1.  Note on Corporate Debt Restructuring (CDR):
 
 The Company has approached the consortium of Banks for restructuring of
 debts under the CDR (Corporate Debt Restructuring) scheme of RBI. The
 brief details are as under:
 
 With a mandatory legislation change brought out by European Union in
 2007 by making the compulsory usage of solar power for entire demand
 coupled with encouragement by way of subsidies from the local
 governments, the company has received export orders from Spain for
 supply of Solar panels during 2008.
 
 With the overwhelming and unexpected response received by the Spanish
 government, they kept the subsidies on hold for a rework on their
 internal polices and this coupled with the global economic scenario in
 September, 2008 led to sudden cancellation of orders to the tune of
 21MW, by the Spanish entrepreneurs before execution and not extending
 the LCs issued to the Company. This resulted in huge pile up of stocks
 and adding to that the subsequent reduction of the raw material prices
 in the international market due to global economic scenario resulted in
 a huge MTM loss to the Company.
 
 In view of this, the Company has no other option except to seek a
 suitable restructuring under CDR scheme of RBI and thus the Company has
 approached the consortium banks for deep restructuring of our existing
 debts. Accordingly, our banker SBI have worked out a restructuring
 package and referred the same to the CDR Cell and for approval.
 Accordingly the same has been approved by CDR cell in their CDR EC
 meeting held on 30th Dec09 on the following lines viz.,
 
 o to restructuring all the outstanding debts as on 30th June2009 to be
 repaid over 32 quarterly installments (on ballooning basis) commencing
 from quarter ending September 2011.
 
 o To reduce the rate of interest applicable on all loans to 9% p.a.
 payable monthly for the first three years FY 2009 to FY 2011 and
 stepped up by 1 % every alternate year with a cap of 13% p.a. over the
 period of the loan to ensure minimum yield of 10.33% p.a.  payable
 monthly.
 
 o To convert future interest on STL, WCTL, TL and FITL -TL etc from
 1stJuly09 to 31st Dec2010 into a CRPS facility, this will carry a
 dividend coupon rate of 6.75% p.a. (tax free) payable semi-annually
 every year from the date of issue. The CRPS will be redeemed after 12
 years from 31st Dec2012. The lenders/holders of CRPS would have a put
 option for redemption of 1 /3rd CRPS each in 8*, 9th and 10th year from
 cut-off date i.e.30th June2009 along with accumulated dividend. All
 penal and liquidated damages up to the date of implementation of scheme
 to be waived.
 
 o Total sacrifice of all lenders connected with this restructuring has
 been worked out to Rs.137.73 crores in terms of economic loss and
 Rs.96.91 crores in terms of funding of interest for 1 V2 years thus
 totaling to Rs.234.64 crores. An amount of Rs.40 crores would be
 brought in by promoter in two equal installments in FY 2010 and FY
 2011.
 
 o To liquidate part of SPVM inventory to its 100% step down subsidiary
 Sapthasva Solar S.r.l. for setting up of 8 MW Solar Power Plant.
 
 o To sell of investments in Khandoba Distilleries Ltd (wholly owned
 subsidiary of XL TEL) in FY 2010.
 
 o To sell of Ethanol Division of XL Telecom & Energy Ltd in FY 2010.
 
 o For sale of Ethanol Division and Divestment in Khandoba Distillery
 Ltd, Asset Sale Committee (ASC) comprising of SBI, Canara Bank, IDBI
 Bank, ICICI Bank and the company may be constituted.
 
 2.  The net worth of the Company suffered substantial erosion due to
 the losses suffered during the period. However, considering the
 restructuring package granted to the Company under CDR (Corporate Debt
 Restructuring) scheme and also the various measures taken by the
 Company for increasing the net worth and the business prospects, the
 accounts are stated on going concern basis.
 
 3.  Previous Figures are not comparable as current year consists of 18
 months period (01.07.2008 to 31.12.2009) as against the twelve month
 period (01.07.2007 to 30.06.2008) of previous year.
 
 4.  Foreign Currency Convertible Bonds:
 
 Pursuant to the approval accorded by the members on 26.09.2007, the
 Company had made allotment of Foreign Currency Convertible Bonds (FCCB)
 of USD 40 Million in October 2007 having a maturity period of 5 years
 and one day.
 
 Out of USD 40 million FCCBs, the Bond holders requested for conversion
 of USD 19.76 million FCCBs. On conversion the company issued and
 allotted 30,24,036 equity shares of Rs.10/- each at a premium of
 Rs.250/- per share during the year 2007-08. The outstanding balance of
 FCCBs as on 30.06.2008 was USD 20.24 million,
 
 Out of USD 20.24 million FCCBs, the Bond holders requested for
 conversion of USD 8 million FCCBs. On conversion, Company issued and
 allotted 19,89,498 equity shares of Rs. 10/- each at a premium of Rs.
 150/- per share during the current year. The outstanding balance of
 FCCBs as on 31.12.2009 is USD 12.24 million.
 
 5.  Warrants:
 
 Pursuant to the approval accorded by the members on 26.09.2007, the
 Company has issued and allotted 52,50,000 warrants to the promoters and
 others in October, 2007. The warrants are to be convertible in to
 equity shares with in 18 months.
 
 Out of the above, 12,60,000 warrants were converted and the Company
 issued and allotted 12,60,000 equity shares of Rs.10/- each at a
 premium of Rs.125A each during the year 2007-08.
 
 During the current year, on the due date, the Company forfeited
 39,90,000 share warrants, out of the 52,50,000 warrants issued during
 2007-08, due to the non-payment of the balance amount for conversion.
 An amount of Rs.5,38,65,000/- is shown as Capital Reserve on this
 account.
 
 6.  Contingent liabilities not provided for in respect of: (Rs. in
 Lakhs)
 
 Particulars                   As at 31.12.2009     As at 30.06.2008
 
 a) Guarantee / Counter
  Guarantees given on sale 
    of contracts                     2007.88            3,637.63
 
 b) Letter of credits by Banks         NIL             17,517.32
 
 c) Estimated amount of contracts
  remaining to be executed on capital
 account (net of advances) not
  provided for                       2476.42           20,360.27
 
 17.  Related Party Transactions:
 
 Information relating to Related Party transactions as per Accounting
 Standard 18, issued by The Institute of Chartered Accountants of India,
 notified under Section 211 (3C) of the Companies Act, 1956 is as under:
 a) Names of related parties and the nature of relationships:
 
 Name                                      Relationship
 
 i. Khandoba Distilleries Ltd           Subsidiary Company
 
 ii.  Saptashva Solar Ltd            Wholly owned subsidiary Company
 
 iii. Saptashva Solar SA             Wholly owned subsidiary Company
 
 iv.  Saptashva Solar SRL            Subsidiary of Saptashva Solar SA
 
 v.  Digrun Grun SL                  Subsidiary of Saptashva Solar SA
 
 vi. Apulia Solar SRL                Subsidiary of Saptashva Solar SRL
 
 vii. Sree Sahasya Enteprises 
      Pvt Ltd                        Associate Company
 
 viii. Sree Sahasya Entertainments
       Pvt Ltd                       Associate Company
 
 ix.  Soft Projex (I) Ltd            Associate Company
 
 x.  Key Management Personnel:
 
 Shri Dinesh Kumar                  Managing Director
 
 Smt Ritu                           Director
 
 18.  The extraordinary item of Rs.12,807.96 lakhs in the Profit & Loss
 Account for the period ending 31.12.2009 represent the mark to market
 loss resulting in the diminution in the value of inventories.
 
 19.  The company considers business segment as the primary segment. The
 primary segment information is provided as Schedule-15.
 
 20.  There are no dues to Micro, small and medium enterprises under
 Development Act, 2006, exceeding 30 days. The micro, small and medium
 industries are determined to the extent such parties have been
 identified on the basis of the information available with the Company.
 
 21.  Balances appearing under unsecured loans, sundry creditors,
 Capital WIP, Loans and advances and debtors are subject to confirmation
 and / or reconciliation, if any.
 
 22.  Previous year figures have been regrouped / reclassified wherever
 necessary.