As on 31.3.2004 As on 31.32003
                                                    (Rs.)          (Rs.)
 1. Contingent Liabilities not
 provided for in respect of -
 
 a) Guarantees given by banks                   1,375,000     17,327,210
 
 b) Bills drawn, accepted and discounted
 (Secured by Personal Guarantee of Mr.
 Mukund Choudhary, Mr. Ajay   Kumar
 Choudhary and Mr. Kapil Choudhary).          248,718,965     61,783,554
 
 c) Claims not acknowledged as debts                    -            Nil
 
 Duty demand on indigenous
 cotton waste clearance                         6,361,559            Nil
 
 2. Estimated amounts of contracts
 remaining to be executed on capital
 accounts and not provided for (net of advances)      Nil            Nil
 
 3. Term Loans from Banks are secured by first pari passu charges on
 Land & Building and Plant and Machinery lying at B-1, MIDC, Chincholi -
 Kondii, Solapur, Maharashtra and personal guarantee of Mr. Ajay Kumar
 Choudhary, Mr Mukund Choudhary and Mr. Kapil Choudhary. Cash credit
 facility from Bank is secured by first pan passu charge on current
 assets (entire stocks of raw material, stock-in-process and finished
 goods of the Company lying in factory godowns or elsewhere, including
 goods in transit and book debts and personal guarantee of Mr. Ajay
 Kumar Choudhary, Mr. Mukund Choudhary and Mr. Kapil Choudhary with
 State Bank of India and & ING Vysya Bank Ltd.
 
 4. Export Packing Credit is secured by First charge on stockes of raw
 material, stocks-in-process and finished goods lying in factory godowns
 or elsewhere including goods in transit with State Bank of India.
 
 5. Secured loans to the extent of Rs. 27,554,387/- are repayable
 within one year (previous year Rs. 1.527.256/-).
 
 6. As per the opinion received by the Company from the technical
 experts, the Plant and Machinery of the Company has been treated as
 Continuous Process Plant as defined under Schedule XIV of the
 Companies Act, 1956. Consequently depreciation on such assets is
 provided at the rate prescribed under Schedule XIV for Continuous
 Process Plant.
 
 7 Managerial remuneration :
 
                                             2003-2004         2002-2003
                                                 (Rs.)             (Rs.)
 
 a) Salaries                                 1,900,000         1,800,000
 
 b) Perquisites - Rent free accommodation
 - Others (valued as per Income Tax Act, 1961)
 
 c) Contribution to Provident & Other Funds
 
 8. Auditors remuneration :
 
 a) Audit Fees                                  81,000            30,000
 
 b) Tax Audit                                   18,360            11,000
 
 9. The exchange differences arising on settlement or on year end
 updation of foreign currency assets and liabilities are recognised in
 the respective heads of income/expenditure. Accordingly, Sales includes
 unfavourable exchange difference of Rs. 17424/- (Previous year Rs.Nil)
 and expenses accounted for in respective heads of accounts includes
 favorable exchange difference of Rs. Nil (Previous year unfavourable
 exchange difference of Rs. Nil).
 
 10. ICICI Bank Ltd had assigned outstanding principle amount of Rs.
 137,926,000/- to Company against the loan of Spentex Industries Ltd.
 for a sum of Rs. 189,807,705.74. The reduced amount of loan has been
 receivable from Spentex Industries Ltd and payable to ICICI in the
 books of accounts of the Company. In case of any payment default made
 by the Company, ICICI shall have a right to re-assign the entire
 outstanding amount to Spentex Industries Ltd. However the bankers of
 Spentex Industries Ltd have sanctioned Term Loan after the date of
 Balance Sheet with a condition that disbursement shall be made directly
 to the respective lenders ie. ICICI Bank Ltd., the Companys liability
 as well as loan and advance to Spentex stands nil
 
 16. In accordance to the Accounting Standard dealing with Segment
 Reporting (AS 17), issued by the Institute of Chartered Accountants
 of India, the Company is dealing in Trading of Textile Fabric,
 Structure Steel, Ferro Alloys, Cotton, Coke and manufacturing of Cotton
 Yarn the Company consider the same as Primary segment. Company is
 operating in two geographical segments by location of customers viz.
 Exports and Domestic market. The Company considers geographical segment
 as a primary segment and there is no secondary segment identified. The
 Segment wise disclosure is as follows:
 
 17. Following disclosure has been made as per the requirements of
 Accounting Standard 18 on Related Party Disclosures (AS 18),
 issued by the Institute of Chartered Accountants of India -
 
 A] List of related parties with whom transactions have taken place and
 relationship :
 
 i) Enterprises/Individuals exhibiting significant influence:
 
 1. CLC Corporation
 
 2. CLC Technologies Ltd.
 
 3. Shri Hanuman Textile Agencies
 
 ii) Key Management Personnel and their Relatives
 
 Mr. Ajay Kumar Choudhary - Chairman
 
 Mr. Mukund Choudhary - Managing Director
 
 Mr. Kapil Choudhary - Whole Time Director
 
 18. The Company has applied the Accounting Standard dealing with
 Accounting For Taxes on Income (AS 22 ), issued by the Institute of
 Chartered Accountants of India. Deferred Tax asset on book loss is not
 created on account of uncertainty of future profitability. Further
 there is no current tax on account of book loss and loss as per Income
 Tax Act.
 
 19. Previous years figures have been regrouped or rearranged wherever
 necessary