1. CONTINGENT LIABILITIES :
 
 a] Income Tax/Sales Tax demands against which the Company has preferred
 appeals amount to Rs. 739.91 Lacs (Previous Year Rs. 72.43 Lacs).
 
 b] Guarantees given on behalf of companies Rs 3610 Lacs (Previous Year
 Rs. 2,360 Lacs.)
 
 2. Nine creditors and lenders of the Company have individually field
 winding up petitions against the Company in the Hon'ble High Court of
 Calcutta for non-payment of dues.  The Company has already filed
 affidavits in respect of all such cases.  In respect of the eight
 cases, the Hon'ble High Court has drawn up a schedule of repayment of
 dues of the creditors and lenders.
 
 3. Considering the strategic investments, that the Company has made, in
 the equity shares of DCL Polyester Ltd. aggregating to Rs 270.00 lacs
 is long term in nature.  The Management is of the view that the market
 rates quoted do not reflect the true reasonable value of the
 investment.  The Management is therefore of the opinion that the
 diminution in value, if any, is not determinate.
 
 4. Addition to the fixed assets includes Rs. 13.64 lacs on account of
 exchange difference during the year.
 
 5. Export sales includes Rs. 773.48 Lacs (Previous Year Rs. 1692.98
 Lacs) on account of gain on exchange variation and purchases includes
 exchange variation on imports purchases of Rs. 18.90 Lacs arising
 during the year.
 
 6. The Company at its Annual General Meeting of members held on 31st
 July, 1998 declared a dividend of 10% on the Equity Share Capital for
 the year ended 31st March, 1998.  Pursuant to a suit filed by a
 Company, the High Court of Judicature at Chennai by its Order dated
 31st July, 1998 restrained the Company from distributing dividends.
 Pending the hearing and final disposal of the suit and in terms of the
 subsisting order of the High Court, the Company has not disbursed
 dividend to its shareholders.  In view of the operation of law, the
 Company has not taken steps pursuant to Section 205A of the Companies
 Act, 1956 for transfer of the said dividend to a Special Dividend
 account in a Scheduled Bank.
 
 7. Confirmation of balances have not been obtained from certain parties
 in respect of Unsecured Loans, Sundry Debtors, Loans and advances -
 Others, Sundry Creditors and in respect of balances with Scheduled
 banks.  Pending confirmation such balances are subject to
 reconciliation and consequential adjustments, if any.
 
 8. i) Loans and Advances :
 
 a) Advances recoverable in cash or in kind Rs 367.25 Lacs (Previous
 Year Rs. 600.26 Lacs) and Loans and Advances - Other includes Rs.
 856.55 Lacs (Previous Year Rs. 633.11 Lacs) which are outstanding for
 periods exceeding one year.  In the opinion of Management, the said
 amounts are good and recoverable and no provision is considered
 necessary in the accounts.
 
 b) Advances recoverable in cash or in kind includes sums aggregating to
 Rs. 4,405.51 (Previous year Rs.3562.55 lacs) being interest debited by
 banks to the account of the Company on outstanding post shipment credit
 facilities availed by the Company not yet liquidated due to failure of
 the export customers to settle the outstanding bills of the Company.
 The balances due have been confirmed by the said export customers.  A
 schedule of repayment, duly approved by the Board of Directors at their
 meeting on 29th May, 1998 was drawn up and agreed to by customers in
 terms of which the amounts were to be repaid over a period of 12 months
 commencing from January, 1999.  However, the export customers have not
 paid any amount till date.  In the opinion of the Management, the dues
 are good and recoverable and no provision is considered necessary in
 the accounts.
 
 ii) Sundry Debtors includes Rs. 17,861.07 lacs on account of export
 bills outstanding for periods exceeding one year which are duly
 confirmed by the parties concerned including an amount of Rs. 682.26
 lacs on account of exchange variation on reclassification of foreign
 currency balances outstanding as at the balance sheet date.  The
 Company had obtained approval from the Reserve Bank of India for
 extension of time till 30th May, 2000 for recovery of the said debts.
 The Company has made an application to the Reserve Bank of India for
 further extension of time till 30th September, 2000 for recovering of
 the said amounts.  In the opinion of the Management, the dues are good
 and recoverable and no provision is considered necessary in the the
 amounts.
 
 9. During the year coming has made/rejected certain on account payments
 to/from various parties/companies on account of exigencies of the
 business.  Under such circumstances the documentation in all such cases
 would not have been maintained.
 
 The Company is in the process of substantiating such debits and credits
 and is confident to do so in the current year.
 
 10. The Company has given Guarantees to the extent of Rs. 950.00 Lacs
 during the year.  The Company has been legally advised that Provisions
 of Section 372A of the Companies Act, 1956 are not applicable to the
 Company.
 
 11. The Company does not have nay outstanding dues for more than Rs.
 1.00 lac for a period exceeding 30 days to small scale industrial
 undertakings.
 
 12. The value of land amounting to Rs.2550.66 lacs, included in the
 fixed assets schedule has been hypothecated as a collateral security
 with Global Trust Bank Ltd. for the term loan facility availed by
 another company.
 
 13. (i) The Company had availed of unsecured loans and admitted
 Acceptances (disclosed under Current Liabilities) during previous
 years at agreed rates of interest, for specified periods.  The Company
 is renegotiating its liability to repay the is not determinable, hence
 no provision is made in the accounts.
 
 ii) In other cases of acceptances, disclosed under Current Liabilities
 there are no confirmations from the parties as to the terms of
 repayment of Principal and payment of interest, if any.
 
 14. Remuneration to Wholetime Directors : (Rs. in Lacs)
 
                                         Current Year     Previous year
 
 a) Salary                                  18.00             29.20
 
 b) Provident Fund                           1.62              2.16
 
 c) Gratuity                                 2.60              2.31
 
 d) Other Benefits                           0.00              0.00
 
                                            22.22             33.67
 
 15. Remuneration to Auditors :
                                                   (Rs. in Lacs)
 
                                          Current Year     Previous Year
 
 a) Audit Fees                               5.04               4.73
 
 b) Tax Audit Fees                           1.57               1.57
 
 c) Consultation Fees                        1.20               1.00
 
 d) Certification Charges                    1.42               0.30
 
                                             8.23               7.60
 
 16. The Company has 1 (one) non-resident share holder during the year
 (Previous year - one)
 
 17. Prior year Adjustment account represents Service Tax on Audit fees
 of Rs. 3,750.00 & short provision of depreciation of Rs 2,43,425.00
 short provision for tax and Rs. 40,53,256/- on account of provision for
 Agency commission no longer required written back excess provision of
 Tax on dividend of Rs.63,092/- written back.
 
 18. The expenses pertaining to gold project upto the date of
 commissioning of the project i.e. 26th March, 2000, as certified by the
 management are taken as pre-operative expenses.
 
 19. Previous years figures have been regrouped and reclassified
 wherever necessary.