అకౌంట్స్ గమనికలుHerman Milkfoods Ltd.

Mar 31, 2009

1. Current Assets, Loans & Advances

a) In the opinion of the Board of Directors, value of current assets, loans & advances if realized in the ordinary course of business shall not be less than the amount at which the same are stated in the balance sheet.

b) Party accounts, whether sundry debtors, creditors, loans and advances and others or generally debit or credit balances, are subject to verification and confirmation.

2. Contingent Liability

a) The company has received a demand of Rs.208949/-related to earlier years from Punjab State Electricity Board, Patiata against which the company had filed the case in the competent court. The company has been advised that there may be no liability on this account and no such provision has been made on this account.

b) The company has received a demand of Rs.549726/- related to earlier years from M/s Pushp Products Pvt. Ltd., Noida towards recovery of dues against which the company had disputed the demand. The company has been advised that there may be no liability on this account and no such provision has been made on this account.

c) The company has pledged fixed deposit of Rs. 1.00 crore with ICICI Bank Ltd., New Delhi against security of their term loan of Rs. 1.00 crore sanctioned for Companys new project to pack pouch milk under NABARD Scheme. The repayment period of the said scheme is 5 years which cannot be changed without the prior permission of NABARD. In April2008, ICICI bank had adjusted the FDR against the term loan which the Company has challenged the same in Competent Court of law. The matter is subjudice.

3. The estimated value of contracts remaining to be executed on capital accounts and not provided for amounts to Rs. 150.00 lacs (previous year Rs. 20.00 lacs).

4. No provision for gratuity has been made.

5. The companys business activity falls within a single primary business segment i.e. Milk Product. As such there is no separate reportable segment as per Accounting Standards-17 issued by the Institute of Chartered Accountants of India.

5. The names of the creditors who are small scale undertaking and to whom Rs. 1.00 lacs each or more outstanding as at 31st March, 2009 for over 30 days are NIL.

The information regarding Small Scale Industrial Undertaking undertakings 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.

6. As per the Accounting Standards-18 issued by the Institute of Chartered Accountants of India "Related Party Disclosure". In view of this the company has given that there was transaction with M/s Ranger Foods (P) Ltd. during the year at the prevailing market price.

7. Particulars of employees in receipt of remuneration of net less than Rs. 24,00,000.00 p.a. if employed throughout the year or Rs. 200000/- p.m., if employed for part of the year - NIL

8. Previous year figures have been regrouped or re-arranged wherever necessary to make them comparable with current year figures.

9. General

a) Figures have been rounded off to nearest rupee.

b) Previous years figures have been regrouped and/or rearranged wherever considered necessary.

c) Schedules 1 to 12 forms an integral part of the Accounts and have been duly authenticated.