1.  Contingent liabilities not provided for:
 
 Particulars .               As at                        As at
                           31-03-2010                   31-03-2009
 
 a) Income Tax Matters      *396.57 Lacs               396.57 Lacs
 
 b) Custom Duty on Import 
 of Commercial Aircraft 
 (Amount paid under
 protest                   Rs. 236.82 Lacs**)          236.82 Lacs 
 
 
 c) Un-Expired Bank 
 Guarantees and Letters 
 of Credit                       NIL                    15.00 Lacs
 
 
 *The Company has been assessed U/S 143(3) for the A.Y. 2006-07 by the
 Income Tax Department and the assessing officer has made certain
 additions to the returned income of the assessee resulting in creation
 of additional demand of Rs. 396.57 Lacs. The company has filed appeal
 against above referred demand with appellate authority which is pending
 for disposal. The management of the company has been advised that the
 order of the assessing officershall not tenable before income tax
 appellate authorities hence there will be no liability towards income
 tax.
 
 **The company was issued an enquiry notice by the Superintendent of
 Customs (Preventive) in F. Y 2008-09 in connection with Custom duty on
 import of Commercial Aircraft by the Company in the F.Y. 2007-08.
 During the course of proceedings before above said authority the
 Company was asked to deposit a sum of Rs. 236.82 Lacs as additional
 Custom Duty. The company had deposited the said amount in F.Y. 2008-09
 under protest to safeguard its interest. The matter is still pending
 for disposal before the Customs Authorities. The company has been
 advised that the contention of the Customs Authorities is not tenable
 hence there shall be no liability for payment of additional customs
 duty.
 
 2.  Capital Commitments:
 
 Estimated amount of contracts remaining to be executed on Capital
 Account (Net of Advances) and not provided for amounts to Rs.
 NIL(PreviousYear: NIL)
 
 3.  Secured Loans:
 
 a) Loans from banks amounting to Rs. 3,79,066/- (Previous Year Rs.
 99,98,127/-) and from NBFCs/Others amounting to Rs. 4,29,245/-
 (Previous Year Rs. 3,34,97,932/-) are secured by way of hypothecation
 of commercial/non-commercial vehicles acquired out of loan proceeds
 received by the Company.
 
 b) Term Loan of Rs. 4,66,45,186/- (Previous Year Rs. 5,98,70,786/-)
 taken from State Bank of India, Nehru Place, New Delhi is secured by
 way of hypothecation of companys air craft and its present/future
 accessories, spares & parts, etc purchased out of term loan proceeds.
 The Term Loan is further secured by way of Equitable Mortgage of
 properties belonging to a relative of a Director and Associate Company.
 The said loan is also secured by way of personal guarantee of Mr. Kunal
 Lalani, Chairman & Managing Director of the Company, Mrs. Vimi Lalani
 wife of Mr. Kunal Lalani and corporate guarantee of M/s
 CrayonsAdvertising Limited.
 
 4.  In the opinion of Board of Directors the Current Assets, Loans and
 Advances have a value on realisation in the ordinary course of
 business at least equal to the amount at which they are stated in the
 Balance Sheet.
 
 5.  During the year the Company has transferred its Radio Taxi Services
 Division along with all of its assets and liabilities to M/s Mega Cabs
 Limited on a going concern basis with effect from 01-11-2009 under a
 Business Transfer Agreement (BTA) at a consideration of Rs. 375 Lacs.
 
 6.  Balances of Debtors, Creditors, Loans & Advances and Unsecured
 Loans are subject to confirmation and reconciliation adjustment, if
 any.
 
 7.  The Board has certified that all the income accrued to the company
 has been taken into consideration and belong entirely & exclusively to
 the business of the Company.
 
 8.  The total Share Capital of the subsidiary, Mega Holidays Ltd. Rs.
 30 Lacs and accumulated losses said subsidiary as at 31-03-2010 is Rs.
 29.87 Lacs (Previous Year 29.39 Lacs). The investment made by the
 Company is strategic in nature and in the opinion of Board of Directors
 of the Company the subsidiary is expected to make profits going
 forward. As such, above diminution, in the opinion of management being
 temporary in the nature does not require to be recognised in the
 accounts.
 
 9. Loans and Advances in the nature of Loans given to Subsidiaries and
 Associates etc:
 
 10.  In the absence of receipt of information regarding small scale
 industrial status from the parties, the details of names of small scale
 industrial undertaking to which the company owe any sum together with
 interest outstanding for more than 30 days could not be ascertained.
 
 11.  Sundry Debtors of the Company includes a sum of Rs. 39,15,778/-
 (Previous Year Rs. 2,76,945/-) due from Companies in which Directors of
 the Company/their relatives are interested as Directors. Maximum amount
 due during the year was Rs. 39,15,778/- (Previous Year Rs. 3,90,396/-)
 
 12.  Advertising Expenses includes a sum of Rs. 1,17,013/- (Previous
 Year Rs. 1,43;695/-) paid to a company in which directors of the
 Company are interested as Directors.
 
 13.  The Companys main business activity during the year was operation
 of Radio Taxi & Air Charter Services. Owing to the nature of operations
 of the Company it is not possible to give the quantitative details of
 safes & services and certain other information which is required under
 paragraph 3,4C & 4D of part II of Schedule VI to the Companies Act,
 1956.
 
 14.  Employee Benefits:
 
 The company is in process of adopting AS -15 (Revised) issued by the
 Institute of Chartered Accountants of India in respect recognition of
 Retirement Benefits in the Financial Accounts. So far no actuarial
 valuation has been carried out in respect of Gratuity Liability or
 liabilities in respect of other retirement benefits payable by the
 Company therefore any impact thereof on the Profit or Loss of the
 Company forthe year, ifany, is not quantifiable.
 
 Presently as per the policies of the company the following benefits are
 being provided to the employees:
 
 Provident Fund - Contributions made by the company are periodically
 deposited with appropriate authorities and charged to
 
 Profit & Loss Account
 
 Gratuity -Gratuity Liability is provided on the basis of in house
 calculation made in accordance with the provisions of Payment of
 Gratuity Act, 1972 at end of each financial year.
 
 Leave Encashment- Provision for Leave Encashment payable to the
 employees is provided on the basis of in house calculation
 made by the Company and charged to Profit & Loss Account.
 
 15. SEGMENT REPORTING POLICIES:-
 
 (a) Identification of segments
 
 (i) Primary Segments
 
 Business Segment: The Companys operating businesses are organised and
 managed separately according to the nature of operations with each
 segment representing a strategic business unit that carries out
 different operations.  The Company has three identified segments
 comprising of Radio Taxi Operations, Aircraft Charter Services and
 Finance & Investments.
 
 (ii) Secondary Segment
 
 Geographical Segment: The Company does not have any identified segment
 on the basis of geographical locations as companys operations are
 mainly confined to single location.
 
 (b) Unallocable Items
 
 Corporate income, expenses, capital & reserves are considered as part
 of unallocable items which are not identifiable to any business
 segment.
 
 16. Disclosures in respect of Related Parties as defined in Accounting
 Standard (AS) 18, with whom transactions were carried out in the
 ordinary course of business during the year as given below:
 
 A.  Subsidiary Companies (Direct Holding)
 
 Mega Airways Ltd. and Mega Holidays Ltd.
 
 B.  Other Associate Concern where common control exists and with whom
 the Company had transaction during the year
 
 Crayons Advertising Ltd., Plasopan Engineers (I) Pvt. Ltd., Omni Media
 Communications Pvt. Ltd, Mega Cabs Ltd., Tabasko Hospitality Pvt. Ltd.,
 Kolkata Call Taxi Pvt. Ltd., Indication Instruments Ltd. and Vimi
 Investments & Finance Pvt. Ltd.
 
 C.  Directors, Key Management Personnel and their relatives
 
 Mr. Kunal Lalani Chairman & Managing            Director
 
 Mr. Manish Dhariwal Whole Time                  Director
 
 Mr. Surendra Chhalani Whole Time                Director
 
 Mr. H. M. Lalani, Capt
 A. K. Soni, 
 
 Mr. Sachin Mehra, andAVM K. S.
 Venkataraman (Retd.)                            Directors
 
 Mr. T M. Lalani & 
 
 Mr. Vishal LalaniRelatives of
                                                Directors