1.1 (A) Contingent Liabilities, not provided for in respect of (as
 certified by the management):
 
                                                   (Rs. in lacs)
 
 No. Particulars                          2011-12       2010-11
 
 (i) Bills discounted with banks          1374.86       2494.77
 
 (ii) Excise / Service Tax Matters          81.67        258.92
 
 (iii) Surety Bond Executed on behalf 
 of others (Including Entry Tax)           225.17         80.80
 
 (iv) Custom duty saved of Rs. 2287.91 Lacs ( Previous year Rs. 1657.28
 Lacs) for import of capital good made against EPCg license against
 which export obligations amounting to Rs. 18209.67 Lacs ( Rs. 13258.29
 Lacs) is pending.
 
 (B) In respect of certain disallowances and additions made by Income
 Tax Authorities, appeals are pending before the Appellate authorities
 and adjustment if any, will be made after the same are finally
 determined.
 
 Considering the past experience, management is of the view that there
 will not be any material impact on accounts on settlement/finalization
 of above.
 
 1.2 Estimated amount of contracts remaining to be executed on capital
 account and not provided for {(net of advances Rs.1000.36
 Lacs)(Previous year 194.43 Lacs) }Rs. 2598.79 Lacs (Previous year Rs.
 1583.54 Lacs).
 
 1.3 Out of the total issue proceeds of the GDRs in the previous year of
 Rs.4475.88 Lacs, pending certain compliances Rs.4586.69 Lacs (including
 foreign exchange gain) is parked in the Bank Escrow Account
 outside India as on year end and accordingly the balance issue proceeds
 are pending to be utilized. From Escrow Account, Rs. 561.60 Lacs has
 been received ( Company is in process of getting the FIRC) during the
 year in a separate account in India out of which Rs. 222.91 lacs has
 been utilized as per details below:
 
 1.4 In earlier year Company''s, Debt Restructuring Proposal (DRP) had
 been sanctioned by the respective lenders and is effective from 1st
 January 2009 . DRP interlaid includes reschedulement of existing term
 loans, relaxation in margin for working capital loan etc.
 
 1.5 (i) The company has taken legal and other persuasive actions for
 recovery of certain overdue debtors
 
 aggregating to Rs 185.74 Lacs (Previous Year Rs. 203.40 Lacs)
 {(including overdue overseas debtors of amounting to Rs.47.13
 Lacs)(Previous Year 39.79 Lacs)}, in the opinion of the management,
 these outstanding are good and fully recoverable.
 
 (ii) Balance of certain debtors (including associate company Rs.1086.96
 Lacs), loans and advances (including capital advance), creditors and
 other liabilities are in the process of confirmation / reconciliation.
 
 1.6. Since it is not possible to ascertain with reasonable certainty/
 accuracy the amount of accrual in respect of certain insurance and
 other claims, the same are continued to be accounted for on settlement/
 acceptance basis.
 
 1.7. In accordance with the Accounting Standards (AS-28) on
 Impairment of Assets as notified under Company (Accounting
 Standard) Rules, 2006, during the year the company has reassessed its
 fixed assets and is of the view that no further impairment/reversal is
 considered to be necessary in view of its expected realizable value.
 
 1.8. (A) Addition to Fixed Assets/Capital work in progress including
 civil work under construction, electric installation
 
 and fittings, machinery under installation/erection and pre-operative
 expenses. The details of Preoperative expenditure pending
 allocation/appropriation are as follows:
 
 (B) The company is in process of implementation of 3.5 MW hydro power
 project in the state of Himachal Pradesh and expenses incurred till
 31st March, 2012 have been included in the CWIP.
 
 1.9. The Company has not received full information from vendors
 regarding their status under the Micro, Small and Medium Enterprises
 Development Act, 2006 and hence disclosure relating to amount unpaid as
 at year end together with interest paid /payable have been given based
 on the information so for available with the company/ identified by the
 company management. As required by section 22 of the above said Act the
 following information is disclosed:-
 
 1.10.  As per the past practice exchange fluctuation on loan/liability
 for acquisition of capital assets continued to charge to the profit &
 loss account.
 
 1.11.  (i) In the opinion of the Board, the Current Assets, Loans and
 Advances appearing in the company''s Balance Sheet as at year end would 
 have a value on realization in the normal course of business at least 
 equal to the respective amounts at which they are stated in the Balance 
 Sheet.
 
 (ii) Considering prudence and as estimated by the management, Deferred
 Tax Assets of Rs. 159.41 Lacs have been created which management feel
 realizable in near future.
 
 1.12.  Employees Benefits:
 
 Defined Benefit Plan:
 
 The employee gratuity fund is a defined benefit plan. The present value
 of obligation is determined based on actuarial valuation using the
 projected Unit Credit Method, which recognizes each period of service
 as giving rise to additional unit of employee benefit entitlement and
 measures each unit separately to build up the final obligation. The
 obligation for leave encashment is recognized in the same manner as
 gratuity.
 
 (i) Contribution to defined contribution plan, recognized as expenses
 during the year is Rs. 102.28 Lacs (P.Y. 92.17 Lacs).
 
 (ii) The estimate of rate of escalation in salary considered in
 actuarial valuation, take into account inflation, seniority, promotion
 and other relevant factors including supply and demand in the
 employment market.  The above information is certified by the actuary.
 
 (iii) The principal assumptions are the discount rate & salary growth
 rate. The discount rate is generally based upon the market yields
 available on Government bonds at the accounting date with a term that
 matches that of the liabilities.
 
 (iv) The expected return on plan assets is determined considering
 several applicable factors mainly the composition of the plan assets
 held, assessed risks of assets management, historical results of return
 on plan assets and the policy for plan assets management.
 
 1.13 (i) Research and Development expenditure amounting to Rs. 48.05
 Lacs (Previous year Rs. 58.93 Lacs) have been debited to Profit and
 Loss account.( As certified by the management)
 
 (ii) During the year company has invested amounting to Rs 4.29 lacs in
 a new subsidiary company created/incorporated by name Winsome Textile
 Industries FZE, Sarah (UAE).
 
 1.14. (a) Profit or loss on sale of stores/raw materials remains
 adjusted in their respective consumption accounts.
 
 (b) Prior period adjustment (net) Rs. 1.58 Lacs (P.Y. Nil) include fees
 & subscription Rs. 0.48 Lacs (P.Y.  Nil), legal & professional Rs. 0.61
 Lacs (P.Y. Nil) and repair & maintenance Rs. 0.49 (P.Y. Nil)
 
 Note: In view inadequacy of profit during the current year, minimum
 remuneration has been paid. Gratuity not included since funded with LIC
 along with other employees of the company. Leave encashment not been
 included, payable at the end of the tenure.
 
 1.15.  Segment Reporting
 
 (i) The company is only in one line of business namely Textile (Yarn
 and allied activities).
 
 (ii) The segment revenue in geographical segments considered for
 disclosure is as follow:
 
 (a) Revenue inside India includes sales to customers located within
 India.
 
 (b) Revenue outside India includes sales to customers located outside
 India.
 
 Information about geographical segments ( by location of customers)
 
 1.16.  Related party disclosures
 
 List of Related party & Relationship disclosures are given below: (as
 identified by the management)
 
 1.  (a) Associate Company:-
 
 - Winsome Yarns Limited
 
 (b) Wholly owned Subsidiary Company:- - Winsome Textile Industries FZE
 w.e.f. 22nd June,2011
 
 2.  Key management personnel and their relatives.
 
 - Shri Satish Bagrodia Chairman Cum Whole time Director
 
 - Shri Ashish Bagrodia Managing Director
 
 - Shri Manish Bagrodia Son of Chairman, WTD & Brother of MD
 
 3.  Organizations where Key Management Personnel & their relative have
 Significant influence
 
 - Star point Financial Services (Pvt.) Ltd.
 
 - Roselab Commodities Pvt. Limited.
 
 - Kailashpati Vinimay Private Limited
 
 *The face value of equity share has been consolidated on 19.07.2011
 from Re 1/- to Rs 10/- each.  Accordingly the no. of equity shares has
 been decreased and also EPS for the preceding period(s) have been
 revised/ reinstated.
 
 1.17.  Based upon Future plans, management expects to generate taxable
 income in the next financial year which will enable it to utilize MAT
 credit entitlement of Rs. 458.84 Lacs and accordingly the same is shown
 under Short Term Loans & Advances.
 
 1.18.  The company has given interest free loan/ advances in the nature
 of loan, to employees, in the ordinary course of its business. No loan/
 advances in the nature of loans have been given to employees/ others
 for the purpose of investment in securities of the company.
 
 (B) Forward Contracts of Rs. 506.00 Lacs US .00 Lacs (Previous Year
 Rs. 1237.20 Lacs-US $ 26.80 Lacs) taken for the purpose of hedging of
 debtors are outstanding as at 31.03.12.
 
 1.19. During the year ended 31st March 2012, the revised schedule VI
 has become applicable to the company. Thus previous year figures have
 been reclassified/ recanted suitably. The adoption of revised schedule
 VI does not impact recognition & measurement principle followed for
 preparation of financial statements except for presentation &
 disclosures wherever required.
 
 2.  Rights & Restrictions of Shareholders:
 
 2.1 The Company has only one class of Equity Shares having face value
 of Rs. 10/- each (Previous Year Rs. 1/- each) in its issued, subscribed
 and paid up Equity share capital. Each shareholder is entitled to one
 vote per share (except GDR shareholding mentioned at point no. 2.2
 below). Each shareholder have the right in profit/surplus in proportion
 to amount paid up with respect to share holders.
 
 2.2 The GDR shareholding which is standing in the name of Bank of New
 York Mellon, as Depositary, has right to dividend, do not have any
 right to vote
 
 2.3 In the event of winding up, the equity shareholders will be
 entitled to receive the remaining balance of assets, if any, in
 proportionate to their individual shareholding in the paid up equity
 capital of the company.
 
 (a) During the year the company allotted NIL equity shares (P.Y.
 6,06,00,000 Equity shares of Re. 1/- each at a premium of Rs. 1.40/-
 each) upon conversion of equal no of warrants allotted on preferential
 basis.
 
 (b) During the year company has issued and allotted NIL Global
 Depository Receipt (P.Y. 12,90,000 GDR''s representing 6,45,00,000
 Equity Shares of Rs. 1/- each at a premium of Rs. 5.94/- per shares)
 (Refer Note No. 2.3)
 
 @ Consolidated Re. 1/-fully paid up equity share to fully paid share of
 Rs. 10/- each during the year. Accordingly figures of the previous year
 have been revised.
 
 Notes:
 
 1.  Term Loans and Working Capital Term Loans from Banks of Rs.
 12083.32 Lacs (P.Y. Rs. 12837.97 Lacs) are secured by Joint Equitable
 Mortgage by deposit of title deeds on company''s immovable
 properties(present and future) which shall be on first charge basis,
 shall rank pari-passu with all banks and a charge by way of
 hypothecation of all movable fixed assets subject to prior charge on
 specified equipments to banks for term loan. Above Term loans are
 further secured by pari-passu second charge on entire current(present
 and future) assets of the company. The loan is repayable in quarterly
 installments and maturity profile is as follows:
 
 1.  Working Capital Demand loans from bank includes Cash Credit,
 Packing Credit and short term loans are secured by First Charge by
 Hypothecation of Raw Material, Stock in Process, Finished Goods,
 Consumable Store and Spares, Goods in Transit, Book Debts and by Second
 Charge on entire Fixed Assets of the Company on Pari-passu basis with
 Working Capital lenders.
 
 2.  The aforesaid credit facilities mentioned above is also guaranteed
 by Chairman & Whole Time Director and Managing Director.