I.  Company Overview
 
 Responsive Industries Limited (''RIL'' or ''the Company''), is a major
 producer and supplier of various products like Vinyl flooring, Rigid
 PVC, Leather Cloth & Soft Sheeting''s. Applications for Vinyl Flooring
 include Printing Flooring & Other Flooring and in case of Rigid PVC, it
 includes Packaging of Pharmaceutical Products in Pharma industry.
 
 1.  In the opinion of the Board, the Current Assets, Loans & Advances
 are approximately of the value stated in the financial statements and
 are realizable in the ordinary course of business. The provision for
 all known liabilities is adequate.
 
 2.  In respect of balance confirmations sought by the Company from
 various parties reflected under Sundry Debtors, Sundry Creditors and
 Loans & Advances some have responded to the request of the Company. As
 such balances of Sundry Debtors, Sundry Creditors and Loans & Advances
 are taken as appearing in the books of accounts and are subject to
 confirmation and reconciliation, if any. Consequential impact, if any,
 will be considered as and when determined.
 
 3.  No events or transactions have occurred since the date of Balance
 Sheet or are pending that would have a material effect on the financial
 statements at that date or for the period then ended, other than those
 reflected or fully disclosed in the books of account.
 
 4.  Sub division of shares
 
 Effective October 11, 2010 the Company has subdivided the face value of
 equity shares from Rs.10 each to Rs.1 each (sub division), after
 obtaining shareholders'' approval vide special resolution passed in the
 28th Annual General Meeting of the Company held on 10th September,
 2010. The basic and diluted earnings per share disclosed, (Refer Note
 12 below) have been computed for the current year and recomputed for
 the previous year based on the revised face value of Rs.1 each.
 
 5.  Secured Loans:
 
 i.  Working Capital Loan from Banks:
 
 It is secured by first charge in the form of Floating charge on whole
 of the current assets, book debts & Movable Property. Further, secured
 by second ranking pari passu charge on entire movable Fixed Assets of
 the Company both present & future.
 
 ii.  Buyer''s Credit:
 
 It is secured by first pari passu charge on entire assets and second
 ranking pari passu charge on entire movable fixed assets of the
 Company.
 
 iii.  Vehicle Loans:
 
 It is secured by specific assets.
 
 6.  During the year, in order to comply with the Accounting Standard
 (AS) 15 (Revised 2005) Employee Benefits as notified by the Companies
 Accounts Standard, Rule 2006, the method of accounting of Gratuity has
 been changed from cash basis to accrual basis of accounting and
 accordingly provision has been made as on 31st March, 2011 on the basis
 of acturial valuation. Due to change in this accounting policy, the
 profit for the year is lower by Rs. 5.21 Million having consequential
 effect on the Reserves and Surplus and Current Liabilities.
 
 In assessing the Company''s Post Retirement Liabilities, the Company
 monitors mortality assumptions and uses up-to-date mortality tables.
 The base being the LIC 1994-96 ultimate tables.
 
 Expected return on plan assets is based on expectation of the average
 long term rate of return expected on investments of the fund during the
 estimated term of the obligations.
 
 The estimates of future salary increase, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market
 
 7.  The Company had issued 7,000 (0% compulsorily convertible
 debentures of Rs.100,000/- each) in the Previous Year. The said
 debentures have been converted into 1,372,500 equity shares at a price
 of Rs. 510/- per share as per Board Resolution passed in the Board
 Meeting held on 9th August, 2010. The said conversion is at a Premium
 of Rs.500/- per share.
 
 8.  Related Party Disclosures
 
 (a) Key Management Personnel
 
 Mr. Atit Agarwal Whole time Director
 
 Rajesh Pandey Director
 
 (b) Relatives of key management personnel
 
 i) Mr. Abhishek Agarwal
 
 ii) M/s Om Prakash Agarwal H.U.F.
 
 iii) M/s Sharad Kumar Agarwal H.U.F.
 
 (c) Subsidiary
 
 Axiom Cordages Limited
 
 (d) Fellow Subsidiary
 
 Sun Plastochem Limited
 
 (e) Holding Company
 
 Welknown Business Ventures Private Limited
 
 (f) Enterprise owned or significantly influenced by Key Management
 Personnel or their relatives:
 
 i) One Source Trading Company LLP (with effect from 25th March, 2011)
 
 ii) One Source Enterprises LLP Hi) AA Superior Enterprises LLP
 
 There are no transactions during the current year with the related
 parties mentioned in (b), (d) and (f) (ii) & (iii)
 
 Following are the transactions with the related parties mentioned in
 (a), (c), (e) and (f) (i) above
 
 9.  Segmental Information
 
 i) Primary (Business) Segment
 
 As the company''s business consists of one reportable business segment
 of Plastic products, hence, no separate disclosures pertaining to
 attributable Revenues, Profits, Assets, Liabilities, Capital Employed
 are given.
 
 10.  Amounts due to Micro, Small and Medium Enterprise:
 
 As per the requirement of section 22 of the Micro, Small and Medium
 Enterprises Development Act, 2006 following information has been
 disclosed. This information takes into account only those suppliers who
 have responded to the enquiries made by the Company for this purpose.
 
 11. The previous year''s figures have been regrouped, rearranged,
 reclassified and reworked wherever necessary. Amounts and other
 disclosures for the preceding year are included as an integral part of
 the current year financial statements and are to be read in relation to
 the amounts and other disclosures relating to the current year.