The Company has recognized deferred tax arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and Is capable of reversal in one or more subsequent period(s) in compliance with Accounting Standard (AS 22) - Accounting for Taxes on income. The major components of deferred tax (liabilities/assets) arising on account of timing

2. Based on and to the extent of information obtained from suppliers regarding their status as Micro, Small or medium enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, there are amounts due to them to the extent identified as at the end of the year but no provision of interest has been made in Books of Accounts. M/s. Kay Bee Salts (P) Ltd. : Rs. 1.31 lakhs

3.Wages & Salaries includes provision for Gratuity of Rs.1460016.00 and Earned Leave of Rs.326262.00. during the financial year 2014-15 and the same has been included in the Statement of Profit and Loss in Note 21.

4.The Company is manufacturing various products, which are similar in nature of paper and Paper Board. All the products are manufactured after recycle of paper. Therefore, according to manage- ment this is a single segment company as envisaged in the Accounting Standard 17 (AS17) on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI). As such, the segment reporting are not applicable.

5.The Company has not made Provision for Current Tax under MAT as the carry forward Loss/ . depreciation as per Income Tax Act is more than Book Profit.

6.A) Deferred Tax has been accounted in accordance with the requirements of standard on "Taxes on Income" (AS 22).

B) The major components of the Deferred Tax Assets/Liabilities, based on tax effect of the timing differences, as at 31st March 2015 are as under:

7.Balances of Debtors, Loans and Advances, Secured Loans, Sundry Creditors & Others are subject to confirmation and reconciliation and consequential adjustments, if any.

8.Provision for retirement benefits to employees was not provided on accrual basis, which is not in conformity with Accounting Standard-15 issued by ICAI and the amount has not been quantified because actuarial valuation report is not available. However, in the opinion of the management the amount involved is negligible and has no material impact on the Statement of Profit & Loss.

9.During the current year there is a prior period income of Rs. 1,84,172.00 and company has written off Insurance claim of Rs. 29,22,837.00

10.The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.