1.  Term loan from banks are secured by first pari passu charge on all
 fixed assets and second charge on current assets of the company.
 
 2.  Corporate loan and working capital from banks are secured by first
 pari passu charge on current assets and second charge on all fixed
 assets.
 
 3.  Term/Corp loan and working capital facilities are further secured
 by personal guarantee of three promoter directors.
 
 4.  Term loan from bank was taken during the financial year 2008-09 and
 carries the interest @ 13.75% to 14.5%. The loan is repayable in
 monthly instalments as per repayment schedule starting from April 2010.
 
 1.  Working capital from banks are secured by first pari passu charge
 on current assets and second charge on all fixed assets.
 
 2.  Working capital facilities are further secured by personal
 guarantee of three promoter directors.
 
 3.  Term loan from banks are secured by first pari passu charge on all
 fixed assets and second charge on current assets of the company.
 
 Note:
 
 1.  Aggregate value of quoted investment nil previous year nil.
 Unquoted Investment Rs. 15,417,192/- previous year Rs. 18,171,592/-.
 
 2.  The shares of subsidiary company sold during the year. The loss on
 Investment has been transferred to profit and loss account.
 
 1.  Contingent liability not provided in respect of:-
 
 i) Letters of Credit opened by Bank Rs.2653.65 lacs (Previous year
 Rs.2,786.30 lacs).
 
 ii) Foreign bills discounted by Banks Rs.2047.81 lacs (Previous year
 Rs. 1,481.62 lacs).
 
 iii) Dividend Payable on 6% non convertible cumulative redeemable
 preference shares of Rs.20,678,955 (Previous year Rs. 17,861,295) and
 6% convertible preference shares of Rs. 5,503,750 (Previous year Rs.
 1,618,750).
 
 2.  Depreciation:
 
 (a) Depreciation has been calculated on straight line method at the
 rates given in Schedule XIV of the Companies Act, 1956.
 
 (b) Depreciation on the Assets added / deduction during the year has
 been provided on pro-rata basis with reference to the months of
 addition / deduction.
 
 3.  The Company has received loans from Promoters/ Directors and their
 relatives. The same has been grouped under longterm borrowings.
 
 4.  The provision has made in the accounts for the present
 liabilityforfuture payment of Gratuity to employees ofthe Company in
 terms of Gratuity Act, 1972.
 
 5.  The company has incurred expenditure on development of production
 of various new belts for local and Export market. The company intends
 to develop manufacture of speciality belts for the hitec applications
 and innovations that are coming in the power transmissions industry and
 MF type belts for the new generation packaging machines and EPDM rubber
 cover belts for automotive industries. These would be able to withstand
 the temps and perform longer.
 
 All the above are new generation products that the company is now
 proceeding to manufacture to take care of the future needs of the power
 transmissions industry.
 
 During the year the company has incurred expenditure on development of
 new product which are yet to be manufactured commercially, the expenses
 incurred up to 31.03.2012 have been carried forward in capital
 work-in-progress.
 
 Opening balance as 01.04.2011 Rs. 38,050,000 Addition during the year
 Rs. 170,621,953
 
 Total Work-in-Progress as on 31.03.2012
 
 Rs. 208,671,953
 
 6.  The Accounting Standard 15 (Revised 2005) on Employee Benefits
 issued by the Institute of chartered Accountants of India has been
 adopted by the Company as under:
 
 7.  The Value of Stocks is as per inventory taken, prepared, valued and
 certified by the Management.
 
 8.  The Company continues to follow Cash System of Accounting with
 regard to reimbursement of Bank interest, charges, commission and fixed
 deposit.
 
 9.  The figure of sales shown during the year includes the amount of
 Excise, wherever applicable.
 
 10.  Book debts, advances, bank deposits and credit balances are taken
 subject to their respective confirmation.
 
 11.  In the opinion of the Board of Directors, the Current assets,
 loans and advances are approximately of the values stated, if realized
 in the ordinary course of business. The provision for depreciation and
 all known liabilities are adequate and not in excess of the amount
 reasonably necessary.
 
 12. Capital Commitment: Estimated value of contracts, remaining to be
 executed on capital account to the extent not provided is Nil.
 
 13. Sundry Advances includes deposit to the various government
 departments, amount receivable from Excise and Sales Tax departments,
 paid to subsidiaries companies and advance towards capital goods.
 
 14. The Company is engaged in the business of Industrial rubber
 products and there is no reportable segment as per Accounting Standard
 (AS 17) ''Segment Reporting''.
 
 The company has manufacturing facility at Nagpur, India. It is not
 possible to directly attribute or allocate on a reasonable basis, the
 expenses, assets and liabilities to these geographical segments.
 
 15.  Joint Venture Companies: The Company''s interest, as a venture, in
 a jointly controlled entity (Incorporated joint venture) is:
 
 16.  The Company has foreign subsidiaries known as
 
 1) PIX South America Importacao E Exportacao DeCorreias E Mangueiras
 Ltda., Brazil has been closed and advance given to this party transfer
 to bad debts.
 
 2) PIX Middle East FZC, UAE. The annual accounts from subsidiary
 companies attached herewith.
 
 17.  Deferred Tax:
 
 (a) Deferred Tax has been provided in accordance with Accounting
 Standard 22 - Accounting for Taxes on income - issued by the Institute
 of Chartered Accountants of India.
 
 18.  Related Parties'' Disclosures:
 
 1.  Names of related parties with whom transactions have taken place
 during the year:
 
 (a) Joint Venture Companies
 
 i) PIX Europe Limited
 
 ii) PIX QCS Limited
 
 Subsidiary Companies
 
 I) PIX South America Importacao E Exportacao De Correias E Mangueiras
 Ltda, Brazil (The above subsidiary closed with effect from 15th April,
 2011)
 
 ii) PIX Middle East FZC, UAE
 
 (b) Key Management Personnel:
 
 (1) Mr Sukhpal Singh Sethi
 
 (2) Mr Amarpal Sethi
 
 (3) Mr Sonepal Sethi
 
 (4) Mr Rishipal Sethi
 
 (5) Mr Joe Paul
 
 (6) Mr Karanpal Sethi
 
 19.  The Company has not received information from vendors regarding
 their status under the Micro Small and Medium Enterprises Development
 Act, 2006. Hence disclosures relating to amounts un- paid as at yearly
 end together with interest paid / payable under this Act have not been
 given.
 
 20.  Additional information pursuant to the provision of paragraph 3
 and 4 of Part II of the Schedule VI to the Companies Act, 1956.
 
 21.  The company has foreign subsidiaries known as PIX South America
 Importacao E Exportacao De Correias E Mangueiras Ltda, Brazil & PIX
 Middle East FZC, UAE. The annual audited accounts from subsidiary
 companies have not been received.  Hence consolidated Profit & Loss
 accounts and Balance Sheet have not been attached. The accounts will be
 consolidated thereafter & report will be sent on request received from
 shareholders.
 
 22.  The previous year figures are regrouped and rearranged to compare
 with those of current year.