Notes to Accounts of Fact Enterprise Ltd.

Mar 31, 2012

1.1 Equity Shares:The Company has only one class of Equity shares having a par value of Rs.10/ per share. Each shareholder is eligible for one vote per share held.

1.2 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 RELATED PARTY DISCLOSURE

Related Party Disclosure have been set out as below. The related parties as defined by Accounting Standard 18 'Related Party Disclosures' as per Accounting Standard Rules,2006, in respect of which the disclosure have been made, are identified on the basis of information available with the company:

A) Names of Related Parties and description of Relationship:

a) Key Managerial Personnel (Directors):

Rajiv Kashyap (Chairman cum Managing Director) Praful Rane (Director) Kunal Patil (Director)

b) Associates : Krishnasagar Builders Limited Krishna Developers

Fact Biodiesel Limited Arymol Builders Pvt. Ltd.

Note : Related parties are as identified by the Company and relied upon by the Auditors.

3 DUES TO MICRO SMALL AND MEDIUM ENTERPRISES AS PER MSMED ACT.2006

The Company has no dues to micro and small enterprises during the year ended March 31, 2012 and March 31 ,2011 and as at March 31,2012 and March 31,2011.

4 The Company has been advised that as there is no tax effect of timing difference based on the estimated computation for a reasonable period, there is no provision for deffered tax in terms of Accounting Standard (AS 22) on accounting for Taxes on Income"

5 Information pursuant to clause 32 of the listing Agreements with stock exchanges in respect of Loans and Advances in the nature of Loans where there is no repayment schedule or repayment beyond seven years or no interest or interest u/s 372A of the Companies Act, 1956 is Nil and the Maximum Outstanding during the year is Rs. NIL.

6 The revised Schedule VI has been effective from 1st April, 2011 for the preparation of financial statement. This has significantly infected the disclosure and presentation made in the financial statements. Accordingly, the Company has reclassified the previous year's figures to this year's classification. The adoption of revised Schedule VI does not impact revenue recognition and measurement principles followed for preparation of financial statements.

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Mar 31, 2010

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax asset is recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized. In situations where the Company has unabsorbed depreciation or carried forward losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that the same can b realized against future taxable profits.

2. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business. The provisions for all known liabilities is adequate and not in excess of the amount reasonably necessary.

3. Balances due to / from are subject to confirmation.

4. No provision has been made in respect of bad & doubtful Advances of Rs. 1,20,816/-.

5. Related Party Disclosures

In accordance with the Accounting Standard (AS - 18) on related party disclosures where control exists and where key management personnel are able to exercise significant influence and, where transactions have taken place during the period, along with description of relationship as identified, are given below:

A. Transacting Related Parties are:

Krishna Developers

Krishna Sagar Builders Ltd

Fact Biodiesel Limited

Arymol Builders Private Limited

6. Information pursuant to clause 32 of the listing Agreements with stock Exchanges in respect of Loans & Advances in the nature of Loans where there is no repayment schedule or repayment beyond seven years or no interest or interest under 372 A of The Companies Act, 1956 is Rs. NIL. And the Maximum Outstanding during the year is Rs. NIL.

7. Information pursuant to clause 32 of the listing Agreements with stock Exchanges in respect of Loans & Advances in the nature of Loans to the firms / companies in which directors are interested is Rs. NIL. And the Maximum Outstanding during the year is Rs. NIL.

8. Earning In Foreign Exchange NIL

9. Expenditure in Foreign Currencies NIL

10. Deferred Tax Liabilities:

11. Figures of previous year have been regrouped and rearranged wherever considered necessary.

V. Generic name of Three Principal Products / services of the Company (as per Monetary terms)

Not Applicable