1.1 1,87,500 Equity Shares were issued as fully paid up Bonus shares in
 the year 2007-08 by way of capitalization of Securities Premium
 Account.
 
 1.2 Rights, preferences and restrictions to the shareholders
 
 1.2.1 Equity Shares all equity shareholders are having right to get
 dividend in proportion to paid up value of the each equity share as and
 when declared.
 
 No member shall be entitled to exercise any voting rights either
 personally or by proxy at any meeting of the company in respect of any
 shares registered in his name on which any calls or other sums
 presently payable by him have not been paid or in regard to which the
 company has, and has exercised, any right of lien.
 
 1.2.2 Preference Shares Preference Shares are redeemable in 2014-15 at
 par and having right of dividend on cumulative basis if not
 declared/paid.
 
 2.1 Securities and Guarantees
 
 For Term Loans from Financial Institutions and Banks:
 
 Term Loans from Financial Institutions and Banks are secured by a joint
 equitable mortgage and/or hypothecation charges ranking paripassu on
 immovable/movable properties, present and future of the Company subject
 to prior charges in favour of the Bankers on specified movable
 properties created and/or to be created for working capital facilities.
 
 Term Loans from Financial Institutions and Banks are guaranteed by Shri
 R. L. Toshniwal, Chairman and Shri Ravindra Kumar Toshniwal, Managing
 Director in their personal capacities other than Export-import Bank of
 India. Term Loans outstanding of Rs. 8,636.36 Lacs (Previous Year Rs.
 12,127.49 Lacs) from Export-import Bank of India are guaranteed by both
 whereas term loans outstanding of Rs. 2,541.40 Lacs (Previous Year Rs.
 2,641.41 Lacs) from Export-import Bank of India are guaranteed only by
 Shri R. L. Toshniwal, Chairman.
 
 For Working Capital Term Loans
 
 Working Capital Term Loan from EXIM Bank is secured by First pari passu
 charge on entire current assets both present and future of the company,
 second pari passu charge on the entire fixed assets both present and
 future and it is further secured by personal guarantee of Shri R. L.
 Toshniwal, Chairman.
 
 For Deferred Payment Credits
 
 Deferred payment credits under Sales Tax Deferment Scheme for
 Industries 1987 are secured by a joint equitable mortgage and/or
 hypothecation charges ranking pari-passu on immovable/movable
 properties procured for expansion project as prescribed under the said
 scheme Rs. 33.38 Lacs (Previous Year Rs. 59.10 Lacs) are payable within one
 year.
 
 For Fixed deposits
 
 Fixed Deposits taken by the Company are Under the provision of sec. 58A
 of the Companies Act, 1956 and rules made there under are unsecured.
 Fixed Deposits are repayable within 1 to 3 year depending upon the term
 of deposits.
 
 3.1 Securities and Guarantees
 
 For Loans repayable on demand from banks are secured by way of
 hypothecation (Floating charges) of Raw material, Dyes- Chemicals,
 Packing Materials, Stores & Spares, Stock-in-process, Finished goods,
 Book debts, Export Incentives and second charge on all the Fixed Assets
 of the Company and also guaranteed by Shri R. L. Toshniwal, Chairman
 and Shri Ravindra Kumar Toshniwal, Managing Director in their personal
 capacities.
 
 4.1 In view of Stay Order dated 10.08.2006 of Hon''ble Rajasthan High
 Court, Jodhpur later on modified vide interim stay order dated
 04.03.2011 with regards to levy of entry tax by Rajasthan Govt, under
 Rajasthan Entry Tax Act, 1999 with the direction to deposit the 50% of
 Entry Tax payable, a provision for Rs. 103.95 Lacs (Previous Year Rs.
 631.56 Lacs along with interest thereon) has been made and charged to
 the Statement of Profit and Loss for the year in respective expenses
 account. The outstanding balance after making the payment during the
 year is Rs. 1428.93 Lacs (Previous Year Rs. 631.56 Lacs).
 
 5.1 Accounting Standard 16 - Borrowing Cost
 
 In terms of Accounting Policy No. 1 (J) borrowing cost of Rs. NIL Lacs
 (Previous Year Rs. 151.34 Lacs) have formed part of cost of relevant
 tangible assets.
 
 6.1 Credit in respect of Minimum Alternative Tax under Income Tax Act
 1961 (MAT Credit Entitlement) is recognized in accordance with Guidance
 Note issued by the Council of the Institute of Chartered Accountants of
 India.
 
 7.1 Inventories include stocks lying with third parties Rs. 1,089.07
 Lacs (Previous Year Rs. 1,224.01 Lacs)
 
                                                            (Rs. in Lacs)
 
                                               As at              As at
 
                                       31st March, 2012  31st March, 2011
 
 NOTE NO. ''8'' Contingent Liabilities
 
 1. Contingent liabilities not 
    provided for in respect of:     
 
 a. Bills discounted with banks 
    remaining outstanding
 
 (i)Against foreign LC                         5,284.22          5,412.28
 
 (ii) Others                                   1,469.02          2,247.15
 
 b. Letter of Credit established 
    with banks :-
 
 (i)Revenue account                              298.09            720.62
 
 (ii) Capital account                            692.13            424.27
 
 c. Guarantees given by the bankers
   on behalf of the company for                  790.06            264.59
   which FDRs Rs. 92.23 Lacs 
   (Previous Year Rs. 30.39 Lacs) 
   pledged with them 
 
 d. Guarantee given by Company 
   to Banks for loan to Carreman                 950.00          1,950.00
   Fabrics India Ltd [Outstanding as
   on 31.03.2012 Rs. 1,092.00 Lacs
   (Previous Year Rs. 1,346.81 Lacs)]
 
 e. Claims against the company not 
   acknowledged as debt: -
 
 (i)Under Tax Laws                               126.49             80.60
 
 (ii) By Others:
 
 (a)  On Revenue account                           1.84              5.74
 
 (b)  On Capital account                            Nil               Nil
 
 There is no reimbursement possible on account of contingent
 liabilities.
 
 NOTE NO. ''9'' Capital Commitments
 
 Estimated amount of contracts remaining to be executed on Capital
 account Rs. 1,597.45 Lacs (Previous Year Rs. 1,566.08 Lacs) and export
 obligation against EPCG licenses Rs. 6,699.28 Lacs (Previous Year Rs.
 11,020.11 Lacs). The Company has also committed to contribute Rs.25.00
 Lacs to Real Estate Opportunity Portfolio-1 out of which Rs. 25.00 Lacs
 are paid.
 
 NOTE NO. 10.1 Accounting Standard: 15 Employee Benefits, the
 disclosures of Employee benefits as defined in the accounting standard
 are given below:
 
 1.  Defined Contribution Plan
 
 Employer''s contribution to provident fund paid Rs. 690.65 lacs
 (Previous Year Rs. 583.78 lacs) has been recognized as expense for the
 year.
 
 2.  Defined Benefit Plan
 
 Present value of gratuity and long earned leave obligation is
 determined based on actuarial valuation using the projected unit credit
 method which recognizes each period of service as giving rise to
 additional unit of employee benefit entitlement and measures each unit
 separately to build up the final obligation. Short term earned leave
 encased during the year charged to Statement of Profit and Loss.
 
 Note No.''11'' Accounting Standard 17 - Segment Reporting
 
 The Company is engaged in production of textile products having
 integrated working and power generation. For management purposes,
 Company is organized into major operating activity of the textile
 products besides power generation. Revenue from power generation of the
 year is less than 10% of the total revenue. The company has no activity
 outside India except export of textile products manufactured in India.
 Thereby no geographical segment and no segment wise information are
 reported.
 
 Note No. ''12'' Accounting Standard 18 - Related Party Disclosure
 
 The company has identified all the related parties as per details given
 below:
 
 1.  Relationship:
 
 a) Joint Venture and Associate concerns
 
 Carreman Fabrics India Ltd.
 
 Banswara Fabrics Ltd.
 
 Treves Banswara Pvt. Ltd.
 
 b) Key Management Personnel and Their Enterprises:
 
 Shri R.L.Toshniwal 
 
 Shri Ravindra Kumar Toshniwal 
 
 Shri Rakesh Mehra Shri
 
 Shaleen Toshniwal
 
 c) Enterprises where Key Management Personnel has control /interest:
 
 Dhruv Impex 
 
 Mehra International 
 
 Lawson Trading Co. Pvt. Ltd.
 
 Niral Trading Pvt. Ltd.
 
 Shaleen Syntex Ltd.
 
 Moonfine Trading Co. Pvt. Ltd.
 
 Speed Shore Trading Co. Pvt. Ltd.
 
 Toshniwal Trust
 
 d) Relatives of Key Management Personnel and their Enterprises where
 transactions have taken place
 
 Shri Rameshwar Lai Ravindra Kr Toshniwal HUF
 
 Shri Ravindra Kumar Toshniwal HUF
 
 Shri Dhruv Toshniwal
 
 Shri Udit Toshniwal
 
 Smt. Prem Toshniwal
 
 Smt. Navneeta Mehra
 
 Smt. Radhika Toshniwal
 
 Smt. Sonal Toshniwal
 
 Ms. Esha Toshniwal
 
 Ms. Diya Toshniwal
 
 Sarvodaya Impex Pvt. Ltd.
 
 Note: Related party relationship is as identified by the Company and
 relied upon by the Auditors
 
 Note No. ''13'' Financial and Derivative Instruments
 
 Company has entered into following foreign exchange financial
 instruments
 
 a) The company uses foreign currency forward contracts to hedge its
 risks associated with foreign currency fluctuations relating to certain
 firm commitments on forecasted transactions as approved by Board of
 Directors. The company does not use forward contracts for speculation
 purpose.
 
 Note No. ''14'' Accounting Standard: 27  Financial Report of interest in
 Joint Venture
 
 a) The Company has entered into the Joint Venture with Carreman, France
 for 50% ownership interest in jointly controlled entity Carreman
 Fabrics India Ltd.
 
 b) The above Joint Venture Company is incorporated in India. The
 company''s share of assets and liabilities as on 3151 March, 2012 and
 income and expenses for the year ended on that date in respect of joint
 venture entities as per Financial Statements is given below:
 
 The Company has given guarantee in favour of bankers of Carreman
 Fabrics India Ltd. for an amount of Rs. 1,950.00 Lacs (Previous Year Rs.
 1,950.00 Lacs) for term loan. [Outstanding as on 31.03.2012 Rs. 1,092.00
 Lacs (Previous Year Rs. 1,346.81 Lacs)].
 
 Note No. ''15'' Accounting Standard : 28 Impairment of Assets:
 
 The Company assessed potential generation of economic benefits from its
 business units and is of the view that assets employed in continuing
 businesses are capable of generating adequate returns over their useful
 lives in the usual course of business, there is no indication to the
 contrary and accordingly the management is Of the view that no
 impairment provision is called for in these accounts.
 
 Note No. ''16'' All assets and liabilities are presented as Current or
 Non-current as per the criteria set out in the Revised Schedule VI of
 the Companies Act, 1956. Based on the nature of products and the time
 between the acquisition of assets for processing and their realization,
 the Company has ascertained its operating cycle less than 12 months,
 accordingly 12 months period has been considered for the purpose of
 Current/Non current classification of assets and liabilities.
 
 Note No. ''17'' The Revised Schedule VI became effective from April 1,
 2011 for the preparation of Financial Statements.  Hence, current year
 Financial Statements are prepared in accordance with Revised Schedule
 VI. Since Previous Year presentation was made as per Old Schedule VI,
 the Previous Year figures have been regrouped/ reclassified wherever
 necessary to correspond with the current year''s
 classification/disclosure.