i. During the year the management of the Company has scrutinized the current assets, loans and advances and found some discrepancy. However, in absence of correct figures of balances of debtors, provisions for bad and doubtful debts have not been made. The management of the Company had informed that physical verification of certain finished goods lying at branches are neither physically verified nor their net realizable value is ascertainable, in case it is sold in the market.

ii. Provision for Income Tax had been made in pursuance to section 115JB of the Income Tax Act, 1961 in the Balance Sheet made for Financial Year 2013-2014 (i.e. ending on 31-03-2014).

iii. Income Tax assessment has been completed up to Assessment Year 2012-13 and Sales Tax Assessment has been completed up to Accounting Year 2011-2012.

iv. Balance of Sundry Debtors/Creditors; Loans & advances are subject to confirmation.

v. Most of the Debtor's (more than six month), loans and Advances are irrecoverable/not fully recoverable but the same have not yet been Provided/written off in the books of account by the company.

vi. Company is in the Process of compiling the information of MSMED Act. However the matter of interest is not material in the opinion of the board of directors.

vii. Related Party Disclosure (As identified by the Management)

Related Party Relationship:

(a) Where control Exists  M/s. Sanitex         Shri Jay Kothari is the
                          Chemicals Ltd.,      Director of the Company
                          Baroda               (for a part of the year)

    Where control Exists  M/s. S. N.           Shri Jay Kothari is the
                          Enterprises, Indore  Karta of the firm

(b) Key Management        Shri Nagin Chand
    Personnel             Kothari              Chairman

                          Shri Jay Kothari     Managing Directors

                          Smt. Sajjanbai
                          Kothari              Directors

                          Smt. Anjali Shukla   Directors

viii. SEGMENT INFORMATION

In terms of Accounting Standards-17, the Company had identified the following Segment, details are as under:-

Primary Segments

Segment Liabilities:-

Note:- No separate segment wise details are maintained. Because same line of business activities.

ix. RESTRUCTURING OF SHARE CAPITAL:

The Company had applied to Bombay Stock Exchange for listing of 49,82 600 equity shares of Rs 10/- each issued to the promoters and their associates on preferential basis, 10,00,000 equity shares of Rs 10/- each issued to Raunaq Laboratories Ltd., on other than cash basis, under swapping agreement between the Company and Raunaq Laboratories Ltd and 5,00,000 equity shares of Rs 10/- each issued to relative of promoters at a premium of Rs 1/- each in the year 2005.

Bombay Stock Exchange declined listing of above shares. The Company had filed Company petition with Honorable High Court of Madhya Pradesh, Indore Bench under section 391 to 394 read with section 100 to 105 of the Companies Act, 1956 for Scheme of Arrangement for Reconstruction/Restructuring of Capital between the Company and its shareholders on the ground that the Company has been operating at marginal capital due to partial shut-down of the factory for renovation and inadequate working capital. The Company was also suspended at the stock exchange due to non-compliance of listing agreement, specifically for capital mismatch.

The Honb'le High Court of Madhya Pradesh, Indore Bench had passed order on 04.12.2013 and approved the scheme of Arrangement for Reconstruction/Restructuring of Capital. According to the order passed by the Honb'le High Court of Madhya Pradesh, Indore Bench, the promoters and their associates had surrendered 49,82,600 equity shares of Rs 10/- each without any consideration and applied to the Company for issue of fresh 1,00,00,000 equity shares of Rs. 10/- for cash at par. The Company had issued 1,00,00,000 equity shares of Rs. 10/- each for cash during the financial year 2013-14.

x. The Following tables' summaries the components of the net benefit expenses recognized in the profit and loss account the fund status and amount recognized in the balance sheet for the gratuity benefit plan

xi. Loans and advances to related parties Rs 8,38,997/- considered doubtful and the same has not been provided in books of account.

xii. Sundry Debtors includes Rs. 38,85,341/- due from the related parties have been considered doubtful and the same has not been provided in books of account.

xiii. That the trading of the shares of the Company has been suspended by Bombay Stock Exchange and it's formalities for regularization are pending.

xiv. Previous year's figures are regrouped and/or rearranged wherever necessary and are shown in brackets.