SHARE CAPITAL
 
 Authorised
 17,500,000 Ordinary shares of Rs. 10 each
 750,000 Preference shares of Rs. 100 each
 
 Issued, Subscribed and Paid up
 7,593,768 Ordinary shares of Rs.10 each fully paid up.
 Of the above 4,145,326 Shares were allotted
 as fully paid up Bonus shares by capitalisation
 of General Reserve.
 
 Notes:
 
 (a) Loans from banks are secured by :
 
 - hypothecation on stocks of raw material, stock-in-process, stores,
 manufactured goods, book debts, bill, moveable plant & machinery and
 other current assets.
 
 - mortgage on second charge basis by deposit of title deeds by
 constructive delivery with Exim Bank, Exim Bank acting as agent of the
 consortium of banks, all documents of title evidences, deeds and
 writings in order to create a security on the Company's immovable
 properties together with all buildings and structures thereon and all
 plant and machinery attached to the earth or permanently fastened to
 anything attached to the earth.
 
 b) Term Loans from financial institution are secured by hypothecation
 of all moveables, save and except book debts, including moveable
 machinery, spares, tools and accessories, both present and future,
 subject to prior charges created or to be created in favour of the
 company's bankers for financing working capital requirements.  Loans to
 the extent of Rs. 12,500,000 (31.3.2004 Rs. 112,580,000) are also
 secured by mortgage of the Company's immovable properties both present
 and future.
 
 1. Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs. 21,763,612 (31.3.2004 : Rs.3,035,164).
 
 2. Contingent Liabilities not provided for :
 
 (a) Guarantees
 
 The Company has furnished a guarantee for repayment of institutional
 loans of another company in accordance with the terms of rehabilitation
 of that Company sanctioned by the BIFR. The contingent liability under
 the guarantee is Rs. 1,100,000 (31.3.2004 : Rs. 2,200,000).
 
 Bank Guarantees : Rs.  222,849,541 (31.3.2004 : Rs. 213,141,945).
 
 (b) Bills drawn on customers and discounted with banks and advances
 against collection : Rs. 150,868,321 (31.3.2004 : Rs. 94,079,684).
 
 (c) Claims against the company not acknowledged as debts :
 
 i) In respect of matters relating to Income-tax, Wealth Tax and other
 Commercial Taxes which are under appeal Rs. 23,690,802 (31.3.2004 :
 Rs. 38,197,671).
 
 ii) In respect of other matters : Rs. 11,381,148 (31.3.2004 :
 Rs. 11,230,907).
 
 3. Rampur Texpro Unit and 100% EOU Narayanpur have been closed with
 effect from 22 July 2003 and 20 February 2004 with due process of law .
 Working at Shalimar Unit has been suspended since 18 March 2005 due to
 strike by the workers. Wellington Jute Mill, Rishra, Hooghly remained
 under suspension of work from 20 October 2004 to 07 November 2004 due
 to labour unrest. Working at Libra Carpet and 100% EOU at Choudwar has
 resumed operation from 22 February 2005. Management is of the view that
 the sale proceeds of the fixed Assets relating to the Rampur and
 Narayanpur Units would not be lower than the amount at they are carried
 in the books .This has been relied upon by the Auditors.
 
 4. Insurance claims in respect of fire occurred in February 2004 at
 Wellington Jute Mill would be accounted for on settlement/receipt of
 related claim from the Insurance Company which is under assessment.
 
 5. The Company has an Investment of Rs. 2,420 (31.3.2004 :
 Rs.2,100,000) in A.I.Champdany Industries Limited (AICIL) and has
 advanced an interest free loan of Rs. 82,000,000 (31.3.2004 : Rs.
 82,000,000) in accordance with the scheme of rehabilitation sanctioned
 by the BIFR. AICIL has since turned around and its net worth became
 positive as of 30 September 2004.
 
 6. The Company has taken under financial lease Plant & Machinery having
 an aggregate cost of Rs. Nil (31.3.2004 : Rs. 1,184,200). The lease
 rentals paid during the year amounted to Rs. Nil (31.3.2004 : 367,853).
 
 7. Small Scale Industrial units to which the Company owes amounts which
 have been outstanding for more than 30 days as at 31 March 2005:
 
 Associated Engineering Co, A.B. Engineering, Bengal Paper Core
 Industries , Bhadreswar Foundry, Eshani Rubber Industries, Fintex
 Private Ltd., Gadia Manufacturing Co., Garuda Automation System, Jai
 glass & chemical, Jupiter S Co., Juco Machinery Corporation, Kaven
 Plasticare Pvt. Ltd., Madhavi Engg. Works , S.K.  Synthetics, Sandeep
 Industries, Synthetic Plywood Industries (P) Ltd., Shankar Engineering
 works, Rescon Chemicals (P) Ltd., Universal Stores Syndicate.
 
 The above information has been compiled in respect of parties to the
 extent to which they could be identified as small scale and ancillary
 undertakings on the basis of information available with the Company.
 
 8. Commodity Hedging Transactions
 
 The outstanding commodity hedging contracts are accounted on the date
 of their settlement and realised gain/loss in respect of settled
 contracts are recognised in the Profit and Loss Account, along with the
 underlying transactions.
 
 9. The Profit and Loss Account includes net exchange gain of
 Rs.5,804,006 (2003-04: Rs.12,590,362).
 
 10. The Profit & Loss Account includes a debit of Rs. 60,000
 (2003-04:Rs. 515,286) relating to earlier years.
 
 11. The Company's application to the Competent Authority for exemption
 from the provisions of the Urban Land (Ceiling and Regulation)Act, 1976
 is pending approval.
 
 12. Purchase of goods include Rs. 456,601,673 (2003-04
 Rs. 1,067,609,856) towards Purchase of 16,109 M.T. (2003-04 : 46,342
 M.T.) of Jute Goods.
 
 Notes :
 
 (1) The Licensed Capacity of Wellington Jute Mills has been estimated
 by the Management based on the number of spindles licensed at the Mill.
 The Licensed Capacities in respect of the Export Oriented units,
 Shalimarunit and Carpet unit are in accordance with respective
 industrial licenses.
 
 (2) As certified by the Directors and accepted by the Auditors.
 
 (3) Excludes data for captive consumption.
 
 13. Jute Carpets have been treated as belonging to the same class as
 Jute Goods and accordingly, information relating to Turnover,
 Capacities and Production of Jute Carpets has been included in Jute
 Goods in Schedule 13 and Note 25 respectively
 
 14. The Company has maintained separate books of account for each of
 its 100% Export Oriented units at Rishra, Narayanpur , Choudwar and
 Konnagar (yarn) and for the other units at Shalimar, Rampur, Konnagar
 (Weaving), Beldanga, Jagatdal (Flax) and Libra Carpet unit at Choudwar.
 
 15. Champdany Constructions Limited, has become wholly owned Subsidiary
 company with effect from 10 October 2004.
 
 16. In terms of approval of the Shareholders in the General Meeting of
 the Company held on 25 February 2005 convened by Hon'ble High Court at
 Kolkata, the Scheme of Amalgamation with A.I. Champdany Industries
 limited , has been submitted to the Calcutta High Court. The Scheme
 will be given effect to in the financial statements with effect from 01
 April 2004, only after necessary regulatory approvals are received.
 
 17. Remittance in Foreign Currencies for Dividends :            Rupees
 
                                                     2004-05    2003-04
 
 No. of non-resident shareholders                      2          2
 No of shares held by non-resident shareholders    3,200,000  3,200,000
 Amount of Dividend remitted (Gross) in respect
 of years to which such dividends relate (in Rupees)
 2002-03                                               -   Rs.5,760,000
 2003-04                                               -   Rs.8,000,000
 
 18. Previous year's figures have been re-arranged/re-grouped, wherever
 necessary to conform to current year's classification.