1. Contingent Liabilities not provided for (As certified by the
 Management)
 
 (a) Claims against the company towards listing fee for three stock
 exchanges not acknowledged as debt is Rs. 3.63 Lacs (Previous Year Rs.
 3.11 Lacs) as company has sought delisting from these stock exchanges.
 
 (b)Outstanding Bank Guarantees for Rs.31.03 lacs (Previous Year Nil)
 
 (c) The company has filed an appeal before The Custom, Excise & Service
 Tax Appellate Tribunal (CESTAT) in the matter of excise duty involving
 disputed amount of Rs. 2.52 Lacs (Previous Year Rs. 2.52 Lacs). The
 case is in progress and the company is likely to succeed. The matter
 being sub-judice, no provision has been made in the books of accounts.
 
 (d) Demand of entry tax amounting to Rs.4.36 Lacs (Previous Year Rs.
 4.36 Lacs) under U. P. VAT Act disputed in Appeal.  However, the same
 has been deposited with department under protest.
 
 2. Amount recoverable from Statutory Authorities shown under schedule
 Short Term Loans & Advances of the balance sheet includes a sum of
 Rs.46,13,849/- for which the company filed a claim before the trade tax
 authorities during the F.Y.2009-10 for refund of Trade Ta x paid on
 purchases and stock transfer in respect of Molasses for the earlier
 years in view of the decision of the Hon''ble Allahabad High Court in
 the case of M/s. SAF Yeast Company Private Limited vs. State of U.P.
 and Another. The claim of the company before the appropriate
 authorities is still pending.
 
 3. The Company has not received any information from suppliers or
 service providers, whether they are covered under the Micro, Small and
 Medium Enterprises (Development) Act, 2006. Therefore, it is not
 possible to give the information re- quired under the Act.
 
 4. In the opinion of the Board, the Current Assets, Loans and
 Advances including Sundry Debtors are of the value as stated in
 financial statement in the ordinary course of business, although, some
 of them are outstanding for a long period. The provision of all known
 liabilities has been made. The accounts of certain debtors, creditors,
 other liabilities and advances are subject to confirmation and
 reconciliation.
 
 5.The arbitration cases relating to supply of rice to Govt. of
 Bangladesh during 1995-96 pending in Bangladesh have been awarded in
 favour of company allowing our claims of USD 427,021.89 against Govt.
 of Bangladesh. The arbitration awards have been filed with the
 appropriate court in Bangladesh and the Court has made the award as
 rule of law. However, the Govt. of Bangladesh filed an appeal against
 the same before the Hon''ble High Court at Bangladesh, which is pending
 yet.
 
 6. As the Company''s business activity falls within a single primary
 business segment viz. Manufacturing of Yeast and there is no
 reportable secondary segment i.e. geographical segment, the disclosure
 requirement of Accounting Standard-17 Seg- mental Reporting as
 notified by the Companies (Accounting Standards) Rules, 2006 (as
 amended) is not applicable.
 
 7.a) Provision for tax under Income Tax Act, 1961 has not been made
 in view of the adjustable brought forwarded accumu- lated
 losses/unabsorbed depreciation.
 
 b) No provision for minimum alternative tax (MAT) on book profit has
 been made in the accounts in light of the direction to the appropriate
 authority by order of Board for Industrial and Financial Reconstruction
 (BIFR) as To consider to grant exemption from the levy of MAT under
 section 115JB of the Income Tax Act, 1961 for a period upto 31.03.08 or
 till the accumulated losses are wiped out as per Income Tax Act, 1961,
 whichever is later. The matter is yet to be confirmed for exemption by
 the appropriate authority.