Notes to Accounts of CJ Gelatine Products Ltd.

Mar 31, 2024

1.10 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A Provision is recognised when the Company has present obligation (legal or constructive) as a result of a past event and it is probable that an outflow
of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are discounted to their present
value, where the time value of money is material. All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as
a separate asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

A contingent liability is recognized for:

i. A present obligation that arises from past events but is not recognized as a provision because either the possibility that an outflow of resources
embodying economic benefits will be required to settle the obligation is remote or a reliable estimate of the amount of the obligation cannot be made.

ii. A possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company.

Contingent assets are neither accounted for nor disclosed in the financial statements.

1.11 EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference
dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as
a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.
The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, bonus element in a rights issue to
existing shareholders, share split, and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average
number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

30 Financial Instruments

30.1 Financial risk management objectives and policies

In its ordinary operations, the companies activities expose it to the various types of risks, which are associated with the financial instruments and
markets in which it operates. The company has a risk management policy which covers the foreign exchanges risks and other risks associated with
the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors.

The following is the summary of the main risks:

a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect
the companies income or value of it’s holding of financial instruments. The objective of market risk management is to manage and control market
risk exposures within acceptable parameters, while optimizing the return.

b) ''Interest rate risk

Interest rate risk is the risk the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rate. Fair
value interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of fluctuations in the interest rates.

Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instrument will fluctuate because of fluctuations
in the interest rates.

The Company’s exposure to the risk of changes in market interest rates relates primarily to the borrowing from banks. Currently company is not
using any mitigating factor to cover the interest rate risk.

(c) Credit risk

Credit risk is the risk that arises from the possibility that the counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss.

Financial assets that are subject to such risk, principally consist of trade receivables, Investments and loans and advances. None of the financial instruments
of the company results in material concentration of credit risk.

Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to attempt to recover the receivables.
Where recoveries are made, these are recognized in the Statement of Profit and Loss.

The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking
estimates at the end of each balance sheet date.

33 Additional information pursuant to provisions of paragraph 5 of schedule III of the Companies Act, 2013
Expenditure incurred in foreign currency during the year Nil

CIF Value of Imports of Capital Goods Nil

34 As per the definition of Business Segment and Geographical Segment contained in Ind AS 108 “Segment Reporting”, the management is of the opinion that
the Company’s operation comprise of operating in Primary and Secondary market and incidental activities thereto, there is neither more than one reportable
business segment not more than one reportable geographical segment, and, therefore, segment information is not required to be disclosed.

35 In the opinion of the management, all current assets, loans and advances would be realizable at least an amount equal to the amount at which they are stated
in the Balance Sheet. Also there is no impairment of property plant &equipment.

36 Previous year''s figures have been reclassified regrouped and rearranged wherever found necessary to make them comparable, which do not have material
impact.

37 Corporate Social Responsibility (CSR Activity) : In pursuance to section 135 of the Companies Act, 2013

Section 135 of the Companies Act, 2013 and Rules made under it prescribed that every company having a net worth of Rs. 500 crore or more, or turnover of
Rs. 1000 crore or more or a net profit of Rs. 5 crore or more during any financial year shall ensure that the company spends, in every financial year, at least
2% of of the average net profit made during the three immediately preceding financial year, in pursuance of its Corporate Social Responsibility (CSR) Policy.
The provision to CSR as prescribed under the Companies Act, 2013 are not applicable to C.J.GELATINE PRODUCTS LIMITED.

(f) . Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(g) . Compliance with number of layers of companies
N.A.

(h) . Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(i) . Undisclosed income

There is no income surrendered or disclosed as income during the current or previo us year in the tax assessments under the Income Tax Act, 1961.

(j) . Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency duri ng the current or previous year.

(k) . Registration of charges or satisfaction with Registrar of Companies

As at March 31, 2023, the register of charges of the Company as available in records of the Ministry of Corporate Affairs (MCA) includes charges that
were created/modified since the inception of the Company. The Company is in the continuous process of filing the charge satisfaction e-form with MCA,
within the timelines, as and when it receives NOCs from the respective charge hold ers.

(l) . Utilisation of borrowings availed from banks and financial institutions

The Company has borrowed fund from ICICI bank and utilised for the purpose, it was taken

For S P A R K & Associates Chartered Accountants LLP For & on behalf of Board of Directors

Chartered Accountants C.J.GELATINE PRODUCTS LIMITED

FRN: 005313C/C400311

CA Chandresh Singhvi Jaspal Singh Harman Singh Munna Lal Sharma

Partner Chairman & Director & Chief Financial Officer

Managing Director Company Secretary

(Membership No.: 436593) DIN:01406945 DIN:01406962

M. No.: 25877

Place : Mandideep

Date: May 30, 2024

UDIN: 24436593BKFSOX5604

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Mar 31, 2015

CONTINGENT LIABILITIES AND COMMITMENTS

1. Contingent liabilities

( a ) Guarantee Given to Sales Tax Authorities for permenant Registration 10,000 10,000

( b ) General Bond Executed in favour of Collection of Central Excise 200,000 200,000

( c ) Bond Executed in favour of Collector of Central Excise — —

(i) B-2 Bond of Rs. 50000/- 50,000 50,000

(ii) B-11 Bond of Rs. 600000/- 600,000 600,000

( d ) Central Excise (CNVT Credit of Service Tax) 578,000 578,000

( e ) Central Excise (Excise Duty Demand) 533,000 533,000

( f ) Bank Guarantee Given to Collection of Central Excise 125,000 125,000

( g ) Bank Guarantee (PBG) Given to MP Pollution Control Board 500,000 300,000

2,596,000 2,396,000

2. For details related to Contingent liabilities refer Note no.10.

3. No provision for gratuity and leave encashment towards present liability for future payment under the Payment of Gratuity Act, 1972 and terms of employment has been made as the amount is not ascertained.

4. a. The Excise Duty payable on finished goods not cleared from Factory as on the date of Balance Sheet is estimated at Rs.44.30 lakhs ( Previous Year -Rs.50.64 lakhs) on prevailing rates. The non-provision of this duty will not affect the profitability or otherwise of the year, being revenue neutral.

b. As per amended provisions, (1) Dues of excise duty on clearance of finished goods wherever applicable is payable in monthly installments w. e. from 01.02.2004 and (2) Statutory records under Excise Rules are dispensed with effect from 01.07.2000. The Company has acted on these amendments.

5. The Income Tax assessments of the Company have been made upto assessment year 2009-10 relevant to the previous year ended on 31.03.2009. Assessments relating to assessment year 2010-11 and subsequent years are yet to be completed.

6. a.During the year under audit, the Company has paid a sum of Rs.13,41,216/- comprising of Central Excise Duty arrears of Rs.532,800/- for the year 2007-08 along with Penalty Rs.532,800/- and penal interest Rs.275,616/- as per the Final Order No.A/1381/2012-EX(DB) dated 18/12/2012 issued by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi and the above sum has been included under " Exceptional and Extra-ordinary items " in Note no.20.

b. Prior period expenses amounting to Rs.1,23,858/- includes salary arrears Rs.120,358/- for the previous year and Wealth Tax Rs.3,500/-for the year 2008-09 and the same have been shown under "Exceptional and Extra-ordinary items " in Note no.20.

7. As informed to us by the Management, the yield of finished products is slightly lower due to inferior quality of raw materials consumed for the production purpose and also due to relatively old machinery being used in production.

8. Deferred Tax Assets and Liabilities:

Income Tax comprises the current tax provision and the net change in the deferred tax asset or liability in the year. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases and operating loss carry forwards. Deferred tax assets are recognized subject to management''s judgment that realization is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change. Provision relating to deferred tax liability / asset is not made.

9. Earnings in Foreign Exchange: Nil (Previous Year -Nil)

10. Sundry Debtors and Sundry Creditors are subject to balance confirmation.

11. In view of insufficient information from suppliers regarding their status as Micro, Small and Medium Scale Unit as per the Micro, Small and Medium Enterprises Development Act, 2006, the amount overdue, if any, to them cannot be ascertained.

12. Previous Year''s figures have been rearranged and / or regrouped wherever necessary.

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Mar 31, 2014

1. CONTINGENT LIABILITIES AND COMMITMENTS

1. Contingent liabilities

(a) Guarantee Given to Sale$ Tax Authorities for permenani ftegisirat 10,000 10,000

( b) General Bond Executed in favour of Collection of Central Excise 200,000 200,000

( c ) Bond Executed in favour of Collector of Central Excise — —

(I) B-2 Bond of Rs. 50000/- 50,000 50,000

(it) B-11 Bond of Rs. 600000/- 600,000 600,000

( d) Central Excise (CNVT Credit of Service Tax) 578,000 578,000

(e) Central Excise (Excise Duty Demand) 533,000 533,000

(f) Bank Guarantee Given to Collection of Central Excise 125,000 125,000

(g) Bank Guarantee (PBG) Given to MP Pollution Control Board 300,000 —

2,396,000 2,096,000

2. For details related to Contingent liabilities refer Note no.10.

3. No provision for gratuity and leave encashment towards present liability for future payment under the Payment of Gratuity Act, 1972 and terms of employment has been made as the amount is not ascertained.

4. a. The Excise Duty payable on finished goods not cleared from Factory as on the date of Balance Sheet is estimated at Rs.50.64 Lakhs (Previous Year -Rs.3i.42 Lakhs) on prevailing rates. The non-provision of this duty will not affect the profitability or otherwise of the year, being revenue neutral.

5. As per amended provisions, (1) Dues of excise duty on clearance of finished goods wherever applicable is payable in monthly installments w. e. from 01.02.2004 and (2) Statutory records under Excise Rules are dispensed with effect from 01.07.2000, The Company has acted on these amendments,

6. The Income Tax assessments of the Company have been made upto assessment year 2009-10 relevant to the previous year ended on 31.03.2009, Assessments relating to assessment year 2030-11 and subsequent years are yet to be completed.

7. a. During the year under audit, the Company has paid a sum of Rs. 17,55,398/- ( Rupees Seventeen Lakhs Fifty Five Thousand Three Hundred Ninety Eight Only) towards Employees PF damages and interest for the period from Sept,2001 To Feb,2005 as per the Order ref. no.PFC/SRQ/BPL/Dam/iVlP/6297/2375 dated 05/02/2014 Issued by the Assistant P.F. Commissioner, Sub-Regional Office, Bhopal and the above sum has been included under " Exceptional and Extra- ordinary Items" in Note no.20

8. A sum of Rs. 11,99,893/- (Rupees Eleven Lakhs Ninety Nine Thousand Eight Hundred Ninety Three Only) was received during September,2013, by the Company as Compensation towards cost of damages to Stocks caused by the floods during Aug.2012 from the Oriental Insurance Company Limited, Mumbai, as per the Discharge Voucher dated 24/09/2013. The above receipt has been shown under "Exceptional and Extra-ordinary Items " in Note no,20.

9 A sum of Rs.26,86,714/- ( Rupees Twenty Six Lakhs Eighty Six Thousand Seven Hundred Fourteen Only) being the excess provisions/ liabilities in respect of ESIC [ Rs.22,61,316/-), VAT (Rs.4,25,398/- -Net) of earlier years written back and the Same has been included under " Exceptional and Extra-ordinary' Items" in Note no.20.

10. As informed to us by the Management, the yield of finished products is slightly lower due to inferior quality of raw materials consumed for the production purpose and also due to relatively old machinery being used in production, ,

11. Related Parties Disclosure in terms of Accounting Standard IS issued by the Institute Of Chartered Accountants of India

a. List of Related Parties:

i. Key Management Personnel:

1. Mr. Sachiv Sahni Chairman & Managing Director 2, Mr, Jaspal Singh Joint Managing Director

it. Subsidiaries: Nil

iii. Associated Companies/

Joint Ventures/Sister Concerns C. Jairam Private Limited S.P.SahniTrust Wadera Chemicals Co

12. Disclosure in terms of Accounting Standard 20 regarding Earning Per Share issued by the Institute Of Chartered Accountants Of India

13. Deferred Tax Assets and Liabilities:

Income Tax comprises of the current tax provision (which is Nil by virtue of book losses incurred by the Company for the Current year 2013-14) and the net change in the deferred tax asset or liability for the year. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases and operating loss carry forwards. Deferred tax assets are recognized subject to management's judgment that realization is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change. Provision relating to deferred tax liability / asset has not been made.

14. Earnings in Foreign Exchange: Nil (Previous Year- Nil)

15. Sundry Debtors and Sundry Creditors are subject to balance confirmation.

16. In view of insufficient information from suppliers regarding their status as Micro, Small and Medium Scale Unit as per the Micro, Small and Medium Enterprises Development Act, 2006, the amount overdue, if any, to them cannot be ascertained,

17. Previous Year's figures have been rearranged and/or regrouped wherever necessary.

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Mar 31, 2013

1. For details related to Contingent Liabilities refer Note No. 10.

2. No provision for gratuity and leave encashment towards present liability for future payment under the payment of Gratuity Act, 1972 and terms of employment has been made as the amount is not ascertained.

3. a) The excise duty payable on finished goods not cleared from factory as on the date of Balance sheet is estimated at Rs.31.42 Lakhs (Prev. year Rs. 17.75 Lakhs) on prevailing rates. The non-provision of this duty will not affect the profitability or otherwise of the year, being revenue neutral.

b) As per amended provisions, (1) the dues of excise duty on clearance of finished goods wherever applicable is payable in monthly installments w.e.f. 01.02.2004 and (2) statutory records under Excise Rules are dispensed with effect from 01.07.2000. The company has acted on these amendments.

4. The Income tax assessments of the Company have been made upto assessment year 2009-10 relevant to previous year ended on 31.03.2009. Assessment relating to assessment year 2010-11 is in progress.

5. As informed to us by the management the yield of finished products is slightly ower due to inferior quality of Raw Material Consumed for the Production purpose and also due to the old machinery used in production.

6. Related Parties Disclosure in terms of Accounting Standard 18 issued by The Institute of Chartered Accountants of India

a. List of related parties

i) Key Management Personnel:

1. Mr. Sachiv Sahni Chairman & Managing Director

2. Mr. Jaspal Singh Joint Managing Director

ii) Subsidiaries: NIL

iii) Associated Companies/Joint Venture: C. Jairam Private Limited

S.P. Sahni Trust Wadera Chemicals Co.

7. Deferred Tax Assets and Liabilities

Income tax comprises the current tax provision and the net change in the deferred tax asset or liability in the year. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and operating loss carry forward. Deferred tax assets are recognized subject to management''s judgment that realization is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change. Provision relating to Deferred tax Liability/Asset is not made.

8. Earnings in Foreign Exchange : Nil (Previous Year Nil)

9. Sundry Debtors and Sundry Creditors are Subject to balance confirmation.

10. In view of insufficient information from suppliers regarding their status as Micro, Small and Medium Scale Unit as per the Micro, small and Medium Enterprises Development Act,2006 as the amount overdue ,if any, to them cannot be ascertained.

11. Previous Year''s figures have been rearranged and/or regrouped wherever necessary.

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Mar 31, 2012

1. For details related to Contingent Liabilities refer Note No.10.

2. No provision for Gratuity and leave encashment towards present liability for future payment under the payment of Gratuity Act, 1972 and terms of employment has been made as the amount is not ascertained.

3. a) The excise duty payable on finished goods not cleared from factory as on the date of Balance sheet is estimated at Rs. 17.75 Lakhs (Prev. year Rs.4.01 lakhs) on prevailing rates. The non-provision of this duty will not affect the profitability or otherwise of the year, being revenue neutral.

b) As per amended provisions, (1) the dues of excise duty on clearance of finished goods wherever applicable is payable in monthly installments w.e.f. 01.02.2004 and (2) statutory records under Excise Rules are dispensed with effect from 01.07.2000. The Company has acted on these amendments.

4. The Income tax assessments of the Company have been made upto assessment year 2009-10 relevant to previous year ended on 31.03.2009. Assessment relating to assessment year 2010-11 is in progress.

5. As informed to us by the management the yield of finished product is slightly lower due to inferior quality of Raw Materials consumed for the production purpose and also due to the old machinery used in production.

6. Deferred Tax Assets and Liabilities

Income tax comprises the current tax provision and the net change in the deferred tax asset or liability in the year. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and operating loss carry forwards. Deferred tax assets are recognized subject to management's judgment that realization is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change. Provision relating to Deferred Tax Liability/Asset is not made.

7 Earnings in Foreign Exchange : NIL (Previous Year Nil)

8. Sundry Debtors and Sundry Creditors are subject to confirmation.

9. In view of insufficient information from suppliers regarding their status as Micro, Small and Medium Sale Unit as per the Micro, Small and Medium Enterprises Development Act, 2006 as the amount overdue, if any, to them cannot be ascertained.

10. Previous Year's figures have been rearranged and/or regrouped wherever necessary.

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Mar 31, 2011

1. Contingent Liabilities not provided for:

(i) Guarantee given to Sales Tax Authorities For permanent registration 10,000 10,000

(ii) General Bond executed in favour of Collector of Central Excise 2,00,000 2,00,000

(iii) Bonds executed in favour of Collector of Central Excise a)B-2 Bond 50,000 50,000

b) B/11 Bond 6,00,000 6,00,000

(iv) Central Excise (CNVT Credit of Service Tax) 5,78,000 5,78,000

(v) Central Excise (Excise Duty Demand) 5,33,000 5,33,000

(vi) Bank Guarantees given to Collector of Central Excise 1,25,000 1,25,000

(vii) Income Tax Liability for A. Y. 2010-11 6,40,465 _ 2. No provision for Gratuity and leave encashment towards present liability for future payment under the payment of Gratuity Act, 1972 and terms of employment has been made as the amount is not ascertained.

3. a) The excise duty payable on finished goods not cleared from factory as on the date of Balance sheet is estimated at Rs. 4.01 Lakhs (Prev. year Rs.8.87 lakhs) on prevailing rates. The non-provision of this duty will not affect the profitability or otherwise of the year, being revenue neutral.

b) As per amended provisions, (1) the dues of excise duty on clearance of finished goods wherever applicable is payable in monthly installments w.e.f. 01.02.2004 and (2) statutory records under Excise Rules are dispensed with effect from 01.07.2000. The Company has acted on these amendments.

4. The Income tax assessments of the Company have been made upto assessment year 2008-09 relevant to previous year ended on 31.03.2008. Assessment relating to assessment year 2009-10 is in progress.

5. As informed to us by the management the yield of finished product is slightly lower due to inferior quality of Raw Materials consumed for the production purpose and also due to the old machinery used in production.

6. Related Parties Disclosure in terms of Accounting Standard 18 issued by the Institute of Chartered Accountants of India

a. List of related parties:

i) Key Management Personnel:

1. Mr. A. L. Sahni Director

2. Mr. Sachiv Sahni Chairman & Managing Director

ii) Subsidiaries: NIL

iii) Associated Companies/Joint Ventures : C. Jairam Private Limited

S.P. Sahni Trust

7. Deferred Tax Assets and Liabilities

Income tax comprises the current tax provision and the net change in the deferred tax asset or liability in the year. Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and operating loss carry forwards. Deferred tax assets are recognised subject to management's judgment that realisation is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the income statement in the period of enactment of the change. Provision relating to Deferred Tax Liability/Asset is not made.

8. Earnings in Foreign Exchange : NIL (Previous Year Nil)

9. Sundry Debtors and Sundry Creditors are subject to confirmation.

10. In view of insufficient information from suppliers regarding their status as Small Scale Unit, the amount overdue, if any, to them can not be ascertained.

11. Previous Year's figures have been rearranged and/or regrouped wherever necessary.

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Mar 31, 2010

1. Contingent Liabilities not provided for:

(i) Guarantee given to Sales Tax Authorities 10,000 10,00 For permanent registration

(ii) General Bond executed in favour of Collector of Central Excise 2,00,000 2,00,000

(iii) Bonds executed in favour of Collector of Central Excise a) B-2 Bond 50,000 50,000

b) B/11 Bond 6,00,000 6,00,000

(iv) Central Excise (CNVT Credit of Service Tax) 5,78,000 -

(v) Central Excise (Excise Duty Demand) 5,33,000 -

(vi) Bank Guarantees given to Collector of Central Excise 1,25,000 1,25,000

2. No provision for Gratuity and leave encashment towards present liability for future payment under the payment of Gratuity Act, 1972 and terms of employment has been made as the amount is not ascertained.

3. a) The excise duty payable on finished goods not cleared from factory as on the date of Balance sheet is estimated at Rs. 8.87 Lakhs (Prev. year Rs.18.44 lakhs) on prevailing rates. The non-provision of this duty will not affect the profitability or otherwise of the year, being revenue neutral. b) As per amended provisions, (1) the dues of excise duty on clearance of finished goods wherever applicable is payable in monthly installments w.e.f. 01.02.2004 and (2) statutory records under Excise Rules are dispensed with effect from 01.07.2000. The Company has acted on these amendments.

4. The Income tax assessments of the Company have been made upto assessment year 2007-08 relevant to previous year ended on 31.03.2007. Assessment relating to assessment year 2008-09 is in progress.

5. As informed to us by the management the yield of finished product is slightly lower due to inferior quality of Raw Materials consumed for the production purpose and also due to the old machinery used in production.

6. Related Parties Disclosure in terms of Accounting Standard 18 issued by the Institute of Chartered Accountants of India

a. List of related parties:

i) Key Management Personnel:

1. Mr. A. L. Sahni Director

2. Mr. Sachiv Sahni Chairman & Managing Director ii) Subsidiaries: NIL

iii) Associated Companies/ Joint Ventures : C. Jairam Private Limited

S.P. Sahni Trust

b. Details of transactions relating to person referred to in item (i) above

7. Deferred Tax Assets and Liabilities

Income tax comprises the current tax provision and the net change in the deferred tax asset or liability in the year. Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and operating loss carry forwards. Deferred tax assets are recognised subject to managements judgment that realisation is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the income statement in the period of enactment of the change. Provision relating to Deferred Tax Liability/Asset is not made.

8 Earnings in Foreign Exchange : NIL (Previous Year Nil)

9. Sundry Debtors and Sundry Creditors are subject to confirmation.

10. In view of insufficient information from suppliers regarding their status as Small Scale Unit, the amount overdue, if any, to them can not be ascertained.

11. Previous Years figures have been rearranged and/or regrouped wherever necessary.