1.1 During the five reporting periods immediately preceding the
 reporting date, no shares have been issued by capitalization of
 reserves as bonus shares or for Consideration other than cash.
 
 1.2 The Company has a single class of equity shares. Accordingly all
 equity shares rank equally with regard to voting rights, dividends and
 share in the Company''s residual assets.
 
 2.1 Loan from Directors:
 
 These amounts have been brought in pursuant to the terms of sanction of
 Loans by Bankers and retained as unsecured loans.
 
 2.2 Interest Free Sates Tax Loan:
 
 The Company started to pay this loan from 2006 and will have to pay the
 loan fully within the year 2015.
 
 3.1 CONTINGENT LIABILITIES:                     31.03.2012   31.03.2011 
                                          
                                                 Rs. In lacs  Rs. In lacs
 
 a.  Bills discounted                                 NIL          NIL
 
 b.   Estimated amount of contracts remaining 
 to be executed on capital account and not 
 provided for (net of Advances)                       NIL         1920
 
 3.2. Income Tax assessments have been completed up to the Assessment
 Year 2010-2011.
 
 3.3 The company has opted the exemption route vide Central Excise
 Notification No.30/2004 and 31/2004 dated 09.07.2004.
 
 3.4 As at the end of the year, the Company does not have small-scale
 industries as defined by Section 3-J of the Industries (Development and
 Regulation) Act, 1951 and to whom more than Rs. 1.00 lac is due and
 also for more than 30 days. Hence, the provision of interest does not
 arise. There were no overdue payments to Micro, Small and Medium scale
 enterprises during the year and there is no amount overdue as on the
 date of the Balance Sheet to such enterprises.
 
 3.5 Sundry debtors which are overdue for a period of 6 months and more
 include a sum Rs.58.07 lacs (Rs.32.09 lacs) for which the Company has
 taken legal action and is hopeful of recovery. Provision has been made
 for Rs.32.84 Lacs for Doubtful Debtors.
 
 3.6 Depreciation has been calculated according to Schedule XIV of the
 Companies Act, 1956 as amended on straight-line method.
 
 3.7 The Company has received a demand towards Peak Hour Electricity
 charges amounting to Rs.55.36 lacs from TNEB against which the Company
 has gone on appeal to the Honourable High Court of Madras. The company
 has paid this amount  Under Protest.  This amount has not been
 ''debited to the Profit & Loss statement nor any provision made in the
 accounts, pending disposal of appeal by the Honourable High Court of
 Madras.
 
 3.8 Previous year figures have been regrouped and reclassified
 wherever necessary to conform to current year''s classification.
 
 I.  Segment-wise Reporting:
 
 The Company is engaged mainly in the manufacture of yarn. The Company
 owns Eleven wind mills mainly for captive consumption purpose only.
 During the year the value of power generated through these mills is Rs.
 12,64,33,405.50 (32509591 units) and this is adjusted with the power
 cost of the Company. The processing division is operating mainly for
 captive utilization and hence segment-wise reporting as defined in
 Accounting Standard 17 is not required.
 
 II.  Deferred Tax Assets I Liability:
 
 Deferred tax provision for the current year has been credited to the
 profit and loss statement for the year. The Balance of deferred Tax
 liability is being disclosed as a liability.
 
 III. Employee Benefits: AS-15:
 
 a.  Provident Fund Contribution:
 
 During the year the company has contributed Rs.2468946 /- to Government
 Provident fund . The company does not have a separate exempted
 provident fund.
 
 b.  Gratuity:
 
 As per the records of the company none of the employees come under the
 purview of Payment of Gratuity Act.
 
 c.  With regard to other terminal benefits payable to employees the
 company makes a payment of such benefits every year and hence no
 provision is required.
 
 IV.  Related Party Disclosure as per AS 18:
 
 1.  Related Parties: Associates: (i) N.Rajan & Sons
 
 (i) Amarjothi Colour Melange Spinning Mills Ltd.
 
 2.  Key Management Personnel: (i) Sri.R.Premchander, Managing Director
 
 (ii) Sri.R.Jaichander, Joint Managing Director.