1. Previous year figures have been re-grouped wherever necessary.
 
 2. Sundry debit and credit balances of loans and advances and debtors
 and creditors are subject to confirmation and reconciliation, if any,
 and Closing as taken valued and certified by management of the Company.
 
 3. Company has not made provision of Gratuity which is required to be
 made as per Accounting Standards.
 
 4. As informed to us, there are no contingent liabilities as on Balance
 Sheet Date except liability of Income tax which is created due to
 addition on account of Depreciation and Company has filed appeal
 against that demand but final order is not passed in the appeal by
 Income Tax Department.
 
 5. Auditors Remuneration relating to audit work Rs. 55000/- and Rs.
 8000/- for Certification and taxation work is provided at the end of
 year.  Internal Audit Fees of Rs. 15000/- is provided for the year.
 
 6. During the year remuneration is paid to Three directors and Plant
 Incharge Factory Incharge @ 11000/- Permonth and reimbursement of
 personal vehicles petrol and repairing expenses for official purposes.
 
 7. Company has calculated of its own Various Tax Liabilities applicable
 to the company by their competent personnel and we have relied upon
 their calculation made for counting statuaries liabilities under
 various acts applicable to the Company.
 
 8. Company has not deducted tax at source in case of Transport
 Operations as individual Contract of Transportation Charges does not
 exceed Rs. 20000/- and it is difficult to know whether payment has been
 exceeded the limit of Rs. 20000/- during the year in individual case.
 
 9. In Manufacturing Account all the expenses relating to utilisation of
 Processing material are debited on consumption basis i.e.  Valuation of
 consumption of material is debited to the Manufacturing Account.
 
 10. Company has invested the excess funds of issue proceeds in the
 promoter contribution shares of in various Companies and no return is
 received as the same companies has not declared any dividend till
 March, 1999.
 
 11. In Carriage Inward Expenses Company has hired the tankers from
 tanker owners and paid rent to the owners.  In addition to that Company
 has beared Fuel expenses and Repairing Charges but no written agreement
 is entered with these parties hence it is difficult to comment the
 terms on which these tankers were hired.