1.  CONTINGENT LIABILITY
 
 Claims against the company not acknowledged as debts Nil 5,28,000
 
 2.  TAXES ON INCOME
 
 The impact of deferred tax on income for the year is considered not
 material and hence not recognised.
 
 3.  EMPLOYEE BENEFITS
 
 i) Defined Benefit Plans
 
 a) Description of the Company''s defined benefit plan :
 
 i) Gratuity Scheme
 
 This is a funded defined benefit plan for qualifying employees for
 which, the Company makes contribution to the Gratuity Fund managed by
 the Life Insurance Corporation of India. The Scheme provides for a
 lumpsum payment to vested employees at retirement, death while in
 employment or on termination of employment. Vesting occurs upon
 completion of five years of service.
 
 ii) Leave Encashment
 
 The company also operates a non funded leave encahsment scheme for its
 employees.
 
 ii) Defined Contribution Plans:
 
 The Company makes contribution towards employees'' provident fund,
 family pension fund, super annuation fund and employees'' state
 insurance scheme.  Under the rules of these schemes, the Company is
 required to contribute a specified percentage of payroll costs. The
 Company during the year recognised Rs. 40,60,462/- as expense towards
 contributions to these plans.
 
 4.  RELATED PARTY TRANSACTIONS
 
 Following associate companies are related to the Company on account of
 common control through Constitution of Board / Shareholdings
 
 - A. V. Thomas & Company Ltd.  - Midland Latex Products Ltd.
 
 - A. V. Thomas International   - Sermatech Private Ltd.
   Ltd.
 
 - L. J. International Ltd.     - Midland Corporate Advisory Services 
                                  Pvt. Ltd.
            
 - A. V. Thomas Investments     (Formerly ST Holding Private Ltd.      
 Company Ltd.  
 
 - The Midland Rubber & Produce - AVT Natural Pte Ltd.
 Co. Ltd.
 
 - The Nelliampathy Tea &       - Heilongjiang AVT Bio-Products Ltd.
 Produce Co. Ltd.
 
 - A V T Natural Products Ltd.  - (Formerly Tonghe AVT Natural Ltd.)
 
 - Ajit Thomas Holdings Private - AVT Gavia Foods Private Ltd.
 
 - A. V. Thomas Exports Ltd.    - J. Thomas Educational & Benevolent 
   Limited                        Trust
 
 - AVT McCormick Ingredients    - Midland Natural Pte. Ltd.
 
 - Teleflex Medical Private     - Midland Charitable Trust
   Ltd.
 
 - A. V. Thomas Leather and     - AVT Infotech
   Allied Products Pvt.Ltd.       Private Ltd.
 
 Key Managment Personnel:         Mr. Ajit Thomas, Chairman
                                  Mr. S. Rajasekar, Director
 
 5. Previous Year''s figures have been re-grouped wherever necessary