1.  Contingent Liabilities not provided for:
 
 (i) Letter of credit 
 opened with Banks      : Rs. NIL (Previous year: Rs. NIL)
 
 (ii) Bank Guarantees 
 outstanding            : Rs. NIL (Previous Year-Rs. NIL)
 
 2.  The pending appeals pertaining to Assessment Year 1996-97 and
 1997-98 have been decided by the Income Tax Appellate Tribunal, Delhi
 vide order dated 04.04.2008. Pursuant to such orders the company is
 entitled to get refund of approximately Rs. 28.77 Lakhs including
 interest. The refunds are yet to be received hence not accounted for in
 the Accounts.
 
 3.  Related Party Disclosures:
 
 The Company has identified all related parties and details of
 transactions are given below. No provision for doubtful debts or
 advances is made.
 
 5. SEGMENT:
 
 The Company''s main business is Manufacturing and export of Handicraft
 items like Glass Beads; Necklaces, Imitation Jewellary etc. all those
 items form just one Segment. The sell of minor items such as carpets is
 less then 10% of total sales. As the company has its commercial
 activity mainly at Varanasi, hence separate geographical segment wise
 reporting is not required.
 
 7.  Earning per share:
 
 Basic and diluted earnings per share are calculated by diverting the
 net profit for the year attributable to equity shareholders by the
 weighted average number by equity shares. The Company does not have any
 outstanding diluted potential equity shares. Consequently the basic and
 diluted earnings per share remain the same.
 
 8.  There are no small scale industrial undertakings to whom the
 Company owes a sum exceeding Rs. one lac which is outstanding for more
 than 30 days during the year.
 
 10.  The Management has conducted physical verification of stocks at
 reasonable intervals and discrepancies noticed on such verification
 have been properly dealt with as per Accounting Standards-2 pertaining
 to valuation of inventories issued by the Institute of Chartered
 Accountants of India.
 
 11.  There is an adequate internal control procedure and internal audit
 system commensurate with the size of the company and the nature of its
 business. The Directors have been making consistent efforts to improve
 such procedures and systems keeping in view the needs of business and
 experience gained.
 
 12.  Balance of Sundry Debtors, Creditors and Loans and Advances shown
 in the accounts are subject to confirmation by the parties concern.
 
 13.  In the opinion of the Directors, Currents Assets, and Loans and
 Advances are approximately of the value, which, if realised, in the
 ordinary course of business, will not be less than the figure stated in
 the books of accounts.
 
 14.  The Company has been generally regular in depositing undisputed
 statutory dues including provident fund, investor education and
 protection fund, Employees'' State Insurance, Income Tax, Sales Tax,
 Wealth tax, Service Tax Customs Duty, Excise Duty, Cess and any other
 statutory dues, where applicable with the appropriate authorities.
 
 15.  The Calls in arrears of Share Capital amounting to Rs.232500 and
 of Share Premium amounting to Rs. 2206675/- are outstanding since long.
 None of these amounts relate to the directors or their relatives. The
 Management has decided not to forfeit such shares for the time being.
 
 16.  Previous year''s figures have been regrouped/ rearranged/
 reclassified wherever necessary to make them comparable with the
 figures of the current year.