1 In the opinion of the Board the current assets, loans and advances are not less than the stated value if realised in ordinary course of business. The provisions for all known liabilities are adequate. There are no contingent liabilities except stated, as informed by the management.

2 The Business of the company falls under a single segment i.e. Manufacturing of Cigarette and Smoking Mixture. In view of the general classification notified by Central Government in exercise of powers conferred u/s 129 of Companies Act, 2013 for companies operating in single segment, the disclosure requirement as per Indian Accounting Standard - 108 on “Operating Segment” are not applicable to the company. The company’s business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for geographical segment is also not required.

3 Post Employment Benefits

In accordance with the Payment of Gratuity Act, 1972 of India, the Company provides for gratuity, a defined retirement benefit plan (the ‘Gratuity Plan’) covering eligible employees. Liabilities with regard to such Gratuity Plan are determined by actuarial valuation and are charged to revenue in the period determined.

The following tables sets out the status of the benefit plan as per actuarial valuation as on March 31, 2018 and as recognised in the financial statements in respect of employee benefit schemes:

4 In terms of confirmation of sale of assets of New Tobacco Co. Ltd. (In Liquidation) in favour of the Company vide order dated 19^th April, 2006 of Calcutta High Court. Conveyance deed of Siliguri Property is yet to be executed for transfer of title in favour of the Company.

5 A suit has been filed against the company in the year 1999 for recovery of ‘ 20,000,000/- along with interest which is still pending before the Hon’ble High Court, Kolkata. The company disputes the claim of the party and as the matter is sub-judice no provision for interest has been made.

6 In view of the amendment made in the Union Budget 2003 with retrospective effect, the Company is liable to refund excise duty amounting to Rs. 49,238,160/- received/ receivable in terms of notification no.32/99 dated 8^th July, 1999 issued by the Central Government, on account of Badarpur unit in Assam. The Company had challenged the amendment in Hon’ble High Court at Guwahati and subsequently the matter was transferred to Hon’ble Supreme Court of India. The Hon’ble Supreme Court vide its order dated 19^th September, 2005 has confirmed such retrospective amendment made by the Central Government through its Budget Notification. However, the company was of the view that the amendment was not applicable to it and a clarification / modification petition to that effect was filed and admitted by the Hon’ble Supreme Court. On 31^st October, 2007, the Central Excise Department had passed a fresh adjudication order confirming the demand and in 2008 the company has appealed before the Appellate Tribunal which was brought to the notice of the Hon’ble Supreme Court. The Hon’ble Supreme Court disposed off the petition on 25^th March, 2008 with a direction that appeal shall be decided by appellate authority on merits and in accordance with law. The appeal filed before the Tribunal was disposed off without relief. The Company moved to Hon’ble High court at Guwahati but failed to get any relief against the order dated 19.04.2012, the company has again filled the appeal before the Hon’ble Supreme Court of India. The Hon’ble Supreme Court of India vide order dated 07.02.2014 set aside the order of the Hon’ble High court at Guwahati and requested to deal with the questions of law set aside in its previous order. In terms of this the hon’ble High Court at Guwahati vide its order dated 19.11.2014 remanded the matter to CESTAT at Kolkata for consideration of the matter in accordance of law. The said appeal filed before the CESTAT at Kolkata is allowed vide order dated 03.08.2016 and SCN dated 28.08.2001 and dated 10.09.2001 were set aside.

Further to this the company has accounted for during financial year 2000-01 a sum of Rs. 40,493,280/- as excise duty refund receivable (Badarpur) and a sum of ‘ 21,548,160/- towards excise duty payable (Badarpur) in terms of the above mentioned notification. The reversal effect of the same is given in the books of Account during this year and the balancing figure of Rs, 18,945,120/- has been charged to profit & loss account. The same has been shown as exceptional item in the Statement of Profit & Loss account.

7 The company has during the year under review paid total entry tax due along with upto financial year 2016-17 liability of Rs Rs. 4,56,199/- without waiting for the out come of appeal before the Calcutta High court against the entry tax imposed by state government on the import of input from other states for ease of business.

8 In 2015 a group of minority shareholders had filed a suit against the company in the court of Learned Fourth Civil Judge (Junior Division) at Sealdah, West Bengal and Learned third Civil Judge at Barasat, West Bengal. Since the matter is sub judice in the court, any disclosures given at this moment would be prejudicial to the interest of the company and that of the stakeholders.

9. The Company has adopted Indian Accounting Standard (Ind AS), prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules thereunder, with effect from April 01, 2017, with the transition date of April 01, 2016.

10 The figures of previous year have been reclassified and regrouped wherever considered necessary. The accompanying notes 1 to 43 are an integral part of the Financial Statements