1. Secured Loan
 
 a. The principal amount of Debentures outstanding from time to time together with interest, remuneration of
the Trustees and all costs, charges expenses and all other monies payable by the Company in respect
 of the Debenture is secured by a first charge created by equitable mortgage by deposit of the title deeds of
the company's immovable properties, both present and future at plot no. 31,32,33 and 34 at Industrial Area,
Poanta Sahib, District Sirmour, Himachal Pradesh and first charge by way of hypothecation on all the
Company's movable properties and assets, both present and future (save and except book debts) subject to the
prior charges created/to be created in favour of
 the Company's bankers on specified movables for securing borrowings for
 working capital requirements and subject also to the prior charges for
 the bankers on equipment purchased/to be purchased under deferred payment guarantees pertaining to calcium
carbonate plant of the Company
 ranking pari passu with the exciting mortgage and charge in favour of Bank of Baroda to secure term loan.
 
 b. The debentures will be redeemed at par in three annual instalments of Rs. 10/- each on 7th May, 1999, 7th
May, 2000 and 7th May, 2001.
 
 c. Cash Credits from Bank are secured by hypothetecation of the stocks of Raw materials (including in
transit), Chemicals, Finished Goods, Semi Finished Goods, Stores and Spares and Documentary Bills and are
guaranteed by two Directors and Managing Director and second charges on
 the Fixed Assets of the company
 
 d. The Equipment Finance from Industrial Investment Bank of India is secured by exclusive first charge on
the fixed assets acquired under the
 scheme by way of hypothecation and third charge on the fixed assets of the Company subject to the first
charge of the existing term lending institution/bank/debenture holders and second charge of the bankers for
working capital facilities and is guaranteed by the two Directors and Managing Director of the Company
 
 2. Revelation of Land, Building and Plant & Machinery of Company's factory was made on 31st, March, 1990.
The total amount added to Land, Building and Plant & Machinery on their revaluation as on 31st March, 1990
was Rs 17,619,788/-. Land was revalued at current market price and Building and Plant and Machinery at
Replacement Cost in accordance with the valuation made by an independent Chartered Engineer.
                                               
                                               31-3-1997       31-3-1996
 3. Bonds executed in favour of 
     Central Excise                               10,000          10,000
 
 4. Amount due from Lime Chemicals Ltd., the 
 company within the same management within the 
 meaning of the Companies Act, 1956 as
 
 I) Sundry Debtors                            1,20,44,716       98,24,465   
 II) Loans Advanced (Interest Bearing)          15,00,000       65,00,000
 
 5. Balance of Sundry Debtors, Loans & Advances, 
 Sundry Creditors and Advance payments are subject 
 to confirmation and reconciliation.
 
 6. Loans and Advances include Interest free 
 loan given to employees                        3,25,000         8,06,616
 
 7. Bank Balances subject to reconciliation & confirmation
 
 Fixed Deposit                                     2,200            -
 Dividend Accounts                                75,622            -
 Current Accounts                                  4,863            -
 
 8. a) No provision has been made in the accounts 
 in respect of Doubtful Debts.                 28,63,431        30,44,232
 
 b) No provision has been made in the accounts for 
 the shortfall between the book value and market 
 value of quoted investments as these investments 
 were made as Long Term investments and the 
 management is of the opinion that the 
 shortfall is temporary.                          80,237            2,380
 
 9. Stores consumption includes partly for repairs 
 and renewals but after deducting directly capitalized 
 as certified by the management.                 3,24,191        7,77,199   
 
 10.  Profit or Loss on Sale/Shortage in 'Transit of 
 Raw Materials' and stores remain adjusted in respective heads.
 
 11.  As per practice consistently followed, Excise 
 Duty payable on finished goods, held in the factory is 
 neither included in expenditure nor valued in such stocks,
 but is accounted for on clearance of goods from factory. 
 This accounting treatment has no impact on profits. The
 amount of Excise Duty payable on finished goods not 
 cleared from factory is estimated.           13,89,032        2,75,660
 
 12.  The Income Tax Department has disallowed the claims under section 80 HH & 80 I which is now pending 
before the Appellate Tribunal in appeal. The company is hopeful for success in the said appeal. However, if
any demand is created suitable provisions will be made based on final outcome of the case in appeals in these
years. Provision for tax during the current year has been made accordingly after taking into consideration
deduction under section 80 HH & 80 I of the Income Tax Act, 1961.