Terms/ rights attached to Equity shares
 
 Each holder of equity shares is entitled to one vote per share. In the
 event of liquidation of the Company, the holders of equity shares will
 be entitled to receive remaining assets of the Company, after
 distribution of all preferential amounts. The distribution will be in
 proportion to the number of equity shares held by the shareholders.
 There is no restriction on distribution of dividend. However same is
 subject to the approval of the shareholders in the Annual General
 Meeting.
 
 @ The Board of Directors has recommended dividend of Rs.5 per Equity
 Share (Previous year Rs.5 per Equity Share and a one time special
 dividend of Rs.2.50 per Equity Share ) of Rs.10 each for the year ended
 31st March, 2012. The dividend proposed by the Board of Directors is
 subject to the approval of the shareholders in the ensuing Annual
 General Meeting.
 
 (a) (i) Securities :
 
 Term Loans are secured/to be secured by first equitable mortgage
 ranking pari- passu over the Company''s Immovable Properties situated at
 Bhawanimandi (Rajasthan), Kathua (Jammu 8 Kashmir) and Daheli (Gujarat)
 and moveable assets (save and except book debts) both present and
 future, subject to prior charges created/to be created in favour of
 Bankers on moveables including book debts for securing Working Capital
 Borrowings.
 
 (b) Secured by subservient charge over moveable fixed assets and
 current assets of the Company, carries rate of Interest @ 11.25% p.a.
 (Previous year 11% p.a.) and repayable within 1 year from the balance
 sheet date.
 
 (c) (i) Fixed deposit from public carries rate of interest @ 9.50% to
 10% p.a. ( Previous year 8.50% to 9% p.a.) and are repayable after 2 to
 3 years ( Previous year 2 to 3 years) from the date of acceptance of
 Deposits.
 
 (ii) Current maturities of fixed deposits includes amount accepted from
 related parties Rs.678.20 lakhs.(Previous year Rs.504.60 lakhs)
 
 (i) Provision of disputed statutory matters are on account of legal
 matters, where the Company anticipates probable outflow. The amount of
 provision is based on estimate made by the Company considering the
 facts and circumstances of each case. The timing and amount of cash
 flow that will arise from these matters will be determined by the
 relevant authorities only on settlement of these cases.
 
 (ii) Figures in brackets represents previous year''s amounts.
 
 * The Company has not received any intimation from its suppliers being
 registered under Micro, Small and Medium Enterprises Development Act,
 2006 (MSME). Hence the necessary disclosure required under MSME Act,
 2006 can not be made. However, the Company generally makes payment to
 all its suppliers within the agreed credit period (generally less than
 45 days) and thus the Management is confident that the liability of
 interest under this Act, if any, would not be material.
 
 Notes:
 
 1 Land includes Freehold Land of Rs.511.11 lakhs( Previous year
 Rs.382.43 lakhs ) and Leasehold Land of Rs.409.27 lakhs ( Previous year
 Rs.404.27 lakhs ). In case of Kathua unit Leasehold Land for Rs.263.37
 lakhs ( Previous year Rs.258.37 lakhs) are pending for registration in
 the name of the unit.
 
 2 Fixed assets includes share of the company in a Holiday Flome at
 Flaridwar jointly owned with other Bodies Corporates.
 
 3 Additions includes Borrowing Cost Rs.20.28 lakhs ( Previous Year Nil)
 8 Employees cost Rs.7.86 lakhs ( Previous Year Nil)
 
 # Represents Amortisation of Lease Rent.
 
 @ The same has been recognised by the Company, represents that portion
 of MAT liability, which can be recovered and set off in subsequent
 years based on the provisions of Section 115JAA of the Income Tax Act,
 1961. The management based on the present trend of profitability and
 also the future profitability projections, opines that there would be
 sufficient taxable income in foreseeable future, which will enable the
 Company to utilise MAT credit entitlement.
 
 # Includes Rs.108.33 lakhs (Previous year Rs.108.33 lakhs) being not
 allowed by Excise Department towards simultaneous claim for rebate of
 duty on input 8 finished goods, hence Company has filed writ petition
 before the Hon''ble Rajasthan High Court, Jaipur against the order.
 Pending disposal of appeal by the Hon''ble High Court, above amount has
 been considered good by the Management.
                                                            (Rs.in lakhs)
 
                                                             As at
 
                                              31st March''
                                              2012          31st March'' 
                                                            2011
 
 NOTE NO. 1
 
 Contingent Liabilities and Commitments
 
 (A) Contingent Liabilities (Not provided 
 for) in respect of:
 
 1 Claim against the Company not 
 acknowledged as debts:
 
 a) Labour Matters, except for which the 
 liability is unascertainable                   84.31        93.84
 
 b) Demand raised by Excise Department 
 for various matters                            66.28        66.28
 
 c) Demand for Service Tax, being 
 contested by the Company                       23.91        23.91
 
 d) Demand for Entry Tax (including 
 penalty & interest):                          365.25       317.47 
 (stay granted by the Tribunal)
 
 Note: The management believes that the Company has a strong chance of
 success in above mentioned cases and hence, no provision their against
 is considered necessary.
 
 2 Bills Discounted with Bankers              1961.03      5696.09 
 
 (Since Realised upto 30.04.2012 Rs.1106.11 lakhs, Previous year
 Rs.2037.84 lakhs)
 
 3 The Company has procured certain capital goods under EPCG Scheme at
 concessional rate of duty. As on 31st March, 2012, the Company is
 contingently liable to pay differential custom duty Rs.3257.92 lakhs
 (Previous year Rs.4334.58 lakhs) on such import.  In view of past
 export performance and future projections, the management is hopeful of
 completing the export obligation within stipulated time, and expect no
 cash outflow on this account.
 
 (B) Commitments:
 
 1 Estimated amount of Contracts remaining to 
 be executed on Capital Account [Net           257.27      1249.06 
 of Advances Rs.208.81 lakhs (Previous Year
 Rs.575.20 lakhs)] and not provided for
 
 2 The Kathua unit of the Company has availed certain government
 subsidies. As per the terms and conditions, the unit has to continue
 production for specified number of years failing which amount of
 availed subsidies alongwith interest, penalty etc. will have to be
 refunded.
 
 @ Amount is net of Nil (Previous year Rs.42.72 lakhs) Insurance Subsidy
 received under Central Government Scheme.
 
 * Includes excise duty on increase/(decrease) of finished goods stock
 Nil (Previous year Rs.6.17 lakhs), Wealth Tax Rs.6.49 lakhs (Previous
 year Rs.6.10 lakhs) and Sales tax Rs.56.82 lakhs (Previous year Rs.8.15
 lakhs).
 
 $ Amount is net of credit of Rs.196.40 lakhs ( Previous year Rs.209.46
 lakhs) for Sharing of Common Expenses with a body corporate.
 
 # Including service tax wherever applicable.
 
 $$ Previous year includes Stores 8 Spares Consumed Rs.9.57 lakhs ,
 Power, Fuel and Water Charges Rs.44.07 lakhs and Miscellaneous Expenses
 Rs.8.50 lakhs related to earlier years.
 
 ## The Company has complied with the announcement issued by the
 Institute of Chartered Accountants of India (ICAI) on Accounting for
 Derivatives'' requiring provision for loss on all outstanding derivative
 contracts by marking them to market rate.
 
 Accordingly Loss on Forward Contracts amounting to Rs.109.70 lakhs
 included herein above (Previous year Rs.3.90 lakhs is net off with Net
 Gain on Foreign Currency transactions and translation under Note no.
 21-Other income).
 
 # Net of 4% / 5% interest subsidies received/receivable under TUF
 (Technology Upgradation Fund) scheme amounting to Rs.2353.15 lakhs
 (Previous year Rs.2634.94 lakhs).
 
 $ Previous year includes Rs.83.64 lakhs related to earlier years .
 
 @ The Minimum Alternate Tax (MAT) provided during the year is as per
 provisions of section 115 JB of the Income Tax Act, 1961 and same is
 eligible for set off in the specified assessment years as per the
 provisions of the Income Tax Act,1961.
 
 2.01 Nature of Operations
 
 The Company is a manufacturer of Synthetic Staple Fibres Yarn, Man made
 Fibres blended yarn 8 Cotton Yarn and Fabrics.  It has two spinning
 units viz. Rajasthan Textile Mills, Bhawanimandi (Raj) 8 Chenab Textile
 Mills, Kathua (J 8 K), one weaving 8 processing unit viz. Damanganga
 Fabrics, one Garments unit viz. Damanganga Garments and one Home
 Textiles unit viz.  Damanganga Home Textiles at Village Daheli, near
 Bhilad (Gujarat) .
 
 2.02 In respect of Okara Mills, Pakistan, ( Which remained with the
 Company as a result of transfer of textiles division of Sutlej
 Industries Limited with the Company ) no returns have been received
 after 31.03.1965. Against Net Assets of Okara Mills, Pakistan amounting
 to Rs.232.35 lakhs, the demerged/transferor Company had received adhoc
 compensation of Rs.25 lakhs from Government of India in the year
 1972-73. These assets now vest in the Custodian of Enemy Property,
 Pakistan for which claim has been filed with the Custodian of Enemy
 Property in India .The Company shall continue to pursue its claim for
 compensation/ restoration of assets. Hence, further compensation, if
 any received, credit for the same will be taken in the year of receipt.
 In the year 2003-04, net assets of Rs. 207.35 lakhs (net of
 compensation received) as on 31.03.1965, valued at pre-devaluation
 Exchange Rate, being diminution in value has been provided for.
 
 2.3 Proportionate expenses reimbursed for utilising services of
 establishments maintained by other entities have been included in
 respective heads of expenses.
 
 2.4 Segment Reporting
 
 Segment information has been prepared in conformity with the accounting
 policies adopted for preparing and presenting the financial statements
 of the Company.
 
 As part of Secondary reporting, revenues are attributed to geographic
 areas based on the location of the customers.
 
 The following tables present the revenue, profit, assets and
 liabilities information relating to the Business/Geographical segment
 for the year ended 31.03.2012.
 
 Other Information:
 
 The company has common assets for producing goods for domestic market
 and overseas market. However, it has Export Trade Receivable Rs.1703.96
 lakhs (Previous year Rs.4049.06 lakhs).
 
 Notes:
 
 (i) The Company is organised into two main business segments, namely;
 
 - Yarn comprising of Cotton and Man Made Fibres Yarn;
 
 - Fabrics and Apparels comprising woven of Worsted/ Synthetic Staple
 Yarn, Fabric Processing, Home Furnishings and Garments.
 
 Segments have been identified and reported taking into account, the
 nature of products, the differing risks and returns, the organisation
 structure, and the internal financial reporting systems.
 
 (ii) Segment revenue in each of the above domestic business segment
 primarily includes sales, other income and export incentives in the
 respective segments.
 
 (iii) The segment revenue in the geographical segments considered for
 disclosure are as follows:
 
 (a) Revenue within India includes sales to customers located within
 India and earnings in India.
 
 (b) Revenue outside India includes sales to customers located outside
 India and earnings outside India and export incentives benefits.
 
 (iv) Segment, Revenue, Results, Assets and Liabilities include the
 respective amounts identifiable to each of the segments and amounts
 allocated on a reasonable basis.
 
 (v) Previous year figures has been regrouped to make them comparable
 with current year figures.
 
 $ Remuneration to Key Managerial personnel do not include provision for
 leave encashment and contribution to the approved Gratuity Fund of the
 Company, which are actuarially determined for the Company as a whole.
 
 Note : The above information has been identified on the basis of
 information available with the Company and relied upon by the Auditors.
 
 # Deposited in Indian Rupees in the Bank Accounts maintained by the
 shareholders in India.
 
 2.5 The Company has prepared current year account as per presentation
 and disclosure requirement of Revised Schedule VI to the Companies Act,
 1956 applicable with effect from 1st April, 2011. Previous year figures
 have been reclassified/regrouped to conform current year figures.