B. Contingent Liabilities and Notes:

1. Contingent Liabilities:

(a) Contingent Liabilities of the Company at the end of the year is Nil, (Previous Year Nil) as Company had not enjoyed any Letter Of Credit/ Bank Guarantee facility of any commercial/ Financial Institution nor any civil/criminal case is pending against company.

2. Notes to Accounts:

(a) Share Capital:

During the year. Company has received share application money amounting to Rs. 18,75,10,000/-. Out of Rs. 18.75.10.000/-, Company has allocated shares for Rs. 6,80,00.000/-(20,00.000 shares @ Rs. 34/-; Rs. 10 base price plus Rs. 24 Security Premium) during the year. Balance 11.95,10.000/- lying in book of account as share application money pending for allotment.

(b) Balances of sundry debtors, creditors and loans and advances, unsecured loans are unconfirmed and subject to reconciliation wherever necessary.

(c) In the opinion of the management, all the current assets. Loans and advances and deposits are realizable at value stated in the ordinary course of the business which are at least equal to the amount at which they are stated in the books unless otherwise explicit.

(d) There are no small scale industrial units which has supplied the material to the company and the owes a sum exceeding Rs. 1 Lac and which is outstanding to more than 30 days.

(e) Aggregate director's remuneration Rs.0.12 lacs (previous year Rs.0.12 lacs). The remuneration of directors are as per the approval accorded by remuneration committee, shareholder and central Government as per the previous of section 311 read with Schedule XIII of the Companies act, 1956.

(f) Aggregate auditor remuneration is fixed which includes Audit fees Rs.1,00.000/- (Previous year Rs.1,00,000/-) Tax Audit Fees Rs NIL ( Previous year Rs 45,000/-),

(g) Previous year figures are regrouped /reclassified to make them comparable with the current year.

The Company operates business of i.e. “l.T. business” & Trading business”, the activities to the business are inter connected / inter mix, it is not possible to directly attribute or allocate on a reasonable basis the expenses / assets and liabilities to these segments. As per requirement of Accounting Standard (AS) 17- “Segment Reporting” issued by the Institute of Chartered Accountants of India.

Note: 3 Cash Flow Statement:

Cash flows are reported using the indirect method, whereby Profit / (Loss) before extra ordinary items and tax is adjusted for the effect of transaction of non-cash nature and any deferrals or accruals of past or future cash receipts or payments the cash flows from operating, investing and financing activities of the company are segregated based on the available information.

Cash and Cash Equivalents

Cash comprises cash on hand and demand deposit with banks. Cash equivalents are short-term balances (with an original maturity of three month or less from the date of acquisition), highly liquid time deposit that are readily convertible into know amounts of cash and which are subject to insignificant risk ot changes in value.