1.1 Rights, preferences and restrictions
 
 The company has only one class of share capital being Equity Shares
 having a face value of Rs. 10/- per share. Each share holder is
 entitled to one vote per share. The company declares and pays dividend
 in indian rupees. The dividend payable on equity shares is subjected to
 recommendations of Board of Directors and share holders in Annual
 General Meeting, except in the case of interim dividend. In the event
 of liquidation, the equity shareholders are eligible to receive the
 remaining assets of the company in proportionate to their share
 holdings.
 
 1.2 The Company has no Subsidaries or Holding Company.
 
 1.3 Of the above, 1,01,34,633 Shares alloted as fully paid shares in
 2006 in pursuance to the Scheme of Arrangement without payment in cash
 
 1.4 During the year, 5,47,370 Equity shares of Rs. 10/- each were
 issued under preferential allotment for cash at a premium of Rs. 33.95
 per share
 
 1.5 During the year two companies namely SRHHL Industries Limited and
 TGV Pharma Private Limited (transferor companies) were amalgamated in
 to the company under a Scheme of Arrangement duly approved by Hon''ble
 High Court of Andhra Pradesh by its Order dated 31st Aug 2012. The
 appointed date is 1st Apr, 2011 and effective date is 20th Sept, 2012.
 In pursuance to the Order of the Hon''ble High Court approving Scheme
 of Arrangement, following effects are given in the share capital
 
 i) The Authorised capital is increased by clubbing of authorised
 capitals of transferor companies
 
 ii) Towards discharge of purchase Consideration, the company is under
 obligation to allot 13,69,955 and 11,16,073 equity shares of Rs. 10/-
 each fully paid to the equity share holders of transferor companies.
 The shares stand issued and are to be alloted to the members, whose
 names are to be determined on a record date to be fixed in consultation
 with Stock Exchanges. Pending allotment, these 24,86,028 equity shares
 of Rs. 10/- each fully paidup issued as per terms of the Scheme of
 Arrangement are disclosed as share capital suspense under issued
 capital
 
 (i) In pursuance to Order of Hon''ble High Cour of Andhra Pradesh,
 approving the Scheme of Arrangement, the surplus over assets and
 liabilities taken over are treated as general reserve under
 amalgamation. This treatment is keeping in view the uniformity in
 accounting treatment and consistency.
 
 (ii) This treatment is in deviation from treatment suggested from
 AS-14, Accounting for Amalgamation.
 
 (iii)There is no financial impact on profitability due to the above
 treatment except that Capital Reserve whould have increased by
 Rs.1073.74 lakhs and corresponding amount decreased in General Reserve.
 
 (i) Security
 
 (a) The term loan from banks are secured by exclusive charge on
 specific fixed assets.
 
 (b) The loans repayable on demand from banks are cash credits, bills
 purchases, discountings, letter of credits limits and bank guarantees
 are secured by Hypothecation of Raw-material, Stock in process,
 Finished goods, consumable Spares, Book debts and receivables.
 
 (c) The working capital and Term loans from banks are also secured by
 first charge on some of the fixed assets of the company.
 
 (d) The working capital and Term loans from banks are further secured
 by guarantee from Managing Director and a promoter in their individual
 capacity
 
 (ii) Defaults
 
 There are no defaults/continuing defaults as on 31st Mar,2012 in
 payment of interest and repayment of loans.
 
 2 Contingent liabilities and Commitments 
 
 Contingent liabilities:
 
 a) Claims against company not 
 acknowledged as debts                    15,32,72,000    13,47,00,000
 
 b) Guarantees outstanding                 4,77,00,000     6,49,51,000
 
 c) Other money for which company is 
    contingently liable
 
 1) Consumers cheques / bills 
    discounted with Banks                  3,71,89,000     6,81,67,000
 
 2) Unexpired Bank Guarantees 
    provided by the Company                  92,12,000     2,37,01,000
 
 3) Unexpired Letters of Credit 
    established by the Company            14,46,49,000    15,06,75,000
 
 4) Income Tax Appeal pending against 
    Income Tax
    Assessment Order                          3,04,719               -
 
    Commitments :
 
 a) Estimated amount of contracts 
    remaining to be executed
    on capital account and not 
    provided for                           7,73,32,000     1,40,28,000
 
 b) Uncalled liability on shares and 
    other investments partly paid                  500               -
 
 3. Notes forming part of accounts:
 
 3.1 Basis of preparation
 
 i) The accounts are maintained under Historical cost Convention and are
 prepared on accrual basis (except income and expenditure below Rs.5000/
 per transactions and impairment or revaluation if any) as a ‘going
 concern'' by complying with generally accepted accounting principles and
 applicable Accounting Standards.
 
 ii) The Accounting policies have been consistently followed and
 financial statements are prepared to comply in all material aspects in
 respect with Accounting Standards notified by the Companies Accounting
 Standards Rules, 2006 and relevant provisions of the Companies Act,
 1956.
 
 3.2 Use of estimates
 
 The preparation of financial statements is in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that effect the reported amounts of such assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the result of operations during the end of
 reporting period. Although these estimates are based upon management''s
 best knowledge of current events and actions, actual results could
 differ from estimates.
 
 3.3 Micro, Small and medium enterprises
 
 The Company identified Micro, Small and Medium Enterprises on the basis
 of information made available to the company by the suppliers. The
 Company is regular in making payments to Micro,Small and Medium
 Enterprises. The principal amounts outstanding as on 31-03-2012 and
 remaining unpaid to any Micro, Small and Medium Enterprises is Rs.1,
 83, 24,561/- and the said amounts are due for less than 45 days as on
 31-03-2012.Hence,excepting above, there is no reportable information
 under Sec 22 (i) to (v) of Micro, Small and Medium Enterprises Act,2006
 read with part I of Schedule VI to the Companies Act,1956.
 
 3.4 Disclosure under AS-14 Accounting for Amalgamation
 
 1.  During the year SRHHL Industries Ltd (Transferor company 1)
 (engaged in power generation and real estate leasing) and TGV Pharma
 Ltd (Transferor company 2) (engaged in manufacturing of industrial
 chemical) have been amalgamated with the company on 20.09.2012 with
 retrospective effects from 01.04.2012 (appointed date), in terms of the
 scheme of amalgamation duly sanctioned by the Hon''ble High Court of
 Andhra Pradesh vide its Order dated 31st August, 2012. Pursuant to the
 terms of Order of the Hon''ble High Court of Andhra Pradesh, SRHHL
 Industries Limited and TGV Pharma Limited stood dissolved without
 winding up and accordingly the entire assets, liabilities, licenses,
 limits of SRHHL Industries Limited and TGV Pharma with the banks,
 permissions, pending cases, employees has been transferred to and vest
 in the company.
 
 2.  The Amalgamation is in the nature of ‘Pooling of interest''
 method as defined in AS-14, Accounting for Amalgamation issued by the
 Central Government under section 211 (3C) of the Companies Act, 1956
 and is accounted accordingly, This results in the transfer of assets
 and liabilities and issue of shares towards payment of consideration at
 the following summarised scheme.
 
 B.  Defined benefit plan:
 
 The company has employees group gratuity fund through a policy with LIC
 and contributes to the fund through annual renewal premium determined
 based on actuarial valuation using projected unit credit method as at
 31-03-2012.The company has funded current service cost obligations and
 contributions made are recognized as expenses. The unfunded past
 service cost is provided as per actuarial valuation as on
 31-03-2012.The disclosures in respected of funded and unfunded defined
 benefit obligations as required by AS 15 are as below.
 
 3.5 Disclosure under AS-16 Barrowing cost
 
 During the financial year the company has two qualifying assets i.e.
 expansion of calcium hypo chloride project and captive thermal project
 at the end of the year and these are under implementation. The
 Barrowing cost that are directly relate to these qualifying assets are
 determined, identified and capitalised during the financial year amount
 to Rs. 1,65,57,218 (previous year : Rs. Nil )
 
 3.6 Disclosure under AS-17 Segment reporting
 
 The Company has disclosed Business segment as the primary segment with
 geographical segment being secondary segment based on geographical
 location of customers. Segment have been identified taking into account
 the nature of the products differing risks and returns, The
 organization structure and internal reporting system.
 
 The Company operations predominantly relate to manufacture of
 chemicals.  Other business segments reported are Wind energy
 generation.
 
 Segment revenue, Segment Results, Segment Assets and Segment
 liabilities include the respective amounts identifiable to each of the
 segments as also amounts allocated on a reasonable basis.
 
 The expenses, which are not directly attributed to the business
 segment, are shown as unallocable corporate cost.
 
 Assets and liabilities that cannot be allocated between the segments
 are shown as a part of unallocable corporate assets and liabilities
 respectively.
 
 3.7 Confirmation of balances.
 
 Confirmation of balances from certain parties for amounts due to them
 or due from them is yet to be received. Confirmation letters were
 received from some of the parties. No material discrepancies are
 observed.
 
 3.8 Regrouped/ Rearranged/ Reclassified.
 
 From the current financial year the provisions of Revised Schedule VI
 is applicable and disclosures for the financial year are in compliance
 of the revised schedule. Previous year figures have been
 regrouped/rearranged/ reclassified wherever necessary to make them
 comparable with current year''s disclosures.
 
 3.9 Rounding off
 
 Figures shown in the accounts have been rounded off to the nearest
 rupee.