Terms/Rights attached to Equity Shares

The Company has only one class of Equity shares having par value of Rs. 10/- per shares. Each shareholders of equity shares is entitled to one vote per share.

In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amount, in proportion to their share holding.

2. Deferred Tax Assets/(Liability) (Net)

Deferred Tax Assets arisen on account of Carried forward Short Term Capital Loss is not accounted in view of uncertainty as to utilisation of Deferred Tax Assets in near future.

3. Fixed Assets

Notes:

1) Pursuant to accounting standard 28 "Impairment of Assets", the company has made an assessment as at end of the year for any indication of impairment in the carrying amount of the company's assets and determine that the carrying value of the assets is less than its realizable value and hence, no provision for any impairment of assets is made in the books of accounts.

2) Please Refer Note No. 23 for Adjustment in Gross Block and Depreciation in respect of Freehold land and Shed Building.

4. Contingent Liabilities:

a. The disputed Income-tax demand of 244.95 lacs as under:

Assessment Year              Tax Demand (In Lacs)       Tax Paid under
                                                        protest/refund
                                                    adjusted (in lacs)

1989-90                                      2.65                  Nil

1990-91                                     54.90                54.90

1991-92                                    155.83               155.83

1992-93                                     31.57                31.57

Based on the decision of the Appellate authorities and the interpretations of the other relevant provision, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and hence no provision is made in the books of accounts.

5. In the opinion of the management, Loans St Advances and trade receivables have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated in the books of accounts.

6. The Loss on sale of Assets of Rs. 21,39,976/- Represent portion of the land and building at Hubli like basement storage and others having on saleable value and hence Written off in the Books of Accounts.

7. The Company is not engaged in any operational Business and Hence Segment reporting is not applicable to the company.

8. Related Party Transactions

Related party disclosure in accordance with the Accounting Standard 18-issued by the Institute of chartered Accountants of India is as under:

1) During the year there are no any transactions were carried out with KMP or their relatives in the ordinary course of business.

2) related party relationship is as identified by the company and relied upon by the auditor.

9. Balances in respect of Trade receivables, Loans & advances and Liabilities in most of the cases are subject to confirmations, reconciliations and adjustments, if any.

10. "The Micro, Small and Medium Enterprises Development Act, 2006" has come into force from October 2, 2006 which has repealed the provisions of Interest on delayed payment to Small Scale and Ancillary Industrial Undertaking Act , 1993. The Company is in communication with its suppliers to ascertain the applicability of this Act. As on the date of this Balance sheet, the company has not received any communications from any of its suppliers regarding the applicability of this Act to them. This has been relied upon by the Auditors.

11. The previous year's figures have been regrouped & recast wherever necessary to make them comparable.