2. There are no earnings and expenditures in foreign currency.

3. Contingent liabilities not provided for in respect of:

a) Excise duty of Rs. 103,934/- was paid under protest during the year 2003-2004 against demand raised by Central Excise Department. Excise Department has appealed against the order of the Tribunal, which was in favor of the company. Out of the total appealed amount of Rs. 3,286,165/-, appeal is pending for Rs. 103,934/-;

b) Further, excise duty of Rs. 713,093/- has been paid during the year 2008-2009 against the demand raised by Central Excise Department pertaining to earlier years. Appeal is pending with Central Excise Commissioner;

c) During the year 2008-2009, The Director General of Central Excise-Intelligence, New Delhi has served a show cause notice dated 01.10.2009 on the company raising a demand of Rs. 719,156,761/- consequent upon a raid conducted by The DGCEI, New Delhi on 09.05.2008 in the premises of the company. Although, the company did not have any activity whatsoever relating to Pan Masala business during the financial year 2008-09, still the company was made to deposit a sum of Rs. 30,000,000/- during the financial year 2008-09 with The DGCEI, New Delhi.

However, at present, the said show cause notice is pending for adjudication with The Commissioner, Central Excise, Kanpur, Uttar Pradesh.

d) "During the year 2012-2013, the Income Tax Department has raised a demand of Rs.19,628,086/- vide income tax assessment order dated 22.03.2013 in respect of assessment year 2005-06. The company has filed an appeal before The Hon'ble Commissioner of Income Tax (Appeals), which is still pending for disposal."

4. Deposit with Central Excise, Customs and Sales Tax Departments includes balance lying with Central Excise department on account of CENVAT claimed but not availed, with State Trade Tax Department and Entry Tax Department for Rs. 4,321,399/-, Rs. 1,470,065/- and Rs. 10,600/- (2012-2013 Rs. 4,321,399/-, Rs. 1,470,065/- and Rs. 10,600/-) respectively.

5. There were no Micro and Small enterprises to whom, amounts are outstanding for more than 45 days as at March 31, 2014 (Previous Year Rs. Nil). As at March 31, 2014, no supplier has intimated the company about its status as Micro and Small enterprises or its registration with the appropriate authority under The Micro, Small and Medium Enterprises Development Act, 2006.

6. Earnings Per Share

Basic Earnings per Share is calculated by dividing the net profit for the period attributable equity shareholders by the weighted average number of equity shares outstanding during the period.

Net Profit after tax                             178,896.12
Weighted average no of shares
outstanding (Equity shares of Rs 10 each)         5,000,200
Basis/Diluted Earnings Per Share                       0.04

7. Related Party Disclosures

a) Following are Related Parties:

1. Key Management Personnel Mr. G.N. Choudhary

2. Associates                    R.G.M. Marketing Private Limited
                                 Raghunath Builders Private Limited

3. Individual and their          Mr. Om Prakash Agrawal
   relatives having significant  Mr. Jai Prakash Agrawal
   influence over the company    Mr. Sri Prakash Agrawal
                                 Om Prakash Agrawal (HUF)
                                 Jai Prakash Agrawal (HUF)
                                 Sri Prakash Agrawal (HUF)
                                 Mr. Yuvraj Dalmia
                                 Mr. Pulkit Dalmia
                                 Mr. Prakhar Dalmia

4. Enterprises over which        Lotus Infra Projects Private Limited
   persons mentioned in          PJ. Softwares Private Limited    
   paragraph number (3) above    Sir Bio Tech India Limited
   exercise significant          Eternity Townships Private Limited
   influence                     Raghunath Holdings and Finlease
                                 Private Limited