1. DIRECTORS REMUNERATION :
 
                                               2004-2005       2003-2004
                                          (Rupees 000s)  (Rupees 000s)
 
 Salaries and allowances
 paid to Wholetime Director                        3,542           3,274
 
 Contribution to Provident Fund                      164             168
 
 Superannuation Fund                                 204             209
 
 Perquisites                                         299             260
 
                                                   4,209           3,911
 
 Notes :
 
 (a) Includes remuneration of Mr. R. Ragunath who has been appointed as
 Managing Director effective 1st February, 2004. This is subject to
 approval of Central Government.
 
 (b) Computation of net profits in accordance with Section 198 of the
 Companies Act, 1956 and the commission payable to Directors.
 
                                                2004-2005      2003-2004
                                           (Rupees 000s) (Rupees 000s)
 
 Net Profit after taxation                       (36,318)         34,021
 
 Add:
 
 Directors Remuneration                            4,209          3,911
 
 Directors fees/Commission                            91            350
 
 Book deficit on fixed assets
 sold, scrapped, etc. (net)                         5,106         66,213
 
 Provision for diminution in value of
 investments and excess of cost over
 fair value of current investments (net),
 included in miscellaneous expenses.                  194            113
 
 Taxation for the year                            (7,135)         20,796
 
                                                    2,465         91,383
 Net profit for Section 198 of
 the Companies Act, 1956                         (33,853)        125,404
 
 Commission to Non-Wholetime Directors at 1%          Nil          1,254
 
 Commission payable for the year restricted to        Nil            240
 
 3. Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for Rs. 14.44 (000s) [Previous year Rs. 52.49
 (000s)].
 
 4. Contingent Liability:
 
 - Claims against the Company not acknowledged as debts Rs. NIL
 [Previous year Rs. 2.37 (000s)].
 
 - Bills discounted not matured Rs. 242.66 (000s) [Previous year Rs.
 531.75 (000s)j.
 
 5. The Companys Bankers have given guarantees amounting to Rs. 7.32
 (000s) [Previous year Rs. 3.32 (000s)]. Guarantees are secured by
 counter guarantees given by the Company.
 
 6. The Company operates in Single Business Segment of Manufacturing
 of Soaps & Detergents for Brand Owners, pursuant to the processing
 agreement with M/s. Hindustan Lever Ltd., for manufacturing goods on
 job work. In line with the changes in the demand profile for products
 manufactured by the Company and also the on going restructuring and
 streamlining of the manufacturing facilities and operations, the unit
 has achieved the capability to manufacture Soaps & Detergents including
 Soaps, Soap Noodles, Detergent Bars/Cakes and Scouring Bars from the
 same manufacturing facilities.
 
 7. Disclosure of movement of provisions : (Rupees 000s)
 
                        01/04/2004   Additions   Deductions   31/03/2005
 
 Leave Encashment            1,753         134          599        1,288
 
 Gratuity                   14,021           -        5,476        8,545
 
 TOTAL                      15,774         134        6,075        9,833
 
 8. In line with AS-28, an impairment Rs. 4,231 (000s) was taken for
 the drop in estimated net realizable value of fixed assets held for
 sale.
 
 9. No dues to small scale industries as on 31st March, 2005 and the
 previous year.
 
 The above information has been determined to the extent such parties
 have been identified on the basis of informations available with the
 Company. This has been relied upon by the Auditors.
 
 10. EARNING PER SHARE (EPS):                     2004-2005    2003-2004
 
 a) Weighed average number of shares             51,366,177   51,366,177
 
 b) Net Profit/(Loss) after Tax and before
 Exceptional Item (Rupees000s)                     (7,581)       34,021
 
 c) Net Profit/(Loss) after Tax and after
 Exceptional Item (Rupees000s)                    (36,318)       34,021
 
 d) Basic and Diluted Earnings Per Share (Rupees)    (0.15)         0.66
 
 - Before Exceptional Item
 
 e) Basic and Diluted Earnings Per Share (Rupees)    (0.71)         0.66
 
 - After Exceptional Item
 
 11. INSTALLED ANNUAL CAPACITY (TONNES) :          2004-2005   2003-2004
 
 a) Soaps & Detergents including Soap/Soap Noodles,   45,000      45,000
 Detergent Bar/Cakes & Scouring Bar
 
 b) Detergent Powder                                  15,000      15,000
 
 c) Fatty Acids                                       30,000      30,000
 
 Notes : 1. Licensing of capacities is not applicable.
 
 2. All capacities are expressed on triple shift basis.
 
 3. The Installed Capacities are as per the certificate given by the
 Technical Officer-in-Charge on which the Auditors have relied, being a
 technical matter.
 
 12. i) Disclosure of transactions between the Company and M/s.
 Hindustan Lever Ltd. who is a major shareholder of the Company holding
 32.9% of the capital.
 
                                                           Rupees 000s.
                                                2004-2005      2003-2004
 
 a) Sales                                          52,150        263,987
 
 b) Processing Income                             160,996        252,630
 
 c) Purchase of Raw Materials/Fixed
 Assets/Stores & Spares                            43,988        168,506
 
 d) Compensation Claim                                  -         56,882
 
 e) Sale of Fixed Assets                                           6,650
 
 f) Outstanding dues from M/s. Hindustan
 Lever Ltd. as.on 31.03.05                       (13,512)         23,638
 
 ii) Key Management Personnel
 
 Mr. R. Ragunath - Managing Director
 
 The remuneration of key managerial personnel has been disclosed in Note
 No. (2) above.
 
 13. Balance sheet abstract and Companys general business profile as
 required in terms of the Part IV of the Schedule VI of the Companies
 Act, 1956 is attached herewith.
 
 14. Previous years figures have been regrouped wherever necessary.