AS AT        AS AT
 
                                            31.03.2010    31.03.2009
 
                                         (Rs. in lakhs)  (Rs. in lakhs)
 
 1.  CONTIGENT LIABILITIES
 
 (a) Letter of Credit (Net of Margin 
 of Rs. 65.67                                  197.97       1102.55 
 Lakhs previous year Rs. 281.60 Lakhs)
 
 (b) Disputed Liability towards 
 Income Tax                                     44.62         39.33 
 
 c) Disputed Liability towards 
 Sale Tax                                       56.05         44.25
 
 (d) Disputed Liability towards 
 Local Area                                     47.99         47.99 
 Development Tax
 
 (e) Disputed Liability towards A.E.P.C          9.85           Nil
 
 (f) Surety given to Sale Tax Deptt. 
 For third party                                    1             1
 
 2.  Estimated amount of contracts remaining to be executed on Capital
 account is Rs. 60.00 lakhs (Previous Year Rs.275.00 lakhs)
 
 3.  Computation of Net Profit in accordance with section 198/349 of the
 Companies Act, 1956 has not been given as no commission is payable to
 managing/whole time Director.
 
 4.  Previous years figures have been regrouped / rearranged wherever
 considered necessary to make comparable with the current year figures.
 
 5.  Sundry creditors includes Rs. 15,45,688.00 as on 31st March 2010
 (Previous year Rs. 19,22,572) due to Micro, Small and Medium
 Enterprises as required to be disclosed under the Micro, Small and
 Medium Enterprises Development Act, 2006. further there are no delays
 in payment to Micro, Small and Medium Enterprises. The information
 regarding Micro and Small enterprises has been determined to the extent
 such parties have been identified on the basis of information available
 with the Company. This has been relied upon by the auditors.
 
 6.  RELATED PARTY TRANSACTIONS
 
 As per AS-18 issued by the Institute of Chartered Accountants of India,
 the Companys related parties and transactions with them are disclosed
 below:
 
 Related Parties
 
 (a) Subsidiaries                   : Nil
 
 b) Associates                      : Nil
 
 (c) Key Managerial Personnel       1. J.RAggarwal
 
                                    2.  Vishal Aggarwal
 
                                    3.  S.K.Aggarwal
 
 (d) Relative of key Managerial     1. Sumitra Aggarwal 
 
 Personnel                          2. Vikas Aggan/val
 
 (e) Enterprises over which key     1. M/s Reckon Industries Ltd.
 
 management personnel (KMP)         2. M/s Ruchi India Limited
 
 or relative having influence       3.  M/s Target Fashion 
                                               Limited.
 
                                    4.  M/s Vinsan Healthcare Ltd.
 
                                    5.  M/s Reckon Pharmachem Pvt. Ltd.
 
                                    6.  M/s Shyam Tex Exports Ltd.
 
 7.  SEGMENT INFORMATION:
 
 a) Primary Segment Reporting by Business Segment:
 
 Based on the guidelines in Accounting Standard on segment Reporting
 (AS-17) issued by the ICAI, The Companys primary business segment is
 Manufacture in textiles. The Textile Business incorporate the product
 groups namely: Dyeing and Processing of woven and knitted Fabrics and
 Processing and dyeing of Yarn and Manufacture of Readymade Garments and
 Sewing threads, which mainly have similar risks and returns.
 
 The Company has common fixed assets for producing goods for overseas
 market and domestic markets, hence separate figures for fixed
 assets/additions to fixed assets etc. cannot be furnished.
 
 8.  FINANCIAL AND DERIVATIVE INSTRUMENTS
 
 a) The Company have entered into derivative contract under the category
 Currency swaps and Notional Principal amount outstanding as on 31st
 March 2010 amounts to Rs. 20,00,00,000 (Previous year Rs.20,00,00,000)
 
 b) In respect of outstanding derivative contracts which are stated in
 para a above, there is a net unrealized profit of Rs. 30.67 lakhs
 ason31st March 2010due to reversal in M to M Provision and Rs 25.53
 Lakhs .which has been credited to Profit & Loss account, considering
 the principles of prudence as enunciated in Accounting Standard I
 Disclosure of Accounting policies notified in the Companies
 (Accounting Standard) Rules 2006.
 
 c) Foreign currency exposure i.e Assets (Trade Receivables) .that are
 not hedged by the company are Rs 21.68 lakhs (Previous year Rs. 347.61
 lakhs).
 
 9.  Additional Information pursuant to part II of schedule VI of the
 Companies Act, 1956 as certified by the management.