1. Figures have been rounded off to the nearest thousand rupees and
 have been regrouped/recast wherever necessary.
 
 2. As certified by the Managing Director, Closing Stock of Inventories
 as on 31/12/2001 is physically verified by the Company and is valued at
 cost or net realisable value whichever is lower.
 
 3. Sundry Debtors, Loans & Advances, Sundry Creditors and Other
 Liabilities are subject to confirmation from the concerned parties.
 
 4. Cash on hand, imprest Accounts with employees and Stamps on hand are
 as certified by the Managing Director of the Company.
 
 5. No Payments to/Provisions were made for remuneration to Directors
 including Managing Director:
 
 6. Establishment Expenses include Payments to/Provisions for Auditors
 Remuneration as follows:
 
                                         For the Year       For the Year
                                     Ended 31/12/2001   Ended 31/12/2000
                                       (Rs. in Lakhs)     (Rs. in Lakhs)
 
 Statutory Audit Fees                            0.35               0.35
 
 Taxation Matters                                   -                  -
 
 Tax Audit Fees                                  0.15               0.15
 
 Certification                                   0.01               0.01
 
 Out of Pocket Expenses                             -                  -
 
                                                 0.51               0.51
 
 7. Estimated amounts of contracts remaining to be executed on Capital
 Account and not provided for as certified by the Managing Director Rs.
 Nil (Previous Year Rs. Nil.)
 
 8. Contingent Liabilities: Relating to Letters of Credit Rs. NIL
 (Previous Year Rs. NIL) Bank Guarantee Rs. NIL (Previous Year Rs. NIL)
 and Bills Discounted Rs. NIL (Previous Year Nil).
 
 9. Interest on working capital facilities availed from banks for the
 period 01.01.01 to 31-12-01 has not been provided in view of procedings
 pending with BIFR.
 
 10. Export benefit receivable for Rs. 139.60 Lakhs have been written
 off in cost of material, since the same are not recoverable.
 
 11. There is a disputed Income-tax liability of Rs. 245.07 lakhs
 (Previous Year Rs. 245.07 lakhs), disputed Sales-tax liability of Rs.
 8.50 lakhs (Previous Year Rs. 8.50 lakhs). As these are disputed by the
 Company, the management has not made any provision in the accounts. In
 the case of Export Obligation, there was a contingent liability of Rs.
 517 lakhs which has been crystallised at Rs. 230 lakhs and necessary
 provision has been made in the account.
 
 12. Foreign Currency Income & Expenditure:
 
 INCOME: F. O. B. value of Exports                 193.30       471.53
 
 Expenditure: C. I. F. Value of imports                 -            -
 
 Foreign Travel                                         -         1.97
 
 Export Promotion                                       -         4.36