1 CONTINGENT LIABILITIES:
 
 All known and undisputed liabilities have been duly provided for,
 except the following:
 
 a.  The Unexecuted portion of Letter of Credit opened by Bank is 
 Rs. 22.11 Lacs (Previous Year-Rs.-nil-Lacs)
 
 b.  Capital Commitments: Estimated amount of contacts remaining to be
 executed on capital account (net of advances) not provide for, amounts
 to Rs. 1,400 Lacs - (previous Year Rs.1,400 Lacs).
 
 1.2 Secured Loans:
 
 a.  Dues to JMF ARC Pvt. Ltd., are secured by Joint - Equitable
 mortgage of tile deeds relating to the Company''s immovable properties
 and are further secured by the personal guarantees of the Directors of
 the Company, and pledge of Shares of the Promoters.
 
 b.  The Credit facilities from State Bank of Hyderabad are secured by
 way of hypothecation of present and future stock of raw materials, work
 - in - process, all finished and manufactured goods, stores, component
 and spares (not relating to Plant and Machinery) and book debts of the
 Company. The Working Capital facilities are further secured by Second
 charge on the fixed assets of the Company to the extent of Rs.840 Lakhs
 and the personal guarantees of the Directors of the Company.
 
 c.  Vehicles acquired under Hire - Purchase agreement from, ICICI Bank
 Limited are secured by hypothecation of the respective vehicles. The
 Loans are further secured by the personal guarantee of the Directors.
 
 1.3 Unsecured Loans:
 
 a. The Government of Andhra Pradesh, Commissiorate of Industries, has
 vide its letter no. 20/2/6/01826, dated 16th February'' 1996, fixed
 eligibility towards Sales Tax Deferment on the Sales Tax Payable by the
 Company for a period of 10 years with effect from July''28,1995. As the
 Company has shifted its Manufacturing Facilities from Andhra Pradesh,
 the Company has to repay the said Sales Tax Deferrement unsecured loan
 in full. As at 31 st March ''2012 out of the total Rs.502.84 Lacs
 availed an amount of Rs. 384.21 is paid back. The Sales Tax amount due
 as at March, 31st 2012 is shown under the head of account Unsecured
 Loans.
 
 1.4 Balances appearing under Unsecured Loans, Investments, Sundry
 Debtors, Loans and Advances, Capital Work - in - Progress are subject
 to Confirmation and/or Reconciliation, if any.
 
 1.5 The Convertible Warrants Monies represents Monies Received against
 Fully convertible Warrants to be issued.
 
 1.6 The Company has only one segment of activity of dealing in textile
 products during the period, hence segment wise reporting as defined in
 Accounting Standard -17 is not furnished.
 
 1.7 The benefit of tax losses has not been brought to account, as the
 related benefits are not considered virtually certain.  Hence the value
 of Deferred Tax is not determined and accounted as per the Provisions
 of Accounting Standard - 22 on Accounting for Taxes on Income, issued
 by the Institute of Chartered Accountants of India.
 
 1.8 Figures have been rounded off to the nearest rupee.
 
 1.9 Previous year figures have been regrouped where necessary. The
 previous year figures and current year figures are not comparable since
 financial year 2010-11 data repesents operations for 6 (Six) Months,
 whereas current year data is for a period of 12 (Twelve) Months.
 
 1.10 Notes 2 to 25 form an integral part of the Balance Sheet and
 Profit & Loss account.