1. Medium Term Loan : Secured as first charge by way of hypothecation
 and charge to the Bank, the entire fixed assets of the Company.
 
 2. Export Packing Credit: Secured as first charges by way of
 hypothecation of all stocks of leather, raw, semi-finished, finished
 shoes and other leather articles for exports.
 
 3. Loan(s) are secured by specific charge on the assets under the
 scheme. The amount also includes unmatured financial charges.
 
 
 
 4. Depreciation rate has been changed with effect from December 1993.
 However the new rates have been taken for all the assets as per the
 Guidance Note of the Institute of Chartered Accountants of India. In
 respect of 14 cents of land for which the document has not been
 received pending settlement of Rs. 50,000/- (approx.) demand from
 Registrar against which the company has obtained a stay order from
 the High Court at Madras.
 
 5. Work-in-Progress : Being technical matter, the auditors continue
 to place reliance on the certification of the Technical Expert in
 respect of quantity and values at different stages of WIP of the
 manufacturing activity of the company. Consequent to the above,
 valuation of physically ascertained period and inventories of
 finished goods, raw materials, stores etc would also be as certified
 by the management.
 
 6. The case (CLB) under Sec. 397 * 398 by Peter Huber was disposed
 of in favour of the company on 17.01.96.
 
 7. Balance of Sundry Debtors and Sundry Creditors, Loans advances
 are under confirmation.
 
 8. Prior period adjustments are included in respective heads of
 accounts wherever necessary and disclosure is made in cases where
 amounts are material.