(a) Working capital is secured by hypothecation of present and future
 stocks of raw materials, stock-in- process, finished goods, stores &
 spare parts, books debts and other moveable assets and personal
 guarantees of some of the directors of the company.
 
 (b) Term loans are partly secured by pari-passu first charge on the
 fixed assets of the company & personal guarantees of some of the
 directors of the company and partly by exclusive charge on the specific
 assets and personal guarantees of the directors.
 
 1 Disclosure of related party transactions (as identified & certified
 by the management):
 
 As per Accounting Standard-18 . ''Related Party Disclosures'' issued by
 the Institute of Chartered Accountants of India, the names of the
 related parties are given below :
 
 (a) Key Management
 
 (a) Shri Piyush Periwal Vice Chairman & Managing Director
 
 (b) Shri Vijay Kumar Periwal Director
 
 (c) Shri N. G. Paul Director
 
 (b) Enterprise owned or significantly influenced by Key Management
 Personnel and their relatives
 
 (c) Relatives/Associate Concern
 
 M/s Hazarimal Laxminarayan (Unsecured Loan)
 
 National Boards Ltd.  (Trade payable and Advances)
 
 Hanutram Ramchander (Advances)
 
 M/sPlynex (Trade payable)
 
 Utility Plywood & Timber Industries (Advances)
 
 Note:
 
 The above transactions do not include reimbursement of expenses made /
 received during the year.
 
 Previous year figures are in the brackets.
 
 2 To make regular monthly Contribution to Varies Providend Funds which
 are in the nature of defined Contribution schemes and such paid/payable
 amount are charged against revenue. To administer through duly
 constituted and approved independents trusts, various gratuity and
 pension funds, which are in the nature of defined benefit/contribution
 schemes. To determine the liabilities towards such schemes as
 applicable by an independent acturial valuations as per the
 requirements of Accounting.
 
 3 Micro, Small and Medium Enterprises
 
 There are no Micro, Small & Medium enterprises, to whom the Company
 owes dues, which are outstanding as at 31st March 2012. This
 information as required to be disclosed under the Micro, Small and
 medium Enterprises Development Act, 2006 has been determined to the
 extent such parties have been identified on the basis of information
 available with the Company.
 
 4 In the opinion of the Board of Directors, the Current Assets, Loans
 & Advances are approximately of the value stated in accounts, if
 realised in ordinary course of business, unless otherwise stated. The
 provision for all known liabilities is adequate and not in excess/short
 of the amount considered reasonable/necessary.
 
 5 Balances of some of the Sundry creditors, Loans and advances
 incorporated in the books as per balances appearing in the relevant
 subsidiary records, are subject to confirmation from the respective
 parties and consequential adjustments arising from reconciliation, if
 any. The management however is of the view that there will be no
 material discrepancies in this regard.
 
 6 Historically, the company''s investment in unquoted shares has been
 done with a view to hold them for long term and thereby earn capital
 gains, since dividend payout on such investments has generally been
 nil. The aforesaid policy has been taken into consideration while
 computing the provision for income-tax as aplicable.
 
 7 The financial statements for the year ended 31st March, 2011 had
 been prepared as per the then applicable pre-revised Schedule VI to the
 Companies Act, 1956, Consequent to the notification under the Companies
 Act, 1956. the financial statements for the year ended 31st March, 2012
 are prepare under revised Schedule VI. Accordingly, the previous year
 figures have also been reclassified to conform to this year''s
 notifications.
 
 8 Figures in the bracket relate to previous year.
 
 9 Figures have been rounded off to nearest rupee.