SQL Star International

1.  Capital Reserve
 
 Represents amounts forfeited on non subscription of 520,000 Share
 Warrants on due dates
 
 2.  ESOP Scheme
 
 The shareholders have approved in November 2005, scheme titled SQL
 ESOP 2005, which provides for an option to issue equity shares not
 exceeding 801,000 shares constituting 5% of the paid up capital of the
 company to permanent employees of the company subject to such
 conditions the Board may determine. Under this plan, Company granted
 750,000 Employee Stock Options to 37 Employees pursuant to the
 resolution passed at the extra-ordinary general meeting of the Company
 held on 30th November 2005. Out of the options granted, 645,000
 (627,500) options were lapsed due to resignation of the employees and
 105,000 (122,500)options are in force as on 31.03.2009.
 
 SQL ESOP Trust holds 159980 (159980) equity shares as on 31.03.2009
 that were allotted under the ESOP Plan in December 1998 for and on
 behalf of the eligible employees and will be offered to the Employees
 as per the terms and conditions of the ESOP Scheme-2005. The total
 options available for grant is 696,000 (678,500) as on 31.03.2009.
 
 3.  The Company has sent letter to Debtors, Creditors and Loans and
 Advances, however the company received the confirmation only in a few
 cases.
 
 4. The management has initiated the process of identify enterprises
 which have provided goods and services to the Company and which qualify
 under the definition of micro and small enterprises, as defined under
 Macro, Small and Medium Enterprises Development Act, 2006. Accordingly,
 the disclosure in respect of the amounts payable to such enterprises as
 at March 31, 2009 has been made in the financials statements based on
 the information received and available with the Company. The Company
 has not received any claim for interest from any supplier under the
 said Act.
 
 5.  Taxation
 
 a) Current Tax
 
 No provision for current Tax is made there being no taxable income both
 under normal computation and section 115 JB of the Income Tax Act,
 1961.
 
 6.  Related Party Disclosures
 
 (a) List of Related Parties where control exists: None
 
 (b) Transaction between Related Parties:
 
 i) Name of the transacting Related Parties
 
 a) Wholly owned Subsidiaries
 
 SQL Star International Inc., USA International SQL Star Pte Ltd.,
 Singapore
 
 b) Wholly owned subsidiary of US Subsidiary
 
 SQL Star International Pty Ltd., Australia
 
 c) Others
 
 Super Star Exports Private Limited
 
 Systematix Capital Services Private Limited
 
 Systematix Fincorp (India) Limited
 
 Systematix Shares & Stock (I) Limited
 
 Systematix Commodities Services Private Limited
 
 Ceepeek Real Estate Limited
 
 Rangsharda Properties Private Limited
 
 Shubhamangalam Real Estate Limited
 
 Snehavardhini Real Estate Limited
 
 Tek Point Properties Private Limited
 
 Funsign Real Estate Limited
 
 Shivshakthi Real Estate Limited
 
 Riteplaza Trading Company Private Limited
 
 Magicline Trading Company Private Limited
 
 Topcity Trading Company Private Limited
 
 Goldflog Exports Private Limited
 
 Goldlife Trading Company Private Limited
 
 Thirdwave Mercantile Company Private Limited
 
 Raneka Fincorp Private Limited
 
 Nikunj Mercantile Private Limited
 
 Systematix Corporate Services Limited
 
 Presumption of significant influence
 
 Note:
 1.Figure in brackets reprsents outflows
 2.Previous year figures have been regrouped/restated wherever necessary