I.  SECURED LOANS
 
 a) Nature Of Security
 
 i) Term Loan from RIICO
 
 The company has availed project terms loan of Rs. 3800.00 lacs from
 RIICO i.e. 828.95 lacs against Land and 281.25 lacs swapping of term
 loan from Axis Bank & balance Rs. 2689.80 lacs for building and Plant &
 Machinery stands. Disbursed Rs.3226.16 Lacs upto 31.03.2012. Secured by
 way of equitable mortgage / hypothecation of fixed assets present &
 future of the company by pari-passu first charge (in terms of
 Intercreditor and Security Sharing Agreement executed with DEG, Germany
 on 19.12.2008) & guaranteed by Managing Director and secured by
 pari-passu second charge on current assets present & future.
 
 ii) External Commercial Borrowing (ECB) from DEG, Germany
 
 The Company has executed ECB Loan Agreements viz Loan Agreement - I dt.
 18.12.2007 for US $ 8 Mn. [FC Expenditure] and other Loan Agreement -
 II dt. 07.07.2008 for US $ 4 Mn. (stands disbursed on 11.02.2009)
 [Rupee Expenditure] with M/s. Deutsche Infestations- und
 Entwicklungsgesellschaft mbh, Federal Republic of Germany, for capacity
 expansion & modernisation. The above Loan is secured by first ranking
 mortgage on the present and future immovable assets and first ranking
 hypothecation on all present and future movable assets (other than
 current assets and stocks)
 
 iii) Term Loans from Technology Development Board / ICICI Bank Ltd.
 
 Secured by hypothecation of specific assets purchased there against and
 guaranteed by Managing Director. Secured by an exclusive charge by way
 of hypothecation on all movable properties under the Sponsored Research
 & Development program of World Bank (SPREAD) under the agreement dated
 6th August, 2003.
 
 iv) Term Loans from Religare Finvest Ltd.
 
 The Company has been sanctioned term loan of Rs. 350.00 lacs from
 Religare Finvest Limited for purchase of Plant & Machinery out of which
 only Rs. 276.57 lacs was disbursed. This term loan is secured by
 hypothecation of specific assets purchased out of term loan and further
 guaranteed by the Managing Director & Executive Directors of the
 Company.
 
 v) Working Capital Loans from banks
 
 Secured by hypothecation of stock of finished goods, semi finished
 goods raw material, consumable stores and book debts of the company.
 These securities rank pari-passu in favour of various banks viz. State
 Bank of Travancore, Canara Bank, Central Bank of India, State Bank of
 India, DBS Bank & Exim Bank. Secured by second charge by way of
 equitable mortgage of fixed assets and guaranteed by Managing Director.
 
 b) Non fund based limits
 
 Assets charged with Bank also cover security for these limits.
 
 II.  UNSECURED LOANS
 
 a) Ministry of Science and Technology under the aegis of CSIR, has
 approved a Project under ''NMITLI'' scheme on 30.03.2008 and had
 sanctioned unsecured soft loan of Rs. 1503.55 lacs @ 3% rate of
 interest out of which Rs. 1493.35 lacs stands disbursed.
 
 b) Lending from LIC Mutual Fund amounting to Rs. 21.70 Crores, secured
 by way of issuance of 217 Nos i.e.(during the year company redeemed 8
 Nos of NCD at par) Unsecured Redeemable Non-Convertible debentures of
 Rs. 10 Lacs each. This was pronounced surplus on objective, being
 attained from internal accruals and other sources. In order to save the
 interest cost to profitability, lending was assigned, who took over the
 said debt and indemnified repayment along with interest accruing.
 
 III. CAPITAL COMMITMENTS
 
 Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs.370.57 lacs (Rs. 746.57 lacs) relating
 to purchase of Plant & machinery.
 
 IV.  RE-LOCATION PROGRAMME
 
 The company has acquired Lease Hold Industrial Plot measuring 50,340
 sq.mt from Rajasthan State Industrial Development & Investment
 Corporation Ltd. (RIICO), Jaipur vide Plot No. SP2 - 173 & 174, at
 Industrial Area Kahrani (Bhiwadi Extn.) Distt, Alwar (Rajasthan) for
 relocation of its existing manufacturing unit.
 
 V.  CONTINGENT LIABILITIES                        2012         2011
 
                                              Rs. In lacs   Rs. In lacs
 
 i) Claims against the company not 
 acknowledged as debts.                           25.93        22.49
 
 ii) Disputed Excise duty (including 
 penalty of Rs. 215.68 lacs), under appeal 
 before Central Excise & Serv-                   421.36       421.36 
 ice Tax Appellate Tribunal (Rs.50 lacs 
 paid as deposit and shown under loans 
 and advances Schedule - IX )
 
 iii) Disputed from Director General of 
 Foreign Trade (DGFT) for issue show 
 case notice relating to not fill                150.72       150.72
 full export obligation
 
 iv) Income Tax Demand notice issued by
 ACIT. Company not acknowledge as debts,
 appeal pending before                            41.95        23.45 
 the CIT (appeal) - VI
 
 v) Cheques discounted with Banks                 48.76       123.73
 
 vi)  Guarantees given by Banks
 (excluding liabilities provided)                136.10       113.10
 
 vii) The company is contingently liable 
 for payment of interest on delayed 
 payments made beyond the ap-                     54.56        59.13
 pointed day during the financial year 
 as well as on outstanding amount at the 
 year end to Micro, Small, and Medium 
 Enterprises under the provisions of
 Section 16 of The Micro, Small, and 
 Medium Enterprises Development Act, 2006.
 
 VI. CURRENT ASSETS, LOANS AND ADVANCES
 
 i) Basis of quantitative particulars given below under item XIV is as
 under;
 
 (1) Production figures have been ascertained on the basis of production
 report summaries. The opening and closing balances of finished goods
 are based on stock records and physically verified inventories. Sales
 quantities have been furnished on the basis of sales invoices.
 
 (2) The quantities of different classes of raw materials and components
 consumed have been derived by posting in a separate ledger, the opening
 quantities & purchases and deducting there from the closing stock. The
 quantities for different items have not been ascertained from stock
 cards. The Company is still to introduce a procedure for correlation of
 materials consumed with production.
 
 (3) Stock of semi - finished, raw material and finished goods includes
 slow moving and non-moving stock of Rs.16.27 lacs (16.05lacs). In the
 opinion of the Management, no reduction is considered necessary in the
 value of the stocks.
 
 (4) Semi - finished goods have been ascertained on the basis of
 physical verification.
 
 (5) Finished Goods comprise of varied specifications and include a
 number of components. In the absence of a scientific system of costing
 in vogue, value of closing stock is worked out, as in the past, by
 reducing from the selling price, an appropriate margin towards profit &
 selling expenses.
 
 (6) In the opinion of the Board and to the best of their knowledge and
 belief, Value of realization of current assets, loans and advances in
 the ordinary course of business would not be less than the amount at
 which they are stated in the balance sheet. Balance of personal
 accounts are subject to confirmation for the respective parties.
 
 VII. Previous year figures have been regrouped & rearranged, wherever
 required to conform to the revised presentation of accounts.
 
 Note: - Figures in brackets are in respect of previous year
 
 VIII. Notes to financial statements form an integral part of financial
 statements.