Regd. Off : A-60, OKHLA INDUSTRIAL AREA, PHASE - II, NEW DELHI - 110020.

AUDITED FINANCIAL RESULTS FOR THE

 YEAR ENDED MARCH 31, 2009

'The above audited results for the year ended March 31, 2009 have been reviewed by the Audit Committee and were approved by the Board of Directors in their meeting held on June 29, 2009.

'In accordance with Accounting Standard 17 on Segment Reporting issued by The Institute of Chartered Accountants of India, the Company has identified three Business Segments viz., Textile Manufacturing , Textile Trading and Other Trading. Accordingly, segment disclosure has been done.

'The Butibori unit of the company has applied for the restoration of the original validity period for Sales Tax Exemption upto December 31, 2008. Pending approval of such restoration, the unit has accrued VAT receivable amounting to Rs. 84,875,604 for the period January 1, 2006 to December 31, 2008. In case the unit fails to get such sales tax exemption from authorities, an amount, including interest, of Rs. 121,592,627 (Rs. 102,481,720 in respect of earlier years) will be payable. This matter has been qualified in the statutory auditor's standalone and consolidated audited reports for the year ended March 31, 2009. The management is hopeful of obtaining the exemption.

'The Company has an investment of Rs 204,469,921 in a subsidiary, as on March 31, 2009. The accumulated losses in the said subsidiary, at the year end approximates 98% of its net worth. There is also a reduction in market value of these investments as at the year end by Rs. 171,949,252. This matter has been qualified in the statutory auditor's standalone audited reports for the year ended March 31, 2009. In the opinion of the management, the above diminutions in this long term investment are due to adverse business conditions and are not ultimately expected to continue in future, provision for the diminution in the value of this long term investment is not considered necessary at this stage.
The loans, advances, debtors and interest due on the loan amounting to Rs. 443,542,127, Rs. 36,441,681, Rs. 8,185,909 and Rs.10,053,942, respectively, are due from the above subsidiary. These dues have been qualified in the statutory auditor's standalone audited reports for the year ended March 31, 2009. The management believes that the amounts would be realized within a reasonable period of time once the operation starts generating adequate cash profits and accordingly, have not provided for the same at this stage.
The debtors balance of Rs. 495,294,438 and advances of Rs. 20,310,823 are due from another subsidiary wherein a reorganisation plan is in process. These dues have been qualified in the statutory auditor's standalone and consolidated audited reports for the year ended March 31, 2009. The management believes that the reorganization plan coupled with improvement in the global textile market, will turn around the subsidiary so as to make good its losses in a reasonable period of time and will also place the subsidiary in a position to repay the outstanding dues.

'The Statutory Auditors in their standalone and consolidated audited reports qualified the amounts recoverable relating to certain debtor and advance balances aggregating Rs. 18,135,371 and Rs. 24,473,335, respectively. the Company has filed a suit for recovery of Rs. 18,135,371 against two of the customers. Also, in respect to advances of Rs. 24,473,335 the Company making efforts to recover and expect to reduce the same significantly. Based on outcome of the legal suit coupled with further negotiations with these parties, the management is of the opinion that ultimately there would be no losses against these old balances and hence no provision is considered necessary at this stage.

'There were no investor complaints pending at the beginning of the quarter, 4 complaints were received during the quarter and properly redressed  and there were no complaints pending at the end of the quarter.