1. Debentures are 15% Non-Convertible debentures (NCDs) of Rs. 10O/- each aggregating to Rs. 105 lacs redeemable at par in three equal instalments payable on 31st March 2005,31st March 2006 and 31st March 2007.

2. Term Loan from IDBI and Debentures are secured by way of equitable mortgage by deposit of title deeds over companys immovable properties (both present and furure) and hypothecation of all the movable properties(save and except book debts) subject to prior charge created/to be created in favour of companys bankers on the stock of raw materials, semi-finished goods,finished goods, consumable stores and book debts and such other movable agreeable for securing the borrowing for working capital in ordinary course of business.

3. Term Loan from IDBI and Non-Convertible Debentures also secured by personal guarantee of Shri K.G.Bajoria, Managing Director, Shri S.G. Bajoria, Director and corporate guarantee of M/s. Rajasthan Cylinders & Conainers Limited.

4. Debentures are further secured by way of pledging share of promoters aggregating to a face value of Rs.9.41 million.

5. Working capital borrowings from Canara Bank are secured by way of hypothecation of stocks of raw materials,stocks-in-process.finished goods.stores & spares and second charge on companys movable and immovable assets and further secured by personal guarantee of shri K.G.Bajoria Managing Director, Shri S.G. Bajoria, Director,Shri G.G. Bajoria and corporate guarantee of M s Beekay Niryat Limited (Formerly known as M/s. Giri Finance & Trading Ltd.)

6. Loan from Canara Bank (Canmobile) is secured by way of hypothecation of car financed by them.

2. NOTES FORMING PART OF THE ACCOUNTS

1) Contingent Liabilities not provided for in respect of:

                                                 As at            As at
                                            31.03.2002       31.03.2001
                                         (Rs. in Lacs)    (Rs. in Lacs)

a) Guarantee given by the Bankers                65.18            81.36

b) Claims against the Company not                 4.83             7.73
acknowledged as debt same being
disputed by the Company

c) Bills discounted by Bankers                   51.99            84.63

d) Partly paid-up Shares                          0.13             0.13

(b) As per technical opinion, the plant is a `Continuous Processing Plant as per definition of the Companies Act, 1956, and the rates of depreciation as mentioned under policy no. 1 (iv) has been charged considering the plant as `Continuous Processing Plant.

iii) Liability of retirement benefits upto 31st March 2000 aggregating to Rs.1046174/- is being amortised over a period of five years commencing from the year 2000-2001. Accordingly, this year also one fifth of the above has been charged to revenue and debited to respective heads.

iv) The Company has sought details from suppliers who had permanent registration certificate as Small Scale Industries undertaking issued by the Directorate of Industries of a State or Union Territory. In absence of such information, the amount (also bifurcation for 30 days and more than 30 days) and interest due as per the "Interest on delayed payments to small scale and Ancillary Industries Undertakings Act, 1933" is not ascertainable as on the Balance Sheet date.

v) In terms of subscription agreement with IDBI for allotment of 15% non-convertible debentures (Private Placement), Rs.105 lacs has been disbursed. However in view of pending formalities, allotment of the same is pending as on Balance Sheet Date.

vi) Balance of Sundry Debtors, Sundry Creditors and Loans & Advances are subject to confirmation and reconciliation.

vii) In the opinion of the Management, the Current Assets and Advances are approximately of the value stated if realized in the ordinary course of the business, unless otherwise stated. The provision for all liabilities are ad1 equate and not in excess of the amount reasonably necessary as shown.

viii) Sales are net of Sales return and includes sale of wastage amounting to Rs.3,09,868/- (Previous year Rs.2,83,264/-) and foreign exchange fluctuation of Rs.1,38,319/- (previous year Rs. 2,33,419/-).

ix) Segment Reporting as required by Accounting Standard (A.S.)-17

(A) Primary Segment

The companys predominant risk and returns are from Synthetic Multi Filament Yam which constituted 98% of this companys revenue for the reporting period. Thus the segment revenue, segment result, total carrying amount of segment assets, total amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of expenses incurred for depreciation and amortisation during the year are all as reflected in the financial statement for the year ended 31st March, 2002 and as on that date.

(B) Secondary Segment (by Geography)

(a) Revenue from External customers

                                         (Rupees)              (Rupees)
                                     Amount as on          Amount as on
                                       31.03.2002            31.03.2001

United Arab Emirates                   2158590.00           12948164.00

Kingdom of Saudi Arabia                8250022.00            8762990.00

Portugal                                596671.00            1237866.00

Nepal                                   337899.00             786014.00

Jordan                                  955762.00                     -

Bangladesh                                      -            1399745.00

Canada                                          -             183097.00

Spain                                           -            1268428.00

United Kingdom                                  -             644654.00

Italy                                           -            1225320.00

Srilanka                                        -             505032.00

India                                130096954.00          126010009.00

TOTAL                                142395898.00          154971319.00