Notes to Accounts of Exotic Coal Ltd.

Mar 31, 2010

1. The Schedules referred to in the Balance sheet and Profit and Loss Account form an integral part of the accounts.

2. Balances under the heads Current Assets, Loans and Advances and vCurrent Liabilities are subject to confirmation from respective parties.

3. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of Business.

4. Previous year figures have been regrouped and rearranged wherever necessary.

5. No Provision for Taxation has been made in view of absence of taxable income.

6. All known liabilities have been provided for in the books of accounts for the year under Report.

7. In the opinion of the Board of Directors of the company there is no contingent liability as on 3 lsl March, 2012. (Previous Year -Nil--)

8. Auditor Remuneration is detailed here below :

9. Related Party Disclosures : ( as identified by the Management)

Related Parties Relationship:

Associates : Rushita Corporation

Key Management Personnel : Susmit B. Sutaria

Transactions with Related Parties

10. In accordance with the Accounting Standard-22: Accounting for Taxes on Income issued by the Institute of Chartered Accountants Of India and followed by the Company; in view of past year losses and unabsorbed depreciation and uncertainty about sufficient future taxable income even though in Current Year there is profit, the Deferred Tax Assets/Liabilities has not been recognized.

11. Additional information pursuant to the provisions of paragraphs 3 and 4 of part II of Schedule VI of the Companies Act, 1956.

(a) Particulars of Licensed and Installed Capacity and Actual Production (as certified by the management and accepted by the auditors without verification being a technical matter):

12. Loans and Advances of Rs. 379.84 lacs included (i) Rs. 49.34 lacs in respect of which the honble City Civil Court, Ahmedabad has passed decree which is pending for execution, (ii) Rs. 20.18 lacs in respect of which the company has filed a suit for recovery. The management is of the opinion that the aforesaid amounts are good and recoverable and hence no provision for bad debts/ written off has been made.