1.  Contingent liabilities not provided for in respect of: - 
 
                                                     (Rs. in Lacs)
                                           As at             As at
                                      31.03.2011        31.03.2010
 
 a.  Bills discounted with banks 
 remaining outstanding
 
 i) Against Foreign LC                  5,412.26          4,615.09
 
 ii) Others                             2,247.16          1,210.28
 
 b.  Letter of Credit established 
 with banks :-
 
 i) Revenue account                      720.62             812.51
 
 ii) Capital account                     424.27           2,723.70
 
 c.  Guaranteesgiven by the bankers 
 on behalf ofthe company for             264.59             306.14 
 which FDRs Rs. 30.89 Lacs (Rs. 31.39 
 Lacs) pledged with them.
 
 d.  Guarantee given by Company to 
 Banks for loan to Carreman Fabrics
 India Ltd.                            1,950.00           1,950.00 
 [Outstanding as on 31.03.2011 Rs.
 1,346.81 Lacs (previous year 
 Rs. 1,592.28 Lacs)]
 
 e.  Claims against the company not 
 acknowledged as debt: -
 
 a) UnderTaxLaws                         80.60              577.74
 
 b) By Others:
 
 i) On Revenue account                    5.74                4.99
 
 ii) On Capital account                    Nil                 Nil
 
 There is no reimbursement possible on account of contingent
 liabilities.
 
 2.  Estimated amount of contracts remaining to be executed on Capital
 account Rs. 1,566.08 Lacs (Rs.6,443.46 Lacs) and export obligation
 against EPCG licenses Rs.11,020.11 Lacs (Previous Year Rs.14,378.00
 Lacs). The Company has also committed to contribute Rs. 25.00 Lacs to
 Real Estate Opportunity Portfolio-1 out of which Rs.17.50 Lacs are
 paid.
 
 3.  Advances includes amount due from officers of the Company Rs. Nil
 (Nil) with maximum debit balance Rs.2.06 Lacs (Rs.2.44 Lacs). Debtors
 include Rs. Nil (Nil) due from directors with maximum balance of Rs.
 Nil (Rs. Nil). It also includes Rs. Nil (Nil) due from a partnership
 firm with maximum balance of Rs.28.66 Lacs (Rs.28.45 Lacs) in which
 directors are partners.
 
 4.  Excise Duty shown under expenditure represents the aggregate of
 excise duty borne by the Company and difference between excise duty on
 opening and closing stock of finished goods.
 
 5.  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. 631.56 Lacs along with interest
 thereon inclusive of earlier years liability of Rs. 517.09 Lacs has
 been made and charged to the Profit and Loss Account for the year.
 
 6.  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.  Disclosures as required by Accounting Standards:
 
 A. 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.583.78 Lacs (Previous
 Year Rs.453.03 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 recognises 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
 encashed during the year charged to Profit & Loss Account.
 
 B.  Accounting Standard 16 - Borrowing Cost
 
 In terms of Accounting Policy No. 12 borrowing cost of Rs.151.34 Lacs
 have formed part of cost of relevant fixed assets.
 
 C.  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.
 
 D.  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.
 
 b) Key Management Personnel and Their Enterprises:
 
 Shri R.L.Toshniwal 
 
 Shri Ravi Toshniwal 
 
 Shri Rakesh Mehra 
 
 Shri Shaleen Toshniwal 
 
 Dhruvlmpex 
 
 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
 
 c) Relatives of Key Management Personnel and their Enterprises where
 transactions have taken place
 
 Shri RameshwarLal Ravindra Kumar Toshniwal HUF 
 
 Shri Ravindra Kumar Toshniwal HUF 
 
 Shri Dhruv 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.
 
 G. Accounting Standard 27 - Financial Reporting 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 31sl March, 2011 and
 income and expenses for the period ended on that date in respect of
 joint venture entities as per Financial Statements is given below.
 
 H.  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.
 
 8.  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.
 
 b) Foreign Currency exposure that are not hedged by financial
 instruments or forward contracts as at 31 st march, 2011 amount to US
 Dollar 197.40 Lacs (equivalent to Rs.8,802.01 Lacs) (Previous year US
 Dollar 95.24 Lacs equivalent to Rs.4,276.49 Lacs)
 
 c) Extraordinary items represent write back of provision made in
 previous year on maturity of foreign exchange financial instruments
 which were recognized on mark to market basis.
 
 9.  Previous year''s figures have been reworked, rearranged, regrouped
 and reclassified, wherever considered necessary and to make them
 comparable.
 
 Note: Figures in brackets are pertaining to the previous year.