1.Contingent Liability not provided for Rs. 25,29,034/- (Rs.
 25,29,034/-) being Income Tax Demand disputed in appeal for A. Y.
 1996-1997 and A. Y. 1997-1998.
 
 2. In the opinion of the Board, the Current Assets Loans and Advances
 are not less than the values stated if realised in the ordinary course
 of business. The provision for depreciation and all known liabilities
 are adequate and not in excess of the amount reasonably necessary.
 There is no contingent liability other than stated above in Note : 20.
 
 3.The latest audited accounts available with the Company in respect of
 following unquoted investments, in which the Company has made total
 investments of Rs. 35,58,825/- shows, substantial erosion of net worth
 of these companies. However, in view of Strategic Investments and long
 term nature of the Company''s investments in these companies no
 provision for diminution in value of its investment is presently
 considered necessary except in the case of 2,888 unquoted fully paid up
 Equity Shares of Pelican Paints Private Limited which is shown as
 investment and valued at Rs. 1/- only.
 
 4.The management has not been able to locate the physical share
 certificates in respect of the following investments held by the
 Company.  
 
 i) 5500 Equity Shares of Rodal Circa Print Electronics Limited
 
 ii) 4500 Equity Shares of Cifco Finance Limited
 
 iii) 470 Equity Shares of Central Provinces Railway Company Limited
 
 iv) 1000 Equity Shares of Honda Siel Power Products Limited
 
 5.The Company has not received any intimation from suppliers regarding
 their status under the Micro, Small and Medium Enterprises Development
 Act, 2006 and hence disclosures if any, relating to amounts unpaid as
 at the year end together with the interest paid /payable as required
 under the said Act have not been given.
 
 6.The net owned fund of the Company is below the Statutory requirement
 of Rs. 1 Crore as per the Directions issued to Non-Banking Financial
 Companies (NBFC) under the Reserve Bank of India Act, 1934, accordingly
 the Reserve Bank of India, had not considered the Company''s application
 for registration under the provisions of Section 45-IA of the Reserve
 Bank of India Act, 1934 (as amended). The Company is thus precluded
 from accepting public deposits. The Company has not accepted any
 deposits from the public.
 
 7. Provision for taxation has not been made in view of the losses
 incurred by the Company.
 
 8.DISCLOSURES UNDER ACCOUNTING STANDARDS :
 
 a.  SEGMENT REPORTING (AS-17) :
 
 The Company operates in one Segment only Viz Investments. It operates
 only in Domestic Market, hence there are no business/ geographical
 segments to be reported as required under Accounting Standard (As -17)
 Segment Reporting issued by the Institute of Chartered Accountants of
 India.
 
 b.  RELATED PARTY DISCLOSURE (AS-18) :
 
 The management has identified the following Related Party Relationships
 and Related Party Transactions.
 
 d) ACCOUNTING FOR TAXES ON INCOME (AS-221 :
 
 As a matter of prudence, the Company has not created a Deferred Tax
 Asset on the carried forward and current losses due to uncertainty of
 utilization and the adjustment to the carrying amount of investments
 due to absolute losses in the investment. Deferred Tax Liability
 represent tax impact of difference between book and tax depreciation.
 
 9. The Company has not received confirmation in respect of balance
 with a bank as account is not in operation amounting to
 Rs.4,068/-(Rs.4,068/-).
 
 10.The Revised schedule VI has become effective from 1 April, 2011 for
 the preparation of financial statements. This has significantly
 impacted the disclosure and presentation made in the financial
 statement. Previous year''s figures have been regrouped / reclassified
 wherever necessary to correspond with the current year''s classification
 / disclosure.