SHARE CAPITAL
 
 of the above 66,21,138 shares (Previous Year Nil) are held by Inox Air
 Products Ltd, the holding company
 
 SECURED LOANS
 
 1) Cash Credit and Term Loan from Bank are secured by hypothecation of
 raw materials, work in process, finished goods, stores and spares,
 entire plant & machinery and other fixed assets, all present and future
 Book debts and Guaranteed by Inox Air Products Ltd, the holding
 company.
 
 2) Term Loan from ICICI is secured by way of first mortgage and charge
 of all immoveable and moveable properties, both present and future
 (except book debts), including moveable machinery, machinery spares,
 tools and accessiories present and future subject to prior charge
 created in favour of bankers on stocks in trade, plant & machinery,
 other fixed assets and guaranteed by Inox Air Products Ltd, the holding
 company.
 
 OTHER NOTES
 
 1.  Contingent Liabilities
 
 Claims against the Company not acknowledged as debts.   
                                                           Rs. in lacs
                                             Year Ended     Year Ended
                                         March 31, 2001 March 31, 2000
 
 i.  For excise duty being subject 
 matter of appeals                               140.54         138.50
 
 ii.  For other claims                            23.09          16.63
 
 iii.  For cases pending in Labour Courts 
 for reinstatement with back wages           Amount not     Amount not
                                          ascertainable  ascertainable
 
 iv.  Guarantees issued by a bank in 
 favour of Excise Department and others          113.88          34.42
 
 v.  Bills Discounted with Banks                    Nil         102.24
 
 2.  Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for Rs. Nil (Previous Year Rs. 5.91 lacs).
 
 3.  Lease rental charged to the Profit and Loss Account comprise of
 finance cost allocated over the life of the lease on an appropriate
 basis and the element of cost of assets determined by applying
 depreciation rates on straight line method prescribed in Schedule XIV
 to the Companies Act, 1956.
 
 4.  Certain assets had been acquired by the Company on lease financing
 and future obligation towards lease rentals amount to Rs. 32.91 lacs
 (Previous Year Rs. 111.50 lacs ).
 
 5.  Till previous year, Deferred Revenue Expenditure on account of
 additional fee paid on increase in authorised share capital was being
 written off over a period of ten years. In the current year the entire
 unamortised balance of Rs. 3.46 lacs has been charged off to the Profit
 and Loss account.  This change in the basis of accounting has resulted
 in loss of the year being higher by Rs. 2.97 lacs.
 
 6.  During the year Superior Medicare Limited (SML), a subsidiary of
 the Company, has been wound up under section 560 of the Companies Act,
 1956. Consequent to this, the investments of the Company in SML
 aggregating to Rs. 1 lac and loans and advances aggregating to Rs.
 33.34 lacs have been written off during the year against which a
 provision of Rs. 15.75 lacs was held in the accounts.
 
 7.  Majority of the fixed assets of the Company are in the nature of
 buildings and plant & machinery, most of which are embedded in the
 ground and hence do not need to be physically verifred every year.
 However, steps have been taken to carry out physical verification of
 all the fixed assets in the next financial year.
 
 8. There is no taxable income for the year and hence no provision for
 tax has been made in the accounts.
 
 9.  In view of insufficient information from the suppliers regarding
 their status as SSI units, amounts due to small scale industrial
 undertakings as on 31st March, 2001 can not be ascertained.
 
 10. In the opinion of the Board, current assets, loans and advances
 have a value on realisation in the ordinary course of business at least
 equal to the-amount at which these are stated in the account.
 
 11. Balances in parties accounts whether in debit or credit are subject
 to confirmation by the concerned parties.
 
 12. Previous Year figures have been rearranged/regrouped wherever
 necessary to conform to current year's classification.