Notes to Accounts of Magna Industries Exports Ltd.

Mar 31, 2012

1. Provision for Taxation has been made after considering exemptions, allowances & disallowances under the Income Tax Act 1961,if any. Deferred Tax Asset of Rs. 9,738/- has been created for the year.

2. No provision for gratuity has been made as no employee has put in the qualifying period of service for entitlement of this benefit under the Payment of Gratuity Act 1972.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. NIL (Previous Rs. NIL).

4. Application money in Arrears amounting to Rs. 33,000/- (Previous year Rs. 33,000/-) represent stock invest instruments returned unpaid by the Bankers.

5. Certain statutory requirements under the Companies Act, 1956 and proper maintenance of records thereof are under compliance,

6. In the opinion of the management, the current assets, loans and advances have a value on realisation in the ordinary course of business, at least equal to the same amount at which they are stated in the Balance Sheet The provision for depreciation and other known liabilities is adequate and not in excess of what is required.

7. Confirmations in respect of balances of few Sundry Debtors, Creditors, Loans & Advances, Deposits are in the process of being collected and the same are subject to reconciliations/-and adjustments, if any.

8. There were no amounts overdue and remaining unpaid to small scale and/or ancillary industrial suppliers on account of principal and/or interest as at the close of the year.

9. Previous years figures have been regrouped / rearranged wherever necessary to make them comparable with current year figures.