1.  Corporate information
 
 M/s Intercorp Industries Limited having its registered office at
 C-371/42, Mahavir Enclave Part-Ill, New Delhi-110059 and was engaged in
 the business of Manufacturing and Re-sale of Consumer Goods.
 
 2.1 Contingent Liabilities.
 
 (i) Claims against the company not acknowledged as debts Rs.9, 55,000/-
 (Previous Year Rs.9, 55,000/-) cases for which have been filed and are
 being contested by the company.
 
 (ii) Counter claim made against the company during arbitration
 proceedings initiated by the company , claim made by the company are
 Rs.l,06,58,51,473/-( Previous Year Rs. 1,06,58,51,473/- ) counter
 claims by the parties Rs.575,41,27,200/- ( Previous Year
 Rs.575,41,27,200/-)
 
 (iii) Sale Tax demand under appeal Rs.29,695/-( Previous Year
 Rs.29,695/-)
 
 (iv) Registrar of Companies NCT of Delhi & Haryana has filed case
 against the company and its Managing Director for violation of section
 383A of the Companies Act. 1956.  The case is being contested by the
 company and no liability is expected by the management (Amount
 unascertainable).
 
 (v) Income Tax cases remanded back to assessing officer by appellate
 authorities in cases where Income Tax Department had filed appeals
 against orders of first appellate authorities (Amount unascertainable).
 
 2.2. Estimated amount of contracts remaining to be executed on capital
 account (Net of advances) Rs.Nil/- (Previous Year Rs. Nil ).
 
 Sincc tho work on projects under implementation were stand still for
 long time and company''s efforts in finding alternative for
 implementation of these projects did not yielded desired results, the
 company provided for the above impairment losses after ascertaining net
 reliable value based on sale ''as is where is'' basis .
 
 2.3 No Balance confirmation for principal and interest outstanding has
 been given by Industrial Development Bank of India Limited (Formerly
 Industrial Development Bank of India) to whom term loan is outstanding.
 During financial year 2009-10 Kotak Mahindra Bank Limited claimed
 before DRT that IDBI has assigned the principal and interest
 outstanding to Kotak Mahindra Bank Limited. The company has not
 accepted the purported assignment on legal grounds.
 
 2.4 The company had given various advances as per agreed terms and
 conditions to suppliers for Implementation of Biotech Project, These
 suppliers have failed to fulfill there obligations and company has
 taken steps to recover its dues. A sum of Rs.3,15,14,860/- (Previous
 Year Rs.3,15,14,860/-) is out standing as on 31.03.2012 as capital
 advance for which there is uncertainty about realization and hence,
 fully provided for.
 
 2.5 During the last year company has been informed before Debt Recovery
 Tribunal (DRT) that Kotak Mahindra Bank Limited under provisions of The
 Securitization and Reconstruction of Financial Assets and Enforcement
 of Security Interest Act, 2002 has sold off Company''s Land, Plant &
 Machinery & Other Assets situated at Behror, Distt. Alwar (Rajasthan).
 However, Management is not in full possession of details viz. full
 payment etc. Keeping in view of ongoing case in DRT with Kotak Mahindra
 Bank Limited and lack of availability of full details the Management
 has shown Book Value (Net) of assets sold as recoveable from Kotak
 Mahindra Bank Limited as per details given below: 
 
 Also due to aforesaid action of Kotak Mahindra Bank Limited following
 balances relating to project at Behror, Distt. Alwar (Rajasthan) have
 been written off in the FY 10-11: -
 
 Further effect, if any, due to aforesaid action of Kotak Mahindra Bank
 Limited, will be given on full availability of information and/or
 decision of DRT.
 
 In opinion of Management, the company is a ''Going Concern''.
 
 2.6 IDBI Limited (Formerly Industrial Development Bank of India) has
 filed a case against the company for recovery of its term loan before
 debt recovery Tribunal (DRT) in which it has lodged claim of following
 amounts outstanding on 31.12.1999.
 
 With further interest @ 17.46% from 31.12.1999 till the date of final
 payment. The Company has refuted claim of IDBI on various grounds in
 its reply filed before DRT. Since matter is subjudice no provision for
 interest for the year on term loan has been provided for
 Rs.l2,58,69,802/-( Previous Year Rs. 10,56,62,914/-) Cumulative balance
 of interest on term loan not provided for is Rs.69,73,55,452/- (
 previous Year Rs. 57,14,85,650/-).
 
 2.7 There was no employee during the year.
 
 2.8 Additional Information pursuant to the Provisions of Part II of
 schedule VI of the companies Act.  1956. to the extent applicable to
 the company.
 
 2.9 No deferred tax assets have been recognized in books of accounts
 in view of the perception of the management that such assets may not be
 realized within the applicable time limits.
 
 2.10 Related party disclosures as required by Accounting Standard-18
 (''AS-18'') is not applicable as there was no transaction with the
 related parties.
 
 2.11 Disclosure as required by clause 32 if Listing Agreement. Loan and
 Advance in the nature of Loans given to subsidiaries and Associates
 etc. Rs. Nil (Previous Year Rs. Nil).
 
 2.12 The Company has no Foreign Currency exposure at the year end
 (Previous Year Rs. NIL)
 
 2.13 In terms of Section 22 of the Micro, Small and Medium Enterprises
 Development Act.2006, the outstanding to these enterprises are required
 to be disclosed.  However, these enterprises are required to be
 registered under the Act.  In the absence of the information about
 registration of the Enterprises under the above Act, the required
 information could not be furnished.
 
 2.14 Cash flow statement
 
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non-cash nature and any deferrals or accruals of
 past or future cash receipts or payments. The cash flows from
 operating, investing and financing activities of the Company are
 segregated based on the available information.
 
 2.15 Retirement Benefits
 
 The company does not have any employees hence accounting standard AS-15
 is inapplicable.
 
 2.16 Previous year''s figures
 
 The Revised Schedule VI has become effective from 1 April, 2011 for the
 preparation of financial statements. This has significantly impacted
 the disclosure and presentation made in the financial statements.
 Previous year''s figures have been regrouped / reclassified wherever
 necessary to correspond with the current year''s classification /
 disclosure. The Revised Schedule VI however does not require
 presentation of a reconciliation explaining the impact of the
 reclassification of the previous year figures in the financial
 statements.