1. Balances of sundry debtors, creditors and of loans & advances are
 subject to confirmation from respective parties.
 
 2. During the year, the Company has complied with Accounting Standard
 (AS) 22 Accounting for taxes on Income issued by ICAI. The Company
 does not recognise either Deferred Tax Asset or Current Tax Aset as
 required-under Accounting Standard - 22 despite having huge unabsorbed
 depreciation & carryforward business losses as there is no certainly of
 future taxable profits.
 
 3. In the opinion of board of directors, the aggregate value of current
 assets, loans & advances, if realised, in the ordinary course of
 business will not be less than the amount at which these have been
 stated in the balance sheet.
 
 4. Previous years figures have been regrouped and rearranged wherever
 considered necessary.
 
 5. Earning per share according to the Accounting Standard - 20 is as
 under:
 
                                                    Current     Previous
                                                       Year       Period
                                                     Rupees       Rupees
 
 Basic & Diluted EPS                                 (0.06)       (0.85)
 
 Cash EPS                                              0.16         0.96
 
 6. Contingent liability in respect of guarantees provided by the
 company aggregates to rupees 1,475 lacs (previous year rupees 1,475
 lacs).
 
 7. Banks and Financial Institutions have filed suits against company in
 The Debt Recovery Tribunal - Ahmedabad for recovery of their dues
 aggregating to rupees 1336.29 lacs.
 
 8. Company has made investments and granted loans in excess of 40% of
 net owned funds against Non Banking Financial Companies Prudential
 Norms (Reserve Bank) Directions 1998.
 
                                                   Current      Previous
                                                      Year        Perioa
                                               (12 months)    (6 months)
                                                    Rupees        Rupees
 
 9. Managerial Remuneration:
 
 Salary                                            225,000       720,000
 
 Total                                             225,000       720,000
 
 10. Auditors Remuneration :
 
 Audit Fees                                         36,750        36,750
 
 Other Services                                     10,500        70,500
 
 Out of Pocket Expenses                             11,700        77,700
 
 Total                                              58,950        58,950
 
 11. Bank Balances include rupees 980/- held with The Social Co
 Operative Bank Limited (Maximum balance outstanding rupees during the
 year 1,000/-).
 
 12. Additional information to be given, pursuant to para 4C and 4D of
 part II of schedule VI to the Companies Act, 1956, are not applicable.