1. Contingent liabilities not provided for in respect of:
 
                                                   As at           As at
                                              31.03.2005      31.03.2004
                                                  Rupees          Rupees
 
 a) Guarantees executed by the Bank for
 which Company has given counter guarantee      4,31,400        2,52,085
 
                                                4,31,400        2,52,085
 
 There is no reimbursement possible on account of Contingent Liability.
 
 2. Claims against the company not acknowledged as debts on account of
 revenue is Rs 175000/- (Rs 175000/- previous year).
 
 3 Estimated amount of contracts remaining to be executed on Capital A/c
 Rs. 1450000/- (Rs. 96000/- previous year).
 
 4 Sundry creditors include Small Scale undertakings (SSI) based on the
 information available with the company, whose balances outstanding for
 more than 30 days, are Associated Chemicals,Associated Chemical
 Corporation,Didesu Chemicals Pvt Ltd,Dipsi Chemical, Pooja Industries.
 
 5. Deferred Taxes
 
 Deferred Tax Liability (Net) for the year provided to Rs. 11,44,190/-
 Major components of Deferred Tax balances as below :-
 
                                                        (Rs. in Lacs)
 Particulars                                        As At          As At
                                               31.03.2005     31.03.2004
 Deferred Tax Liabilities
 
 (i) Difference between Accounting &                56.74          42.72
 Tax Depreciation (Cumulative)
 
 (ii) Others                                            -              -
 
 TOTAL                                              56.74          42.72
 
 Deferred Tax Assets
 
 (i) Provision for Gratuity                         12.39          10.25
 
 (ii) Others                                         3.35           2.90
 
 TOTAL                                              15.74          13.15
 
 Net Deferred Tax Liability                         41.00          29.57
 
 6. Related Party Disclosures
 
 The Company has identified all the related parties during the year as
 per details given below :
 
 1. Relationship
 
 (a) Associate Concern
 
 Banswara Syntex Limited Banswara Fabrics Limited
 
 (b) Key Management Personnel Shri R.L. Toshniwal Shri Shaleen Toshniwal
 
 (c) Relatives of Key Management Personnel & their enterprises where
 transaction have taken place are none.
 
 Note : Related party relationship is as identified by the company and
 relied upon by the Auditors.
 
 7. Accounting Standard - 20 Earning Per Share
 
 Calculation of Earning Per Share (EPS) are given below :
 
                                         Units    2004-2005    2003-2004
 
 a. Amount used as Numerator               Rs.      9150766     10351035
 
 Profit available to Equity Shareholders
 
 b. Shares used as Denominator             No.       840000       840000
 
 c. Earning Per Share                      Rs.        10.89        12.32
 
 d. Nominal Value per Share is Rs. 10/-
 
 8. Managerial Remuneration & Perquisites of: -
 
 Executive Director-
                                            Unit    2004-2005  2003-2004
 
 Salary                                      Rs.    445500.00  300000.00
 
 Provident Fund                              Rs.     53460.00   36000.00
 
 Total                                              498960.00  336000.00
 
 9. Amalgamation of the Company with Banswara Syntex Limited:
 
 The Company had filed an application Under Section 391 and 393 of the
 Companies Act, 1956 in the Honble High Court of jurisdiction Rajasthan
 at Jodhpur in the matter of Amalgamation of the Company (the transferor
 Company) with Banswara Syntex Ltd. (the transferee Company). The
 appointed date is 01.04.2004. In accordance with the order of the
 Honble High Court, General meetings of Shareholders, Secured and
 Unsecured Creditors have been held on 29th March,2005. In such
 meetings, the scheme of amalgamation has been approved as required
 under the law. The significant features of the scheme affecting the
 financial statements are as under :-
 
 1. TRANSFER AND VESTING
 
 1.1. (a) Upon the coming into effect of this Scheme and with effect
 from the Appointed Date and subject to the provisions of this Scheme,
 the Undertaking of the transferor Company shall, pursuant to Section
 394(2) and other applicable provisions of the Act, stand transferred to
 and vest in or be deemed to be Transferred to and vest in the
 Transferee Company as a going concern without any further act,
 instrument or deed, matter or thing so as to become on the Appointed
 Date, the assets or liabilities of the Transferee Company.
 
 (b) Without prejudice to sub-clause (a) above, in respect of such of
 the assets of the Undertaking as are movable in nature or are otherwise
 capable of transfer by manual delivery or by endorsement and delivery,
 the same may be so transferred by the Transferor Company without
 requiring any deed or instrument of conveyance for the same and shall,
 upon such transfer, become the property of the Transferee Company as an
 integral part of the undertaking hereby transferred.
 
 (c) On and from the Appointed Date and subject to any corrections and
 adjustments as may, in the opinion of the Board of Directors of the
 Transferee Company, be required, the reserves and the balance in the
 Profit and Loss Account of the Transferor Company will be merged with
 those of the Transferee Company.
 
 (d) Upon the coming into effect of this Scheme and with effect from the
 Appointed Date, all the debts, liabilities (contingent or otherwise),
 duties and obligations of the Transferor Company shall, pursuant to
 Section 394(2) and other applicable provisions of the Act and without
 any further act or deed, be also transferred or deemed to be
 transferred to and vest in and be assumed by the Transferee Company, so
 as to become as from the Appointed Date the debts, liabilities, duties
 and obligations of the Transferee Company on the same terms and
 conditions as were applicable to the Transferor Company.
 
 (e) Upon this Scheme becoming effective, any loans or other obligations
 due between or amongst the Transferor Company and the Transferee
 Company shall stand discharged and there shall be no liability in that
 behalf.
 
 (f) All the licenses, permits, quotas, approvals, permissions,
 incentives, loans, subsidies, concessions, grants, rights, claims,
 leases, tenancy rights, liberties, rehabilitation schemes, special
 status and other benefits or privileges enjoyed or conferred upon or
 held or availed of by and all rights and benefits that have accrued,
 which may accrue to the Transferor Company shall, pursuant to the
 provisions of Section 394(2) and other applicable provisions of the
 Act, without any further act, instrument or deed, be and stand
 transferred to and vested in and or be deemed to have been transferred
 to and vested in and be available to the Transferee Company so as to
 become as and from the Appointed Date the licenses, permits, quotas,
 approvals, permissions, incentives, sales tax deferrals, loans,
 subsidies, concessions, grants, rights, claims, leases, tenancy rights,
 liberties, rehabilitation schemes, special status and other benefits or
 privileges of the Transferee Company and shall remain valid, effective
 and enforceable on the same terms and conditions to the extent
 permissible under law. It is hereby clarified that all inter party
 transactions between the Transferor Company and the Transferee Company
 shall be considered as intra party transactions for all purposes from
 the Appointed Date.
 
 (g) All Assets, estate, rights, title, interest, loans or benefits
 including under Income Tax, Excise (including Modvat/Cenvat), Sales Tax
 (including deferment of Sales Tax), subsidies, concessions, grants,
 rights, claims, leases, tenancy rights, liberties, rehabilitation
 schemes and other assets, special status and other benefits or
 privileges enjoyed or conferred upon or held or availed of by and/or
 all rights and benefits that have accrued or which may accrue to the
 Transferor Company after the Appointed Date and prior to the Effective
 Date in connection or in relation to the operation of the Undertaking
 shall, pursuant to the provisions of Section 394(2) and other
 applicable provisions of the Act, without any further act, instrument
 or deed, be and stand transferred to and vested or deemed to have been
 transferred to and vested in the Transferee Company.
 
 1.2 Upon the coming into effect of this Scheme and with effect from the
 Appointed Date:
 
 (a) All secured and unsecured debts, all liabilities, duties and
 obligations of the Transferor Company along with any charge,
 encumbrance, lien or security thereon (hereinafter referred to as the
 said Liabilities) shall, pursuant to the provisions of Section 394(2)
 and other applicable provisions of the Act, without any further act,
 instrument or deed, be and stand transferred to and vested in or deemed
 to have been transferred to and vested in, so as to become the debts,
 liabilities, duties and obligations of the Transferee Company, and
 further that it shall not be necessary to obtain the consent of any
 third party or other person who is a party to any contract or
 arrangement by virtue of which such debts, liabilities, duties and
 obligations have arisen in order to give effect to the provisions of
 this clause.
 
 It is clarified that in so far as the Assets of the Transferor Company
 are concerned, the security or charge over such Assets or any part
 thereof, relating to any loans or borrowing of the Transferor Company,
 shall, without any further act or deed continue to relate to such
 Assets or any part thereof, after the Effective Date and shall not
 relate to or be available as security in relation to any or any part of
 the assets of the Transferee Company, save to the extent warranted by
 the terms of the existing security arrangement to which the Transferor
 Company and the Transferee Company are party, and consistent with the
 joint obligations assumed by them under such arrangement.
 
 (b) Loans, advances and other obligations (including any guarantees,
 letters of credit, letters of comfort or any other instrument or
 arrangement which may give rise to a contingent liability in whatever
 form), if any due or which may at any time in future become due between
 the Transferor Company and the Transferee Company shall stand
 discharged and there shall be no liability in that behalf on either
 party.
 
 (i) Any debentures or notes, or other debt securities, if any, issued
 by the Transferor Company and held by the Transferee Company, and vice
 versa, shall, unless sold or transferred by the Transferor Company or
 the Transferee Company, as the case may be, at any time prior to the
 Effective Date, stand cancelled as on the Effective Date, and shall be
 of no effect and the Transferor Company or the Transferee Company, as
 the case may be shall have no further obligation in that behalf.
 
 (c) (i) Where any of the liabilities and obligations of the Transferor
 Company as on the Appointed Date transferred to the Transferee Company
 have been discharged by the Transferor Company after the Appointed Date
 and prior to the Effective Date, such discharge shall be deemed to have
 been for and on account of the Transferee Company.
 
 (ii) All loans raised and utilized and all debts, duties, undertakings,
 liabilities and obligations incurred or undertaken by the Transferor
 Company in relation to or in connection with the Undertaking after the
 Appointed Date and prior to the Effective Date shall be deemed to have
 been raised, used, incurred or undertaken for and on behalf of the
 Transferee Company and to the extent they are outstanding on the
 Effective Date, shall, upon the coming into effect of this Scheme,
 pursuant to the provisions of Section 394(2) and other applicable
 provisions of the Act, without any further act, instrument or deed be
 and stand transferred to or vested in or be deemed to have been
 transferred to and vested in the Transferee Company and shall become
 the debt, duties, undertakings, liabilities and obligations of the
 Transferee Company which shall meet, discharge and satisfy the same.
 
 (iii) All estates, assets, rights, title interests and authorities
 accrued to and/or acquired by the Transferor Company in relation to or
 in connection with the Undertaking after the Appointed Date and prior
 to the Effective Date shall have been deemed to have been accrued to
 and/or acquired for an on behalf of the Transferee Company and shall,
 upon the coming into effect of this Scheme, pursuant to the provisions
 of Section 394(2) and other applicable provisions of the Act, without
 any further act, instrument or deed be and stand transferred to or
 vested in or be deemed to have been transferred to or vested in the
 Transferee Company to that extent and shall become the  - estates,
 assets, right, title, interests and authorities of the Transferee
 Company.
 
 1.3. (a) With effect from Appointed Date and up to the Effective Date:
 
 (i) The Transferor Company shall carry on and shall be deemed to have
 carried on all its business and activities as hitherto and shall hold
 and stand possessed of and shall be deemed to have held and stood
 possessed of the Undertaking on account of, and for the benefit of and
 in trust for, the Transferee Company.
 
 (ii) All the profits or incomes accruing or arising to the Transferor
 Company, or expenditure or losses arising or incurred (including the
 effect of taxes, if any, thereon) by the Transferor Company shall, for
 all purposes, be treated and be deemed to be and accrue as the profits
 or incomes or expenditure or losses or taxes of the Transferee Company,
 as the case may be.
 
 (b) With effect from the date of filing of this Scheme with the High
 Court of Rajasthan, Jodhpur and upto and including the Effective Date:
 
 (i) The Transferor Company shall carry on its business and activities
 with reasonable diligence and business prudenceand shall not,
 undertake any additional financial commitments of any nature
 whatsoever, borrow any amounts nor incur any other liabilities or
 expenditure, either for itself or associate companies or any third
 party, or sell, transfer, alienate, charge, mortgage or encumber  or
 deal with the Undertaking save and except in each case in the following
 circumstances:
 
 (ia) if the same is in its ordinary course of business as carried on by
 it as on the date of filing this Scheme with the High Court of
 Rajasthan, Jodhpur; or
 
 (ib) if the same is expressly permitted by this Scheme; or
 
 (ic) if written consent of the Transferee Company has been obtained.
 
 (ii) The Transferor Company and the Transferee Company shall not make
 any change in their respective capital structure either by any
 increase,
 
 (by issue of equity or shares on a right basis, bonus shares,
 convertible debentures or otherwise) decrease, deduction,
 reclassification, sub-division or consolidation, re-organization, or in
 any other manner which may, in any way, affect the Share Exchange Ratio
 (as defined in Clause 9(a) below), except by mutual consent of the
 respective Boards of Directors of the Transferor Company and the
 Transferee Company or except as may be expressly permitted under this
 Scheme.
 
 (iii) The Scheme, though operative from the appointed date, shall be
 effective from the Effective Date.
 
 1.4 (a) Upon the coming into effect of this Scheme, all suits, -
 actions and proceedings by or against the Transferor Company pending
 and/or arising on or before the Effective Date shall be continued and
 be enforced by or against the Transferee Company as effectually and in
 the same manner and to the same extent as if the same had been pending
 and/or arising by or against the Transferee Company.
 
 (b) The Transferee Company undertakes to have all legal or other
 proceedings initiated by or against the Transferor Company referred to
 in sub-clause (a) above transferred to its name and to have the same
 continued, prosecuted and enforced by or against the Transferee
 Company.
 
 1.5 (a) Upon the coming into effect of this Scheme, and subject to the
 provisions of this Scheme, all contracts, deeds, bonds, agreements,
 arrangements and other instruments (including all tenancies, leases,
 licenses and other assurances in favour of the Transferor Company or
 powers or authorities granted by or to it) of whatsoever nature to
 which the Transferor Company is a party or to the benefit of which the
 Transferor Company may be eligible, and which are subsisting or having
 effect immediately before the Effective Date, shall, without any
 further act, instrument or deed, be in full force and effect against or
 in favour of the Transferee Company, as the case may be, and may be
 enforced as fully and effectually as if, instead of the Transferor
 Company, the Transferee Company had been a party or beneficiary or
 obligee thereto. The Transferee Company shall, at any time prior to the
 Effective Date, wherever necessary, enter into, and/or issue and/or
 execute deeds, writings, confirmations, any tripartite arrangements or
 novations to which the Transferor Company will, if necessary, also be a
 party in order to give formal effect to the provisions of this Clause.
 
 (b) The Transferee Company may, at any time after the coming into
 effect of this Scheme in accordance with the provisions hereof, if so
 required, under any law or otherwise, enter into, or issue or execute
 deeds, writings, confirmations, novations,, declarations, or other
 documents with, or in favour of any party to any contract or
 arrangement to which the Transferor Company is a party or any writings
 as may be necessary to be executed in order to give formal effect to
 the above provisions. The Transferee Company shall be deemed to be
 authorised to execute any such writings on behalf of the Transferor
 Company to carry out or perform all such formalities or compliances
 required for the purposes referred to above on the part of the
 Transferor Company.
 
 (c) In particular, upon the Scheme becoming effective, with effect from
 the Appointed Date, all licenses, approvals, registrations and
 permissions of the Transferor Company (including factory and excise
 licenses) shall vest in the Transferee Company and the concerned
 licensors and grantors of such approvals, registrations and permissions
 shall forthwith endorse and record the Transferee, Company on such
 approvals, registrations, permissions and licenses and facilitate the
 vesting of the said Assets of the Transferor Company in the Transferee
 Company without any hindrance with effect from the Appointed Date.
 
 (d) The Transferor Company is entitled to various benefits, excise
 credits under incentive schemes and policies under various laws,
 regulations and notifications, including relevant state excise laws.
 Pursuant to this Scheme, it is declared that the benefits under all of
 such incentive schemes and policies shall automatically be transferred
 to the Transferee Company, without any further act or deed and shall be
 appropriately novated by the respective statutory authorities in favour
 of the Transferee Company. All such benefits, entitlements and
 incentives of any nature what-so-ever, including sales tax concessions,
 excise credits and incentives shall be claimed by the Transferee
 Company and these shall relate back to the Appointed Date as if the
 TransfereeCompany was originally entitled to all such benefits,
 subject to the continued compliance by the Transferee Company of all
 the terms and conditions pursuant to which the benefits under the
 incentive schemes and policies were made available to the Transferor
 Company.
 
 (e) In so far as the various incentives, subsidies, rehabilitation
 schemes, special status and other benefits or privileges enjoyed or
 availed of by the Transferor Company is concerned, the same shall vest
 with and be available to the Transferee Company on the same terms and
 conditions, without any need for seeking any specific approval in this
 regard.
 
 1.6 Upon the coming to effect of this Scheme:
 
 (a) All the employees of the Transferor Company in service on the
 Effective Date, shall become the employees of the Transferee Company on
 such date without any break or interruption in service and on terms and
 conditions as to remuneration not less favourable than those subsisting
 with reference to the Transferor Company as on the said date. It is
 clarified that the employees of the Transferor Company who become
 employees of the Transferee Company by virtue of this Scheme, shall not
 be entitled to the employment policies, and shall not be entitled to
 avail of any schemes and benefits that are applicable and available to
 any of the employees of the Transferee Company, unless otherwise
 determined by the Transferee Company. The Transferee Company undertakes
 to continue to abide by any agreemenV settlement, if any entered into
 by the Transferor Company with any union/employee of the Transferor
 Company.
 
 (b) The existing provident fund, gratuity fund,, and pension and/or
 superannuation fund or trusts created by the Transferor Company or any
 other special funds created or existing for the benefit of the
 employees of the Transferor Company shall at an appropriate stage be
 transferred to the relevant funds of the Transferee Company and till
 such time shall be maintained separately. In the event that the
 Transferee Company does not have its own fund with respect to any such
 matters, the Transferee Company shall create its own funds to which the
 contributions pertaining to the employees of Transferor Company shall
 be transferred.
 
 (c) It is the aim and intent of the Scheme that all the rights, duties,
 powers and obligations of the Transferor Company in relation to such
 funds or trusts shall become those of the Transferee Company.
 
 2. REORGANISATION OF CAPITAL
 
 2.1. Upon the coming into effect of this Scheme, and in consideration
 of the transfer of and vesting of the Undertaking of the Transferor
 Company in the Transferee Company in terms of this Scheme, the
 Transferee Company shall without any further application, act,
 instrument or deed, issue and allot to the equity shareholders of the
 Transferor Company whose names are recorded in the Register of members
 (the Members) on a date (hereinafter referred to as the Record
 Date) to be fixed by the Board of Directors of the Transferee Company
 or a committee of such Board of Directors, equity shares of Rs. 10/-
 (Rupees ten only) each, credited as fully paid up, in the ratio of 1
 (one) equity share of the face value of Rs. 10/- (Rupees ten only) in
 the Transferee Company for every 2 (two) equity shares of the face
 value of Rs. 10/- (Rupees ten only) each held in Transferor Company. In
 case of Equity Shares to be allotted by the transferee company in
 fraction, it shall be rounded off to the next whole number (the above
 ratio in which the shares of the Transferee Company are to be allotted
 to the shareholders of the Transferor Company by the Transferee Company
 is hereinafter referred to as the Share Exchange Ratio)
 
 2.2 All Equity Shares held by the Transferee Company in the Share
 Capital of the Transferor Company shall stand cancelled.
 
 2.3 Equity shares issued and allotted by the Transferee Company in
 terms of this Scheme shall be subject to the provisions of the
 Memorandum and Articles of Association of the Transferee Company and
 shall rank pari passu in all respect with the then existing equity
 shares of the Transferee Company, including in respect of dividends, if
 any, that may be declared by the Transferee Company, on or after the
 Effective Date.
 
 3. GENERAL TERMS AND CONDITIONS
 
 3.1 (a) With effect from the date of filing of this Scheme
 
 with the High Court of Rajasthan at Jodhpur and upto and including the
 Effective Date, the Transferor Company and the Transferee Company shall
 be entitled to declare and pay dividends, whether interim or final, to
 their respective equity shareholders in respect of the accounting
 period after the Appointed Date and prior to the Effective Date,
 provided that the Transferor Company shall not make any such
 declaration, except with the prior approval of the Board of Directors
 of the Transferee Company.
 
 (b) Until the coming into effect of this Scheme, the holder of equity
 shares of the Transferor Company and the Transferee Company shall, save
 as expressly provided otherwise in this Scheme, continue to enjoy their
 existing rights under their respective articles of association
 including the right to receive dividends, if any.
 
 (c) It is clarified that the aforesaid provisions in respect of
 declaration of dividends, whether interim or final, are enabling
 provisions only and shall not be deemed to confer any right on any
 member of the Transferor Company to demand or claim any dividends
 which, subject to the provisions of the Act, shall be entirely at the
 discretion of the respective Boards of Directors of the Transferor
 Company and the Transferee Company and subject, wherever necessary, to
 the approval of the shareholders of the Transferor Company and the
 Transferee Company, respectively.
 
 3.2 (a) Upon the coming into effect of this Scheme and with effect from
 the Appointed Date, for the purpose of accounting for and dealing with
 the value of the assets and liabilities of the Transferor Company in
 the books of the Transferee Company, the fair value of the assets and
 liabilities of the Transferor Company shall be determined as of the
 Appointed Date, and accounted appropriately.
 
 (b) Any excess of the fair value of the net assets (determined as per
 sub-clause (a) above) of the Transferor Company over the paid-up value
 of the shares to be issued and allotted pursuant to this Scheme
 (including in terms of Clauses 9 and 11 hereof), shall be accounted for
 and dealt with in the books of the Transferee Company as follows:
 
 (i) The balance in Capital Reserve and the Profit and Loss Account
 of the Transferor Company shall be transferred and aggregated to the
 corresponding Capital Reserve and the Profit and Loss Account, as the
 case may be, in the books of the Transferee Company;
 
 (ii) The net balance thereof shall be credited by the Transferee
 Company to its Securities Premium Account
 
 3.3. If considered appropriate for the purpose of application of
 uniform accounting methods and policies between the Transferor Company
 and the Transferee Company, the Transferee Company may make suitable
 adjustments and reflect the effect thereof in the General Reserve of
 the Transferee Company.
 
 3.4. Upon the coming in to effect of this Scheme;
 
 (a) Clause V of the Memorandum of Association and Article 4 of the
 Articles of Association of the Transferee Company (relating to the
 authorised share capital) shall, without any further act, instrument or
 deed, be and stand altered, modified and amended pursuant to Sections
 16,31,94 and 394 and other applicable provisions of the Act, as the
 case may be, in the manner set out below and be replaced by the
 following clause:
 
 The authorised share capital of the Company is Rs. 9,25,00,000/-
 (Rupees Nine Crores Twenty Five Lacs Only) consisting of 90,50,000
 (Ninety Lacs Fifty Thousand) equity shares of Rs. 10/- (Rupees Ten
 only) each and 20,000 (Twenty Thousand) preference shares of Rs. 100/-
 (Rupees Hundred only) each, with power to increase or reduce the
 capital of the Company and to divide the shares in the capital for the
 time being into several classes and to attach thereto respectively such
 preferential, deferred, qualified or special rights, privileges or
 conditions as may be determined by or in accordance with the Articles
 of Association of the Company and to vary, modify, amalgamate or
 abrogate any such rights, privileges or conditions in such manner as
 may be for the time being be provided by the Articles of Association of
 the Company.
 
 3.5 All costs, charges and expenses, including any taxes and duties of
 the Transferor Company and Transferee Company respectively in relation
 to or in connection with this Scheme and incidental to the completion
 of the amalgamation of the Transferor Company in pursuance of this
 Scheme shall be borne and paid by the Transferee Company.
 
 10. Segment Accounting
 
 The Company is a Textile Process House and there is no other activity
 Accordingly the Management is of the view that the reporting in
 relation to Segment as required by AS-17 Segment Reporting are not
 applicable.
 
 11. Expenses in Foreign currency on traveling are Rs. 243384
 
 12. Value of Import on CIF Basis is Rs. NIL. Raw materials and
 components used have been indigenously obtained.
 
 13. The Profit & Loss Account and Balance Sheet comply with the
 Accounting Standards reffered to in sub section (3C) of section 211 of
 the Companies Act, 1956.
 
 14. Figures of the previous year have been regrouped & rearranged
 wherever found necessary to make them comparable.