Notes to Accounts of Garodia Chemicals Ltd.

Mar 31, 2024

F. Provision and Contingent liabilities

Provisions

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Provisions are not discounted to their present value (except where
time value of money is material) and are determined based on the best estimate required to settle the obligation at the
reporting date when discounting is used, the increase in provision due to passage of time is recognized as finance cost.
These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases, where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in
the financial statements unless the probability of outflow of resources is remote.

Provisions, contingent liabilities, contingent assets, and commitments are reviewed at each balance sheet date.

G. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.

H. Revenue:

Sale of Services:

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of is net of variable consideration on
account of various discounts and schemes offered by the Company as part of the contract. This variable consideration is
estimated based on the expected value of outflow. Revenue (net of variable consideration) is recognized only to the extent
that it is highly probable that the amount will not be subject to significant reversal when uncertainty relating to its
recognition is resolved.

Interest Income:

For all financial instruments measured at amortized cost, interest income is recorded using the effective interest rate (EIR),
which is the rate that discounts the estimated future cash payments or receipts through the expected life of the financial
instruments or a shorter period, where appropriate, to the net carrying amount of the financial assets. Interest income is
included in other income in the Statement of Profit and Loss.

Dividend Income

Dividend income (including from FVOCI investments) is recognised when the Company''s right to receive the payment is
established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of
the dividend can be measured reliably. This is generally when the shareholders or Board of Directors approve the dividend.

I. Employee Benefits

Short Term Benefits:

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount
expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.

Other long-term employee benefit obligations:

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which
the employees render the related service. They are therefore measured as the present value of expected future payments
to be made in respect of services provided by employees up to the end of the reporting period using the projected unit
credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms
approximating to the terms of the related obligation. Remeasurements because of experience adjustments and changes in
actuarial assumptions are recognized in profit or loss.

Post-Employment Obligations:

a) Gratuity

The Company''s net obligation in respect of defined benefit plans is calculated by estimating the amount of future
benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair
value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit
credit method. When the calculation results in a potential asset for the Company, the recognized asset is limited to the
present value of economic benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognized in the period in which they occur, directly in other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the balance sheet.

b) Defined Benefit contribution plan

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The
Company has no further payment obligations once the contributions have been paid. The contributions are accounted
for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due.

c) Bonus Plan

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision where
contractually obliged or where there is a past practice that has created a constructive obligation.

J. Taxes

Current income tax

Current tax is the amount of tax payable (recoverable) in respect of the taxable profit / (tax loss) for the year determined in
accordance with the provisions of the Income-Tax Act, 1961. Current income tax for current and prior periods is recognized
at the amount expected to be paid to or recovered from the tax authorities, using tax rates and tax laws that have been
enacted or substantively enacted at the reporting date.

Current tax assets and liabilities are offset only if, the Company:

a) has a legally enforceable right to set off the recognized amounts; and

b) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences except:

• When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that
is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit
or loss

• In respect of taxable temporary differences associated with investments in subsidiaries, when the timing of the reversal
of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the
foreseeable future

Deferred tax assets (including MAT credit) are recognized for all deductible temporary differences, the carry forward of
unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax
credits and unused tax losses can be utilized except:

• When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss

• In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are
recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future
and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets (including MAT credit available) is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date. Deferred tax relating to items recognized outside profit or loss is recognized outside the statement of profit
or loss (either in other comprehensive income or in equity). Deferred tax items are recognized in correlation to the
underlying transaction either in OCI or directly in equity. Deferred tax assets and deferred tax liabilities are offset if a legally
enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.

The Company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the
Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be
carried forward. In the year in which the Company recognizes MAT credit as an asset in accordance with the Guidance Note
on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is
created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement." The Company reviews
the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the Company does not
have convincing evidence that it will pay normal tax during the specified period.

GST paid on acquisition of assets or on incurring expenses

Expenses and assets are recognized net of the amount of GST (Goods and Service Tax) paid, except:

• When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case,
the tax paid is recognized as part of the cost of acquisition of the asset or as part of the expense item, as applicable

• When receivables and payables are stated with the amount of tax included the net amount of tax recoverable from, or
payable to, the taxation authority is included as part of other current assets or liabilities in the balance sheet.

K. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset until such
time that the asset is substantially ready for their intended use. All other borrowing costs are expensed in the period in
which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing
of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing
costs.

L. Earnings per share

Basic and diluted earnings per Equity Share are computed in accordance with Indian Accounting Standard 33 ''Earnings per
Share'', notified accounting standard by the Companies (Indian Accounting Standards) Rules of 2015 (as amended). Basic
earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the
weighted average number of shares outstanding during the period. The weighted average number of equity shares
outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and
reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a
corresponding change in resources

Note: Financial instruments

The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a
current transaction between willing parties other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value:

(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current
liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments

(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters
such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are
taken to account for the expected losses of these receivables.

Additional Regulatory Information

1. Following disclosures are made where Loans or Advances in the nature of loans are granted to
promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either
severally or jointly with any other person, that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

5. Other statutory information:

a. Title deeds of Immovable Property not held in name of the Company - NIL

b. The company has not revalued its Property, Plant and Equipment.

c. The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property.

d. The Company has not been declared wilful defaulter by any bank or financial institution or
government or any government authority.

e. The Company has no relationship with struck off companies

f. The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.

g. The Company was not a part of any Scheme of Arrangements to be approved by the Competent
Authority in terms of sections 230 to 237 of the Companies Act, 2013.

h. The Company has not received any funds from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the
Company shall:

i. directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

i. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year.

j. The Company does not have any such transaction which is not recorded in the books of accounts
that has been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income
Tax Act, 1961)

For Laxmikant Kabra & Co LLP For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No.: 117183W/ W100736

Sd/-

Mahesh Garodia

Sd/- (Chairman & Wholetime Director)

CA Siddhant Kabra DIN:01250816

(Partner)

M.No.: 193348 Sd/-

Kunal Naik

Place: Thane Director

Date: 30-05-2024 DIN:02689478

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Mar 31, 2015

Disclosure under the Micro, Small and Medium Enterprises Development Act. 2006

The Micro, Small and Medium Enterprises as defined under the Micro, Small and Medium Enterprises Development Act 2006, have been identified on the basis of information available with the Company. There are no dues owing by the Company to The Micro, Small and Medium Enterprises at the yearend (at the end of the previous year Nil)

1. As per the agreement for Assignment of Debt executed on 13th July, 2007 between IDBI (Assignor) and Aaskha Holding Pvt Ltd (Assignee). IDBI has transferred it's rights of the amount receivable from the company to the assignee, Consequently the amount payable as per Books of Accounts of the company to the IDBI, have been transferred in the name of the assignee i.e. Aaskha Holdings Pvt Ltd.

2. The manufacturing activities have been suspended by the company and the plant is closed. In view of the same the Plant and Machinary, Office Equipments, furniture and Fixture have not been physically verified. The relevant records are yet to be maintained.

3. The company is accounting liability for excise duty on finished products as and when these are cleared as per consistent practice as also considering the accepted practice of the Excise Authorities. The liability in respect of finished products lying in stock at the close of the year which is estimated at Rs.2,39,556/- (Previous Year Rs. 2,39,556/-) has not been provided for in the accounts and hence, not included in the valuation of inventory of such products.

4. In view of heavy accumulated losses and suspension of the manufacturing activities no provision has been made for the interest payable on term loan facilities granted by IDBI and now taken over by Aaskha Holdings Pvt Ltd. The estimated amount of interest payable till 31st March, 2015 works out to Rs.165666039/- (previous year Rs.144830392/-). The company is pursuing the matter for one time settlement including waiver of interest. Balances of loans and interest payable are subject to confirmation.

5. Financial statements have been prepared in accordance with the fundamental accounting assumption that the company is a going concern.

6. Figures of the previous year have been regrouped or rearranged whever necessary.

RELATED PARTY DISCLOSURE

In terms of provisions of 'AS 18 ? Related party Transactions' the following disclosures are under:

A. List of Related Parties

Shri Mahesh Garodia (Director)

Shri Nishant Garodia (Individual having significant influence)

Garodia Sons Pvt. Ltd. (Enterprises over which significant influence is exercised by Directors)

Gordhandas Garodia (Individual having significant influence)

P. G. Trust (Enterprises over which significant influence is exercised by Directors)

Axis Ventures (Enterprises over which significant influence is exercised by Directors)

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Mar 31, 2014

1 Disclosure under the Micro, Small and Medium Enterprises Development Act. 2006 The Micro, Small and Medium Enterprises as defined under the Micro, Small and Medium Enterprises Development Act 2006, have been identified on the basis of information available with the Company. There are no dues owing by the Company to The Micro, Small and Medium Enterprises at the year end (at the end of the privious year Nil)

2 As per the agreement for Assignment of Debt executed on 13th July, 2007 between IDBI (Assignor) and Aaskha Holding Pvt Ltd (Assignee). IDBI has transferred it''s rights of the amount receivable from the company to the assignee, Consequently the amount payable as per Books of Accounts of the company to the IDBI, have been transferred in the name of the assignee i.e. Aaskha Holdings Pvt Ltd.

3 The manufacturing activities have been suspended by the company and the plant is closed, In view of the same the Plant and Machinary, Office Equipments, furniture and Fixture have not been phycically verified. The relevant records are yet to be maintained.

4 The company is accounting liability for excise duty on finished products as and when these are cleared as per consistent practice as also considering the accepted practice of the Excise Authorities. The liability in respect of finished products lying in stock at the close of the year which is estimated at Rs.2,39,556/- (Previous Year Rs. 2,39,556/-) has not been provided for in the accounts and hence, not included in the valuation of inventory of such products.

5 In view of heavy accumulated losses and suspension of the manufacturing activities no provision has been made for the estimated amount of interest of Rs.4,40,52,899/- payable till 31st March 2014 (previous year Rs. 3,69,54,833/-) on different credit facilities granted by Central Bank of India as reflected in Note No. 5 above. The balances of loans and interest payable to Central Bank of India are subject to confirmation.

6 In view of heavy accumulated losses and suspension of the manufacturing activities no provision has been made for the the estimated amount of interest payable till 31st March, 2014 to Rs.14,48,30,392/- (previous year Rs.12,62,27,136/) on term loan facilities granted by IDBI and now taken over by Aaskha Holdings Pvt Ltd as reflected in Note No. 4 above. The company is persuing the matter for waiver of interest. The balances of loans and interest payable are subject to confirmation.

7 The liabilities to Central Bank of India for the various credit facilities granted as shown in Note No. 5 have been taken over by Phoenix Arc Pvt. Ltd. as per the agreement entered into by and between Central Bank of India and Phoenix Arc Pvt. Ltd. Phoenix Arc Pvt. Ltd. has served notice to company for recovery of dues of Rs.715.50 Lacs. The Company has disputed the agreement and has obtained stay of recovery from DRT. Phoenix Arc Pvt. Ltd. has taken the symbolic possession of mortgaged premises i.e. 2nd charge on factory and 1st charge on 1000 sq. ft. of office premise. The matter is pending with DRT for final hearing and disposal.

8 Contingent liabilities and commitments to the extent not provided for

Necessary disclosures have been made in Note No. 19 to 22

9 Financial statements have been prepared in accordance with the fundamental accounting assumption that the company is a going concern.

10 Figures of the previous year have been regrouped/recasted whever necessary

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Mar 31, 2013

1 In view of heavy accumulated losses and suspension of the manufacturingactivities,no provision has been made for the interestpayable on different credit facilitiesgranted by CentralBank of India as reflected in Note No. 5 above. The estimated amount of interest Rs.3,69,54,833/- payable till 31st March 2013 ( previous year Rs.3,07,82,601/-). The balances of loans and interest payable to Central Bank of India are subject to confirmation.

2 In viewof heavy accumulated losses and suspension of the manufacturingactivities,no provision has been made for the interest payable on term loan facilitiesgranted by IDBI and now taken over by Aaskha Holdings Pvt Ltd as reflected in Note No. 4 above. The estimated amount of interest payable till 31st March, 2013 works out to Rs.12,62,27,136/-(previous year Rs.10,96,17,086/-) The company is pursuing the matter for waiver of interest. The balances of loans and interest payable are subject to confirmation.

3 The liabilitiesto Central Bank of India for the various credit facilitiesgranted as shown in Note No. 5 have been taken over by Phoenix Arc Pvt. Ltd. as per the agreemententered into by and between Central Bank of India and Phoenix Arc Pvt. Ltd. Phoenix Arc Pvt. Ltd. has served notice to company for recovery of dues of Rs.715.50 Lacs. The Company has not accepted the liabilityand has disputed the agreementand has obtained a stay of recovery from DRT. Phoenix Arc Pvt. Ltd. has taken the symbolic possession of mortgaged premises i.e. 2nd charge on factory and 1st charge on 1000 sq. ft. of office premiseowned by a Director.The matter is pending with DRT for final hearing and disposal.

4 Contingent liabilities and commitments to the extent not provided for : Necessary disclosures have been made in Note No. 20 to 23.

5 Financialstatements have been prepared in accordance with the fundamentalaccounting assumption that the company is a going concern.

6 Figures of the previous year have been regrouped or rearranged whever necessary.

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Mar 31, 2012

Note : In view of Dimunition in value of investments, provision has been made of the full amount. In absense of any documents of the record, no additional information is given relating to the investments.

1.1 As per the agreement for Assignment of Debt executed on 13th July, 2007 between IDBI (Assignor) and Aaskha Holding Pvt Ltd (Assignee). IDBI has transferred it’s rights of the amount receivable from the company to the assignee, Consequently the amount payable as per Books of Accounts of the company to the IDBI, have been transferred in the name of the assignee i.e. Aaskha Holdings Pvt Ltd.

1.2 The manufacturing activities have been suspended by the company and the plant is closed, In view of the same the Plant and Machinary, Office Equipments, fUrniture and Fixture have not been phycically verified. The relevant records are yet to be maintained.

1.3 The company is accounting liability for excise duty on finished products as and when these are cleared as per consistent practice as also considering the accepted practice of the Excise Authorities. The liability in respect of Finished products lying in stock at the close of the year which is estimated at Rs.239556/- (Previous Year Rs. 239556) has not been provided for in the accounts and hence, not included in the valuation of inventory of such products.

1.4 In view of heavy accumulated losses and suspension of the manufacturing activities no provision has been made for the interest payable on different credit facilities granted by Central Bank of India as reflected in Note No. 2.4 above, The estimated amount of interest Rs.3,07,82,601/- payable till 31st March 2012 (previous year Rs.2,54,15,443/-). The balances of loans and interest payable to Central Bank of India are subject to confirmation. _

1.5 In view of heavy accumulated losses and suspension of the manufacturing activities no provision has been made for the interest payable on term loan facilities granted by IDBI and now taken over by Aaskha Holdings Pvt Ltd as reflected in Note No. 2.3 above. The estimated amount of interest payable till 31st March, 2012 works out to Rs.10,96,17,086/-(previous year Rs.9,47,86,684/- ) The company is persuing the matter for waiver of interest. The balances of loans and interest payable are subject to confirmation

1.6 The liabilities to Central Bank of India for the various credit facilities granted as shown in Note No. 2.4 have been taken over by Phoenix Arc Pvt. Ltd. as per the agreement entered into by and between Central Bank of India and Phoenix Arc Pvt. Ltd. Arc Pvt. Ltd. has served notice to company for recovery of dues of Rs.715.50 Lacs. The Company has disputed the agreement and has obtained stay of recovery from DRT. Phoenix Arc Pvt. Ltd. has taken the symbolic possession of mortgaged premises i.e. 2nd charge on factory and 1st charge on 1000 sq. ft. of office premise. The matter is pending with DRT for final hearing and disposal.

1.7 Contingent liabilities and commitments to the extent not provided for As at As at 31/03/2012 31/03/2011

Rs. Rs.

1.7.1 Contingent liabilities

a) Claims against the company not acknowledged as debt: NIL 62730

1.7.2 Commitments:

a) Estimated amount of contracts remaining to be executed NIL 1125000 on capital account and not provided for.

b) Uncalled liability on shares and other investments partly paid 625000 625000

1.8 Financial statements have been prepared in accordance with the fundamental accounting assumption that the company is a going concern.

1.9 The Unsecured loans from directors and from others as reflected in Note No. 2.4 under the head "Loans repayable on demand from others - Unsecured" are free of interest and hence, no provision is required to be made for the interest.

1.10 Figures of the previous year have been regrouped or rearranged wherever necessary.

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Mar 31, 2011

1) Provision for tax is made on both current and deferred taxed. Current tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax liabilities arising on account of timing difference and which are capable of reversals in subsequent period are provided using tax rates and tax laws tha have been enacted or subsequently enacted.

2) As per the agreement for Assignment of Debt executed on 13th July, 2007 between IDBI (Assignor) and Aaskha Holding Pvt Ltd (Assignee). IDBI has transferred it's rights of the amount receivable from the company to the assignee, Consequently the amount payable as per Books of Accounts of the company to the IDBI, have been transferred in the name of the assignee i.e. Aaskha Holdings Pvt Ltd.

3) Contingent liabilities not provided for in respect of:

I) Expenses in dispute Rs.62,730/- (Previous year Rs.62,730/-)

II) Uncalled amount on Investment in Shares Rs.625000/-. -(Previous year Rs.625000/-)

4) Estimated amount of contracts remaining to be executed on Capital account and not provided for (Excluding Advances)Rs. 11.25 Lakhs. (Previous Year RS.11.25 lacs)

5) Foreign Currency w

The Company has not incurred any expenses involving foreign exchange transaction.

6) Additional information pursuant to Notification No. GSR/12 dated. 22.2.99 relating to SSI undertakings has not been furnished as the same is not readily ascertainable.

7) The manufacturing activities have been suspended by the company and the plant is closed, In view of the same the Plant and Machinery, Office Equipments, furniture and Fixture have not been physically verified. The relevant records are yet to be maintained, in the accounts and hence not included in the valuation of inventory of such products.

8) The company is accounting liability for excise duty on finished products as and when these are cleared as per consistent practice as also considering the accepted practice of the Excise Authorities. The liability in respect of finished products lying in stock at the close of the year which is estimated at Rs.239556/- (Previous Year Rs. 239556) has not been provided in the for accounts and hence not included in the valuation of inventory of such products.

9) In view of heavy accumulated losses and suspension of the manufacturing activities No provision has been made for the interest payable on different credit facilities granted by Central Bank of India reflected in schedule -2 secured loan against hypothecation of stocks and book debts. The estimated amount of interest Rs.2,54,15,443/- payable till 31st March 2011 ( previous year Rs.2,15,81,759/-) 'The balances of loans and interest payable to Central Bank of India are subject are subject to confirmation.

10) In view of heavy accumulated losses and suspension of the manufacturing activities no provision has been made for the interest payable on term loan facilities granted by IDBI and now taken over by Aaskha Holdings Pvt Ltd as reflected in Schedule - 2 secured Loans. The estimated amount of interest payable till 31st March, 2011 works out to Rs.9,47,86,684/- (previous year Rs.5,91,66,562/-) The company is persuing the matter for waiver of interest. The balances of loans and interest payable are subject to confirmation.

11) The Unsecured loans from directors and from others as reflected in schedule 3, are free of interest and hence, no provision is required to be made for the interest The same are 'subject to confirmation.

12) Investments of Rs.155000/- (in Previous year Rs. 1,55,000/-) as reflected in schedule 6 are not supported by adequate documents and in respect of which adequate information is not available and hence required particulars have not been stated.

13) Inventories as reflected in schedule - 7 have no realisable value and no provision has been made for the same In view of the same no physical verification of the inventories has been carried out.

14) Balances of Sundry Debtors and Creditors are subject to Confirmations, major part of debtors are considered doubtful and have not been quantified and have not been provided for.

15) Advances and Deposits as reflected in Schedule 10 are subject to adequate documents and confirmations.

16) Cash on hand of Rs.5796/-as reflected in schedule - 9 is certified as correct by the managing director.

17) In view of the losses, no provision has been made for Income Tax.

18) Financial statements have been prepared in accordance with the fundamental accounting assumption that the company is a going concern.

19) Additional information pursuant to the provision of paragraph 3 & 4C of part II of schedule VI to the Companies Act, 1956. (As certified by the management)

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Mar 31, 2010

1) Contingent liabilities not provided for in respect of :

I) Expenses in dispute Rs.62,730/- (Previous year Rs.62,730/-)

II) Uncalled amount on Investment in Shares Rs.625000/-. -(Previous year Rs.625000/-)

2) Foreign Currency Transactions:

The Company has not incurred any expenses involving foreign exchange transaction.

3) Additional information pursuant to Notification No. GSR/12 dated. 22.2.99 relating to SSI undertakings has not been furnished as the same is not readily ascertainable.

4) The manufacturing activities have been suspended by the company and the plant is closed, In view of the same the Plant and Machinery, Office Equipments, furniture and Fixture have not been physically verified. The relevant records are yet to be maintained.

5) The company is accounting liability for excise duty on finished products as and when these are cleared as per consistent practice as also considering the accepted practice of the Excise Authorities. The liability in respect of finished products lying in stock at the close of the year which is estimated at Rs.239556/- (Previous Year Rs. 239556) has not been provided for in the accounts and hence not included in the valuation of inventory of such products.

6) In view of heavy accumulated losses and suspension of the manufacturing activities No provision has been made for the interest payable on different credit facilities granted by Central Bank of India reflected in schedule -2 secured loan against hypothecation of stocks and book debts. The estimated amount of The balances of loans and interest payable to Central Bank of India are subject to confirmation.

7) In view of heavy accumulated losses and suspension of the manufacturing activities no provision has been made for the interest payable on term loan facilities granted by IDBI and now taken over by Aaskha Holdings Pvt Ltd as reflected in Schedule - 2 secured Loans. The estimated amount of interest payable till 31st March, 2010 works out to Rs.8,15,45,255/- (previous year Rs.6,97,22,549/-) The company is perusing the matter for waiver of interest. The balances of loans and interest payable are subject to confirmation.

8) The Unsecured loans from directors and from others as reflected in schedule 3, are free of interest and hence, no provision is required to be made for the interest The same are 'subject to confirmation.

9) Investments of Rs.155000/- (in Previous year Rs. 1,55,000/-) as reflected in schedule 6 are not supported by adequate documents and in respect of which adequate information is not available and hence required particulars have not been stated.

10) Inventories as reflected in schedule - 7 have no realisable value and no provision has been made for the same In view of the same no physical verification of the inventories has been carried out.

11) Balances of Sundry Debtors and Creditors are subject to Confirmations, major part of debtors are considered doubtful and have not been quantified and have not been provided for.

12) Advances and Deposits as reflected in Schedule 10 are subject to adequate documents and confirmations.

13) Cash on hand of Rs.63296/-as reflected in schedule - 9 is certified as correct by the managing director. *

14) In view of the losses, no provision has been made for Income Tax.

15) Financial statements have been prepared in accordance with the fundamental accounting assumption that the company is a going concern.

16) Additional information pursuant to the provision of paragraph 3 & 4C of part II of schedule VI to the Companies Act, 1956. (As certified by the management).