Note 1- Amounts in the financial statements are presented in Rupees and
 rounded off to the nearest decimals thereoff. The previous year figures
 have been regrouped / reclassified, wherever necessary to conform to
 the current period presentation.
 
 a. Rights, preferences and restriction attaching to various classes of
 shares including restriction on distribution of dividends and repayment
 of capital.
 
 The Company has only one class of shares which does not enjoy any
 preferential right or bear any restriction with regard to distribution
 of dividend or repayment of capital. Each holder of equity shares is
 entitled to one vote per share.
 
 Note: The Board of Directors has recommended dividend @ Rs.0.75 per
 equity shares of Rs.10/- each on 17,714,800 equity shares for the year
 ended 31.03.2012 (Previous year: Rs. Nil).
 
 1.1 In accordance with the West Bengal Incentive Scheme 2000,
 announced by the Govt. of West Bengal, the Company has approved an
 action plan for availing the subsidy benefits based on the eligibility
 certificate issued by the West Bengal Industrial Development
 Corporation Ltd. In view of the reasonable uncertainty and the method
 of calculation of subsidies, such subsidies are accounted for as and
 when the disbursements will be received.
 
 1.2 In the opinion of the Board the Current Assets, Loans and Advances
 are not less than the stated value if realised in ordinary course of
 business. The provision for all known liabilities is adequate. There is
 no contingent liabilities except stated, as informed by the Management.
 
 1.3 The Business of the Company falls under a single segment i.e.
 Manufacturing of PP Woven Sacks / Fabric / Liner. In view of the
 general classification notified by Central Government in exercise of
 powers conferred u/s 211(3C) of Companies Act, 1956 for Companies
 operating in single segment, the disclosure requirement as per
 Accounting Standard-17 on Segment Reporting is not applicable to the
 Company. The Company''s business is mainly concentrated in similar
 geographical, political and economical conditions; hence disclosure for
 geographical segment is also not required.
 
 1.4 The Company is in communication with its suppliers to ascertain
 the applicability of The Micro Small and Medium Enterprises
 Development Act, 2006. As on the date of this Balance Sheet the
 Company has not received any communication from any of its suppliers
 regarding the applicability of this Act to them. This has been relied
 upon by the Auditors.
 
 1.5 Changes in Accounting Policy:
 
 During the year, the Company has made provision for employee benefits
 in accordance with Accounting Standard-15 (Revised 2005) on Employee
 Benefits. Consequent to this change, the employee cost for the current
 year is lower by Rs.314,896. Further in accordance with the transitional
 provisions of AS-15, the excess provision towards Employee Benefits as
 on 01.04.2011 amounting to Rs.236,874 has been credited to the Statement
 of Profit and Loss.
 
 1.6 Post employment benefits:
 
 a) Defined contribution plans: The Company has recognised an expense of
 Rs.1,005,696 (Previous year Rs.975,364) towards the defined contribution
 plans.
 
 5 The estimates of future salary increases, considered in actuarial
 valuation takes account of inflation, seniority, promotion and other
 relevant factors such as supply and demand in employment market.
 
 6 Discount rate is based upon the market yields available on Government
 Bonds at the accounting date with a term that matches with that of
 liabilities.
 
 1.7 Contingent liabilities:
 
 a) Estimated amount of contract remaining Rs. Nil (Previous year Rs.50,000)
 is to be executed on capital account and not provided for.
 
 b) Unexpired bank guarantee is given by the Company against EPGC scheme
 and Public issue for Rs.1,948,431(Previous year Rs.193,431).
 
 c) Outstanding liability on account of letter of credit is given by the
 Company against electricity security deposit for Rs.2,910,000 (Previous
 year Rs.2,910,000).
 
 d) On account of corporate guarantee given to bank for secured loan
 taken by group companies, Rs. 99,472,250 (Previous year Rs.99,472,250)
 
 1.8 The Company is under process of investigation as per SEBI ad
 interim exparte order WTM/PS/45/ID9/DEC/2011 dated 28.12.2011 in
 exercise of the powers conferred upon SEBI under section 11(1), 11(4),
 11A and 11B of the said act and issued certain directions for the
 Company to comply with. Accordingly the Company recalled the secured
 loan from its group company and deposited the same in Escrow account.
 
 1.9 The Company filed a WRIT petition (1971(W) of 2012) dated
 04.02.2012 in Calcutta High Court challenging validity of SEBI''s
 direction under Article 226. On 08.02.2012, the Company received an
 interim order from Court allowing SEBI to continue further
 investigation but restrained them to pass further order.
 
 1.10 As a matter of prudence, interest accrued on Escrow Account of
 Rs.2,553,937 and TDS there on of Rs.255,394 for the year ended 31.03.2012
 has not been accounted for in the Books of Accounts as the matter is
 sub judice, the recognition of interest has been postponed in
 accordance with AS-9 Revenue recognition.
 
 1.11 Note No 1 to 2.38 forms an integral part of financial statement.