SHARE CAPITAL
 
 I.  (i) 1,00,000 18% Preference Shares of Rs. 100/- each were
 redeemable at par on 14th March, 1998 but not yet redeemed.
 
 (ii) 1,00,000 18% Preference Shares of Rs. 100/- each were redeemable
 at par on 14th March, 1999 but not yet redeemed.
 
 (iii) 1,00,000 18% Preference Shares of Rs. 100/- each were redeemable
 at par on 14th March, 2000 but not yet redeemed.
 
 (iv) *2700 shares are held in abayance ( Previous period 3300). Out of
 3300 equity shares, 600 equity shares of Rs. 10/- each fully called up
 (paidup Rs. 5/- per share) have been allotted at a premium of Rs. 15/-
 per share.
 
 II.  98,76,651 Equity Shares of Rs. 10/- each fully paid-up [Previous
 period 98,76,351 equity shares of Rs. 10/- each fully paid up] have
 been allotted as Bonus Shares by way of capitalisation of share premium
 account in the ratio of one share for every two shares held.
 
 III.  2,00,00,000 equity shares of Rs. 10/- each fully paid-up have
 been allotted at par on preferencial basis.
 
 
 SECURED LOANS
 
 1. The Company has reached a negotiated settlement with all the
 consortium Banks viz. Punjab National Bank (the lead bank), Bank of
 Rajasthan, ABN AMRO Bank, Vysya Bank, Bank of India and The Times Bank
 Limited for all their dues by payment of a lump sum amount in a phased
 manner. The dues of Times Bank and Vysya Bank have since been cleared
 off. The settlement amount of remaining Banks are secured by equitable
 mortgage of Land and Building and hypothication of Plant and Machinery,
 present & future, situated and installed at Company's factory at S-34,
 Uptron Industrial Area, Site-IV, Sahibabad Industrial Area, Ghaziabad
 (UP), Plot No. 105 and 231, Baddi Industrial Estate, Baddi (Himachal
 Pradesh), Plot No. 140/1 and 140/2, Silvassa Industrial Area, Dadra &
 Nagar Haveli and also secured by second charge on Fixed Assets of the
 company at 58/4 Site-IV, Sahibabad (excluding those specially charged
 to IDBI) and charges reffered above are ranking pari passu.  These are
 further secured by hypothecation of stock of raw material , finished
 goods, work in process, consumable stores and book debts. The loans are
 further guaranteed by Promoter Directors of the Company.
 
 2. The Loan of IFCI is secured by exclusive mortgage of immovable and
 movable assets both present and future of CD/DVD plant at 46/5 Site-IV,
 Sahibabad Industrial Area Distt. Gaziabad (UP) and exclusive charge on
 the additional fixed assets of the PET division (Covered under proposed
 expansion scheme to be installed at Silvassa). The loan is additionally
 secured by the personal guarantee of Shri Vivek Nagpal, Smt. Padma
 Nagpal and Smt. Aarti Nagpal.
 
 3. Term Loan of Rs. 58.31 Lacs from Pradeshiya Industrial & Investment
 Corporation of UP Ltd. (PICUP) is secured by equitable mortgage
 covering the entire fixed assets of the Company, acquired and proposed
 to be acquired, including movable machinery, spares, tools and
 accessories for its factory at 58/4, Sahibabad Industrial Area,
 Ghaziabad (UP) and such other Assets and as may be acquired during the
 currency of loan and further guaranteed by Promoter Directors of the
 Company. Term Loan of Rs. 150 Lacs from Pradeshiya Industrial &
 Investment Corporation of UP Ltd. (PICUP) is secured by way of
 hypothecation of the assets acquired under the scheme of Term Loan.
 
 4. The company has settled with IDBI all its dues by payment of a lump
 sum amount in a phased manner. The settlement amount is secured by way
 of hypothecation of equipment to IDBI and further guaranteed by
 Promoter Director of the company.
 
 5. Deffered payment credit is secured by charge on the Fixed Assets
 acquired against them.
 
 OTHER NOTES
 
 1.  CONTINGENT LIABILITIES
 
                                             30.06.2000     31.12.1998
                                                          (Rs. in Lacs)
 
 i) Unexpired letters of Credit                   96.05            NIL
 
 ii) Bank Guarantee                                 NIL         289.02
 
 iii) Bill Discounting - Bank                       NIL        2324.37
 
 iv) Demand Raised by Excise Authority           769.91         769.91
 but not admitted by the company
 
 v) HP/Lease party under settlement proposal      50.00            NIL
 
 2. DEBENTURE
 
 8,50,000, 16.5% Non-Convertible Debenture of Rs. 100/- each fully
 paid-up are redeemable at par in three equal installments commencing
 from the expiry of third year from the date of allotment i.e.
 13.05.1999. These debentures are secured by equitable mortgage of all
 the immovable properties of the company, wherever situated (both
 present and future) and also further secured by first charge by way of
 hypothecation of all movable properties of the company, both present
 and future, subject to prior charges in favour of the bankers for the
 working capital requirements. The loan is further secured by personal
 guarantee of Shri Vivek Nagpal.
 
 3. Balances standing to the debit & credit of debtors, creditors, loans
 and advances and other parties are subject to confirmation from them.
 
 4. In the opinion of the Board the value on realisation of Current
 Assets, Loans and Advances in the ordinary course of business shall not
 be less than the amount at which they are stated in the Balance Sheet
 and provision for all known liabilities have been made and contingent
 liabilities disclosed properly.
 
 5. The registration of leasehold land at 46/5, Sahibabad, U.P. For Rs.
 33,94,283.40 and Land at Baddi Industrial, Baddi (Himachal Pradesh) for
 Rs.30,14,595.00 are pending endorsement in the name of the company.
 
 6.  i) All direct and indirect expenditure, including cost finance,
 incidental to the projects under construction implementation are
 accumulated and shown under the head Capital Work in Progress and
 preoperative expenditure (pending allocation) until the commencement
 of commercial production.
 
 ii) The pre-operative expenditure on projects completed during the
 period, other than directly allocable expen- diture, incurred up to the
 date of commencement of commercial production are allocated to the
 Building and Plant & Machinery in the ratio of direct cost of the
 related assets.
 
 iii) At unit 46/5 Sahibabad, UP, the commercial production of DVD
 Plant commenced on 01.12.1999 and that of CD Cutting Machine commenced
 on 16.06.2000. The pre-operative and trial run production expenditure,
 other than directly allocable expenditure, incurred upto 30.11.99 and
 16.06.2000 respectively have been allocated to the Plant & Machinery
 only.
 
 7. Estimated amount of contracts remaining to be executed on capital
 accounts and not provided for as on 30.06.2000 is Rs. 220.66 lacs.
 However some of such contracts could not be determined as the
 agreements with the parties were not yet finalised.
 
 8. Rs. 393.00 lacs lying to the debit of Prior Period Adjustment
 Account is net of Prior Period Income and Prior Period Expenses.
 
 9. No interest has been booked on loans from banks/financial
 institutions (With whom settlement has been done) from 01.01.1999 till
 the date of settlement.
 
 10. The Company is in the process of identifying the suppliers who are
 covered under The Interest on Delayed Payment to Small Scale and
 Ancillary Industrial Undertaking Act, 1933. Consequently the liability
 under the said Act on account of such interest is not ascertained as on
 30th June 2000, however no claim has been received for interest from
 suppliers with reference to above Act.
 
 11. The company has settled dues with Bank of India after 30.06.2000
 but before finalisation of accounts. The settlement amount have been
 given effect on 30.06.2000 by Rs. 53.60 lacs.
 
 12. In case of ICD's/HP/Lease where legal proceedings have been
 instituted, provision for interest has not been made after the date of
 filing of suit for recovery.
 
 13. The name of the Company PADMINI POLYMERS LIMITED has been changed
 to PADMINI TECHNOLOGIES LIMITED effecting from 12.06.2000.
 
 14. Previous period figures have been rearranged/regrouped wherever
 necessary.
 
 15. The current period figures are for a period of 18 (Eighteen) months
 ended on 30th June' 2000.