1.1  Terms / Rights attached to Equity Shares :
 
 The Company has Issued only one class of shares referred to as equity
 shares having a par value of Rs.10/- per share. All equity shares carry
 one vote per share without restrictions and are entitled to dividend,
 as and when declared. All shares rank equally with regards to the
 Company''s residual assets.
 
 During the year ended 31 st March, 2012. the amount of per share
 dividend recognized as distributions to equity shareholders was Rs NIL
 (31 st March, 2011 Rs Nil.).
 
 In the event of liquidation of the Company, the holders of Equity
 Shares will be entitled to receive remaining assets Df the Company. The
 distribution will be in proportion to the number of equity shares held
 by the shareholders,
 
 2 a) In pursuance of the order dated 24th September 2002 of Hon''ble 
 Supreme Court, the company has been held liable for payment of Excise 
 duty on its Finished product (Fur Fabrics). In pursuance of the said 
 order the Central Excise Authorities has asked the company to pay 
 amount of Rs 1 45 78 305/- towards Central Excise duty payable on 
 the goods cleared by the company during the period from 20.10.1987 
 to 31.07.1990. The company has accordingly provided a sum of 
 Rs 1,45,78,305/- towards Central excise duty liability in its accounts 
 during the year ended 31st March 2003. The company has however not 
 provided for interest on the demand of Rs 1,45,78,305/- from the date 
 of the Order of the Honble Supreme Court.
 
 b) In pursuance of the order dated 30th November 2004 of Additional
 Commissioner, Central Excise, Mahad, the Company has been held liable
 for demand of BED AED and AD (T & T) under section 11 A of Central
 Excise Act. 1944 on Its finished products Fur Fabrics. In pursuance of
 the said order the Central Excise authorities had asked the company to
 pay w amount of Rs 1,60,29,381/- towards Central Excise Duty payable on
 goods cleared by Company during the period from Sept 1996 to Nov 2000
 the company accordingly provided a sum of Rs 1,60,29,381/- towards
 Central Excise Duty liability in its account during the year ended 31st
 March 2005. The company has however not provided for interest on demand
 of Rs 1,60,29,381/-from the date of order.
 
 3 in pursuance of the order dated 16th March 2005 of Assistant
 Commissioner, Central Excise. Mahad. the Company has been held liable
 for demand of short payments arising out of the finalisation of the
 provisional assessment of its finished products Fur Fabrics. In
 pursuance of the said order the Central Excise authorities had asked
 the company to pay an amount of Rs 2,29,16,596/- towards Central Excise
 Duty payable on goods cleared by Company during the period from
 24.03.1987 to 31.05.1994 the company accordingly provided a sum of Rs
 2,29,16,596/- towards Central Excise Duty liability in its account
 during the year ended 31st Mardr2O05.
 
 4. In pursuance of the order dated 19th December, 2006 of The
 Commissioner, Central Excise (ADJ), Mumbai, the Company has been held
 liable for demand of duty under section 11 A (2) of Central Excise Act,
 1944 for Rs 2,22,34,776/- and also penalty imposed of Rs 2,00,91,308/-
 u/s 11 AC and Rs 5,00,000/- under rule 209 of CER.1944 regarding its
 deemed export transactions under 100% EOU with GCU Ltd, during the
 period August 1996 to July 1998. Although the company has disputed the
 same and filed appeal against the same before the Appellate Tribunal
 u/s 35B of the Central Excise Act, the Company has provided for total
 amount of Duty and Penalty amounting to Rs 4,26,26,086/- towards
 Central Excise Duty liability in ils accounts during the year ended 31
 st March 2007. The adjustments if any will be made In the books of
 accounts in the year as & when the appeal is decided.
 
 5.  In the opinion of the Board of Directors the company except that
 there would be no liabilty of custom duty & other charges payable Rs
 556.00 Lacs (Approx) on raw materials imported under Duty Exemption
 Scheme for non - fulfilment of Export obligation due to major fire in
 the factory premises of the company on 26th May 1993, hence no
 provision for the same has been made in the books of account.
 
 6.  In the opinion of the Board of Directors, all the assets other
 than Fixed Assets and Non Current Investments have a value on
 realisation in the ordinary course of business at least equal to the
 amounts at which they are stated in the Balance Sheet,
 
 7.  a) Some of the books and records of the company pertaining to
 previous financial years taken by the central excise authorities on
 01/02/1997 are still lying with concerened Authorities. The accounts
 for the previous financial years therefore were reconstructed and
 reconciled from available Information and records. Adjustments as may
 be deemed necessary will be made in the accounts after the release of
 the Books and records by the concerned authorities.
 
 b) Some of the books and records of the company pertaining to previous
 financial years taken by the central excise authorities on 23.07.96 are
 still lying with concerened Authorities. The accounts for the previous
 financial years therefore were reconstructed and reconciled from
 available information and records. Adjustments as may be deemed
 necessary will be made in the accounts after the release of the Books
 and records by the concerned authorities.The company Is therefore not
 in a position to ascertain the quantum of liability if any arising and
 therefore the same will be provided as and when demand is raised.
 
 8.  RELATED PARTY TRANSACTIONS :
 
 As per Accounting Standard -18 on Related Party Disclosure, related
 parties of the Company are disclosed below :
 
 A.  List of Related Parties (As certified by the management).
 
 1) Associate Companies
 
 1. Premier Consultant & Traders Limited
 
 2) Key Management Personnel Including Relatives
 
 a) Shri M O Shanbhag     - Director
 
 b) Shri Rajendra M Bolya - Director
 
 B.  Transactions with related parties
 
 
 
 Nature of Transactions         2011-12          2010-11
                               (RS)             (RS)
 
 Loans, Advances and Deposits
 Received                        996500          1153500
 
 
 
 
 
 9.  SEGMENT REPORTING
 
 The Company Is operating in one segment only i.e. Textiles, but during
 the year there is no business conducted by the Company, hence no
 segment reporting is given.
 
 10.  There are no Micro, Small and Medium Enterprises, as provided
 under the Micro, Small and Medium Enterprises Development Act, 2006, to
 whom the company owes dues, which are outstanding for more than 45 days
 as at Balance Sheet date.
 
 11.  In view or the Losses during the year, the company does not have
 taxable Income, hence the Provision for current Income Tax has not been
 made.
 
 12.  The Revised Schedule VI has become effective from 1 April 2011 for
 the preparation of Financial Statements. This has significantly
 impacted the disclosures and presentation made In these Financial
 Statements. Previous year''s figures have been regrouped / rearranged /
 reclassified wherever necessary to confirm with current year''s
 classification / disclosure.