i. Secured loans include Working Capital. Cash Credit Irom State Bank of India outstand of Rs.23,24.86,340/-(Previous Year Rs.21,34,46,850/-) secured by Hypothecation current assets in the form of raw materials, semi finished goods, stores / spar receivables and other current assets,

ii. Secured loans are secured by personal Guarantees of Executive Director and Manag Director of the Company and their personal property.

iii. Secured loans include Term loan- NIL(Previous year Rs.0.39crores) from State Ban! India.

2. Contingent Liabilities:

                                                     {Amount in Rupees)

Particulars                                        2013-14      2012-13

I     Guarantee given in the Ordinary course         Nil           Nil
      of business (gross)

II    Against bills discounted with banks            Nil          Nil

III   Claims against    the  company not             Nil          Nil
      acknowledged as debt

Provision for taxation for the current Year has been made 4,98,138/- (Previous Year Rs. 9,03,085/-)

b. Deferred Tax:

During the year, the Company has reviewed the deferred tax assets/liabilities. The timing differences mainly arising on account of depreciation has given rise to net deferred tax liability. 6,16,593 (Previous Year: NIL).

C, Quantitative Details

Having regard to the nature of item purchased t traded, furnishing of particulars regarding quart' I is not practicable. The consumption values are ascertained on the basis of opening stock p;.:S purchases less closing stock after adjustment of excess and shortage of physical court* unserviceable items etc..

3. As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the I disclosures of transactions with the related parties as defined in the Accounting Standard are given | below:

List of related parties with whom transactions have taken place and relationships:

(As certified by the management)

Subsidiary Companies

Name of the Related Party              Nature of Relationship

The Company has derived its entire revenues and expended the costs in this regard for System Integration purposes. The Company has its Systems Integration. FMS, e-governance, BOLT operations in Chennai and other parts of India. The accounting policies adopted for segment reporting are in line with accounting policy of the Company,

4. Income Tax. Excise Duty & Cess

Income Tax

Assessment year 2010-11.

The Company has declared a Taxable income of Rs.50,78,243/- (as per MAT provision) and 3;med a Tax refund of Rs. 1,97,850/-. in the assessment, the assessing officer has apportioned sr-ne expenses in Puducherry manufacturing unit bobks and has raised an additional demand of Rs 17,66,370/- on the Company. Company has preferred an appeal against the order to Commissioner Appeals Assessment Year 2011-12,

The Company has declared a Taxable income of Rs.67,55,778- (as per MAT provision) and : aimed a Tax refund of Rs.10,590/-, In the assessment, the assessing officer has apportioned yome expenses in Puducherry manufacturing unit books and has raised an additional demand of -is 7,76,540/- on the Company. Company has preferred an appeal against the order to I Comission Appeals

5. The Whole time Company Secretary has resigned and the company is in the process of recruiting whole time Company Secretary.

6. The above cash flow statement has been prepared under the Indirect method setout in Accounting Standard revise notified by Companies Accounting Standard rule 5.2006.