Notes to Accounts of Tahmar Enterprises Ltd.

Mar 31, 2015

Note: 1. Contingent Liabilities:

a) Demands of Statutory Authorities not acknowledged as debts and appealed against by the Company in respect of Excise Duty: Rs.20.26 Lacs (Previous Year: Rs. 20.26 Lacs)

b) Interest Liability which may arise on the Company due to delay in repayment of Sales Tax Deferral Loan – Amount unascertainable(Previous year - Amount unascertainable).

c) Contingent liabilities as may arise on account of non/delayed compliance of certain fiscal statutes - Amount unascertainable (Previous year - Amount unascertainable).

Note: 2. Going Concern:

The accounts of the Company for the year ended on 31st March, 2015 continued to be prepared on a going concern basis, in spite of the erosion of its entire net worth, keeping in view the fact that the management of the Company is actively pursuing various options for commencing its operations/ disposal of the assets. During the current year, the Company has sold certain inventories at a value of Rs. 3.08 Lacs.

The Company has intent to enter into an agreement to sell its factory, land & building at Sinnar together with assets situated therein, for a consideration of up to Rs. 9.00 Crores. The Company has already obtained permission from the shareholders by passing a special resolution through postal ballot on 29th March, 2015. The Company intends to continue with its business activities for a foreseeable future, including, inter alia, trading activities.

Keeping in view the above, the management of the Company has prepared the financial statements on a going concern basis.

Note: 3. Impairment of Assets:

Keeping in view the proposed/ agreed consideration arrived at in respect of the Company's fixed assets, which individually exceed their book values as at the close of the year, the Company is of the opinion that no significant impairment arises in respect of its fixed assets.

Note: 4. Confirmation of Balances

Certain Balances appearing in various accounts under the head Trade Receivables, Loans and Advances, Long Term Borrowings and Current Liabilities as appearing in the accounts are subject to the confirmation from the respective parties and consequential reconciliation, if any. However the Company anticipates no significant variations from its book values as on the Balance Sheet date.

Note: 5. In the opinion of the management, the Current Assets, Loans and Advances are expected to realize at the value stated in the Balance Sheet and adequate provisions have been made for all known liabilities.

Note: 6. Inventory

(a) The inventory as at the close of the year was as taken, valued and certified by a director.

(b) Adequate Provision towards obsolescence of inventory has been considered in the accounts keeping in view the management's opinion that the same is expected to realize at or above the cost in near future.

Note: 7. Segment information:

There is no identifiable segment within the meaning of the Accounting Standard-17, Segment Reporting, since the Company is engaged in a single segment of business (i.e. Manufacture and Sale of Coated Paper). Hence no disclosure as per the said Accounting Standard is required to be given by the Company during the year.

Note 8. Clause 41 of the Listing Agreement

During the year, the Company has continued its non-compliance with the provisions of Clause 41 of the Listing Agreement in respect of quarterly submission of Limited Review Reports to the concerned Stock Exchanges.

Note: 9. Employee Benefits

As there are no eligible employees with the Company during the year no provision towards gratuity and leave encashment has been considered in the accounts.

Note: 10. Micro, Small and Medium Enterprises Development Act, 2006

There were no dues to Micro and Small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act, 2006 during the current year (Previous Year-Nil).The same has been relied upon by the auditors.

Note: 11. Taxation

(a) No provision towards current taxation has been considered in the accounts, in view of available brought forward losses.

(b) The Company has obtained consent from shareholders by passing Special Resolution on 29th March, 2015 to sell factory, Land & Building for a lump sum consideration of Rs.9.00 crores out of which, Rs. 6.65 crores have been realized by the company up to date of preparation of the financial statements. The balance of Rs. 2.35 crores is committed to be received by the Company by 3rd June 2015. The surplus arising out of the above transaction would be recognized in the Company's statement of Profit and Loss in the financial year 2015-16. With the said surplus setting off the brought forward losses of the Company under the Income Tax Act, 1961, the Company is of the opinion that it is justified in recognizing Deferred Tax Assets in the current year, as per the recommendations of the Accounting Standard-22, which prescribes reasonable/virtual certainty in order to recognize the same (Paragraphs 15 and 17 of the said standard). The same was created in the earlier years by the Company to the tune of Rs. 2.69 crores.

Note: 12. Related Party Disclosures

(A) Names of the related parties and nature of relationship which exists:

Name Nature of Relationship

Mr. Manish D. Ladage Additional Director (wef. 22nd December, 2014)

Mrs. Kamini Kamal Johari Additional Director (wef. 22nd December, 2014)

Mr. B. L. Sharma Managing Director (Till 30th January, 2015)

(B) List of Related Parties with whom transactions were carried out during the year

Name Nature of Relationship

Mr. Manish D. Ladage Additional Director

Mrs. Kamini Kamal Johari Additional Director

Mr. Mahesh Makhijani Additional Director

Mr. Krishnamurthy Anantharayanan Additional Director

Mr. B S Rathi Director

Mr. Anand Kumar Poddar Director

Gourishankar Damani Director

Mr. B. L. Sharma Managing Director

M/s. Nobel Hygiene Pvt Ltd Enterprises over which Key Managerial Personnel are able to exercise Significant Influence(with effect from 22.12.2014)

Note : Related party relationships are identified by the Company and relied upon by the auditors.

Note : 13. Company Secretary

During the year, the Company made efforts to appoint a whole-time Company Secretary towards compliance with section 203 of the Companies Act, 2013, but could not find a suitable candidate. The Company is continuing with its efforts to meet the said requirements.

Note : 14. Sales Tax Deferral

As at the Balance Sheet date, the Company is actively pursuing settlement of the Sales tax Deferral loan appearing in its books amounting to Rs. 2.13 crores (including interest)( Previous Year Rs. 2.48 crores) and is of the opinion that an amicable settlement of the aforesaid overdue liability in near future.

Note : 15. Previous year's figures

Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary.

---

Mar 31, 2014

Note 1: Contingent Liabilities:

a) Demands of Statutory Authorities not acknowledged as debts and appealed against by the Company in respect of Excise Duty: Rs.20.26 Lacs (Previous Year: Rs. 40.03 Lacs)

b) Interest Liability which may arise on the Company due to Sales Tax Deferral Loan - Amount unascertainable(Previous year - Nil).

c) Contingent liabilities as may arise on account of non/delayed compliance of certain fiscal statutes - Amount unascertainable (Previous year - Amount unascertainable).

Note 2: Going Concern:

The accounts of the Company for the year ended on 31st March 2014 continued to be prepared on a going concern basis, in spite of the erosion of its Net Worth, keeping in view the fact that the management of the Company is actively pursuing various options for commencing its operations. Also, the financial statements for the current year have not been adjusted for the recoverability and classification of assets and liabilities as a consequence of the inability of the Company to continue as a going concern, in view of the management''s efforts as above. The extent of the financial impact of the resultant adjustment to the assets and liabilities of the Company as at the year end and on the Profit for the year is presently not ascertainable.

Note 3: Impairment of Assets:

The Company is of the opinion that there was no material impairment in its fixed assets during the year under review within the definition of Accounting Standard - 28, Impairment of Assets. However, in the absence of a valuation being carried out in this regard, any impairment in the Company''s assets as at the Balance Sheet date is unascertainable.

Note 4: Certain Balances appearing in various accounts under the head Trade Receivables, Loans and Advances, Long Term Borrowings, Trade Payables, Other Current Liabilities as appearing in the accounts are subject to the confirmation from the respective parties and consequential reconciliation, if any. However the Company anticipates no significant variations from its book values as on the Balance Sheet date.

Note 5: In the opinion of the management, the Current Assets, Loan and Advances are expected to realize at the value stated in the Balance Sheet and adequate provisions have been made for all known liabilities.

(a) The inventory as at the close of the year was as taken, valued and certified by a director.

(b) Inadequate provision towards obsolescence of inventory has been considered in the accounts keeping in view the management''s opinion that the same is realizable at or above the cost in near future.

Note 6: Segment information:

There is no identifiable segment within the meaning of the Accounting Standard-17, Segment Reporting, since the Company is engaged in a single segment of business (i.e. Manufacture and Sale of Coated Paper). Hence no disclosure as per the said Accounting Standard is required to be given by the Company during the year.

Note 7 : Non-compliance of Clause 41 of the Listing Agreement

During the year, the Company has continued its non-compliance with the provisions of Clause 41 of the Listing Agreement in respect of quarterly submission of Limited Review Reports to the concerned Stock Exchanges.

Note 8: As there are no employees for a period exceeding 5 years and hence no provision towards gratuity and leave encashment has been considered in the accounts as per the recommendations of Accounting Standard 15 (Retirement Benefits).

Note 9: Micro, Small and Medium Enterprises Development Act, 2006

There were no dues to Micro and Small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act, 2006 during the current year.(Previous Year - Nil).The same has been relied by the auditors.

Note 10: Taxation

No provision towards Current Taxation has been considered in the accounts, in view of carried Losses incurred by the Company during the year.

Note 11: Related Party Disclosures

(A) Names of the related parties and nature of relationship which exists:

(i) Associates

* Sumadhu Traders Pvt. Ltd.

* Sumadhu Estate Developers Pvt. Ltd.

* Suvimal Properties Pvt. Ltd.

* India Food Company Pvt. Ltd.

* National Tiles & Industries Pvt. Ltd.

* Madhu Construction Pvt. Ltd.

(ii) Subsidiaries: None.

(iii) Key Management Personnel

Shri Pradeep Kumar Sarda - Chairman. (till 29th May, 2013)

Shri B.L.Sharma - Managing Director (from 1st October, 2013)

(iv) Relatives of Key Management Personnel - None

(B) Related Party Transactions:

(Rs. in Lacs) Nature of Transaction Key Management Personnel

Interest-free Unsecured Loan taken by the Company 34.76 (121.06)

Closing Balance (Cr.) 34.76 (121.06)

Note : Related party relationships are identified by the Company and relied upon by the auditors.

Note 12: During the year, the Company made efforts to appoint a whole-time Company Secretary towards compliance with Section 383-A of the Companies Act, 1956, but could not find a suitable candidate. The Company is continuing with its efforts to meet with the said requirements.

Note 13: The Comapany has not paid the installments due for Sales Tax Deferral Loan for the last 7 years which is overdue and hence the same has been classified under the head Current Liabilities.

Note 14: The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

---

Mar 31, 2013

Note 1: Contingent Liabilities:

a) Demands of Statutory Authorities not acknowledged as debts and appealed against by the Company in respect of Excise Duty: Rs.40.03 Lacs (Previous Year: Rs.40,03 Lacs)

b) Interest Liability which may arise on the Company due to Sales Tax Deferral Loan - Amount unascertainable(Previous year - Nil).

c) Contingent liabilities as may arise on account of non/delayed compliance of certain fiscal statutes — Amount unascertainable (Previous year - Amount unascertainable).

Note 2: Going Concern:

During the year, the Company has deregistered from Board for Industrial & Financial Reconstruction (BIFR) and accordingly ceased to be a sick Company tor the reason of its Net Worth turning positive. However the Company has not commenced its operations till the close of the year and is actively pursuing various options in respect of the same. In view of above, the accounts of the Company for the year ended on 31s'' March 2013 continued to be prepared on a going concern basis.

Note 3: Impairment of Assets:

The Company is of 1he opinion that there was no malarial impairment in its fixed assets during the year under review within the definition of Accounting Standard - 28, Impairment of Assets. However, in the absence of a valuation being carried out in this regard, any impairment in the Company''s assets as at the Balance Sheet date is unascertainable,

Note 4: Certain Balances appearing in various accounts under the head Trade Receivables, Loans and Advances, Long Term Borrowings, Trade Payables, Other Current Liabilities as appearing in the accounts are subject to the confirmation from the respective parties and consequential reconciliation, if any. However the Company anticipates no significant variations from its book values as on the Balance Sheet date.

Note 5: In the opinion of the management, the Current Assets, Loan and Advances are expected to realize at the value stated in the Balance Sheet and adequate provisions have been made for all known liabilities.

Note 6: Inventory

a) The inventory as at the close of the year was as taken, valued and certified by a director.

b) During the year, provision for diminution in the book value of inventory created in the earlier years has been written back, since the same is no longer required amounting to Rs. 5.70 Lacs.

Note 7: Fixed Assets

a) During the year, the Company has disposed off substantial portion of Fixed Assets comprising of Plant and machinery for an aggregate consideration of Rs. 90 Lacs leading to an extra ordinary loss of 44.58 Lacs debited to the Statement of Profit & Loss.

b) During the year under review the Company has not provided depreciation on the Plant & Machinery due to closure of Plant on account of suspension of manufacturing operations, aggregating to Rs, 3.31 Lacs. (Previous year 35.10 Lacs)

Note 8: Other Income

interest Income includes Rs 2,363 relating to earlier years Nolte 29: Segment information:

There is no identifiable segment within the meaning of the Accounting Standard-17, Segment Reporting, since the Company is engaged in a single segment of business (i.e. Manufacture and Sale of Coated Paper). Hence no disclosure as per the said Accounting Standard is required to be given by the Company during the year.

Note 9: Related Party Disclosures (A) Names of the related parties and nature of relationship which exists:

(i) Associates

- Sumadhu Traders Pvt. Ltd.

- Sumadhu Estate Developers Pvt. Ltd.

- Suvimal Properties Pvt. Ltd,

- India Food Company Pvt. Ltd.

- National Tiles & Industries Pvt. Ltd.

- Madhu Construction Pvt. Ltd.

(ii) Subsidiaries: None.

(iii) Key Management Personnel

Shri Pradeep Kumar Sarda - Chairman (up to 24.05.2013)

(iv) Relatives of Key Management Personnel - None

Note 10 : Related party relationships are identified by the Company and relied upon by the auditors.

Note 11 : Non-compliance of Clause 41 of the Listing Agreement

During the year, the Company has continued its non-compliance with the provisions of Clause 41 of the Listing Agreement in respect of quarterly submission of Limited Review Reports to the concerned Stock Exchanges.

Note 12: Taxation

No provision towards Current Taxation has been considered in the accounts, keeping in view the Losses incurred by the Company during the year.

Note 13 : Micro, Small and Medium Enterprises Development Act, 2006

There were no dues to Micro and Small enterprises, as defined under the Micro, Small and Medium Enterprises Development Ac1, 2006 during the current year. (Previous Year - Nil).The same has been relied by the auditors.

Note 14 : The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

---

Mar 31, 2012

Note 1: Contingent Liabilities:

Demands of Statutory Authorities not acknowledged as debts and appealed against by the Company in respect of Excise Duty: Rs.30.83 Lacs (Previous Year: Rs.30.83 Lacs)

Note 2: Going Concern:

The accounts of the Company for the year ended 31st March 2012 continued to be prepared on a going concern basis, keeping in view the fact that the management of the Company is actively pursuing rehabilitation scheme with the Board for Industrial & Financial Reconstruction (BIFR) for the proposed merger of Nobel Hygiene Ltd.

The Company is of the view that the proposed merger would be approved in due course and eventually carry out normal manufacturing operations again at its plant. In view of the above, the Company is of the opinion that the Going Concern concept is restored for the current year.

Note 3: Impairment of Assets:

The Company is of the opinion that there was no material impairment in its fixed assets during the year under review within the definition of Accounting Standard - 28, Impairment of Assets. However, in the absence of a valuation being carried out in this regard, any impairment in the Company's assets as at the Balance Sheet date is unascertainable.

Note 4: Segment Information:

There is no identifiable segment within the meaning of the Accounting Standard-17, Segment Reporting, since the Company is engaged in a single segment of business (i.e. Manufacture and Sale of Coated Paper). Hence no disclosure as per the said Accounting, Standard is required to be given by the Company during the year.

Note 5 -.Non-compliance of Clause 41 of the Listing Agreement

During the year/the Company has continued its non-compliance with the provisions of Clause 41 of the Listing Agreement in respect of quarterly submission of Limited Review Reports to the concerned Stock Exchanges.

Note 6: Taxation

No provision towards Current Taxation has been considered in the accounts, keeping in view the Losses incurred by the Company during the year.

Note 7: Micro. Small and Medium Enterprises Development Act. 2006

There were no dues to Micro and Small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act, 2006 during the current year.(Previous Year - Nil).The same has been relied by the auditors.

Note 8 : The Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

---

Mar 31, 2011

1. Contingent Liabilities

Demands of Statutory Authorities not acknowledged as debts and appealed against by the Company in respect of Excise Duty : Rs.30.83 Lacs (Previous Year: Rs.30.83 Lacs).

2. The accounts of the Company for the year ended on 31st March 2011 continued to be prepared on a going concern basis keeping in view the fact that the management of the Company is actively pursuing rehabilitation package with the Board for Industrial & Financial Reconstruction (BIFR). The erosion of entire Net Worth has, however, adversely affected the Going concern concept in respect of the Company. In spite of the above, the financial statements for the current year have not been adjusted for the recoverability and classification of assets and liabilities as a consequence of the inability of the Company to continue as a going concern. The Company is of the opinion that the extent of the effects of the resultant adjustment to the assets and liabilities of the Company as at the year end and on the loss for the year is presently not ascertainable.

3. Inventory as at the Balance Sheet date is as taken, valued and certified by a Director.

4. Provision for diminution in the book value of inventory created in the earlier years has been written back, since the same is no longer required amounting to Rs. 2.20 Lacs, by way of adjustment in the book value of inventories.

5. During the year, the Company has continued with the Leave and Licensing agreement with Nobel Hygiene Pvt. Ltd. in respect of Sinner factory premises with the Security Deposit of Rs.1.70 Crores received in the earlier years.

6. During the year, the Company has disposed off certain portion of Fixed Assets comprising of Plant and machinery, Air conditioners and furniture for an aggregate consideration of Rs.10.69 Lacs.

7. For the year ended 31st March 2011, the Company has provided for liability on account of gratuity and leave encashment on accrual basis, amounting to Rs.0.38 Lacs and Rs.0.18 Lacs respectively considering the limited number of employees remaining in service as at 31.03.2011.

8. The Company is of the opinion that there was no material impairment in its fixed assets during the year under review within the definition of Accounting Standard - 28, Impairment of Assets. However, in the absence of a valuation being carried out in this regard, any impairment in the Company's assets as at the Balance Sheet date is unascertainable (Previous Year - Amount unascertainable).

9. During the current year the Company has not provided depreciation on the Plant and Machinery due to closure of plant on account of discontinuation of manufacturing operations and consequential overstatement of fixed assets and understatement of losses incurred by Rs.35.38 Lacs.

10. The balances of Sundry Debtors, Loans and Advances, and Current Liabilities as appearing in the accounts are subject to the confirmation from the respective parties and consequential reconciliation, if any. However the Company anticipates no significant variations from its book values as on the Balance Sheet date.

11. The Company has received Sales tax refund order for the year 2004-05 amounting to Rs.11.34 Lacs in the accounting year 2009-2010 which has been fully adjusted by the Company against Sales Tax Deferral loan installments due for the year 1997-1998 and 1998-1999 and had been wrongly credited to Profit and Loss Account for the year ended 31st March 2010. Based on the Assessment Order received subsequently, the above effect has been regularised during the current year, by way of reinstating the Sales tax deferral loan to its appropriate balance of Rs.248.00 Lacs as at 31st March 2011

12. There were no dues to Micro and Small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act, 2006 during the current year.

13. There is no identifiable segment within the meaning of the Accounting Standard-17, Segment Reporting, since the Company is engaged in a single segment of business (i.e. Manufacture and Sale of Coated Paper). Hence no disclosure as per the said Accounting Standard is required to be given by the Company during the year.

14. Taxation:

a) No provision towards Current Taxation has been considered in the accounts, keeping in view the Losses incurred by the Company during the year.

15. During the year, the Company has continued its non-compliance with the provisions of Clause 41 of the Listing Agreement in respect of quarterly submission of Limited Review Reports to the concerned Stock Exchanges.

16. Related Partv Disclosures

(A) Names of the related parties and nature of relationship which exists:

(i) Associates

- Sumadhu Traders Pvt. Ltd.

- Sumadhu Estate Developers Pvt. Ltd.

- Suvimal Properties Pvt. Ltd.

- India Food Company Pvt. Ltd.

- National Tiles & Industries Pvt. Ltd.

- Madhu Construction Pvt. Ltd.

(ii) Subsidiaries: None.

(iii) Key Management Personnel

Shri Pradeep Kumar Sarda - Chairman.

(iv) Relatives of Key Management Personnel - None

17. Additional information pursuant to the provisions of paragraphs 3, 4C and 4D pf Part II of Schedule VI to the Companies Act, 1956:

18. Balance Sheet Abstract and Company's General Business Profile:

V, Generic names of the three principle product / services of the Company (as per monetsry terms)

Item Code No. (ITC Code) 48119002

Product Description Chromo And Art Paper Coated

Item Code No. (ITCCode) 48118019

Product Description Coated Black Centre Art Card and Coated / Laminated end Coated / Laminated Satin Art Card Paper

---

Mar 31, 2010

1.Contingent Liabilities

a) Demands of Statuftory Authorities not acknowledged as debts and appealed against by the Company in reaped of Excise Duty : Rs.30.83 Lacs (Previous Year: Rs.30.83 Lacs)

b) Demands of Income Tax Authorities appealed against by the Company: Amount unascertained (Previous Year -Amount unascertained).

c) Interest on Working Capital Term Loan for the period from 01st August, 2009 to 31st March, 2010 - Re. 22.37 Lacs.

2. The accounts of the Company for the year ended on 31* March 2010 continued to be prepared on a going concern basis keeping in view the fact that the management of the Company to actively pursuing rehabilitation package with the Board for Industrial & Financial Reconstruction (BIFR). The erosion of entire Net Worth has, however, adversely affected the Going concern concept in respect of the Company. In spite of the above, the financial statements for the current year have not been adjusted for the recoverability and classification of assets and liabilities as a consequence of the inability of the Company to continue as a going concern. The Company is of the opinion that the extent of the effects of the resultant adjustment to the assets and liabilities of the Company as at the year end and on the Loss for the year is presently not ascertainable.

3. The Company has discontinued its manufacturing operations of Chromo and Art Paper on 14* June 2009 due to continuous financial losses and adverse market conditions prevalent in the Paper Industry. The Company is presently pursuing a rehabilitation plan under the provisions of the Board for Industrial & Financial Reconstruction (BIFR), which is in process. The Company does not anticipate any significant liability due to the above closure in the Companys accounts.

4. The Company has taken Working Capital Term Loan from the State Bank of India. Even though the Company has not made any payment of installments from April 2009 till the close of the current year, it has accounted for the interest due on the said loan amounting to Rs. 10.90 Lacs for the period from April to Jury 2009. The bank has, however, considered interest only till 31" July 2009. The Company has filed an application with the BIFR for rehabilitation whose decision is pending as regards the interest payable by the Company on the aforesaid loan.

5. Inventory as at the Balance Sheet date is as taken, valued and certified by a Director.

6. Diminution in the book value of inventory has been provided for in the books, as considered appropriate by the management, aggregating to Rs.11.58 Lacs (Previous year - Nil).

7. The Company has entered into Leave and Licensing agreement with Nobel Hygienic Pvt. Ltd for use and to carry out their manufacturing activities a portion of Sinner factory premises w.e.f 07th November, 2009 at a monthly rent of Rs.50,000 and also accepted Security Deposit of Rs.1.70 Crores.

8. During the year, the Company has disposed off certain portion of Fixed Assets comprising of Plant and machinery, computers, and furniture for an amount of Rs.19.56 Lacs, since the same have become obsolete and damaged.

9. For the year ended 31* March 2010, the Company has provided for liability on account of gratuity and leave encashment on accrual basis, amounting to Rs. 0.84 Lacs and Rs. 0.10 Lacs respectively considering the limited number of employees remaining in service as at 31.03.2010. Keeping in view the fact that all the employees of the Company were transferred to another body corporate on 01st October 2009, the Company has written back the balance in Provision for Gratuity and Leave Encashment to the extent of Rs. 5.38 Lacs and Rs. 1.90 Lacs respectively as no longer required.

10. The Company is of the opinion that there was no material impairment in its fixed assets during the year under review within the definition of Accounting Standard - 28, Impairment of Assets, issued by the Institute of Chartered Accountants of India. However, in the absence of a valuation being carried out in this regard, any impairment in the Companys assets as at the Balance Sheet date is unascertainable. (Previous Year - Amount unascertained).

11. The balances of Sundry Debtors, Loans and Advances, and Current Liabilities as appearing in the accounts are subject to the confirmation from the respective parties and consequential reconciliation, if any. However the Company anticipates no significant variations from its book values as on the Balance Sheet date.

12. Excise duty in respect of goods manufactured by the Company is accounted at the time of removal of goods from the factory. The excise duty liability as at 31st March, 2010 on the finished goods lying in the factory is estimated at Rs. 0.058 Lacs (Previous year Rs.2.08 Lacs). This accounting practice, which is consistently followed every year, however, has no impact on the Profit for the year and/ or on the closing value of finished goods.

13. The Company has initiated a process of identifying enterprises which have provided goods and services to the Company and which qualify under the definition of Micro and Small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act, 2006 and circularized the letters for this purpose. However, the Company has not received any significant feedback in this regard till the close of the current period. The Company is of the opinion that the impact of interest, if any, that may be payable in accordance with the provisions of the aforesaid Act is not expected to be material. The same has been relied upon by the Auditors.

14. There is no identifiable segment within the meaning of the Accounting Standard-17, "Segment Reporting" issued by the Institute of Chattered Accountants of India since the Company Is engaged in a single segment of business (i.e. Manufacture and Sale of Coated Paper). Hence no disclosure as per the said Accounting Standard is required to be given by the Company during the year.

15. Taxation;

a) No provision towards Current Taxation has been considered in the accounts, keeping in view the Losses incurred by the Company during the year.

Tax rate considered for the above purpose is 30.90% (Previous year: 33.99%)

The Companys brought forward losses under the Income Tax Act, 1961, as on 1st April 2009 stand at Rs.899.15Lacs (Previous year. Rs. 826.75 Lacs). On the aforesaid amount, the Company has decided to consider Deferred Tax Asset amounting to Rs. 277.84 Lacs (Previous year: Rs. 241.16 Lacs).

The Net Deferred Tax Assets amounting to Rs. 220.80 Lacs (Previous year - 174.60 Lacs) was provided for in the accounts, thereby overstating the profit for the year and creation of Deferred Tax Asset to the extent of Rs. 220.80 Lacs, in material departure from the recommendations of Accounting Standard - 22 issued by the Institute of Chartered Accountants of India.

16. During the year, the Company has continued its non-compliance with the provisions of Clause 41 of the Listing Agreement in respect of quarterly submission of Limited Review Reports to the concerned Stock Exchanges.

17. Related Party Disclosures

(A) Names of the related parties and nature of relationship which exists:

(i) Associates

- Sumadhu Traders Pvt. Ltd.

- Sumadhu Estate Developers Pvt. Ltd.

- Suvimal Properties Pvt. Ltd.

- India Food Company Pvt. Ltd.

- National Tiles & industries Pvt. Ltd.

- Madhu Construction Pvt. Ltd.

(ii) Subsidiaries: None.

(iii) Key Management Personnel

Shri Pradeep Kumar Sarda - Chairman.

(iv) Relatives of Key Management Personnel - None

Note: Related Party relationships are derived by the Company and relied upon by the Auditors.

18. Additional information pursuant to the provisions of paragraphs 3, AC and 4D of Part II of Schedule VI to the Companies Act, 1956:

19. Previous years figures are regrouped /rearranged wherever considered necessary.

V. Generic names of the three principle product / services of the Company (as per monetary terms)

Item Code No. (ITC Code) 48119002

Product Description Chromo And Art Paper Coated

Item Code No. (ITC Code) 48119019

Product Description Coated Black Centre Art Card and Coated / Laminated and Coated / Laminated Satin Art Card Paper