1. The company has only one class of shares referred to as equity shares having a par value of Rs. 5/fully paid up. Each holder of equity shares is entitled to one vote per share held.

2. Redemption of Cumulative Redeemable Preference Shares (CRPS).

1,493,365 1% of Cumulative Redeemable Preference Shares of Rs.100 each aggregating to Rs. 1493.37 lakhs is redeemable in 12 quarterly installments co-terminus with principal payment commencing from October 01, 2013 and ending July 01, 2016. CRPS carry cumulative dividend@1% per annum. . Each holder of CRPS is entitled to one vote per share only on resolutions placed before the company which directly affect the rights attached to CRPS.

3. Loan from banks viz. Punjab National Bank, Bank of India, Indian Overseas Bank, IDBI Bank, State Bank of Patiala, The Karnataka Bank Ltd., Bank of Baroda, Laxmi Vilas Bank, Indian Bank, Oriental Bank of Commerce and Andhra Bank are secured by first charge on all the immovable and movable fixed assets of the company both present and future and second charge on the current assets of the company. Further these loans are secured by personal guarantees of director and promoter.

Loan from SASF are Secured by 1st charge on Unit at Sanivada Village, Rajeevnagar, Visakhapatnam - 530 046, Andhra Pradesh, Unit at Plot No. B-20E, SIPCOT Industrial Complex, Gummidi Pondi, Chennai, Tamilnadu and Unit at Survey No. 296/7/7, 8 & 11, IDA Bollaram, Jinnaram Mandal, Medak District - 502325, Telangana.

4. The terms of repayment and rate of interest on the loans from banks and financial institutions mentioned in the Note No. 39

5. Vehicle loans from banks are secured by hypothecation of the vehicles financed through the loan arrangements and are repayable over a period of 36 months to 60 months.

6. Loans repayable on demand includes an amount of Rs. 1,04,401.99 lakhs (31.03.2015:Rs.54,996.50 lakhs) represents working capital loans from banks are inter alia secured by way of parri passu first charge on current assets and parri passu second charge on fixed assets both present and future. Further these loans are secured by personal guarantee and properties of certain directors.

7. Rs. 75.00 lakhs has been brought from others.

8. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006.

Trade payables (Ref: Note No.10 -Trade payables include Rs.Nil (31.03.2015 : Rs. Nil) due to micro enterprises and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act 2006). The Company has not received any memorandum(as required to be filed by the supplier with the notified authority under the MSMED Act 2006) claiming their status as Micro or Small or Medium Enterprises.

9. TERMS OF CDR AND IMPLEMENTATION THEREOF:

The loans of the company have been restructured under the Corporate Debt Restructuring (CDR) System. The CDR package was sanctioned by CDR Empowered Group, at their meeting held on 25.03.2013

All the lenders with the exception of SASF have restructured the debts as stipulated in the package. Though SASF agreed with the general terms and conditions of restructuring under CDR, it insisted for clearance of interest overdue as on October 1, 2012 (CDR COD) and has not communicated sanction for CDR package.

10 The Company’s significant leasing arrangements are in respect of operating leases for premises (office, stores, godowns, etc.). The leasing arrangements, which are not non-cancellable, range between ten months and three years generally, and are usually renewable by mutual consent on agreed terms. The aggregate lease rentals Rs.117.44 lakhs (31.03.2015 : Rs. 176.43 lakhs) payable are charged as rent in to the statement of profit and loss.

11 Balances of Unsecured loans, receivables, payables and loans and advances are subjects to their confirmation and reconciliations.

12 Previous period’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.