1) Loan Funds
 
 a) Term Loans from Banks are secured by hypothecation by way of
 specific charge on plant and machinery and additionally secured by a
 specific charge on buildings, and guaranteed by a Director
 
 b) Cash Credit, Packing Credit, Bills and Other Loans from Banks are
 secured by hypothecation of raw materials, work in process, finished
 goods, book debts on paripassu basis and goods covered by the Bills /
 Letters of Credit and Fixed deposits with banks, first charge on
 specific machinery and second charge on the fixed assets of the
 company, and guaranteed by a Director.
 
 c) Term Loans from financial institutions are secured by first charge
 on fixed assets of the company (excluding those charged to Company's
 Bankers) on pari passu basis and on movable properties including
 movable Plant & Machinery, Spares, Tools and other movables both
 present and future (save and except book debts) subject to charge
 created or to be created in favour of bankers on stock of raw
 materials, semi-finished goods and finished goods, and also secured by
 charge on building under construction and guaranteed by a Director.
 
 d) Car loans/HP loans given by Non-Banking Finance Companies are
 secured by mortgage/hypothecation of specific assets as per the
 respective agreements.
 
 e) Unsecured Loan others includes :        1999-2000          1998-99
                                       Rs. in thousands Rs. in thousands
 
 i)  Short Term Loan from Banks                24313.87         6743.00
 
 ii) Guaranteed by Director                    40175.00        36026.00
 
 2) Certain Fixed Assets held in the name of erstwhile Shree Products
 Limited (since merged with the Company) are in the process of being
 changed in the name of the Company.
 
 3) a.  Capital work-in-progress under fixed assets includes advances of
 Rs 11438.43 thousands (Previous year Rs 33596.93 thousands) made to
 builders and promoters of flats in respect of which legal formalities
 connected with registration of undivided portion of land are pending.
 
 b.  Work In Progress under fixed assets amounting to Rs 37801.08
 thousands (Previous year Rs 37801.08 thousands) are relating to
 projects pending commencement which is outstanding for a long time
 since the project has not yet been taken up on certain technical
 grounds.  The amount has not yet been written off pending final
 decision to be taken regarding continuation or otherwise of the
 projects.  Included above, a sum of Rs 17803.96 thousands (Previous
 year 17803.96 thousands) being advance made for purchase of plant and
 machinery.  In the opinion of the Directors the said sum is considered
 good, and is adjustable against supply of machinery required for other
 divisions of the company.
 
 4) a. Revaluation of Buildings on Lease Hold Land And Plant And
 Machinery of the Pharmaceutical Closure division carried out by an
 approved valuer as at 31st March 1990 and as at 31st December 1997, has
 resulted in an increase in the Gross Value of the Assets over the
 Original Cost by Rs 29923.65 thousands (Buildings Rs 8560.83 thousands
 & Plant and Machinery Rs 21362.82 thousands).  Out of the above, Rs
 189.92 thousands pertaining to Plant & Machinery has been withdrawn on
 account of sale of the said assets in earlier years.
 
 b) Further, revaluation of land buildings including buildings on lease
 hold land and plant and machinery including plant and machinery under
 installation of the tyre division at Chennai carried out by an approved
 valuer as at 30th June 1992 and as at 31st December 1997 has resulted
 in an increase in the gross value of assets over the original cost by
 Rs 59135.52 thousands (land Rs 13695.70 thousands, buildings Rs 3330.13
 thousands and plant & machinery Rs 42109.65 thousands) Out of the
 above, Rs 3403.99 thousands pertaining to land Rs 1.78 thousands
 pertaining to plant & machinery and Rs 130.17 thousands pertaining to
 Building have been withdrawn on account of sale of the said assets in
 earlier years.
 
 c) The increase in the gross value of the assets at Pharmaceutical
 Closures division over their book value as at 31st December 1997 on
 account of the revaluation made on 31st December 1997 is Rs 16452.44
 thousands (Buildings Rs 4340.12 thousands & Plant & Machinery Rs
 12112.31 thousands) The increase in the gross value of the assets at
 Tyre divisions over their book value as at 31st December 1997 on
 account of the revaluation made on 31st December 1997 is Rs 21012.90
 thousands (Land Rs 10291.72 thousands, Buildings Rs 2542.61 thousands &
 Plant & Machinery Rs 8178.56 thousands).
 
 d) The net increase in value resulting from the revaluation of Rs
 89059.17 thousands is adjusted against the revaluation reserve.
 
 e) The accumulated depreciation upto 30.09.2000 computed on the basis
 of revaluation of the above and adjusted against the revaluation
 reserve is Rs 38492.42 thousands (previous year Rs 31849.09 thousands)
 
 f) Gross depreciation for the current year is Rs 73253.16 thousands
 (previous year Rs 55358.40 thousands) includes Rs 6643.33 thousands
 (previous year Rs 7578.99 thousands) pertaining to revalued portion
 Amount equivalent to that has been transferred from the Revaluation
 Reserve.
 
 5) a.  Sales include Labour Charge receipts.
 
 b.  Other Income include profit on sale of shares held in Equatorial
 International Ltd. amounting to Rs 840 thousands (Previous year Rs
 Nil).
 
 6) Pending confirmation, reconciliation and consequential adjustments
 if any balances in respect of certain receivables/payables and certain
 bank accounts are adopted in the accounts as per the General Ledger.
 
 7) Equatorial International Ltd, has ceased to be a subsidiary company
 consequent to sale of 40000 equity shares of that company.
 
 8) Provision for Taxation
 
 Provision for tax of Rs 1000 thousands pertains to Minimum Alternate
 Tax (MAT) for the A Y 2000-01.  Provision for taxation for the period
 from 1.4.2000 to 30.9.2000 will be made at end of in the financial
 pertains to AY 2001-02.
 
 9) In the opinion of the Board, (i) Current Assets, Loans & Advances
 are approximately of the value stated if realised in the ordinary
 course of business (n) all the necessary provisions have been made and
 there are no liabilities other than that stated in the balance sheet.
 
 10) Previous period's figures have been regrouped/rearranged wherever
 necessary to confirm current periods classification.
 
 11) Statements are prepared for the period of 18 months i.e. from 1st
 April 1999 to September 2000 whereas previous period consists of 15
 months from 1st January 1998 to 31st March 1999.  As such figures of
 the current period are not comparable with those of previous period.
 
 12) Interest payable on loans from certain companies is accounted on
 cash basis.  The amount due on accural basis for the year is Rs.
 2181.00 thousands (Previous year Rs. Nil).
 
 13) Unpaid dividend of Rs. 3087.85 thousands for the year 1998-1999 has
 not been deposited in a special bank account opened by the company in
 that behalf with the scheduled bank.  Out of this, an amount of Rs
 2431.74 thousands is payable to the promoters, their relatives and
 friends.
 
 14) The disclosure in respect of quantitative details in compliance for
 para 3(i)(a) and para 3(ii)(a) of part II of Schedule VI of the
 Companies Act' 1956 has not been furnished.  The company has made an
 application to the Central Government for renewal of the exemption
 which was granted in the earlier year by the Central Government vide
 order no 46/120/99-CL-III dated 176.99.
 
 15) In the frame manner, the company has not furnished the capacity
 particulars in compliance of Para 4C of Part II of Schedule VI to tho
 Companies Act, 1956 pending approval for the company's application
 seeking exemption from disclosure of such particulars.
 
                                             1999-2000           1998-99
                                      Rs. in thousands  Rs. in thousands
 
 16) Estimated amount of Contracts
     remaining to be executed on
     capital accounts not provided for      196657.28          301352.95
 
 17) Contingent Liabilities not provided
     for
 
     a) Guarantees given by the company
        on behalf of
 
     i)  Subsidiary Company                  82500.00          104500.00
 
    ii)  Others                             342431.00          524599.00
 
     b) Disputed Income lax Demand
        contested in appeals not
        provided for                          4093.00            4093.00
 
 c) Liability to banks on Letters of Credit
    (secured by first charge on plant and
    machinery and other fixed assets other
    than those specifically charged to
    other banks and first charge on
    paripassu basis with other banks on
    current assets covered by LCs)
 
     (includes Rs 40000 thousands
      guaranteed by a Director)
 
 d) Liability to banks on Letters of         39526.00           39832.56
    Guarantees (including guarantee
    given for deferred credit liability
    towards acquisition of plant & machinery)
 
 e) Claims filed against the company not
    acknowledged as debts.                    4574.00              --
 
 18) a. Sundry Creditors include
 
     - Commission due to Managing Director    2422.07            2422.07
 
     - Salary due to Managing Director         486.00              --
 
     - Due to Directors                          8.50               1 00
 
     - Due to Small Scale Undertakings        3480.44            3095.00
 
     Names of small scale undertakings
     to whom Company owes sum exceeding
     Rs 1.00 lakh which is outstanding
     for more than 30 days
 
     - Ampol Pvt Ltd
 
     - Bansal Metalic Oxides
 
     - Unique Systems & Radials Pvt Ltd
 
     - Elgi Rubber Products Ltd
 
     - Balaji Rubber Industries (P) Ltd
 
     - Kadwani Chemicals
 
     - Suyash Industries
 
 b) Loans and Advances include Rs. 53430 thousands (Previous year Rs.
 12083 thousands) due from a subsidiary company.
 
 c) Sundry debtors include Rs 9712.87 thousands (Previous year Rs
 4213.00 thousands) due from a subsidiary company.
 
 19) Auditors' Remuneration including Branch Auditors
 
 i)   Statutory Audit                            275.00           162.50
 
 ii)  Tax Audit                                   75.00            25.75
 
 iii) Certification                               30.00            25.00
 
 iv)  Expenses                                     --              34.77
 
 v)   Tax Matters                                 70.00              --
 
 20) Details of Managerial Remuneration
     (Managing Director)
 
     Salaries and Allowances                    1360.00           960.00
     
     Commission on net profits                     --            2500.00
 
     Contribution to Funds                       210.00           162.00
 
     Perquisites                                  24.00            62.00
 
                                                1594.00          3684.00