1. The company has only one class of Equity shares having a par value
 of Rs. 10/- each. Each holder of equity share is entitled to one vote
 per share on poll and have one vote on show of hands. In the event of
 liquidation, the equity share holders are eligible to receive the
 remaining assets of the company in proportion to their shareholding
 after distribution of payments to preferential creditors
 
 2.  The company has not issued any bonus shares during the last five
 financial years.
 
 3.  None of the shares were allotted in pursuant to contract without
 payment being received in cash.
 
 i.  IREDA:
 
 a.  Term loan from IREDA is secured by first charge on all the movable
 and immovable assets of the company''s power division of 0.80MW small
 hydro project at Nandigama branch canal at mile #3, Kotha Kothuru of
 Nela kondapalli village, Khammam dist., A.P. Further guaranteed by six
 promoter directors ofthe company and corporate guarantee of two
 companies.
 
 b.  The above loan carries interest @10%
 
 c.  the above loan is repayable in following manner.
 
 2013-14 Rs. 3455320/-: 2014-15 Rs. 3455320/-: 2015-16 Rs. 2285984/-:
 2016-17 Rs. 2355792 : 2017-18 Rs. 2355792:2018-19 Rs. 2355792/- and
 2019-20 Rs. 588950/-
 
 d.  There are no defaults in repayment of above loan.
 
 ii.  Andhra Bank:
 
 - Power unit:
 
 a.  Term loan from Andhra Bank is secured by way of charge on movable
 and immovable assets of power plant at Kotha Kothuru and
 Bhairavanipalli of Khamma Dist., A.P. which are exclusively created out
 of said loan. Also secured by way of second charge on fixed assets of
 spinning mill unit.  The said loan is further guaranteed by two
 directors in their personal capacities.
 
 b.  The above loans carries interest @ 13.5% and 14%
 
 - Spinning Unit: ,
 
 a.  Term loan from Andhra Bank is secured on paripassu basis by way of
 first charge on all the movable and immovable assets of spinning
 division of the company. Further guaranteed by two Directors in their
 personal capacities.
 
 b.  The above loans carries interest® 12.75/- 13.5%and 14%
 
 c.  The above loans are repayable in following manner.
 
 2013-14 Rs. 90016000/-: 2014-15 Rs. 84990992: 2015-16 Rs. 83026542/-:
 2016-2017 Rs.  31838595: 2017-18 Rs. 19445000/-: 2018-19 Rs.
 29000000/-: 2019-20 Rs. 47900000/-: 2020-21 Rs. 65274689: and 2021-22
 Rs. 15299954/-
 
 d.  There are no defaults in repayment of above loans.
 
 iii. Indian Bank:
 
 a.  Term loan from Indian Bank is secured on paripassu basis by way of
 first charge on all the movable and immovable assets of spinning
 division of the company. Further guaranteed by two directors in their
 personal capacities.
 
 b.  The above loans carries interest @13% and 14%
 
 c.  The above loans are repayable in following manner,
 
 2013-14 Rs. 28770000/-: 2014-15 Rs. 35038400:2015-16 Rs. 39670000/-:
 2016-17 Rs. 66820000: 2017-18 Rs. 65425000/-: 2018-19 Rs. 52218798/-:
 2019-20 Rs. 50000000/-: 2020-21 Rs. 47010240
 
 d.  There are no defaults in repayment of above loans
 
 iv.  Bank of Baroda:
 
 a.  Term loan from Bank of Baroda is secured by way of first charge on
 fixed assets of company''s proposed Dyeing unit and further guaranteed
 by two directors in their personal capacities. However, the loan
 proceeds are not yet availed by the company.
 
 b.  The above loan carries interest @ 13.25%
 
 v.  Interest free sales tax loan:
 
 a.  The company availed interest free sales tax loan for the period
 from 1995-96 to 2008-09 aggregating to Rs. 25475992/- The said loan is
 repayable within a period of 10/14 years from each year of availment
 
 4.  CONTINGENT LIABILITIES NOT PROVIDED FOR  
 
                                                 As at       As at
                                              31-03-2012   31-03-2011
 
 i.  Counter Guarantees given to Bank
 in respect of Bank guarantees and 
 letter of credit issued in favor of 
 various constituents                        4,09,46,170  7,05,67,634
 
 ii.  Estimated amounts of contracts
 remaining to be executed on Capital
 Accounts, and not provided for.                3,98,525  3,66,94,573
 
 iii. State levies on Electricity              38,47,661    37,38,227
 
 5.  a. Balances in personal accounts of various parties are subject to
 confirmation by and reconciliation with the said parties.
 
 b.  In the opinion of the Management, all the amounts stated under
 Current Assets, Loans and Advances are recoverable at the values at
 which they are stated.
 
 6.  a. Revenue expenditure capitalized to fixed assets / capital works
 under progress during the year
 
 includes borrowing costs as per As-16-         2011-12         2010-11
 
 Interest paid on term loans and 
 processing charges                           10,05,790       72,46,984
 
 (Net after interest subsidy received 
 under TUF Scheme)
 
 7.  Interest paid is net after 
 crediting subsidy received under 
 TUf Scheme                                 3,20,59,084     3,33,27,632
 
 8.  Sales includes an amount of Rs. 9,03,020/- being gain on exchange
 fluctuation, (previous year Rs.  27,01,789/-)
 
 9.  The Andhra Pradesh Electricity regulatory Commission issued orders
 refixing the purchase price of power purchased from the company at
 Rs.2.52 per Unit w.e.f. 01-04-2004. The Company contested the said
 order in High Court of Andhra Pradesh along with the other members of
 Small Hydro Power Developers Association. The High Court issued an
 interim order directing APSPDCLto pay 50% of the differential between
 the revised rate and the previous rate in force up to 31-03-2004.
 Subsequently the High Court transferred the case to the Appellate
 Tribunal for Electricity, New Delhi. The Appellate Tribunal for
 Electricity decided the matter in favour of the Company vide its order
 dated 02-06-06 and ordered the APTRANSCO to pay the difference amount
 between the revised rate and the previous rate in force up to 31
 -03-2004. However the APTRANSCO preferred an appeal before the Supreme
 Court against the order of the Appellate Tribunal for Electricity. The
 Supreme Court set out guidelines and remanded the matter to APERC with
 a direction that APERC shall hear the non-conventional energy
 generators afresh and determine the tariff expeditiously for purchase
 of Electricity in accordance with Law and pending the orders of APERC,
 APSPDCL is making payment of Rs. 1.92 per unit w.e.f.  September, 2010,
 instead of billed rate of Rs. 2.74 per unit.
 
 10.  The Andhra Pradesh Electricity regulatory commission vide its
 order dated 23-02-2004 has increased the wheeling charges from 2% to
 12.81% on the Electricity wheeled from the Power Plants of the Company
 by the APTRANSCO. The company has filed writ petition in the Hon''ble
 High Court of Andhra Pradesh and the said Court has transferred the
 case to the Appellate Tribunal for Electricity, New Delhi.  The
 Appellate tribunal for Electricity passed the final order on 08-09-2005
 directing the APTRANSCO to continue to collect the wheeling charges
 only at 2%. However the APTRANSCO preferred an appeal before the
 Supreme Court against the orders of the Appellate Tribunal for
 Electricity, New Delhi. In view of the order passed by the Appellate
 Tribunal for Electricity, the Company has accountant for wheeling
 charges only at 2% pending final orders in the matter.
 
 The above details were prepared based on information furnished by the
 respective suppliers and available with the company regarding the
 status under Micro, Small & Medium Enterprises Development Act, 2006.
 The said information to the extent furnished by the suppliers has been
 relied upon by the Company and its Auditors for the said purpose.
 
 11. Group Gratuity:
 
 The Company has a defined benefit Gratuity Plan. Every Employee who has
 completed 5 years or more of service gets gratuity on departure at
 15days salary (last drawn) for each completed year of sen/ice subject
 to limits as per Payment of Gratuity Act 1972. The Company has not
 contributed to any fund of its Gratuity Liability.
 
 1.  Companies controlled by Key Management personnel / relatives of Key
 Management personnel
 
 1.  KallamAgro Products & Oils Private Limited, Guntur
 
 2.  Kallam Brothers Cottons Private Limited, Guntur
 
 12. General:
 
 Consequent to the amendments made to Schedule-VI of the Companies Act,
 1956, the Financial statements for the year ended 31 st March, 2012 are
 prepared under revised schedule - VI. Accordingly, the previous year
 figures have also been reclassified to confirm to this year''s
 classification.