The Company's main business activities are Management Consulting, providing Debt Recovery Advise, Consultancy in Financial, Commercial, Legal, Direct and Indirect Taxation, Other Levies, Statistical, Accountancy and Other Fields. The Company is having Registered Office / Head Quarter in Mumbai. The Company has no branches.

2. Contingent Liabilities:

Sl.  Particulars                 Current Year         Previous Year
No.                                  (Rs.)              (Rs.)

1    Interest Tax                  21,07,307/-          21,07,307/-

2    Labour Court, Civil          22,37,000/-          29,16,205/-
     Court and Consumer
     Forums

3    Foreign Exchange            5,60,00,000/-        5,60,00,000/-
     Management Act

4    Disputed Sales Tax            3,47,979/-            3,47,979/-
     Demands

5    Sub-Regional Office,          21,06,154/-           21,06,154/-
     Employees' Provident
     Fund, Vash

6    Bank of India                   2,50,000/-                Nil

Sl.    Particulars            Current  Status
No.

1      Interest Tax           Under Appeal by Income Tax
                              Department in High Court

3      Foreign Exchange       Under Appeal  before the Appellate
       Management Act         Tribunal for Foreign Exchange,
                              New Delhi. The Company has however
                              provided Rs.3,00,00,000/- as
                              Contingent Provision out of
                              abundant precaution.

4      Disputed Sales Tax     Under Appeal before the respective
       Demands                authorities

6      Bank of India          Final Liability on account of
                              amount payable to Bank of India
                              towards Debenture Trusteeship
                              Fee for the period of Seven Years
                              from the Financial Year 2008-2009
                              to 2014-2015.

Bank of India has filed a case against the company with the Hon'ble Bombay High court for Rs. 166,34,72,817/- in the capacity of trustee for certain series of Debentures which is in appeal and the Company does not expect any liability in this matter. The Residual Assets are under charge to the trustees in terms of trust deed. Following the Consent Terms filed in the Hon'ble Bombay High Court, the suit has been disposed.

4. Scheme of Compromise and Arrangements

The Company has since made all the payments due as per the sanctioned scheme except Security Depositors who have not yet claimed and the T Series Debenture Holders who have not yet surrendered their Debenture Certificates whose payment shall be made as per the Consent Terms being finalised with Debenture Trustees.

5. Non Confirmations and Reconciliations of Banks

In respect of Current Accounts with banks amounting to Rs. 19,09,589/- (net) [Previous Year Rs.22,24,100/- (net)] which includes book debit balance of Rs. 20,86,427/- and book credit balance of Rs. 1,76,838/-, statements of account were not being received; including from 2000-2001 in some cases.

6. During the year 2004-2005 the company has accounted for the immovable properties acquired in satisfaction of claims valued at Rs.59,76,429/-. Though the company is in possession of the property, completion of documentation is pending.

7. Most of the company's debtors are fully provided / written off and have been suit filed or not traceable. In the past the Company had circulated confirmation letters to debtors/advances. As most of these companies' latest addresses are not available, the Company has not sent any confirmation letters this year. The Company has not circularised confirmations for Sundry Creditor Balances.

8. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act have not been given.

9. The Company is in possession of 3,00,000 shares of Sunanda Capital Services Limited. Pending for transfer of these shares in the name of the Company, the same is not taken as investments in the books.

10. As required by Accounting Standard - 18 issued by The Institute of Chartered Accountants of India, Related Party Disclosures are as follows:

A. Subsidiary Company

Maximus Securities Limited (Formerly known as Mafatlal Securities Limited)

B. Associate Companies

Garron Shares and Stock Brokers Private Limited Garron Trading Company Private Limited Hybrid Systems Limited Hybrid Services and Trading Limited (Formerly known as Sunanda Service and Trading Limited) Sunanda Capital Services Limited Sushmita Engineering and Trading Limited

C. Key Management Personnel

Mr. N. R. Divate and Mr. K.Chandramouli

11. The Company has complied with AS-22 "Accounting for taxes on Income", issued by the Institute of Chartered Accountants of India; accordingly, the opening deferred tax asset and as well as for the year has not been accounted on the grounds of prudence.

12. The company has taken Office premises on Operating Lease and Lease Rent amounting to Rs. 1,83,000/- (Previous Year Rs. 1,53,000/-) was paid during the year has been debited to Statement of Profit and Loss. The future minimum lease payment is as under:

13. Exceptional Item represents an amount of Rs.1,40,038/- paid towards Satisfaction of an Award to Ex-Employee by Labour Court.

14. Comparative financial information (i.e. the amounts and other disclosures for the previous year presented above as corresponding figures), is included as an integral part of the current year's Financial Statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been reworked, regrouped, rearranged and reclassified wherever necessary to correspond to figures of the current year.

15. Figures have been rounded off to the nearest rupee and expressed in thousands.