1.  SECURED LOAN
 
 a. All the fixed assets of the Company excluding the fixed and current
 assets of Wind Mills Division are charged to Banks who are providing
 working capital of the company.
 
 2.  UNSECURED LOAN
 
 The unsecured loans are interest free
 
 3.  The Company has filed a writ through the Association of SEZ Owners
 and Units, Chennai challenging the applicability of retrospective
 amendment to the Income Tax Act levying Minimum Alternate Tax on
 Profits earned by SEZ units. The writ has been admitted by the High
 court of Madras and decision is awaited. Hence, the company has not
 provided for Minimum Alternate Tax on SEZ profits.
 
 * This relates to Steel division of erstwhile company since amalgamated
 with your company.
 
 Note 4:
 
 Confirmation of Balance for Sundry Debtors & Sundry Creditors were
 obtained except for a few. However Advances are subject to
 confirmation.
 
 Note 5:
 
 Previous year''s figures have been regrouped / recast wherever
 necessary Note 29:
 
 Figures have been rounded off to the nearest rupee
 
 1.  The above Cash Flow statement has been prepared under the ''indirect
 method'' specified in Accounting Standard AS-3 on ''Cash Flow Statements
 issued by ICAI.
 
 2.  Previous year''s figures have been regrouped / recast wherever
 necessary.
 
 3.  Figures have been rounded off to the nearest rupee.