1. Contingent Liabilities not provided for : Nil
 
 2. The production, consumption and stock of Inventories are as valued,
 verified and certified by the Management being a technical matter.
 
 3. In the opinion of the Management Current Asses, Loans and Advances,
 have a value on realisation in the ordinary course of business equal to
 the amount at which they are stated in the Statement of Accounts.
 
 4. Figures wherever shown in brackets are for previous year.
 
 5. SHARE CAPITAL
 
 Out of the Paid-up Equity Capital of the company 33158 (33158) Equity
 shares of Rs. 10/- of each were fully paid up shares for consideration
 other than in cash.
 
 6. SECURED LOANS
 
 i) DEBENTURES
 
 150000 14% Secured Redeemable Non-Convertible portion of Debentures of
 Rs. 78/- each privately placed equally with Unit Trust of India and
 Canbank Investment Management Services Ltd. and 100000 14% Secured
 Redeemable Non-convertible Debentures of Rs. 100/- each, privately
 placed with Canbank Investment Management Services Ltd., are neither
 redeemed on maturity nor security created pending reference of the
 company to BIFR.
 
 ii) BANKS FOR WORKING CAPITAL
 
 Secured by hypothecation of inventories, book debts are guaranteed by
 directors of the company.  Rs .193 (Rs. 193) being margins retained has
 been reduced from secured loans from banks.
 
 iii) GUJARAT INDUSTRIAL INVESTMENTS CORPORATION LTD. (GIIC LTD.)
 
 Term Loan of Rs.7250 (7250) disbursed by Gujarat Industrial Investment
 Corporation Ltd. Ahmedabad under the Equipment Finance Scheme is
 secured by hypothecation of the equipment including all accessories,
 spares, tools, plant and machinery, acquired/to be acquired under the
 scheme and guaranteed by two directors of the company.
 
 iv) HIRE PURCHASE FINANCE :
 
 From GSFC is Secured by hypothecation of equipment financed and
 personally guaranteed by directors of the company.
 
 7. INVESTMENTS
 
 Investments include Rs. 3000 (3000) in companies in which the directors
 are interested.
 
 8. CURRENT ASSETS, LOANS AND ADVANCES
 
 i) Inventories are valued, verified and certified by the management.
 
 ii) The valuation of the inventories is done as under :
 
 (i)   Raw and Packing Materials            At Cost
 
 (ii)  Stores and Spares                    At Costs
 
 (iii) Finished Goods                       At lower of the cost or
                                            net realisable value.
 
 Costs is arrived at by direct cost method including appropriate
 percentage of fixed costs.
 
 No provision or quantification for Excise Duty on finished goods lying
 at factories, pending clearance is made.  Such non-provision has no
 effect on the loss for the year.
 
 During the year finished goods valued at Rs. 617 (8865) have been
 written off due to shortages deterioration and time expiry as per
 certification by the management and the same has been included in the
 stock.
 
 B. SUNDRY DEBTORS
 
 i) The Sundry Debtors are net of security deposit. An amount of Rs.
 12157 (11958) has been written off being unrecoverable.
 
 C. LOANS AND ADVANCES
 
 i) Loans and Advances include Rs. 5499 (5471), due form Sumex Heroflon
 Ltd.
 
 9. CURRENT LIABILITIES AND PROVISIONS
 
 i) No provision for Taxation has ben made in view of loss during the
 year.
 
 ii) A sum of Rs. 18936 (21611) received by way of Bills discounted with
 NBFC's has been included in Creditors.
 
 iii) No provision for interest has been made on overdue Creditors and
 liabilities pending settlement.
 
 10. Interest includes interest on Term Loans, Hire Purchase and
 Debentures of Rs. 6413 (Rs. 3375).
 
 11. Preliminary expenses, Public and Right Issue expenses written off
 Rs. 168 (Rs. 200).
 
 12. Payments against supplies for SSI and ancilliary undertakings
 cannot be ascertained in the absence of detailed information.