The Company is engaged in the manufacturing Calcium Carbonate. It is used as input material in various industrial sectors including Tooth Paste, Pharmaceuticals, PVC products, Rubber, Plastic, Polymer, Cable, Leather, Paper and Paints.

2. Foot Note:

*Includes Rs. Nil (P.Y. Rs. 2,098 thousand) from Development Credit Bank Ltd. ( DCB ) secured by way of first charge on pari passu basis on the Company's immovable properties and movable Plant & Machineries both present & future situated at Roha & Paonta factory and upto Rs.1,48,200 thousand including term loan and demand loans was guaranteed by two Directors of the Company. After loan balance have been settled under OTS, the charge amounting to Rs. 2500 thousand is cancelled from 30th July, 2013 vide MCA Memorandum dated 19th August 2013.

*Includes Rs. Nil (P.Y. Rs. 60,000 thousand) from Axis Bank Ltd secured by way of first charge on pari passu basis on the Company's immovable properties and movable Plant & Machineries both present & future situated at Roha & Paonta factory and upto Rs. 60,000 thousand was guaranteed by one Director of the Company and one Ex-Director of the Company.

** Rs.253 thousand (P.Y. Rs. 2,298 thousand) from Pegasus Assets Reconstructions P Ltd Secured by Equitable Mortgage of Company Office Premises at New Delhi and upto Rs. 13,500 thousand is guaranteed by one Ex-Director of the Company .

                                                  As at          As at
                                            31st March,    31st March,
                                                   2014           2013
3. Contingent Liabilities                        Rupees         Rupees

Disputed Income Tax Demand                   11,411,770      8,896,000

Disputed Sales Tax Demand                     9,134,000      9,134,000

Disputed Profession Tax Demand                  872,555              -

Total                                       153,637,885    137,556,660

4. The company is engaged in manufacturing of Calcium Carbonate which is considered the only repc business segment, as per Accounting Standard 17 -'Segment Reporting'; hence segment reporting is not

5. Defined Benefit Plans

The Employee's Gratuity Fund Scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and relevant factors including supply and demand in the employment market. The above information is certified by the Actuary.

6. The Company had received the demand notices for A.Y. 2006-07 from the Income Tax authorities for Income tax and fringe benefit tax inclusive of interest for Rs. 52,73,000/- and Rs. 4,54,000/- respectively. Company had Rs. 4,57,000/- net provisions standing in the books against the Mat Liability for AY 2006- 07. Company has filed rectification application to Income Tax Department for non allowance of carry forward losses as it was allowed to the Company vide ITAT order dated 21.11.08 i.r.o. AY 2002-03. Considering the above, the Management is of the opinion that no further provision need to be made in these respect.

7. The balance due to / from parties are subject to confirmation.

8. No provision for Income tax under MAT, for the current year is made as the Company is registered with BIFR as a sick Company.

9. The Company is registered as a sick Industrial Company with the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). As directed by BIFR, Bank of Baroda, the Operating Agency (O.A.) to submit fully tied up Draft Rehabilitation Scheme (DRS) to BIFR.

10. The company continues to disclose its results on the concept of going concern in spite of the fact of erosion of 100% of its net worth. The Company relies on the possible outcome of the BIFR application and one time settlement reached with lender banks/financial institutions and creditors.

11. In terms of One Time Settlement with DCB Bank Ltd. and Axis Bank Ltd. a sum of Rs. 1,62,25,298/- and Rs.2,55,33,528/- respectively representing the principal amount of Term Loan/Cash Credit has been waived off. The said amounts have been transferred to General Reserve.

12. On the basis of 'No Dues' letter dated 18th March, 2014 of Axis Bank Ltd. an amount of Rs. 3,40,46,472/- has been recognised in the year under audit as long term borrowings being amount paid by Dr. Akabar Virani to Axis Bank Ltd. till March 2012 towards repayment of loan on behalf of the Company. During the year the Company has accepted deposits amounting to Rs. 6,37,88,477/- (including above amount) in violation of section 58A of Companies Act, 1956.

13. In the opinion of Board of Directors all assets other than non-current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated and the provisions for all known liabilities are adequate and not in excess of the amounts reasonably necessary.

14. No personal expenses have been debited to Profit and Loss Account except those payable under contractual obligation or normal business practices.

15. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.