1. Figures have been rounded off to nearest rupee.
 
 2. Previous year figures have been regrouped/rearranged wherever
 necessary.
 
 3. In the opinion of the Board the Current Assets, Loans and Advances
 have a value on realisation in the ordinary course of business at least
 equal to the amount at which these are stated in the Balance Sheet and
 that the Provision for known Liabilities is adequate and not in excess
 of amount reasonable and necessary. There are no Contingent Liabilities
 other than those stated below :
 
 a. Bank Guarantee given by Company's Banker: Rs.5.10 lakhs (Previous
 Year - Rs.5.10 lakhs)
 
 b. Bills Discounted from Company's Banker: Rs.NIL (Previous Year -
 Rs.6.95 lakhs)
 
 c. Sales Tax/Entry Tax Demand (Under Appeal): Rs.37.13 Lakhs (Previous
 Year - Rs.11.56 lakhs)
 
 d. Mandi Tax Demand (Under Appeal): Rs.13.64 Lakhs (Previous Year -
 Rs.13.64 lakhs)
 
 e. Further Interest and Liquidated Damages demand on Term Loans from
 IDBI - Rs.NIL (Previous Year - Rs.0.85 lakhs)
 
 f. Income Tax Demand (Under Appeal) : Rs.2.43 lakhs (Previous Year -
 Rs.2.43 lakhs)
 
 4. The outstanding balances under the head Sundry Debtors, Sundry
 Creditors, Loans & Advances are subject to confirmation.
 
 5. The computation of Net Profit (for the purpose of calculation of
 Managerial remuneration under section 349 of the Companies Act, 1956)
 need not be enumerated as no commission has been paid in pursuance of
 Section 198 and Section 309 read with Schedule XIII of the Companies
 Act, 1956.
 
 6. Estimated amount of contract (net of advances) remaining to be
 executed on capital account and provided for - Rs.8.55 lakhs (Previous
 Year - Rs.7.47 lakhs)
 
 7. Excise duty on the goods lying in bonded warehouse aggregating
 Rs.956,073/- (Previous year - Rs.323,113) has been provided and
 included in valuation of inventory. However there is no effect of this
 provision, on profit for the year or reserves as at 31st March, 2003.
 
 8. The disclosure in respect of amount dues to Small Scale Industrial
 undertakings is based on the information available with the Company
 regarding the status of supplier as Small Scale Industrial Undertaking
 under the Industries (Development & Regulation) Act, 1951.
 
 List of small scale industrial undertakings to whom the company owes
 sum for more than 30 days as on 31.03.2003, areas under : M/s Shanker
 Ginning & Pressing, M/s Garg Ginning Udhyog, M/s Agrawal Ginning &
 Pressing, M/s Mahavir Tiles Udhyog, M/s Narendra Industries.
 
 9. Unclaimed dividend includes amount of dividend relating to equity
 shares on which allotment money remains unpaid.
 
 10. No provision has been made for interest receivable on allotment
 money remaining unpaid in respect of equity shares.
 
 11. In view of carry forward losses and unabsorbed depreciation and
 other available deductions the Company does not have any taxable
 income.
 
 12. The company has received a sum of Rs. 80,90,940/- from the New
 India Assurance Company Ltd on 13th July 2000 towards insurance claim
 in respect of the loss of stock by fire on 9th March, 1998 The company
 has filed a petition with the National Consumer Forum, New Delhi for
 recovery of Rs. 33,17,530/- being the difference in the amount of
 Insurance Claim as filed by the company and the amount actually paid by
 the insurance company. The company has also lodged a claim for recovery
 of the interest for extra-ordinary long delay in payment of the claim
 by the Insurance Company.
 
 13. The Property rights of Vehicle purchased under Hire Purchase Scheme
 from Banks is subject to Hire Purchase Agreements the principal amount
 outstanding as on 31st March, 2003 is Rs.458,333/- (Previous Year Rs.
 98.303/-)
 
 NOTES:
 
 i) The net deferred tax assets of Rs.1,355,958/- arising during the
 year.
 
 ii) The Company expects to generate taxable income in the coming years
 which will enable it to utilise the carried forward unabsorbed
 depreciation/carried forward business losses.
 
 14. No amount has been provided as doubtful debts or advances/written
 off or written back in the year in respect of debts due from or to
 above related parties.
 
 15. SEGMENT REPORTING
 
 a. Primary Segment
 
 Business Segment: The Company is primarily engaged in the business of
 Cotton Ginning and Spinning of Cotton Yarn As the basic nature of these
 activities are governed by same risk and returns, these have been
 grouped as single segment i e Textile Therefore, segmentwise revenue,
 results and capital employeed have not been disclosed.
 
 b. Secondary Segment
 
 Geographic Segment The geographic segments identified as secondary
 segments are `Domestic Market' and Export Market Since there is no
 export during the year the same has not been disclosed. The entire
 capital employed is within India.