Investments are stated at cost of acquisition.

2) Taxes on Income: deferred tax is recognized on account of timing differences being the difference between taxable income and accounting income.

3), Related Party Information

a. Relationship- N.A.

b. Purchases of Rs. NIL (Rs. NIL)

c. Balance as on 31.03.2010- Rs. Nil (Rs. NIL)

4) Foreign Exchange Outgo:

a) C1F Value of lmports Rs. 1,45,29,045/- equivalent to US$ 306,148/-

b) Foreign exchange expenses on account of traveling Rs. 1,52.680 equivalent to US$ 3.000/-

5)The Registrar of Companies had initiated legal proceeding against certain violations/irregularities committed by Company in earlier years, as the matter is sub-judice the financial implication of such irregularities cannot be quantified. Alleged offences for violation of the provisions under Companies Act. 1956 are compoundable under section 62 A of the Companies Act, 1956. The Company is in the process of filing compounding applications for compounding these offences and withdrawal of the complaints under section 621 A(4)(d)of the Companies Act, 1956.

6) The Company's Income Tax assessments have been completed to the Assessment Year 2007- 08 and Company. The liability, if any on account of pending income tax and sales tax assessments will be accounted in the year of assessment.

7) Investments include an amount of Rs. 97.00.000/-. due from erstwhile subsidiary Company Goldhammer Securities Ltd., as the entire net worth of the subsidiary company has been eroded and the application u/s 560 of the Companies Act. 1956 has been made for striking off the name of the Company from the Register of Companies. Even though some of the [receivables of the subsidiary company have been taken over by the Company the realizability of investments in subsidiary company totally amounting to Rs. 97,00.000/- is doubtful. However pending disposal of the application U/S 560. no provision has been made in accounts for this doubtful amount.

8) The Company has not made provisions for interest on loan of Rs.24,96,960/- from Punjab & Sind Bank (this liability has arisen on account of invocation of Bank Guarantee given to (National Stock Exchange). The Bank had filed case against the Company in DRT for recovery of this amount, which case was dismissed by the DRT on 04th March 2004 on the merits of the case. The Bank has tiled its appeal at the DRAT against the order of the DRT and as informed to us the said appeal is not yet heard.

9) In violation of a Compromise Memorandum of Understanding executed with the Company Priya Ltd., a decree was obtained by the party against the Company in a pending litigation for an unjustified amount of Rs.48,89,115/-. The Company is negotiating with the party for Settlement.

10) Contingent Liabilities: Show cause notices are not considered contingent liabilities unless converted into demands.

11) Sundry debtors include an amount of Rs. 4,27,232/- due from an Ex- Director. The said debt balance has arisen on account of share trading done by the said director in NSE division in earlier years.

12) The Company has not held certain investments in its own name.

13)Balances of Loans/Advances/Sundry Creditors and Debtors are subject to confirmation.

14) ln respect of interest free business loans given, we are not able to comment upon the recovery of these funds in absence of relevant information / confirmation and documentation.

15) Previous year's figures have been regrouped/ re-arranged, wherever necessary.