NOTES TO ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2006 
 
                                                                (Rs.in Lacs) 
                                                        As At        As At 
                                                      31.03.2006  31.03.2005 
 1. Contingent Liabilities not Provided for 
 
 I)   Guarantees issued by Banks.                        194.00       184.00 
 II)  Letters of Credit (Unexpired) net 
      of Margin.                                          96.40       152.90 
 III) Show cause notices/Demands of Excise 
      Authorities not acknowledged by the 
      Company since the matters are disputed 
      and are contested/appealed/replied.               1148.41       128.70 
 IV)  Demands raised by the Income Tax 
      Department and are under appeal                      2.74         2.74 
 V)   Demands raised by the Sales Tax 
      Department and are under appeal                    236.07       236.58 
 VI)  Import Duty obligations on outstanding 
      export commitment under EPCG Scheme                 19.13       124.70 
 VII) Amount of Custom Duty/Excise Duty payable 
      in respect of capital goods by the Company 
      against bond in case of non fulfillment 
      of conditions imposed on Software Technologies 
      Park of India (STPI) Unit.                         195.87       195.87 
 
 2. Chairman & Managing Director of the Company is also Chairman & Managing 
 Director of Flex Industries Limited. After reckoning the remuneration drawn from 
 Flex Industries Limited, no amount is payable to him by the Company in terms of 
 the Provisions of the Companies Act, 1956 & rules there under and hence no 
 provision for the same is required in the accounts. 
 
 3. The previous year figures have been recast/regrouped wherever considered 
 necessary. 
 
 4. Figures have been rounded off to the nearest thousand. 
 
 5. In the opinion of the Board and to the best of their knowledge, the value on 
 realisation 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. 
 
 6. Some of the parties balances are subject to confirmation and/or 
 reconciliation. 
 
 
 
 Signed on : 26th July 2006