1. The Company has created a Gratuity and Superannuation Fund and taken
 a policy under Group Gratuity Scheme and Superannuation Scheme with LIC
 for future payment of gratuity and superannuation to the employees.The
 company has paid the premium as demanded by LIC under the policy upto
 2000-01 & Rs. 400000 as part payment against demand of LIC for the year
 2001-02 and no futher payment has been made till 31.03.05. During the
 year 2004-05 liability on these accounts has been provided on estimated
 basis without making acturial valuation as no demand has been raised by
 LIC. The provisions made on these accounts have been included in
 Schedule N. The total amount of estimated liability as on 31.03.05
 payable to LIC is Rs. 44.69.704/- including Rs. 11,27,443/- for the
 year and Rs.7,54,189/- including Rs. 2,44,508/- for the year on account
 of Gratuity Fund and Superannuation Fund respectively.
 
 2. Research and Development Expenses includes Wages, Salaries, Bonus,
 Allowance etc.of the staff of Companys Research & Development
 Laboratory at Nagpur Unit. The Laboratory has been granted recognition
 by the department of Scientific & Industrial research Ministry of
 Science & Technology Government of India, valid upto 31st March, 2005.
 
 3. Balance of Advances, Debtors, Creditors and Loans have been stated
 as per Ledger pending confirmation.
 
 4. The Nagpur Unit of the Company follows cash basis accounting for
 interest against delayed payment of statutory dues.
 
 5. The companys Leasing arrangements are in respect of operating
 leases for some items of Plant & Machinery valued at Rs. 5030338/-.
 These arrangements are non cancelable and are for five years term which
 will expire in 2005-06.The company has the option to purchase the
 assets at the end of the year. Lease tenure at its residual value which
 will not be less than 1 % of the Asset value. The lease rentals paid
 during the year have been charged as Lease Rent under Schedule P.
 Nothing is payable to the leassor as on 31st March, 2005 except for the
 residual value of the asset which has also being paid in advance,
 pending adjustements in the next year.
 
                                                          (in Rs.)
                                                     as at         as at
                                                31.03.2005    31.03.2004
 6. Contingent Liabilities not provided for
 a) i) Outstanding Bank Guarantees/Counter
 Guarantees (including Foreign
 
 Guarantees Rs.527,631/-)                        1,157,631     3,278,815
 Previous year Rs. 1,048,815/-)
 ii) Foreign Bills discounted remaining unpaid           -     1,637,230
 
 b) Claims against the Company not
 acknowledged as Debt
 
 i) Sales Tax under Appeal                       1,768,114     4,865,462
 
 ii) Other Matters                               6,025,825     5,867,285
 
 iii) Income Tax demands pending appeal          5,350,105     7,960,827
 
 The Advance Tax there against                   5,759,871     8,254,433
 
 c) Excise duty claim under dispute                188,612       270,061
 
 7. Estimated amount of contracts remaining
 to be executed on Capital. Account and
 not provided for                                3,100,001     3,100,001
 
 Advance there against                             546,475       200,000
 
 8. Amount due from a Private Ltd. Co. in
 which a Director is a Director
 which relates to security deposit
 for use of office premises on                   1,312,060     1,312,060
 leave and licence basis.
 
 9. Provision for Excise Duty and
 eduction cess on Closing Stock of                 674,254     1,001,408
 Finished goods has not been made.
 However, this has no effect
 on the Loss of the Company
 and year end net assets.
 
 10. Employment expenses in ScheduleN
 includes remuneration to Whole-time
 Directors as follows :-
 
 Salary                                          1,338,000       631,500
 
 House Rent Allowance                              722,520       341,010
 
 Contribution to Provident Fund & Others Funds     371,160       166,860
 
 Other Perquisites (Actual)                        130,125        91,042
 
                                                 2,561,805     1,230,412
 
 11. Materials are lying for fabrication with several third Parties
 pending confirmation. The recoverability of said materials lying with
 seven parties valued at Rs.985460/- is not ascertainable as the party
 has closed down its operation.
 
 12. Calls in arrear (under Share Capital Account) represent Application
 and Allotment monies due from underwriters who have not paid till
 31.03.2005 in terms of their underwriting agreement. However the
 company has made representation to SEBI for appropriate action for
 realisation of this amount.
 
 13. Advance to parties includes Rs.715881/- recovery ofwhich is
 doubtful at their book value.
 
 14. a) Sundry Debtors over six months includes Rs.12035715/- (Previous
 year Rs. 10334694) recovery of which is doubtful at their Book value.
 
 b) Legal steps for recovery has been taken for realisation from debtors
 amounting to Rs.6800182/- other than those stated in 14(a)
 
 15. The company has passed a resolution u/s 293(l)(a) for sale of
 Nagpur Unit and surplus land at Andul, Howrah. Sales have yet to be
 affected pending legal case.
 
 16. In the opinion of Board carrying cost of assets shown in the
 financial statement is less than its realisable value. Therefore no
 provison required for impairement loss on the assets of the Company.
 
 17. The appointment & remuneration of wholetime directors has been made
 by the board pending approval by the shareholders in the AGM. Further
 two of the Directors who was to retire by rotation is continuing as the
 previous AGM of the company has been adjourned Sine Die. However,
 Direcotrs have been paid salary as approved by the Board/Previous
 Resulation.
 
 18. Appointment of Auditors has not been made in the AGM which was
 adjouned Sine die. As per provisions of Companys Act, the auditor-will
 hold office till the conclusion of the AGM and accordingly they
 continue as auditors.
 
 19. In terms of Accounting Standard 22, issued by the Institute of
 Chartered Accountants of India, there is a net deferred tax asset of
 Rs.48269330/- as on 31s March 2004. Forthe current year i.e. upto 31s
 March 2005, too, there is a net deferred tax asset of Rs.9927175/-.
 These have not been accounted for in these accounts, as a matter of
 prudence.
 
 20. The technology transfer Agreement with Rejna S.p.A. entails
 substantial payments on account of Royalty and technology transfer fee.
 The same has not been utilised to its full potential, as there is a
 drop in demand for the products comprised, in the said Agreement. As
 and when the market demand picks up, the transfer of the full
 technology will be made. The Royalty and fees payable thereon is
 presently not ascertainable.
 
 22. In Terms of AS20, issued by the Institute of Chartered Accountants
 of India, the Calculation of EPS is given below :
 
                                                 2004-2005     2003-2004
 Loss as per Accounts (Rs.)                     32,588,878    32,387,583
 
 Weighted Average No. of Equity Shares
 outstanding during the year,                    4,908,459     4,908,459
 
 Basic & Diluted EPS (Rs.)                           -6.64         -6.60
 
 23. Related Party Disclosures in terms of AS18, issued by the Institute
 of Chartered Accountants of India Associate Companies : Coventry
 Coil-O-Matic (Haryana) Ltd. (Joint Venture) Key Management Personal :
 Shri N.M. Bafna, Whole time Director, is Managing Director of Coventry
 Coil-O-Matic (Haryarya) Ltd.
 
 Shri A. M. Bafna, Whole time Director, is Director in Coventry
 Coil-O-Matic (Haryana) Ltd
 
 Transaction with Related parties  Associate Company Management Personal
 
 Equity Contribution (in Cash)                                33,663,449
 
 Creditors & Other Payables                                   11,461,942
 
 Intercorporate Loan taken                                     1,327,493
 
 Management Contracts                              -           1,365,225
 
 24. The Closing Stock of slow moving finished goods and WIP at Nagpur
 Unit (not moved for more than 3 years) have been valued at current raw
 material cost irrespective of rate of raw materials at the time of
 issue for production. The effect of this on the loss of the Company is
 not readily ascertainable.
 
 25. The Inventory of Stores and Components includes nos. of slow moving
 /non-moving items valued at Rs.1738255/- for which no provision has
 been made in the accounts.
 
 26. In the absence of market quotation of Maharastra Elektrosments Ltd.
 during the year, last quotation published (3 years back) have been
 disclosed in the investment schedule.
 
 27. Miscellaneous Expenses include cash discount of Rs. 90449/- allowed
 to the customers.
 
 28. The balance of Rs. 53448429/- with State Bank of India (C/C a/c)
 has been transferred by the Bank to Debts Recovery Cell in the month of
 August 2004. Hence the balance has been reduced to nil as shown in the
 Bank Statement of August 2004. Provision for interest has not been
 provided as the same is subjudice.
 
 29. The interest on fixed depoist amounting to Rs. 882865/- from a
 Director and few others have been paid bycheque which remains to be
 presented for clearance by them.
 
 30. Sales shown in the Profit and Loss Accounts
 includes excise duty (in Rs.) Sales including excie duty    120,949,964
 
 Less : Excise duty                                           13,762,569
 
 Net Sales                                                   107,187,395
 
                                                                (in Rs.)
                                                     as at         as at
                                                31.03.2005    31.03.2004
 31. Additional information:
 
 Goods manufactured and Turnover
 Installed Capacity(Spring/Washer)            11,950 M.T.    11,950 M.T.
 
 Installed Capacity (Fastner)                   2500 M.T.     2,500 M.T.
 
 a) Consumption of Rawmaterials & Components
 (net of Modvat credit and Sales Tax set off)
 
 i) Steel for Manufacturing of Spring/        1445.048MT      1060.050MT
 Washer.                                      52,848,253      30,038,510
 
 ii) Components & Others                       1,815,816       2,439,391
 
 b) Details regarding Raw Materials, Stores
 and spare parts and Components Consumed
 
 i) Raw Materials and Components
 Indigenous                                   54,664,069      32,477,901
                                                  (100%)          (100%)
 
 ii) Stores, Spare Parts
 Indigenous                                    7,677,221       5,550,760
                                                (99.44%)          (100%)
 
 Imported                                                         42,889
                                                                 (0.56%)
 
 c) Earning in Foreign Exchange :
 Export of Goods (F.O.B Value)                 8,471,319       3,943,628
 
 d) Expenditure in foreign
 currency (on cash basis)
 
 i) Others                                        65,554          28,159
 
 34. Previous year figures have been regrouped, rearranged and recast,
 wherever considered necessary.
 
 35. The figures for current year are not comparable with previous year
 as the current year comprises of 12 months period covering April 2004
 to March 2005 as against 6 months period for previous year.