I.  NATURE OF OPERATION
 
 Raghunath International Limited (The Company) is mainly engaged in
 Real Estate including renting activities and trading and agency
 business.
 
 1.  Previous year''s figures have been regrouped, recast, rearranged
 wherever necessary to conform to this year''s classification. Figures in
 bracket represent figures pertaining to financial year 2009-2010 unless
 stated otherwise.  Amounts are mentioned in Rupees.
 
 2.  There are no earnings and expenditures in foreign currency.
 
 4.  The Company has given interest free loan of Rs. 100,000/-
 (2009-2010 - Rs. 100,000/-) to One Party (One party) under verbal
 agreement. Repayment period and terms have not been stipulated.
 
 5.  Advance against Land amounting to Rs. 2,315,000/- has been given to
 various farmers ranging between Rs.  10,000/- to Rs. 20,000/- during
 the year 1999-2000 as token money. In addition, the company has also
 given an advance of Rs. 1,011,250/-(2009-2010-Rs. 1,011,250/-) for
 purchase of land. The land is yet to be purchased.
 
 6.  Out of opening gross block of fixed assets amounting to Rs.
 14,171,374.79 (2009-2010: Rs. 18,291,744.07), the company has disposed
 off the fixed assets of Rs. 846,387.42 (2009-2010: Rs. 4,134,758.28).
 The losses on sale of fixed assets are of Rs. 193,626.42 (2009-2010 Rs.
 274,403.84). In view Of the management, it does not affect the concept
 of going concern.
 
 7.  Contingent liabilities not provided for in respect of:
 
 a) Excise duty of Rs. 103,934/- was paid under protest during the year
 2003-2004 against demand raised by Cen- tral Excise Department. Excise
 Department has appealed against the order of the Tribunal, which was in
 favor of the company. Out of the total appealed amount of Rs.
 3,286,165/-, appeal is pending for Rs. 103,934/-:
 
 b) Further, excise duty of Rs. 713,093/- has been paid during the year
 2008-2009 against the demand raised by Central Excise Department
 pertaining to earlier years. Appeal is pending with Central Excise
 Commissioner;
 
 c) During the year 2008-09, The Director General of Central
 Excise-Intelligence, New Delhi has served a show cause notice dated
 01.10.2009 on the company. Raising a demand of Rs. 719,156,761/-
 consequent upon a raid conducted by Te DGCEI, New Delhi on 09.05.2008
 in the premises of the company. Although, the com- pany did not have
 any activity whatsoever relation to Pan Masala business during the
 financial year 2008-09, still the company was made to deposit a sum of
 Rs. 30,000.000/- during the financial year 2008-09 with The DGCEI, New
 Delhi.
 
 However, at present, the said show cause notice is pending for
 adjudication with The Commissioner, Central Excise, Kanpur, Uttar
 Pradesh.
 
 8.  Deposit with Central Excise, Customs and Sales Tax Departments
 includes balance lying with Central Excise de- partment on account of
 CENVAT claimed but not availed, with State Trade Tax Department and
 Entry Tax Depart- ment for Rs. 4,321,399/-, Rs. 1,470,065/- and Rs.
 10,600/- (2009-2010 Rs. 4,321,399/-, Rs. 1,470,065/- and Rs.  10,600/-)
 respectively.
 
 9.  There were no Micro and Small enterprises to whom amounts are
 outstanding for more than 45 days, as at March 31, 2011 (Previous Year
 Rs. Nil). As at March 31, 2011, no supplier has intimated the company
 about its status as Micro and Small enterprises or its registration
 with the appropriate authority under The Micro, Small and Medium
 Enterprises Development Act, 2006.
 
 10.  Information pursuant to the provisions of paragraphs 3,4C, 4D of
 part II of Schedule VI of the Companies Act, 1956 in respect of
 manufacturing activities are not applicable.
 
 13. Pending actuarial valuation for gratuity as per AS-15 issued by The
 ICAI, the company has provided liability for Gratuity amounting to Rs.
 77,149/- (2009-2010 Rs. 83,871/-) during the year. However, the company
 has not actually paid any sum by way of gratuity during the year.
 
 15.  Related Party Disclosures:
 
 15. a) Following are related parties:
 
 (a) Key Management Personnel      Mr. G. N. Choudhary
 
 (b) Associates                    RGM Marketing Private Limited
                                   (Formerly known as Vastu Real 
                                   Estate and Consultants Private
                                   Limited)
 
                                   Raghunath Builders Private Limited
 
 (c) Individual and their
 relatives                         Mr. Om Prakash Agrawal
 having significant influence      Mr. Jai Prakash Agrawal
 over the company
 
                                   Mr. Sri Prakash Agrawal
 
                                   Mr. Yuvraj Dalmia
 
                                   Pulkit Dalmia
 
                                   Master Prakhar Dalmia
 
 (d) Enterprises over which per-   Sri Prakash Agrawal (HUF) 
 sons mentioned in paragraph       Jai Prakash Agrawal (HUF) 
 number (c) above exercise 
 significant influence             Om Prakash Agarwal(HUF)
 
                                   Lotus Infraprojects Private Limited
 
                                   Sunflower Durabuild Private Limited
 
                                   Good Luck Housing and Promoters
                                   Private Limited
 
                                   P J Softwares Limited
 
                                   Sir Bio Tech India Limited
 
 c) During the year no amount receivable/payable from/to related parties
 has been written off/written back.
 
 16. The deferred tax Asset/ (Liability) for the current year is Rs.
 785,371.80 (Previous Year (Rs. 25,161.30)).
 
 18.  Confirmation from Debtors, Creditors, and advances to and from
 various parties were not received and their bal- ances are shown as
 appearing in the accounts.
 
 19.  The maximum amount due from directors or other officers of the
 company at any time during the year was Rs.  75,000/- (2009-2010 Rs.
 75,000/-).
 
 20.  In the opinion of the management, the current assets, loans and
 advances have a value on realization in the ordinary course of the
 business at least equal to the amount at which they are stated in the
 balance sheet.
 
 21.  Balance Sheet Abstract and Company''s General Business Profile (in
 terms of amendment of part IV of Schedule VI to the companies Act,
 1956) is annexed herewith.
 
 22.  a.) Pan Masala and allied products, trading/agency and real estate
 are considered three main business segments, whereas other remaining
 activities are considered constituting un-allocable business segment in
 the context of Accounting Standard -17 on Segment Reporting, issued by
 the Institute of Chartered Accountants of India.
 
 c.) Segment Revenue, Segment Results, Segment Assets and Segment
 Liabilities include the respective amounts identifiable to each of the
 segment. The expenses, which are not directly relatable to the business
 segment, are shown as unallocated cost. Assets and Liabilities, which
 cannot be allocated between the segments, are shown as unallocated
 assets and liabilities respectively.
 
 23. Schedules ''A'' to ''Q'' form an integral part of the Balance Sheet and
 the Profit and Loss Account and have been duly authenticated.