which may be present in different countries
 is not applicable. Thus, in the context of Accounting Standard 17
 Segment Reporting, issued by the Institute of Chartered Accountants
 of India, there is only one identified reportable segment.
 
 5.  Disclosure of the relationship and transactions with the related
 parties as defined in Accounting Standard 18 Related Party
 Disclosures, issued by the Institute of Chartered Accountants of India
 are as follows:
 
 RELATED PARTY TRANSACTIONS
 
 List of Related Parties with whom transactions have taken place during
 the year 2010
 
 (as identified and certified by the management)
 
 Holding Company
 
 holds 83.33% of the equity share capital INEOS ABS (Jersey) Limited
 
 Channel Islands
 
 Other Related parties INEOS ABS (USA) Corporation
 
 Ohio (USA)
 
 INEOS USA LLC
 
 Texas (USA)
 
 INEOS ABS (Spain) S.L.
 
 Barcelona (Spain)
 
 INEOS ABS (Deutschland) Gmbh
 
 Germany
 
 Shiva Pharmachem Limited
 
 Vadodara (India)
 
 Key Managerial Personnel
 
 Managing Director Mr. R.S. Agrawal
 
 6.  The Companys significant leasing arrangements are mainly in
 respect of residential and office premises. The aggregate lease rentals
 payable on these leasing arrangements are charged as rent under
 Manufacturing and Other Expenses in Schedule 15.
 
 These leasing arrangements are for a period not exceeding five years
 and are in most cases renewable by mutual consent, on mutually
 agreeable terms.
 
 7. The Company has undertaken necessary steps to comply with the
 Transfer Pricing regulations. The Management is of the opinion that the
 international transactions are at arms length and hence the aforesaid
 legislation will not have any impact on the financial statements,
 particularly on the amount of tax expense and that of provision for
 taxation.
 
 8.  Provision for Contingencies (Rupees 000)
 
 Particulars                                    2010       2009
 
 Provision for Contingencies
 
 Carrying Amount at the beginning of the year   79,750       -
 
 Additions during the year                        -       79,750
 
 Utilisation during the year                      -          -
 
 Carrying Amount at the close of the year       79,750    79,750
 
 Represents estimates made for probable liabilities arising out of
 commercial transactions with parties and pending settlement of
 duties/levies with various government authorities. The information
 usually required by Accounting Standard 29 Provisions, Contingent
 Liabilities and Contingent Assets notified under section 211 (3C) of
 the Companies Act 1956, is not disclosed on the grounds that it can be
 expected to prejudice the interest of the Company. The timing of the
 outflow with regard to the said matters depends on exhaustion of
 remedies available to the Company under the Law and hence the Company
 is not able to reasonably ascertain the timing of the outflow.
 
 9.  Figures for the Previous Year have been regrouped and reclassified
 wherever necessary, to conform to the current years classification.