1. Contingencies and events occurring after the Balance Sheet date :
 
 Events occurring after the date of the Balance Sheet are considered
 upto the date of adoption of accounts, where materials.
 
 2. Contingent liabilities not provided for :
 
 (a) Bonds executed with excise & custom authorities is Rs.2906.00 lacs
 (Previous year Rs. 2906.00 lacs).
 
 3. In the opinion of the Board, the current assets, loans and advances
 are of the value stated, if realized in the ordinary course of
 business.
 
 4. Company converted its status from 100 % EOU to EPCG unit by debonding
 on making payment of requisite Custom & Excise duty and out of which
 Custom & Excise duty amounting to Rs. 90,96,695/- was capitalized being
 related to Capital Goods.
 
 5. Estimated amount of contracts remaining to be executed on capital
 amount and not provided for Rs. NIL (Previous year Rs.NIL).
 
 6. Information pursuant to paragraph 3, 4c and 4d of part II of
 Schedule VI of the Companies Act, 1956.
 
 (a) Capacities, Production, Turnover & Stocks
 
 a) Licensed Capacity 54,032 Spindles
 
 b) Installed Capacity 54,032 Spindles
 
 c) Production, Purchase, Turnover and Stocks of Yarn :
 
                                                           (Rs. In Lacs)
 As on       Opening Stock  Production       Turnover      Closing Stock
            Qty. M.T. (PRg.) Qty. M.T.I Value (Rs.) Qty M.T. Value (Rs.)
 
 31/03/2004 244        3846        3868     4017.58      222      265.53
 
 31/03/2003 144        6024        5924     5178.67      244      220.47
 
 (d) C&F value of imports in respect of capital goods is NIL (Previous
 year Rs.36.67 Lacs).
 
 (e) Expenditure in Foreign Currency (on payment basis) :
 
 S.No. Particulars                      2003-2004 (Rs.)  2002-2003 (Rs.)
 
 1 Travelling Expenditure                           NIL           163899
 
 2 Commission on Export Sales                    176297          2211070
 
 3 Interest on Loan                             5054941          9435279
 
 8. Earnings in Foreign Exchange:
 
 Export of goods (F.O.B. basis) Rs.102.11 Lacs (Previous year Rs.1549,54
 Lacs).
 
 9. Expenses include Managing Directors remuneration Rs.13,44,000.00
 (Previous year Rs.13,44,000.00) and perquisites Rs. 1,21,292.00
 (Previous year Rs. 1,08,335.00),
 
 10. Auditors Remuneration, includes:-
 
 S.No. Particulars                       2003-2004 (Rs.) 2002-2003 (Rs.)
 
 1 Statutory Audit Fee                             43200           42000
 
 2 Fees for Taxation & Other matter                40040           15000
 
 3 Out of Pocket Expenses                          22102           12929
 
 4 Cost Audit Fee                                  16200           15000
 
 11. Export receivables include foreign bills negotiated with Bank of
 India and Dena Bank.
 
 12. The Company does not possess information as to which of its
 suppliers are Ancillary, Industrial Undertaking/Small Scale
 Industrial Undertaking. Consequently, the liability if any, of interest
 which would be payable under the interest on delayed payments to Small
 Scale and Ancillary Industrial Undertakings Act, 1993, can not be
 ascertained. However, the Company has not received any claims in
 respect of interest.
 
 13. Related Party Disclosures:
 
 List of related parties with whom transactions have taken place
 during the year:
 
 1. Associates/Promoters:- NIL
 
 2. Key Management Personnel:
 
 a) Mr. G. C. Brrura, Managing Director
 
 b) Mr. J. G. Arora, Chief Executive Officer
 
 3. Relatives
 
 a) Mrs. Renu Arora, Wife of Mr. J. G. Arora During the year, following
 transactions were carried out with the related parties in the ordinary
 course of business:
 
 14. Earning Per Share :
 
 Numerator used for calculating                 (202045396)   (47813509)
 Basic and diluted earnings per
 Share Profit/(Loss) after tax
 
 Weighted average number of                        21580700     21580700
 Shares used as denominator
 For calculating basic and diluted
 Earnings per share
 
 Nominal value per share (Rs.)                           10           10
 
 Basic and diluted earnings per Share (Rs.)          (9.36)       (2.22)
 
 15. Paises have been rounded off to the nearest rupees.
 
 16. Previous years figures have been rearranged and or regrouped
 wherever found necessary.