SECURED LOANS
 
 1 Term Loans from Bank, Financial Institutions and Redemable
 Non-Convertible Secured Debentures privately placed with Financial
 Institutions are secured by way of first mortgage on all immovable
 properties both present and future and first charge by way
 of hypothecation of all movables (save and except book debt) on
 pari-passu basis subject to prior charges created or to be created In
 favor of Companys Banker on stock of raw material, semi finished
 goods, consumable stores and such other movables for securing working
 capital requirement in the ordinary course of the business and personal
 guarantee of the Directors of the Company.
 
 2 The principal amount of debentures, interest, remuneration of
 trustees and other moneys payable by the Company in respect thereof are
 secured by second and subservient mortgage and charge on the Companys
 project situated at Village-lyawa, Talus Sanand Dist : Ahmedabad. The
 Debentures are Redeemable at par in three equal installments on the
 expire of nth, nth and nth Year from the date of allotment.
 
 3 Working Capital limits from banks are secured against hypothecation
 of stock of raw materials, semi-finished goods, consumables, stores,
 spares, book debts and personal guarantees of Directors of the Company
 and by way of third charge on the fixed assets of the Company.
 
 4 Term loans from Banks to Finance differed debtors are secured by
 first charge by way of hypothecation of the Receivables for goods
 supplied under Differed Payment Scheme of D.O.T. during the year
 1998-99.
 
 OTHER NOTES
 
 1.  Other Accounting Policies :
 
 These are consistent with generally accepted accounting practices.
 
 2.  Contingent Liability not provided for in respect of :-
 
                                                      (Rs. in 000)
                                           2001-02           2000-01
 i) Estimated amount of contracts 
 remaining to be executed on capital
 accounts and not provided for are           20224             20224
 (amount paid in advance on Capital Account)
 
 ii) Guarantees given by Banks              106500             86790
 
 iii) Calls on Partly paid up Shares          1125              1125
 
 3. The company prepared accounts for the period, from 1st July 2001 to
 30th June 2002 for the purpose of compliance of Companies Act, 1956
 as against the`previous year for the Tax purpose, which ends on 31st
 March 2002.  The Company does not have Taxable Income for the previous
 year i.e. (01.04.2001 to 31.03.2002) relevant to the assessment year
 2002-03. The income if any for the period April to June 2002 forming
 part of Annexed Accounts, will be Assessed as a part of the composite
 income relevant to the Assessment year 2003-04 i.e. previous year is
 ending on 31st March 2003. As the result, the taxability, if any, in
 respect of assessable income for the said three months, can not be
 quantified at present and hence, no provision is made.
 
 4.  The Company had issued debenture consisting of convertible and
 non-convertible part in the year 1995. Convertible part was converted
 into equity shares in 1995. The non-convertible part was to be redeemed
 In equal installment in 5th, 6th & 7th year of the allotment thereof.
 All the three installments of the debentures have fallen due for the
 redemption. However due to losses and liquidity crisis same could not
 be redeemed.
 
 5.  Some of the Banks & Financial Institutions have stopped charging
 interest to the Companys accounts with them, However the Company has
 provided the interest on the basis of contractual rates. The balances
 shown in the Company books are subject to confirmation and
 consequential reconciliation, if any at Companys end.
 
 6.  The Company is in process of compiling the data for computation of
 liability for gratuity and leave encashment.  Hence, no provision for
 the gratuity and leave encashment have been made in the accounts.
 
 7.  Sales Tax assessments of the company have been completed up to the
 financial year 2000-01 and no demand has been raised pursuant thereto.
 
 8.  The Company Is primarily engaged in the business of manufacture of
 Telephone Cables. As the basic nature of this activity is governed by
 same set of risks and returns, this has been grouped as single segment
 as per Accounting Standard (AS)-17 dealing with Segment Reporting
 Issued by the Institute of Chartered Accountants of India.
 
 9.  The Company has unabsorbed depreciation & carried forward losses
 under Tax laws. In absence of virtual certainty of sufficient future
 taxable income, net deferred assets have not been recognized by way of
 prudence in accordance with Accounting Standard (AS) 22 - Accounting
 for Taxes on Income issued by the Institute of Chartered Accountants
 of India.
 
 10. Earning per share (EPS), the numerators and denominators used to
 calculate Basic Earnings per share.
 
                                                        (Rs. In `000)
 Particulars                                  30-6-2002     30-6-2001
 
 Net Profit / (Loss) attributable
 to the shareholders                            (149572)     (182390)
 
 Equity shares outstanding during the year   1,71,02,300  1,71,02,300
 
 Nominal value of Equity Shares (Rs.)                 10           10
 
 Basic Diluted Earning per Share (Rs.)            - 8.75      - 10.66
 
 11.  Related Party Disclosures
 
 Sr.  Name of the Related Nature of
 No.  parties                                   relationship
                                                with Company
 
 1 GTCL MOBILE COM                              Associate
      TECHNOLOGY LTD.
 
 2     GUJARAT                                  Associate
       TELEPHONE
       CABLE LTD.
 
 3     RHP CABLES &                             Associate
      INDUSTRIES LTD.
 
 4     S. R. Patel                              Managing Director
 
                                                     (Rs. In`000)
 
 Nature of                     Volume of              Balance at
 transaction with              transactions           the year
 related parties
                                2001-02                30-6-2002
 
 Purchase                       28201                   0
 
 Sales                          26089                   0
 
 Current Account                17256                   0
 
 Sales                           5829                   0
 
 Purchases                     211513                   0
 
 Current Account                                     42603 Cr.
 
 Purchase                      210717                    0
 
 Sales                           2668                    0
 
 Current Account               148901                    0
 
 Remuneration                     713
 
 12. Payment to Auditors
 
                                                   (Rs. In`000)
                                            2001-02        2000-01
 
 1. Audit Fees                                   31          31
 
 2. Tax Audit Fees                               21          21
 
 3. For Certification and Others                 14          11
 
 Total                                           66          63
 
 13. C I F Value of Imports. Expenditure and Earning in Foreign
 Currencies :
                                                   (Rs. In `000)
 (a) CIF Value of Imports :
 -Raw Material                                 17886         8649
 
 (b) Expenditure in Foreign Currency             Nil          Nil
 
 (c) Earning in Foreign Currency                 Nil          Nil
 
 14.  Raw Material Consumed
 
 i) Raw Material Consumption
 
                                                   (Rs. In `000)
                                 2001-02              2000-01
 Item                  Unit     Qty.         Value       Qty.      Value
 
 Optical Fibre          Kms     6008            8185         0     0
 
 Semi-Finished Cables   Ckms    298210        118457      4808      2015
 
 Copper                 Kgs    1152849        134151    571048     86258
 
 MDPE/LDPE              Kgs    1120098         42202    467950     27724
 
 Steel Tape             Kgs     838691         25046    290039      9838
 
 Others                                        62502                8091
 
 Total                          390543                            133925
 
 ii) Imported & Indigenous Raw Material Consumption
 
                                                       (Rs. In `000)
                                     2001-02               2000-01
                                Value     %of Total    Value  %of Total
 (A) Raw-Material
 
 Imported                        9732        2.49        209      0.16
 
 Indigenous                    380811       97.51     133716     99.84
 
 TOTAL                         390543      100.00     133925    100.00
 
 (B) Stores & Spares
 
 Imported                         0         0.00        0       0.00
 
 Indigenous                    1724       100.00     1305     100.00
 
 TOTAL                         1724       100.00     1305     100.00
 
 15 Licensed and Installed Capacity, Production, Stock and Turnover
 
                                         2001-02      2000-01
 
 a) Licensed Capacity                       N.A*       N.A*
 
 b) Installed Capacity
 
 Optical Fibre Cables                     10080 Kms** 10080 Kms**
 
 Jelly Filled Cables                         30 LCKMs** 30 LCKMs**
 
 c) Opening Stock of Finished Goods
 Optical Fibre Cables
 
 Quantity                                     NIL        NIL
 
 Value                                        NIL        NIL
 
 Jelly Filled Cables
 
 Quantity                                     NIL        NIL
 
 Value                                        NIL        NIL
 
 d) Closing Stock of Finished Goods
 
 Optical Fibre Cables
 
 Quantity                                     NIL       NIL
 
 Value                                        NIL        NIL
 
 Jelly Filled Cables
 
 Quantity                                      NIL        NIL
 
 Value                                         NIL        NIL
 
 i) Opening Stock of Trading Goods
 
 Value (Rs. in Lac)                          17.92       17.92
 
 ii) Closing Stock of Trading Goods
 
 Value (Rs. in Lac)                          17.92       17.92
 
 e) Sales
 
                                              (Rs. In` 000)
                                       2001-02          2000-01
 Products                 Quantity       Value     Quantity     Value
 
 Optical Fibre Cables Kms    28651       18709            12      1208
 Jelly Filled Telephones
 
 Cables                Ckms 941320      531009        533080    236353
 
 Misc Sales                               4624                   10213
 
 TOTAL                                  552342                  247774
 
 * Since De-Licensed
 
 ** As certified by the management and relied by the Auditors being a
 technical matter.
 
 16. The Company has been advised that the computation of net profit for
 the purpose of Managing Directors remuneration under Section 349 of
 the Companies Act 1956 need not be enumerated since no commission has
 been paid to the Managing Director. Fixed monthly remuneration has been
 paid to the Managing Director.
 
 17. In absence of information regarding the SSI status of suppliers, we
 are unable to quantify the same.
 
 18. The balance shown in sundry debtors, sundry creditors, loans &
 advances are subject to confirmation by the parties and subsequent
 reconciliation, if any at companys end.
 
 19. Previous years figures are rearranged/regrouped wherever
 necessary.