1) Liability In respect of gratuity and leave encashment are accounted
 on payment basis which is not in conformity with Accounting Standard
 (AS)15 (Revised 2005) on Employee Benefits as issued by the Institute
 of Chartered Accountant of India, which requires that gratuity and
 Leave Encashment Liabilities be accounted for on accrual basis.
 
 2). In the opinion of the Board,the Current Assets, Loans & Advances
 are approximately of the value stated and are realizable in the
 ordinary course of business except for those which are considered
 doubtful & provided for. The provision for all known liabilities is
 adequate.
 
 3) Some of the sundry debtors, sundry creditors and loans & advances
 are subject to confirmation and reconciliation.  Consequential
 adjustment thereof, if any, will be given effect into the books of
 accounts in the year of such adjustment.
 
 4) The provision for bad 6 doubtful debts for Rs. 15,80,04,588 has been
 made during the year. The management has considered it prudent to make
 provisions for the debts in view of the slow movement of the debtors
 due to the advent of the DF pens affecting its sales, which constitute
 bulk of the sales. The loss in terms of non realization has not
 crystallized. However, in view of the market conditions the management
 considered it prudent to make provisions based on its assessment as
 some of the overall debtors across major distributors could turn
 doubtful. Further, this was considered prudent by the management under
 the circumstances.
 
 5) HDFC bank has filed a petition against the company for winding up of
 operations and they have also moved to Debt Recovery Tribunal to
 recover it dyes. The company has defended the petition and had earlier
 made^claims against the company for the loss it had incurred due to the
 banks actions. The matter is sub-judice.
 
 6).  Contingent liabilities not provided for:-
 
 i) Outstanding liabilities in respect of
 
                                                          (Rs. in lacs)
 
                                             March, 2010     March,2009
 
 Letter of Credit to Bank                              -         494.20
 
 Bank Guarantee                                   101.56         101.56
 
 
 
 ii) In respect of Income Tax demands for the Assessment Years 2005-06,
 2006-2007 a 2007-2008 amounting to Rs.47.37 lakhs, Rs. 173.79 Lakhs
 &Rs. 14.03 Lakhs respectively, the Company preferred appeal before
 Appellate authority for both the years and has not made any provision
 for this amount in their books of accounts, since the company is
 confident that The Appeal will be decided in its favour.
 
 iii) The team of investigation wing of The Maharashtra VAT department
 raised a demand of Rs. 85,83,911/- on the company on 07/07/2010 in
 respect of non payment of VAT by suppliers of the company U/S 48 (5) of
 MVAT Act, 2002 for the financial year 2006-2007 and 2007-2008. The
 company has revised its VAT returns for the above financial years and
 admitted the liabilities under protest. Since this liabilities is not
 directly due to fault of the company and it is after balance sheet date
 no provision in this respect was made by the company.
 
 iv) Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) is Rs. 10 Lakhs (Mar09:
 Rs.50 Lakhs).
 
 7.  Related Party disclosure under Accounting Standard 18 (As certified
 by management) Relationships:
 
 i) Subsidiary of Company
 
 Todays Stationery Mart Ltd.
 
 Todays Infrastructure & Construction Ltd.
 
 Todays Fluid Technologies Ltd.
 
 
 
 ii) Other related parties in the group 
 
 where common control exists:
 
 Rajesh Kumar Drolia (HUF)
 
 Premium Writing Products 
 
 Millennium Writing Products Pvt Ltd 
 
 Jai Durga Engineering Co.  
 
 Todays Petrotech Ltd
 
 
 
 iii) Functional Directors
 
 
 
 Shri Rajesh Kumar Drolia 
 
 Shri Ronald Netto 
 
 Shri SunilAgarwal 
 
 Shri Pushpak Chavan
 
 
 
 iv) Relatives of Functional Directors
 
 
 Smt. Anita Drolia 
 
 Shri Chirag Drolia 
 
 Shri Pawan Drolia
 
 Ms. Akriti Drolia
 
 8.  The Company has made valuation of inventory as per its policy and
 has also taken into consideration the utility and realistic value of
 inventory.
 
 9.  The Company has incurred substantial losses resulting erosion of
 net worth of the company to a great extent. Further the company is a
 defaulter to its lending banks resulting in NPAand recalled notice /
 recovery action is taken by banks. Three banks moved to DRT (Debt
 Recovery Tribunal) and one of the bank has also filed winding up
 petition before Honorable High Court of Maharashtra. However, having
 regard to the future growth plans submitted by the company with its
 bankers on CDR (corporate debt restructuring scheme) which is admitted
 by their bankers and a TEV (Techno Economic Viability) report conducted
 by the bankers through Professionals also confirmed the feasibility and
 Viability of the business of the company and on the basis of this the
 company is treated as a going concern. So no adjustments are required
 to the carrying value of assets and liabilities.
 
 10.  Since more than 50% net worth is eroded from its peak net worth
 during the immediately preceding four financial year the company should
 give intimation to BIFR (Board and Appellate Authority for Industrial
 and Financial Reconstruction) within the stipulated time under The Sick
 Industrial Companies (Special Provisions) Act, 1985.
 
 11. Secured Loans
 
 (a) Term Loan
 
 (i) The company has transferred all its assets both current and fixed
 assets( both moveable and immovable) to SBI Trusteeship services(SBIT).
 vide security trust deed dated 19th March 2008. and accordingly the
 term lenders ICICI Bank Ltd and Axis Bank Ltd are secured by first
 paripassu charge on immovable and movable fixed assets (except those
 pertaining to the current assets charge in favour of working capital
 bankers) and second charge on current assets and movable assets.
 Further, the Immovable assets of Premium Writing Products(PWP) has been
 charged to the lenders through a guarantee by PWP pending transfer of
 immovable property to the Company . Also, personal guarantee of Mr.
 Rajesh Kumar Drolia and Mrs. Anita Drolia have been provided except to
 ICICI Bank Ltd.
 
 (ii) Term loan from Kotak Mahindra Bank Ltd is secured by Equitable
 mortgage of four flats situated at Powai and present outstanding is Rs.
 280.74 Lacs.
 
 (iii) Vehicles loans aggregating to Rs. 4.40 Lacs taken from various
 banks are secured by hypothecation of respective vehicles purchased.
 
 (b) Cash Credit
 
 The company has transferred all its assets both current and fixed
 assets (both movable and immovable) to State Bank of India trusteeship
 services (SBIT) vide security trust deed dated 19th March 2008 and
 accordingly the working capital lenders State Bank of India, Bank of
 India, ICICI Bank Ltd. and HSBC Bank Ltd. are secured by first
 paripassu charged on all current assets and movable assets (except
 those pertaining to the charged in favour of term lenders) and second
 charge on all immovable assets charged in favour of term lenders.
 Further, the Immovable assets of Premium Writing Products(PWP) has been
 charged to the lenders through a guarantee by PWP pending transfer of
 immovable property to the Company.  Also, personal guarantee of Mr.
 Rajesh Kumar Drolia and Mrs. Anita Drolia have been provided.
 
 12.  Names of small scale Industries against whom accounts outstanding
 for more than 30 days at the end of the year, (to the extent such
 parties have been identified from available information) (witihin terms
 of payment);
 
 (a) Hi Shine Inks Pvt Ltd (Rs.91.53 lacs);
 
 (b) Coburg Print & Pack(Rs.5.81 lacs)
 
 (c) Alok Master Batches Ltd(Rs. 1.86 lacs);
 
 (d) Colourtek (India) Ltd.(Rs. 0.78 lacs)
 
 (e) Bulbul Master Batches Pvt. Ltd(Rs.3.58 lacs); (f) Jacuzi Pharma
 (Rs.9.52 lacs)
 
 (g) Shree Extrusion Ltd. (Rs.20.22 lacs)
 
 Note: The outstanding amounts to the above parties are not due for
 payment as per the terms and conditions of purchase orders.
 
 13.  Trade deposits being unsecured are taken from debtors parties as
 per the norms of the business and Short Loan taken from banks fr
 institutions are termed as unsecured because these are secured by
 Promoters Shares, personal Guarantee of Directors and assets of third
 parties.
 
 14.  Figures in brackets are in respect of previous year.
 
 15.  Previous years figure have been regrouped/rearranged wherever
 necessary.
 
 16.  The Company has allotted 20,00,000 warrants on July 11, 2008.
 However the Warrant holders have not opted to subscribe for equity
 shares. Therefore amount received on allotment of Rs. 1,60,00,000 is
 forfeited as per Clause 13.1.2.3(c) of the SEBI (Disclosure & Investor
 Protection) Guidelines, 2000.