(a) Where Control exists: NIL

(b) Key Management Personnel:

Shri Kama! Ranka: Chairman and Managing Director

Shri S. N. Sharma: Whole Time Director & CEO (Upto 24di April' 13)

(c) Relative of Key Management Personnel with whom transactions have been entered Shri Kanishk Ranka

M/s. Shubham Corporate Advisory Services Pvt. Ltd

2. Deferred Tax Asset

2.1 Provision for Income Tax has not been made for the year in view of the past accumulated losses.

2.2 The Company is entitled for set off of carried forward losses and unabsorbed depreciation against the future income under the Income Tax Act. However, based on present scenario, the company is not certain of earning sufficient profits to utilize these carried forward losses and unabsorbed depreciation in future and accordingly the Company has recognized deferred tax assets only to the extent there is deferred tax liability, considering the principal of virtual certainty as stated in the Accounting Standard 22 issued by The Institute of Chartered Accountants of India. The major components of deferred tax assets and liabilities on account of timing differences are as given below:

3. Additional Information to the financial statements

3.1 The net worth of the company has been fully eroded as on 31st March, 2000 as per the provisions of the Sick Industrial Companies (Special Provision) Act, 1985 (SICA).The Board of Industrial and Financial Reconstruction (BIFR) has declared the company as Sick on the basis of fresh reference filed as per audited accounts for the year ended 31 st March, 2010 and IFCI has been appointed as operating agency. Company has filed draft rehabilitation scheme with operating agency and the same is under examination / circulation. Company has also entered into settlement with various lenders and payments are being made. Accordingly, pending approval of rehabilitation scheme, the accounts of the company have been prepared on going concern basis.

3.2 Contingent Liabilities not provided for:

3.2.1 Bank Gurantees and Letter of Credit Outstanding Rs. 834.79 Lacs (Previous Year Rs. 834.79 Lacs).

3.2.2 Claims and Liabilities against the company not acknowledged as debts 7 190.25 Lacs (Previous Year 7221.13 Lacs).

3.2.3 Excise Duty demand disputed by the company Rs. 768.19 Lacs (Previous YearRs. 742.94 Lacs).

3.2.4 Fuel Surcharge, Octroi Duty etc. disputed by the company Rs. 4.20 Lacs (Previous Year 7 4.20 Lacs).

3.2.5 Disputed demand of Sales TaxRs. 316.83 Lacs (Previous Year 7 316.83 Lacs).

3.3 POY Division of the company has been temporary locked out from 14th Novemebr, 2012.

3.4 a) Balances of Debtors, Creditors, Advances, etc. have been taken as per books of account and are subject to reconciliation / confirmation and consequential adjustments thereof. b) Balances of Secured and Unsecured lenders have been taken as per books of accounts and are subject to reconciliation / confirmation, pending settlement with respective lenders. Adjustment of the same, if any, would be accounted for as and when ascertained.

3.5 In the opinion of the Board of Directors; Current Assets, Loans and Advances (including capital advances) have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. Adequate provisions have been made in accounts for all the known liabilities.

3.6 Penal interest, compound interest and liquidated damages on dues of Financial Institutions, Banks and others wherever applicable have not been provided, pending reconciliation (amount not ascertained). The company expects waiver / relief on sanction of rehabilitation scheme by BIFR.

3.7 The Hon'ble Company Law Board had passed an order on 23/01/2002 that "The repayment of Fixed Deposit shall be made by the company in accordance with the revival scheme as and when approved by the BIFR under the provision of SICA". In view of above, die company has been advised mat as the repayment of the matured fixed deposits are covered by the above referred order and the DRS is pending for consideration before the Hon'ble BIFR, the same are not remained unclaimed and unpaid within the meaning of section 205 C of the Companies Act, 1956 and as such no amounts are required to be transferred to the Investor Education and Protection Fund. However payments on compassionate ground are being made continuously by the company as per the decision of the committee formed by the Hon'ble CLB for this purpose.

3.8 The company is under Rehabilitation with Hon'ble BIFR under provisions of "SICA" 1985. The company has filed Draft Revival Scheme (DRS) with Hon'ble BIFR and same is pending for consideration and also for its approval to make the payment to public debentures holders as mentioned in DRS in full and final settlement of their entire outstanding dues to surrender of original debentures certificate to die company. In view of above the company has been advised mat Company is not required to deposit unclaimed and unpaid redemption amount of debentures and accrued interest thereon to investors education and protection fund under section 205C of the Companies Act, 1956.

3.9 Previous year figures have been regrouped and rearranged wherever cons idered necessary.