An x-ray astronomy experiment consisting of three collimated proportional counters and an X-ray Sky Monitor (XSM) was flown aboard the Indian Satellite IRS-P3 launched on March 21, 1996 from SHAR range in India. The Satellite is in a circular orbit of 830 km altitude with an orbital inclination of $98^{circ}$ and has three axis stabilized pointing capability. Each pointed-mode Proportional Counter (PPC) is a multilayer, multianode unit filled with P-10 gas ($90\%$ Ar + $10\%;CH_4$) at 800 torr and having an aluminized mylar window of 25 micron thickness. The three PPCs are identical and have a field of view of $2^{circ}{ imes}2^{circ}$ defined by silver coated aluminium honeycomb collimators. The total effective area of the three PPCs is about 1200 $cm^2$. The PPCs are sensitive in 2-20 keV band. The XSM consists of a pin-hole of 1 $cm^2$ area placed 16 cm above the anode plane of a 32 cm$ imes$32 cm position sensitive proportional counter sensitive in 3-8 keV interval. The position of the x-ray events is determined by charge division technique using nichrome wires as anodes. The principal objective of this experiment is to carry out timing studies of x-ray pulsars, x-ray binaries and other rapidly varying x-ray sources. The XSM will be used to detect transient x-ray sources and monitor intensity of bright x-ray binaries. Observations of black-hole binary Cyg X-1 and few other binary sources were carried out in early May and July-August 1996 period. Details of the x-ray detector characteristics are presented and preliminary results from the observations are discussed.