1.  DEBENTURES
 
 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.
 
 2.  SCHEME OF COMPROMISE AND ARRANGEMENTS
 
 The Company has since made all the payments due as per the sanctioned
 scheme except the T Series Debenture Holders who have not yet
 surrendered their Debenture Certificates and Security Depositors who
 have not yet claimed.
 
 3.  EQUITY SHARE CAPITAL
 
 The Hon''ble Bombay High Court vide their order dated 8th April 2011 has
 confirmed the reduction of Capital of the Company by cancellation of
 1,18,45,425 Equity Shares and the reduction of the paid up and face
 value per Equity Share from Rs.10/- to Rs.5/-. The Registrar of
 Companies, Maharashtra, Mumbai has registered the said reduction on
 14th June 2011 and altered the Master Data. Accordingly the Company has
 given accounting effect to the same during the Quarter Ended 30th June
 2011.  The Revised Authorised Capital of the Company is 7,00,00,000
 Equity Shares of Rs. 5/ - each and Paid up Capital of the Company is
 2,80,36,275 shares of Rs.5/- each aggregating to Rs.14,01,81,375/- and
 the Share Premium Account is Nil as on 31st March 2012.
 
 4.  NON CONFIRMATIONS AND RECONCILIATIONS OF BANKS
 
 In respect of Current Accounts with banks amounting to Rs. 32,53,369/-
 (net) [previous year Rs.77,01,461/- (net)] which includes book debit
 balance of Rs. 34,30,207/- and book credit balance of Rs. 1,76,838/-,
 statements of account were not being received; including from 2000-2001
 in some cases.
 
 5.  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.
 
 6.  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.
 
 7.  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.
 
 8. 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.
 
 9. 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
 
 (formerly known as Mafatlal Systems Limited )
 
 Mafatlal Trustee Company Limited
 
 Sunanda Capital Services Limited
 
 Hybrid Services and Trading Limited
 
 (Formerly known as Sunanda Service and Trading Limited)
 
 Sushmita Engineering & Trading Limited
 
 C.  Key Management Personnels 
 
 Mr. N R Divate
 
 Mr. K.Chandramouli
 
 10.  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.
 
 11.  The company has taken Office premises on Operating Lease and Lease
 Rent amounting to Rs. 3,00,758/- (Previous Year Rs. 7,92,540/-) was
 paid during the year has been debited to Statement of Profit and Loss.
 The future minimum lease payment is as under:
 
 12.  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 regrouped / reclassified wherever necessary to
 correspond to figures of the current year.
 
 13.  The previous year''s figures have been reworked, regrouped,
 rearranged and reclassified wherever necessary.