1. Remuneration to Executive Director:
Current Year Previous Year
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
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
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
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
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
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
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.