Notes to Accounts of Ritesh International Ltd.

Mar 31, 2015

1. Debit and credit balances are subject to confirmation and reconciliation, if any.

2. As the Company's business activities fall within a single primary business segment, the disclosure requirements of Accounting Standards (AS)-17 on "Segment Reporting", issued by The Institute of Chartered Accountants of India are not applicable. However the Company has made sales of Rs.160.87 Lacs (Previous Year Rs.107.56 Lacs) of Knitwear Division which is shown under Other Operating Income.

3. There was a search by the Central Excise and Taxation Department on 26.09.2002 at the premises of the Company and the books of accounts and other related documents (including excise records) have been seized. The excise department has issued a show cause notice dated 29.03.2005 to the company for the raising of demand of Rs.6,62,19,886/- . The company has filed the appeal with the Customs, Excise & Service Tax Appellate Tribunal, New Delhi, who had stayed the recovery proceeding till the disposal of appeals. So, no provision has been made in the books since the demand raised, as the management is of opinion that the same will be accounted for in the year of payment.

4. In the opinion of the Board, all the Current Assets, Loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated except as expressly stated otherwise.

5. Legal & Professional Charges include payment to Auditor's as under :

6. The Company is taking the inventories as on 31.03.2015 & 31.03.2014 of its knitwear division on the basis of physical stock taking, as the knitwear division of the company is not maintaining the proper stock registers.

7. Related Parties Disclosure

A) Related parties where control exists or with whom transactions have taken place during the year.

ASSOCIATED/ALLIED COMPANIES

* Ritesh Properties & Industries Limited*

* Kishan Chand & Co. Oil Industries Limited.

* Kamal Oil & Allied Industries (P) Limited

* Up to 25.07.2013

OTHERS

* Anita Arora Wife of Mg. Director

* Anita Arora Maximum Prop.- Wife of Managing Director Discount Medical Retail Store

KEY MANAGERIAL PERSONNEL (KMP) REPRESENTED ON THE BOARD

* Sh. Rajiv Arora Chairman cum Mg. Director

* Sh. Ritesh Arora Executive Director

B) Particular of Related Party Transactions

The following is a summary of significant related party transaction:

8. Expenditure in Foreign Currency on Traveling - NIL (Previous Year-Rs. 168840/-)

9. Consequent to the enactment of the Companies Act, 2013 (the act) and its applicability for the accounting periods after April 1st, 2014, the company has computed depreciation with reference to the estimated economic lives of the fixed assets prescribed by the schedule II to the Act. For assets whose life is over, the carrying value, net of residual value, aggregating to Rs. 2.30 lacs as at April 1st, 2014 has been adjusted through the retained earnings and in other assets the carrying value as at April 1st, 2014 has been depreciated over the remaining of the revised useful life of the assets and recognized in the above financial results. As a result charge of depreciation is lower Rs. 5.58 Lacs for the year ended March 31st, 2015 and the net profit from activities before tax is higher by the same amount.

10. Corresponding figures of the previous year have been regrouped/ rearranged wherever deemed necessary.

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Mar 31, 2014

1. Debit and credit balances are subject to confirmation and reconciliation, if any.

2. As the Company''s business activities fall within a single primary business segment the disclosure requirements of Accounting Standards (AS)-17 on "Segment Reporting", issued by The Institute of Chartered Accountants of India are not applicable. However the Company has made sales of Rs.200.98 Lacs (Previous Year Rs.107.56 Lacs) of Knitwear Division which is shown under Other Operating Income.

3. There was a search by the Central Excise and Taxation Department on 26.09.2002 at the premises of the Company and the books of accounts and other related documents (including excise records) have been seized. The excise department has issued a show cause notice dated 29.03.2005 to the company for the raising of demand of Rs.6,62,19,886/- . The company has filed the appeal with the Customs, Excise & Service Tax Appellate Tribunal, New Delhi, who had stayed the recovery proceeding till the disposal of appeals. So, no provision has been made in the books since the demand raised, as the management is of opinion that the same will be accounted for in the year of payment.

4. In the opinion of the Board, all the Current Assets, Loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated except as expressly stated otherwise.

5. The Company is taking the inventories as on 31.03.2014 & 31.03.2013 of its knitwear division on the basis of physical stock taking, as the knitwear division of the company is not maintaining the proper stock registers.

6. Related Parties Disclosure

A) Related parties where control exists or with whom transactions have taken place during the year.

7. The company is not complying with the provisions of section 383 A of the Companies Act, 1956 regarding the appointment of Company Secretary.

8. Expenditure in Foreign Currency on Traveling - Rs.1,68,840/- (Previous Year Nil)

9. Corresponding figures of the previous year have been regrouped/ rearranged wherever deemed necessary.

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Mar 31, 2013

1. Debit and credit balances are subject to confirmation and reconciliation, if any.

2. As the Company''s business activities fall within a single primary business segment, the disclosure requirements of Accounting Standards (AS)-17 on "Segment Reporting", issued by The Institute of Chartered Accountants of India are not applicable. However the Company has made sales of Rs. 107.56 Lacs (Previous Year Rs.108.67 Lacs) of Knitwear Division which is shown under Other Operating Income.

3. There was a search by the Central Excise and Taxation Department on 26.09.2002 at the premises of the Company and the books of accounts and other related documents (including excise records) have been seized. The excise department has issued a show cause notice dated 29.03.2005 to the company for the raising of demand of Rs.6,62,19,886/-. The company has filed the appeal with the Customs, Excise & Service Tax Appellate Tribunal, New Delhi, who had stayed the recovery proceeding till the disposal of appeals. So, no provision has been made in the books since the demand raised, as the management is of opinion that the same will be accounted for in the year of payment.

4. In the opinion of the Board, all the Current Assets, Loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated except as expressly stated otherwise.

5. Legal & Professional Charges include payment to Auditor''s asunder:

6. The Company is taking the inventories as on 31.03.2013 & 31.03.2012 of its knitwear division on the basis of physical stock taking, as the knitwear division of the company is not maintaining the proper stock registers.

7. Related Parties Disclosure

A) Related parties where control exists or with whom transactions have taken place during the year.

ASSOCIATED/ALLIED COMPANIES

- Ritesh Properties & Industries Limited

- Kishan Chand & Co. Oil Industries Limited.

- Kamal Oil & Allied Industries (P) Limited OTHERS

- Harnam Dass Pran Nath Owned By Ex-Chairman*

- B B Jindal Director*

- Anita Arora Wife of Chairman-Cum-

Managing Director

- Anita Arora Maximum Prop.- Wife of Chairman- Discount Medical Cum-Managing Director Retail Store

* Up to 09.10.2011

#Upto31.07.2011 KEY MANAGERIAL PERSONNEL (KMP) REPRESENTED ON THE BOARD

- Sh. Pran Arora Ex-Chairman*

- Sh. Rajiv Arora Chairman cum

Mg. Director

- Sh. Ritesh Arora Executive Director *Upto 09.10.2011

B) Particulars of Related Party Transactions

The following fs a summary of significant related party transactions.

8. The company is not complying with the provisions of section 383 A of the Companies Act, 1956 regarding the appointment of Company Secretary.

9. Expenditure in Foreign Currency on Traveling - Rs.NIL (Previous Year Rs. 22525.00)

10. Corresponding figures of the previous year have been regrouped/ rearranged wherever deemed necessary.

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Mar 31, 2012

1. Debit and credit balances are subject to confirmation and reconciliation, if any.

2. As the Company's business activities falls within a single primary business segment, the disclosure requirements of Accounting Standards (AS)-17 on "Segment Reporting", issued by The Institute of Chartered Accountants of India are not applicable. However the Company has made sales of Rs.108.67 Lacs (Previous Year Rs.55.44 Lacs) of Knitwear Division which is shown under Other Operating Income.

3. There was a search by the Central Excise and Taxation Department on 26.09.2002 at the premises of the Company and the books of accounts and other related documents (including excise records) have been seized. The excise department has issued a show cause notice dated 29.03.2005 to the company for the raising of demand of Rs.6,62,19,886/-. The company has filed the appeal with the Customs, Excise & Service Tax Appellate Tribunal, New Delhi, who had stayed the recovery proceeding till the disposal of appeals. So, no provision has been made in the books for the demand raised, as the management is of opinion that the same will be accounted for in the year of payment.

4. In the opinion of the Board, all the Current Assets. Loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated except as expressly stated otherwise.

5. The Company is taking the inventories as on

31.03.2012 of its knitwear division on the basis of physical stock taking as the knitwear division of the company is not maintaining the proper stock registers.

6. Related Parties Disclosure

A) Related parties where control exists or with whom transactions have taken place during the year.

ASSOCIATED/ALLIED COMPANIES

- Ritesh Properties & Industries Limited

- Kishan Chand & Co. Oil Industries Limited.

OTHERS

- Harnam Dass Pran Nath Owned By Ex-Chairman *

- BBJindal Director#

- AnitaArora Wifeof Mg. Director

- AnitaArora Maximun Prop.-Wifeof Mg.

Discount Medical Director

Retail Store #Upto 31.07.2011 *Upto 09.10.2011

KEY MANAGERIAL PERSONNEL REPRESENTED ON THE BOARD

- Sh. Pran Arora Ex-Chairman*

- Sh. Rajiv Arora Chairman cum

- Mg. Director

- Sh. Ritesh Arora Executive Director

* Up to 09.10.2011

B) Particulars of Related Party Transactions

The following is a summary of significant related party transactions.

7. The company is not complying with the provisions of section 383 A of the Companies Act, 1956 regarding the appointment of Company secretary.

8. Expenditure in Foreign Currency on Traveling - Rs. 22525.00 (Previous Year Rs.25680.00)

9. Till the year ended 31.03.2011, the company was using pre-revised Schedule VI to the Companies Act, 1956 for the preparation and presentation of its financial statements. During the year ended

31.03.2012, the revised Schedule VI notified under Companies Act, 1956, has become applicable to Company. The company has reclassified previous year figures to confirm to this year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed by preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance Sheet.

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Mar 31, 2010

1. Contingent Liabilities Nil (Previous Year Nil)

2. Debit and credit balances are subject to confirmation and reconciliation, if any.

3. As the Companys business activities falls within a single primary business segment, the disclosure requirements of Accounting Standards (AS)-17 on "Segment Reporting", issued by The Institute of Chartered Accountants of India are not applicable.

4. The Earning per Share (EPS) in accordance with Accounting Standards(AS)-20 on "Earning per Share" issued by The Institute of Chartered Accountants of India is as under:

5. There was a search by the Central Excise and Taxation Department on 26.09.2002 at the premises of the Company and the books of accounts and other related documents (including excise records) have been seized. The excise department has issued a show cause notice dated 29.03.2005 to the company for the raising of demand of Rs. 6, 62,19,886/-. The company has filed the appeal with the Customs, Excise & Service Tax Appellate Tribunal, New Delhi, who had stayed the recovery proceeding till the disposal of appeals. So, no provision has been made in the books for the demand raised, as the management is of opinion that the same will be accounted for in the year of payment.

6. In the opinion of the Board, all the Current Assets, Loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated except as expressly stated otherwise.

7. Related Parties Disclosure

A) Related parties where control exists or with whom transactions have taken place during the year.

ASSOCIATED/ALLIED COMPANIES

- Ritesh Industries Limited

- Kishan Chand & Co. Oil Industries Limited.

OTHERS

- Harnam Dass Pran Nath Owned By Chairman

- B.B. Jindal Director

- Anita Arora Maximum Prop - Wife of Mg. Director

Discount Medical Retail Store

KEY MANAGERIAL PERSONNEL REPRES- ENTED ON THE BOARD

- Sh. Pran Arora Chairman

- Sh. Rajiv Arora Mg. Director

- Sh. Ritesh Arora Executive Director

8. The company has not received information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act has not been given.

9. The company is not complying with the provisions of section 383 A of the Companies Act, 1956 regarding the appointment of Company Secretary.

10. Previous year figures have been regrouped/ rearranged, wherever necessary to make them comparable with the Current year.

11. Additional information as required under Para 3 & 4 of Part II of Schedule VI of the Companies Act, 1956.

a) The Installed Capacities have been taken as certified by the Management and not verified by the Auditors being technical in nature.

b) Production includes goods produced and used for paptive consumption.