1.  CONTINGENT LIABILITIES / CAPITAL COMMITMENTS
 
 a) Contingent Liabilities not provided for in account:
 
 Particulars                    As on 31.03.2011     As on 31.03.2010
 
 In respect of Bank Guarantees            897.30               803.60
 
 In respect of Letters of Credit         1412.42              1143.59
 
 In respect of Corporate Bank 
 Guarantees                              5500.00              2500.00
 
 
 b) Contingent Liabilities in respect of other statutes.
 
 Name of Statute   Nature of Dues   Rsin lacs   Forum whereDispute is
                                                pending 
 
 Income Tax Act.   IncomeTax / 
                   Penalty for        877.78    Commissioner of Income
                   Various                      (Appeal) / Income tax 
                   Financial year               Appellate
                   1999-2000 to                 Tribunal / High Court
                   2006-2007
 
  
 Central Excise    Excise Duty        659.93    Commissioner of 
 Tariff Act        (Financial years             Central
                   2007-2008                    Director General of 
                   to 2010-2011)                Central Excise
                                                Audit team of Central 
                                                Excise /
                                                Central Excise 
                                                Service 
                                                tax AppellateTribunal 
 Labour Laws       Compensation
                   Claims             105.79    Labour Court
 
  
 Value Added       Input Tax Credit    45.83    The Joint Commercial
  Tax                                           Tax
                                                Commissioner Appeal 1 
  
 Professional      Employees            0.40    Disputed between
 Tax                                            Local Authority &
                   ProfessionalTax              Sales Tax Department
 
 
 c) The estimated amount of contracts remaining to be executed on
 capital accounts of Rs. 360.02 lacs (P.Y. Rs.
 982.83 lacs) is not provided for.
 
 2.INTER DIVISION TRANSFER 
 
 Sales Purchases are shown net of Inter Divisional Transfer
 amounting to Rs. 6139.97 lacs (Previous year Rs.  6288.13 lacs). Other
 income and manufacturing expenses are shown net of Inter Divisional Job
 work charges income of Rs. 507.61 lacs (Previous year Rs. 384.45 lacs).
 
 During the year 2005-06, the Company has installed Captive Power plants
 as separate business undertaking, to avail benefit of infrastructure
 under Section 80 IB of the Income Tax Act, 1961. From the same units
 the Company has sold power to the tune of Rs. 765.49 lacs (Previous
 year Rs. 710.56 lacs) to its other units. The same is knocked off from
 sales.
 
 3. FOREIGN EXCHANGE RATE DIFFERENCE
 
 The Net Foreign Exchange Rate difference pertaining to Export
 realisation and option derivatives amounting to Rs.(567.01) lacs
 (Previous Year Rs. 111.96 lacs) has been considered to be Exceptional
 Items in Profit and Loss Account.
 
 4.IMPAIRMENT OF ASSETS
 
 During the year, the Company has impaired its assets to the tune of Rs.
 Nil (Previous year Rs. Nil)
 
 5.  SUBSIDIARIES
 
 The Company has following companies as its subsidiaries:- 
 
 - MeghmaniEurope BVBA
 
 - Meghmani Organics USA Inc.
 
 - Meghmani Energy Limited
 
 - Meghmani Finechem Limited
 
 - PT Meghmani Organics Indonesia
 
 - Meghmani Chemtech Limited
 
 6.SEGMENT REPORTING
 
 For management purpose, the Company is currently organised into two
 major operating divisions - Pigments and Agro Chemicals. These
 divisions are the basis on which the Company reports its primary
 segment information.  Principal activities are as follows:
 
 Pigments division
 
 To Manufacture and distribute Phthalocynine Green 7, Copper
 Phthalocynine Blue (CPC), Alpha Blue and Beta Blue.
 
 Agrochemicals division
 
 To Manufacture and distribute Technical, Intermediates and Formulations
 of Insecticides.
 
 (a) Analysis By Business Segment
 
 Segment revenue and expense:
 
 Segment revenue and expense are the operating revenue and expense
 reported in the Company''s profit and loss statement that are directly
 attributable to a segment and the relevant portion of such revenue and
 expense that can be allocated on a reasonable basis to a segment.
 
 Segment assets and liabilities:
 
 Segment assets include all operating assets used by a segment and
 consist principally of operating receivables, inventories and property,
 plant and equipment, net of allowances and provisions. Capital
 Expenditure includes the total cost incurred to acquire property, plant
 and equipment directly attributable to the segment. Segment liabilities
 include all operating liabilities and consist principally of trade
 payable and accrued expenses.
 
 Inter-segment transfers:
 
 Segment revenue and expenses include transfers between business
 segments. Inter-segment sales are charged at
 
 prevailing market rates. These transfers are eliminated at the Company
 level.
 
 (b) Analysis By Geographical Segment
 
 Segment revenue:
 
 Segment revenue is analysed based on the location of customers
 regardless of where the goods are produced. The
 following provides an analysis of the Company''s sales by geographical
 Markets:
 
 (c) Segment assets and capital expenditure:
 
 Segment assets and capital expenditure are analysed based on the
 location of those assets. Capital expenditure includes the total cost
 incurred to purchase property, plant and equipment.
 An analysis of the carrying amount of segment assets and capital
 expenditure by geographical locations is not presented, as the assets
 are all located in India.
 
 7.  MANAGERIAL REMUNERATION
 
 Managerial remuneration U/S 198 of the Companies Act 1956 paid or
 payable during the financial year to the Directors and Computation of
 Net Profit in accordance with section 198(1) and section 349 of the
 Companies Act, 1956 are as under :-
 
 8.  PROVISION FOR TAXATION
 
 The Company has made Income Tax provision of Rs. 1150.00 Lacs (Previous
 year Rs. 2300.00 Lacs) which includes Wealth tax provision of Rs. 4.10
 Lacs for the year ended on 31st March, 2011 after taking into
 consideration the benefits of Export Oriented units under Section 10 B,
 U/S 80IB and U/S 35(2AB) of Income Tax 1961.
 
 The Income-Tax assessments of the company have been completed up to
 Assessment Year 2007-08. The disputed demand outstanding up to the said
 assessment year is Rs. 877.78 Lacs. Based on the decisions of the
 Appellate authorities and the interpretation of other relevant
 provisions, the company has been legally advised that the demand is
 likely to be either deleted or substantially reduced and accordingly no
 provision has been made.
 
 9. RELATED PARTIES DISCLOSURES :-
 
 - Holding Company :             Nil
 
 - Subsidiaries of the company : Meghmani Organics USA, Inc.(MOL-USA)
                                 Meghmani Europe BVBA(MOL-EUROPE)
                                 Meghmani Energy Limited (MEL)
                                 Meghmani Finechem Limited (MFL)
                                 PT Meghmani Organics Indonesia(MOL- 
                                 INDONESIA)
                                 Meghmani Chemtech Limited (MCTL)
 
 
 - Enterprises in which 
 Directors &                  :  Meghmani Pigments 
 Key Managerial Personnel[KMP]   Ashish Chemicals
  have significant influence :   TapsheelEnterprise
                                 Meghmani Dyes and Intermediates Ltd.  
                                 Meghmani Industries Limited
                                 Meghmani Chemicals Limited
                                 Fidelity Exports Private Limited
                                 Vanguard Overseas Limited 
                                 Panchratna Corporation
 
 
 - Key Managerial Personnel      Mr. Jayanti M Patel
                                 Mr. Ashish N Soparkar 
                                 Mr. Natwarlal M Patel 
                                 Mr. Ramesh M Patel 
                                 Mr.Anand I Patel 
                                 Mr. Ashvin Raythatha
 
 
 - Relatives of Key 
 Managerial Personnel            Ms. Deval Soparkar 
 (Employee)                      Mr. Karna R Patel
                                 Mr. Ankit N Patel
 
 
 - Relatives of Key 
 Managerial Personnel            Mr.  K M Patel 
 (Consultant)
 
 
 10.  The Company has called for balance confirmation of Debtors and
 Creditors on random basis. Out of which the Company has received
 response from some of the parties, which are reconciled with Company''s
 account. The other balances of Debtors and Creditors are subject to
 confirmation.
 
 11.  The Company has received certain intimation from Suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 Development Act,2006 and accordingly company has provided for interest
 of Rs. 5.09 Lacs (P.Y. Rs. 1.01 Lacs) being payable as required under
 the said act.
 
 12.  The figures of previous year are regrouped and rearranged wherever
 necessary so as to make them comparable.
 
 13.  The Company has operating lease from various premises which are
 renewable on a periodic basis and cancellable at its option. Rental
 expenses for operating lease charged to Profit and Loss Account for the
 year Rs. 181.84 Lacs ( Previous year Rs. 82.24 Lacs)
 
 Not later than 1 year Rs. 181.84 lacs (Previous year Rs. 82.24 Lacs)
 
 Not later than 5 years Rs. Nil. (Previous year Rs. Nil)
 
 
 14.  a) During the year, a fire occurred in Unit - II of Panoli
 Division belonging to Pigment Segment.  The
 Company incurred a loss / Expenses for Rs.211,780,309 relating to Stock
 of goods and Fixed Assets destroyed by fire. Accordingly, the Company
 has lodged a claim with Insurance Company and has received Rs.800 lacs
 towards part payment of the above claim.
 
 As per the past practice, The Company''s Management have estimated a
 loss of Rs. 2,500,000 being short recoverable from the insurance
 company which has been charged to Profit and Loss Account as an
 Extraordinary item 
 
 b) Loans and Advances include a sum of Rs.
 129,280,309 towards claim preferred on account fire claim
 with Insurance Company on the basis of loss / expenses incurred by the
 Company which are pending settlement with the Insurance Company. The
 Management is of the view that this is fully recoverable & considered
 good.
 
 15.  The Company has written down the value of inventory of trading
 goods to the extent of Rs. 32.68 Lacs (Previous year Rs.  462.60 Lacs)
 in view of quality of goods.
 
 16.  Trading Purchase includes Rs. 32.68 Lacs and Selling &
 distribution Expenses Includes Rs. 19.23 Lacs (Previous Year Rs. Nil)
 related to Prior Period Expenses.
 
 17.  Retirement Benefits
 
 As per revised Accounting Standard 15 (AS-15) Employees Benefits
 issued by The Institute of Chartered Accountants of India, the Company
 has recognized in the financial statements in respects of Employee
 Benefits Schemes as per Actuarial Valuation as on 31st March 2011.
 
 The estimates of future salary increases, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.
 
 (B) Defined Contribution Plans
 
 Amount recognised as an expenses as contribution / provision to and
 for Provident and other Funds of profit and loss account - Rs. 71.34
 Lacs (Previous year Rs. 63.39 Lacs)
 
 1.  Additional information required under para 3, 4 (c) and 4 (d) of
 part II of Schedule VI of the Companies Act, 1956
 are as under :
 
 1) Licensed & Installed Capacity and Production (in MT)
 
 Note:
 
 - Under the New Industrial Policy, No specific license is necessary for
 the manufacturing of the products
 mentioned above. The installed capacities are as per the certificates
 given by the Directors on which Auditors have relied.
 
 2) Details of Turnover and production
 
 Note: Sales include inter-divisional transfer.
 
 3) Details of Turnover and production of Power Generation Units
 
 Note: Sales include inter-divisional transfer. The above figures are
 obtained from SAP.