1. Cost of Production:

Estimation of cost of serials ‘under production’ being of technical nature, cannot be verified by the Auditors and have been taken as certified by the Management of the Company.

2. During the financial year 1997-98 search action was carried out by the income-tax authorities at the premises of the company u/s.132 of the Income Tax Act, 1962 and assessment for the same was completed on 31-01-2000 thereby resulting in a demand of Rs.48,30,381/- on the company. As against the said demand the company has paid Rs.41,07,093/-. The Company disputed the demand raised by the Income Tax Department and filed an appeal against the order before the Commissioner of Income Tax (Appeal) who has partly allowed it to the extent of Rs.31,00,524/-. The Company disputing the balance liability has gone in to appeal before Income-tax Appellate Tribunal, the order of which went in the favour of the company. Further the department had gone into appeal before the High Court and the matter is still pending before the said authority.

3. Previous year’s figures have been re-grouped, re-arranged, re-classified and re-casted wherever necessary to make them comparable with current year’s figures.