2. Term loans from Housing Development Finance corporation Limited are secured by first mortgage of office premises carries interest @ 17.5% and is overdue.

3.SBI, Syndicate bank, Bank of india, Eximbank&UBI issued notices for repayment of term loans under Surface Act.

4.Working capital facilities from State bank of india,Bankof india,Union bank of india,Andhra bank,Syndicate bank are secured by first charge over current assets of the company and coveredby second charge over the fixed assets of the company on pari passu basis alongwith the personal guarantee of Sri Harish Cherukuri promoter and Sri C.K Rao Executive Vice Chairman of the company.Specified fixed assets are subject to first charge in favour of the term lending institutions to cover their term loans.The working capital is repayable on demand and carries interest @14.75% to 17.50%PA. SBI,BOI,,UBI,Andhra Bankand Syndicate Bankhave issued notices for repayment under Surface Act.

5.In order to restructure the secured loans of all banks both term loan and working capital the company has offered OTS..Interest on trem loan and working capital outstanding and not debited by banks amounting to Rs 561.30lakhs.have not been taken in to accounts in view of the oTs proposal

6. Contingent Liabilities                31march 2014       30June2013
                                          Rs in lakhs       Rs in lakhs

Letters of credit                               0.00             0.00

Bank Guarantees Issued by banks                52.30            52.30

Claims against the company not 
acknowledged as debts                         131.81           131.81