1.  Unsecured loans
 
 Working capital facilities were originally sanctioned by State Bank of
 India (SBI), Gwalior.
 
 The said loans are secured by a first charge on the current assets of
 the company and a
 
 personal guarantee by Managing Director, whole time Director & two
 former Directors of the company. The said working capital facilities
 were further secured by mortgage of land, building and plant &
 machinery of the units of the Company.
 
 During August 2003, SBI had cancelled the limits and recalled the loans
 and filed a suit before Debt Recovery Tribunal (DRT), Jabalpur for
 recovery of the amount due.  Subsequently, SBI had assigned the said
 loan to Kotak Mahindra Bank Limited, pursuant to the execution of a
 deed of assignment on January 16,2006.
 
 DRT has passed an order on March 15,2007, issuing interim recovery
 certificate, which was subsequently stayed by Debt Recovery Appellate
 Tribunal (DRAT)
 
 Interest on Cash Credit from State Bank of India (now assigned to Kotak
 Mahindra Bank Ltd.) as the liability and assignment thereof to Kotak
 Mahindra Bank Ltd. is disputed.  Further* the Directors are of the view
 that the provision made till as a matter of prudence, and outstanding
 as on date, is sufficient to cover the interest liability, if held
 otherwise and the shortfall, if any, shall be dealt with on cash basis
 at the time of settlement.
 
 2.  Details in Terms of Sick Companies
 
 The company has been declared as a sick industrial company in terms of
 Section 3(1 )(0) of Sick Industrial Companies (Special Provisions) Act,
 1985 vide BIFR order dated 9th September, 2009 and IFCI has been
 appointed as the operating agency for formulating the scheme of
 rehabilitation. The Company has deposited a sum of Rs. 25,00,000 with
 IFCI as per the directions given to it for the proposed scheme for
 rehabilitation. No provision for interest income on the deposit has
 been made as the amount, if any, not being material and the same shall
 be dealt with on receipt of credit/payment from IFCI
 
 3.  Fixed assets
 
 The Sales Tax authorities have sealed the company''s manufacturing unit
 at Malanpur and attached its Kota unit for realization of its dues. The
 company has disputed the action of sales tax authorities in Madhya
 Pardesh High Court, Gwalior Bench. The matter is sub judice.
 
 4.  Investments
 
 Investments are unquoted and are stated at cost. Present value of such
 investments has not been assessed. In the opinion of the management,
 the diminution in the value of investments, if any, is considered as
 temporary, at this stage and hence no provision for diminution, if any,
 in the value has been made.
 
 5.  Current assets, loans and advances
 
 In the opinion of the board, current assets, loans and advances have a
 value on realisation in the ordinary course of business, at least equal
 to the amount at which they are stated.
 
 No provision has been made against the dues of Rs. 65.9 Lakhs from Mr.
 H.K. Sahu, ex Managing Director of the company. A criminal suit has
 been filed against him for recovery of this amount, which is pending in
 the court.
 
 Letters of confirmation of balances have not been received and hence
 the balances (debit/credit) are subject to adjustments, if any, on
 reconciliation /settlement of accounts.
 
 6.  Accounts payable
 
 The Company did not have any dues to micro, small & medium undertakings
 both during the year under report and during the previous year
 
 7.  Directors'' remuneration
 
 The remuneration paid to Mr. Anil P. Sahu, Managing Director, includes
 salary of Rs.  7,03,000 (previous year Rs. 6,91,000).
 
 The remuneration paid to Mr. Sanil R Sahu, Whole time Director,
 includes salary of Rs.7,58000 (previous year Rs. 7,34,000).
 
 8.  Provisions for Taxation
 
 -Nil provision has been made during this year.
 
 9.  Deferred Tax
 
 The provision for deferred tax assets (net) for the year ended March
 31,2011 has not been recognized on a prudent basis in accordance with
 the Accounting Standard (AS -22), issued by the Institute of Chartered
 Accountants of India.
 
 10.  Contingent Liabilities not provided for: Nil
 
 11.  Additional information pursuant to paragraph 3 & 4 of part II of
 the schedule VI of the Companies Act. 1956
 
 12.  The company had transactions with the following related parties:
 Associates: Nisha Polymers Industries Ltd.
 
 Directors and Key Management Personnel
 
 Executive Key Management Personnel - Mr. Anil. P. Sahu & Mr. Sanil .P. 
 Sahu
 
 13.  Previous year figures have been regrouped and reclassified,
 wherever necessary, to facilitate comparison to the current year''s
 figures.
 
 14.  Figures have been rounded off to the nearest rupee.