1.0 CONTINGENT LIABILITIES NOT PROVIDED FOR:
 
 a) Estimated value of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs.2.33 lac (previous
 year Rs.3.71 lac).
 
 b) A tripartite agreement was entered into between the company,
 promoters and co-promoters on 15th October''2007 whereby it was agreed
 to provide for interest @12% per annum amounting to Rs.1,99,28,844/-
 for the period from September''05 to 15th October''07 on the amount
 brought-in by co- promoters on various dates of Rs.7.75 crore. However,
 no provision has been made pending in the accounts as tripartite
 agreement become part of rehabilitation scheme of BIFR, as per Hon''ble
 BIFR order dated 12.06.2008 and an opinion as to the applicability of
 section 58A of the Companies Act''1956,as original agreement dated
 10/03/05 & further tripartite agreement dated 15/10/07 become part of
 rehabilitation scheme of BIFR and Modified Draft Rehabilitation Scheme,
 filed on 27th April, 2010.
 
 c) The Balance sheet of the company reflects amount Rs. 109.50 lacs
 (Principal) payable to PNB (one of the secured creditor of the company)
 as per Modified Draft Rehabilitation Scheme filed on 27th April, 2010
 by the company to Hon''ble BIFR and PNB as well. As the company proposes
 to seek waiver of interest from PNB for Rs. 270.77 lacs, no provision
 is made in the Balance sheet of the company for the said interest. The
 unprovided interest with respect to which company proposes to approach
 PNB for waiver amount Rs. 270.77 lacs. Approval of Hon''ble BIFR &
 Secured creditors in respect of Modified Draft Rehabilitation Scheme is
 still pending.
 
 d) The Balance sheet of the company reflects amount Rs. 394.50 lacs to
 HUDCO (another secured creditors of the company) as per Modified Draft
 Rehabilitation Scheme filed on 27th April, 2010 by the company to
 Hon''ble BIFR and HUDCO as well. As the company proposes to seek waiver
 of interest from HUDCO for Rs. 2673.64 lacs, no provision is made in
 the balance sheet of the company for said interest. The unprovided
 interest with respect to which company proposes to approach HUDCO for
 waiver amount Rs.  2673.04. Approval of Hon''ble BIFR & Secured
 creditors in respect of Modified Draft Rehabilitation Scheme is still
 pending.
 
 2.0 During the financial year 2008-09 Company has accepted Rs.6.80
 crore through an Investor against allotment of equity shares as per
 direction by BIFR order dated 12.06.08. The amount is lying in advance
 against equity (under current liabilities).
 
 3.0 a) In view of uncertainty involved, recovery pursuant to the rule
 of the court award (decree) by Delhi High Court and appointment of
 Receiver by German Court with respect to Arbitration Award against the
 collaborators M/s Dorstener, shall be recognized in the accounts on
 receipt basis as per the provisions of Accounting Standard 4, issued by
 the Institute of Chartered Accountants of India.
 
 b) Company has filed civil suits for recovery of principal amount of
 Rs.106 lac and interest and other charges thereon.
 
 4.0 As required by the Accounting Standard 18, issued by the Institute
 of Chartered Accountants of India, effective from 1st April''2001, As
 per Management representation provide by the management that during the
 financial year there is no transaction made with the related party as
 per defined in the accounting standard.
 
 5.0 Taxation: Provision for Income Tax comprises of current tax and
 deferred tax charge or release. Deferred tax is recognized, subject to
 consideration of prudence, being difference between taxable and
 accounting income / expenditure that originate in one period and are
 capable of reversal in one or more subsequent period (s). Deferred tax
 assets are recognized as there is ''virtual certainty'' that sufficient
 future taxable income will be available against which such deferred tax
 assets will be realized. No provision has been made towards income tax
 for the year in view of operational losses.
 
 6.0 Segment Reporting: As informed by the management, the same is not
 applicable to the company, as company has dealt with only one segment
 during the year. (Previous year - NIL segments).
 
 7.0 Term loans from HUDCO and Punjab National Bank are secured by the
 first mortgage and charge on all company''s immovable and movable
 properties, both present and future ranking pari-passu and are also
 personally guaranteed by the previous Chairman & Managing Director, Mr.
 Ved Prakash. The company has got stay from DRAT against order of DRT
 dated 9th March, 2010.
 
 8.0 Deposits include National Savings Certificates, Fixed deposit
 receipts and interest accrued thereon.
 
 9.0 Traveling expenses include expenses on Director''s traveling
 Rs.4,06,557/- (previous year Rs. 7,23,330/-) and foreign traveling of
 Rs. NIL (previous year Rs.NIL).
 
 10.0 Balances grouped under Sundry Debtors, Sundry Creditors, Current
 Liabilities, Bank Balances & Loans and Advance including on Capital
 Account are subject to confirmation from respective parties &
 reconciliation.
 
 11.0 Investments are shown at cost.
 
 12.0 No provision has been made in the accounts for retirement & other
 benefits available to employees as mentioned in AS-15.
 
 13.0 To the extent determinable and certified by the management, there
 were no dues payable to Micro; Small & Medium Enterprises to the extant
 such parties have been identified on the basis of information available
 with the company.
 
 14.0 Previous year figures have been regrouped / rearranged, wherever
 necessary to make them comparable.