1. Contingent Liabilities not provided for :

2. Guarantees given by the company Rs. 60.55 Lacs (Pr. Year 60.28Lacs)

3. Claims against the company not acknowledge as debts Rs 600 lacs (Pr. 600 Lacs)

4. In the absence of Balance confirmations, Sundry Debtors, Sundry Creditors, Deposits and the parties to whom the advances are given are subject to reconciliation and such are as per books of accounts only. Adjustment thereto having an impact of revenue nature, if any, will be made during the period in which the same are fully reconciled.

5. In the opinion of the Board, the value of Current assets, Loans & Advances if realized in the ordinary course of the business shall not be less than the amount at which those are stated in the Balance Sheet.

6. Disclosure as required by Accounting Standard (AS-18) “Related Party Disclosures” issued by the Institute of Chartered Accountants of India is as follows:

7. Name of Related Parties & description of relationship:

8. Related Parties where control exists: M/s BGIL Films & Technologies Ltd.

M/s Merit Exports Pvt. Ltd - subsidiary company

9. Key Management Personnel: Rakesh Bhhatia - Chairman

Gaurav Bhatia- S/o Mr. Rakesh Bhatia Sanjeev Mittal - Director Kumar Pushkar-Company Secretary Bhaarti Partha Saha - CFO

SEBI INVESTIGATION

The Adjudicating officer of SEBI has passed its final order No. EAD-2/DSR/RG/99-102/2014 dated 17th April 2014 and imposed a total penalty of Rs. 6 Crores (Rs. 5 Crores u/s 15HA and Rs. 1 Crore u/s 15 HB of the SEBI Act) on the company. The Company has appealed before the Hon’ble Securities Appellate Tribunal against these Orders.

10. The Company has initiated legal proceedings for the recovery of inter-corporate deposits amounting to Rs. 5.40 crores along with interest and are hopeful of recovery of same. However, no provision has been made in the books of account.

11. As per the Income Tax Website, there are Income Tax demands pending against the company but as per the company’s records the same are not payable and the company is making efforts to reconcile the same with the Income Tax records.

12. Earnings per share (EPS) -

The Earning per share has been calculated as specified in Accounting Standard 20 on “Earning per Share” issued by the Institute of Chartered Accountants of India, the related disclosures are as below:

13. No provision has been made for diminution in the value of investment as in the opinion of management, the diminution in the value of quoted investments amounting to Rs. 98686.70 is temporary in nature.

14. There is provision in respect of retirement benefits such as gratuity as per Accounting Standard 15 issued by ICAI has been made as per assumptions of management.

15. Interest accrued on Bank Cash Credit Account as at the end of the year was debited by Bank and was credited to the said account as on 31st March 2016. Thus the balance in secured Loans is shown inclusive of interest Accrued thereon.

16. All known liabilities have been accounted for in books of account.

17. Previous year figures have been regrouped/ rearranged wherever considered necessary to make them comparable with the current year figures