2. Contingent Liability not provided for in respect of:

a. The Company initiated Arbitration proceedings against M/s. Shin Satellite Public Co. Ltd, Thailand (hereby known as Thaicom Public Company Limited) for various claims. However, the Arbitral Tribunal, without Notice, in a meeting for directions, held contrary to the express provisions of the Agreement between the parties, proceeded to disregard/set-aside claim of the Company for not appearing before the Tribunal in the said meeting and thereafter proceeded to pass ex-parte award against the company for US$ 10,16,603.78 (Rs.6,10,97,684), along with interest @18% p.a. from the date of award, merely considering the counter-claim of the defendants without considering any claims/submissions documents/evidence/Affidavits already filed by the Company. The award too contains many in-consistencies and the company has therefore filed appeal against the said order on various grounds before the Hon'ble High Court of Delhi. The Learned Single Judge vide his order dismissed the Petition filed by the Company on the ground that Part 1 of the Arbitration and Conciliation Act, 1996 is excluded by the parties under agreements. Being aggrieved by the said order, the Company filed an appeal before the Division Bench of the High Court of Delhi, who, vide their order upheld the order of the Learned Single Judge on the ground that Part 1 of the Arbitration and Conciliation Act, 1996 is excluded by the parties under agreements and thereby Courts in India will have no jurisdiction, without considering the fact that the issue as to the applicability of Part 1 of the Arbitration and Conciliation Act, 1996 to the present arbitration stood already decided by the designate of the Chief Justice of India while exercising His jurisdiction under Section 11(6) of the Arbitration and Conciliation, Act,1996 passed in Arbitration Petition. Being aggrieved, the Company therefore filed a Special Leave Petition before the Hon'ble Supreme Court of India, which was admitted. The said execution petition is pending for adjudication and as per the Supreme Court Order the company has given a bank Guarantee of Rs. 2,50,00,000/- (Rupees Two Crore Fifty Lacs only). In the meanwhile, Thaicom Public Company Limited has filed an Execution Petition before the Hon'ble High Court of Judicature at Mumbai seeking execution of the Award. The said execution petition is also pending for adjudication.

b. The Commissioner of Service Tax Department had passed Order determining the Net service tax Liability of Rs. 51,26,745/- ( after credit for payments ) for the period from 16th June 2001 to 31st March 2006, which has been duly accounted by the Company . The Learned Commissioner had also passed Order for Recovery of Interest at the appropriate rate on the service Tax amount as determined and also imposed Penalty of Rs.1,02,55,493/-. As against this Order Management has filed an appeal with CESTAT, and the matter came up for hearing were in CESTAT has passed an order dt. 16th September 2013 asking company to deposit an amount of Rs. 49,65,873/- towards Service Tax Liability with in a period of 8 Weeks and the same was paid. As Regards pre deposit of Interest & Penalty the same is waived and recovery of the same is stayed for hearing of appeal.

c. Service Tax Department had issued Show cause cum Demand Notice for Rs. 11,95,884/- towards Short Payment of service tax for the period from 1st April 2007 to 31st March 2008. The demand was raised by the department for erroneous computation of taxable revenue, the company has submitted written explanation to that effect to the Department and rectification from the department is awaited.

3. Estimated amounts of capital contracts remaining to be executed (advance paid) Rs. Nil (Nil)

4. During the year or in previous year the company has not entered into any transaction relating to foreign currency.

5. Amount Due to Small, Medium and Micro enterprises: Company is in process of inviting information from its vendors for their status under "The Small, Medium and Micro Enterprises Development Act 2006", however in absence of any information, no disclosures have been made in this regards.

6. Balances in Unsecured Loans and some of the Debtors, Creditors, Loans & Advance are subject to confirmation and reconciliation, if any.

7. In the Opinion of the Board, the current assets, Loans & Advances are approximately of the value stated, if realized in the ordinary course of the business.

8. Previous Yeas Figure have been regrouped to conform to the current year presentation.