The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

2. In the opinion of the Board, current assets, loans and advances shall have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provision for all known liabilities have been made and contingent liabilities disclosed properly. Balances of sundry debtors, sundry creditors, loans and advances and other personal accounts are subject to confirmation and reconciliation. Consequential impact, if any, will be considered as and when determined.

3. Loans & Advances includes non-interest bearing unsecured loan of Rs.2250332515/- given to Chromatic International FZE, the subsidiary of the company for overseas Business Development. The subsidiary did not do any business during the year.

4. The Company had made investments in erstwhile subsidiary namely Arcoiris SA with a view to have establishment abroad to penetrate into foreign market. Net worth of Arco iris SA is fully eroded and the company has been liquidated during the year 2011-12. However, no provision is made for investment made by the company in Arcoiris S.A. amounting to Rs.26.23 lacs and advances and interest receivable amounting to Rs. 109.81 lacs, which are doubtful of recovery. The amount has been shown as Long Term Loans & Advances.

5. The company has made Advances for capital work in progress amounting to Rs. 105.72 Crores during previous accounting years for setting up pf power plant. The procurement has not been done for pending clearances from the Govt. These advances are subject to confirmation and reconciliation.

6. 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 the date or for the period then ended, other than those reflected or fully disclosed in the books of account.

7. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, except in respect of certain assets as disclosed in Accounting Policy on Depreciation, Amortization and Depletion. Accordingly the unamortized carrying value is being depreciated / amortized over the revised/remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs 7.74 lacs. In the absence of complete details of additions in the case of buildings, revised estimated remaining life has been considered as certified by the management. The WDV as on 31.03.2014 has been depreciated in the remaining estimated life of the asset as such. In the case of Factory Building remaining life has been estimated at 10 years and in case of office and store building, the life has been estimated at 35 years. Lease hold land has been depreciated over the lease period as per the policy of the company.

8. Provision for Gratuity payable to employees has been covered by the Group Gratuity Policy taken by the company with LIC of India and premium of the policy has been duly accounted for. However, no provision has been made for leave encashment as required by AS-15 (Revised 2005) employee Benefits notified by Companies (Accounting Standard) Rules 2006, has been made and the same shall be accounted for as and when paid.

9. Pursuant to Accounting Standard (AS)-28 on "Impairment of Asset" issued by The Institute of Chartered Accountants of India, the company assessed its fixed assets for impairment as at 31st March 2015, and concluded that there have been no significant impaired fixed assets that need to be recognized in the books of accounts.