1(a) Secured Loans:
 
 The settlement due to EXIM Bank (CP No. 243 of 2008), Dhanalakshmi Bank
 assigned to Pridhvi Assets Reconstruction vide O.A No. 95 of 2003 and
 AXIS Bank assigned to Phoenix Assets Recovery Construction vide OA Nos.
 7 of 2004 & 76 of 2005 which is pending before the Debt Recovery
 Tribunal (DRT) have been settled by using the proceeds from the
 dis-investment of Mayajaal Entertainment Ltd equity shares as per the
 order of Company Law Board, Chennai, dated 01.03.2011 and said shares
 have been extinguished vide corporate action taken by the company
 through NSDL on 21.04.2011.
 
 1(b) Claim against the company not acknowledged as Liability:
 
 Dallah Albaraka, Ireland
 
 Dallah Albaraka, Ireland (DAL) obtained an exparte decree before the
 High Court of Justice Queen''s Bench Division London against M/s.
 Pentasoft Technologies Limited for the corporate guarantee issued by
 them. Company Petition seeking an order of winding up (No.134 of 2008)
 filed by DAL was dismissed by a single judge in the High Court of
 Madras vide order dated 16.12.2008 for want of merits. DAL appealed
 against the single judge order (OSA Bo. 27 of 2009& M.P. No. 1 of 2010
 Pentamedia Graphics Ltd was made respondent as Pentasoft Technologies
 Limited merged with Pentamedia Graphics Limited during October 2008)
 and the same was also dismissed by the bench of the High Court of
 Madras vide their order dated 07.07.2010 on same lines of the single
 judge order. DAL also filed an unnumbered petition under Regulation 44
 of Company Law Board Regulation seeking to set aside order pertaining
 to the buyback of Mayajaal Entertainment Ltd shares. This petition too
 was rejected by the Company Law Board vide their order dated 11.01.2012
 stating that there is no merit in the DAL''s application, also due to
 the fact that the applicant is yet to establish its status as creditor
 of Pentamedia Graphics Ltd and cannot be held with certainty that it
 will be entitled to any reliefs even if the company petition is
 dismissed. After DAL moved Execution Petitions (No. 299 & 300 0f 2011)
 seeking attachment and sale of moveable and immovable property of
 Pentamedia Grapics Ltd. However both the Execution Petitions were
 dismissed by the Master Court of Chennai, vide their order dated
 20.01.2012 stating that both of them are not maintainable and not
 executable with the decree obtained by them which is not on merits and
 without the prior permission from Reserve Bank of India or Central
 Government of India. DAL filed a review petition and got the case heard
 once again and also got the order that Executive Petitions are
 maintainable against the assets of Pentamedia Graphics Ltd. Now
 Pentamedia Graphics Ltd has appealed (Appeal No. 2801 of 2012) against
 this order and DAL has sought time for reply.
 
 According to the information and explanation given to us there are no
 dues of income tax, wealth tax, sales tax, custom duty, excise duty and
 cess which have not been deposited on account of any dispute except in
 the following cases.
 
 Income Tax:
 
 The Company has obtained stay orders against Income Tax demands and
 have been in touch with the Income Tax Department to settle the issues
 regarding demands and refunds. The volume of claims/refunds cannot be
 quantified now.
 
 2.  Confirmation of balances/Reconciliation is pending in respect of
 certain Banks/Loans and Advances/Sundry Debtors/ Sundry creditors''
 unclaimed dividend and other liabilities. Adjustments if any which may
 arise upon completion of confirmation/reconciliation will be dealt with
 upon confirmation/completion of reconciliation.
 
 3.  The Company has recognized deferred tax liability (Net) Rs. 1.97
 cores as per the requirements of Accounting Standard 22.
 
 4.  DUES TO SMALL SCALE INDUSTRIAL UNDERTAKINGS
 
 As of 31st March 2012 the Company has no outstanding exceeding Rs.100
 thousands to Small Scale Industrial Undertakings as defined under the
 Industrial Development Regulation Act, 1951.
 
 5.  PREVIOUS YEAR COMPARATIVES
 
 Schedule VI to the Companies Act, 1956 is revised effective from 1
 April 2011 and has significantly impacted the disclosures and
 presentation made in the financial statements. Previous year''s
 figures have been regrouped / reclassified wherever necessary to
 correspond with the current year''s classifications / disclosures.
 
 6.  All figures are rounded off to nearest in thousands.