1. Secured Loans:
 
 a. The Term Loans from ARCIL are secured by first pari-passu mortgage
 of all immovable properties, save and except assets charged to IDBI
 earlier, and is further secured by way of hypothecation of all movable
 properties (save and except the book debts) of the company subject to
 prior charges created in favour of Company''s Bankers on inventory of
 the Company to secure the borrowing for working capital.
 
 b. The Term Loan from Export Import Bank of India is secured by way of
 Hypothecation of all the present and future movable fixed assets except
 book debts and stock and is further secured by first pari passu
 mortgage of all the immovable assets of company save and except assets
 charged to IDBI earlier.
 
 c. Working Capital Borrowings from Export Import Bank of India
 represents the amount of foreign Usance bills discounted by the Bank.
 
 d. All the above loans are further secured by personal guarantees of
 Managing Director and Ex-Chairman.
 
 2. Secured Lenders viz, Asset Reconstruction Company (India) Limited
 (ARCIL) and Export Import Bank of India took the possession of the
 Secured Assets of the company under section 13 (4) of Securitization
 And Reconstruction of Financial Assets And Enforcement of Security
 Interest Act, 2002 ( SARFAESI Act) on 11th July, 2007 against their dues
 and appointed the Company as Custodian of the Secured Assets and
 permitted to continue the Business activities on a payment of Rs 25,000
 per month towards royalty charges till 31st March, 2011.  Thereafter,
 they have withdrawn the custodian ship. They have also filed petition
 for winding up of the company before the hon''ble High Court of M.P.,
 which is pending for admission.
 
 The Commercial Tax Department also took action for recovery of their
 dues by way of attachment of Fixed Assets under the Provisions of M.P.
 Land Revenue Code, 1959.
 
 Hence, Consequential fate of Secured fixed assets taken over by the
 secured lenders is not ascertainable. Therefore , any adjustment on
 account of possession of the assets is also not ascertainable in the
 circumstances as on 31 st March, 2011.
 
 3. As the accumulated losses of the Company had exceeded its entire net
 worth in earlier years, the Company had been declared a Sick Industrial
 Company within the meaning of Clause (O) of sub section 1 of section 3
 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SfCA)
 vide order of BIFR dated 17th May, 2006. Pursuant to the action taken by
 secured Lenders under section 13(4) of the SARFAESI Act, 2002 the BIFR,
 vide its order dated 26th November, 2007 has abated the reference filed
 by the Company under SICA.
 
 As the Company has concluded one time settlement with working capital
 bankers and IDBI and is pursuing settlement discussions with remaining
 Secured Lenders and is keen to revive its operations, the accounts of
 the Company have been prepared on going concern basis.  In case the
 Company is unable to continue as a going concern in future, the
 resultant adjustments, if any, are presently not ascertainable.
 
 4. In view of One-time settlement achieved by the Company and its
 ongoing discussions with other lenders, the estimated amount of the
 interest for the year amounting to Rs. 322.98 Lacs (Prev. Yr. 322.98
 Lacs) has not been provided in books of accounts of the Company.  Total
 amount of Interest not provided for as on the date of Balance Sheet is
 Rs. 4346.03 (Prev. Yr. 4023.05 Lacs).
 
 5. As per the Information''s available with the Company in response to
 the enquiries from all existing suppliers with whom Company deals, none
 of the suppliers are registered with the Micro, Small & Medium
 Enterprises Development Act, 2006.
 
 6. Balances of some of the Sundry Debtors, Creditors, Loans & advances
 are taken as per Books of Account and are subject to confirmation from
 respective parties. However, in the opinion of the management these
 accounts will fetch the amount as stated in the books of accounts on
 realization in the ordinary course of business.
 
 7. Sales Tax, Purchase Tax and Income Tax Assessment are pending at
 various stages. Provision of Taxes in the opinion of management is
 sufficient.
 
 8. No Provision for taxation has been considered necessary in view of
 Carry forward losses, and unabsorbed depreciation and other allowances
 under the Income Tax Act.
 
 9. Vehicles in the block of Fixed Assets are in the name of Directors,
 as the finances have been arranged by them.
 
 These vehicles are in the possession of the Company. The amount of
 installments outstanding for payment to financing agencies as on the
 date of Balance Sheet is Rs. 0.72 (2.16) Lacs.
 
 10. Excise duty drawback receivable related with Exports of previous
 years, earlier denied by the Custom authorities, now have been allowed
 by the Hon''ble CESTAT, New Delhi and therefore have been shown as
 Income underthe head ''Other Income''
 
 11. Bad debts and irrecoverable debit balances written off during the
 year is Rs. 6.76 Lacs (Prev.Yr. NIL) which were shown as receivables in
 earlier years now determined and adjusted.
 
 12. Prior Period items represent amount ascertained and accounted for
 During the Year on the basis of various assessments completed during the
 Year and other settlements related with earlier years.
 
 13. Related Party Disclosures:
 
 A. List of related Parties: Shri Pramod Somani (relationship: Managing
 Director)
 
 B. Transactions with related parties NIL
 
 14. Traveling and Conveyance includes Directors Traveling-Inland Rs.
 5,57,607 (Prev.Yr. 2,28,483), Foreign Traveling Directors Rs. Nil
 (Prev.  Yr. Nil) and Foreign Traveling-others Rs. Nil (Pre.Yr.Nil).
 
 15. Segment Information : The Company is operating in Single segment.
 
 16. The Computation of net Profit in accordance with section 349 of the
 Companies Act, 1956 has not been given, as Commission by way of
 percentage of Profit is not payable for the year to any of the
 Directors of the Company.
 
 17. In the opinion of the directors the assets had recoverable value as
 compared to their carrying Cost, and therefore no provision is
 considered necessary.
 
 18. Figures have been rounded off to the nearest rupee.
 
 19. Previous year figures have been regrouped / rearranged, wherever
 necessary.
 
 20. Figures and remarks in the brackets pertains to the previous year,
 unless other wise specified.
 
 There is no reasonable / virtual certainty supported by convincing
 evidence that sufficient future income will be available against the
 net deferred tax assets. In consideration of prudence, the company has
 not considered the net deferred tax Assets in the Books of Accounts.
 
 21. In the opinion of the Board the current assets, loans & advances
 have a value on realisation in the ordinary course of business, at
 least equal to the amounts at which these are stated and that the
 provisions for all the known liabilities has been adequately made and
 not in excess of the amount reasonably necessary and there is no
 Contingent liability other than listed below.
 
 a) Interest to Secured Lenders Rs. 43.46 Crores. ( Prev.Yr. Rs. 40.23
 Crores)
 
 b) Provision for accrued gratuity liability made , pending actuarial
 valuation and accounting policy followed.
 
 c) Claim not acknowledged as debts Rs. 15 Lacs. (Prev.Yr. 3.50 Lacs)
 
 21. Schedules referred to herein are under the same signature and form
 an integral part of the Accounts.