1. In computing the taxable income and provision for taxation as
 legally advised, interest on borrowings for capital expenditure has
 been treated as deductible expenditure.
 
 2. Pursuant to the scheme of arrangement between Roofit Industries Ltd.
 and Sun Earth Ceramics Ltd. as approved by the Bombay High Court in
 1999-2000, the Company has allotted 1,00,000 Zero Coupon fully
 convertible Bonds of Rs. 150 each as part consideration for transfer of
 Pipe Division of Sun Earth Ceramics Ltd. to the Company. Further last
 year Rs. 50 portion of the Bonds was converted into equity share of Rs.
 10 each at a premium of Rs. 40 per share. During the current year,
 2,00,000 equity shares have been alloted to M/s Sun Earth Ceramics Ltd.
 on conversion of the remaining Rs. 100 portion of the Bond into equity
 shares of Rs. 10 each at a premium of Rs. 40 per share.
 
 3. Goods in which not less than 25 over cent by weight of fly ash has
 been used are exempted from levy of excise duty.
 
 4. Excise duty payable on goods lying in factory premised aggregating
 to Rs. 12.65 lacs (Previous year Rs. 6.94 lacs) and customs duty
 payable on goods lying in bonded warehouse aggregating to Rs. 140.62
 lacs (Previous year Rs. 87.28 lacs) have been provided and included in
 valuation of inventory. However, there is no effect on profit for the
 year or Reserves as at 30 June, 2001.
 
 5. Previous years figures have been regrouped/rearranged/restated
 wherever necessary to confirm with the current year's presentation.