Disputed demand for Sales tax for the years 1996-97 to 2000-01 of Rs. 52,81,360 in terms of orders from the Sales tax Tribunal, Gujarat is decided in favour of the Company. Sales Tax Demand of Rs. 2,73,12,314/- plus interest is also disputed for the years 2002-03 to 2005-06 and appeals are lying to be decided. The Company has preferred appeals against the said orders after taking appropriate advise from the experts.

The Assistant Commissioner of Income-tax, Surendranagar has raised demands of Rs. 72,10,924 disallowing certain claims of deduction from Total Income against which the Company has preferred appeals with ITAT, Rajkot after counselling of the experts. Pending final disposal of the appealed demands, revenue authorities have preferred to attach the fixed and current assets of the Company.

Disputed demand of Rs. 26,19,909/- for A.Y. 2006-07 under the Income Tax Act is lying undecided with Appellate Tribunal, Mumbai.

2. Related Party transactions

Current account outstanding at the year end payable to Mrs. Alpa Haren Shah, wife of Mr. Haren Shah, Director, Rs. 12,00,000, to Mrs. Bhanuben Shah, mother of Mr. Haren Shah, Director, Rs. 11,00,000 and to Mr. Haren Shah, Director, Rs. 2,02,194

3. Earnings Per Share

As per the amended Clause 41 of the Listing Agreement and by virtue of Accounting Standard 20 "Earnings Per Share" issued by the ICAI the disclosures are given below :

Earnings Per Share (EPS) calculation (basic and diluted) :

4. Balances of Sundry Debtors, Banks and Loans & Advances are subject to confirmation.

5. Amount realised on sale of residue agricultural waste is classified under Other Income.

6. Previous year's figures have been regrouped/recast wherever necessary and are in brackets besides current years' figures. Figures of loss are presented in Brackets.