(1) Contingent Liabilities :-
 
 (A) Income-tax demands pending to be paid Rs. Nil (Previous Year - 1031
 Lacs)
 
 (B) Corporate Guarantee given to Bank of India, Singapore for one of
 subsidiaries- Kothari Products Singapore Pte. Ltd. against credit
 facility of USD ($) 56,00,000 equivalent to Rs. 2526 lacs (Previous
 Year Rs. 2519 Lacs)
 
 (C) Corporate Guarantee given to UCO Bank, Kolkata for SPPL Hotels Pvt.
 Ltd. of Rs. 15100 lacs (Previous Year Rs. 15100 lacs).
 
 (D) Guarantees given by the bank on behalf of the Company against Term
 Deposits Receipts for Rs. 161 lacs (Previous Year Rs. Nil)
 
 (E) Guarantees given by bank on behalf of Pan Parag India Limited in
 favour of the Registrar National Consumer Disputes Redressal Commission
 , New Delhi, for Rs. 42 lacs (Previous Year Rs. 42 lacs) which is
 secured by FDRs of Pan Parag India Limited.
 
 (F) Uncalled liablity for 27015 partly paid equity shares of Karur
 Vysya Bank Ltd. of Rs.10/- each (Rs.6/- paid-up) amounting to Rs. 20
 lacs (Previous Year -Nil)
 
 (G) Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs. 187 lacs (Previous Year Rs. 197 lacs)
 
 (6) Related Party Disclosures in accordance with the Accounting
 Standards (AS-18) ''Related Party Disclosure'', issued by the Institute
 of Chartered Accountants of India are as under :
 
 (i) Names of related parties and description of relationship :
 
 (A) Key Management Personnel & their Relatives :
 
 (a) Shri Deepak Kothari - Chairman & Managing Director
 
 (b) Shri Mitesh Kothari - Executive Director
 
 (c) Shri M.M. Kothari
 
 (d) Smt. Sharda M. Kothari
 
 (e) Smt. Arti Kothari
 
 (f) Smt. Reeta Shah
 
 (g) Mitesh Kothari HUF (h) Smt. Urvi Kothari
 
 (B) Associate Companies :
 
 (a) Kothari Detergents Limited
 
 (b) Ekta Flavours Pvt. Limited
 
 (c) Dham Securities Pvt. Limited
 
 (d) Lohewala Construction Pvt. Limited
 
 (e) Parmy Manufactory Pvt. Ltd.
 
 (f) DK Web-Tech Pvt. Ltd.
 
 (g) Pan Parag India Limited
 
 (h) Bhojeshwar Realtors Private Limited
 
 (I) Hara Parvati Realtors Pvt. Ltd.
 
 (j) Real Griha Nirman Private Ltd.
 
 (k) Subhadra Realtors Private Limited
 
 (l) Sankhya Realtors Private Limtied
 
 (m) SPPL Hotels Private Limited
 
 (n) Tauras Agile Technologies Corporation Private Limited
 
 (C) Subsidiary Companies :
 
 (a) Sukhdham Constructions & Developers Limited
 
 (b) Arti Web-Developers Private Limited
 
 (c) MK Web-Tech Pvt. Limited
 
 (d) KPL Exports Pvt. Limited
 
 (e) Kothari Products Singapore Pte. Limited
 
 (f) IMK Hotels Pvt. Limited
 
 (g) Savitrimata Realtors Pvt. Limited
 
 (8) In terms of Accounting Standard 16 ''Borrowing Cost'' issued by the
 Institute of Chartered Accountants of India, the company has not
 borrowed any funds to acquire, build and install any fixed assets and
 other assets during the year.
 
 (9) The deferred tax liability amounting to Rs. 54 lacs (Previous year
 Rs.76 lacs) is on account of time difference of Depreciation which is
 capable of being reversed in one or more subsequent years. The deferred
 tax liability amounting to Rs.23 lacs (Previous year Rs. 24 lacs was
 provided) has been reversed.
 
 (10) Disclosures as required by the Accounting Standard 19- ''Accounting
 for Leases'' -
 
 (i) All the lease agreements of the Company are in respect of operating
 lease of the premises (residential and business premises etc.).
 
 (ii) The aggregate lease rentals payable are charged to the Profit &
 Loss Account as Rent in Schedule 17.
 
 (iii) The cancellable lease agreements are usually renewable by mutual
 consent at mutually agreeable terms.
 
 (iv) The aggregate lease rentals receivable for the year is credited to
 the profit & loss as Rental Income grouped with Miscellaneous Receipts
 in Schedule 15.
 
 (11) In terms of Accounting Standard 28 Impairment of Assets Issued
 by the Institute of Chartered Accountants of India, provision for
 impairment loss on assets for the year is not required.
 
 (12) In terms of Accounting Standard 29  Provisions, Contingent
 Liabilities and Contingent Assets Issued by the Institute of Chartered
 Accountants of India, there has been no provision on beginning and at
 the end of the year, therefore no disclosure requirements.
 
 (14) Fixed Deposits at principal value includes Rs.60592 lacs (Previous
 year Rs.7012 lacs) pledged with the banks as margin money or as
 collateral towards credit limits sanctioned by them.
 
 (15) There is no amount due to be transferred to ''Investor Education &
 Protection Fund'' maintained by the Government of India as at the year
 end.
 
 (16) Sundry creditors include Rs. Nil (Previous Year Rs.Nil) due to
 Micro Enterprises and Small enterprises, based on the records and the
 information received from suppliers.
 
 (17) The Company has invested in 51% class B equity shares (having 26%
 voting & dividend rights) of M/s Savitrimata Realtors Pvt. Ltd.,
 thereby making it a subsidiary of the Company for a total consideration
 of Rs. 106 Lacs and this has resulted into goodwill amounting to Rs.
 109 Lacs on acquisition.
 
 (18) The Board of directors consider the diminution in value of its
 Long Term Investments as temporary in nature and therefore no provision
 for the same has been done in the books of accounts.
 
 
 (19) The figures of previous year have been regrouped, recast whereever
 considered necessary to make them comparable with those of the current
 year.