1.  (a) Previous year figures have been reworked, rearranged, regrouped
 and reclassified, wherever considered necessary, 
 
 (b) Figures have been rounded off to the nearest Rupees.
 
 2.  In the opinion of the Board of Directors, Current Assets, Loans &
 Advances have a value of realization in the ordinary course of business
 at least equal to the amount at which they have been stated in the
 Balance Sheet.  The provisions for all known liabilities are adequate
 and not in excess of amount considered reasonably necessary.
 
 3.  Miscellaneous Expenditure to the extent not written off or adjusted
 Rs.2,98,90,903/- (Previous year Rs.  4,91,080/-) represent development
 expenditure incurred on raising equity share capital by way of public
 issue, Forest produce development etc.
 
 4.  Managerial Remuneration for Managing Director and Whole Time
 Directors include:
 
                                  Current Year (Rs.) Previous Year (Rs.)
 
 Salaries & Allowances                 30,96,000/-      29,25,600/-
 
 Perquisites                            1,62,050/-       1,90,000/-
 
                                       32,58,050/-      31,15,600/-
 
 Computation of Net Profit in accordance with section 309(5) of the
 Companies Act, 1956 is not given, as the Company has not paid any
 commission to any of its Directors.
 
 5.  Contingent Liabilities as on March 31,2007 in respect of: (i)
 Claims against the company not acknowledged as debts Rs. Nil (Previous
 Year Rs. Nil), (ii) Outstanding Bank Guarantee for Rs. 3,30,000 towards
 U.RP.C.B (Previous Year Nil), (iii) Estimated amount of contracts
 remaining to be executed on capital account and not provided for Rs.
 Nil (Previous Year Rs. Nil), (iv) Outstanding corporate guarantee of Rs
 26,03,67,7427- (Previous year Rs. 29,61,00,9687-) extended to Bank of
 Baroda (BOB) for securing financial assistance availed by Gulshan
 Polyols Ltd (GPL-a group company), and (v) Outstanding corporate
 guarantee of Rs.  3,46,20,1007- (Previous year Rs. 10,89,00,0007-)
 extended to Bank of Baroda (BOB) for securing financial assistance
 availed by Gulshan Chemfill Ltd (GCL-a group company).
 
 6.  The Term Loan from Industrial Development Bank of India Ltd (IDBI)
 Rs. 14,30,00,0007- (Previous Year Rs.  8,45,00,0007-) is secured by way
 of first charge over the immovable and movable assets of the company
 located at 9th KM., Jansath Road, Muzaffarnagar (UP). This loan is also
 secured by the personal guarantees of the Promoter Directors of the
 company. The aforesaid loan is also secured by the Corporate Guarantee
 of M/s. Gulshan Holdings Pvt. Ltd. Interest accrued and due was Rs.
 Nil.
 
 The IDBI also have a floating charge on the remainder assets of the
 Company, the floating charge is, however, subject to the prior charge
 of the Companys Bankers against borrowing for Working Capital.
 
 7.  The loan from M/s. ICICI Ltd Rs. 2,28,2057- (Previous Year Rs.
 5,42,3497-) is secured against Vehicles financed by them under Hire
 Purchase Agreement. Interest accrued and due was Rs. Nil.
 
 8.  The loan from M/s. HDFC Bank Ltd Rs. 13,64,030/- (Previous Year Rs.
 Nil) is secured against Vehicles financed by them under Hire Purchase
 Agreement. Interest accrued and due was Rs. Nil.
 
 9.  The loan from Gulshan Mercantile Urban Co-operative Bank Ltd.
 (GMUCB) Rs. 2,11,7207- (Previous Year Rs. 4,67,5467-) is secured
 against Vehicles financed by them under Hire Purchase and is personally
 guaranteed by the Managing Director. Interest accrued and due was Rs.
 Nil.
 
 10.  The loan from Life Insurance Corporation of India (LIC) Rs.
 66,20,250/- (Previous year Rs,. 66,20,2507-) is secured by pledge of
 key men insurance policy taken by the company. Interest accrued and due
 was Rs. Nil.
 
 11.  Working Capital Loan Rs. 6,91,71,760/- from Bank of Baroda (BOB)
 (Previous Year Rs. 7,65,66,5837-) is secured by Hypothecation of
 present &future stocks of Raw Materials, Stores, Stock-in-process,
 Chemicals & Consumables, Fuels, Packing Material, Finished Goods etc.
 and Book Debts of the company. The loan is further secured by way of a
 Second Charge on the Fixed Assets of the company, personal guarantees
 of the Promoter Directors of the company. The aforesaid loan is also
 secured by the Corporate Guarantee of M/s.  Gulshan Holdings Pvt. Ltd.
 Interest accrued and due was Rs. Nil.
 
 12.  The amount owed to Small Scale Industries outstanding exceeding a
 sum of Rs. 1 lakh each formore than SO days as at 31 st March, 2007 was
 Rs. Nil/- (Previous Year- Rs. 1,14,796/- to M/s Shri Satguru Minerals).
 
 13.  Dr. C.K.Jain, Managing Director is the Chairman of Gulshan
 Mercantile Urban Co-operative Bank Ltd. (a Non-Scheduled Bank) in which
 company has maintained current accounts (maximum balance outstanding
 during the year Rs. 13,09,176/-) (Previous year Rs. 32,62,525/-). The
 company has also invested a sum of Rs. 4,77,8257- (Previous year Rs.
 4,77,8257-) in the equity shares of GMUCB and borrowed funds for Hire
 purchase asset as per note above.
 
 14.  In compliance to the Accounting Standard-22 on Accounting
 forTaxes on Income issued by the Institute of Chartered Accountants of
 India (ICAI), an amount of Rs. 27,22,9427- has been provided as
 deferred tax liability for the year (PreviousYear Rs. 20,16,291 /- as
 deferred tax credit) as on 31.03.2007 and the same has been recorded in
 the Profit & Loss Account. The Deferred Tax Liability has been
 calculated by applying tax rate applicable as on the Balance Sheet
 date. No Liability has been computed in respect of differences
 considered to be of permanent nature.
 
 15.  Related Party transactions as per Accounting Standard 18 issued by
 ICAI:
 
 (a) Name of related party and nature of related party relationship
 where control exist:
 
 (i) Holding Company : Nil
 
 (ii) Subsidiary Company : Nil
 
 (b) Name of related party and nature of related party relationship
 other than those referred to in (a) above in transaction with the
 company:
 
 (i) Joint Ventures etc : Nil
 
 (ii) Key Management Personnel (KMP) : 
 
 Dr. C.K.Jain, Managing Director,
 
 Mrs. Mridula Jain,
 
 Mr. A. K. Maneshwari, Whole Time Director,
 
 Mr. A. K. Vats, Whole Time Director
 
 There were no transactions during the year except the rent paid by the
 company to Dr. C.K.Jain, Managing Director.
 
 (iii) Corporate entities over which Board of Directors or the key
 management personnel are able to exercise significant influence:
 Gulshan Polyols Ltd. Gulshan Chemfill Ltd. Gulshan Industries Ltd.,
 Gulshan Agro Foods Ltd., Gulshan Capital Ltd., Gulshan Lamee Pack Pvt.
 Ltd., Selfridge Automobile Leasing & Industries Ltd., Gulshan Holdings
 Pvt. Ltd. and Gulshan Impex Pvt Ltd
 
 (iv) Un-incorporated entities over which key management personnel are
 able to exercise significant influence: C.E. Foundation & G.R.
 Charitable Trust.
 
 (c) Transactions with related parties for the period 01 -04-2006 to 
 31-03-2007:                                          (Amount in Rs.)
 Particulars                     Corporate KMP& Unincorporated 0/S as on
                                 Associates relatives Entities 31-03-2007
 
 Loans Received                 2,06,00,000   75,00,000   -   2,26,07,520
 
 Interest paid on Loans            9,05,236       -       -         -
 
 Remuneration to Key Personnel        -      32,58,050    -         - 
 
 Commission Received for services
 & on Consignment sale          1,03,45,540       -       -         -
 
 Rent paid                            -      15,00,000    -         -
 
 16.  Earning Per Share computed in accordance with Accounting Standard
 - 20:
 
                                        Current Year    Previous Year
                                          2006-07         2005-06
 
 i) Net Profit After Tax available 
 for Equity
 Shareholders (Rs. In lacs)                513.77          280.46
 
 ii)      No of Equity Shares at the 
 end of year                          1,28,12,439       62,12,230
 
 iii)     Increase in equity 
 (on 26-12-2006) (Nos)                  66,00,209           NA
 
 iv) Prorata Equity for the purpose 
 of EPS(nos)                            79,48,175       62,12,230
 
 v)  Weighted Average of number of Equity
 Shares outstanding                     79,48,175       62,12,230
 
 vi)     Basic Earning Per Share 
 of Rs. 8/-each                              6.46            4.51
 
 vii)    Diluted Earning Per Share 
 of Rs. 8/- each                             6.46            4.51
 
 17.  In terms of Accounting Standard (AS-28) on Impairment of Asset
 issued by the Institute of Chartered Accountants of India (ICAI), the
 company during the yearcarried out an exercise of identifying the
 assets that may have been impaired in accordance with the said
 Accounting Standard.The company identified scrapped and dismantled old
 power plant, which was not in use and other unusable material and sold
 the same during the year. However, this did not have any impact on the
 working or efficiency of the operations of the company.
 
 18.  The company manufactures only one product i.e. Calcium Carbonate,
 hence the data for segment reporting is not given.
 
 19.  During the year, in November 2006, the company came out with a
 follow on public issue of 66,00,000 Equity Shares of Rs. 8/- each at
 fixed price of Rs. 40/- per equity shares comprising of face value of
 Rs. 8/- and premium of Rs. 32/- each aggregating Rs. 2640 lacs. The
 public issue closed on November 28, 2006 and was oversubscribed. The
 company allotted 66,00,209 equity shares of Rs. 8/- each after taking
 into account the additional equity shares due to fraction factor in
 December 2006 in consultation with Bombay Stock Exchange.The share
 premium of Rs. 21,12,06,6687- on the above equity shares has been
 credited to share premium account under Reserves & Surplus.
 
 The objects of the public issue were to expand the existing capacity by
 setting up a 20,000 TPA Ground Calcium Carbonate (GCC) unit, to set up
 an additional 3 MW captive power plant at its manufacturing facilities
 at Muzaffarnagar (UP), to meet the long term working capital
 requirements of the company, to raise resources for general corporate
 purposes, to meet the expenses of the issue and to list the new equity
 shares at Bombay Stock Exchange.The project was appraised and partly
 funded by Industrial Development Bank of India (IDBI). The total fund
 requirement was Rs. 3740 lacs comprising of project cost as appraised
 by IDBI Rs. 2990 lacs, long term working capital requirement of Rs. 610
 lacs and for general corporate purposes Rs.  140 lacs. The company
 completed the project of GCC plant and commenced the commercial
 production before scheduled date in fourth quarter of the financial
 year 2006-07.