1. There are outstanding guarantees given on behalf of the Company by
 Banks amounting to 16,42,69,638 (2009-2010 Rs 10,26,21,926) .The bank
 guarantees are 100% secured by lien against FDR''s amounting to Rs
 7,11,800/-
 
 2. Directors Remuneration : Company has paid remuneration to Directors
 from April 2010 to March 2011.Total amount paid is Rs 84 lacs ( Mr.
 P.N.Dadina Rs 30.00 lacs, Mr N K Dadina Rs 27.00 Lacs, Ms V K Dadina Rs
 27.00 lacs)
 
 3.  Property at 30, Shakespeare Sarani, Kolkata has been sold for Rs 43
 Crore vide registered transfer deed dated 18.6.2009 . This Property was
 released as per Hon''ble Calcutta High Court & Bombay High Court order
 dated 16.3.2009 & dated 7.5.2009. Now it has been reported that the
 matter has gone to the Apex Court, and the Hon''ble Supreme Court is in
 Session over the matter being a SLP (Civil) Preferred by the respondent
 Fab Leathers Ltd. Since there is no interim order of stay or any other
 interlocutory order, it is open to the parties to take steps without
 prejudice in compliance with the order of the Appeal Court subject to
 the result and or/such step will abide by the ultimate result of the
 pending before the Hon''ble Supreme Court.  Therefore the Company has
 decided not to recognize the sale, the carrying cost of the land as per
 books is Rs 20.57 Crores which has been shown in Fixed Asset Schedule E
 and has been capitalized w.e.f 1.4.2006. The amount received from the
 party Rs 43 Crores has been shown in Schedule D under unsecured loan.
 
 4. Disclosure of related parties / related party transactions: A Key
 management Personnel & their relatives:
 
 1. Mr. Pessi N Dadina                Whole-time Director
 
 2. Mr. N.K. Dadina                   Whole-time Director
 
 3. Ms. V K Dadina                    Whole-time Director
 
 4. Dr. (Mrs.) Z. P. Dadina           Wife of Mr. Pessi N
 
                                      Dadina and Mother of
 
                                      Ms. V.K. Dadina and
 
                                      Mr. N.K.Dadina
 
 5. There are no reportable segments requiring segment reporting as per
 Accounting Standard-17.
 
 6. Previous years'' figures have been regrouped wherever necessary to
 confirm to this years'' classification.
 
 7.  Employee Benefit
 
 In Terms of the Guidance on implementing Accounting Standard (AS) 15 on
 Employee Benefits issued by the Accounting Standard Board of the
 Institute of Chartered Accountants of India, a provident fund set up by
 the Company is treated as a defined benefit plan in view of the
 Company''s obligation to meet interest shortfall, if any. However, there
 is no such interest shortfall at the year end. According to the
 management on the basis of consultation with an actuary, actuarial
 valuation cannot be applied reliably to measure provident fund
 liabilities as at the year end in the absence of any guidance from the
 Actuarial Society of India.  Accordingly, complete information required
 to be considered as per AS 15 in this regard are not available and the
 same could not be disclosed. During the year, the Company has
 contributed Rs 3364334./- Provident Fund ( Pension) to the PF
 Commissioner.  a) Defined Contribution Plans The Company has
 recognised, in the Profit and Loss Account for the year ended 31st
 March, 2011 expenses
 
 b) Post Employment Defined Benefit Plans
 
 i) Gratuity (Funded)
 
 The Company provides for gratuity, a defined benefit retirement plan
 covering eligible employees. As per the scheme, the Gratuity Trust fund
 managed by the Trust, make payment to vested employees on retirement,
 death, incapacitation or termination of employment, of an amount based
 on the respective employee''s eligible salary for specified number of
 days (ranging from fifteen days to one month) depending upon the tenure
 of service subject to a maximum limit of twenty months salary. Vesting
 occurs upon completion of five years of service.  Liabilities with
 regard to the Gratuity plan are determined by actuarial valuation,
 based upon which, the Company makes contribution to the Gratuity funds.
 
 Following are the further particulars with respect to Defined Benefit
 Plans for the year ended 31st March, 2011:-