The Term Loan of Rs.2000 lakhs due in March 2013 and the interest accrued and due thereon up to 31.3.2015 amounting to Rs.596.47 lakhs is outstanding as on 31.3.2015 - Refer Note no.9 and 34.

The Company has a Cash Credit outstanding of Rs.21.19 crores (comprised in the total short-term borrowing of Rs.37.35 crores - Note 7) along with interest thereon Rs.3.39 crores (Note 9) are payable to Indian Bank Nariman Point, Mumbai. Also, refer Note 34 on Contingent Liabilities in relation to Interest payable.

The said bank has, as part of recovery process, issued Demand Notice dated 4.12.2013 under SARFAESI Act, 2002 and has taken in April 2015 physical possession of the properties and inventories of the running Unit at Goa including factory, resulting in cessation of business and factory operations. The said bank has also taken in May 2015/ June 2015, physical possession of the Company's properties and inventories at Mahape, Navi Mumbai. Valuation of the said properties and inventories are yet to be determined by the said Bank.

The Company has filed an Appeal with the Debt Recovery Appellate Tribunal (DRAT), Mumbai which is pending for disposal. If the outcome of the said litigation goes against the Company, it may adversely affect its financial position.

FCCBs and Interest thereon

The 0.50% Foreign Currency Convertible Bonds (due 2011), appearing under Note 3, are yet to be paid and the same is not restated as at the Balance Sheet date (AS11).

The value accreted thereon appearing under Note no.3 and 34 has not been restated as at the Balance Sheet date (AS11)

The interest payable on FCCB-coupon rate for the period 4.2.2011 to 4.8.2011 amounting to Rs.9.14 lakhs appearing under Note no.9 has not been restated as at the Balance Sheet date (AS11)

A petition has been filed in the Bombay High Court by State Bank of India for recovery of their part of the alleged investment in the said FCCB, which is disputed, as State Bank of India is not the bondholder.

The said petition is pending for admission. In case the petitioner succeeds in the said litigation, it will affect adversely the financial position and the Going Concern status of the Company.

Reference to BIFR

The financial statements indicate that the Company has accumulated losses of Rs.80.13 crores as on 31.3.2015 and its net worth has been fully eroded

The Company has incurred a net loss of (-) Rs.31.91 crores and net cash loss of (-) Rs.30.49 crores during the current year (previous year's net loss (-) Rs.42.94 crores and net cash loss of (-) Rs.41.91 crores, respectively)

The Company has filed an application with the Board for Industrial and Financial Reconstruction (BIFR), New Delhi registered at sr.no.44/2014.

The Company's current liabilities exceeded its current assets as at the balance sheet date. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. However, the financial statements of the Company have been prepared on a going concern basis in view of the continuance of the business operations of the Company in respect of Maintenance and servicing of Computer systems.