OTHER NOTES.
 
 1. Estimated amount of contracts remaining to be executed on capital
 account Rs. 49.60 lacs (Previous year : Rs. 759.03 lacs).
 
 2. Claims against the Company estimated at Rs. 29.27 lacs (Previous
 year: Rs. 141.08 lacs) not accepted by the company and not provided
 for.
 
 3. Bills discounted with Banks outstanding Rs. 1574.99 lacs (Previous
 year: Rs. 734.14 lacs).
 
 4. a) Pursuant to the Accounting Standard for Taxes on Income (AS 22)
 effective 1st April 2001, deferred tax for the current financial year
 is:
 
                                                        Rs. lacs
 
 Deferred tax asset on account of taxes, duties,
 business loss etc.                                      1327.66
 
 Deferred tax liability on account of depreciation
 and related items                                        634.14
 
 Net deferred tax asset                                   693.52
 
 b) The Company has filed a Writ Petition challenging retrospective
 validity of Accounting Standard for Taxes on Income (AS-22) in the
 Honourable High Court of Karnataka. Pending decision on the said Writ
 Petition the Company has not provided deferred tax liability for the
 period upto March 2001.
 
 5. Miscellaneous expenditure to the extent not written off, amounting
 to Rs. 718.60 lacs (Previous year: Rs.28.69 lacs) represents deferred
 revenue expenditure under voluntary retirement scheme of the Company.
 
 6. (a) Debts over six months / advances recoverable in cash or in kind
 or for value to be received are net of provisions made for doubtful
 debts/advances of Rs. 114.41 lacs (previous year: Rs. 89.48 lacs).
 
 (b) Debts over six months / advances include Rs. 266.96 lacs,(previous
 year :Rs. 273.45 lacs) for which legal and other necessary action has
 been taken. In the opinion of the Management these debts / advances
 are recoverable and are classified as good.
 
 7. No provision has been made in respect of the demand raised by M/s.
 Techno Export,Czech Republic suppliers of machineries for the price
 difference arising out of the special drawing rights amounting to
 Rs.641.08 lacs (previous year: Rs, 641.08 lacs).The Company has been
 advised that the claim of the party is untenable in law. The matter is
 subjudice.
 
 8. Exchange fluctuation (Net) amounting to Rs. 136.28 lacs (previous
 year :Rs, 88.78 lacs) has been included in the respective heads of
 account in Profit and Loss Account.
 
 9. Interest and Commitment charges of Rs .2563.33 lacs for the entire
 contracted period of term loans from Financial Institutions and Banks
 and Deferred Payment arrangement for acquisition of Fixed Assets had
 been capitalised in the Accounts for the year ended 31.03.84, with
 retrospective effect from the commencement of commercial production
 and corresponding depreciation charged in the Accounts on such
 enhanced value of fixed assets. The company has discontinued the
 practice of capitalisation of interest on term loans availed after
 31.03.84. As a result of the above, the loss for the year is higher by
 Rs. 12.96 lacs and the cumulative profit is higher by Rs. 266.86 lacs.
 
 10. Raw material consumed for the year has been determined after
 taking credit of Rs. 1393.53 lacs (previous year: Rs.624.43 lacs) on
 accrual basis in respect of estimated benefit on account of
 entitlement to import raw materials against exports made under duty
 exemption scheme.
 
 11. Interest charged to Profit & Loss Account is net of Interest
 Capitalised Rs. NIL (previous year: Rs. 1118.04 lacs)
 
 12. Sundry creditors include Rs. 81 lacs (previous year: Rs. 75.92
 lacs) due to Small Scale Industrial undertakings to the extent such
 parties have been identified from the available information and Rs.
 6114.83 lacs (previous year: Rs. 3041.11 lacs) due to the creditors
 other than small scale industrial undertakings.
 
 13. Research and Development expenses amounting to Rs. 87.56 lacs
 (previous year :Rs. 82.29 lacs) have been included in revenue accounts,
 
 14. Related party disclosure in accordance with the Accounting
 Standard 18 issued by the Institute of Chartered Accountants of
 India.(ICAI) and effective from April 1st,2001 (Rs. in lacs)
 
 M/s JK Industries Ltd.,
 Holding Company             Licence fees                    346,08
 
                             Sharing of marketing and
                             selling expenses                158.60
 
                             Other reimbursements             97.65
 
                                                             602.33
 
 15. Remuneration to the Wholetime Director:
 
                                               Rs. in Lacs(0.1 Million)
                                               31.03.02        31.03.01
 
 Salary                                            8.80            7.51
 
 Contribution to Provident and Other Funds         2.86            2.44
 
 Value of perquisites(as per Income Tax Rules)     4.92            4.38
 
                                                  16.58           14.33
 
                                     Rs. in Lacs(0.1 Million)
                                     31.03.02        31.03.01
 
 16. Amount paid to auditors:
 
 i) Statutory Auditors:
 
 a) Audit Fees                           1.00            1.00
 
 b) Tax Audit Fees                       0.15            0.15
 
 c) Certification                        0.03            0.13
 
 d) Reimbursement of Expenses            0.89            0.75
 
 ii) Cost Auditors:
 
 a) Audit Fees                           0.20            0.20
 
 b) Reimbursement of Expenses            0.03            0.02
 
                                          Rs. in lacs (0.1 Million)
                                           31.03.02        31.03.01
 17. a) Expenditure in Foreign Currency
 (as remitted)
 
 Royalty                                     232.07          162.47
 
 Others                                       72.41           70.12
 
 b) Earnings in Foreign Currency on
 account of FOB Value of exports           11919.20         7936.61
 
 c) C.I.F. Value of Imports:
 
 Raw Materials                              7839.14         6131.17
 
 Capital Goods                               395.86          955.27
 
 Stores & Spares                             106.98          131.52
 
 18. Previous years figures have been regrouped/reclassified wherever
 necessary.