(1) CONTINGENT LIABILITY NOT PROVIDED FOR
 
                                     AS AT 30.09.2000     AS AT 30.09.89
                                        (Rs. in Lacs)      (Rs. in Lacs)
 
 a) Guarantees issued by Banks                   2.95               4.26
 
 (2) in the Opinion of the Board, all the current assets, loans and
 advances have a value on realisation in the ordinary course of business
 atleast equal to the amount at which they are stated.
 
 (3) AUDITOR'S REMUNERATION
 
                                         For the year     For the period
                                                ended              ended
                                           30.09.2000           30.09.99
                                                (Rs.)              (Rs.)
 
  Audit Fees                                     7500              20000
  
 Tax Audit Fees                                  2500              10000
 
 Our of Pocket Expenses                           800               4890
 
 (4) The term loans from Financial institutions and Bank are secured by
 :
 
 (i) a first mortgage over the immovable and moveable properties of the
 Company including its moveable machinery, spares, tools, and
 accessories, present and future ; and
 
 (ii) a first charge on all the remaining assets of the Company present
 and future, including uncalled capital and the goodwill subject to
 prior charges created and/or to be created in favour of the Company's
 bankers on the Company's stocks of raw materials, semi-finished and
 finished goods, consumable stores and book debts and such other
 moveables as may be agreed to by the Lender for securing borrowings for
 working capital requirements in the ordinary course of business.
 
 The mortgage and charge referred to above shall rank pari-passu with
 the mortgage and charges created and/or to be created in favour of
 different financial institutions and Banks.  The above loans are also
 secured by the personal guarantees of promoter directors.
 
 (5) The working capital facilities from Banks are secured by
 hypothecation of stocks of raw material, work in process, finished
 goods, consumable stores and spare and other materials required for the
 products of the Company and book debts of the Company & a second charge
 on the block of assets of the Company.  These facilities are further
 secured by the personal guarantees of promoter directors.
 
 (6) The company had not carried any manufacturing activities during the
 year under review.  The possession of factory building and other fixed
 assets of the Company was takeover by Rajasthan State Industrial
 Development & Investment Corporation Limited (RIICO) w.e.f. 16-11-99.
 The company had taken term loans from RIICO for setting up solvent
 Extraction Unit and Vanaspati Unit and an amount of Rs. 182.58 lakhs is
 due to RIICO as on the date of takeover which includes accrued interest
 of Rs. 43.85 Lacs.
 
 (7) Due to take over of factory building and other fixed assets of the
 Company by Rajasthan State Industrial Development & Investment
 Corporation Limited (RIICO) w.e.f. 16-11-99 no provision for interest
 due on Term Loans from financial institution i.e., RIICO and Rajasthan
 Financial Corporation (RFC) has been provided for after the date of
 take over by RIICO on 16-11-1999.
 
 Also no interest on working capital facility and term loan from Punjab
 National Bank (PNB) has Been provided after 17-08-2000 as the said Bank
 has filed a suit for recovery of its dues against the Company with Debt
 Recovery Tribunal after applying interest on outstanding dues against
 the company unto the aforesaid date.
 
 Further interest on working capital facility from state Bank of Mysore
 is pending to be provided in the accounts w.e.f. 25.02.2000 as the said
 Bank has provided interest on working capital facility enjoyed by the
 Company only upto that date.
 
 (8) Figures have been rounded off to nearest rupee.