1. Remuneration to Executive Director:
 
                                            Current Year   Previous Year
                                                   (Rs.)           (Rs.)
 
 Salary, allowances and perquisites              473,495         480,968
 
 Contribution to provident fund                   43,212          43,212
 
 2. Contingent Liabilities:
 
 a. Disputed statutory liabilities not provided for, for which the
 Company has preferred an appeal
 
 i. Income Tax                         Rs. 181.44 Lakhs
 
 ii. Sales Tax                         Rs. 72.60 Lakhs
 
 iii. Employee State Insurance         Rs. 1.98 Lakhs
 
 b. Additional liability, if any on account of pending sales tax
 assessments: not ascertainable.
 
 c. Interest Tax liability on Hire Purchase finance charges for 1998-99
 and 1999-2000 not provided for pending assessment: Rs.18.51 Lakhs.
 
 d. Penalties/Interest payable on account of delayed/non-payment of
 statutory dues are not ascertainable and hence not provided.
 
 e. Counter Guarantee given to a Bank against the guarantee given by
 them favouring Government of India towards software export performance
 Rs.27500.
 
 3. Confirmation of balance with whom the Company has had transactions
 have not been obtained.
 
 4. Details of Securities for loans:
 
 a. Working Capital from a Bank and Term Loan from a financial
 institution is secured by hypothecation of part of stock on hire and
 leased assets and by personal guarantee of two directors of the
 Company.
 
 b. Bonds are secured by exclusive unencumbered assets given out on
 lease or hire purchase or other investments marketable or other
 securities including shares, rights relating to booking of motor
 vehicles, book debts, present and/or future rentals and receivables
 relating to loans and advances and other moveable assets to be
 acquired/created out of proceeds of the bond issue.
 
 5. Loans have been classified as secured based on the managements
 perception of realisability of assets offered as Security.
 
 6. Vehicles include Rs.84000 additions during the year not yet
 registered in the name of the Company.
 
 7. Pending receipt of advice, interest on loan from Banks and
 financial institutions have been accounted on an estimated basis.
 Pending receipt of statement of accounts of certain bank accounts, the
 same are not reconciled.Effect on revenue is not ascertainable.
 
 8. Secured Bond and Deposit accounts and interest payable on secured
 bonds/deposits of certain branches are under reconciliation.
 
 9.No provision has been made for service tax on hire purchase
 activities as applicable with effect from 15th July 2001.
 
 10. Deferred Tax: In view of the losses, the ability of the Company to
 continue as a going concern is dependent upon the restructuring package
 proposed by the Company.Hence Deferred Tax Assets are not recognised.
 
 11. Dues to Small Scale Industrial Undertakings ; Sundry Creditors do
 not include any dues to Small Scale Industrial Undertakings to the
 extent such parties have confirmed as Small Scale Industrial
 Undertakings.
 
 12. The application made by the Company to the Reserve Bank of India
 for Grant of Certificate of Registration under Section 45-IA of the
 Reserve Bank of India Act, 1934 has been rejected on 23rd August 2002.
 Consequently, the Company was directed to advice its depositors of
 
 a. the fact of rejection of the Companys Application for Certificate
 of Registration by the Reserve Bank of India;and
 
 b. the plan of action for repayment of their deposits by the Company as
 contracted.
 
 The Company is taking necessary steps to obtain permission from the
 concerned authorities to restructure the repayment of its various
 liabilities including deposits.
 
 13. Related Party Disclosure:
 
 a. List of Related Parties
 
 Key Managerial Personnel: Rajaram Khandige - Executive Director
 
 Subsidiaries:
 
 Interactive Infonet Limited-Fully Owned Subsidiary
 
 b. Disclosure of Transactions with Related Parties:
 
 Remuneration to Key Managerial Personnel: Rs.516707/- 
 
 Service Charges received from Interactive Infonet Limited: Rs.4810192/-
 
 c. Amount Due/From Related Parties:
 
 Key Managerial Personnel: Due to key Managerial Personnel Rs.172600
 Subsidiaries: Due from Subsidiary Rs.3723260
 
 14. Segment Reporting: In the opinion of the management, disclosure
 regarding Segment reporting is not applicable to the Company (or the
 year under review as there are no reportable segments.
 
 15. Information with regard to other matters specified in Clause 3, 4,
 4(A), and 4(C) of Part II of Schedule VI to the companies Act, 1956, to
 the extent that they are either nil or not applicable have not been
 stated.
 
 16. Foreign Exchange outgo on account of Imports: Monitors for POS
 Machines Rs.Nil (Rs.1,53,180)
 
 17. Closing Inventories
 
 Particulars                                 Unit                   Oty.
 
 Monitors for POS Machine                     Nos                50 (50)
 
 Column Receipt Printers                      Nos                25 (25)
 
 18. Figures for the previous year have been re-grouped/rearranged
 wherever necessary to conform to this years classification.