Current Year    Previous Year
 
 1 Contingent liabilities:                (Rs in Lacs)     (Rs in Lacs)
 
 i) Claim against the company not 
 acknowledged as debt                          108.13           108.13
 
 ii) Outstanding Guarantee Issued by Banks   1,660.32           690.87
 
 iii) Letter of Credits issued by the Banks 
 (Agst. which Goods have not been 
 despatched)                                 2,338.89         1,160.70
 
 2 Machinery costing Rs I 179.15 Lacs having depreciated value Rs.
 782.20 Lacs acquired in earlier years, has been retired from active use
 due to technical obsolescence and the same disposed off during the
 year.
 
 3 Research and Development expenses shown under the head Work in
 Progress in previous year amounting to Rs. 204.90 lacs (P.Y. Nil) have
 been charged to revenue as no future economic benefit is expected to
 flow to the company on use.
 
 4 RELATED PARTY INFORMATION RELATIONSHIP
 
 a) Names of the related parties where control exists are as under :
 
 - Subsidiary :
 
 - ShyamTelecom Inc.
 
 b) - Key Management Personnel : Mr. Rajiv Mehrotra , Mr
 AlokTondon. Mr.Arun Khanna and Mr.Ajay Khanna and relative of Key
 Management personal : Mr. K.N. Mehrotra
 
 c) Enterprises over which Key Management Personnel and relatives are
 able to exercise significant influence: Shyam Antenna Electronics Ltd.,
 Intercity Cable System Pvt. Ltd, Shyam Communication Systems, Shyam
 Basic Infrastructures Projects Pvt.  Ltd., Shyam Networks Ltd.
 (formerly Shyam Telecom Systems Pvt. Ltd.), AT. Invofin India Pvt.
 Ltd., Cell cap Invofin India Pvt Ltd, Intell Invofin India Pvt Ltd,
 Shyam Digital Communications Pvt Ltd, Sistema Shyam Teleservices
 Ltd.,Ubico Networks Pvt.Ltd., RMS Automation Systems Ltd., Spectranet
 Pvt Ltd., and Vihaan Networks Ltd.
 
 II SEGMENT INFORMATION
 
 The Company''s operations predominantly relate to providing
 Telecommunication products , Turnkey Projects , Trading and respective
 related Services. The company has considered business segment as the
 primary segment for disclosure. The segments have been identified taking
 into account the nature of the products, the deferring risk and
 returns, the organisation structure and internal reporting system .The
 company caters mainly to the needs of the domestic market and export
 turnover is not significant in context of the total turnover, hence
 there is no reportable geographical segment .The Telecom products &
 Services segment comprise of manufacturing, trading and services in the
 related area. Turnkey Projects and trading services segment includes
 the turnkey Projects and Trading in Telecom Products. Investments are
 primarly in the companies which are dealing in IT and telecommunication
 sectors.
 
 Revenue & expenditure which relates to enterprises as a whole and are
 not attributable to segments are included in unallocable expenditure (
 Net of unallocable income ) . Assets used in the Company''s business or
 liabilities contracted have not been identified to any of the
 reportable segment , as all the assets and services are used
 interchangeably between segments, The Company believes that it is
 currently not practicable to provide segment disclosure relating to
 total assets and liabilities since a meaningful segregation of the
 available data is onerous.
 
 5 Some of the personal accounts are subject to adjustments /
 reconciliation / confirmation .
 
 6 In the opinion of Board of Directors Fixed Assets, Current Assets,
 Loans and Advances have a value on realisation in ordinary course of
 business at least equal to the amount at which they are stated in the
 Balance Sheet and provision for all liabilities have been made in the
 Accounts, which has been relied upon by the auditors.
 
 7 In compliance with the accounting standards 15 (revised 2005)
 Employee Benefits The company has got the employee benefits evaluated
 from actuarial valuer.
 
 The Company has calculated the various benefits provided to employees
 as under:
 
 A.  Provident Fund
 
 During the year the Company has recognized Rs. 58.45 Lacs (previous
 Year Rs. 51.69 lacs) towards contribution to PF in the Profit and Loss
 account.
 
 B.  State Plans
 
 Employer''s contribution to Employee State insurance and to welfare fund
 During the year the Company has recognised Rs. 6.39 lacs (Previous year
 Rs. 3.65 Lacs)towards contribution to ESI and Rs.  0.18 Lacs (previous
 Year Rs. 0.027 Lacs) towards welfare fund, in the Profit and Loss
 accounts.
 
 C.  Defined Benefit Plans
 
 The actuarial valuation carried out is based on following assumption:
 
 a) Leave Encashment
 
 b) Contribution to Gratuity Fund - Employee''s Gratuity Fund.
 
 8 The Company has not received any intimation from suppliers
 regarding their status under the Micro, small and Medium Enterprises
 Development Act, 2006 and hence disclosure, if any, relating to amounts
 unpaid as at the year end together with interest paid/payable as
 required under the said Act have not been furnished.
 
 9 Previous year figures have been regrouped/reclassified wherever
 considered necessary.