01.  CONTINGENT LIABILITIES :
 
 A.  The contingent liabilities may exist in respect of pending
 assessment with income tax, sales tax, excise duty etc, where the
 amounts are not ascertainable.
 
 B.  The Company has not provided a liability of Rs. 1940050 on account
 of penalty u/s 271 E of the IT act 1961,for the A.Y. 2001-02 and the
 company is preferring a appeal in ITAT(APPEAL) for waiver of same.
 
 C.  An appeal preferred by the company for A.Y. 2001-02 against
 addition of Rs.113.38 lacs by assessing officer has been decided in
 favour of the company,,however the department has gone to Tribunal for
 the same.
 
 02.  The Company has not provided for Gratuity and leave encashment to
 employees on accrual basis, which is not in conformity with AS-15
 issued by ICAI. However, in the opinion of management the amount
 involved in negligible and has no impact on profit & loss account.
 
 03.  Earnings on foreign exchange - NIL.
 
 04.  Value of Import on C.I.F. Basis - NIL.
 
 05.  Value of foreign currency loan at year end Rs. NIL.
 
 06.  Figures of previous year have been regrouped, recasted and
 rearranged wherever necessary to make them comparable.
 
 07.  In the opinion of Board, the current assets, loans and advances
 are approximately of the value stated in the Balance sheet if realised
 in the ordinary course of business.
 
 08.  Stock has been valued, verified & Certified by the Management.
 
 09.  Amount is rounded up to nearest of rupees.
 
 10.  CONFIRMATION OF BALANCES The accounts of sundry debtors, creditors
 and other parties are as per books of the concern. These balances are
 subject to confirmation from respective parties.
 
 11.  In cases where the vouchers and / or supporting are not available
 it has been accepted as per the information and explanations given to
 us by the management and as per the books of accounts maintained by the
 company that the expenses have been incurred wholly & exclusively for
 the purpose of business or for creation of the assets as the case may
 be.
 
 12.  Provision for taxation for the year under consideration has been
 made as per the provision of income tax Act, 1961.
 
 13.  RELATED PARTY DISCLOSURE
 
 Related party disclosure as required by Accounting Standard 18 Related
 Party Disclosure are given below:-
 
 1.  Name of Related Party and its relationship
 
 a) Associated Companies
 
 Kushagra Software Ltd.  Handful Investrade Pvt. Ltd.
 
 b) Key Management Personnel
 
 Girraj Kishore Agrawal Managing Director
 
 Rajiv Agnihotri Director
 
 Madhvi Agnihotri Director
 
 Tanu Agrawal Director
 
 Bankeylal Agrawal Director
 
 Ashwin Trivedi Director
 
 NOTE: Related party relationship is identified by the Management and
 relied upon by the auditors.
 
 2.  Transaction carried out with related parties referred above in
 ordinary course of business.
 
 Particulars Key Management Personnel Other
 
 Remuneration Nil (Nil) Nil
 
 Loans & Advances Nil Nil
 
 3.  Secondary Segment Information
 
 The Company operates only in the Indian Market so there are no
 reportable geographical segments.
 
 14. There are no parties, which can be classified as small-scale
 undertaking to whom the company owes a sum exceeding Rs. 1 Lacs, which
 is outstanding for more than thirty days.