(A Rights, Preferences and restrictions attached to the Shares:
 
 (i) Equity Shares:
 
 Equity shares rank pari passu as regards to dividend and voting rights.
 Each share has one vote.
 
 (ii)Preference Shares
 
 Preference shares have right to preferential dividend of 10% per annum
 on cumulative basis and also for redemption of as to principal over the
 equity shares. Preference share holders have right ot vote only on the
 mattes concerning the preference shares.
 
 Provision is made for Gratuity on the assumption that all the eligible
 employees retire at the year end.  Provision for Leave Encashment is
 made for the leave accrued as at March 31, 2012 calculated at the year
 end salary of the respective employees.
 
 The company have not received any intimation from suppliers regarding
 their status under the Micro, Small & Medium Enterprises Act 2006 and
 hence disclosures if any, relating to amounts unpaid as at the year end
 to whether with interest paid/payable as required under the said Act
 has not been given.
 
 1. Segment Reporting:
 
 The Company''s operations predominantly relates to manufacture of
 chocolates, hence no reportable primary segment information is made.
 The secondary segment reporting of the company''s revenues are as
 follows:
 
 2. Related party disclosures:
 
 Related parties with whom company entered into transactions during the
 year:
 
 (i) List of Related parties :
 
 (a) Key Management Personnel and Enterprises :
 
 (i) P.Prakash Pai, Director
 
 (ii) P.Ananth Pai , Director
 
 (iii) P. Abhijeet Pai, Director
 
 (iv) P. Ashwini Pai, Director
 
 (v) G.S.Ram, CEO, Whole Time Director
 
 (vi) Dilip Mangesh Kalelkar, Whole Time Director ( Technical)
 
 (b) Enterprises / Entities having Common Key Management Personnel
 
 i.  Puzzolona Machinery Fabricators
 
 ii.  Lotus Lanka ( P) Limited
 
 iii. Lotus Choco Uganda Limited
 
 The Company has identified all related parties and details of
 transactions are given below There are no other related parties where
 control exists that need to be disclosed.
 
 3. Contingent Liabilities not Provided for in respect of:
 
 1.  Claims against the Company not acknowledged as debts:
 
 a) From Commissioner of Customs, Chennai in respect of Advance licences
 not fulfilled within the stipulated time though extension and clubbing
 of such licences have been allowed by the Licensing authority RS
 18,000,000 (Previous year Rs 18,000,000).During the year the company has
 received order in favour of the company from Commissioner of Customs,
 Chennai Vide order No.10404/2009 dt 23-12-2009.However the department
 has preferred an appeal before the appellate tribunal against the order
 issued by Commissioner Customs,(Seaport-Export)
 
 b) From Directorate of Revenue Intelligence, Chennai in respect of
 alleged non fulfillment of export obligation for Rs 31,900,000 (Previous
 year RS 31,900,000 )
 
 4.  Counter Guarantees given to the Bankers in respect of guarantees
 furnished by them Rs 543,000 (previous year Rs 543,000)
 
 5.  Accrued and unpaid preference dividend Rs 100,903,000 (previous year
 Rs 93,506,000)
 
 6.  Balances of Trade receivables, payables and loans & advances are
 subject to confirmation and reconciliation.
 
 7.  Figures have been rounded off to the nearest rupee.
 
 8.  The company was using pre revised Schedule VI to the Companies
 Act, 1956 for the preparation and presentation of its financial
 statements up to the year ended 31st March 2011. During the year ended
 31st March 2012 the revised Schedule VI notified under the Companies
 Act, 1956, has become applicable to the company. The company has
 reclassified previous year figures to conform to this year''s
 classification.