Rain Commodities

I.  Pursuant to the Board of Directors approval for buy back of
 equity shares under section 77 A of the Companies Act, 1956, the
 Company has bought back 1,200,000 equity shares of Rs. 10 each through
 open market transactions for an aggregate amount of Rs.1 78,848 by
 utilizing the Securities Premium Account. The Capital Redemption
 Reserve has been created out of the current year profits for Rs.12,000
 being the nominal value of shares bought back in terms of section 77AA
 of the Companies Act, 1956.
 
 II.  The Company has allotted 50,63,293 equity shares of Rs.10 each at
 a premium of Rs.190 consequent to conversion of equity warrants issued
 on November 29, 2006. The amount received against the un- exercised
 1,736,707 equity warrants amounting to Rs. 34,734 has been forfeited
 and credited to capital reserve during the year.
 
 III.  Contingent liabilities not provided for in respect of:
 
                                December 31, 2008    December 31, 2007 
                                           Amount               Amount
 
 Matters under dispute:
 
 Sales Tax                                 73,246               52,385
 
 Excise Duty                               70,690                8,101
 
 Claims against the Company 
 not acknowledged as debts                      -               22,968
 
 Corporate Guarantee issued 
 on behalf of wholly
 owned subsidiary                       4,360,500            2,957,250
 
 IV.  Estimated amount of contracts remaining to be executed on capital
 accounts not provided for as on December 31, 2008 - Rs. 96,727
 (December 31, 2007 - Rs.247,220).
 
 V.  The Company has entered into various operating lease agreements
 for assets comprising of storage facilities and an amount of Rs. 30,485
 (December 31, 2007 - Rs. 10,397) paid under such agreements have been
 charged to revenue. These agreements are cancellable in nature and
 there is no restriction in respect of such leases.
 
 VI. Comparative figures of the previous year where necessary, have
 been regrouped to conform to those of the current year. The figures for
 the current year are for a period of twelve months and those of the
 previous period are for nine months, hence are not comparable.