The Company has only one class of equity shares having par value of Rs.10 each. Each holder of equity shares is entitled to one vote per share.The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting,except in case of interim dividend.In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all prefrential amounts including in respect of prefrence shares issued.The distribution will be in proportion to the number of Equity Shares held by the shareholders.

2. Debentures - from public [refer note 6 (1)(b)(i) abovel

(a) These are secured by a second, subservient and subordinate charge on the Company's immovable properties, both present and future and a second subservient charge by way of hypothecation of the Company's movable assets (save and except book debts) subject to prior charges created in favour of the Company's bankers / assignees on the Company's stocks of raw materials, semi-finished and finished goods, consumable stores, spares and such other movables for working capital requirements.

3. Term Loans and Zero Coupon Non-convertible Debentures - [refer note 6 (1Hb)(ii) and (ill) abovel

These are secured by a first charge on the Company's immovable properties, both present and future and a second charge by way of hypothecation of the Company's movable assets (save and except book debts) subject to prior charges created in favour of the Company's bankers / assignees on the Company's stocks of raw materials, semi-finished and finished goods, consumable stores, spares and such other movables for working capital requirements.

4. Borrowings from Banks - [refer note 6 (1)(b)(iv) abovel

These are secured by a first charge on the Company's book debts, stocks of raw materials, semi-finished and finished goods, consumable stores and spares and a second charge on the movable and immovable properties of the Company both present and future in favour of the banks / assignees, subject to prior charges created in favor of Term Lenders and ZCNCD holders or their assignees.

5. Although the accumulated losses as at the year-end amounted to Rs.9482.77 Lacs (Previous Year Rs.9199.73 Lacs) as against the paid up share capital of Rs.2670.20 Lacs (Previous Year Rs.2670.20 Lacs), pending the finalization and adoption of the business re-engineering plans[refer Note 17(c)(iii) below], these financial statements have been prepared on a 'goingconcern'basis and impairment loss, if any, will be accounted for as and when the business re-engineering plans are implemented.

6. In view of the accumulated losses, no transfer has been made to the Debenture Redemption Reserve in respect of secured and unsecured Non-Convertible Debentures.

7. Restructuring and Net Worth Status:

i. The Net Worth of the Company has been fully eroded and is negative as on March 31, 2015. The management had been advised that since certain conditions as per the Sick Industrial Companies (Special Provisions) Act, 1985 were not being met, the Company was not eligible to a make reference to BIFR. In the event of any change in the status inter alia arising out of developments in the pending legal case [refer Note (ii) below], appropriate steps will be taken in this regard.

ii. The validity of the closure declared by the Company with effect from June 26, 2008, under the relevant provisions of The Industrial Disputes Act, 1947, has been challenged before the Industrial Court by the employees' union and the matter is pending before the Hon'ble Court.

iii. The management has been exploring various options for restructuring the business and finances of the Company, including the recommencement / relocation of its manufacturing operations.

iv. As part of restructuring, the Company had earlier entered into an arrangement for the assignment of the leasehold rights of its land. However, certain issues have affected its implementation and the management is pursuing the matter.The advance received has however been utilized, inter alia, to settle certain liabilities of the Company.

v. During the year interest liability on all borrowings including debentures, excluding inter-corporate deposits (refer note 4), has not been provided since revised terms are in the process of being negotiated with the lenders and the management estimates that the liabilities already being carried are adequate.

vi. The Zero Coupon NCDs issued to and the Term Loans from IFCI Ltd. were assigned to a third party by IFCI Ltd. The assignment has been challenged by the Company and the matter is pending before the Hon'ble Delhi High Court.

8. Revaluation

i. The Company had revalued the land, building and certain plant and machinery as on April1, 1996 based on the valuation made by M/s PC. Gandhi &Associates, an independent firm of consulting Engineers, Surveyors and GovernmentApproved Valuers vide their report dated 30th April, 1997. Accordingly, the original costs of the above assets as on April 1, 1996 have been restated at estimated market value arrived at after adjusting the depreciation on the estimated replacement cost. The resultant increase in net book value arising on revaluation amounting to Rs. 4285.93 Lacs was transferred to Revaluation Reserve Account during the period ended 31st August, 1997. The following re-valued amounts remain substituted for the historical cost in the gross block of fixed assets:

ii. Revaluation Reserve amounting to Rs.4285.93 Lacs had been adjusted against the then accumulated losses pursuant to the scheme of restructuring approved by the Hon'ble High Court of Bombay vide its order dated April 23, 2001. Depreciation is, however, being provided on the revalued amounts.

9. Contingent Liabilities have not been provided for in respect of:

                                                             Rs Lacs

Particulars                           Year ended          Year ended
                                   31st March, 2015    31st March, 2014

i. Claims against the Company
which are disputed relating
to (including interest or
penalty upto the date of
demand)
Excise Duty                              62.26               62.26

Customs Duty                                 -                   -

Sales Tax                                31.40               31.40

Cess Liability                           28.35               28.35

MIDC Charges                            108.32              108.32

NMMC Property Tax                        14.72               14.72

ii Arrears of Fixed Preference           74.94               68.66
Dividend (Including Dividend Tax)

10. (i) In the opinion of the management, Current and Non-Current Assets, Long Term and Short Term Loans and Advances are realizable at a value, in the ordinary course of business,which isatleast equal to the amount at which these are stated, and provisions for all known and determined liabilities are adequate and not in excess of the amounts stated.

(ii) The accounts of certain Trade Receivables, Trade Payables, Loans andAdvancesand Lendersare however subject to formal confirmation/reconciliationand consequent adjustments, if any. The management does not expect any material difference affecting the current year's financial statements on such reconciliation / confirmation.

11. Deferred Tax Asset/Liability:

No current tax provision has been made in the absence of taxable profits and also no deferred tax asset is being recognized.

12. Details of transactions with related parties as identified by the management in accordance with Accounting Standard -18 of the Companies Accounting Standard Rules, 2006 are as follows:

(i) Key Management Personnel-Mr. S. P. Gupta, Wholetime Director (till 29.03.2013)

(ii) Associates with whom transaction have been entered into: - ISG Traders Limited; Kavita Marketing Pvt. Ltd.; Shubh Shanti Services Ltd.

(iii) The following transactions were carried out with each type of the above related parties in the ordinary course of business and at arm's length:

13. Notes: Figures inbrackets relate to Previous Year.

14. Disclosure in accordance with Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006.

The Company has not received any intimation from its vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure, if any, required under the said Act, have not been made.

15. Pursuant to enactment of the Companies Act 2013 (the Act), the Company has , effective IstApril 2014, reviewed and revised the estimated useful life of certain fixed assets, in accordance with the Schedule II of the Act. Accordingly, the Company has given impact of Rs. 145.81 (net of deferred tax of Rs. Nil ) on account of assets whose useful life was already exhausted on 1st April, 2014 to Retained Earnings. As a result of the change, the depreciation charged to the statement of Profit and Loss for for the year is lower by Rs. 24.74 lacs.

16. After the resignation of the Company Secretary w.e.f. June 30, 2007, the Company continues to make concerted efforts to appoint fill up the vacancy as required under Section 203 of the Companies Act, 2013.

17. Amount overdue to be credited to Investor Education Protection Fund is Rs.164.59Lacs (previous year Rs 164.59 Lacs).

18. The Company is primarily engaged in one segment i.e. EPDM Rubber. In view of the same, both primary and secondary reporting disclosures for business/geographical segment as envisaged in AS-17 are not applicable to the Company.

19. The previous year's figures have been re-grouped and/or re-arranged wherever necessary to conform to the current year's presentation.