Notes to Accounts of Mideast (India) Ltd.

Mar 31, 1997

1.FOREIGN CURRENCY TRANSACTIONS

(i) Outstanding Foreign Currency Loans have been converted into Indian currency at the exchange rate prevailing at the date of Balance Sheet. Consequent to exchange rate fluctuation a sum of Rs. 48.67 lacs (Previous year Rs. 22.55 Lacs) is being included in the cost of fixed assets and foreign currency loan.

(ii) Realised gains and losses on foreign exchange transactions are recognised in the Profit & Loss Account.

2. Interest on Term Loan payable to Industrial Development Bank of India Rs. 513.50 lacs and to Unit Trust of India, Mumbai Rs. 130.94 lacs have been charged on paid basis. Company has applied for reschedulement of loan with interest.

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Mar 31, 1996

FOREIGN CURRENCY TRANSACTIONS

(i) Outstanding Foreign Currency Loans have been converted into Indian Currency at the rate of exchange prevailing at the date of Balance Sheet. Consequent to exchange rate flucutation a sum of Rs.22,55,000/- (Previous year Rs.78,51,970/-) is being included in the cost of Fixed Assets and Foreign Currency Loan.

(ii) Realised gains and losses on foreign exchange transactions are recognised in the Profit & Loss Account.

(iii) Foreign Office branch accounts are incorporated in Balance Sheet at the closing exchange rate as on 31.03.1996.

One shoe unit of the Company located at B-12 A, Phase II, Noida (U.P.) was gutted in the fire on 17th June, 1995. The position on fire insurance claim is summarised below:

(Rs. in Lacs) ------------------------------------------------------------------- SI. Particulars Value of Assets Insurance Net loss No. of Assets lost in fire claim Accepted ------------------------------------------------------------------- 1. Fixed Assets 652.03 367.43 284.60

2. Stocks 724.00 695.43 28.57 -------------------------------------------------------------------

Notes:

(i) Insurance claim accepted includes salvage value of Rs.8.40 lacs in case of Fixed Assets and Rs.17.37 lacs in case of stocks.

(ii) Company lodged the claim Rs. 1271.32 lacs, whereas claim accepted by the Insurance Company totals Rs. 1062.86 lacs. The balance of claim amounting to Rs.208.46 lacs is under dispute. However, the Company has provided for the amount of loss including related expenses Rs.29.50 lacs in profit & loss account.

Branch Debtors and realisation Accounts are subject to confirmation.

The details of Capital Work-in-Progress Rs.3035.71 Lacs is a under:

(Rs. in Lacs)

a) Capital Advances for Shipping Project 1,385.12

b) Capital Advances for Shoe Project 1,305.00

c) Interest & other Incidental Expenses 345.59 --------- TOTAL 3,035.71 ---------

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Mar 31, 1995

FOREIGN CURRENCY TRANSACTIONS

(i) Outstanding Foreign Currency Loans have been converted into Indian Currency at the rate of exchange prevailing at the date of Balance Sheet. Consequent to exchange rate fluctuation a sum of Rs. 78,51,970/- (Previous Year Rs. 15,23,000/-) is being included in the cost of Fixed Assets and Foreign Currency Loan.

(ii) Realised gains and losses on foreign exchange transactions are recognised in Profit & Loss Account.

(iii) Foreign Office branch accounts are incorporated in Balance Sheet at the closing exchange rate as on 31.03.1995.

9. Previous year figures have been regrouped/recasted wherever necessary.

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Mar 31, 1994

Transactions in foreign currency are recorded at exchange rate prevalent at the time of transaction. Consequent to exchange rate fluctuation a sum of Rs. 15,23,000/- (previous year - nil) is being included in the cost of fixed assets and foreign currency loan.

The company has invested a sum of Rs. 3,875.00 lakhs (previous year - Rs. 771.02 lakhs) into the equity shares of Mideast Integrated Steels Limited and Mesco Airlines Limited (corporate bodies under the same management), pending allotment. The company had obtained the permission from Govt. of India, Ministry of Law, Justice and company affairs, Department of company affairs vide their letter no. 8(5)/93-CL/VI dt. 17.2.93 for equity participation in Mideast Integrated Steels Limited by subscribing to 3,50,00,000 equity shaares of Rs. 10/- for cash at par aggregating Rs. 35 crores. As Mideast Integrated Steels Limited has now decided to issue the equity shares at a premium of Rs. 10/- per share, the company has requested the department of company affairs for revision of the permission already granted.

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Mar 31, 1993

1. The Current Financial Year is for a period of 12 months ended 31st March, 1993 whereas the previous financial period was of 10 months ended 31st March, 1992 (1-06-1991 to 31-03-1992). The corresponding figures for the previous period are, therefore, not directly comparable with those of current year.

2. Previous period figures have been regrouped/recasted wherever necessary.

3. Separate inventory of stock of raw materials, stores, work-in-process, finished goods both in India and foreign office have been taken, valued and certified by the Management.

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Mar 31, 1992

The current financial year is for a period of 10 months ended 31st March, 1992. Whereas, the previous financial year was a period of 14 months ended 31st May, 1991. The corresponding figures for the previous financial year are, therefore, not directly comparable with those of current period.

The company has obtained foreign currency loan, on 20th Feb., 1992, of US $ 8,66,349 from Industrial Finance corporation of India for Import of plant and machinery. The loan is repayable in 10 years commencing from the year 1993-94 in foreign currency. The company has not made any provision for exchange rate fluctuation and consequent revaluation of plant and machinery as there has not been any significant rate fluctuation till date.

The company has called "Allotment money" on partly paid up shares on 2nd March, 1992. The allotment money paid or credited in the special bank account has not fully reconciled and hence not been accounted for in the books.