Notes to Accounts of Ashco Niulab Industries Ltd.

Mar 31, 2012

A) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs 10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to received remaining assets of the Company, after distribution of preferential amounts. The distribution will be in proportion to the numbers of equity shares held by the shareholders.

a) From Small Industries Development Bank of India

Secured by exclusive first charge of Lab Equipment acquired by the company for the expansion project of Mumbai Laboratory, mortgage of leasehold rights of the immovable property of a company, personal guarantee of two directors and corporate guarantee of a company and pledge of shares held by promoters.

b) From Punjab National Bank (Corporate Loan)

Secured by equitable mortgage of immovable property and personal guarantee of two directors and corporate guarantee of a company.

c) From Citiabank NA

Amount secured by mortgage of immovable property of the company and a director and personal guarantee of two directors of the company.

a) From Punjab National Bank

Secured by equitable mortgage of Industrial galas and hypothecation of Block of Assets and Raw Material, Stock -in- process, Finished Goods, Stores and Spares and Packing Material lying at Company''s Premises at Vasai, warehouse, import documents representing import of goods for various places and Assignment of book debt of the Company Deposit of Receipted Challans alongwith Invoices and personal guarantee of two directors and corporate guarantee of a company.

The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made.

1 Disclosure in Respect of Leases

The Company''s leasing arrangements are in respect of operating leases for factory, office premises & guest house occupied by the Company. These leasing arrangements are cancellable except during the lock in period, and are renewable on a periodic basis by mutual consent on mutually acceptable terms.

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Mar 31, 2010

1) Contingent Liabilities

a) Bank Guarantees outstanding: Rs. 8,268,897

(Rs. 10,664,204)

b) Letter of Credit Outstanding: Rs. 20,101,840

(Rs. 2,792,637) 2) There are no amounts due to Small Scale undertakings to whom company owed a sum exceeding Rs.100,000/- which was outstanding for more than 30 days as at the end of the financial year.

3) The company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro Small and Medium Enterprise Development Act, 2006) claiming their status as on 31st March, 2010 as micro small or medium enterprises. Consequently the amount paid/payable to these parties during the year is nil.

4) Repairs and Maintenance includes a sum of Rs.108,800/- (P.Y. Rs. 69,036/-) towards Repairs and Maintenance of buildings.

5) Deferred Tax

Components of Deferred Tax Balance:

The tax effects of timing difference are reflected through a deferred tax asset/liability, which is included in the Balance Sheet.

6) SEGMENT REPORTING

The Company operates in single segment viz. Analytical Instruments, its accessories and services. There is no other reportable segment as per Accounting Standard –17. The Company has been ventured into another segment i.e. Entertainment Industry on its Merger with Niulab Equipment Company Pvt. Ltd. However, the transactions are not material in nature.

7) RELATED PARTY TRANSACTIONS

Pursuant to Accounting Standard-18, issued by The Institute of Chartered Accountants of India, the names of related parties and nature of relationship and particulars of transactions with the said related parties during the year are as under:

A) NAME OF THE RELATED PARTIES AND DESCRIPTION OF RELATIONSHIP: -

i) ASSOCIATE COMPANIES: -

ANKK Mediaarts Private Limited

Ashco Niulab Exports Limited

ii) KEY MANAGEMENT PERSONNEL AND RELATIVES: -

Mr. Ashok K. Kotwani

Mrs. Kanchan A. Kotwani

Mr. Bhagwan K. Kotwani

Mr. Manohar K. Kotwani

Mr. Shyam K Kotwani

Mr. Ankush A. Kotwani

Ms. Neha A. Kotwani

Mrs. Kavita Godhwani

Mrs. Geeta Balani

M/s. Sayuj Telecom

*INSTALLED CAPACITY: Installed capacity is a function of product-mix and cannot be expressed in terms of Value / Nos.

*Raw Materials are product-mix and in different measures hence it cannot be expressed in any specific terms of measurement and hence quantities are declared in sets, which includes various types -*of materials.

8) In the opinion of the Board of Directors, all the current assets, loans and advances have value on realization at least of an amount equal to the amount at which they are stated in the Balance Sheet.

9) Comparative financial information (i.e. amounts and other disclosures for the previous year presented above as corresponding figures), is included as an integral part of current year’s financial statements, and it is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been regrouped/ reclassified wherever necessary to correspond to figures of the current year.

10) Figures have been rounded off to the nearest rupee.

11) Figures in bracket are in respect of previous year.