The Company has one class of Equity Shares having a par value of Rs 10. Each holder of Equity Share is entitled to one vote per Share.

2. Terms/RIghts attached to 8% Non-Cum-Preference Shares

The Company has one class of 8% Non-Cummulative Shares having a par value of Rs 100/-. These shares are redeemed on completion of 20 years from the date of issue.

1. CONTINGENT LIABILTIES:-

a) The liabilities in respect of Income Tax, Purchase Tax and Sales Tax have been accounted for on the basis of respective returns filed with the relevant authorities. Additional Demand, if any, shall be accounted for in the year in which the assessment is complete. The status of tax assessments is as under:

i) The Income Tax assessments have been completed upto the assessment year 2012-13. An Additional demands of Rs.45.02 Lacs for A.Y. 2007-08 has already been paid and Shown under Other Current Assets as income tax paid under protest. The company has filed appeals against the said demand before the Income Tax Appellate Tribunal, which is pending for adjudication.

ii) The Sales Tax/Purchase Tax assessments have been completed up to the Financial Year 2010-11 and there is no demand outstanding.

b) Central Excise Authorities have gone in appeal against the order of Commissioner (Appeals) which was decided in favour of the Company against the demand of Rs. 258.70 Lacs (Previous Year Rs.258.70). The Company has refuted the liability based on the advice received from the legal experts and accordingly has not made any provisions in the books of accounts. The requisite provision, if any, will be made in the year the final decision is made.

c) . The Central Excise Authorities, Mumbai had imposed duty

and penalty aggregating to Rs. 723.00 Lacs(Previous Year Rs. 723.00 Lacs) for purchase of certain items against CT-3 forms without payment of duty. The Company has disputed the said demand and filed an appeal to set aside the said orders. The requisite provisions, if any, will be made in the year of final decision.

d) The Company has given counter guarantee to banks of Rs 6.00 lacs (Previous Year Rs. 6.00 Lacs) in respect of the guarantees issued by the banks on behalf of the Company in favour of HPSEB.

2. The Capital Reserve represents forfeiture of 10% upfront payment received on Convertible Warrants issued during 2005-06

3. In view of insufficient information from the suppliers regarding their status as Small, Micro & Medium Enterprises, amount overdue to such undertakings can not be ascertained. However, the Company has not received any claim from any supplier in respect of interest.

4. Two creditors of the Company have filed winding up petition against the company under Section 271 of The Companies Act, 2013 in the Punjab & Haryana High Court for payment of Rs. 7.95 Lacs, which is pending for adjudication.

5. The balance of trade receivable, trade payables, contractors and others are subject to reconciliation and confirmation

6. In the opinion of the Board of Directors all the Current Assets, Loans and Advances except to the extent of provision of Rs.9.21 Lacs for doubtful debts, if realized in the ordinary course of business, have a value at least equal to the amount at which these are stated in the Balance Sheet.

7. As per Accounting Standard-11, "Effects of Change in Foreign Exchange Rates" issued by "The Institute of Chartered Accountants of India", the amount due to foreign creditors have been restated at closing rate i.e. rate as at 31.03.2015. The difference amount of Rs. 65,429.32 is adjusted through Exchange Rate fluctuation Account.

8. During the year, the company has provided depreciation based on the useful life of the assets as per schedule II to the companies act,2013 whereas earlier the same was provided at the rates prescribed in schedule XIV to the companies act, 1956. As the result of this change, the amount of depreciation charged is higher by Rs 42.45 Lacs.

9. As per Accounting Standard - 15 "Employee Benefits", the disclosure of Employee Benefits as defined in the Accounting Standard are as follows

The assumptions are as follows:

i) All valuation assumptions have been set strictly in accordance with guidelines contained in AS15(R)

ii) The assumptions employed for calculation are:

iii) The discount rate has been determined by reference to market yields as at 31st March, 2015 on CG-Secs of currency and term consistent with those of benefit obligations.

iv) The estimated rate of increase in compensation levels takes into account inflation, seniority, promotion and other relevant factors such as demand and supply in the employment market. This estimate is also tempered by quick review undertaken, in cooperation with the company's officials, of the company's past and current wage structure, staff compensation practices and the level of price neutralization likely to be affected through periodic wage increase over the next 5 to 10 years. Furthur, it is assumed that the ceiling on gratuity amount will increase in line with salary inflation over the long term. No allowance has been made for performance based discretionary increase in salary in individual cases.

v) The retirement age has been uniformly taken as 58 years.

vi) No allowance has been made for future improvement in in-service mortality.

vii) It is assumed, based on their overall behavior pattern, that the employees are unlikely to avail/encash the entire accumulated/ cany forward of leave during the coming 12 months.

viii) Attrition rate vary from industry to industry and, within industry, from company to company. In practice no single averaged out figure is likely to be representative of the different attrition rates observed over the entire age range. Since the data regarding the number of employees who left the services of the company during past few years is not available, the attrition rate, which is chosen with the concurrence of the company's authorized officials, is based on the experience gathered from other similar manufacturing units broadly corresponding in size, activity and staffing pattern to those of the Company

10 RELATED PARTY DISCLOSURES:-

Disclosures as required by the Accounting Standard -18 "Related Party Disclosures" issued by the ICAI are given below:

-Associate Companies

1. Universal Cyber Infoway Pvt. Ltd.

2. Pride Properties Pvt. Ltd.

3. Susang mac Pvt. Ltd.

4 Sam Export

5. Waltz Retail and Marketing

6. Gulmohar Investments & Holdings Ltd.

7. Socks & Socks

-Key Management Personnel:

1. Mr. R.C. Mahajan - Managing Director

2. Mr. Amit Mahajan - Director Commercial & Chief Financial Officer

3. Mr. Amit Mahajan - Director Operations

4. Ms. Chetna Anand - Company Secretary

11. As per Accounting Standard -28 "Impairment of Assets" issued by ICAI, the management has reviewed its cash generating units as on 31.03.2015. No indication has been found by the management to suggest that the recoverable amount of Asset is less then the carrying amount. Hence no impairment loss on asset has been recognized.

12. During the month of July, 2014, the company's plant at District Una was flooded and the company suffered a heavy loss. Insurance claim for Rs. 163.03 Lacs was filed with the insurance company. The insurance claim was settled at Rs. 104.13 Lacs. The balance loss of Rs. 58.90 Lacs has been written off as an exceptional item in the Statement of Profit & Loss.

13. Due to inadequate profits, the company has not created Capital Redemption Reserve.

14. CIF Value of Imports, Earnings & Expenditure in foreign Currency

15. Previous year figures have been recasted/regrouped/ rearranged wherever necessary to make them comparable with that of current year.