1) The Sales Tax & Income-Tax Assessments are pending for earlier
 years. Liabilities in respect of such taxes could not ascertained.
 
 2) During the year.the Company has issued 8,50,000 Equity shares of Rs.
 10 each issued at a price of Rs. 20/-( including premium of Rs. 10/-
 each) on conversion of Warrants issued on preferential basis.
 
 3) Export benefits including Central Excise, Advance Licenses and
 Passbook of Duty Credit to be reconciled with the related evidences and
 Statements and necessary adjustment if required will be made after
 reconciliation. Export benefits receivable are valued and certified by
 the management. However the actual realisation of the same may
 significantly differ.
 
 4) The Company has deposits of Rs.74 lacs with the Pyrates Phosphates &
 Chemicals Ltd(PPCL) which is overdue.  However the company has filed a
 suit with District Court and for the same District Court has given the
 ruling in favour of the Company by the way of decree. The Company has
 now filled an application for the execution of the preferential claim
 for the decree against PPCL and as per the latest order given by the
 Honourable High Court Patna, it has been decided that the claim may be
 considered upon liquidation / disposal of all the assets of PPCL. In
 view of that, the management has not made any provision for doubtful
 deposits.
 
 5) Sundry Debtors, Creditors, Loan, Deposits and advances are subject
 to reconciliation and confirmation, necessary adjustment if required
 will be after reconciliation.
 
 6) Some assets of which the company is beneficial owner are pending for
 transfer in the name of the company.
 
 7) No provision has been made in the accounts for diminution in the
 value of quoted investments by reason of these
 investments being Long Term lnvestment and the decline in their value
 being on account of temporary factors.
 
 During the year ended March 31,2011, the Company made an investment of
 Rs 2.55 Lacs by way of subscription to the equity share capital of
 Shree Ambika Naturals Pvt. Ltd. With this subscription, Shree Ambika
 Naturals Pvt. Ltd. has become a subsidiary of the Company.
 
 Shree Ambika Naturals Pvt. Ltd. (Formerly Known as Shree Ambika Dyechem
 Pvt. Ltd.) is a company having its manufacturing unit atAhmednagar,
 Maharashtra.
 
 8) The Company had created an Employees'' Group Gratuity Fund in the
 previous year, which has taken a Group Gratuity cum Life Insurance
 Policy from the Life Insurance Corporation of India. Consequent to this
 reserve at the previous year end has decreased by Rs. 4.73 Lacs for
 contribution of premium to LIC for earlier years liability. Bonus is
 accounted on cash basis.
 
 9) In the opinion of the Board of Directors to the best of Knowledge
 and belief all the current assets, loans and advances have been stated
 at realisable value at least of an amount equal to the amount at which
 they are stated in Balance Sheet.
 
 10) Unpaid Dividend accounts are subject to reconciliation.
 
 11) The Company does not possess information as to which of its
 suppliers are Micro, Small and Medium Enterprises, as defined in the
 Micro, Small and Medium Enterprises Development Act,2006 to whom the
 Company owes any amount However, the Company is regular in making
 payments to its suppliers and has not received any claim in respect of
 interest fordelayed payment.
 
 12) The outstanding forward exchange contract as on 31st March,2011
 entered into by the company was for USD Nil (Prev.  year USD 85,400
 equivalent INR 39.40 Lacs).
 
 13) The entire operations of the Company relate to only one segment
 viz. Dyes, Chemicals & Intermediates such, there is no separate
 reportable segment under Accounting Standard-17 on Segment Reporting.
 
 14) As stipulated in Accounting Standard - 28 on Impairment of Assets
 issued by the Institute of Chartered Accounl India, the company has
 assessed potential generation of economic benefits from its business
 units and is of the v Assets employed in continuing businesses are
 capable of generating adequate returns over their useful lives in tr
 course of business, there is no indication to the contrary and
 accordingly management is of the view that no imp provision is called
 for in these accounts.
 
 15) Related Party Disclosure as required by Accounting Standard -18
 issued by the Institute of Chartered Accoun India.
 
 A Entities where control exists
 
 ShreeAmbika Naturals Pvt. Ltd. (Formerly Known as Shree Ambika Dye
 Chem. Pvt. Ltd.)
 
 B Key Management Personal (KMP)
 
 Shri V. P. Shah Managing Director
 
 Shri R. L. Rathod Whole Time Director (upto 15th July, 2010)
 
 Dr.S.N.Sahai Whole Time Director
 
 C Relatives of KMP Smt.JayaP.Shah Shri. P. B. Shah PB.ShahHUF
 
 D Other Related Parties (Entities in which (KMP) or their relatives
 have significant influence) Jayshree Chemicals Jayapriya Chemical
 Industries Ltd.
 
 Ganesh Tiles & Marble Industries VIP Chem Pvt Ltd.
 
 AmarTrading Corporation Standardcon Pvt.Ltd.
 
 J.V.Dye Chem. Pvt. Ltd.
 
 16) Accounting for Taxon Income Deferred taxliability at the year 
 end comprises of timing difference on account of depreciation.
 
 17) Additional Information Pursuant to the provisions of Para 3,4C,4D &
 Part II of Schedule VI of the Companies Act, 1956.  (For A to E
 below figures in bracket relate to the previous year)
 
 1.  The Installed Capacities, Production & Consumption of Raw Materials
 are as per the certificate given by the
 management on which the Auditors have relied, being a technical matter.
 
 2.  Under the Industrial Policy Statement dated 24th July 1991,and the
 notification issued thereunder, there is no licensing requirement for 
 the Company''s product.