1.  CONTINGENT LIABILITIES NOT PROVIDED FOR :
 
                                              As at          As at
                                           31-03-2008     31-03-2007
                                              Rupees         Rupees
 
 - Claims not acknowledged as debts         1,712,276      1,712,276
 - Arrears of Dividend on Cumulative 
 Preference Shares                          4,320,000      3,600,000
 
 2.  SEGMENT REPORTING :
 
 The Company has disclosed business segment as the primary segment.
 Segments have been identified taking in to account the nature of
 products, the differing risks & returns & the organisation structure.
 
 3.  In the opinion of the Board of Directors, the Current Assets, Loans
 and Advances are approximately of the value stated, if realized in the
 ordinary course of business. The provisions for depreciation and all
 known and ascertained Liabilities are adequate and not in excess of the
 amounts reasonably necessary.
 
 4.  Balances of Debtors, Creditors, loans and advances and balances in
 Current Account with Banks and UBI Book Debt. A/a, IDBI, GIIC & GSFC
 are subject to confirmation from the respective Parties
 
 5.  Certain Balance of Stock, most of the balances of Debtors,
 Creditors & Loans & Advances are non moving/slow moving. However in
 view of management the same is payable, or part are receivable & hence
 no provision for the same is made in Books of accounts.
 
 6.  During the year IDBI has not charged interest of Rs. 234.98 lacs
 on term loan for the year. As the assessee account was classified as
 Non Performing Assets (NPA) by IDBI. However the company has debited
 interest of Rs. 234.98 lacs for the year ending on 31st March, 2008 to
 its Profit & Loss Account and same is subject to confirmation from
 IDBI.
 
 7.  Assessess account was classified as Non Performing Assets (NPA)
 by UBI during the year 2006-07.  As the bank has not debited interest
 for the year under review company has also not charged the interest to
 profit and loss account for the year under review had it been debited
 to the loan for the year would have been higher and bank cash credit
 account would have been higher amount not quantified.
 
 8.  During the financial year 2004-05 M/s. IDBI Ltd. had reduced the
 rate of interest on the term loan and accordingly, one time upfront
 charges of Rs. 95,19,502/- are payable to IDBI @ 50% of NPV of forgone
 amount. The said amount is treated as Deferred Revenue Expenditure, and
 proportionate amount for the current year has been charged to the
 Profit and Loss Account.
 
 9.  Inventories are as taken, valued and certified by a Director.
 
 10.  The company has not received information from suppliers regarding0
 their status under the Micro, Small & Medium Enterprises Development
 Act,2006. Hence, Disclosure, if any relating to amounts unpaid as at
 the balance sheet date together with interest paid or payable as per
 the requirement under the said Act, have note been made.
 
 11.  Previous Years Figures have been regrouped/rearranged wherever
 necessary, to make them comparable with those of current years
 figures.
 
 12.  Wherever the external evidences are not available, we have relied
 on internal evidences and representations by the management.
 
 13.  During the year under review company has discontinue manufacturing
 activities of CDR Division. However it has been informed that the
 company is planning to commence business activities of CDR Division &
 therefor the accounts have been prepared on going concern basis.