Your Directors' have pleasure irt presenting hefewith the Annual Report together with the accounts for the period ended 31st March 2014,

FINANCIAL RESULTS:

During the year under review, the financial results on the operations of the Company are as under:

                                                     (Amount in Rupees)

                                        31/03/2014          31/03/2013

Gross Income                            97,651,716          53,446,762

Less : Depreciation                      2,465,808          6,305,785

Profit (Loss) before Tax                 1,145,055        (19,394,558)

Less Provision for Tax : Current Tax         ----               ----

: Deferred Tax                               ----            3,938,431

Profit (Loss) for the year               1,145,035        (15,956,377)

In view of the loss incurred by the Company during the financial year. Directors rearm their inability to recommend any dividend to the shareholders for the year,

DEPOSITS:

The Company has not accepted any public deposits,

E NVIRONMENT AND ENERCY CONSE RVATION:

The company accords high priority to control environment and conservation of energy, which is an on going process. The Company has planted a number of trees to control and maintain environment surrounding ot the factory. As required by the provisions of Section 217(l)(e) of the Companies Act 1956 read with Companies (Disclosure of Particulars in the report of Board of Directors) Rules 1988 the relevant data pertaining to conservation of energy and technology absorption are given in the prescribed Form A in Annexure to (this report. Various measures taken bv the company on these matters includes: '

a) Improving Natural Light by opening Windows, studying illumination of tube lights by CFL lamps etc.

b) Maintaining old machinery in good condition, retrofitting or replacing with energy efficient ones.

c) Minimising idle running of machinery.

The above measures undertaken have resulted in savings in the cost of production.

SAFETY AND HEALTH

The Company gives highest priority to safely and occupational health. The factory buildings and machinery are maintained in safe condition. Process operations and handling of chemicals at the factory are reviewed frequently for safety,

PARTICULARS OF EMPLOYEES UNDER SECTION 217(2A) OF THE COMPANIES ACT 1956

The Company did not have any employee during the year covered under Section 217(2A) of the Companies Act, 1956 read with (he Companies (Particulars of Employees) Rules, 1975

TECHNOLOGY ABSORPTION:

Efforts made in technology absorption are given in Form B in the Anncxurc to this report. DIRECTORS i-

Pursuant to the provisions of Section 255/256 of the Com patties Act, 1956 read with Article No. 115 of Artie tes of Association, Mr, Sand ip Zaveri, Director of die Company retires at the ensuing annua! general meeting and being eligible offers himself for re-appointment.

DIRECTORS' RESPONSIRlUTY STATEMENT:-

lt is hereby stated that:

a) in the preparation of annual accounts, applicable accounting standards have been followed along with proper explanation relating to material departures.

b) The directors selected the accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and' lair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period.

c) The directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. 1956 for safeguarding the assets ol the Company and for preventing and detecting fraud and other irregularities.

d) The Directors had prepared the annual accounts ort going concern basis,

AUDITORS:

M/s Manoj Shah & Co. Chartered Accountants, statutory auditors retire at (he ensuing Annua! General Meeting and are eligible for re-appointment.

As regards, auditor's observation about accounting of retirement benefit on cash basis, the company is in the process of accoounting of liability on the basis of actuarial valuation.

APPRECIATION:

Directors would like to place on record their appreciation of the co-operation and assistance extended by the company 's bankers. Thanks arc also due to the company's employees, staff and executives of the Company for their co-operation and contribution. In concluding this report, the Board acknowledges their deep sense of gratitude to the shareholders, for the confidence they have reposed in the Directors.

                           For and On behalf of the Board of Directors
                                      CHEMIESYNTB (VAPI) LIMITED

                                           Sd/-               sd/-
                                         Salish Zaven     Sandip Zaven
                                         Director          Director