1. During the year under consideration, the Company has entered into a
 Memorandum of Understanding with Sriven Infotech Limited for transfer
 of certain movable property consisting of Computers & Peripherals (Rs.
 1,32,04,000/-), Office Equipment (Rs. 16,73,000/-), Furniture &
 Fixtures (Rs, 18,00,000/-), Electrical Fittings (Rs.17,07,000/-)
 Vehicles (Rs, 28,03,000/-), and immovable property (Hitec City
 property) being property situated at Q4-A1, 10th Floor, Cyber Towers,
 Madhopur, R.R. Dist. admeasuring 4,943 sq. ft.
 
 The above property was acquired at its book value, whereas the movable
 properties were acquired at agreed values as per valuation certificate.
 
 The Company has agreed to discharge loans secured on the charge of the
 above assets namely
 
 a) Rs. 88,59,106 due to Indian Overseas Bank on Hitec Property
 
 b) Rs. 84,790 due to Cholamandalam Investment & Finance Company Ltd. on
 Maruti Car
 
 c) Rs. 1,99,834 due to Countrywide Finance Ltd. on Maruti Car
 
 d) Rs. 1,68,269 due to Maruthi Countrywide Auot Financial Services Ltd.
 on Maruti Car and also adjusted the loans and advances (due from Mr. V
 V Subrahmanyam and Dr. Neeraj Raj, under an agreement entered into by
 them with the erstwhile management) to the extent of Rs 97,18,291/-,
 resulting in no cash out-flow to the company.
 
 The Company has taken over the physical possession of assets on 30th
 June, 2000 and hence the above transaction has been incorporated in the
 books of account of the Company on 30th June, 2000.  The necessary
 legal formalities for take over of the assets and liabilities are in
 progress.  Further, the Company has made a provision for stamp duty and
 registration for transfer of above property.
 
 2. Restructuring Account
 
 The management as on 30th June, 2000 has reviewed the status of various
 assets and liabilities acquired during construction period and all the
 assets which in the opinion of the management may not be realizable
 have been adjusted against similar liabilities incurred during the
 construction period which may not be payable and against the
 outstanding balance in share forfeiture account and the net balance of
 Rs. 21,26,749/- has been transferred to Restructuring Account.  The
 Company proposes to write off the balance of Rs. 21,26,749/-
 proportionately over a period of five commencing from 30th June, 2000.
 
 3. Notes to Accounts :
 
                                                     1999-00     1998-99
                                                        Rs.          Rs.
 Contingent liabilities not provided for
 
 i) Estimated amount of contracts remaining        93,15,571         Nil
 to be executed on capital account (net of
 advances)
 
 ii) Towards Bank Guarantee                         4,10,000         Nil
 
 iii) On account of Letter of credit               14,98,522         Nil
 
 b) The amount paid or provided by way of
 remuneration to Managing Director and
 
 Executive Director :
 
 Salaries & Allowances                             10,48,000         Nil
 
 Perquisites                                        2,21,825         Nil
 
 c) Remuneration to Auditors
 
 Audit fee                                            35,000      10,000
 
 Other Services                                        Nil          Nil
 
 d) CIF Value of Imports
 
 Capital goods                                   1,45,44,323         Nil
 
 e) Expenditure in Foreign Currency
 
 Travelling                                        62,89,912         Nil
 
 Others                                          2,37,21,745         Nil
 
 f) Earnings in Foreign Currency
 
 Export Income                                   1,89,33,500         Nil
 
 Other Income                                         18,365         Nil
 
 g) In the opinion of the management of the Company, the current assets,
 loans and advances have a value on realization in the ordinary course
 of business at least equal to the amount at which they are stated
 unless specifically mentioned otherwise and provisions for all known
 liabilities has been made.
 
 h) Sundry debtors, sundry creditors, other liabilities, loans and
 advances, advances from customers etc. are subject to confirmation and
 reconciliation.
 
 i) The Company has no information as to whether any of its suppliers
 constitute Small Scale Undertaking and therefore, the amount due to
 such suppliers has not been identified.
 
 j) Bank balances include certain accounts aggregating Rs.49,67,012/-
 for which neither statement of account nor confirmation of balances
 have been received.
 
 k) Loans & Advances
 
 Loans and advances include Rs, 185.78 lacs extended by the earlier
 management, which is irrecoverable.  The Board has vide board
 resolution dated 30th June, 2000, decided to write off the same over a
 period of next three years.
 
 Loans and advances include Rs. 372.95 lacs due from directors of the
 company as a part of agreement entered into by Mr V.V. Subrahmanyam, Dr
 Neeraj Raj and Sriven Employees Foundation Trust with erstwhile
 promoters of the Company for takeover of liability to company on behalf
 of earlier promoters.  Of total advances of Rs. 570 lacs, an amount of
 Rs.197.05 lacs have already been recovered during the year and the
 balance will be recovered within 3 years.
 
 l) Investments
 
 During the year, the Company has received as a group company adjustment
 15,00,000 Equity Shares of Rs.10/- each of Boss Securities Limited from
 earlier promoters vide agreement entered into dated 2nd April 1999,
 These Shares were acquired form the esterwhile management without any
 cash outflow to the company
 
 4. Information pursuant to the provisions of Part IV of the Schedule VI
 of the Companies Act, 1956.