1.  Secured Loans:
 
 (i) Term Loans:
 
 (a) From Bank of Baroda amounting to Rs.179.06 lacs, (Previous Year
 Rs.289.70 lacs) are secured by way of exclusive charge over gross
 block of the Company excluding vehicles financed by other banks and
 also secured by way of exclusive charge over all Current Assets of the
 company along with personal guarantees of the Promoter directors & 
 their relatives. (Repayable within one year Rs.118.00 lacs).
 
 (b) From ICICI Bank amounting to Rs. 10.72 lacs (Previous year NIL)
 were secured by way of hypothecation of vehicles.  (Repayable within
 one year Rs.3.28 lacs).
 
 (c) From HDFC Bank amounting to Rs.2.32 lacs (Previous year Rs.4.05
 lacs) were secured by way of hypothecation of vehicles.  (Repayable
 within one year Rs.1.97 lacs).
 
 (ii) Working Capital Loans:
 
 Total Working Capital limits from Bank of Baroda as on 31.03.2011 Rs.
 1180.44 lacs (Previous year Rs.1214.22 lacs) are secured by way of
 exclusive charge over gross block of the Company excluding vehicles
 financed by other banks and also secured by way of exclusive charge
 over all Current Assets of the company along with personal guarantees 
 of the Promoter directors & their relatives.
 
 2.  Unsecured loans:
 
 The Unsecured Loans from others have been taken from the family members
 and relative of directors out of which loans from directors are
 amounting to Rs.87.97 lacs. These unsecured loans have been taken in
 the condition imposed by the financial institution for bringing the
 adequate margins. These unsecured loans will not be repaid without the
 permission of the financial institution.  During the year some of
 unsecured loans are repaid and in place of them fresh unsecured loans
 are taken. However, the overall quantum of the unsecured loans was
 within the adequate margins as stipulated by the financial Institution.
 The company is of the opinion that these are well within the provisions
 of Section 58 A of the Companies Act, 1956 as the same are accepted in
 pursuance of stipulations of financial institutions.
 
 3.  Managerial Remuneration:
 
 Managerial remuneration has been paid within the limits specified by
 Schedule XIII of the Companies Act, 1956. Computation of Net Profit u/s
 349 of the Act is not given in view of there being no commission
 payable to any director. The details of managerial remuneration paid
 under Section 198 of the Companies Act, 1956 are as under:
 
 4.  Confirmation of balances from some of parties appearing under the
 head current liabilities, sundry debtors, loans and advances are
 awaited.
 
 5.  In accordance with the Accounting Standard 22 Accounting for Taxes
 on Income (AS-22) issued by the ICAI, the company has accounted for
 deferred taxes during the year. The tax provision for the current year
 includes Rs.87,32,872/- for deferred tax assets.  The component of
 deferred tax assets is the sum of tax of Rs.31,98,047/- on unabsorbed
 depreciation and carry forward losses and Rs.55,34,825/- being tax on
 difference between depreciation charged/chargeable in books and claim
 of depreciation under Income Tax Act.
 
 6.  Previous year adjustments of Rs.4,91,471 /- include Rs.1,98,504/-
 on account of Water Cess paid to Pollution Control Board for previous
 years; Rs.58,641 /- paid for Sales Tax demand & interest thereon for
 the Assessment Year 2007-08; Rs.1,187/- written off as non recoverable
 TDS; Rs.1,80,290/- paid for Income Tax demand for the A.Y 2006-07; and
 Rs.52,849/- paid for Income Tax demand for the A. Y. 2008-09.
 
 7.  Company has revalued its Fixed Assets namely Land and Building on
 31.03.2004. The value of aforesaid assets has increased by
 Rs.5,90,00,625.42 as per Valuation Report dt.31.03.2004 from a
 qualified & authorized firm of Engineers M/s. Universal consultants,
 Meerut. The aforesaid amount has been credited to Revaluation Reserve
 Account. Further, during the year, same has been reduced by equivalent
 amount of depreciation charged on this revalued amount.
 
 8.  During the year Company has sold 45,690 equity shares of Vartex
 Fabrics Pvt. Ltd. For Rs. 23,75,880/- on which Company earned gain of
 Rs. 19,980/-.
 
 9.  During the year Company has sold 4,26,400 shares of Vishwanath
 Paper & Board to some relatives of its Directors & outsiders.
 
 10. Earnings per share
 
 Basic earning per equity share has been computed by dividing net profit
 after tax by the weighted average number of equity shares outstanding
 for the period. Diluted earning per equity share has been computed
 using the weighted average number of equity shares and dilutive
 potential equity shares outstanding during the period. The
 reconciliation between basic and diluted earnings per equity share is
 as follows:
 
 Note: Due to loss during the year calculation of E.P.S. is not
 workable.
 
 11.  In the opinion of the Board of Directors, the current assets,
 loans and advances are approximately of the value stated if realised in
 the ordinary course of business and the provisions for all known
 liabilities is adequate and not in excess of amount reasonably
 necessary.
 
 12. Total outstanding dues of small scale industrial undertakings and
 other than small scale industrial undertakings and the names of the
 small scale industrial undertakings to whom the company own a sum of
 exceeding Rupees one lakh which outstanding for more than thirty days,
 are not disclosed on the Balance Sheet as the suppliers have not
 indicated their status whether they are small scale undertakings or not
 or their documents and accordingly it was not possible for the company
 to bifurcate the trade creditors accordingly.
 
 13.  Previous Years figures have been rearranged and regrouped wherever
 necessary.