AS AT 30TH    AS AT 30TH
                                           JUNE, 2009    JUNE, 2008
                                               RS.           RS.
 
 1.Contingent Liabilities not provided for:
 
 a Disputed Demand for tax (excluding interest thereon) not provided for
 pending appeal.
 
 - Sales Tax                             1,34,29,471     1,34,29,471
 
 b.  Claims against the Company not
    acknowledged as debts                   4,34,818        4,34,818
 
 2.  The advance received in earlier periods against subscription of
 shares amounting to Rs.20,05,12,650/- (Previous year Rs.
 20,05,12,650/-) represents the contribution received by the Company
 from the Promoters and their Associates in terms of the conditions as
 laid down by the financial institutions towards the outlay of funds for
 the expansion project and would be adjusted against the proposed rights
 issue of the entitlements of the promoters.
 
 3.  In the opinion of the Company, the value of loans and advances on
 realisation in the ordinary course of business, shall be atleast equal
 to the amount at which they are stated. This being a technical &
 Management aspect, the Auditors have relied on their representation.
 
 4.  The Company was exporting the finished goods to various parties on
 regular basis upto 1995-96. Due to closure of plant w.e.f. October,
 1996 the Company could not export thereafter. In view of this the
 Debtors did not remit the balance outstanding amount aggregating to Rs.
 7,94,07,453/-. The Company has been pursuing the matter to recover the
 outstandings but inspite of best efforts, could not recover the balance
 amount. Action for seeking approval for writing off the amount from the
 competent authority is being initiated. In the meantime the Company had
 made a provision for doubtful debts in earlier years.
 
 5.  There is no unpaid amount payable to Micro, Small & Medium
 Enterprises as at 30th June, 2009. This information is required to be
 disclosed under the Micro, Small & Medium Enterprises Development Act,
 2006.
 
 6.  Balance with parties in respect of debtors, creditors and advances
 and some banks etc.are subject to confirmations and due adjustments if
 any, shall be made on receipt and reconciliations thereof.
 
 7.  Figures have been rounded off to the nearest rupee.
 
 8.  There was no production or sales during the period under review.
 
 9.  As reported earlier in years, the Financial Institutions led by
 IDBI had taken over the possession of all the movable & immovable
 assets of the Company on 19/12/2005, as per provisions of the
 Securitisation & Reconstruction of Financial Assets and Enforcement of
 Secutiry Interest act, 2002 (SARFAESI). Subsequently, BIFR on the
 statement of IDBI confirming the action under SARFAESI, has vide its
 order dated 18-06-2007 declared that the reference to BIFR stands
 abated in terms of the third proviso to Section 15(1) of SICA.
 
 In view of discontinuation of operations and possession of all the
 Assets of the Company having been taken over by the Secured Lenders,
 the accounts have been prepared on the basis that the Company is not a
 going concern.
 
 10. Previous period figures have been regrouped or rearranged where
 considered necessary.