Secured Loan
 
 1 Debentures Transferable notes & Term loans from financial Institution
 are secured by way of parri Passu first mortgage/charge with ICICI as
 trustees for debenture holders/Subscribers to the Transferable Note's
 and willi financial institutions for their term loans on the immovable
 and / or movable properties of the Company, present & future subject to
 prior charge's in favour of the company's hankers on inventories and
 book debts for working capital facilities and prior mortgage in favour
 of HDFC on specific land & buildings thereon for their term loans,
 prior mortgage of all immovable properties & first charge by way of
 hypothecation of all movable properties pertaining to the Wind Farm
 Projects financed by IREDA, in their favour for (heir term loans and
 exclusive charge by way of hypothecation in favour of IDBI ICICI and
 IL&FS on specific items of machineries purchased out of their financial
 assistance.
 
 2 ICICI Ltd has been appointed as trustees for the Debentures holders
 of Series B,C,D,E,C,H,I & k in whose favour necessary security has been
 created: Western India trustee and Executors Company Ltd has also been
 inducted as joint Debenture trustees,for Series G,H & I aggregating
 Rs.35 Crores. Later ICICI Ltd resigned their (rt/steeship and Western
 india trustee and Executors company Ltd has become the trustees for the
 G, I f & Series. UTI Bank Ltd has been appointed as trustees for
 Debentures - K Series of Rs. 10 Crores.
 
 3 Cash Credit 1& Working Capital Demand loans from banks are secured by
 hypothecation of inventories & Book debts as well as a second charge-
 on the fixed assets of the company, except fixed assets under exclusive
 charge in favour of Financial Institutions in respect of their term
 loans, and by way of hypothecation of movable machineries.  ' .
 
 4 In terms of the sanction of Working Capital Term Loan from banks, the
 loan is to be secured by way of Parri Passu First Charge on fixed
 assets of the Company along with ICICI and other Financial
 Institutions, However creation of charge is pending.
 
 5 Term loans from HDFC are secured by first mortgage on specific land
 and buildings thereon.  Term loans from tOBI, ICICI and IL&FS FS arc
 secured by exclusive charge by way hypothecation of specific items of
 machinery purchased out of their financial assistance.
 
 6 Term loans from IREDA arc .secured by first mortgage of all immovable
 properties and first charge by way of hypothecation of all movable
 properties [pertaining to the wind farm projects financed out of the
 said loans
 
 7 Hire purchase loans are secured by hypothecation of respective
 assets.
 
 Other notes
 
                                               31-3-2003     31-3-2002
                                               RS. LAKHS     RS. LAKHS
 
 1.   Excise Duty payable on Finished Goods 
 and Waste & By Products amounting to
 Rs 6.55 Lakhs are included in the value 
 of closing slock after creating suitable 
 provision for the liability. However 
 this does not have any effect 
 on the loss for the period.
 
 2 Estimated amount of contracts outstanding 
 on Capital Account not provided for            2543.46        2543.46
 
 3  a)   Letters of Credit outstanding             0.00           0.00
 
 4 No provision has been made on Dividend 
 Payable on Cumulative Redeemable
 Preference Shares                              3083.31        2123.31
 
 5.  The Names of small scale Industrial Undertaking to whom tho company
 owes sum for more than 30 days arc as follows :
 
 M/s Ennar Products, perfect Products, Filaments & Windings, Sapthagiri
 engg Co, Seva Industry, Anantha Fabricators, Abipra Engg Industries
 Casting & Allied Ind, H.ari Ind, Senthilkumar Plastics Pvt Ltd.
 
 6.   a)   Guarantees given on behalf of 
 the Company by Banks to suppliers
 Financial Institutions and others 
 and Counter Guarantees by the
 Company in favour of Banks                       18.95          18.95
 
 b) Guarantees given to the Housing 
 Development Finance Corporation
 of India Ltd., for sanctioning 
 Housing Loans to Employees of the Company
 under Line of credit Scheme                     415.00         415.00
 
 c)   Guarantees given to Banks/Financial 
 Institutions for sanctioning loans
 to Subsidiary Companies.                        725.00         725.00
 
 d)   Guarantees given to Banks/Financial 
 Institutions for sanctioning loans,
 to Coir Products (India) Limited.                15.00          15.00
 
 7.   Contingent Liabilities not provided:   
 
 a)   Disputed claim for excess reimbursement 
 of loss by Stale Trading Corporation
 of India Ltd under Export Promotion Scheme.      28.47          28.47
 
 b)  Dpmands raised by the Central Excise 
 authorities disputed by the Company
 and for which appeals are pending.              255.72         202.63
 
 c)   Demands raised by PWD Towards 
 Water charges-contested                        1308.75        1085.56
 Lease rent payable beyond 31.3.2003            1163.27        1163.27
 (last Instalment of Lease 
 rental payable is June 2006)
 
 8.   a)  Company's Income-tax assessments 
 have been completed upto the
 assessment for the year ended                31/3/1998      31/3/1998
 
 b) No provision has been made for deferred tax assets as there is no
 virtual certainty that sufficient future taxable income will the
 available against which such deferred tax assets can be realised.
 
 9 The financial results.ason31.03.2003 disclose that accumulated loss
 exceed the networth of the company. Reference under Sick Industrial
 Companies (Special Provispns)Act 1985 (SICA) has been made with the
 Board for Industrial and Financial
 
 10 Reconstruction (BIFR) and is registered under case No. 71/2002.BIFR
 at the hearing hold-on 9.7.2002 has declared the company as a sick
 company under SICA. ICICI has been appointed as Operating Agcncy(OA)
 which will formulate a rehabilitation scheme for revival of the
 Company. Accordingly, the accounts have been prepared on going concern
 basis.
 
 11. Since there was no operation of the factory during the period from
 1.4.2002 to 31.10.2002 and the factory had been temporarily closed from
 19.10.2001,no provision has been made in the books of accounts for
 wages, salary, bonus and gratuity to the workmen and staff
 ofthe'factory for this period. There was a lock-out of the factory from
 1.11.2002 and accordingly, no provision is required to be made for the
 subsequent period except in respect of staff and workmen , exempt from
 the lock-out.
 
 12 Figures for the previous period (6 months) are'hot comparable since
 the current accounting year is for 12 months.
 
 13. Figures for the previous period have been regrouped and
 reclassified wherever necessary to suit the current period's
 classification