Notes to Accounts of Sun Granite Export Ltd.

Mar 31, 2014

The Previous year figuers have been regrouped / reclassified, wherever necessary to conform to the Current year presentation.

1.1 SBI Term Loan of Rs.2.50 Crores is secured by first charge basis on ail the movable & immovable properties such as Land & Building, Plant & Machinery and other Fixed Assets, both present and future, corporate guarantee of promoters companies and personal guarantee of Promoter Directors'' of the Company.

1.2 Cash Credit from State Bank of India of Rs.3.02 Crores is secured by hypothecation of inventories, book debts, personal gurantee of the Directors of the Company and second charge on fixed assets of the Company.

1.3 No further interest considered/provided in the books, in view of NPA in the books of the Banker State Bank of India.

1.4 Unsecured Loan from directors represents interest free loan and no charge against the movable or immovable assets of the Company.

2.1 During the current financial year no Deferred Tax Libility has been provided.

3.1 During the current year no provision for income tax has been provided in the Books of Accounts. As per the caculation according to the Provisions of Income Tax Act, 1961 there is no liability in respect of Income Tax.

4. RELATED PARY DISCLUSURES

As per Accounting Standard 18, Issued by The Institute of Chartered Accountants Of India the disclosure of transactions with the related parties are given below :

a) Enterprise over which promoters, Key Management Personnel and or their relatives have significant influence (with whom company had transactions) : NIL

AS AT 31ST AS AT 31ST 5. CONTINGENT LIABILITIES AND COMMITMENTS MARCH,2014 MARCH,2013

NIL NIL

A GENERAL INFORMATION

Sun Granite Export Limited is a public limited company incorporated under the provisions of the Companies Act, 2013. The Company is listed at Bombay Stock Exchange. The Company is engaged in the business of manufacturing of polished granite slabs and export & DTA sales to various national and international clients.

CONTINGENT LIABILITY

CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGED AS DEBTS

1. CESCO Ltd, has raised bills towards electricity charges during the year 2005-2006 for Rs 55, 90,984.00. But the Company has accounted for Rs.

53.09.706.00 with reference to the interim order of the Honorable High Court of Orissa., vide order no: OJC 10494/96 dated: 27.09.96. However, the company is contingently liable for the differential amount of Rs. 2, 81,278.00 for 2005-06.

2. Entry Tax matters pending in appeal relating to the year 2000-2001 of Rs. 6,34,307.04

Income Tax matters pending in appeal for 1995-1996 amounting to Rs. 7, 44.945.00

3. OTHER MONEY FOR WHICH THE COMPANY IS CONTIGENTLY LIABLE

i) The company has given counter guarantees to State Bank of India for providing bank guarantee on Company''s behalf for Rs. 4.20 lacs in favor of Assistant Commissioner, Central Excise, Customs & Service Tax.

ii) Since the loan accounts of State Bank of India are classified as NPA by the said bank and the case is pending in DRT no provision was made for interest on said loan for the Current financial year. However ,the company is contingently liable for the interest accrued on SBI secured loan amounting to Rs.96,74,903 calculated @12% p.a on 806.24 lacs.

1. Sales are exclusive of Excise Duty & Exclusive of Sales Tax.

2. SSI units to which company owes more than rupees one lakhs for more than 30 days. Small Scale and ancillary industrial undertakings to which amounts are due have been determine based on the information available with the company. However there was no amount overdue as on 31st March'' 2013.

3. MINING DEVELOPMENT

During the year the Mining Division has not incurred any expenditure towards mining development.

4. DEFERED TAX

The company is having unabsorbed depreciation of Rs.34.60 lacs up to F.Y ending 2008-09 for set off as per Income Tax Act. And during F.Y 2008-09 Loss incurred was Rs. 16.48 lacs as per Income Tax Act. Hence no provision for deferred tax made during the year.

5. PRIOR PERIOD INCOME/EXPENSES

During the year Interest on Security deposit received/ adjusted against current year Power charges of CESU Rs 253065/- was relating to the year 2004-05,2005-06 & 2006-07.

6. INTEREST AND FINANCIAL CHARGES

Interest and Financial charges includes interest paid on Unsecured loan of Rs. 23,52,400.45 arranged by the Directors on behalf of the Company.

7. None of the employees were in receipt remuneration or Rs. 1, 25,000/- per month or Rs.15, 00,000/- per annuam.

8. Information pursuant to the provisions of paragraph 3 & 4 of part- II of Schedule - IV to the Companies Act, 2013.

Previous years figures have been re-arranged/re-grouped wherever considered necessary.

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Mar 31, 2013

Notes:-

1.1 SBI Term Loan of Rs.2.50 Crores is secured by first charge basis on all the movable & immovable properties such as Land & Building, Plant & Machinery and other Fixed Assets, both present and future, corporate guarantee of promoters companies and personal guarantee of Promoter Directors'' of the Company,

1.2 Cash Credit from State Bank of India of Rs.3.02 Crores is secured by hypothecation of inventories, book debts, personal gurantee of the Directors of the Company and second charge on fixed assets of the Company.

1.3 No further interest considered/provided in the books, in view of NPA in the books of the Banker State Bank of India.

1.4 Unsecured Loan from directors represents interest free loan and no charge against the movable or immovable assets of the Company.

2. CONTINGENT LIABILITIES AND COMMITMENTS AS AT 31ST AS AT MARCH,2013 MARCH,2012 NIL NIL

GENERAL INFORMATION

Sun Granite Export Limited is a public limited company incorporated under the provisions of the Companies Act. 1956 The Company is listed at Bombay Stock Exchange The Company is engaged in the business of manufacturing of polished granite slabs and export & DTA sales to various national and international clients.

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Mar 31, 2012

1. Long Term Borrowings

1.1 SBI Term Loan of Rs.2.50 Crores is secured by first charge basis on ail the movable & Immovable properties such as Land & Building, Plant & Machinery and other Fixed Assets, both present and future, corporate guarantee of promoters companies and personal guarantee of Promoter Directors'' of the Company.

1.2 Cash Credit from State Bank of India of fts,3.02 Crores is secured by hypothecation of Inventories, book debts, personal guarantee of the Directors of the Company and second charge on fixed assets of the Company.

1.3 No further interest considered/provided In the books, in view of NPA in the books of the Banker State Bank of India.

1.4 Unsecured Loan from directors represents interest free loan and no charge against the movable or immovable assets of the Company,

2. Short Term Provisions

During the current year no provision for income tax has been provided in the Books of Accounts- As per the calculation according to the Provisions of income Tax Act, 1961 there is no liability in respect of Income Tax,

3. RELATED PARY DISCLOSURES

As per Accounting Standard 18, Issued by The Institute of Chartered Accountants Of India the disclosure of transactions with the related parties are given below :

a) Enterprise over which promoters, Key Management Personnel and or their relatives have significant Influence (with whom company had transactions) ; NIL

4. CONTINGENT LIABILITIES AND COMMITMENTS AS AT 31ST AS AT 3lST MARCH, 2012 MARCH, 2011

NIL NIL