1) Nature of Operations
 
 The Company is a manufacturer of Synthetic Staple Fibres Yarn, Man made
 Fibres blended yarn & Cotton Yarn and Fabrics. It has two spinning
 units viz. Rajasthan Textile Mills, Bhawanimandi (Raj) & Chenab Textile
 Mills, Kathua (J & K), one weaving & 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) .
 
 
                                                      (Rupees in lakhs)
                                            31.03.2011       31.03.2010
 
 2) Contingent Liabilities (Not provided 
 for) in respect of:
 
 a) Bills Discounted with Bankers             5696.09           4113.29
  (Since Realised upto 30.04.2011 
 Rs. 2037.84 lakhs, Previous year 
 Rs. 1745.72 lakhs)
 
 b) Labour Matters, except for 
 which the liability is unascertainable-        93.84             89.88
 
 c) Demand raised by Excise Department 
 for various matters-                           66.28             66.65
 
 d) Demand for Service Tax, being contested 
 by the Company-                                23.91             23.91
 
 e) Demand for Entry Tax 
 (including penalty & interest):
 
 – Bhawanimandi unit                             –                66.34
 
 – Daheli unit (stay granted by 
 the Tribunal)-                                 317.47           163.73
 
 f) Sales tax Demand under dispute               –                64.80
 
 3) 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 the schedule
 VI of the Companies Act,1956 and 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.
 
 4) 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 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.
 
 5) Advances includes to the officer Nil (Previous year Nil). Maximum
 balance during the year Nil (Previous year Rs. 1.00 lakh) of the
 officer.
 
 6) Proportionate expenses reimbursed for utilising services of
 establishments maintained by other entities have been included in
 respective heads of expenses.
 
 7) Sales includes Export Incentives/Benefits Rs. 2602.15 lakhs
 (Previous year Rs. 2529.56 lakhs).
 
 8) Installments of Term Loans payable within one year Rs. 6901.36
 lakhs (Previous year Rs. 4871.89 lakhs).
 
 9) The Excise Department has not allowed simultaneous claim for rebate
 of duty on input & finished goods for Rs. 108.33 lakhs, hence Company
 has filed writ petition before the Honble Rajasthan High Court, Jaipur
 against the order. Pending disposal of appeal by the Honble High
 Court, above amount has been considered good by the Management and
 included in Schedule-11 - Other Current Assets.
 
 10) The asset of Rs. 2625.65 lakhs (Previous Year Nil) recognized by
 the Company as ‘MAT credit entitlement under ‘Loans and Advances
 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 utilize MAT credit assets.
 
 11) Previous year Capital work in progress includes pre-operative
 expenditure during construction period and trial run expenditures
 related to 12 MW Thermal Power Plant at Bhawanimandi (capitalised
 during the previous year), 31104 spindles project at Kathua
 (capitalised during the previous year) and 3 MW Thermal power plant
 project at Daheli (capitalised during the previous year)
 
 12) The Company has procured certain capital goods under EPCG Scheme at
 concessional rate of duty. As on 31st March, 2011, the Company is
 contingently liable to pay differential custom duty Rs. 4334.58 lakhs
 (Previous year Rs. 6880.12 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.
 
 13) Interest paid on term loan is net of 4% / 5% interest subsidies
 received/receivable under TUF (Technology Upgradation Fund) scheme
 amounting to Rs. 2634.94 lakhs (Previous year Rs. 2795.19 lakhs) and
 Interest paid to banks and others is net of interest subvention on
 export credit facilities amounting to Nil (Previous year Rs. 168.27
 lakhs).
 
 14) 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.
 
 (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 have been regrouped to make them comparable
 with current year figures.