Transactions with the wholly owned foreign subsidiary included in the financial statements as on 31.03.2014 are as follows:-

1.2 Other Non Current Assets include a sum of Rs. 556.42 Lacs, being book value of assets lost/damaged at Company's Kanpur Unit. The insurance claim has been pending with the Insurance Company for some time on account of the Insurance Company adopting dilly dallying tactics. In view of the present situation, the Company is contemplating seeking legal remedies at appropriate forums. Therefore, the claim amount has been considered as Non Current Assets. The loss, if any, on account of this, would be accounted for at appropriate time after exhaustion of legal remedies as the Company is confident of recovery of the claim.

1.3 Provision for taxation of Rs. 287.26 Lacs for the financial year 2013-14 represents Income Tax computed as per the normal provisions prescribed under the Income Tax Act, 1961.

1.4 Disclosures required under section 22 of the Micro, Small and Medium Enterprise Development Act, 2006:-

1.5 In the opinion of the board, the Current Assets, Loans & Advances are approximately of the value stated, if realized, in the ordinary course of business.

2.1 CONTINGENT LIABILITIES AND COMMITMENTS

Contingent liabilities not provided for in respect of

                                                  (Rs. in Lacs)

a. Letter of Credit issued to parties 
   by banks on our behalf for which 
   materials not  received                      84.68     74.59

   Demand                                        3.66      3.66

   Penalty                                       5.51      5.51

2.2 The company has provided Excise Duty of Rs. 24.05 Lacs (Previous Year Rs. 15.76 Lacs) on the finished goods lying in the premises as on the Balance Sheet date and included in the inventory value.

2.3 Additional Information, where applicable, pursuant to the provisions of Schedule VI of the Companies Act 1956, is as under:-

A. Licensed Capacity

The Company is not required to obtain License under the Industrial Development & Regulation Act, 1951 as informed by the management; therefore the said details are not applicable.

2.4 SEGMENT REPORTING:-

Based on the guidelines of Accounting Standards on Segment Reporting (AS-17) issued by The Institute of Chartered Accountants of India, the Company's primary business segment is only Printing Inks & Allied Products and hence segment reporting under this head is not applicable. The secondary segment i.e. Geographical Segment is also not applicable since the Company's operations are situated in one geographical area i.e. India.

2.5 Balances of some of the Trade Receivables, Trade Payables, Loans & Advances are subject to reconciliation/ confirmation from the respective parties. The management does not expect any material differences affecting the financial statements for the year.

2.6 During the FY 2013-14, the Company has issued 9947400 equity shares of face value Rs. 10/- per share at an issue price of Rs. 20/- per share, by way of Preferential Allotment. An Extra Ordinary General Meeting (EGM) of the Shareholders was convened on 29.03.2014, wherein the proposal for allotment of further shares to certain strategic investors and promoters was approved. Thereafter, the allotment of these equity shares was made at a duly convened Board Meeting held on 31.03.2014. The Listing and Trading Approval for the newly issued equity shares has been obtained on 29.05.2014.

2.7 Closing Stock of Raw Materials includes Goods in Transit of Rs. 545.23 Lacs.

2.8 The Previous Year figures have been regrouped wherever considered necessary to conform with the current year's classification.