1.  No provision has been made in accounts towards probable liability
 upto Jute year ended 30th June, 1998, if any, that may arise as a
 result of non-compliance with the requirements of Jute Packaging
 Materials (Compulsory Use of Packaging Commodities) Act,1987,
 consequent to differring decisions of different courts and also the
 representations of industry before the Government, since the same is
 not ascertainable at this stage.
 
 2.  Fixed Assets : Lands includes Rs. 4,62,475/- being the value of
 Land measuring 14.23 Acres of Magazine Land at Macherla assigned and
 notifi ed in Revenue records vide Dist. Collector, Guntur order No. Rc
 No. 3567/2000-E1, dt. 23.10.2002 in favour of company.
 
 3.  Cash and Bank balances include
 
 a). Rs.1,50,000/- (Rs.1,50,000/-) on account of Staff Security Deposit.
 
 b). Rs.1,33,43,083 /- (Rs.1,14,36,780/-) towards Unclaimed Dividends.
 
 c). Rs.6,09,88,031 /- (Rs.9,40,02,895/-) representing Fixed Deposit
 Receipts lodged with Bankers as securities against Guarantees issued by
 them.
 
 d). Rs.5,46,00,000/- (Rs.2,30,06,320/-) deposited as per provisions of
 58A of the Companies Act 1956 and the Rules made there under.
 
 Note: (a) Sale of Products includes:
 
 (1) Machinery and components valued at Rs.8,42,00,750/-
 (Rs.9,14,97,995/- ) supplied by Engineering Unit to the other units of
 the Company.
 
 (2) Cement Quantity 7,537MT (22,015 MT) valued at Rs.1,65,94,191/-
 (Rs.4,19,42,013/-) used internally.
 
 (3) Excise Duty Rs.45,42,60,466 /-(Rs.39,63,63,125/-) and Service Tax
 Rs.14,93,502 /- (Rs.16,38,348/-).
 
 (4) Electrical energy 14,61,060KWH (14,86,032 KWH) valued at Rs.
 52,14,369/- (Rs.47,56,219/-) adjusted towards wheeling and banking
 charges, by the buyer Electricity Company.
 
 (b) Sale of products does not include:
 
 (i) Elecrical Energy generated by Hydel unit 3,14,53,799 KWH
 (3,54,74,979 KWH) valued at Rs.  9,25,53,714/- (Rs.9,61,11,615/-), Wind
 Power Unit situated at Thirunelveli (Uthumalai village), 74,96,557 KWH
 [81,17,120 KWH) valued at Rs.3,13,75,931 /- [Rs. 3,07,52,081/-] and
 Power generated from Waste Heat Recovery Plant 1,60,03,400
 KWH[1,32,89,600 KWH] valued at Rs4,60,55,413/- [Rs. 3,58,81,920/-] used
 internally.
 
 (ii) 28,507 tons of clinker valued at Rs. 5,64,54,217/- produced at
 Muktyala Cement Plant and consumed at Macherla Cement Plant internally.
 
 Note: (1) Commission provided to the Managing Director and Joint
 Managing Director represents the balance amount of aggregate
 remuneration payable to them not exceeding 2.5% each, on the Profits
 computed above, in accordance with the terms of their appointments.
 Commission provided to the Executive Director and Technical Director
 represents the balance amount of aggregate remunertion payable to them
 not exceeding 1% each upto 24th January 2011 and from thereon at the
 rate of 1.5% each, on the Profits computed above, in accordance with
 the terms of their appointments.
 
 (2) The cost to the company of the non-monetary perquisites allowed
 during the year to the Whole Time Directors in addition to the
 remuneration paid above works out to Rs. 70,519/-. The value of the
 said perquisite computed in accordance with Income Tax Rules 1962
 ,works out to Rs.7,89,502 /-.
 
 4 . a). The Company has a 40% interest in its joint venture entity
 Fives Cail KCP Ltd a company incorporated in India.
 
 b). The Companys share (at 40%) of the contingent liablities of Fives
 Cail KCP Ltd at the Balance Sheet date works out to Rs. 29,32,993/-
 (Rs.94,54,117/-)
 
 c). The Companys share (at 40%) of the capital commitments of Fives
 Cail KCP Ltd at the Balance Sheet date works out to Rs. Nil/-
 (Rs.9,20,072/-)
 
 d). The Interest of the Company (at 40%) in the aggregate amount of the
 assets, income and expenses of Fives Cail KCP Ltd was as follows:
 
 5.  Paise have been rounded off.
 
 Figures in brackets indicate those for the previous year.
 Figures for the previous year have been regrouped, wherever necessary.