1. Raw materials and packing materials at cost
 
 2.  Figures of previous year have been regrouped wherever necessary to
 make them comparable with the current year.
 
 3.  a.  The suit filed by the Company in Bombay High Court in February
 1993, challenging the alleged claims of Ambalal Sarabhai Enterprises
 Ltd. (ASEL), for a sum of Rs.30 crores has not yet been heard. Subject
 to the final outcome of the litigation, suitable adjustments will be
 made in the accounts.
 
 b.  As per the Judgement of the Supreme Court of India in Special Leave
 Petition filed by ASEL, the Court has directed ASEL to execute a
 guarantee within one month in favour of Banks (Central Bank of India
 and Bank of Baroda) from the date of Order. The guarantee has been
 executed by ASE and the impugned Judgement has been set aside.
 
 c.  No provision has been made for interest on loans from ICICI and
 IFCI as they have obtained a decree earlier against Ambalal Sarabhai
 Enterprises Ltd.
 
 In view of the above the Loans from the Banks and Financial
 Institutions have been shown as Other Liabilities under Current
 Liabilities and Provisions.
 
 4.  9.5% Cumulative Preference Shares were to be redeemed on 28.03.89
 on expiry of 15 years from the date of allotment.  The Company Law
 Board by their order have granted permission to issue new Preference
 Shares, Further clarifications are sought from BIFR.
 
 5.  As per the information available with the Company there are no dues
 to Small Scale Industrial Undertakings.
 
 6.  No provision has been made for the following claims which are
 contested by the Company,
 
 a.  Central Warehouse Charges, Excise and Sales Tax aggregating to
 Rs.25.36 lacs (Rs.25.78 lacs)
 
 b.  Labour Cases pending aggregating to Rs.l1.10 lacs (Rs. 10.36 lacs)
 
 c.  Claim against the Company not acknowledged as debt Rs.328.83 lacs
 (Rs.250.52 lacs)
 
 7.  No provision for Taxation has been made for the year on the basis
 of legal opinion received in respect of Taxation of Capital Gains.
 
 8.  Other clauses of information pursuant to Schedule VI of the
 Companies Act, 1956 are not applicable.
 
 9.  Related parties disclosures
 
 There are no related parties transactions during the course of the
 year.
 
 10. Company operates only in one business segment. Since the inherent
 nature of these activities is governed by the same set of risks &
 returns, these have been grouped as single segment in the above
 accounts.  The said treatment is in accordance with the accounting
 standard on Segment Reporting (AS 17).
 
 11. DEFERRED TAX :
 
 In accordance with Accounting Standard 22 the Company has determined
 the deferred tax asset (net) for the year ending 31.03.2007 In view of
 carry forward of losses under the Income Tax Act and as a matter of
 prudence the company has not recognised the same in accounts.
 
 12. Earning per share :
 
 Earnings per share is calculated by dividing the profit attributable to
 the equity shareholders by the number of equity shares outstanding
 during the year. The numbers used for calculating basis and diluted
 earning per equity share are as stated below :
 
 13. Previous Year Figures are shown in brackets.