Aries Agro

1.  Current Assets, Loans & Advances and Provisions
 
 a) The current assets and loans and advances are approximately of the
 value stated, if realized in the ordinary course of business.
 
 b) The provision for all known liabilities is not in excess of the
 amounts reasonably necessary.
 
 c) The balances of Sundry Creditors, Sundry Debtors and Loans and
 Advances are subject to confirmation.
 
 2.  Gratuity
 
 Indian Operations:
 
 The Company has opted for Life Insurance Corporation of India’s Group
 Gratuity Scheme for its employees. The scheme offered by the Life
 Insurance Corporation of India permits the Company for payment of
 arrears in five yearly installments commencing from 1st December, 2005.
 The total contribution payable including arrears as per Life Insurance
 Corporation of India as on 31/03/08 is Rs.  1,88,18,153/-. During the
 year the Company has paid Rs. 27,01,666/- (Previous year Rs.
 30,00,000/-) towards Gratuity fund. The unprovided liability as on
 31/03/2008 is Rs. 1,32,67,121/- (Previous year Rs.  89,24,200/-).
 
 UAE Operations:
 
 The liability to employees is fully provided for in the accounts.
 
 3.  Leave Encashment
 
 As per the policy of the Company, employees are required to avail their
 annual leave by the end of the respective financial year and leave is
 not allowed to be encashed.
 
 4.  Contingent Liability not provided for in the accounts
 
 a) Letters of Credit / Guarantee Rs. 259.47 Lakhs
 
 b) Claims Against Company not acknowledged as debts Rs. 6.35 Lakhs
 which includes tax dues disputed as Rs. 3.43 Lakhs Towards Sales Tax
 
 c) The Commissioner of Central Excise, Mumbai-II has filed an appeal to
 CESAT, Mumbai about the classification of the products of Company.
 Earlier, the Commissioner of Central Excise - Mumbai-II has passed an
 order dated 27th November 2006 holding that the products in question
 were not liable to Central Excise and had dropped the demand of Rs.
 8.02 Crores for the period June 1998 to June 2006. In view of legal
 opinion received by the Company, no provision is considered necessary
 in this regard.
 
 d) Estimated amount of Contracts remaining to be executed on capital
 account and not provided for (Net of Advances) is Rs. 1376.41 Lakhs.
 
 5.  Income Tax
 
 The current charge for income tax is calculated in accordance with the
 relevant tax regulations applicable to the Company. Deferred Tax Assets
 and Liabilities are recognized for the future tax consequences
 attributable to timing differences that result between the profit
 offered for Income Tax and profit as per financial statements.
 
 Deferred Tax assets and liabilities are measured using tax rates and
 tax laws that have been enacted or substantively enacted on the balance
 sheet date.
 
 6.  Segmental Reporting as per Accounting Standard  17
 
 The Company has only One Reportable Segment in terms Accounting
 Standard  17 issued by ICAI.
 
 7.  Related Party Disclosure as Per Accounting Standard  18 issued by
 The Institute of Chartered Accountants of India.