1. Busines Purchase & Disclosure as per requirement of AS 26 Company
 has taken over business of two partnership firms on 01/04/2005 on going
 concern basis and the details of the same is as follows;
 
 Sr. No. Name of Firm                Amount of   Value of Goodwill
                                 Consideration
 
 1. M/s. J.S. Chemicals        Rs. 19,00,000/-      Rs. 1,25,220/-
 
 2. M/s. Solvochem Industries  Rs. 50,00,000/-        Rs. 20,816/-
 
 The legal formalities for transfer of assets and intimation to
 government authorities is pending.
 
 The details of Goodwill is as below;
 
                                              2005-06            2004-05
 Acquired/purchased-Goodwill
 Useful Life                                  5 years                  -
 
 Gross carrying Amount Opening
 Additions                                    146,036                  -
 
 Amortisation                                  29,207                  -
 
 Closing                                      119,829                  -
 
 4. Preferential Issue of Equity Shares
 
 During the year company has come out with preferential issue of equity
 shares and successfully allotted 29,50,000 equity shares of Rs.10/-
 each at a premium of Rs.31/- to the non promoters of the company.
 
 6. Related party disclosures
 
 a) Related parties:
 
 i. Associate companies
 
 1. RRJ Dyes & Intermediates Limited.
 
 2. Solvochem Intermediates Pvt. Ltd.
 
 3. Goldstar Chemicals Pvt. Ltd.
 
 4. Prolife Biochemical Industries Pvt. Ltd.
 
 ii. Key management Personnel
 
 1. Mr.M.S.Jolly, Director 2. Mr.Ashok Jain, Managing Director
 
 iii. Relative of Key Management Personnel
 
 a) Master Karan Jolly
 
 b) Mrs. Anureet M Jolly
 
 c)   Mrs. Leela L.Patel
 
 Related party transactions:
 
 Natute of transactons      Associate   Key Management   Relative of key
                            Companies        Personnel        Management
 
 
 Sale of goods            1,31,04,600              Nil               Nil
 
 Purchase of goods        1,74,13,901              Nil               Nil
 
 Outstanding                42,25,371              Nil               Nil
 
 Outstanding payable        42,82,318              Nil               Nil
 
 Purchase of business             Nil        38,57,850         30,42,150
 
 7. Earning per share
 
 The company has not issued any potential equity shares, accordingly,
 basic and diluted earnings per share are the same:
 
                                              2005-06            2004-05
 
 Net Profit after Tax                     2,20,90,414         3, 1 0,703
 
 Weighted Average                           64,57,808          51,00,000
 
 No. of Equity Shares
 Nominal Value of Share                            10                 10
 
 Eaming per share                                3.42               0.06
 
 8. Contingent Liabilities                    2005-06            2004-05
 
 Claims against the company not acknowledged
 as debts:                                        Nil                Nil
 
 9. Supplementary Profit & Loss Data          2005-06            2004-05
 
 (a) Remuneration to directors
 
 Salaries                                     160,000                Nil
 
 (b) Payments to auditors
 
 As auditors (Statutory & Tax)                 18,500             11,020
 
 Other services                                   Nil                Nil
 
 (c) Lincenses and Installed Capacities;
 
 Item                                Kilograms
 
 1. 4-Chloro 2 Amino Phenol            360,000
 
 2. Fast Red ITR Base                   36,000
 
 3. Fast Blue BB Base                   24,000
 
 4. Fast Red R Base                     24,000
 
 5. OCPA                               180,000
 
 6. 1,5 DIOA                            60,000
 
 7. Amino Still Banzene                 30,000
 
 8. Acid Yellow                         60,000
 
 9. D.T.P.T.                           150,000
 
 10. Palmitoyl Chloride                 36,000
 
 10. Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and
 other debit/credit balances arc analysed but subject to confirmation
 and adjustments necessary upon reconciliation thereof. Pending
 adjustments on confirmation/reconciliation, if any, the balances are
 taken at recorded amounts and the amounts recoverable are shown as
 good.
 
 11. Accounting for taxes on income (AS-22)
 
 Deferred Tax Liability is Rs. 59,27,590/- on account of liming
 difference in depreciation as per Income Tax Act and Companies Act.
 
 12. Schedule 1 to 19 forms the integral part of the Balance Sheet as at
 3 1st March 2006 and the P & L A/c for the year ended on that date.
 
 13. Prior year comparatives
 
 Prior year amounts have been reclassified, where necessary to conform
 to current years presentation.
 
 14. Balance Sheet abstract and companies general business profile as
 per the annexure.