1.  With respect to the Balances of Debtors & Creditors and
 advances/deposits received from the customers as per books of account.
 Confirmation of balances are awaited and adjustments if any will be
 made in the books on receipt of confirmations.
 
 2.  DUES TO MICRO''SMALL AND MEDIUM ENTERPRISES
 
 The management is currently in the process of identifying enterprises
 which have provided goods and services to the Company which qualify
 under the definition of micro''small and medium enterprises''as defined 
 in Micro''Small and Medium Enterprises Act 2001. Accordingly''based
 on information available''the amount payable to such enterprises as on
 31st March 2012 is Nil.
 
 3.  The computation of profit under section 349 of the Companies
 Act,1956 is not considered necessary as the managerial remuneration
 that is paid is minimum remuneration based on the effective capital of
 the Company as prescribed under Schedule XIII of the said Act.
 
 4.  LEASES
 
 Operating leases
 
 The Company is obligated under cancelable operating leases for
 Kavarapet factory which are renewable at the options of the lessor and
 the lessee. The expense under the contracted lease amounts to Rs.29.73
 Lakhs ( previous year Rs.21.83 Lakhs)
 
 5.  As at 31st March,2012''the Company had Rs.471.39 lakhs unabsorbed
 depreciation and carried forward of losses under tax laws.
 
 6.  SEGMENTAL REPORTING
 
 The Company currently operates in one business segment in manufacturing
 of PP bags and one geographical segment in India. In line with
 Accounting Standard 17''as the relevant information is available from
 the balance sheet and the statement of profit and loss itself''and
 therefore keeping in view of the objective of segment reporting''the
 Company has not disclosed segment information.
 
 7.  CONTINGENT LIABILITIES             (Rs. in Lakhs)
 
 Particulars                As at 
                            31.03.2012     As at 
                                           31.03.2011
 
 a) Disputed Amount 
 of Sales tax               13.88          13.88
 
 b) Disputed Amount 
 of Central Excise          6.31           6.31
 
 No provision has been made in the accounts in respect of disputed
 amount of sales tax as the Company has contested the case and is
 hopeful of getting the verdict in its favour. Certain claims/show cause
 notices disputed have neither been considered as contingent liability
 nor acknowledged as claim''based on the opinion obtained''since the
 possibility of loss is remote.
 
 8.  Secured Loans availed from The Karnataka Bank Limited are secured
 by first charge on specific assets acquired out of the loan and
 personal guarantees of directors Sri.G. Radhakrishna''Sri. G.S.Sridhar
 and Sri. G.V.Gopinath''further Secured by personal guarantees of Sri.
 G.V.Chalapathi''and Sri.  G. Muralidhar.
 
 9.  (a) Working capital facilitates from The Karnataka Bank Limited
 are secured by fi rst charge on the
 
 current assets consisting of stock of raw materials''finished goods,
 work-in-process''debtors and personal guarantees of directors Sri.G.
 Radhakrishna''Sri. G.S.Sridhar and Sri. G.V.Gopinath.
 
 (b) Working capital loan converted to Term Loan''repayable given a
 period of 3 years Secured by first charge on the current assets
 consisting of stock of raw materials''finished goods''work-in-
 process''debtors and personal guarantees of directors Sri.G.
 Radhakrishna''Sri. G.S.Sridhar and Sri. G.V.Gopinath.
 
 8.  Advances & Deposits includes an amount of Rs.16.55 Lakhs being
 Admitted and Disputed Sales Tax of Rs.14.27 Lakhs for various years
 paid and Income Tax for the Assessment Year 1996-97 of Rs.2.27 Lakhs
 paid''but kept as Deposit in the books since the Company has gone on
 appeal in respect of these matters. Necessary adjustments in the books
 of accounts will be made in the year in which the outcome of the appeal
 is known.
 
 9.  During the year deferred tax asset arising out of unabsorbed
 depreciation has not been recognized in the absence of virtual
 certainty supported by convincing evidence of future taxable income.
 Unrecognized deferred tax asset will be reassessed in future years.
 
 10.  PREVIOUS YEAR FIGURES
 
 Till the year ended 31st March 2011''the company was using pre-revised
 Schedule VI to the Companies Act 1956''for preparation and presentation
 of financial statements. During the year ended 31st March 2012''the
 revised Schedule VI notified under the Companies Act 1956''has become
 applicable to the Company. The company has reclassified previous year
 figures to conform to this year’s classifi cation.  It signifi cantly
 impacts presentation and disclosures made in the financial statements,
 particularly presentation of balance sheet.