The Company has only one class of shares referred to as equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

1.2 Security for Working Capital and Cash Credit Limits

Working Capital term Loan is secured by first charge (Hypothecation) companies fixed assets including equitable mortgage of factory land admeasuring 2.85 acres and buildings situated at Sy No.142/A at Bollaram Village, Medak Dist.

Cash Credit Limit is secured by Exclusive charge (Hypothecation) on all chargeable current assets of the company Working Capital Term Loan and Cash Credit Limits are collaterally secured by:

i) Certain Properties held in the name of Shri DRSP Raju, Director and Smt D. Shakuntala, Shri D. Rama Raju and Smt Radha Mani, relatives of Directors.

ii) Pledge of 74,600 equity shares of the company held by the promoters iii) Cash Collateral of Rs. 20,00,000/- Primary Securities of Working Capital Term Loan and Cash Credit Limits are collaterally secured to Cash Credit Limit and Working Capital Term Loan respectively.

Working Capital Term Loan and Cash Credit Limits are further secured by personal guaranties of Shri DRSP Raju, Director and Smt Shakuntala, Shri D. Rama raju and Smt Radha Mani, relatives of directors.

1.3 Repayment terms

Working Capital Term Loan is repayable in a structured 49 monthly installments Commencing from September 2015 to September 2019.

1.4 Interest free unsecured loans are repayable only upon improvement in liquidity position of the Company or out of fresh infusion of funds into the Company for operations.

1.5 The Govt. of Andhra Pradesh vide G.O.Nos 108 & 134 1 & C (IP) Department, dated 20.06.1996 and 01.07.1996 has allowed the company to defer the sales tax payments for a period of Fourteen years from 01.07.1997 on expanded capacity ( i.e. beyond base production of 898.40 MTPA ) subject to a maximum exemption of Rs. 3,79,55,720/-. The Company had availed total sale tax deferment upto 2010-11 Rs.2,74,10,681/-The scheme ended on 30.06.2011. Repayment of deferred liability commenced during 2012-13 and will be completed during 2024-25.

1.6 The Company has not received any intimation from 'suppliers' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been given.

1.7 Sales Tax Appeal for the year 2002-2003 is pending at Appellate Tribunal, Andhra Pradesh for a liability of Rs. 7,20,875/- out of which an amount of Rs. 3,60,440/- has been paid at the time of appeal.

NOTE NO. 2. Going Concern basis of Accounting

Company, on July 15,2014, has temporarily suspended its manufacturing operations, due to frequent power cuts, labour related issues, shutdown in the market off take and frequent machinery break downs. The same has been informed to Bombay Stock Exchange on August 2, 2014.

Company is intending and making all efforts to commence the operations at the earliest. In this regard the Company has also got restructured it's borrowings from State Bank of India Further, management is also planning to induce more funds for working capital limits for commencing the operations of the Company at the earliest. Accordingly, the financial statement of the company have been drawn on a going concern basis.

NOTE NO. 3 Restructuring of borrowings from State Bank of India

State Bank of India, vide their letter dated February 4, 2015 has approved the restructuring of Credit Facilities. Accordingly, existing Cash Credit limits are converted into working capital term loan of Rs 5.00 Crores and Cash Credit Limit of Rs 1.5 Crores.

Bank has been reserved it's right to recompense, when the company turns the corner and the restructuring is successfully completed, the sacrifice undertaken by the bank should be recouped out of the future profits / cash accruals.

NOTE NO. 4 Impairment

Company recognizes all its assets including land, buildings and plant and machinery as a single Cash Generating Unit. Considering the increase in land values, management at present doesn't foresee any impairment in the carrying values of fixed assets.

NOTE NO. 5 Stock Laws

Company's inventory represents Poly propylene cut Lengths (work in process) earmarked for certain customers. Company was expecting the repeat orders from these customers. However , as these repeat orders we're not crystalized. The material in process is not having shelf life, the company has recognised the stock loss of Rs. 12,77,08,286/- and adjusted the same in changes in inventory as at 31st March, 2015.

NOTE NO.6 Confirmation of Balances

The management has not obtained confirmation of balances from Trade payable, Trade Receivables Advances to Creditors as at March31,2015 in the absence of confirmation of balances from these parties, provision if any to be made for any adverse variations in the carrying amounts are not quantified. However, management is confident that the settlement with the said parties will be made at the carrying amounts and no provision is required at present for adverse variations. Adjustment, if any will be made on settlement.

NOTE NO. 7 Segment Information

The Company operates PP/HDPE Woven Sacks and same geographical location, hence there are no different reporting segments.

NOTE NO. 8 Related Party Transactions

8.1 List of related parties with whom transactions have taken place and relationships.

S.No. Name of the related Party Relationship

1. Sri DVR Raju Key Management Personnel (KMP)

2. Sri DRSP Raju Key Management Personnel (KMP)

3. Smt. D. Subhadra Relatives of Key Management Personnel (RKMP) 4 . Smt. Ch. Gayathri Relatives of Key Management Personnel (RKMP)

5. Sri D. Rama Raju Relatives of Key Management Personnel (RKMP)

6. Sri D.V. Prudvi Raju Relatives of Key Management Personnel (RKMP)

7. Sri Venugopal Reddy Others

8. M/s. Vayhan Coffee Ltd Others

9. M/s. DSL Finance Others

10. M/s. DCL Chemplast Ltd Others

NOTE NO. 9

Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's classi- fication/disclosure