1.  Secured loans:
 
 i. Secured loans include Working Capital Cash Credit from State Bank of
 India outstanding of Rs.137,813,862/-(Previous Year Rs.98,573,719)
 secured by Hypothecation of current assets in the form of raw
 materials, semi finished goods, stores / spares, receivables and other
 current assets.
 
 ii. Secured loans are secured by personal Guarantees of Executive
 Director and Managing Director of the Company and their personal
 property.
 
 iii. Secured loans include Term loan of Rs.2.22 crores (Previous year
 NIL) from State Bank of India.
 
 2.  a.  Provision for Taxation:
 
 Provision for taxation for the current Year has been made for
 Rs.2,087,536/- (Previous Year Rs.1,461,614/-).
 
 b.  Deferred Tax:
 
 C. Quantitative Details
 
 Having regard to the nature of item purchased / traded, furnishing of
 particulars regarding quantity is not practicable. The consumption
 values are ascertained on the basis of opening stock plus purchases
 less closing stock after adjustment of excess and shortage of physical
 count, unserviceable items etc.,
 
 3. As per Accounting Standard 18, issued by the Institute of Chartered
 Accountants of India, the disclosures of transactions with the related
 parties as defined in the Accounting Standard are given below:
 
 4.  Balance in Sundry debtors, loans and advances and other current
 assets are subject to confirmation. The company had initiated the
 process of obtaining confirmations during the year and partially
 obtained confirmations from third parties for the balances at the end
 of the year. In the opinion of the management the balances outstanding
 are good and recoverable and no provision is foreseen in respect of the
 same.
 
 5. Segment Reporting (AS-17)
 
 The Company has its manufacturing operations at Pondicherry. The Company
 has its Systems Integration & Retail operations in Chennai and other
 parts of India for Computers, Computer Peripherals, Software and
 consumables. Segments have been identified and reported taking into
 account nature of products and services, the differing risks and
 returns and the internal business reporting system. The accounting
 policies adopted for segment reporting are in line with accounting
 policy of the Company.
 
 6. Income Tax, Excise Duty & Cess Income Tax
 
 Assessment Year 2007-08
 
 The Company has declared a Taxable income of Rs.27966979/- (as per MAT
 provision) and paid a Tax of Rs.7401039/-. In the assessment, the
 assessing officer has apportioned some expenses in Pondicherry
 manufacturing unit books and has raised an additional demand of
 Rs.702730/- on the Company. Company has preferred an appeal against the
 order to Commissioner Appeals.
 
 7.  The Whole time Company Secretary has resigned and the company is
 in the process of recruiting whole time Company Secretary.