NATURE OF SECURITY

Term loan amounting to Rs.32,97,253/- (March 31.03.2014 Rs.78,36,517/-) is secured by Exclusive and specific charge on the assets acquired under the loan for Land & Factory Shed, Plant & Machinery.

Note : 2

TERMS OF REPAYMENT

Repayable in 77 months Installments commencing from April,2010. Last Installment due in September,2016. Rate of Interest 13.25% p.a. at year end.

NOTE : 3

AS Per AS- 18 Related Party Disclosures:

List of related parties with whom transactions have taken place during the year

STATUS                               NAME OF THE RELATED PARTY

Holding Company:                     P & J Cretechem Pvt. Ltd.

Key Managerial Personnel             Prakash Chand Jain
                                     Rajesh Pokerna
                                     Sunil Kumar Jain
                                     Sanjay kumar Jain

Relatives Of Key
Managerial Person                    Alka Devi Jain

Note 4.

Contingent liabilities provided for Rs. Nil. (Previous Year: Rs. Nil).

Note 5

Retirement Benefit - Gratuity

The company has an unfunded defined contribution gratuity plan. Every employee who has completed 5 years or more of service is eligible for a gratuity on departure at 15 days salary (last drawn salary) per each completed year of service.

Consequent to the adoption of revised AS- 15 Employee Benefits issued under Companies (Accounting Standards) Amendment Rules 2008, the following disclosures have been made as required by the standard.

The following tables summaries the component of the net employee benefit expenses reconginsed in the profit and loss account, and the fund status and amount recognised in the balance sheet for the gratuity benefit plan.

Note 6.

The Company has also made provision for Liability related to their employees who are not covered under the above scheme. The balance of this Non-Funded Liability as on 31.03.2015 is Rs.9,05,865/- (Previous year Rs.9,05,865/-).

Note 7.

The Company's significant leasing arrangements are in respect of operating lease for premises (Residential for Directors & Employees, Guest House, Offices etc). The leasing arrangements, which are not non-cancelable, range between 11 months and 3 years generally or longer and are usually renewable by mutual consent between the parties. The amount of lease rent paid is debited to Rent Account.

Note 8.

The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006. Hence, disclosures if any, relating to amounts unpaid as at the year-end together with interest paid/payable as required under the said Act have not been made.

Note 9.

Previous Year's figures have been regrouped/ reclassified wherever necessary to correspond with current year's classification / disclosure.

The figures have been rounded off to nearest rupee.