Nature of Operations
 
 Blue Bird (India) Limited [The Company] is engaged in the
 manufacturing of Student Books / Exercise Books, Printing and
 Publication of books, trading of paper and Commercial Printing etc. The
 Company is also engaged in construction activity.
 
 1.  Contracts remaining to be executed on capital account and not
 provided for Rs. 196.00 Lacs (Previous Year Rs. 519.00 Lacs)
 
 2.  Contingent Liability not provided for-
 
 a) Bank Guarantees issued by banks on behalf of the Company Rs. 163.15
 Lacs (Previous year Rs.163.15 lacs) for import of Plant & Machinery
 against licenses granted under EPCG Scheme for payment of Customs Duty.
 
 b) Other Bank Guarantees - Rs. 46.90 Lacs (Previous Year Rs.48.10 lacs)
 
 c) Guarantee Bonds issued in favour of the Customs Authorities
 amounting to Rs. 1524.00 lacs (Previous year Rs. 1,524.00 Lacs) for
 fulfillment of export obligations of USD 134.15 Lacs equivalent to
 Rs.6,123.13 Lacs for import of machinery against licenses granted under
 EPCG Scheme. The Company has to fulfill the said export obligation by
 August 06, 2016. The Company has fulfilled export obligations of USD
 106.93 lacs upto March 31, 2010, however, the cancellation of the
 guarantee bonds to that extent is in process.
 
 d) Fines/Penalties for default in payment of statutory dues (Amount not
 ascertainable).
 
 e) Disputed Income Tax demands in respect of earlier years Rs. 22.06
 Lacs (Previous Year Rs.22.06 lacs). The amount has been paid under
 protest against these demands.
 
 3.  Non convertible Debentures were to be redeemed in full latest by
 August 31, 2009. The debentures have not been redeemed.
 
 4.  Material Consumption is net of sale of raw material of Rs. 192.66
 Lacs (Previous Year Nil)
 
 5.  Other liabilities include Rs. 2.01 Lacs (Previous year Rs.2.12
 Lacs) being amounts refundable to unsuccessful! share applicants in the
 public issue and Rs. 3.50 Lacs (previous year Rs. 3.67Lacs) being
 dividend warrants not encashed by shareholders. These amounts are lying
 in separate bank accounts.
 
 6.  The Company, during the year, incurred cash loss. Also it could
 not recover its dues from the customers in time. This has resulted into
 a cash crunch faced by the Company. Consequently, the Company defaulted
 in repayment of interest and principal amounts to its lenders. The
 Company has also received notices under Section 433 and 434 of the
 Companies Act, 1956 from a lender and a few suppliers for non payment
 of their dues. The Company is in negotiations with these parties for
 reschedulement / extension of time. The Company is confident of
 settling the matter amicably.
 
 The Company has submitted a Corporate Debt Restructuring (CDR) proposal
 to CDR cell of Reserve Bank of India, seeking extension of time for
 repayment of its borrowings and interest thereon and certain other
 concessions effective January 31, 2010. In the said proposal, payment
 of all dues has been considered to be made in a phased manner. The
 proposal has been admitted by the CDR cell subject to fulfillment of
 certain conditions. The Company is confident of compliance of all the
 requisite formalities and of getting the proposal approved from CDR
 cell. The viability of CDR proposal is assessed by an independent
 agency appointed by the lead bank of consortium.
 
 In view of the foregoing, the accounts have been prepared on going
 concern basis.
 
 7.  Statement of Related Parties Disclosure
 
 A.  List of Related parties
 
 Associate Companies       N.S. Shares & Investments Private Limited
 
                           Ajinkya Hotelling Private Limited 
 
                           Vastu Housing Finance Corporation Limited 
 
                           Bhoomiputra Infrastructure Private Limited
 
 Key Management Personnel  Nitin Sontakke, Chairman & Managing Director
 
                           Apoorv Sontakke, Director Marketing 
                           ( Exports) Upto
 
                           August 31, 2009
 
                           David Kunder,     Director Finance
 
                           Satish Bhagwat,   Director Technical
 
                           Santosh Dhankude, Director Production
 
 Relatives of Directors    Vidya Sontakke
 
                           Apoorv Sontakke - after September 1, 2009
 
 8.  The Company has not given or taken any asset on financial lease as
 on Balance Sheet date. The Company has taken two manufacturing premises
 and commercial premises under cancelable operating leases. The lease
 agreements are usually renewable by mutual consent on mutually
 agreeable terms. The expenses in respect of operating leases have been
 accounted as Administrative Expenses.
 
 9.  In the opinion of the management, all the Current Assets, Loans
 and Advances are good, recoverable and approximately of the value
 stated, if realized in the ordinary course of the business.
 
 10.  Debtors and Creditors are subject to confirmation, reconciliation
 and consequential adjustments, if any.  During the year, the lead bank
 of the consortium had appointed an independent firm of Chartered
 Accountants to assess the correctness and recoverability of the major
 customers covering substantial part of the dues of the Company. The
 said auditors have submitted their report.
 
 On assessment of debtors, the management is of the opinion that it may
 be able to recover only some partial dues from some of its customers.
 Considering this eventuality, a provision for doubtful debts has been
 made on estimated basis.
 
 11.  Land (Stock in Trade) includes -
 
 (i) Advances paid for purchase of land - Nil ( Previous year Rs.306.03
 lacs) (ii) Right to purchase of land acquired under a memorandum of
 understanding - Nil (Previous Year - Rs. 67.37 )
 
 12.  Disclosure as per AS 15 (As per report received from LIC of India)
 
 The Principal assumption in actuarial valuation of Gratuity (Funded) is
 as under Discount Rate 8.00%
 
 Expected rate of return on assets 7.50%
 
 Expected rate of future salary increase 5.00%
 
 13.  Previous years figures are regrouped / rearranged wherever
 necessary to conform with the current years presentation.