(a) Term loans from two scheduled banks against pari pasu charges on equitable mortgage of existing and proposed plant & machinery factory land, building and all other fixed assets of the company and hypothecation of all movable assets of the company. In addition, first charge on companys land, head office building situated at kolkata, and at Sodpur, West Bengal and at Bhurkunda, Jharkhand and personal guarantee of a director and three corporate guarantors.

(b) No instalment payment against principal amount and interest have been made during the year.

Note 2 Disclosure under Accounting Standard-15 (Revised) on "Employee Benefits"

A. Defined Contribution Plan

The Company's Contribution to Provident Fund have been provided up to September"2011 but no Deposit has been made to the P.F Authority. Employees Contribution up to November'2011 has been provided and deposit of Rs 4,75,968/- for the period from April'2010 to Feb'2011 have been made.

B. Defined benefit Plan

The Company has a defined benefit gratuity plan. Payment of gratuity for every Employee have been vested on a Trust which follows Payment of Gratuity Act, 1972. The Company has revised the gratuity scheme with LICI effective from 1 st April, 2008 and opted a new scheme (Cash accumulation scheme). The policy has not been renewed and no provision for gratuity have been made.

Note 3 The company is required to replace the original bank guarantees amounting to Rs.267.70 lacs (issued by The Bank of Tokyo Mitsubishi Ltd. In favor of customs and Central Excise Authorities) by substitute Bank Guarantees from the Company's own banker within 27.02.2011 but the same has not yet been done.

Note 4 Foreign Currency Transaction

No foreign currency transaction have been effected during the year.

Note 5 Contingent Liabilities not provided for in respect of

(a) Disputes of excise duty leviable on the special packing and forwarding charges for earlier years, which has been remanded back by CEGAT, Delhi for further examination of records, setting aside the earlier order of the Central Excise Department (Amount un-ascertainable).

(b) Income Tax disputes on exchange fluctuation losses considered on foreign loans for the A. Y. 1989-90 to 1992-93 before Hon'ble Kolkata High Court have been decided in favour of the company and have been remanded to department for ascertaining the relief.

(c) The Company has filed an appeal before Employees Provident Fund Appellate Tribunal, New Delhi against the demand for penal damage of Rs. 214.68 lakhs (net of deposit of Rs.25 lakhs) vide order dated 30.06.2008 issued by Regional Provident Commissioner, Jharkhand.

(d) Appeal file before WBST Tribunal against Sales Tax demand of Rs.26.01 lakhs have been remanded to department for examination.

(e) Several money Suits are pending before different courts of law for recovery of dues of customers, suppliers and employees etc.

Note 6 Amount outstanding to small scale, micro and medium scale business entities are not ascertainable and therefore can not be quantified in the absence of proper identification of parties fall in under the above categories.

Note 7 Balance confirmation for advances, debtors and deposits have not been received. However they are considered fully recoverable except as provided for in the accounts.

Note 8 Through out the year factory was closed. Production and other activities of factory were suspended. Both the furnaces were cooled down.

Note 9 Figures of the previous year have been regrouped/rearranged to conform with Revised Schedule VI of the Company's Act, 1956.