1.  Contingent Liabilities not provided for in respect of:
 
 
                                             2009-2010       2008-2009 
 
                                            (Rs.) lacs       (Rs.) lacs
 
 Central Excise                                 390.43           390.43
 
 Sales Tax                                      890.35           890.35
 
 Income Tax                                    2030.29          2040.29
 
 
 An amount equivalent to the additional charge of depreciation has been
 withdrawn and transferred from Revaluation Reserve to profit & Loss
 Account.
 
 2.  Sale includes a sum of Rs.23,51,54,389/- (Previous year Rs.
 27,76,90,684/-) (at transfer price) towards the value of internal
 transfers.
 
 3.  Balance confirmations are not available in some cases in respect of
 Sundry Creditors, Sundry Debtors, Loans & Advances and Unsecured loans.
 
 4.  On the basis of letters and correspondences, the balance under
 Sundry Debtors and Sundry Creditors are netted off with advances
 received/paid from/to non-identical parties respectively.
 
 5.  The petition no. 306 of 2008 of the Scheme of settlement under
 Section 391 (2) of the Companies Act ,1956 for the matter of settlement
 of dues of the secured creditors has granted by the Honble High Court
 of Calcutta vide order dated 14.01.09. Accordingly the amount over and
 above the settlement money Rs.1434.57 lakhs (previous year Rs.6892.90
 lakhs) has been written back in the Profit & Loss Account.
 
 6.  The Company on the basis of information available to it, has not
 able to verify the status of vendors under Micro, Small and Medium
 Enterprises Development Act, 2006 and hence disclosure relating to
 amounts unpaid as at the year-end together with interest paid/payable
 under this Act have not been given.
 
 7.  Disclosure of Related party transactions in terms of Accounting
 Standard-18 are given below: i) Name and description of relationship
 with related parties :-
 
 a) Mr. Suraj Ratan Mundhra, Key Management Personnel, Chairman &
 Managing Director.
 
 b) Substantial interest/Relatives: Rajesh Mundhra
 
 The Company does not have any outstanding dilutive potential equity
 shares. Consequently basic and diluted earning per share remains the
 same.
 
 8.  In accordance with the requirement under Accounting Standard 22 on
 Accounting for Taxes on Income, Deferred Tax Assets net off
 Liabilities at the year-end has not recognized the same in the accounts
 in view of the uncertainty of the future taxable profit of the Company.
 
 9.  As the company is a Sick Industrial Undertaking declared by the
 BIFR within the meaning of section 3(1 )(0) of the Sick Industrial
 Companies (Special Provision) Act,1985, the company is eligible to get
 relief under Section 115JB clause v(1 )of the Income Tax Act. Hence no
 provision has been created in the books of account for MAT (Minimum
 Alternative Tax).
 
 Previous years figures have been re-arranged/re-grouped, wherever
 necessary.