I. (i) 1,00,000 18% Preference Shares of Rs. 100/- each were redeemable at par on 14th March, 1998 but not yet redeemed.

(ii) 1,00,000 18% Preference Shares of Rs. 100/- each were redeemable at par on 14th March, 1999 but not yet redeemed.

(iii) 1,00,000 18% Preference Shares of Rs. 100/- each were redeemable at par on 14th March, 2000 but not yet redeemed.

(iv) *2700 shares are held in abayance ( Previous period 3300). Out of 3300 equity shares, 600 equity shares of Rs. 10/- each fully called up (paidup Rs. 5/- per share) have been allotted at a premium of Rs. 15/- per share.

II. 98,76,651 Equity Shares of Rs. 10/- each fully paid-up [Previous period 98,76,351 equity shares of Rs. 10/- each fully paid up] have been allotted as Bonus Shares by way of capitalisation of share premium account in the ratio of one share for every two shares held.

III. 2,00,00,000 equity shares of Rs. 10/- each fully paid-up have been allotted at par on preferencial basis.

SECURED LOANS

1. The Company has reached a negotiated settlement with all the consortium Banks viz. Punjab National Bank (the lead bank), Bank of Rajasthan, ABN AMRO Bank, Vysya Bank, Bank of India and The Times Bank Limited for all their dues by payment of a lump sum amount in a phased manner. The dues of Times Bank and Vysya Bank have since been cleared off. The settlement amount of remaining Banks are secured by equitable mortgage of Land and Building and hypothication of Plant and Machinery, present & future, situated and installed at Company's factory at S-34, Uptron Industrial Area, Site-IV, Sahibabad Industrial Area, Ghaziabad (UP), Plot No. 105 and 231, Baddi Industrial Estate, Baddi (Himachal Pradesh), Plot No. 140/1 and 140/2, Silvassa Industrial Area, Dadra & Nagar Haveli and also secured by second charge on Fixed Assets of the company at 58/4 Site-IV, Sahibabad (excluding those specially charged to IDBI) and charges reffered above are ranking pari passu. These are further secured by hypothecation of stock of raw material , finished goods, work in process, consumable stores and book debts. The loans are further guaranteed by Promoter Directors of the Company.

2. The Loan of IFCI is secured by exclusive mortgage of immovable and movable assets both present and future of CD/DVD plant at 46/5 Site-IV, Sahibabad Industrial Area Distt. Gaziabad (UP) and exclusive charge on the additional fixed assets of the PET division (Covered under proposed expansion scheme to be installed at Silvassa). The loan is additionally secured by the personal guarantee of Shri Vivek Nagpal, Smt. Padma Nagpal and Smt. Aarti Nagpal.

3. Term Loan of Rs. 58.31 Lacs from Pradeshiya Industrial & Investment Corporation of UP Ltd. (PICUP) is secured by equitable mortgage covering the entire fixed assets of the Company, acquired and proposed to be acquired, including movable machinery, spares, tools and accessories for its factory at 58/4, Sahibabad Industrial Area, Ghaziabad (UP) and such other Assets and as may be acquired during the currency of loan and further guaranteed by Promoter Directors of the Company. Term Loan of Rs. 150 Lacs from Pradeshiya Industrial & Investment Corporation of UP Ltd. (PICUP) is secured by way of hypothecation of the assets acquired under the scheme of Term Loan.

4. The company has settled with IDBI all its dues by payment of a lump sum amount in a phased manner. The settlement amount is secured by way of hypothecation of equipment to IDBI and further guaranteed by Promoter Director of the company.

5. Deffered payment credit is secured by charge on the Fixed Assets acquired against them.

OTHER NOTES

1. CONTINGENT LIABILITIES

                                            30.06.2000     31.12.1998
                                                         (Rs. in Lacs)

i) Unexpired letters of Credit                   96.05            NIL

ii) Bank Guarantee                                 NIL         289.02

iii) Bill Discounting - Bank                       NIL        2324.37

v) HP/Lease party under settlement proposal      50.00            NIL

8,50,000, 16.5% Non-Convertible Debenture of Rs. 100/- each fully paid-up are redeemable at par in three equal installments commencing from the expiry of third year from the date of allotment i.e. 13.05.1999. These debentures are secured by equitable mortgage of all the immovable properties of the company, wherever situated (both present and future) and also further secured by first charge by way of hypothecation of all movable properties of the company, both present and future, subject to prior charges in favour of the bankers for the working capital requirements. The loan is further secured by personal guarantee of Shri Vivek Nagpal.

3. Balances standing to the debit & credit of debtors, creditors, loans and advances and other parties are subject to confirmation from them.

4. In the opinion of the Board the value on realisation of Current Assets, Loans and Advances in the ordinary course of business shall not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities have been made and contingent liabilities disclosed properly.

5. The registration of leasehold land at 46/5, Sahibabad, U.P. For Rs. 33,94,283.40 and Land at Baddi Industrial, Baddi (Himachal Pradesh) for Rs.30,14,595.00 are pending endorsement in the name of the company.

6. i) All direct and indirect expenditure, including cost finance, incidental to the projects under construction implementation are accumulated and shown under the head "Capital Work in Progress" and "preoperative expenditure" (pending allocation) until the commencement of commercial production.

ii) The pre-operative expenditure on projects completed during the period, other than directly allocable expen- diture, incurred up to the date of commencement of commercial production are allocated to the Building and Plant & Machinery in the ratio of direct cost of the related assets.

iii) At unit 46/5 Sahibabad, UP, the commercial production of DVD Plant commenced on 01.12.1999 and that of CD Cutting Machine commenced on 16.06.2000. The pre-operative and trial run production expenditure, other than directly allocable expenditure, incurred upto 30.11.99 and 16.06.2000 respectively have been allocated to the Plant & Machinery only.

7. Estimated amount of contracts remaining to be executed on capital accounts and not provided for as on 30.06.2000 is Rs. 220.66 lacs. However some of such contracts could not be determined as the agreements with the parties were not yet finalised.

8. Rs. 393.00 lacs lying to the debit of "Prior Period Adjustment Account" is net of Prior Period Income and Prior Period Expenses.

9. No interest has been booked on loans from banks/financial institutions (With whom settlement has been done) from 01.01.1999 till the date of settlement.

10. The Company is in the process of identifying the suppliers who are covered under "The Interest on Delayed Payment to Small Scale and Ancillary Industrial Undertaking Act, 1933". Consequently the liability under the said Act on account of such interest is not ascertained as on 30th June 2000, however no claim has been received for interest from suppliers with reference to above Act.

11. The company has settled dues with Bank of India after 30.06.2000 but before finalisation of accounts. The settlement amount have been given effect on 30.06.2000 by Rs. 53.60 lacs.

12. In case of ICD's/HP/Lease where legal proceedings have been instituted, provision for interest has not been made after the date of filing of suit for recovery.

13. The name of the Company "PADMINI POLYMERS LIMITED" has been changed to "PADMINI TECHNOLOGIES LIMITED" effecting from 12.06.2000.

14. Previous period figures have been rearranged/regrouped wherever necessary.

15. The current period figures are for a period of 18 (Eighteen) months ended on 30th June' 2000.