1. CONTIGENT LIABL1ITIES NOT PROVIDED FOR
 
                                 As on 31.03.2010    As on 31.12.2008
 Particulars                         (Rs.)               (Rs.)
 
 Central Excise demand 
 under appeal/ disputes             22,03,839          22,03,839
 
 
 2.  The Accounts for the period have been prepared on a Going concern
 basis since the Modified Draft Rehabilitation cum Merger Scheme ofthe
 Company with its Associate, Gandhimathi Appliances Limited is under
 consideration of Honble BIFR. BIFR, vide its order dated 15.07.2009
 has already granted in-principle approval for the said merger.
 
 3.  In view of a sum of Rupees five crores borrowed from an Associate
 Company converted into an interest free loan w.e.f 1st January 2009, no
 interest becomes payable by the Company on the said loan from that date
 and hence no interest is provided for in the accounts during the period
 under review.
 
 4.  The Corporate Guarantee of Rs.22.50 crores extended to a lender in
 respect of monies borrowed by the Promoters, their relatives and
 associates has been cancelled, as the aforesaid liability has been
 taken over by an associate company, Gandhinhathi Appliahces Ltd (GMAL),
 during the period in anticipation of the proposed merger ofthe Company
 with the said associate company, GMAL.
 
 5.  As required under Section 194Aof the Income Tax Act, 1961, the
 Company is required to deduct income tax at source and pay the same to
 the Government even if actual payment of interest is not made but a
 provision for such interest is made in the accounts. Since the Company
 is a Sick Company and facing serious financial problems, the Company
 is not in a position to make payment of tax to be deducted at source to
 the Government as stated above and hence the Company has not made any
 provision for interest payable of Rs.39.00 lakhs (previous period -
 Rs.50 lakhs). Consequently, the loss for the period has been
 understated to an extent of Rs.39.00 lakhs and the debit balance in the
 Profit and Loss account and the corresponding liability are understated
 to that extent.
 
 6.  The particulars required to be disclosed under the Mtcro, Small &
 Medium Enterprises Development Act, 2006 relating to unpaid balances,
 interest payable thereon to Small Scale Industries as defined in the
 said Act could not be disclosed for want of information on whether
 sundry creditors include dues payable to any such undertakings.
 
 7.  In terms ofthe understanding which the Company had reached in
 earlier years with certain suppliers on account of its acute financial
 crisis, the payment due to these suppliers has been re-classified under
 Unsecured Loans-Others*. Accordingly Unsecured Loan Others reflected
 in Schedule 2 hereof is inclusive of such balances of those creditors
 aggregating Rs.94.35 lakhs (previous yeaf Rs. 105.39 lakhs).
 
 8 Figures for the previous year have been regrouped/ recast wherever
 necessary to conform to the current periods classification
 
 9 Figures for the current financial year which is for a period of 15
 months are not strictly comparable with the figures of previous year
 which comprises of a period of 6 months.