Notes to Accounts of Wilwayfort India Ltd.

Mar 31, 2009

1. No provision for income tax for the current year has been made in these accounts as the company is advised that there will be no taxable income.

2. Balances of Debtors, Loans, Creditors and Advances taken as per books.

3. The company has been advised that the computation of Net profits for the purpose of Directors remuneration under Section 349 of the Companies Act, 1956 need not be enumerated since nc commission has been paid to the Directors, Fixed monthly remuneration has been paid to the Directors as per Schedule XIII of the Companies Act, 1956.

4. In the absence of comprehensive details of small scale undertaking and non intimation by the suppliers of their being small scale undertaking the amount due to such suppliers as on 31.03.2007 could not be determined.

5. To meet the requirement of section 145 (A) of the Income Tax Act, 1961 provisions of excise duty of Rs. 203039/- (P.Y. 7442) in respect of Finished Goods Stock has been provided. The same has no impact on the net loss of the company for the period.

6. In the opinion of the Board of Directors current assets and loans and advance have a value on realization in the ordinary course of business at least equal to the amounts at which they have been stated in the Balance Sheet and appropriate provision for all the know liabilities have been made in the accounts.

7. Estimated amount of contracts remaining to be executed for capital expenditures and not provided for Rs. Nil ( PY Nil)

8. The company had provisionally deposited Rs. 38135 during the financial year 1994-95 under protest with Excise Department in pursuance of demand raised by the Department being Excise demand for Bhiwadi Unit, which relates to the earlier owner. The case has been remanded back in appeal and company is of the view that the said amount is actually not payable and therefore no provision has been made in the accounts.

9. The Company has undertaken during the financial year 1995-96 Export obligations under EPCG Scheme to the extent of US $ 88.39 lacs (Equivalent to Rs. 2788.56 lac) on FOB basis. The company has applied to DGFT for extension of time witch is pending. Shortfall in the target as on 31.03.2007 is Rs.1744.10 lac.

10. As an Accounting Policy Export incentives are being accounted for on receipt basis. Export have been made through another company and not directly by the company . Therefore no export incentive are due to this company.

11. The company has become Sick Industrial Company within the meaning of Clause (0) of sub Section (1) of Section 3 of the Sick Industrial Companies (Special Provision) Act, 1985 in earlier year. The companys reference has been accepted and the Rehabilitation Scheme has been sanctioned by BIFR.

12 The company has imported Raw material upto the financial year 1999-2000 without payment of custom duty under advance license scheme and undertaken the export obligations and made the due provisions of custom duty payable on these imports (Adjustable against Exports) in the accounts in the respective year. The said export obligations to the extent of Rs. 2930003 (P.Y Rs. 2930003) are yet to be completed.

13. a) There was a demand for Rs 340473 against the Sales Tax Assessment for the year 1996-97. Against which the Company has filled an appeal and deposit a sum of Rs.34200 in during the year 2002-03 as pre requisite amount for the filling of appeal and is of the view that the said amount is not payable and therefore no provision has been made in the accounts.

b) Rs. 84682 has been deposited during the year 2003-04 under protest in the Central Excise Department towards Service tax on Clearing and Forwarding agent and Goods Transport Operators. The company is of the view that the said amount is not payable and therefore no provision has been made in the accounts.

c) Rs. 150000 has been deposited during the year 2004-05 under protest in the Excise Department against the demand in the case related to the Nofda plant for Modvat credit. The Company is of the view that the said amount is not payable and the therefore no provision has been made in the accounts.

d) On 1-6-2005 the Company had informed to the Central Excise Department that as per the decision of Supreme Court Judgement in case of Ms Metlex India Pvt Ltd. versus Commissioner of Central Excise, the product is not excisable and the Company has stopped charging excise duty in the sale invoice. The Excise Department issued a Show Cause notice for Cenvat claimed by the Company dunng June, 2004 to March, 2005 of Rs. 1,91,54,033/-. And in the another Show Cause notice for the duty amount for the period of 1-6-2005 to 28-02-2006 of Rs. 1,99,01,240/-. The Company is of the view that the said amount is not payable and the therefore no provision has been made in the accounts,

14. The related partys disclosures in accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

a) List of related parties with whom transactions have taken place during the year. i) Key management personnel (Directors)

Mr. IPS Walia - Chairman & Managing Director ( CMD )

b) Transactions with related parties -

i) Key management personnel details of remuneration of Director are given in note no. 3 above.

15. Segment information -

a) The company operation is in one segment namely Metalising, Coating , Embossing of Plastic Film and paper.

b) Secondary segment reporting (By Geographical segments) the following is the distribution of companys consolidated sales by Geographical markets, regardless of where the goods were produced

16. (a) In terms of Accounting Standard - 22 relating to "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Net Deferred Tax Asset as at 31-03-2008 has been recalculated and is Rs 577.62 Lac.

(b) Deferred Tax Assets (Net) amounting to Rs 31.05 Lac is arising during the year on account of less depreciation under Tax Laws, disallowance under section 43 B of Income Tax Act and business loss.

(c) However in view of uncertainty about sufficient future taxable income against which these Deferred Tax Asset can be realized, the same has not been recognized.

17. The company shares have been listed on Bombay, Ahmedabad & Delhi stock exchanges. Trading at stock exchanges has been suspended. Listing fee is also outstanding.

18. Figures have been rounded off to the nearest rupee and metric tons in case of amount and quantity respectively.

19. Previous year figures have been regrouped/reclassified where necessary to make them comparable with the current year figures.

20. Figures in brackets indicate figures for previous year.

21. Schedule I to XVI form an integral part of the accounts.