Rights, Preferences and restrictions attached to the Shares:

1. Equity Shares:

Equity shares rank pari passu as regards to dividend and voting rights. Each share has one vote.

2. Preference Shares

Preference shares have right to preferential dividend of 10% per annum on cumulative basis and also for redemption of principal over the equity shares. Preference share holders have right to vote only on the matters concerning the preference shares.

3. Loans from bank is primarily secured by first charge on inventory, trade receivables and other current assets.

4. The Bank Loan is also collaterally secured by way of first charge on Fixed Assets of the Company including EM of Factory Land and Buildings situated at S No 31 & 39 in Nasthipur Village, Hathnura Mandal, Medak District

The company have not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprises Act, 2006 and hence disclosures if any, relating to amounts unpaid as at the year end to whether with interest paid/payable as required under the said Act has not been given.

5. Raw material, Packing material and Stores and Spares are valued at cost on weighted average.

6. Work in process is taken at cost at various stages of production.

7. Finished goods are valued at lower of the cost or Net Realizable Value.

8. RELATED PARTY DISCLOSURES:

Related parties with whom company entered into transactions during the year:

9. List of Related Parties:

10. Key Management Personnel and Enterprises:

11. P. Prakash Pai, Director

12. P. Ananth Pai, Director

13. P. Abhijeet Pai, Director

14. P. Ashwini Pai, Director

(v) G. S. Ram, Whole Time Director

15. Enterprises / Entities having Common Key Management Personnel

16. Puzzolana Machinery Fabricators (HYD) LLP

17. Soubhagya Confectionery Private Limited

18. CONTIGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

19. Claims against the Company not acknowledged as debts:

20. From Commissioner of Customs, Chennai in respect of Advance licenses not fulfilled within the stipulated time though extension and clubbing of such licenses have been allowed by the Licensing authority Rs. 18,000,000 (Previous year Rs. 18,000,000). The company has received order in favour of the company from Commissioner of Customs, Chennai Vide order No. 10404/2009 dt 23-12-2009. However the department has preferred an appeal before the appellate tribunal against the order issued by Commissioner Customs, (Seaport-Export).

21. From Directorate of Revenue Intelligence, Chennai in respect of alleged non fulfillment of export obligation for Rs. 31,900,000 (Previous year Rs. 31,900,000)

22. Accrued and unpaid preference dividend Rs. 123,092,800 (previous year Rs. 115,696,200)

23. Balances of Trade receivables, payables and loans & advances are subject to confirmation and reconciliation.

24. Figures have been rounded off to the nearest rupee.

25. Previous year’s figures have been regrouped / reclassified where ever necessary to conform to the current year's classification.