1 a) The scheme of Amalgamation of The Hindoostan Spinning and Weaving
 Mills Limited (transferor company) with the Company (transferee
 company) has been sanctioned by the Hon''ble High Court of Bombay vide
 its Order dated 1st April,2011 with effect from 1st April,2010, being
 the appointed date. Accordingly, pursuant to the said Order all assets
 and liabilities (including reserves) of the said transferor Company
 have been recorded in the transferee Company at their respective book
 value.
 
 b) The Amalgamation has been accounted for under the Pooling of
 Interest Method as prescribed by Accounting Standard (AS 14)
 Accounting for Amalgamation issued under the Companies (Accounting
 Standards) Rules, 2006 . The assets, liabilities and reserves of the
 transferor Company as at 1st April, 2010 have been taken over at their
 respective book values subject to adjustments as follows:-
 
 i) A sum of Rs.26.50 lacs has been debited to Capital Reserve due to
 the cancellation of 28,00,044 equity shares held by the transferee
 company with the transferor company.
 
 ii) A sum of Rs. 1102.51 lacs has been credited to Capital Reserve
 Account on account of reduction in the capital while issuing the shares
 to the shareholders of the transferor company as per the ratio
 prescribed in the Scheme of Amalgamation, which has been sanctioned by
 the Hon''ble High Court''of Bombay.
 
 2 Contingent Liabilities in respect of:
                                                            Previous 
                                                            Year
 
                                                   Rupees   Rupees
                                                   In lac   In lac
 
 (a) The Income-tax demands in respect of          210.01        -
 earlier years under dispute and are pending 
 in appeal before higher authorities. In 
 respect of some of the assessment years, 
 the higher authorities have decided the
 matters fully/partially in favour of the 
 company and are pending before the 
 assessing officer for giving
 effect thereto 
 
 (b) Claims against the Company not                 763.75  132.31
 acknowledged as debts [including
 disputed demands of Central Excise 
 for Rs. 136.44 lakhs (P. Y - Nil),Sales Tax
 under Works  Contract Act Rs. 111 lacs 
 (P. Y. - Rs. 111 lacs)
 
 (c) Government of Maharashtra had served                -       -
 a demand notice for payment of electricity 
 duty @ P15/Unit on power consumption 
 generated in the company''s captive power 
 plant at Karad for the period: 1.4.2000 to
 30.4.2005, together with penal interest 
 thereon amounting to Rs.228.20 lakhs. 
 The company''s writ petition against 
 this levy was decided by the Bombay 
 High Court on 7.11.2009 in favour of 
 the company.  The State of Maharashtra 
 has however filed a special leave 
 petition (SLP) in the Supreme Court of 
 India, challenging the High Court order.
 
 3 a) The Investment of 42 Shares in Yeshwant Sahakari Sakhar Karkhana
 Ltd., are held in the names of two Directors of the Company, being its
 nominees, as required by the bye-laws of the Society. Yeshwant Sahakari
 Sakhar Karkhana in the earlier year appropriated the deposits /amount
 payable to the company towards the increased cost of face value of
 shares and issued the certificate of holding.
 
 b) During the year the Company had sold 3,50,000 Equity shares of
 Lexicon Finance Limited which was acquired by the earstwhile
 subsidiaries of the Company during the year 1994-95. The said Company
 has not declared any dividend for the last several years and there is a
 substantial erosion in the net worth. Since the shares were not quoted,
 the Company had to sell the shares lower than the purchase cost as per
 the valuation report of a Chartered Accountant and accordingly inurred
 a loss of Rs.28 lacs.
 
 4. The Property under Development refelected in stock in trade is valued
 at Rs.500 lakhs. The construction work of the residential complex has
 been completed but settlement of account is pending with the Developer.
 
 Settlement of accounts is a matter of dispute between the Company
 (Owner) and Developer and there are claims and counter claims. The
 matter has been referred to arbitration, pending resolution since 2002.
 
 As a measure of prudence, the Company has adopted a conservative
 approach and has written down the value of inventory by Rs.499 lac
 however reserving its claim in arbitration.
 
 Accordingly , surplus if any will be accounted in the year in which the
 arbitration award is finalised.
 
 5. The Company has not received any intimation from the suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 Development Act,2006 and hence the disclosures relating to amount
 unpaid as at the end of the year together with interest paid / payable
 as required under the said Act have not been furnished and therefore
 provision for interest,if any, on delayed payments, is not
 ascertainable at this stage.
 
 6. During the year 2003-04,in terms of Sanctioned Scheme of the
 erstwhile The Hindoostan Spinning and Weaving Mills Ltd.  secured
 lenders dues were transferred to the SPVs in full settlement of their
 dues from the company. All secured lenders except Union Bank of India
 (UBI) have released their charge on the assets of Karad unit. In
 respect of UBI, the SPV is yet to settle their dues and hence, they
 continue to hold the charge on the assets of the Karad Unit by way of
 equitable mortgage.
 
 7. ( i) Deferred tax : In accordance with Accounting Standard (AS -
 22) on Accounting for Tax on Income notified by the Companies
 (Accounting Standards) Rules,2006 , Deferred Tax Assets consist of
 substantial amounts of carry forward losses and unabsorbed depreciation
 under the Income Tax Act, 1961. However, since the availability of
 sufficient future taxable income against which the said benefits can be
 set off is not possible to be ascertained with virtual certainty, the
 Deferred Tax Assets have not been recognised as a measure of abundant
 caution.
 
 (ii) Current Tax : In view of the unabsorbed Business Losses and
 Depreciation of the earlier years, provision for normal tax has not
 been made. However , Provision for Minimum Alternate Tax u/s 115 JB of
 the Income Tax Act on the Book Profit of the Company has been made for
 the year ended 3 lst March 2011.
 
 8. Employee Benefits:
 
 A Leave Encashment
 
 The liability towards leave encashment for the year ended 3 lst March,
 2011 as per acturial valuation is Rs.48.89 lacs which has been duly
 provided for.
 
 9. Related Party Information:
 
 Associates / companies where    Capricon Realty Limited ,
 control exists                  Bhishma Realty Limited ,Delta 
                                 Investments Ltd, Thackersey 
                                 Moolji & Co
 
 Key Managerial Persons (KMP)    Hrishikesh J.Thackersey
 
                                 Abhimanyu J.Thackersey 
                                 (Executive Directors)
 
 Relative of Key Managerial      Jagdish U.Thackersey
 Person
 
 Subsidiary Company              Hindoostan Technical Fabrics Ltd.
 
 10. The figures of the current year are consolidated figures due to the
 Amalgamation, hence not comparable with the previous year.
 
 11. The figures of the previous year have been reclassified, where ever
 necessary to correspond to the figures of the current year.
 
 12. The amounts in Balance Sheet and Profit and Loss Account are rounded
 off to the nearest thousand and indicated in lac of Rupees.