1. a) CONTINGENT LIABILITY not provided for in Books of Accounts: -
 
 (i) Guarantee given to State Bank of Travancore for loans/credit
 facilities taken by associate company namely Mohit Overseas Ltd.,
 Rs.l,00,00,000/-(P.Y. Rs.1,00,00,000/-).  To secure this guarantee and
 loan so taken by Mohit Overseas Ltd., the bank has extended the first
 charge on entire fixed assets of the Kim unit of the company.
 
 (ii) Liability in respect of loss in Foreign Exchange Swap Contract
 with ICICI Bank Ltd., which matured on 18th September, 2009, of Rs.
 134.28 Lacs (P.Y. Rs. 134.28 Lacs on Mark to Market basis), which
 liability has not been acknowledged and provided by the the company as
 in the opinion of the management of the company the Swap Contract was
 void in law ab initio.
 
 (iii) Disputed Sales Tax Demand of F.Y. 2001-02 of Rs. 4,86,462/- (P.Y.
 Rs. 4,86,462/-); disputed Gujarat VAT demand of F.Y. 2006-07 of Rs.
 4,60,80,888/- (P.Y. Rs. Nil) and disputed Entry Tax under Gujarat Laws
 of Rs. 4,33,18,045/- (P.Y. Rs. Nil) (including interest and penalty)
 has not been provided.
 
 (iv) Disputed Income Tax Demand of Rs. 9.79 Lacs (P.Y. Rs. 29.31 Lacs).
 
 2) Unsecured Loans, Sundry Creditors, Sundry Debtors and Loans and
 Advances are subject to confirmation.
 
 3) Loans & Advances include a sum of Rs. 3.11 Lacs (P.Y. Rs. 191.31
 Lacs) due from companies in which directors of this company are
 directors and which is a company under the same management under
 section 370(1B) of the Companies Act, 1956.
 
 4) SEGMENT INFORMATION :-
 
 In accordance with Accounting Standard - 17 on Segment Reporting, the
 company has identified two reportable segments viz. Textiles & AAC
 Block and reported taking into account nature of products & services,
 the differing risks and returns of these segments.
 
 (ii) The reportable segments are further described below:
 
 a) The Textiles Division includes production and marketing activities
 of Textile Products viz.  Texturised Yarn, Twisted Yarn, Grey Cloth
 Fabrics & Finished Cloth Fabrics.
 
 b) The AAC Block Division includes production and marketing activities
 of Auto-claved Aerated Concrete Blocks
 
 (iii) The company has not reported Geographical Segment (i.e. Secondary
 Segment) as all the operations and risks & return of the company are
 based in India and no activity is done outside India.
 
 5) Previous year figures have been regrouped wherever thought
 necessary to make them comparable with figures of current year.
 
 6) EVENTS OCCURING AFTER BALANCE SHEET DATE :
 
 The company after the date of balance sheet but before the approval of
 accounts has sold out its AAC Block Unit at Palghar. The company has
 sold the unit in June, 2011. Hence, the Unit of AAC Block of Palghar as
 on the date of approval of accounts has already been sold and there
 will be no operations with respect to the same after june, 2011.