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Notes to Accounts of Rajesh Exports Ltd.

Mar 31, 2015

1. Leases Operating lease:

The Company has let-out and taken premises under cancelable operating lease agreements, which the Company intends to renew in the normal course of its business. The lessee cannot sublease these properties. Total lease rentals recognized as income in the Profit and Loss Account for the year with respect to above is Rs. 1049168 /- (Previous year Rs.1032627/-) and total lease rentals recognized as expenditure is Rs.7533174/-(Previous year Rs. 3276619/-).

2. Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for is NIL (Previous Year is NIL ).

3. Micro and Small Enterprises dues

Based on the information / Documents available with the Company, amounts due to micro and small enterprises are NIL.

4. Contingent Liabilities

Contingent liabilities not provided for:

a. Sales tax and entry tax demands of Rs.4,79,057/- (Previous year Rs.4,79,057/-) are disputed by the Company.

b. The Company had an order from the Income Tax authorities dated December 27, 2006 for the period April 1, 2003 to March 31, 2004 demanding a tax payment of Rs. 9,99,60,890 /- The Commissioner of Income Tax (Appeals) has passed an adverse order confirming the order of assessing authority. The Company has appealed against the said order before the Income Tax Appellate Tribunal, and the income Tax Appellate Tribunal has passed an order in favor of the company, allowing the deduction under section 10B of the Income Tax Act, which is the major portion of the demand raised by the department. However, the Tribunal did not allow expenses of Rs. 200 lakhs. Against the order of the Income Tax Appellate Tribunal, the company and the Income Tax Department both have appealed before the Hon'ble High Court of Karnataka and the Company firmly believes that the issue will be settled in its favor. Further, the Company had received an order from the tax authorities dated November 13, 2009, (rectified by order dated December 31, 2009) for the period April 1, 2006 to March 31, 2007 demanding an additional tax payment of Rs. 36,99,89,925/-. The Company has appealed before the Commissioner of Income Tax (Appeals) against the said order and the Company firmly believes that the issue will be settled in its favour.

Further, the Company had received an order from the tax authorities dated December 30, 2010, ( rectified by order dated January 19, 2011 and order dated January 27, 2011) for the period April 1, 2007 to March 31, 2008 demanding an additional tax payment of Rs. 88,23,82,070. The Company has appealed before the Commissioner of Income Tax (Appeals) against the said order and the Company firmly believes that the issue will be settled in its favour.

c. The Company has received a demand notice from Employees State Insurance Corporation, Karnataka Region for the period from April 2000 to March 2003 demanding Rs. 11903054/- Company has appealed against the order and paid Rs. 29,75,764 /- under protest and Appellate Authority has reduced the tax to Rs 33,93,286/- & currently the matter is in Employees State Insurance Court. The management firmly believes that the issue will be settled in its favour.

The Company has also appealed against the order of Notice from Employees State Insurance Corporation, Karnataka Region for the period from April 2006 to September 2007 demanding Rs. 47,22,209 /- ( including interest etc) and paid Rs. 9,43,800 /- under protest, which is pending decision before Appellate Authority. The management firmly believes that the issue will be settled in its favour.

d. The company has appealed against the order of Show cause Notice from Commissioner of Central Excise( Service Tax ) Bangalore demanding Service Tax of Rs. 2,44,83,060/- before the CESTAT and paid Rs. 1,22,41,530 /- under protest, The CESTAT has passed orders on the matter and directed the service tax commissioner to review the order in the light of its findings. The management firmly believes that the issue will be settled in its favor.

5. Directors remuneration includes remuneration payable to Executive chairman and Managing director of Rs. 2,39,976/- (Previous Year Rs. 2,39,976/-)

6. Brief Particulars of Employees who were entitled to receive or were in receipt of emoluments aggregating to Rs. 60,00,000/- or more per annum and/or Rs.500,000/- or more per month, if employed, for a part of the year is Nil (Previous Year Nil)

7. In Accordance with the Accounting Standard 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountant of India, The Company has not recognized the Deferred tax liabilities on account of timing differences of Rs. 18,37,87,608/- as on 31st March 2015 (Previous Year Rs. 184110505/-) as there is no virtual certainty that such deferred assets can be realized against future taxable profits. The breakup of deferred tax liabilities not recognised is furnished here under:

8. Company has identified that there is no material impairment of assets and as such no provision is required as per AS-28 issued by the ICAI.

9. In the opinion of the management, no provision is required against contingent liabilities.

10. Unclaimed dividend accounts are subject to reconciliation.

11. Previous year figures have been regrouped or reclassified wherever necessary to conform to the current year's grouping or classification


Mar 31, 2014

I. Leases

Operating lease:

The Company has let-out and taken premises under cancelable operating lease agreements, which the Company intends to renew in the normal course of its business. The lessees cannot sublease these properties. Total lease rentals recognized as income in the Profit and Loss Account for the year with respect to above is Rs. 1032627 /- ( Previous year Rs. 1629961 /- ) and total lease rentals recognized as expenditure is Rs.3276619/- ( Previous year Rs. 3826660/- ).

ii. Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for is NIL (Previous Year is NIL ).

iii. Contingent Liabilities

Contingent liabilities not provided for :

(a) Sales tax and entry tax demands of Rs.479057/- (Previous year Rs. 4,79,057/-) are disputed by the Company

(b) The Company had an order from the Income Tax authorities dated December 27, 2006 for the period April 1, 2003 to March 31, 2004 demanding a tax payment of Rs.9,99,60,890/- The Commissioner of Income Tax (Appeals) has passed an adverse order confirming the order of assessing authority. The Company has appealed against the said order before the Income Tax Appellate Tribunal, and the income Tax Appellate Tribunal has passed an order in favor of the company, allowing the deduction under section 10B of the Income Tax Act, which is the major portion of the demand raised by the department. However, the Tribunal did not allow expenses of Rs. 200 lakhs. Against the order of the Income Tax Appellate Tribunal, the company and the Income Tax Department both have appealed before the Hon’ble High Court of Karnataka and the Company firmly believes that the issue will be settled in its favor. Further, the Company had received an order from the tax authorities dated November 13, 2009, (rectified by order dated December 31, 2009) for the period April 1, 2006 to March 31, 2007 demanding an additional tax payment of Rs. 36,99,89,925/-. The Company has appealed before the Commissioner of Income Tax (Appeals) against the said order and the Company firmly believes that the issue will be settled in its favour.

Further, the Company had received an order from the tax authorities dated December 30, 2010, ( rectified by order dated January 19, 2011 and order dated January 27, 2011) for the period April 1, 2007 to March 31, 2008 demanding an additional tax payment of Rs.88,23,82,070. The Company has appealed before the Commissioner of Income Tax (Appeals) against the said order and the Company firmly believes that the issue will be settled in its favour.

(c) The Company has appealed against the order of Demand Notice from Employees State Insurance Corporation, Karnataka Region for the period from April 2000 to March 2003 and paid Rs. 29,75,764 /- under protest and Appellate Authority has reduced the tax to Rs 33,93,286/- & currently the matter is in Employees State Insurance Court. The management firmly believes that the issue will be settled in its favour.

The Company has also appealed against the order of Notice from Employees State Insurance Corporation, Karnataka Region for the period from April 2006 to September 2007 demanding for Rs. 47,22,209 /- ( including interest etc) and paid Rs. 9,43,800 /- under protest, which is pending decision before Appellate Authority. The management firmly believes that the issue will be settled in its favour.

(d) The company has appealed against the order of Show cause Notice from Commissioner of Central Excise( Service Tax ) Bangalore demanding Service Tax of Rs. 2,44,83,060/- before the CESTAT and paid Rs. 1,22,41,530 /- under protest, The CESTAT has passed orders on the matter and directed the service tax commissioner to review the order in the light of its findings. The management firmly believes that the issue will be settled in its favor.

iv. Directors remuneration includes remuneration payable to Executive chairman and Managing director of Rs. 2,39,976/- (Previous Year Rs. 2,39,976/-)

v. Brief Particulars of Employees who were entitled to receive or were in receipt of emoluments aggregating to Rs.60,00,000/- or more per annum and/or Rs.500,000/- or more per month, if employed, for a part of the year is Nil (Previous Year Nil)

vi.In Accordance with the Accounting Standandard 22 on " Accounting for Taxes on Income" issued by the Institute of Chartered Accountant of India, The Company has not recognized the Deferred tax liabilities (on account of fixed assets etc. on account of timing differences).

vii. Company has identified that there is no material impairment of assets and as such no provision is required as per AS-28 issued by the ICAI.

viii. In opinion of the management, no provision is required against contingent liabilities.

ix. Unclaimed dividend accounts are subject to reconciliation.

x. Additional information required pursuant to paragraph 3 and 4 of the Part II of Schedule VI of the Companies Act 1956.


Mar 31, 2013

I. Leases Operating lease:

The Company has let out and taken premises under cancelable operating lease agreements, which the Company intends to renew in the normal course of its business. The lessees cannot sublease these properties. Total lease rentals recognized as income in the Profit and Loss Account for the year with respect to above is Rs.1629961/- ( Previous year Rs. 2187115/- ) and total lease rentals recognized as expenditure is Rs.3826660/- ( Previous year Rs. 5668024/- ).

ii. Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for is NIL (Previous Year is NIL).

iii. Contingent Liabilities

2. Contingent liabilities not provided for :

(a) Sales tax and entry tax demands of Rs.479057/- ( Previous year Rs. 479057/- ) are disputed by the Company.

(b) The Company had received an order from the tax authorities dated December 27, 2006 for the period April 1, 2003 to March 31, 2004 demanding a tax payment of Rs.99960890/- The Commissioner of Income Tax (Appeals) has passed an adverse order confirming the order of assessing authority. The Company has appealed against the said order before the Income Tax Appellate Tribunal, and the income Tax Appellate Tribunal has passed an order in favor of the company, allowing the deduction under section 10B of the Income Tax Act, which is the major portion of the demand raised by the department. However, the Tribunal did not allow expenses of Rs. 200 lakhs. Against the order of the Income Tax Appellate Tribunal, the company and the Income Tax Department both have appealed before the Hon''ble High Court of Karnataka and the Company firmly believes that the issue will be settled in its favor. Further, the Company had received an order from the tax authorities dated November 13, 2009, (rectified by order dated December 31, 2009) for the period April 1, 2006 to march 31, 2007 demanding an additional tax payment of Rs. 369989925/-. The Company has appealed before the Commissioner of Income Tax (Appeals) against the said order and the Company firmly believes that the issue will be settled in its favour. Further, the Company had received an order from the tax authorities dated December 30, 2010, (rectified by order dated January 19, 2011 and order dated January 27, 2011) for the period April 1, 2007 to March 31, 2008 demanding an additional tax payment of Rs. 882382070. The Company has appealed before the Commissioner of Income Tax (Appeals) against the said order and the Company firmly believes that the issue will be settled in its favour.

(c) The Company has received a Demand Notice from Employees State Insurance Corporation, Karnataka Region for the period from April 2000 to March 2003. The Company has appealed against the order and paid Rs. 2975764 /- under protest and Appellate Authority has reduced the tax to Rs 3393286/-, currently the matter is in Employees State Insurance Court, The management firmly believes that the issue will be settled in its favour.

During the year Company has received a Demand Notice from Employees State Insurance Corporation, Karnataka Region for the period from April 2006 to September 2007 demanding for Rs. 4722209 /- ( including interest etc) . The Company has appealed against the order and paid Rs. 943800 /-. Under protest, which is pending decision before Appellate Authority. The management firmly believes that the issue will be settled in its favour.

(d) The Company has received Show cause Notice from the Commissioner of Central Excise( Service Tax ) Bangalore demanding Service Tax of Rs. 24483060/-. The company has appealed against the order before the CESTAT and paid Rs. 12241530 /- under protest, The CESTAT has passed orders on the matter and directed the service tax commissioner to review the order in the light of it''s findings. The management firmly believes that the issue will be settled in its favor .

iv. Directors remuneration includes remuneration payable to Executive chairman and Managing director of Rs.2,39,976/- (Previous Year Rs.2,39,976/-)

v. Brief Particulars of Employees who were entitled to receive or were in receipt of emoluments aggregating to Rs.60,00,000/- or more per annum and/or Rs.500,000/- or more per month, if employed, for a part of the year is Nil (Previous Year Nil)

vi. In accordance with the Accounting Standard 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has not recognized the Deferred tax assets (on account of unabsorbed losses etc. on account of timing differences) of Rs.62911262/- as on 31st March 2013, (Previous Year Rs. 438705067/-) as there is no virtual certainty that such deferred tax assets can be realized against future taxable profits.

vii. Company has identified that there is no material impairment of assets and as such no provision is required as per AS-28 issued by the ICAI.

viii. In the opinion of the management, no provision is required against contingent liabilities.

ix. Unclaimed dividend accounts are subject to reconciliation.

x. The company has reclassified the previous year figures in accordance with the requirements applicable in the current period.

xi. Additional information required pursuant to paragraph 3 and 4 of the Part II of Schedule VI of the Companies Act 1956.


Mar 31, 2012

I. Leases

Operating lease:

The Company has let out and taken premises under cancelable operating lease agreements, which the Company intends to renew in the normal course of its business. The lessees cannot sublease these properties. Total lease rentals recognized as income in the Profit and Loss Account for the year with respect to above is Rs. 2187115 /- ( Previous year Rs. 640151 /- ) and total lease rentals recognized as expenditure is Rs.5668024/- ( Previous year Rs. 4926749/- ).

ii. Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for is NIL (Previous Year is NIL ).

iii. Contingent Liabilities

1. Contingent liabilities not provided for :

(a) Sales tax and entry tax demands of Rs. 479057/- (Previous year Rs. 831901/-) are disputed by the Company

(b) The Company had received an order from the tax authorities dated December 27, 2006 for the period April 1, 2003 to March 31, 2004 demanding a tax payment of Rs. 99960890 /- The Commissioner of Income Tax (Appeals) has passed an adverse order confirming the order of assessing authority. The Company has appealed against the said order before the Income Tax Appellate Tribunal, and the income Tax Appellate Tribunal has passed an order in favor of the company, allowing the deduction under section 10B of the Income Tax Act, which is the major portion of the demand raised by the department. However, the Tribunal did not allow expenses of Rs. 200 lakhs. Against the order of the Income Tax Appellate Tribunal, the company and the Income Tax Department both have appealed before the Hon'ble High Court of Karnataka and the Company firmly believes that the issue will be settled in its favor. Further, the Company had received an order from the tax authorities dated November 13, 2009, (rectified by order dated December 31, 2009) for the period April 1, 2006 to march 31, 2007 demanding an additional tax payment of Rs. 369989925/-. The Company has appealed before the Commissioner of Income Tax (Appeals) against the said order and the Company firmly believes that the issue will be settled in its favour. Further, the Company had received an order from the tax authorities dated December 30, 2010, (rectified by order dated January 19, 2011 and order dated January 27, 2011) for the period April 1, 2007 to March 31, 2008 demanding an additional tax payment of Rs. 882382070. The Company has appealed before the Commissioner of Income Tax (Appeals) against the said order and the Company firmly believes that the issue will be settled in its favour.

(c) The Company has received a Demand Notice from Employees State Insurance Corporation, Karnataka Region for the period from April 2000 to March 2003. The Company has appealed against the order and paid Rs. 2975764 /- under protest and Appellate Authority has reduced the tax to Rs 3393286/-, currently the matter is in Employees State Insurance Court, The management firmly believes that the issue will be settled in its favour.

During the year Company has received a Demand Notice from Employees State Insurance Corporation, Karnataka Region for the period from April 2006 to September 2007 demanding for Rs. 4722209 /- ( including interest etc) . The Company has appealed against the order and paid Rs. 943800 /-. Under protest, which is pending decision before Appellate Authority. The management firmly believes that the issue will be settled in its favour.

(d) The Company has received Show cause Notice from the Commissioner of Central Excise( Service Tax ) Bangalore demanding Service Tax of Rs. 24483060/-. The company has appealed against the order before the CESTAT and paid Rs. 12241530 /- under protest, The CESTAT has passed orders on the matter and directed the service tax commissioner to review the order in the light of it's findings. The management firmly believes that the issue will be settled in its favor .

iv. Directors remuneration includes remuneration payable to Executive chairman and Managing director of Rs. 2,39,976/- (Previous Year Rs. 2,39,976/-)

v. Brief Particulars of Employees who were entitled to receive or were in receipt of emoluments aggregating to Rs.60,00,000/- or more per annum and/or Rs.500,000/- or more per month, if employed, for a part of the year is Nil (Previous Year Nil)

vi. In accordance with the Accounting Standard 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has not recognized the Deferred tax assets (on account of unabsorbed losses etc. on account of timing differences) of Rs.43 87 05 067/- as on 31st March 2012, (Previous Year Rs. 77 27 66 850 /-) as there is no virtual certainty that such deferred tax assets can be realized against future taxable Profits.

vii. Company has identified that there is no material impairment of assets and as such no provision is required as per AS-28 issued by the ICAI.

viii. In the opinion of the management, no provision is required against contingent liabilities.

ix. Unclaimed dividend accounts are subject to reconciliation.

x. The company has reclassified the previous year figures in accordance with the requirements applicable in the current period. xiii. Additional information required pursuant to paragraph 3 and 4 of the Part II of Schedule VI of the Companies Act 1956.


Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account (net of advances) not provided for is Nil (Previous year - Nil)

2. Contingent liabilities not provided for:

(a) Sales tax and entry tax demands are disputed by the Company Rs. 4,79,057/- (Previous year Rs 8,31,901/-)

(b) The Company had received an order from the tax authorities dated December 27, 2006 for the period April 1, 2003 to March 31, 2004 demanding a tax payment of Rs 9,99,60,890. The Commissioner of Income Tax (Appeals) has passed an adverse order confirming the order of assessing authority. The Company has appealed against the said order before the Income Tax Appellate Tribunal, and the Income Tax Appellate Tribunal has passed an order in favour of the company, allowing the deduction under section 10B of the Income Tax Act, which is the major portion of the demand raised by the department. However,the Tribunal did not allow an expense of Rs. 200 lakhs. Against the order of the Income Tax Appellate Tribunal, the company and the Income Tax Department both have appealed before the Hon'ble High Court of Karnataka and the Company firmly believes that the issue will be settled in its favour. Further, the Company had received an order from the tax authorities dated November 13, 2009,( rectified by order dated December 31, 2009) for the period April 1, 2006 to March 31, 2007 demanding an additional tax payment of Rs 36,99,89,925. The Company has appealed before the Commissioner of Income Tax (Appeals) against the said order and the Company firmly believes that the issue will be settled in its favour.

Further, the Company had received an order from the tax authorities dated December 30, 2010,( rectified by order dated January 19, 2011 and order dated January 27, 2011) for the period April 1, 2007 to March 31, 2008 demanding an additional tax payment of Rs 88,23,82,070. The Company has appealed before the Commissioner of Income Tax (Appeals) against the said order and the Company firmly believes that the issue will be settled in its favour.

(c) The Company has received a Demand Notice from Employees State Insurance Corporation, Karnataka Region for the period from April 2000 to March 2003 demanding for Rs. 1,19,03,054/- The Company has appealed against the order and paid Rs. 29,75,764/- under protest, which is pending decision before Appellate Authority. The management firmly believes that the issue will be settled in its favour.

During the year Company has received a Demand Notice from Employees State Insurance Corporation, Karnataka Region for the period from April 2006 to September 2007 demanding for Rs. 47,22,209/-. The Company has appealed against the order and paid Rs. 9,43,800/- under protest, which is pending decision before Appellate Authority. The management firmly believes that the issue will be settled in its favour.

(d) The Company has received an order from the Commissioner of Central Excise, Bangalore demanding Service Tax of Rs.2,44,83,060/- with the equal amount as penalty for the period from April 2006 to March 2007. The Company has appealed against the order before the Appellate Tribunal and paid Rs.1,22,41,530/- under protest, which is pending decision before Appellate Authority. The management firmly believes that the issue will be settled in its favour.

4. Directors remuneration includes remuneration payable to Executive chairman and Managing director of Rs.2,39,976/- ( Previous Year Rs.2,39,976/- )

5. Brief particulars of Employees who were entitled to receive or were in receipt of emoluments aggregating to Rs.60,00,000/- or more per annum and/or Rs.500,000/- or more per month, if employed, for a part of the year is Nil ( Previous Year Nil).

6. The company has taken a key man's insurance policy from Life Insurance Corporation of India on the life of Mr. Rajesh Mehta, Executive chairman for a sum assured of Rs 300 lakhs with ten year term and paid annual premium of Rs.30,29,175/- during the year which has been accounted under administrative & selling expenses. Amount receivable on maturity or otherwise shall be accounted as income in the year of receipt.

7. Income from operations includes bank interest earned Rs. 4,886,033,210/-; (Previous Year Rs. 516,38,47,252/-). Interest earned on fixed deposits with banks is recognized as income from operations since these deposits are utilized for the business of the company.

9. Zero coupon FCCB were issued on 17th February 2007 for US $ 150 millions (Rs. 661.35 crores at issue).The Bond holders have an option to convert FCCB into Equity shares at an initial conversion price of Rs.575/- per equity share of Rs.2/- each of the company at a fixed exchange rate of conversion at Rs.44.09 equal to US$ 1, between 19.02.2007 to 10.02.2012. The conversion price is subject to adjustment in circumstances as described in the offering letter. The company may redeem the bonds in whole, but not in part, at any time at the accreted principle amount in the event of certain changes relating to taxation in India, and subject to the receipt of regulatory approval. Unless previously converted redeemed or re-purchased and cancelled, the bonds will mature on 21.02.2012 @ 148.22% of their principle amount subject to the receipt of regulatory approval, the company will, at the option of bond holder, redeem any outstanding bonds upon their occurrence of a de-listing of the shares from the NSE or BSE, at the accreted principle amount. During the year, some of the Bond holders have exercised their options to convert FCCB into equity shares and consequent to this 29,444,587 (Previous Year 8,807,085) equity shares of Re 1/- each have been allotted by the Company.

10. Related party disclosures

(In term of Accounting Standard - 18)

A. Relationship:

a) Related parties where control exists: Rajesh Global Solutions Limited Rajesh Jewels

Laabh Jewel Gold Pvt Ltd

b) Directors and their relatives:

Mr. Rajesh Mehta - Executive Chairman

Mr. Prashant Mehta - Managing Director

Mr. Mahesh Mehta

c) Key Management personnel:

Mr. Rajesh Mehta - Executive Chairman

Mr. Prashant Mehta - Managing Director

Mr. Bhavesh Mehta - Executive Officer

11. Accounting Standard 19-Leases:

The company has let out and taken premises under cancelable operating lease agreements, which the company intends to renew in the normal course of its business. The Lessees cannot sublease these properties. Total lease rentals recognized as income in the Profit & Loss Account for the year with respect to above is Rs 6,40,151/- ( Previous Year Rs.7,26,353/-) and total Lease rentals recognized as expenditure is Rs 49,26,749/- (Previous Year Rs 61,63,414/-).

12. Company has identified that there is no material impairment of assets and as such no provision is required as per AS-28 issued by the ICAI.

13. In the opinion of the management, no provision is required against contingent liabilities referred to in Schedule 'S' Para B Point 2.

14. Based on the information/documents available with the Company, the amount due to small-scale industries is nil.

15. Unclaimed dividend accounts are subject to reconciliation.

16. The previous year's figures are regrouped / rearranged wherever deemed necessary.


Mar 31, 2000

1 Estimated amount of contracts remaining to be executed on Capital Accounts net of advances not provided for Rs. NIL( Previous year - Nil)

2. Contingent liabilities not provided for in respect of:

i Bank guarantees - Rs.NIL (Previous Year - NIL)

ii. Letter of credit - Rs. NIL (Previous year Rs. 35,70,55,208)

iii. Allotment money of Rs.25.000/- due on 2500 shares of Merbank Financial Services Limited with interest.

iv. Corporate guarantee given to Bankers on behalf of M/s. Rajesh Jewels Ltd. a 100% subsidiary Rs. 3500 Lacs.

3. Certain balances under the heads debtors, creditors, outstanding liabilities, advances from customers, advances and deposits are subject to confirmation.

4. Directors Remuneration includes Executive chairman and Managing Directors remuneration Rs. 2,39,526/-.

5. Brief particulars of employees who were entitled to receive or were in respect of emoluments aggregating to Rs. 6,00,000/- or more per annum and or Rs. 50,000/-or more per month if employed for part of the year - Nil.

6. The company is registered under chapter IX of the Companies act, 1956 and the the Register of Companies has issued certificate of incorporation and commencement of business on 1st February 1995. Before the registration of the Company, the business was carried on by "M/s, Rajesh Exports" in partnership as joint stock company

7. Investment includes 500170 equity shares of Rs.10/- each fully paid in Rajesh Jewels Ltd , 100% Subsidiary of the company and 4899980 equity shares of Rs. 10/- each fully paid in Rajesh Global Solutions Ltd.

8. FOREIGN CURRENCY TRANSACTIONS

Year end balances of assets & liabilities denominated in foreign currency are translated at the inter-bank rates prevailing in the country at the end of accounting year or nearest date.

9. Interest demand of Rs. 5,71,289/- raised by MMTC Limited is being disputed by the company before the honble high court of Karnataka. Pending decision of the honble high court of Karnataka payment of Rs. 5,71,289/- made is shown under loans and advances.

10. The amount due to small scale industries is Nil.

11. The Interim Dividend declared is on Equity Capital of Rs.198.82 Lakhs.

12. The previous years figures are regrouped / rearranged wherever deemed necessary.

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