SKYLINE INDIA LIMITED Balance Sheet AS AT 31st March, 2007 Particulars SOURCES OF FUNDS Shareholders’ Funds Share Capital Reserve and Surplus

Loan Funds Secured (Long term) : • 12% debentures • Others Unsecured (Short term) Deferred Tax Liabilities TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Accumulated depreciation Net Block Capital Work-in-Progress

2007 (Rs. in lacs)

2006 (Rs. in lacs)

100.00 163.70 263.70

62.50 69.00 131.50

15.00 49.50 6.00 70.50 32.00 366.20

….. 44.00 8.00 52.00 45.00 228.50

174.00 72.50 101.50 5.00 106.50

95.50 53.00 42.50 2.50 45.00

Investments Long term Short term

99.00 43.50 142.50

105.00 21.75 126.75

28.00 85.00 10.00 5.00 12.00 140.00

78.00 72.50 2.75 2.00 15.00 170.25

16.50 2.50

94.50 5.00

Net Current Assets

3.00 15.00 1.80 38.80 101.20

5.00 12.50 1.50 118.50 51.75

Miscellaneous Expenditure (To the extent not w/o) TOTAL

16.00 366.20

5.00 228.50

Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balances Interest receivables Loans and advances Less: Current Liabilities and Provisions Current liabilities: • Sundry creditors • Interest payable Provisions: • Current income tax (Net of advance tax paid • Proposed dividend • Corporate dividend tax

SKYLINE INDIA LIMITED Profit and Loss Account for the year ended 31st March, 2007 Particulars Sales Interest Dividend Total Income Materials cost Manufacturing expenses Administrative and selling expenses Depreciation Interest Deficit on fixed assets sold Miscellaneous expenditure w/o Profit Before Taxation and Extraordinary Item Expenditure income – Compensation for copyright infringement Profit Before Taxation Provision for Income Tax: • Current income tax • Deferred income tax Total Profit After Tax Balance brought forward from last year Balance Available for Appropriations Appropriations: • Proposed dividend • Current dividend tax • General reserve Surplus Carried to Balance Sheet

(Rs.) in lacs 1532.50 15.00 10.00 1557.50 1121.00 174.75 60.25 22.50 7.25 0.25 4.00 167.50 9.00 176.50 25.00 15.00 40.00 136.50 14.50 151.00 15.00 1.80 120.00 14.20

Additional Information: 1. An amount of Rs. 25 lacs was capitalized out of general reserve to issue bonus shares. Rest of the capital was raised in cash. 2. 12% debentures were issued in lieu of a fixed asset acquired. 3. Long term secured loans (others) of Rs. 12.50 lacs were raised during the year. 4. Fixed assets with original cost of Rs. 4 lacs and accumulated depreciation of Rs. 3 lacs were sold for Rs. 75,000. 5. Long term investments amounting to Rs. 14 lacs were purchased during the year. 6. Last year’s outstanding dividend and dividend tax were paid during the year. 7. Miscellaneous expenditure amounting to Rs. 15 lacs were incurred during the year. 8. Out of interest income of Rs. 15 lacs, Rs. 10 lacs were actually received during the year. Rs. 2 lacs relating to interest income of last year were also received during the current year. 9. Out of interest expense of Rs. 7.25 lacs, Rs. 4.75 lacs were actually paid during the year. Rs. 5 lacs relating to interest expense of the last year were also paid during the current year. 10. Tax deducted at source on interest received, amounting to Rs. 2 lacs, is included in the current tax expense.