1.1 Preference shares of Rs. 250 Lacs, Rs. 590 Lacs & Rs. 210 Lacs
 respectively were redeemable from December 05, March 06 & April 06
 respectively in 28 equal quarterly installments without any past &
 future dividend as per settlement terms with the preference share
 holders. Preference Shares of Rs. 450 Lacs were to be redeemed at Rs. 45
 Lacs as per settlement terms. Final redemption of Preference Shares
 will be on sanction of rehabilitation scheme by BIFR. Pending
 fulfillment of various terms & conditions of restructuring/settlement &
 sanction of rehabilitation scheme by BIFR, Rs. 991.94 Lacs paid (previous
 year Rs. 864.96 Lacs) to Preference Shareholders has been shown as
 other current assets.
 
 1.2 Calls in arrears accounts are subject to confirmation and
 reconciliation.
 
 1.3 The details of shareholders holding more than 5% shares: Equity
 Share Capital
 
 1.4 The company has two class of shares namely equity shares having at
 par value of Rs. 10 per share and preference share having at par value of
 Rs. 100. Each holder of equity share is entitled to one vote per share
 and each holder of preference share is entitled to ten vote per share.
 In the event of liquidation of the company, the preference share
 holders shall get priority on proportionate basis towards payments and
 the holders of the equity shares will be entitled to receive remaining
 asset of the company in proportion to the number of equity shares held.
 
 2.1 In view of the losses, Debentures and Preference Shares redemption
 reserve has not been created during the year and in earlier years also
 since 1997-98.
 
 2.2 Calls in arrears accounts are subject to confirmation and
 reconciliation.
 
 3.1 Equity Share application money represents subscription received
 pursuant to the restructuring/settlement scheme. Instruments will be
 issued on sanction of rehabilitation scheme by BIFR. Necessary increase
 in authorised share capital will be done at appropriate time. The
 company does not envisage any refund out of share application money.
 
 3.2 The company has received amount of Rs. 4500 Lacs towards share
 application in the period 2003-04 to 2009-10 pending allotted subject
 to sanction of rehabilitation scheme by BIFR.
 
 4.1 Debentures, Rupee Term Loans (including Working capital term loan)
 and interest accrued and due thereon are secured/to be secured by
 first charge against all existing and future immovable properties,
 hypothecation of all movable assets of the Company by way of joint
 equitable mortgage and hypothecation (save and except book debts)
 created/to be created in favour of the financial institutions/banks
 ranking pari passu and personal guarantees of some of the directors
 subject to prior charge in favour of the company''s bankers on stock of
 raw materials, semi finished 7 finished goods, stores and book debts for
 working capital.
 
 4.2 Foreign Currency Loans from Hypo Vereinsbank including funded
 interest and interest accrued and due is secured by corporate guarantee
 from Modem Terry Towels Limited.
 
 5.3 Terms of redemption of Non Convertible Debentures based on
 restructuring/settlement wherever carried out is as under:
 
 a) Rs 60 Lacs are redeemable during 2013-14
 
 b) Rs 60 Lacs redeemable in 28 quarterly installments commencing from
 30th June, 2006 (The payment of Rs. 52.80 Lacs made towards settlement
 is shown as other current assets) expected to be fully paid by March''
 2013.
 
 c) Rs 120 Lacs redeemable in 28 quarterly installments commencing from
 31st March, 2006 (The payment of Rs. 107.12 Lacs made towards settlement
 is shown as other current assets) expected to be fully paid by January''
 2013.
 
 d) Rs 45 Lacs redeemable in 28 quarterly installments commencing from
 4th January, 2006 (The payment of Rs. 40.77 Lacs made towards
 settlement is shown as other current assets) expected to be fully raid
 by December'' 2012.
 
 e) Rs 75 Lacs redeemable in 28 quarterly installments commencing from
 31st December, 2005 (The payment of Rs. 70.44 Lacs made towards
 settlement is shown as other current assets) expected to be fully paid
 by September'' 2012.
 
 f) Rs 240 Lacs were to be redeemed on or before 31st March, 2009 (The
 payment of Rs. 240 Lacs made towards settlement is shown as other current
 assets and Company is renegotiating the terms of balance payment).  
 
 g) Rs 20 Lacs were redeemable by 15th November, 2008 (The payment of Rs
 20 Lacs made towards settlement is shown as other current assets).  
 
 h) Rs 4900 Lacs, out of which Rs 500 Lacs were redeemable by March''
 2008 and Rs 4400 Lacs were redeemable by 30th September, 2008 (The
 payment of Rs. 4900 Lacs made towards settlement is shown as other
 current assets).
 
 i) Rs 2355 Lacs were redeemable in 28 staggered quarterly installments
 from 30th September, 2004 (The payment of Rs. 2355 Lacs made towards
 settlement is shown as other current assets).  
 
 j) Rs 97.67 Lacs of suiting division were redeemable by 2010-11 (The
 payment of Rs 97.67 Lacs made towards settlement is shown as other
 current assets).
 
 k) Rs. 50 Lacs were redeemable in August'' 2003 (The payment of Rs.50
 Lacs made towards settlement is shown as other current assets).
 
 4.4 Pending fulfillment of various terms and conditions of
 restructuring/settlement and/or satisfaction of charge, payment of Rs.
 6889.59 lacs towards Rupee Term Loan (including working capital term
 loan) and Rs. 7933.79 lacs towards Non Convertible Debentures to various
 lenders has been shown as other current assets.
 
 4.5 a) The company has defaulted in repayment of foreign currency loan
 from Hypo Vereinsbank of Rs. 8148.42 Lacs since 1997-98 along with
 interest on the same.
 
 b) Exchange Fluctuation on foreign currency loan availed in DM currency
 to acquire Plant & Machinery has not been provided since 1st April.
 2001 due to conversion of currency from DM to Euro, as there is no
 currency conversion clause in the agreement. Accordingly, foreign
 currency loan and interest thereon is stated in books at exchange rates
 prevailing on 31st March, 2001. In case, the liability is accounted for
 based on the exchange rate of Euro as on the Balance sheet date, the
 liability in respect of principal amount and interest would have been
 higher by Rs. 6426.28 Lacs and Rs. 2356.58 Lacs respectively (Previous year
 Rs. 5289.63 Lacs and Rs. 1725.73 Lacs).
 
 c) Interest on above loan has been provided at fixed rate of 2.74% p.a.
 rather than a floating interest rate based on 6-months-DM-Libor plus a
 margin of 0.80% p.a., impact of which is not ascertainable.
 
 5.1 Security of Debentures and interest accrued and due thereon are
 mentioned in para 5.1 of Note 5.
 
 5.2 Unsecured Non Convertible Redeemable Debentures (Retail) initially
 when issued were secured by way of second charge on fixed assets of
 Yarn Division of the Company, subsequently assets of Yarn Division have
 been sold, hence the same is considered as unsecured debentures. The
 said debentures were to be redeemed in installments before 30th
 November, 2002 as per the resolution passed in the meeting of debenture
 holders held on 25th October, 1999, which is not paid and shall now be
 redeemed as per rehabilitation scheme to be sanctioned.
 
 5.3 In respect of restructured debts, future payment obligation is to
 be fulfilled as stipulated, failing which the original liability will
 fall back with interest and panel interest, amount of which is not
 ascertainable. However, SUUTI has restored the total liabilities due to
 default in payment of OTS amount and have intimated me outstanding dues
 of Rs. 111 3.82 crores including unsecured debts of Rs 7 Crores, dues
 of UTI MF, overdue & penal interest etc. as per their records as on
 31st March, 2012. The company has disputed the entire dues of UTI MF
 and is in the process of renegotiating the OTS proposal with them and
 SUUTI, pending which, unpaid liability of Rs. 13.60 crores as per
 earlier settlement terms is kept in books of accounts.
 
 6.1 Plant and Machinery include 24 looms having WDV of Rs. 36.46 Lacs,
 pertaining to closed suiting division lying in the premises of third
 party. The company has filed legal suit for recovery of these
 machineries.
 
 6.2 In pursuant to Accounting Standard 28 issued by The Institute of
 Chartered Accountants of India on Impairment of Assets, the company
 has made necessary provisions during 2005-06 for the impairment loss in
 respect of its Petrifies division. There are no primary indications
 thereafter that the recoverable amount of cash generating unit is less
 than its carrying cost. Accordingly, no further detailed exercise has
 been done to calculate the amount of impairment loss.
 
 6.3 Depreciation for the year against plant and machinery is net of
 Rs. 369.76 Lacs towards reversal of excess depreciation provided in
 previous year.
 
 6.4 Deductions in Plant and Machineries pertains to items discarded.
 
 7.1 Pending fulfillment of various terms and conditions of
 restructuring/settlement and/or satisfaction of charge Rs. 991.94 Lacs
 towards preference share capital and Rs. 14823.38 Lacs towards
 borrowings (including Rs.  126.98 towards preference share capital and
 Rs.  99.05 Lacs towards borrowings paid during the year) to various
 lenders has been shown as payments to Financial Institutions and Banks
 in Other current assets.
 
 8.  Related Party Disclosure as per Accounting Standard 18 
 
 (i) Related Party Relationships :
 
 (a) Where Control exists : NIL
 
 (b) Key Management Personnel :
 
 Shri Kamal Ranka: Chairman and Managing Director 
 
 Shri S. N. Sharma : Whole Time Director & CEO
 
 (c) Relative of Key Management Personnel with whom transactions have
 been entered during the year : 
 
 Shri Kanishk Ranka
 
 M/s. Shubham Corporate Advisory Services Pvt. Ltd
 
 9. Defferred Tax Assets
 
 9.1 Provision for Income Tax has not been made for the year in view of
 the past accumulated losses.
 
 10.  Additional Information to the financial statements
 
 10.1 The net worth of the company has been fully eroded as on 31st
 March, 2000 as per the provisions of the Sick Industrial Companies
 (Special Provision) Act 1985 (SICA).The Board of industrial and
 Financial Reconstruction (BIFR) has declared the company as Sick on the
 basis of fresh reference filed as per audited accounts for the year
 ended 31st March, 2010 and IFCI has been appointed as operating agency.
 Company has also filed draft rehabilitation scheme with operating
 agency and the same is under examination/circulation. Company has
 also entered into settlement with various lenders and payments are
 being made. Accordingly, pending approval of rehabilitation scheme, the
 accounts of the company have been prepared on going concern basis.
 
 10.2 Contingent Liabilities not provided for :
 
 10.2.1 Bank Guarantees and Letter of Credit Outstanding Rs. 822.99 Lacs
 (Previous year Rs. 822.99 Lacs).
 
 10.2.2 Claims and Liabilities against the company not acknowledged as
 debts Rs. 220.21 Lacs excluding interest, penalty etc. which is not
 ascertainable. (Previous year Rs. 216.91 Lacs)
 
 10.2.3 Excise Duty demand disputed by the company Rs. 742.94 Lacs
 (Previous Year Rs. 591.67 Lacs).
 
 10.2.4 Fuel Surcharge, Octroi Duty etc. disputed by the company Rs.
 4.20 Lacs (Previous Year Rs. 4.20 Lacs)
 
 10.2.5 Disputed demand of Sales Tax Rs. 313.36 Lacs (Previous year Rs.
 312.48 Lacs).
 
 10.3 a) Balances of Debtors, Creditors, Advances, etc. have been taken
 as per books of account and are subject to reconciliation/
 confirmation and consequential adjustments thereof.  
 
 b) Balances of Secured and Unsecured lenders have
 been taken as per books of accounts and are subject to reconciliation/
 confirmation, pending settlement with respective lenders. Adjustment of
 the same, if any, would be accounted for as and when ascertained.
 
 10.4 In the opinion of the Board of Directors; Current Assets, Loans
 and Advances (including capital advances) have a value on realization
 in the ordinary course of business at least equal to the amount at
 which they are stated. Adequate provisions have been made in accounts
 for all the known liabilities.
 
 10.5 Penal interest, compound interest and liquidated damages on dues
 of Financial Institutions, Banks and others wherever applicable have
 not been provided, pending reconciliation (amount not ascertained). The
 company expects waiver/relief on sanction of rehabilitation scheme by
 BIFR.
 
 10.6 Provision for interest amounting to Rs. 204.79 Lacs (including for
 the year Rs. 55.75 Lacs) on public fixed deposits and Rs. 523.13 Lacs
 (Including for the year Rs. 80.28 Lacs) on retail non convertible
 debentures have not been made since 1st October, 2002 as the company
 expects waiver/relief on sanction of rehabilitation scheme by BIFR.
 
 11.. The Hon''ble Company Law Board had passed an order on 23/01/2002
 that The repayment of Fixed Deposit shall be made by the company in
 accordance with the revival scheme as and when approved by the BIFR
 under the provision of SICA. In view of above, the company has been
 advised that as the repayment of the matured fixed deposits are covered
 by the above referred order and the DRS is pending for consideration
 before the Hon''ble BIFR, the same are not remained unclaimed and unpaid
 within the meaning of section 205 C of the Companies Act, 1956 and as
 such no amounts are required to be transferred to the Investor
 Education and Protection Fund. However payments on compassionate ground
 are being made continuously by the company as per the decision of die
 committee formed by the Hon''ble CLB for this purpose.