1. Secured Loans from Banks and Financial Institutions have been
 guaranteed by the Managing Director and Executive Director of the
 Company. No guarantee commission has been paid to any director in this
 connection. Security details of the said loans are:-
 
 i.  TERM LOANS
 
 (a) TUF Loan Rs.150 million
 
 (b) TUF Loan Rs. 95 million
 
 (c) Funded Interest Term Loan (FITL) Rs.4.94 million
 
 Above term loans sanctioned by IDBI are secured by extension of first
 charge on all assets of the Company, present and future, except to the
 prior charge created/ to be created (i) on specific assets covered by
 loans from other financial institutions and banks (ii) on specified
 movables (Current Assets) in favour of the Company''s Bankers for
 working capital borrowings.
 
 (d) TUF Loan Rs.76.10 million
 
 (e) FITL Rs. 2.36 million
 
 The Term Loan availed from Corporation Bank is secured by way of
 exclusive charge over the assets created out of the said loan.
 
 (f) TUF Loan Rs.190 million & Non TUF Loan Rs.15 million
 
 (g) FITL Rs.20.79 million
 
 
 The Term Loan sanctioned by State Bank of India is secured by exclusive
 first charge over the asset financed under the term loan and second
 charge on the entire current assets of the Company on pa passu basis
 and extension of charge on the fixed assets of washing unit at
 Perundurai.
 
 (h) Corporate Loan Rs.100 million
 
 (i) FITL Rs. 23.10 million
 
 The Corporate Loan sanctioned by IDBI is secured by extension of first
 charge on Pari Pasu basi except the assets which are exclusively
 charged by SBI and Corporation Bank. First charge by wa of
 Hypothecation in favour of IDBI of all assets of the Company''s movable
 (save and except boo debts), including movable machinery, machinery
 spares, tools and accessories, present and future subject to the prior
 charge created/ to be created in favour of company''s bankers on the
 company'' stocks of raw materials, semi finished and finished goods,
 consumable stores and such other movable as may be agreed to by IDBI
 for securing the borrowings for working capital requirement in the
 ordinary course of business.
 
 (j) Term Loan Rs.150 million
 
 (k) FITL Rs.9.59 million
 
 The Term Loan sanctioned by the State Bank of Indore is secured by
 second charge on all present fixed assets of the company.
 
 The term loan sanctioned by the above banks in consortium is secured by
 first charge on pari passu basis by way of Equitable mortgage of Land
 and Buildings and Hypothecation of all the fixed assets and second
 charge on all the current assets of the Company shared on pari passu
 basis with banks in the consortium for new Project of Rs.351 cores.
 
 *FITL - Funded Interest Term Loan – Under the CDR and reworked
 packages.
 
 
 ii) WORKING CAPITAL LOANS
 
 a) Fund based limits Rs.130.30 million Non fund based Rs. 70.00 million
 
 The working capital facility sanctioned by State Bank of India is
 secured by hypothecation of entire current assets and movable assets of
 the Company and a second charge over entire fixed assets of the Company
 on pari passu basis with other commercial bankers under consortium
 agreement.
 
 b) Fund based limit Rs.28.30 million
 
 The working capital facility sanctioned by State Bank of Hyderabad is
 secured by hypothecation of the entire current assets of the Company
 and movable assets of the Company and a second charge on the fixed
 assets of the Company on pari passu basis with other commercial banks
 under consortium agreement.
 
 c) Fund based limit Rs.18.70 million
 
 The working capital facility sanctioned by Corporation Bank is secured
 by hypothecation of the entire current assets of the Company and
 movable assets of the Company and a second charge on the fixed assets
 of the Company on pari passu basis with other commercial banks under
 Consortium agreement.
 
 iii) FUNDED INTEREST TERM LOAN
 
 State Bank of India Rs.99.07 million
 
 State Bank of Hyderabad Rs.23.39 million
 
 Corporation Bank Rs.15.78 million
 
 Funded interest Term Loan is secured by First charge on the entire
 fixed assets of the company existing / proposed including EM on factory
 land and buildings on pari passu basis with other Consortium TL
 Bankers.
 
 iv) WORKING CAPITAL TERM LOAN
 
 State Bank of India Rs.399.76 million
 
 State Bank of Hyderabad Rs. 88.60 million
 
 Corporation Bank Rs. 57.30 million
 
 1.  Corporate Debt Restructuring (CDR Package)
 
 The Company opted for financial restructuring under Corporate Debt
 Restructuring Scheme, with the cut off date being 31.10.2011.
 
 In the above reworked package under CDR, the company has given an
 undertaking to adhere to various restructuring schemes, as detailed
 below:
 
 1.  The interest portion of the TUF Loans for the financial year is
 being funded as FITL-II @ 15% pa., and the repayment of the same would
 be immediately on receipt of TUF subsidy or by 31/10/2011, whichever is
 earlier.
 
 2.  The repayment of the loan outstanding shall be as per the re
 Schedulement program, and will have a moratorium repayment period of 18
 months and the actual repayment shall commence from 2012.
 
 3.  The existing securities available and charged to the CDR lenders
 shall continue.
 
 2.  Others
 
 Amount outstanding for more than 30 days to Micro and small Enterprises
 undertaking is Rs.  12.71 lakhs as detailed below ( Previous year
 Rs.14.39 lakhs)
 
 
 3.  Contingent Liabilities not provided for in the accounts
 
 1) Estimated amount of contracts remaining to be executed on capital
 accounts – Rs.Nil (Previous year Rs.Nil)
 
 2) The Company has export obligations for value of Rs.24106 lakhs under
 EPCG Scheme against which exports aggregating Rs. 5626.53 lakhs
 including third party exports have been made as on 31.03.2011. Balance
 obligations required to be fulfilled as per various schedules,
 culminating on 20.07.2015.
 
 3) The Counter guarantee given by the Company for the guarantees issued
 by the Bankers is Rs.Nil (previous year Rs.14.03 lakhs)
 
 4) The sales Tax department has preferred an appeal before STAT
 Coimbatore for the year 2003-04 for issues representing sales tax of
 Rs.3.68 lakhs which is pending before STAT, Coimbatore.
 
 5) The Income Tax Department has preferred an appeal before ITAT,
 Chennai against the Order CIT (Appeal) in favour of the Company
 regarding interest claim U/S 234B/234C for the Assessment Year 2004-05.
 
 6) The Lenders, with the approval of the Corporate Debt Restructuring
 Empowered Group shall have the right to recompense the relief''s /
 sacrifices/ waivers extended by respective CDR lenders amounting to
 Rs.1012 million as on 31.03.10 with regard to the interest differential
 as per CDR guidelines. In the event of default, Lenders shall have the
 right to reverse the waivers with the approval of Corporate Debt
 Restructuring Empowered Group.
 
 4.  The amount falling due within one year in respect of long term
 secured loans are as follows:
 
 a) Term Loan Rs. 2227.98 million** (Previous year Rs.105.80 million) **
 As per the rework package under CDR System, substantial amount of loan
 is expected to be repaid out of the sale proceeds of the assets.
 
 IFST dues – Rs.14.70 million (Previous year Rs.14.12 million)
 
 b) In the opinion of the Board of Directors, Current Assets, Loans and
 Advances will fetch the amounts stated, if realized in the normal
 course of Business.
 
 c) The Balances due to/ due from parties and Loans and Advances are
 subject to confirmation.
 
 
 d) Miscellaneous expenses not yet written off as shown on the asset
 side of Balance Sheet includes Rs.19.34 million towards follow on
 public issue made during the year.
 
 5.  The provision for all liabilities is neither inadequate nor more
 than what is reasonably necessary.
 
 6.  The borrowings cost capitalized during the year in respect of the
 qualifying assets is Rs.Nil
 
 (Previous year Nil)
 
 7. Requirement under Clause 32 of the Listing Agreement. Loans and
 advances in the nature of loans to subsidiaries, Firms, Associates and
 Companies in which Directors are interested is Rs.Nil (previous year
 Nil)