1

The subject matter of Auditors' qualification in the last Audited Financial Statements for the year ended 31st March 2003 does not have any impact on the current periods' results.

2

The Rehabilitation Scheme sanctioned by the BIFR has been fully implemented save for the sale of the yarn plant for which the necessary steps have been initiated.

3

The Company has allotted 1,46,82,000 equity shares of Rs.10/- each at par on 10th February 2004 to promoters/associates and financial institutions in terms of Rehabilitation Scheme sanctioned by the BIFR. Further, in terms of the Rehabilitation Scheme sanctioned by BIFR, the Board has decided to reduce the share capital of the company by 50%, by reduction in the face value of the equity shares from Rs. 10/- to Rs. 5/- per share and reduction in the face value of Redeemable Cumulative Preference Shares (RCPS ) from Rs. 100/- to Rs. 50/- per share. The record date for reduction in capital would be 27th February 2004. The number of Equity shares and RCPS issued remains the same.

4

The Company has fully repaid before schedule the amounts as per One Time Settlements reached with Financial Institutions.

5

The Company, considering the low contribution, has stopped production and sale of Polyester Filament Yarn.

6

The Company has commissioned 4.10 MW Base Load Generator ahead of Schedule which runs on cheaper fuel, Furnace Oil. Such set substitutes several smaller sets and is cost effective.

7

Four smaller Chips line are being replaced by one line of a larger capacity which will make it cost effective.

8

The Board of Directors in their meeting held on 11th December 2003 have 'In Principle' approved installation of a new film line of 25,000 TPA capacity in UAE.

9

The Board of Directors have declared interim Dividend of Re. 0.625 per share (12.5% on equity share of par value of Rs. 5/-) for the year 2003-2004 at the Board Meeting held on 10th February 2004. The prorata interim dividend of Re. 0.087 per share (aggregating to Rs.12.82 lacs) on new shares after reduction in the face value by 50 % is also proposed to be paid for the year 2003-2004. The record date for payment of Dividend shall be 27th February 2004.

11

Previous year / nine months / quarter figures have been regrouped / recast wherever necessary to make them comparable.

12

The results for the quarter / nine months ended 31st December 2003 have been subjected to limited review by the Auditors and were taken on record at the Board of Directors meeting held on 10th February 2004.