2. The Company's Promoters' friends /associates have invested an amount of Rs. 6 Crores. Out of this equity shares and OCCPS allotment will be considered in accordance with the approved BIFR Scheme.

3. According to the provisions of Sections 80A of The Companies Act, 1956, the 9.5% Cumulative Redeemable Preference Shares of the Company, ought to have been redeemed before 15th June 1993. Since the Company is a sick industrial Company within the meaning of the Sick Industrial Companies (Special Provisions ) Act, 1985, the company, based on legal opinion, had filed a petition, before BIFR, seeking leave for redemption of the Preference Shares and the same is pending.

4. The company has not recognized interest dues on loans from banks and from body corporate up to 31-03-2012. As in earlier years, the company has not recognized interest dues on loans from bank. The arrears of interest aggregating to Rs.6.38 Crores subject to reconciliation has been converted by the bank during the period into Funded Interest Term Loan. In respect of Term Loan II, the company has not recognized interest dues from Nov.2010 to Mar.2012 amounting to Rs.88 55 440. The repayment of FITL in EMI terms scheduled to commence from January 2012 has not been made and the same will be recognized as and when the funded interest is serviced. The Company has not recognized interest dues on loans from Viz Projects, a body corporate upto 31-03-2012 to an extent of Rs. 1.89 Crores. The interest is for the period from 2009-10 with a right to recompense from the date of debt restructuring and the same will be recognized as and when it is serviced.

5. Excise duty liability on Finished Goods held in stock amounting to Rs.53 24 328/- has been provided for. However this will have no bearing on the working results of the Company since the value of closing stock has been adjusted by like amount.

6. On 30th December 2011, Cyclone Thane hit the factory, which caused extensive damage to the inventories. The surveyors have carried out the survey and are in the process of sanctioning the amount. The damaged stocks to the extent of Rs. 13135 908 has been written off. Out of the total insurance claim, the company has since received an adhoc payment of Rs.75 Lakhs from the insurance company.

7. Managerial Remuneration:

No Remuneration has been provided during the year.

8. No provision for taxation is considered necessary as the taxable income for the year ended 31st March 2012 is negative. During the year the company has recognized deferred tax asset considering reasonable certainty of future taxable income on a conservative basis.

9. In the opinion of the management, current assets, loans & advances have value in realization to the extent they are stated in the accounts.

ii) DEFINED CONTRIBUTION PLANS:

The company makes contribution towards employees provident fund, family pension fund, and employees state insurance scheme. Under the rules of these schemes the company is required to contribute a specified percentage of payroll cost. The company during the year recognized Rs. 56,26,002/-as expenses towards contributions to these plans.

10. Segment wise Revenue, results and Capital employed:

The company operates only one segment viz. Sanitary Ware

11. In the absence of information from the Company's Creditors with regard to submission of memorandum with the Specified Authority, as required under the Micro, Small and Medium Enterprise Development Act, 2006 the Company is unable to furnish the information under the said Act and The Companies Act 1956.

12. Previous year figures have been regrouped and reclassified wherever necessary to conform to current year classification.