1 Secured Loans:
 
 a.  Working Capital Finance from Canara Bank is secured by Pari passu
 first charge on Stocks and book debts (book debts not older than
 120days) and other chargeable current assets and Pari-passu second
 charge on Fixed Assets of the Company and Personal Guarantee of
 Promoter Directors.
 
 b.  Working capital finance from HDFC Bank Limited is secured by Pari
 passu first charge on stocks and book debts (book debts not older than
 180 days) and other chargeable current assets and Pari-passu second
 charge on Fixed Assets of the Company and personal guarantee of
 promoter Directors.
 
 c.  Working Capital finance from State Bank of India is secured by Pari
 passu first charge on stocks and book debts (not older than 120 days)
 and other chargeable current assets and: Pari-passu second charge on
 Fixed Assets of the Company and PersonalGuaranteeofPromoterDirectors.
 
 d.  Rupee Term Loan from State Bank of India is secured by first charge
 on Fixed Assets of the Company and Pari-passu second charge
 onallchargeablecurrentassets and PersonalGuaranteeof PromoterDirectors.
 
 e.  Rupee Term Loan from Canara Bank is secured by exclusive charge on
 the Machinery / equipments to be purchased out of the Term loan and
 Pari-passu second charge on the remaining Fixed Assets of the company
 present and future excluding vehicles
 andincludingcapitalworkinprogressalongwithSBI and PersonalGuaranteeof
 PromoterDirectors.
 
 f.  Term loan from ICICI Bank under TDC Programme of USAID Reflows is
 secured by an exclusive hypothecation of assets boughtunderthis
 programme
 
 g.  Hire purchase finance is secured by hypothecation of specified
 assets acquired under Hire Purchase Agreement.
 
 2.  Research & Development Expenses:
 
 During the year the company has incurred revenue expenditure pertaining
 to Research and Development of Rs.3.99.01.240/- (Rs.455.01.69V-).
 Revenue expenditure is shown under respective heads of expenditure. The
 Company has also incurred capital expenditure on Research and
 Development of Rs. Nil (Rs.1.16.33.501/-). Capital expenditure is shown
 in respective fixed assets.
 
 3.  Employee Stock Option Scheme:
 
 During the year 2.03.400 (48.700) shares of Rs.2/- each for cash and
 2.03.400 (48.700) shares of Rs.2/- each by way of bonus shares by
 capitalizing share premium were allotted as fully paid up shares to
 employees under ESOP Scheme. As per the above stated accounting policy
 during the year the company has charged Rs.1.37.90.520/-
 (Rs.33.01.860/-) as employee compensation costto the Profitand Loss
 Account.
 
 4.  Prior Period Adjustments:
 
 Prior period tax adjustments credited Rs.1.05.479/- (previous year
 debited Rs. 1.02.07.609/-) to profit and loss account
 representsincometaxadjustmentsrelatingtoearlieryears.
 
 5.  Share capital:
 
 Paid up share capitalincludes:
 
 a) 17.600 shares of Rs.10/- each were allotted as fully paid up for 
 consideration other than cash.
 
 b) 150 shares of Rs.10/- each were allotted as fully paid up pursuant
 to scheme of amalgamation without payment being received in cash.
 
 c) 3.03.325 shares of Rs.10/- each were allotted as fully paid up byway
 of bonus shares by capitalizing reserves and surplus.
 
 d) l8.00.000 shares of Rs.10/- each were allotted as fully paid up by
 way of bonus shares by capitalizing share premium.
 
 e) 5.45.50.150 shares of Rs.2/- each were allotted as fully paid up 
 by way of bonus shares by capitalizing share premium.
 
 6.  Disclosure under Borrowing Costs:
 
 Borrowing cost capitalized duringthe period was Rs.Nil(Rs.99.29.08l/-)
 
 7.  Retirement benefit plans:
 
 a) Defined Contribution Plan:
 
 The Company makes contributions towards Provident Fund to a defined
 contribution retirement benefit plan for qualifying employees. The
 provident fund plan is operated by the Regional Provident fund
 Commissioner. Under the scheme the company is required to contribute a
 specified percentage of payroll cost to the retirement benefit schemes
 to fund the benefits.
 
 The company recognized Rs.85.14l8V- (previousyear Rs.68.50.426/-) for
 providentf und contributions in the profit and loss account. The
 contributions payable to this plan bythecompanyare at rates specified
 in the rules of the scheme.
 
 b) Defined benefit plan:
 
 As per the Payment of Gratuity Act lump sum payment has to be made to
 vested employees at retirement, death while in
 employmentorontermination of employment of an amount equivalents 15
 days salary payable for each completed year of service or part there of
 in excess of six months. Vesting occurs upon completion of five years
 of service. Leave encashment is payable as per the Rules of the
 Company.
 
 The present value of the defined benefit obligation and the related
 current service cost were measured using Projected Unit CreditMethod
 with actuarialvaluationsbeingcarriedoutateachBalanceSheetdate.
 
 The following table sets out the status of the defined benefit
 obligation and the amounts recognized in the Companys
 financialstatementsasat31stMarch,2011.
 
 8.  Balances under sundry debtors, sundry creditors, deposits, loans
 and advances payable / receivable are subject to confirmation and
 reconciliation.
 
 9.  Certain items in the comparative figures have been reclassified to
 conform to the current years classification.
 
 10.  The figures have been rounded off to the nearest rupee.
 
 11.  In the opinion of the board, except as other wise stated, the
 Current Assets and Loans and Advances have a value on realization at
 least equal to amounts at which they are stated in the Balance Sheet.