Mega Corporation

1.  Contingent liabilities not provided for:
 
 There was no contingent liability, disputed demand or claim against the
 company acknowledged as debt as on 31-03-2008. (Previous Year NIL)
 
 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
 (Previous Year: 9.78Crore)
 
 3.  Secured Loans:
 
 a) Loans from banks amounting to Rs. 24,362,846/- and from NBFCs/Others
 amounting to Rs.  35,815,026/- 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. 68,866,920/-taken from State Bank of India, Nehru
 Place, New Delhi for purchase of commercial aircraft is secured by way
 of hypothecation of 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 Directors of the Company, their relatives and Associate Companies
 consisting of residential building/flats etc. situated in New Delhi.
 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 Crayons
 Advertising Limited. The amount of availed Term Loan is Rs. 645.75 Lacs
 and current rate of interest is 12.75%. Repayment of the said loan is
 to be made in 72 monthly installments.
 
 4.  Extraordinary Items - Change in method of Depreciation
 
 During the previous year, the Company had changed the method of
 depreciation in the case of Commercial Cars from written down method to
 straight line method. Because of the change in the method of
 depreciation, the company has credited the excess depreciation upto
 31st March 2007 amounting to Rs. 6,333,323/- as Depreciation written
 back.
 
 Had the change has not taken place, the profit before tax for the
 previous year would be reduced from Rs. 19,376,798/- to Rs.
 2,182,084/-.
 
 5.  The Company has acquired a Charter Aircraft, Pilatus (PC-12) during
 the year. Since company could not commence operations during the year,
 all expenses relating to this, incurred during the year amounting to
 Rs. 56.95 Lacs has been treated as Pre-Operative expenses.
 
 6.  Provision for current Tax is made on the basis of applicable
 provisions of the Income Tax Act, 1961 and considering Assessment
 orders and decisions of the appellate authorities in companys case, if
 any.
 
 7.  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.
 
 8.  Balances of Debtors, Creditors, Loans & Advances and Unsecured
 Loans are subject to confirmation and reconciliation adjustment, if
 any.
 
 9. 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.
 
 10. The total Share Capital of the subsidiary, Mega Holidays Ltd. Rs.
 30 Lacs and accumulated losses said subsidiary as at 31-03-2008 is Rs.
 28.86 Lacs (Previous Year 27.82 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.
 
 11.  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.
 
 12.  Sundry Debtors of the Company includes a sum of Rs. 1,671,188/-
 (Previous Year Rs. 5,276,374/-) due from Companies in which Directors
 of the Company/their relatives are interested as Directors. Maximum
 amount due during the year was Rs. 5,799,114/- (Previous Year Rs.
 5,276,374/-)
 
 13.  Advertising Expenses includes a sum of Rs. 638,621/- (Previous
 Year Rs. 292,266/-) paid to a company in which directors of the Company
 are interested as Directors.
 
 14.  The Companys main business activity is operation of Radio Taxi
 Service in Delhi Metro/Delhi NCR & Chandigarh. Owing to the nature of
 operations of the Company it is not possible to give the quantitative
 details of sales & services and certain other information which is
 required under paragraph 3, 4C & 4D of part II of Schedule VI to the
 Companies Act, 1956.
 
 15. Previous Year Figures have been regrouped, reworked and
 reclassified wherever necessary.