In past the company used to manufacture and sell 'Bidis'

The Bidi's manufactured by the company were sold to Traders / Exporters, who used to export them to various countries. Bidi's sold to some such Traders/Exporters were exported by them to USA.

As per the prevailing law in USA, the responsibility of depositing the amount in Escrow Deposit Fund (On account of sales of tobacco products in that country) was of the manufacturer of tobacco products.

Accordingly , on the basis of demand raised against the company for non-fulfillment of this requirement - a sum of Rs.211.40 Lacs is provided for in the books of the company upto 31 st March 2015. (31 st March 2014 - Rs 201.46 Lacs) (Refer Note No.5)

During the current year no any fresh demand was made against the company. The current year figure of appearing in Statement of Profit and Loss Rs.9.95 Lacs represents foreign exchange loss on restatement of outstanding liability of escrow fund demand provision already made in earlier years (Previous year: Loss Rs. 17.76 Lacs)

Note :2

A) The company has established a seperate Gratuity Fund Trust to take care of the Gratuity Liability of its employees. It is informed that against the accrued gratuity liability as on 31st March, 2015 ascertained by the company of Rs. 9,27,298/- (Previous year Rs.9,64,746/-) the Gratuity Fund Trust has investments to the tune of Rs 7,57,647/-. (Previous year Rs 7,43,716/-). The shortfall of Rs 1,69,651/-(Previous year Rs. 2,21,029/-) has been provided for in the accounts of the current year.

B) This gratuity liability calculated by the company/trust takes into account the sum that would have been payable as gratuity to all the eligible employees as on the last day of the financial year as per the Payment of Gratuity Act, 1972 in the absence of Acturial Valuation as per Accounting Standard -15 (Revised).

C) Similarly the liability arising on account of accrued leave salary is provided for in the accounts which considers the sum that would have been payable to the eligible employees as on the last day of the financial year in absence of Acturial Valuation as per Accounting Standard -15 (Revised).

D) Looking at the small number of employees as on 31 st March 2015, the management is of the opinion that, the liability provided for in the books / funds available with the Gratuity Fund Trust are sufficient to cover these obligations.

Note :3

It is informed that Income Tax Assessments have been completed upto A.Y.2011-12.

Note :4

RELATED PARTY DISCLOSURES:

RELATED PARTIES WITH WHOM THE COMPANY HAD TRANSACTIONS, ETC

(i) Associates / Entities in which Promoters are able to exercise significant influence:

1. Rasbihari Enterprises Ltd.

2. Vidarbha Bidi Ltd.

3. Yogi Ayurvedic Products Pvt Ltd.

4. Tip Top Health Zone Pvt.Ltd.

5. STS Exports Ltd.

6. M/s. S.K. Sarda.

7. Sungrowth Manpower Services Pvt Ltd.

8. City Centre Mall Nashik Pvt. Ltd.

9. Sarda Milk & Agra Produce Pvt. Ltd.

10. Sarda Fresh Fruits Pvt. Ltd.

11. Rasbihari Properties Pvt. Ltd.

12. Nashik Natural Products Pvt. Ltd.

13. S. K. Sarda Developers Pvt. Ltd.

(ii) Relatives / Members of Promoter Group:

1. Shri KB Sarda.

2. Sau K.K.Sarda.

3. Shri SK Sarda.

4. Sau.S.V.Sisodiya.

(iii) Key Management Personnel:

Shri C.B.Patil

Note :4

The Company revised depreciation rates on tangible fixed assets w.e.f. 01-04-2014 as per useful life specified in the Schedule II of the Companies Act, 2013. As Prescribed in said Schedule II, an amount of Rs. 1.89 lacs (net of taxes Rs.1.31 lacs) have been charged to the opening balance of the retained earnings for the assets in respect of which the remaining useful life is NIL as on 1st April 2014, and in respect of other assets on that date, depreciation has been calculated based on the remaining useful life of those assets. Had the Company continued with the previously applicable Schedule XIV rates, charge for depreciation for the year ended March 31,2015 would have been lower and the net profit would have been higher by Rs.1.82 lacs.

Note :5

Figures for the previous year have been regrouped wherever considered practicable and necessary.