OTHERS USE OF ESTIMATES:
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that effect the reported amounts of assets and
 liabilities and the disclosures of contingent liabilities as at the
 date of the financial statements and reported amount of revenues and
 expenses during the reporting period. Actual results could differ from
 these estimates. Any revision to the estimates is recognized
 prospectively.
 
 Terms & Conditions of shares:
 
 The Company has two class of shares namely Equity having a par value of
 Rs. 10/- and Preference having a par value of Rs. 100/- per snare. Each
 Share holder is eligible for one vote per share.
 
 In the event of liquidation, the equity share holders are eligible to
 receive the remaining assets of the company after distribution of all
 preferentiai amounts in proportion of their share holding.
 
 1 Additional Information To Financial Statements
 
 1 Contingent Liabilities not provided for:
 
 a) The Company has undertaken export obligation under EPCG Scheme to
 Export within a period of eight years for the following years - 2005 -
 Rs. 43,756,024/-, 2007 - Rs. 27,524,920/-, 2010 - Rs. 124,364,744/-,
 2011 - Rs. 116,144,515/-, 2012 - Rs. 32,286,384/- failing which
 additional customs duty of Rs. 35,341,102/- along with interest shall
 be payable. Of the above, the company has fulfilled obligation to the
 extent of Rs. 65,517,836/- upto 30.06.2012.
 
 b) The Bank has given guarantees for Rs. 6,971,780/- (previous year -
 Rs. 6,364,280/-) towards payment of customs duty in respect of import
 of Machinery.
 
 c) Future Lease rental payable 6,000,000 10,500,000
 
 d) The Amount called up but not for IDBI Shares including interest
 5,702,233 5,702,233
 
 e) Some of the dismissed employees have appealed before the labour
 court for reinstating them along with back wages from the date of
 dismissal, which the company is contesting. As the quantum of
 liability, if any, is dependent on the orders to be passed no provision
 is made in the accounts as it has not reached finality.
 
 2 Interest in respect of partly paid share is not presently
 ascertainable for the Current year and hence not included under IDBI
 partly paid shares.
 
 3 Interest on Bank Loans disclosed under financial charges is net of
 interest subsidy on TUF Loan amounting to Rs. 29,23,351/- (Previous
 year Rs. 37,00,902/-)
 
 4 (a) Income Tax Assessment upto the year ended 31.03.2010 (AY -
 2010/2011) has been completed.
 
 (b) (i) VAT Assessment has been completed upto 31.03.2011.  (ii) CST
 Assessment has been completed upto 31.03.2010.
 
 5 The information required to disclosed under the Micro, Small and
 Medium Enterprises Development Act, 2006 has been determined to the
 extent such parties have been identified on the basis of the
 information available with the Company. There are no overdues to
 parties on accounts of principal amount and / or interest and
 accordingly no additional disclosures have been made.
 
 6 (a) In the opinion of the Board of Directors, assets other than
 fixed assets have a value on realisation in the ordinary course of
 business at least equal to the amount at which they are stated.
 
 (b) Balance of certain sundry debtors, advances and sundry creditors
 are subject to confirmation / reconciliation, as the Company has
 received replies only from few parties for the confirmation statements
 sent by the Company. The adjustments thereof, if any, having an impact
 of revenue nature will be made in the year in which the same are
 finalized and settled.
 
 7 Amount of Sales Tax / Value Added Tax of Rs. 2,76,75,156/- collected
 on Sales has not been included in the Turnover of the Company.
 
 8 Segment Report (AS-17)
 
 As the Company operates under single segment related to Textiles,
 segment reporting is not applicable to the Company for the year under
 review.
 
 9 Lease Disclosure (AS-19):
 
 Disclosure of operating lease taken by the Company as per AS-19 are as
 follows:
 
 a) The Company has taken the entire Fixed Assets of Supreme Yarn
 Spinners Limited under cancelable operating lease, which are normally
 renewed on expiry.
 
 10 Disclosure as required under listing agreement:
 
 Statement of loans and advances to associates: (As required under
 Clause 32 of listing agreement with the stock exchanges) To associates:
 Rs. NIL
 
 11 During the year ended 30th June 2012 the Revised Schedule V!
 notified under the Companies Act, 1956, has become applicable to the
 company and accordingly the Company has reclassified / regrouped
 previous year figures to confirm to this year''s classifcation
 reclassified wherever necessary.