1.  Contingent Liabilities
 
 a) Estimated amount of contracts remaining to be executed and not
 provided for: Rs Nil (Previous Year - Nil).
 
 b) On account of delayed / non-compliance of various fiscal statues -
 Amount Unascertainable.
 
 c) Claims against the company not acknowledged as debts: Nil. (Previous
 year Rs. Nil).
 
 2 (i) The Company is facing labour unrest w.e.f 02-04-2008, reference
 to notice dated 02-04-2008 issued by Mangement in this regard.
 
 (ii) Wages provision has been made, as informed by the Management, since
 the Mangement is in the process of negotiating and settlement of wages
 with the labours. Due to non-availability in respect of statutory
 records and other records like PF, ESI, etc., the amount
 due/penalty/intrest etc., could not be ascertained.
 
 (iii) Reduction of Share Capital and Securities Premium Account: The
 Company''s paid up share capital is reduced from Rs 19,22,82,380 divided
 into 1,92,28,238 equity shares of Rs 10/- each to Rs.  14,93,90,380
 divided into 1,49,39,038 equity shares of Rs 10/- each.
 
 An amount of Rs. 17,52,09,000 lying credit in the share premium account
 has been reduced as per the special resolution passed at the AGM of the
 company on 17-08-2007 and also as per the approval accorded by the
 Hon''ble High Court, Madras, vide its order dated 04-08-2008.
 
 Further, certification of Registration of Order of the Hon''ble High
 Court, Madras confirming the , reduction of share capital and share
 premium account issued by ROC, Tamilnadu, Coimbatore on 09-09-2008.
 
 Pursuant to the Order of the High Court and the Scheme of Reduction of
 Share Capital as approved by the members of this Company at its 14th
 Annual General Meeting held on 17-08-2007, the accumulated losses of
 the company as at 01-04-2007 (B/F) are ordered to be set off as
 follows:- 
 
 Accumulated losses to be set off   ............. Rs 21,81,01,000
 
 Against Share Premium A/c          ............. Rs 17,52,09,000
 
 Against Paid up Share Capital A/c  ............. Rs  4,28,92,000
 
 Further, as approved by the High Court of Madras, that the words And
 Reduced pursuant to the reduction has been dispensed with.
 
 Further, the procedure regarding reduction (ie., making necessary
 endorsements on the share certificates etc.,) of paid-up share capital
 has to be complied with. However, based on the court order and fling of
 ROC., the share Capital and share premium account have been reducted
 and given effect in the balance sheet.
 
 3.  The Balances appearing under loans and advances, sundry debtors,
 sundry creditors other current liabilities and Deposits and
 inter-company balances are subject to confirmations and reconciliations
 with consequent adjustments if any; the impact thereof of reduction /
 increase in the assets / liabilites consequent to the completion of
 reconciliation by the management.
 
 4.  In the opinion of the Management, the Current assets and loans and
 advances are approximately of the value as stated, if realised in the
 ordinary course of business and adequate provisions for all known
 liabilities have been made in the accounts except otherwise stated
 elsewhere in other notes.
 
 5.  The company has not made any provision in the books towards the
 liability for the gratuity and retirement benefits to the employees
 thugh prescribed in accounting standard 15 issued by the Institute of
 Chartered Accountants of India, as a consequence of which the loss for
 the year and the corresponding liability has been understated Amount
 un-ascertainable.
 
 6.  Delay/Non-Remittance of Provident Fund and Employees State
 Insurance Corporation:- The company has filed a suit in the Court for
 the adjustment of excess Provident Fund paid in earlier years in group
 companies towards dues for the subsequent years of the company. The
 Company has got a favorable order for adjustment of group Companies
 excess payments towards the dues.  -
 
 7.  a). Financial year: 12 months from 1st Oct 2010 to 30th Sep 2011.
 
 b) Previous year figures have been re-grouped / re-arranged wherever
 necessary.
 
 8.  The liability to Small Scale Industries for supplies & services as
 on 30-Sep-11 is ''NIL'' on the basis of the information available with
 the Company.
 
 9.  Deferred tax asset as on 30-Sep-11, has not been recognized since
 there is no reasonable certainty of sufficient taxable income being
 available against which such deferred tax asset can be realised.
 
 10.  As per the Management representation, there is no impairment of
 fixed assests during the period.
 
 11.  Segment Reporting:
 
 The Operations of the Company are in essence concentrated in a
 particular geographical area and in a particular product / service only
 hence Segment reporting as prescribed by the Accounting Standard 17 on
 Segmental Reporting by The Institute of Chartered Accountants of India
 is not applicable.