Radha Madhav Corporation

(1) The Company has created an Employees Group Gratuity Fund which has
 taken a Group Gratuity-cum- Life insurance Policy from the Life
 Insurance Corporation of India. Gratuity is provided on the basis of
 premium paid on the above policy as intimated by Life Insurance
 Corporation of India. The adequacy of the fund along with the provision
 is as per the actuarial valuation done by Life Insurance Corporation of
 India.
 
 (2) Liability for leave encashment has been determined and accrued for,
 based on the number of days of en- cashable leave to the credit of each
 employee as on the balance sheet date. Treating it as Short Term
 employee Benefits.
 
 (3) Taxation
 
 Provision for current tax is made in the accounts on the basis of
 estimated tax liability as per the applicable provisions of the Income
 Tax Act, 1961.
 
 Deferred tax for timing difference between tax profits and book profits
 is accounted for using the tax rates and laws that have been enacted or
 substantially enacted as of the balance sheet date. Deferred tax assets
 are recognized to the extent there is virtual certainty that these
 assets can be realized in future.
 
 (4) Use of Estimates
 
 The presentation of financial statements requires estimates and
 assumption to be made that affect the reported amount of assets and
 liabilities on the date of the financial statement and the reported
 amount of revenue and expenses during the reporting period. Difference
 between the actual results and estimates are recognized in the period
 in which the result are known/materialized.
 
 (5) Provision, Contingent Liabilities and Contingent Assets Provisions
 involving substantial degree of estimation in measurement are
 recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes.  Contingent Assets are neither recognized nor disclosed in
 the financial statements.
 
 6. The Company has not received any intimation form suppliers
 regarding their status undec Micro, Small and Medium Enterprise
 Development Act, 2006 and hence disclosure requirements in this regard
 as per Schedule VI of the Companies Act, 1956 could not be provided.  ~
 
 7 .  The Company has not paid any remuneration to any director during
 the year under consideration.
 
 (b) Key Management Personnel
 
 - Mr. Mitesh Agrawal
 
 - Mr. Abhishek Agrawal (w.e.f. 16th May, 2008 as he was appointed as
 Jt. MD)
 
 (c) Persons having significant influence
 
 - Mr. Anil Agrawal
 
 (d) Relatives of .Key Management Personnel
 
 - Mr. Abhishek Agrawal (up to 15th May, 2088 as he was appointed as Jt.
 MD and as shifted to Key Management Person.)
 
 Note: In respect of above parties, there is no provision for doubtful
 debts as on 31st March, 2009 and no amount has been written off or
 written back during the year in respect of debts due from/to them.
 
 8.  Contingent Liability not provided for
 
 Particulars                     Rs. (in 000)  Rs. (in 000)
                                  31-03-2009    31-03-2008
 a) Bills/Cheques discounted           -            2398
 b) Guarantees given by Banks        33959         32880
 c) Estimated amount of contract 
 remaining to be executed             1878        178304 
 on capital Account and not provided 
 for (net of Advances)
 d) Disputed Liability of Central
 Excise Duty. Dispute                16248          -
 pending with Customs Excise & 
 Service Tax Appellate
 Tribunal, Ahmedabad
 
 b.  Nature of Provision
 
 - The company has made provision for Direct Tax as per the provision of
 the Income Tax Act 1961.
 
 - The company has made provision for Fringe Benefit Tax as per the
 provision of the Income Tax Act 1961.
 
 - Provision for Leave Encashment has been made for the liability of the
 Company for payment of Leave Encashment As on 31-03-2009 as per the
 Factories Act, 1948.
 
 Provision for Bonus has been made for the Liability of the Company for
 Payment of Bonus under the Payment of Bonus Act, 1965.
 
 c.  The Expected timing of any resulting outflow/s of Economic Benefit.
 
 1.  Outflow of Economic benefit for Direct Tax will take place as per
 the Provision of the Income Tax Act, 1961.
 
 2.  Outflow of Economic benefit for Fringe Benefit Tax will take place
 as per the Provision of the Income Tax Act, 1961.
 
 3.  Outflow of Economic benefit for leave Encashment will take place on
 availment/encashment of leave by employee on Resignation / Retirement
 of the Employee.
 
 4.  Outflow of Economic benefit for Bonus will take place in the month
 of November 2009.
 
 9.  Impairment of Assets Accounting Standard 28
 
 The company has carried out an exercise to ascertain the impairment, if
 any, in the carrying values of its assets.  The exercise has not
 reveals any impairment in any fixed assets of the company.
 
 10.  During the year under consideration, the Company is liable for
 Minimum Alternate Tax (MAT) as per the provisions of Income Tax Act,
 1961, for which credit will be available to the Company up to 10
 Assessment Years. In view of the Guidelines Note issued by the The
 Institute of Chartered Accountants of India (ICAI), company has taken
 credit Minimum Alternate Tax credit in the Profit & Loss account for
 the year under consideration.
 
 11.  Company has received Rs. 479.46/- Lacs against various secu rities
 issued in earlier year on preferential basis for setting-up of project
 in the state of Uttranchal and Union Territory of Daman & Diu and to
 fulfill the additional fund requirement for normal capital expenditure
 and manufacturing facilities and funding of working capital
 requirements for project at both the places . Company has Utilized Rs.
 479.46/- Lacs up to 31.03.2009 for the purpose for which it has been
 received.
 
 12.  Warrants
 
 The Company had allotted warrants on Preferential Ba sis in terms of S
 EBI Guidelines for which an upfront amount equivalent to 10 % of Issue
 Price of Warrants has been received. The warrant as stated below are
 exchangeable for one equity share of Rs. 10/- each immediately but not
 after 18 months from the date of issue.
 
 13.  The company has a single segment namely Flexible Packaging
 therefore the companys business does not fall under different business
 segments as defined by AS-17 Segmental Reporting issued by ICAI.
 
 14.  Previous years figures have been regrouped & rearranged wherever
 necessary.