a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil (P.Y. Nil)

b) Letter of Credit in favour of suppliers Rs. Nil (P.Y. Nil).

c) Counter Guarantees given to Companys Bankers for Guarantees given by them on the behalf of the Company Rs. NIL (P. Y.-Nil).

d) The Addl. Commissioner of Centra! Excise & Customs, Vadodara has passed an Order dated 22.08.2000 raising a demand for recovery of excise duty amounting to Rs. 15,64,644/- u/s 11 A of the Central Excise Act, 1944 and a penalty of Rs. 1,00,000/- together with interest. The Company had gone into appeal before the Custom Excise Service Tax Appellate Tribunal, IVIumbai challenging the impugned order. The CESAT vide its Order dated 07.07.2003 has remanded the matter to the Additional Commissioner, Central Excise, Vadodara for re-examination of the matter.

e) The Sales Tax Authorities, Vadodara had raised a demand for Rs.28,09,58,853/- against the company both under the CST and GST Act relating to the previous periods 1997-98, 1998-99 & 1999-2000. The company had gone in appeal before the Sales Tax Tribunal, Ahemdabad against the alleged demand. The appeal has been admitted and now the matter is sub-judice before the Appellate Authority, Ahemdabad.

2. Subscribed Capital includes Rs. 18000/- consisting of 1800 Equity Shares of Rs.10/- each on which share application and allotment money from six nos of allottees was outstanding following non encashment of their stock invest instruments. The scrips were already mailed to these allotee.

3. No provision has been made for Gratuity as the same will be accounted for during the year on actual payment basis. However there is no employee who has put in qualifying.period for entitlement of gratuity.

4. The District Supplies Officer, Vadodara, during March 2000 has seized stocks of raw materials and finished goods. The Collector, Supply Department, Vadodara vide his Order dated 26.06.2001 had ordered the release of all stocks seized during March 2000 excepting the stocks valuing Rs. 169564/-. Considering the specific nature of the material being inflammable &. explosive articles, the Collector ordered to deposit a sum of Rs. 169564/- equivalent to the value of stocks detained. The company has paid the said amount. It is reported to us during this year that company has to file an against this within a period of 30 days, which company failed to file as such this amount of 169^64/- has to be written off.

5. Deferred Income Tax: Pursuant to the Accounting Standard - 22 on "Accounting for Taxes on income issued by The institute of Chartered Accountants of India, having been made mandatory, the Company changed the method of accounting for taxes on income to include the effect of timing differences in the tax expenses in the Profit & Loss Account and Deferred Tax Asset/Liability in the balance sheet.

The Company has evaluated the various elements of tax computation to determine whether any deferred tax assets or liability needs to be recognized due to the availability of carried forward losses and unabsorbed depreciation as per Income Tax Act, 1961, as well as because of applicability of Minimum Alternate tax (MAT) provisions to the company, No deferred tax asset or liability arises.

Deferred Tax Assets are not recognized on unabsorbed depreciation and carried forward losses unless there is a virtual certainty that there will be sufficient future taxable income to realize such assets.

6. The market value of investments as on 31.03.2007 is as under:

a) Quoted Shares

i) 300 Equity Shares of Rs.10/- each of Rana Sugars Ltd. - Rs.10/-per share.

ii) 16700 Equity Shares of Rs.1Q/-each allotted at a premium of Rs.8/-per share of Raj Agro Mills Ltd. ~ Rs.2/-per share.

b) Un-Quoted Shares

500 Equity Shares of Rs.10/-each of Su-vikas People Co-op. Bank Ltd., the market value of these shares is not available.

7. Debit or credit balances outstanding against parties are subject to their confirmation and reconciliation.

8. in the opinion of management, the current assets, loans and advances have a value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet.

9. Previous years figures have been rearranged/regrouped wherever considered necessary to make them comparable with those of current year.

10. Additional information pursuant to para 3 & 4c and 4d of Part II of Schedule V! to the Companies Act, 1956 :-