1.  CONTINGENT LIABILITIES NOT PROVIDED FOR;
 
 i) Letter of Credit outstanding Rs. Nil (Previous Year Rs.607.00 Lacs).
 
 ii) Claims against the company not acknowledged as debt are:
 
 - Sales Tax pending in appeals Rs.2.23 Lacs (Previous Year Rs. 2.23
 lacs)
 
 -Interest on Working Capital Limits and Term Loan taken from State Bank
 of India Rs.170.61 lacs upto 15.12.2010.  However, the interest from
 16.12.2010 to 31.03.2011 is not ascertained.
 
 2.  The Gratuity is being charged to profit & loss account in the year
 in which it is paid. The liability for gratuity as on 31/03/2011 is
 Rs.3,90,393/- (Previous year Rs. 16,71,664/-).
 
 3.  Sundry Debtors, Loans and Advances include a sum of
 Rs.4,80,20,970/- recoverable as claim from certain parties which are
 considered doubtful, against which the management is taking effective
 steps for recovery.
 
 4.  In the opinion of the Board of Directors, the Current Assets, Loans
 and Advances have the value on realization in the ordinary course of
 business at least equal to the amount at which they are stated except
 as expressly stated otherwise.
 
 5.  Inventories as at close includes only inventories of packing and
 consumables which are valued at cost or net realizable value whichever
 is lower.
 
 6.  The Company is regularly incurring losses for the last two years
 and its accumulated losses are more than 50% of its Net worth During
 the current year also; it had incurred cash losses. As per the
 explanation and information given to us its plant is now totally out of
 operations and the company is unable to meet its working capital
 requirements and its accounts with the banks have become NPA as on
 30.09.2010. However to overcome the present turmoil, the company had
 obtained the approval of the shareholders under section 293(1 )(a) of
 the Companies Act, 1956 for disposal by way of sale, transfer or
 otherwise of whole or substantially the whole of undertaking of the
 company at a time or at different times in one or more tranches
 pursuant to the Postal Ballot Notice dated 18.04.2011 sent under
 section 192A of the Companies Act, 1956 read with the Companies
 (Passing of the Resolution by Postal Ballot) Rules 2001. As such the
 company, in order to pay off its liabilities, is going to liquidate its
 assets in the near future, therefore, it may loose the going concern
 status.
 
 7.  According to the information and explanations given to us the
 company has received notice dated 15.12.2010 under section 13(2) of the
 Securitization And Reconstruction of Financial Assets And Enforcement
 of Securities Act, 2002 from its banker namely State Bank of India, SCB
 Miller Ganj, Pahwa Hospital Complex, Ludhiana by which the bank has
 claimed outstanding dues to the tune of Rs.34,89,75,652.74 (inclusive
 of interest upto 15.12.2010) and also asked for future interest at
 contractual rate on the said amount together with incidental expenses,
 cost, charges, etc. The operation and conduct of the credit facilities
 have been classified as NPA as on 30.09.2010.
 
 8.  There are no Micro and Small Enterprises under The Micro, Small and
 Medium Enterprises Development Act, 2006 to whom the Company owes dues.
 The above information and that given in ''Sundry Liabilities - Schedule
 11'' regarding Micro and Small Enterprises has been determined to the
 extent such parties have been identified on the basis of information
 available with the Company. This has been relied upon by the auditors.
 
 10.  Segmental Information:
 
 The Company is a single segment company engaged in manufacturing of
 hydrogenated vegetable oils and the related products like Vanaspati and
 Refined oils. Accordingly the disclosure requirement as prescribed in
 the Accounting Standard 17 on Segment Reporting issued ,by The
 Institute of Chartered Accountants of India is not applicable.
 
 13.  Deferred Income Tax: The company has considered deferred tax
 adjustments in accordance with Accounting, Standard-22 on Accounting
 for Taxes on Income issued by The Institute of Chartered Accountants of
 India, after reviewing the status of the same as at the end of the
 accounting year, necessary differential adjustments has been reflected
 in profit & loss a/c for the current year.
 
 15.  Remuneration paid to Whole time director(s)''is Rs. 15,52,207/-
 (P.Y. 15,38,951/-).
 
 16.  Debit and credit balances, on whatever account, are subject to
 confirmation from the respective parties.
 
 17.  The previous year figures have been regrouped and recasted
 wherever necessary to make them comparable with the current year
 figures.
 
 18.  Additional information pursuant to Para 3 & 4 of Part- II of
 schedule VI to the Companies Act, 1956 (to the ex;;-,: applicable) is
 attached herewith.
 
 19.  Information pursuant to part IV of schedule VI to the Companies   
 Act, 1956 is attached herewith.
 
 20.  Annexure from 1 to 22 including statement on Significant
 Accounting Policies form an integral part of the Balance Sheet and
 Profit & loss Account.