Notes to Accounts of Killick Nixon Ltd.

Mar 31, 2013

I. Contingent Liabilities not provided for:

(a) Guarantees given :

(i)

By the Company : (ii) a) To third Parties - Rs. 100,000 ( Previous year Rs.100,000)

b) To other companies Rs.25,000,000 (Previous year Rs.25,000,000).

(b) Sales tax matters pending in appeal etc. Rs.2,530,470 (previous year Rs.2,530,470).

(c) Income-tax demands including interest and penalty in respect of completed assessments disputed before higher authorities Rs.851,606,538(previous year Rs.851,606,538).

II. In view of the fact that the Company''s investments in the Subsidiary Companies – Killick Impex Ltd. , Killick Shipping Services Ltd., Killick Financial Services Ltd,Killick Exports Limited and Killick Air Couriers and Forwarders Ltd and Lodestar Slotted Angles Ltd. and also investments in Air Survey Co. (I) Ltd, Prime City Capital Trust Pvt Ltd, Prime City Trading & Investments Pvt Ltd, Tribune Investments & Trading Co. Pvt. Ltd, Suchindram Investments Pvt. Ltd,, Arjav Investments Pvt. Ltd, Pelican Paints Ltd, Killick Guard Speciality Products Limited (Formerly known as Killick Agencies Ltd.), and Millenium Caribonum Ltd., are of long term nature and further as steps have been taken to reorganize the working of these Associates, the Directors are of the opinion that no provision is necessary for diminution in the value of the investments although the latest available balance sheets as of 31st March, 2013 of these associate companies show that their net worth has been completely eroded due to accumulated losses. However, Diminution is provided for investments in Killick Air Couriers & Forwarders Ltd.,Lodestar Slotted Angles Ltd and Killick Impex Ltd. Moreover Killick Air Couriers & Forwarders Ltd. is under Liquidation.

III. Uncalled amount on Partly Paid Shares Rs.444,000 (Previous Year Rs.444,000).

IV. The loan taken from a State Government Corporation of Rs.150,000,000 (previous year Rs.150,000,000) shown under Unsecured Loans is covered by an undertaking by the Company to allow the lender to create a charge against the assets of the Company. The Company had requested the corporation to sell the shares in 2002 when the whole account would have been cleared with interest to till that date.

V. The Company does not owe any sum to any Small Industrial Undertakings as on 31.03.2013, as required under Schedule VI Part I of the Companies Act, 1956.

VI. The balance of debtors, other current assets, loans and advances and creditors are subject to confirmation by the parties. Differences, if any shall be accounted on such reconciliation.

VII. The Company alongwith 12 other Companies were Judgement Debtors of Dhanraj Mills P Ltd., a notified party under the SPECIAL COURT (Trial of offence Relating to Transactions in Securities) Act, 1992. These were consent decrees passed in favour of Dhanraj Mills P. Ltd. The Company is a Judgement Debtor as also a Guarantor to these decrees.

The Company''s claimed for refund of excess monies paid under the decrees as Principal Debtors and Guarantors was disallowed by the Hon''ble Supreme Court. Because of the Suit filed by the Global Trust Bank Ltd.(GTB) (now known as Oriental Bank of Commerce (OBC) against the sale of Building owned by some of the Judgment Debtors, the Court has not marked the decrees satisfied. In the mean time the Company was called upon to execute Bank Guarantee for Rs. 150 Lacs with 100% margin for the premises let out by the Company. Company does not expect any liability even if the case of OBC is decided adversely against the Company and the Guarantee will be released in due course after Orders.

VIII. The Company has not made provision in the accounts in respect of interest amounting to Rs.53,145,864 (Previous year Rs.53,145,864) on loans taken from Companies and others.

IX. a) At the request of the Company, Killick Financial Services Ltd. (KFSL) one of the wholly owned subsidiaries of the Company, had agreed to grant to Global Trust Bank Ltd.(GTB) {now known as Oriental Bank of Commerce(OBC)} a sub-lease of plot of land admeasuring 23,246 sq. mtrs. approx. for a period of 98 years on nominal annual lease of Rs.1,00,000 and interest free Security Deposit of Rs.74,00,00,000/- with an understanding that after 3 years from execution of lease and payment of Rs. 5 lacs, freehold rights of the property would be given to the Company. By a separate Memorandum of Understanding dated 20th December, 2000 executed by and between the KFSL and the Company, GTB(now known as OBC) and other companies it was agreed that the aforesaid Deposit of Rs.74,00,00,000/- would be utilized for the repayment of the amounts due and payable by the Company and of other companies to GTB and Custodian and would be done within a week of receipt of 37(I) permission as required then under the Income Tax Act 1962, which was jointly applied and received on 21st December 2001. KFSL through their Advocates had sent letter dated 02.01.2002 requesting GTB (now known as OBC) to disburse the said amount as per the agreement and execute a Lease Deed as approved and forwarded to KFSL by GTB (now known as OBC). KFSL vide their Advocates letter dated 04.01.2002 instructed GTB (now known as OBC) also confirmed to pay the balance amount on behalf of the Company to Custodian appointed under the Special Court (Trial of offences Relating to Transactions in Securities) Act, 1992 in repayment of liability of the Company as Judgement Debtor and Guarantor for the debts due to a notified party. But GTB (Now OBC) did not honour the MOU and agreement and refused to complete the agreement. The Company could not satisfy the guaranty given by the Company to the Custodian because of non- disbursement of the said dues by GTB(now known as OBC). KFSL and the Company were ready to execute the Agreement for mandating the payment of deposit and Lease Deed as approved and sent by GTB, which was also approved by the solicitors of KFSL. But GTB(now OBC) did not honour the said MOU and the Agreement for which KFSL has filed a suit in the High Court of Mumbai for specific performance of the Contract and made a claim of Rs. 120 cr. which amount includes the interest upto July 30, 2004. The suit is pending. The aforesaid lease land now belonging to KFSL was originally held by the Company. It was sold to Vysya Bank under a Sale Deed and under a broad understanding which was arrived at between the Company and GTB now (OBC). Vysya Bank Ltd. had leased it to KFSL under instructions of the Company. KFSL was acting under the instructions of the Company. Moreover, GTB(now known as OBC has in one of its Offer Letter for Issue of Shares to the Public has accepted the aforesaid liability and has admitted it in the said Offer Letter as Contingent Liability. In view of the above circumstances, the Management is of the opinion that the amount of Rs.9.20 cr. is not payable to GTB(now OBC), as it was agreed to be adjusted from the deposit payable by GTB (Now OBC) as explained above.

b) Global Trust Bank Ltd. (now Oriental Bank of Commerce Ltd.) have filed an original Application No.265 of 2005 on 2-7-2002 before the Mumbai Debt Recovery Tribunal claiming a sum of Rs.13,57,62,042 as due from the Company as on 30.06.2002 together with further interest thereon at the rate of 16.5% per annum from 01.07.2002 till 31.3.2006.

c) On an application taken out by the Company for stay of the proceedings on the ground that a reference made by the Company has been registered by the Board for Industrial Finance and Reconstruction (BIFR), the Debt Recovery Tribunal, III Mumbai has stayed the proceedings until the decision of BIFR on the reference.

X. By an Order dated 29.8.2006, the Board for Industrial Finance and Reconstruction (BIFR) has declared the Company as a `Sick Company'' in terms of Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). In terms of the powers available Under Section 17(3) of SICA, BIFR has appointed IDBI Bank as the operating Agency (OA) with directions to prepare a viability study report.

XI. Figures have been regrouped/rearranged wherever found necessary.

XII. Opening and Closing Stock, Purchase and Turnover : NIL (Previous Year : NIL)

XIII. Capacities and Productions: NIL (Previous Year : NIL)

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Mar 31, 2010

1. Contingent Liabilities not provided for:

(a) Claims against the Company not acknowledged as debts Rs.4,714,703 (Previous Year Rs.4,714,703).

(b) In respect of suits filed against the Company in their capacity as Shipping Agents for damages aggregating to Rs.1,509,778 (Previous Year Rs. 1,509,778). In the event of any claim materialising, the Company would be compensated by the Principals.

(c) Global Trust Bank Ltd. (now Oriental Bank of Commerce Ltd.) have filed an original Application No.265 of 2005 on 2-7-2002 before the Mumbai Debt Recovery Tribunal claiming a sum of Rs.13,57,62,042 as due from the Company as on 30.06.2002 together with further interest thereon at the rate of 16.5% per annum from 01.07.2002 till 31.3.2006.

On an application taken out by the Company for stay of the proceedings on the ground that a reference made by the Company has been registered by the Board for Industrial Finance and Reconstruction (BIFR), the Debt Recovery Tribunal, II Mumbai has stayed the proceedings until the decision of BIFR on the reference. Refer Note No.9.

(d) The Ratnakar Bank Ltd. have filed an original Application No.13 of 2004 on 14-11- 2003 before the Mumbai Debt Recovery Tribunal claiming a sum of Rs.40,83,962/- as due from the Company as on 13-11-2003 together with further interest thereon at the rate of 18.5% per annum till 31.03.2006.

On an application taken out by the Company for stay of the proceedings on the ground that a reference made by the Company has been registered by the Board for Industrial Finance and Reconstruction (BIFR), the Debt Recovery Tribunal, III Mumbai has stayed the proceedings until the decision of BIFR on the reference.

(e) Guarantees given :

(i) By Banks on behalf of the Company to third parties Rs.1,397,014 (previous year Rs. 1,397,014). By the Company : (ii) a) To third Parties - Rs. 100,000 ( Previous year Rs.100,000)

b) To subsidiary companies Rs.2,950,000 (previous year Rs.2,950,000).

c) To other companies Rs.25,000,000 (Previous year Rs.25,000,000).

(f) Bills discounting facilities for an amount of Rs.175,000,000 (Previous Year Rs.175,000,000) was availed from a bank/financial institution for facilitating payments against supplies is secured by a charge in favour of the bank by hypothecation of book debts and stock & is also covered by securities given by third parties. Please also refer to Note No. 1(a) ((c)) & 18.

(g) Sales tax matters pending in appeal etc. Rs. 2,530,470 (previous year Rs. 2,530,470).

(h) Income-tax demands including interest and penalty in respect of completed assessments disputed before higher authorities Rs.851,606,538(previous year Rs.851,606,538).

2. Uncalled amount on Partly Paid Shares Rs.444,000 (Previous Year Rs.540,000).

3. The loan taken from a State Government Corporation of Rs.150,000,000 (previous year Rs. 150,000,000) shown under Unsecured Loans is covered by an undertaking by the Company to allow the lender to create a charge against the assets of the Company. The Company had requested the corporation to sell the shares in 2002 when the whole account would have been cleared with interest to till that date.

4. In view of the fact that the Companys investments in the Subsidiary Companies - Killick Impex Ltd. & Killick Air Couriers & Forwarders Ltd., Killick Shipping Services Ltd., Killick Financial Services Ltd., Lodestar Slotted Angles Ltd., and Air Survey Company of India Limited and also investments in Killick Agencies Ltd., Millenium Caribonum Ltd., and The Hingir Rampur Coal Co. Ltd. are of long term nature and further as steps have been taken to reorganize the working of these Associates, the Directors are of the opinion that no provision is necessary for diminution in the value of the investments although the latest available balance sheets as of 31s< March, 2010 of these associate companies show that their net worth has been completely eroded due to accumulated losses. However, Diminution is provided for investments in Killick Air Couriers & Forwarders Ltd. and Lodestar Slotted Angles Ltd.

5. In view of the difficulty of identification of accounts relating to small scale industrial undertaking, information for determining the particulars relating to current indebtedness to such undertaking as required under Schedule VI Part I of the Companies Act, 1956, is not readily available and hence not given.

6. The balance of debtors, other current assets, loans and advances and creditors are subject to confirmation by the parties. Differences, if any shall be accounted on such reconciliation.

7. The Company has adopted the principles as advised by the Counsels and in the event the claim is rejected in the courts, the Company may have to pay to the Custodian, a sum of Rs.l,88,44,433/-(Previous year Rs.1,88,44,433/-) (Principal Rs. 1,73,50,963/- and interest Rs. 14,93,470/-) as on 31.3.2007 and the appeals of the Company are pending in Supreme Court.

8. The Company has not made provision in the accounts in respect of interest amounting to Rs.53,145,864 (Previous year Rs.53,145,864) on loans taken from Companies and others.

9. At the request of the Company, Killick Financial Services Ltd. (KFSL) one of the wholly owned subsidiaries of the Company, had agreed to grant to Global Trust Bank Ltd.(GTB) {now known as Oriental Bank of Commerce(OBC)} a sub-lease of plot of land admeasuring 23,246 sq. mtrs. approx. for a period of 98 years on nominal annual lease of Rs.1,00,000 and interest free Security Deposit of Rs.74,00,00,000/- with an understanding that after 3 years from execution of lease and payment of Rs. 5 lacs, freehold rights of the property would be given to the Company. By a separate Memorandum of Understanding dated 20th December, 2000 executed by and between the KFSL and the Company, GTB(now known as OBC) and other companies it was agreed that the aforesaid Deposit of Rs.74,00,00,000/- would be utilized for the repayment of the amounts due and payable by the Company and of other companies to GTB and Custodian and would be done within a week of receipt of 37(l) permission as required then under the Income Tax Act 1962, which was jointly applied and received on 21st December 2001. KFSL through their Advocates had sent letter dated 02.01.2002 requesting GTB (now known as OBC) to disburse the said amount as per the agreement and execute a Lease Deed as approved and forwarded to KFSL by GTB (now-known as OBC). KFSL vide their Advocates letter dated 04.01.2002 instructed GTB (now known as OBC) also confirmed to pay the balance amount on behalf of the Company to Custodian appointed under the Special Court (Trial of offences Relating to Transactions in Securities) Act, 1992 in repayment of liability of the Company as Judgement Debtor and Guarantor for the debts due to a notified party. But GTB (Now OBC) did not honour the MOU and agreement and refused to complete the agreement. The Company could not satisfy the guaranty given by the Company to the Custodian because of non- disbursement of the said dues by GTB(now known as OBC). KFSL and the Company were ready to execute the Agreement for mandating the payment of deposit and Lease Deed as approved and sent by GTB, which was also approved by the solicitors of KFSL. But GTB(now OBC) did not honour the said MOU and the Agreement for which KFSL has filed a suit in the High Court of Mumbai for specific performance of the Contract and made a claim of Rs. 120 cr. which amount includes the interest upto July 30, 2004. The suit is pending. The aforesaid lease land now belonging to KFSL was originally held by the Company. It was sold to Vysya Bank under a Sale Deed and under a broad understanding which was arrived at between the Company and GTB now (OBC). Vysya Bank Ltd. had leased it to KFSL under instructions of the Company. KFSL was acting under the instructions of the Company. Moreover, GTB(now known as OBC has in one of its Offer Letter for Issue of Shares to the Public has accepted the aforesaid liability and has admitted it in the said Offer Letter as Contingent Liability. In view of the above circumstances, the Management is of the opinion that the amount of Rs.9.20 cr. is not payable to GTB(now OBC), as it was agreed to be adjusted from the deposit payable by GTB (Now OBC) as explained above.

10. By an Order dated 29.8.2006, the Board for Industrial Finance and Reconstruction (BIFR) has declared the Company as a Sick Company in terms of Section 3(1 )(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). In terms of the powers available Under Section 17(3) of SICA, BIFR has appointed IDBI Bank as the operating Agency (OA) with directions to prepare a viability study report.

11. Figures have been regrouped/rearranged wherever found necessary.

12. Opening and Closing Stock, Purchase and Turnover: NIL (Previous Year: NIL)

13. Capacities and Productions : NIL (Previous Year: NIL)

1) Segmentwise Company business has currently been divided into Trading activities, Service business.

2) Unallocable Expenditure includes expenses incurred which are not directly identifiable to the individual segments as well as expenses incurred at a corporate level which relate to the Company as a whole. Similarly, interest relates to the Company as a whole.

3) Assets used in the Companys operations or liabilities contracted have not been identified to any of the reportable segments. The Company believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segreation of the data is onerous.

14 Related Party Disclosures

a) List of related Parties and relationships

A. Subsidiaries Relation

Killick Exports Ltd. Subsidiary

Killick Infotech Ltd. Subsidiary

Killick Impex Ltd. Subsidiary

Killick Shipping Services Ltd. Subsidiary

Killick Power Ltd. Subsidiary

Killick Engineering Ltd. Subsidiary

Killick Agencies and Marketing Ltd. Subsidiary (formerly known as Killick Ports Ltd.)

Killick Prestressing Pvt. Ltd. Subsidiary

Killick Air Couriers & Fowarders Ltd. Subsidiary

Killick Financial Services Ltd. Subsidiary

Loadstar Slotted Angles Ltd. Subsidiary

Filtrona India Ltd. Subsidiary

Killick Challangers & Technologies Ltd. Subsidiary

B. Associates

Killick Halco Ltd. Associate

The Central Provinces Railways Company Ltd. Associate

SIL Business Enterprises Ltd. Associate

Pelican Paints Ltd. Associate

The Hingir Rampur Coal Company Ltd. Associate

Suchindram Investments Pvt. Ltd. Associate

Prime City Trading & Investments Co. Pvt. Ltd. Associate

Marathon Trading & Investment (P) Ltd. Associate

Ratni Investments Co. Ltd. Associate

Killick Agencies Ltd. Associate

Air Survey Company of India Ltd. Associate

C. Key Management Personnel

Mr. T.B. Ruia Chairman

Mr. J. B. Shah Director

Notes: 1) Related Party relaqtionship is as identified by the Company on the basis of information available with them and accepted by the Auditors as correct.

2) No amount has been written off or written back during the year in reaspect of debts due from or to related parties.

---

Mar 31, 2009

1. Contingent Liabilities not provided for:

(a) Claims against the Company not acknowledged as debts Rs.4,714,703 (Previous YearRs.4,714,703).

(b) In respect of suits filed against the Company in their capacity as Shipping Agents for damages aggregating to Rs.1,509,778 (Previous Year Rs. 1,509,778). In the event of any claim materialising, the Company would be compensated by the Principals.

(c) Global Trust Bank Ltd. (now Oriental Bank of Commerce Ltd.) have filed an original Application No.265 of 2005 on 2-7-2002 before the Mumbai Debt Recovery Tribunal claiming a sum of Rs.13,57,62,042 as due from the Company as on 30.06.2002 together with further interest thereon at the rate of 16.5% per annum from 01.07.2002 till 31.3.2006.

On an application taken out by the Company for stay of the proceedings on the ground that a reference made by the Company has been registered by the Board for Industrial Finance and Reconstruction (BIFR), the Debt Recovery Tribunal, II Mumbai has stayed the proceedings until the decision of BIFR on the reference. Refer Note No.9.

(d) The Ratnakar Bank Ltd. have filed an original Application No.13 of 2004 on 14-11- 2003 before the Mumbai Debt Recovery Tribunal claiming a sum of Rs.40,83,962/- as due from the Company as on 13-11-2003 together with further interest thereon at the rate of 18.5% per annum till 31.03.2006.

On an application taken out by the Company for stay of the proceedings on the ground that a reference made by the Company has been registered by the Board for Industrial Finance and Reconstruction (BIFR), the Debt Recovery Tribunal, III Mumbai has stayed the proceedings until the decision of BIFR on the reference.

(e) Guarantees given :

(i) By Banks on behalf of the Company to third parties Rs. 1,397,014 (previous year Rs. 1,397,014).

By the Company : (ii) a) To third Parties - Rs. 100,000 (Previous year Rs. 100,000)

b) To subsidiary companies Rs.2,950,000 (previous year Rs.2,950,000).

c) To other companies Rs.25,000,000 (Previous year Rs.25,000,000).

(f) Bills discounting facilities for an amount of Rs.175,000,000 (Previous Year Rs. 175,000,000) was availed from a bank/financial institution for facilitating payments against supplies is secured by a charge in favour of the bank by hypothecation of book debts and stock & is also covered by securities given by third parties. Please also refer to Note No. 1(a) ((c)) & 18.

(g) Sales tax matters pending in appeal etc. Rs. 2,530,470 (previous year Rs. 2,530,470).

(h) Income-tax demands including interest and penalty in respect of completed assessments disputed before higher authorities Rs.851,606,538(previous year Rs.851,606,538).

2. Uncalled amount on Partly Paid Shares Rs. 540,000 (Previous Year Rs.540,000).

3. The. loan taken from a State Government Corporation of Rs.150,000,000 (previous year Rs. 150,000,000) shown under Unsecured Loans is covered by an undertaking by the Company to allow the lender to create a charge against the assets of the Company. The Company had requested the corporation to sell the shares in 2002 when the whole account would have been cleared with interest to till that date.

4. In view of the fact that the Companys investments in the Subsidiary Companies - Killick Impex Ltd. & Killick Air Couriers & Forwarders Ltd., Killick Shipping Services Ltd., Killick Financial Services Ltd., Lodestar Slotted Angles Ltd., and Air Survey Company of India Limited and also investments in Killick Agencies Ltd., Millenium Caribonum Ltd., and The Hingir Rampur Coal Co. Ltd. are of long term nature and further as steps have been taken to reorganize the working of these Associates, the Directors are of the opinion that no provision is necessary for diminution in the value of the investments although the latest available balance sheets as of 31st March, 2006 of these associate companies show that their net worth has been completely eroded due to accumulated losses. However, Diminution is provided for investments in Killick Air Couriers & Forwarders Ltd. and Lodestar Slotted Angles Ltd.

5. In view of the difficulty of identification of accounts relating to small scale industrial undertaking, information for determining the particulars relating to current indebtedness to such undertaking as required under Schedule VI Part I of the Companies Act, 1956, is not readily available and hence not given.

6. The balance of debtors, other current assets, loans and advances and creditors are subject to confirmation by the parties. Differences, if any shall be accounted on such reconciliation.

7. The Company has adopted the principles as advised by the Counsels and in the event the claim is rejected in the courts, the Company may have to pay to the Custodian, a sum of Rs.1,88,44,433/- (Principal Rs.1,73,50,963/- and interest Rs. 14,93,470/-) as on 31.3.2007 and the appeals of the Company are pending in Supreme Court.

8. The Company has not made provision in the accounts in respect of interest amounting to Rs.53,145,864 (Previous year Rs.45,677,248) on loans taken from Companies and others.

9. At the request of the Company, Killick Financial Services Ltd. (KFSL) one of the wholly owned subsidiaries of the Company, had agreed to grant to Global Trust Bank Ltd.(GTB) {now known as Oriental Bank of Commerce(OBC)} a sub-lease of plot of land admeasuring 23,246 sq..mtrs. approx. for a period of 98 years on nominal annual lease of Rs.1,00,000 and interest free Security Deposit of Rs.74,00,00,000/- with an understanding that after 3 years from execution of lease and payment of Rs. 5 lacs, freehold rights of the property would be given to the Company. By a separate Memorandum of Understanding dated 20th December, 2000 executed by and between the KFSL and the Company, GTB(now known as OBC) and other companies it was agreed that the aforesaid Deposit of Rs.74,00,00,000/- would be utilized for the repayment of the amounts due and payable by the Company and of other companies to GTB and Custodian and would be done within a week of receipt of 37(l) permission as required then under the Income Tax Act 1962, which was jointly applied and received on 21s1 December 2001. KFSL through their Advocates had sent letter dated 02.01.2002 requesting GTB (now known as OBC) to disburse the said amount as per the agreement and execute a Lease Deed as approved and forwarded to KFSL by GTB (now known as OBC). KFSL vide their Advocates letter dated 04.01.2002 instructed GTB (now known as OBC) also confirmed to pay the balance amount on behalf of the Company to Custodian appointed under the Special Court (Trial of offences Relating to Transactions in Securities) Act, 1992 in repayment of liability of the Company as Judgement Debtor and Guarantor for the debts due to a notified party. But GTB (Now OBC) did not honour the MOU and agreement and refused to complete the agreement. The Company could not satisfy the guaranty given by the Company to the Custodian because of non- disbursement of the said dues by GTB(now known as OBC). KFSL and the Company were ready to execute the Agreement for mandating the payment of deposit and Lease Deed as approved and sent by GTB, which was also approved by the solicitors of KFSL. But GTB(now OBC) did not honour the said MOU and the Agreement for which KFSL has filed a suit in the High Court of Mumbai for specific performance of the Contract and made a claim of Rs. 120 cr. which amount includes the interest upto July 30, 2004. The suit is pending. The aforesaid lease land now belonging to KFSL was originally held by the Company. It was sold to Vysya Bank under a Sale Deed and under a broad understanding which was arrived at between the Company and GTB now (OBC). Vysya Bank Ltd. had leased it to KFSL under instructions of the Company. KFSL was acting under the instructions of the Company. Moreover, GTB(now known as OBC has in one of its Offer Letter for Issue of Shares to the Public has accepted the aforesaid liability and has admitted it in the said Offer Letter as Contingent Liability. In view of the above circumstances, the Management is of the opinion that the amount of Rs.9.20 cr. is not payable to GTB(now OBC), as it was agreed to be adjusted from the deposit payable by GTB (Now OBC) as explained above.

13. By an Order dated 29.8.2006, the Board for Industrial Finance and Reconstruction (BIFR) has declared the Company as a Sick Company in terms of Section 3(1 )(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). In terms of the powers available Under Section 17(3) of SICA, BIFR has appointed IDBI Bank as the operating Agency (OA) with directions to prepare a viability study report.

14. Figures have been regrouped/rearranged wherever found necessary.

15. Opening and Closing Stock, Purchase and Turnover: NIL (Previous Year: NIL)

16. Capacities and Productions : NIL (Previous Year : NIL)

18 Related Party Disclosures

a) List of related Parties and relationships

A. Subsidiaries Relation

Killick Exports Ltd. Subsidiary

Ki/lick Infotech Ltd. Subsidiary

Killick Impex Ltd. Subsidiary

Killick Shipping Services Ltd. Subsidiary

Killick Power Ltd. Subsidiary

Killick Engineering Ltd. Subsidiary

Killick Agencies and Marketing Ltd. Subsidiary (formerly known as Killick Ports Ltd.)

Killick Prestressing Pvt. Ltd. Subsidiary

Killick Air Couriers & Fowarders Ltd. Subsidiary

Killick Financial Services Ltd. Subsidiary

Loadstar Slotted Angles Ltd. Subsidiary

Filtrona India Ltd. Subsidiary

Killick Challangers & Technologies Ltd. Subsidiary

B. Associates

Killick Halco Ltd. Associate The Central Provinces Railways Company Ltd. Associate

SIL Business Enterprises Ltd. Associate

Pelican Paints Ltd. Associate

The Hingir Rampur Coal Company Ltd. Associate

Suchindram Investments Ltd. Associate

Prime City Trading & Investments Co.Ltd. Associate

Marathon Trading (P) Ltd. Associate

Ratni Investments Ltd. Associate

Killick Agencies Ltd. Associate

Air Suevey Company of India Ltd. Associate

C. Key Management Personnel

Mr. T.B. Ruia Chairman

Mr. J. B. Shah Director