1. Allotment money due amounting to Rs. 1,14,91,250 is pending
 against Public Issae of 35,00,000 Equity Shares allotted on 16.3.1996.
 
 2. Aggregate amount of guarantee furnished by the bank on behalf of
 the company to Commissioner of Customs, Chennai is Rs. 16,85,500
 against availment of concessional duty on import of open end spinning
 machine and further under obligation to export cotton yarn worth US$
 16,41,493 within 5 years with effect from 17.11.95 being the date of
 issue of license there being no progress till date and secured against
 margin money in Fixed Deposits of Rs. 17,58,586 and during the year
 Company has paid a sum of Rs. 1685500 (Previous Year NIL) towards
 Customs Duty for non fulfillment of export obligation under EPGC
 Scheme.
 
 3. Under Sales Tax Deferral Scheme granted by Commercial Tax
 Department Tamil Nadu, the Company was exempted from deposit of sales
 tax collected till the period 23.03.2002 the liability as on 31.03.2002
 being Rs. 23,30,056, the payment of which has not been made, as the
 Company has applied for BIFR.
 
 4. Interest on Recurring deposit with bank Rs. 146102, has not been
 received and same has not been provided in the books as the Account has
 become NPA as per banks and interest amount is considered to be not
 receivable.
 
 5. The Company has received a sum of Rs. 51,36,613 in 1998-99, against
 claim lodged with The Oriental Insurance Co. Ltd. for the loss due to
 fire in factory in 1997-98 of stock, godown and other assets worth Rs.
 1,01,97,419. For short receipt of claims, the company made necessary
 representation before the Consumer Forum.
 
 6. The Company is availing concession in electricity consumption as
 per interim order dated 8th October, 1997 of Honble High Court at
 Chennai.
 
 7. As per notification No. GSR 129(E), dated 22/2/99 issued by the
 Department of Company Affairs, Ministry of Law, Justice & Company
 Affairs the names of the Small Scale Industrial undertakings to whom
 the company owns a sum exceeding Rs. 1 lakh is NIL, as per information
 available.
 
 8. The Company has suspended operations since December, 2000 due to
 shortage of working capital and unfavourable market conditions.
 
 9. The Company has made an application with BIFR on 21.06.2000 and a
 case no. 218/2000 has been allotted, and certain papers as desired by
 BIFR to be submitted has been field on 24.01.2002 for which hearing is
 pending.
 
 10. Segment Reporting:
 
 As there being no primary business segment, AS 17, is not applicable to
 the company.