1.  Related party disclosures:- In terms of Accounting Standard-18 on
 Related Party Disclosures, related party disclosures are as under:
 (i) Enterprises where control exists
 
 S.No.  Name of Company
 
 1 MKN Investment Pvt.  Ltd
 
 2 Raj Construction Projects Private Ltd.
 
 3 RDB Realty & Infrastructure Ltd
 
 4 Paras Nirman
 
 5 RDB Regent Retail Ltd
 
 6 RDB Rasayans Limited
 
 7 Sri S.  L.  Dugar Charitable Trust
 
 2. The Hon''ble High Court, Kolkata has confirmed sale of assets of New
 Tobacco Co. Ltd.  (In Liquidation) in
 favour of the company vide its order dated 19th April, 2006 and
 directed the Joint Special Officers to execute the deed and/or deeds of
 conveyance in respect of immovable properties and to issue necessary
 sale certificates for plant & machineries and all assets and properties
 in favour of the Company.  Conveyance deed of some properties is yet to
 be executed for transfer of title in favour of the Company since
 connected proceedings are pending before the Hon''ble High Court,
 Kolkata.
 
 3.  In view of the amendment made in the Union Budget 2003 with
 retrospective effect, the company is liable to refund excise duty
 amounting to Rs. 68,183,280/- received/ receivable in terms of
 notification no.32/99 dated 8th July, 1999 issued by the Central
 Government, on account of Badarpur unit in Assam and interest thereon
 amounting to Rs.40,437,517/- upto 31st March,2006. The company has
 challenged the amendment in Hon''ble High Court, Guwahati and
 subsequently the matter is transferred to Hon''ble Supreme Court of
 India. The Hon''ble Supreme Court vide its order dated 19th September,
 2005 has confirmed such retrospective amendment made by the Central
 Government through its Budget Notification. However, the company is of
 the view that the amendment is not applicable to it and a
 clarification/modification petition to that effect was filed and
 admitted by the Hon''ble Supreme Court. On 31st October, 2007, the
 Central Excise Department has passed a fresh adjudication order
 confirming the demand and the Company has appealed before the Appellate
 Tribunal which was brought to the notice of the Hon''ble Supreme Court.
 The Hon''ble Supreme Court disposed off the petition on 25th March, 2008
 with a direction that appeal shall be decided by appellate authority on
 merits and in accordance with law. The appeal filed before the Tribunal
 is disposed off without relief. The Company moved to Hon''ble Guwahati
 High court and the recovery is stayed till the final hearing. The
 Company is confident to get the full relief as the entire benefit was
 passed on to the consumer and as such the company does not accept any
 further liability and no provision is considered necessary based on the
 expert legal advice. Further to this the company has accounted for
 during financial year 2000-01 a sum of Rs. 40,493,280/- as excise duty
 refund receivable (Badarpur) and Rs.21,548,160/- towards excise duty
 payable (Badarpur) in terms of the above mentioned notification.
 
 4.  A suit has been filed against the company in the year 1999 for
 recovery of Rs.20,000,000/- along with interest which is still pending
 before the Hon''ble High Court, Kolkata. The company disputes the claim
 of the party and as the matter is subjudice no provision for interest
 has been made.
 
 4. The Company is in communication with its suppliers to ascertain the
 applicability of The Micro, Small and
 Medium Enterprises Development Act, 2006. As on the date of this
 Balance Sheet the Company has not received any communications from any
 of its suppliers regarding the applicability of this Act to them.
 
 5. Contingent Liabilities
 
 a) Claims against the company not acknowledged as debts Rs.
 14,453,701/- (Previous year Rs.14,453,701/-)
 
 b) Disputed liabilities relating to Central Excise Demands
 Rs.862,710,000/- (Previous year Rs.921,837,000/-)
 
 6. In the opinion of the Board the Current Assets, Loans and Advances
 are not less than the stated value if realised in ordinary course of
 business. The provision for all known liabilities is adequate and not
 in excess of the amount reasonably necessary. There is no contingent
 liability except stated and informed by the Management.
 
 7.The figures of Previous Year have been recast and regrouped wherever
 considered necessary.