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1. Names of the Shareholders holidng more than 1% paid up capital have been mentioned above.1. The above results have been subjected to limited review by the statutory auditors and were taken on record in the meeting of the Board of Directors held on 30th January 2006.
2. In respect of the audit qualifications pertaining to 31st March, 2005 with regard to: -
   • Non provision of various income tax demands being contested by the Company ; the Company has provided / paid the tax liabilities as per tax computations, returns filed and admissions / estimations in this respect. The Company is also pursuing a settlement in accordance with the provisions of the Income Tax Act, 1961 of the matters in the different financial years. The matters pending as such are sub judice and adjustments, if any, in this respect will be made as and when amounts there of are determined.
   • Non provision for interest on the balance of inter corporate deposit final settlement of which is pending; the Company maintains that pending outcome of negotiation / settlement, interest provided for in earlier years is adequate. Adjustments, if any in this respect will be made as and when amounts thereof are determined.
   • Non provision of diminution in the value of investments; provision for such diminution amounting to Rs. 4516 lacs has been made during the period ended 31st December, 2005.
   • Non provision of liabilities for pension; Rs. 213 lacs has been provided for during the period ended 31st December, 2005 on the basis of actuarial valuation carried out during the quarter.
3. a) The Company has entered into a separation agreement on 27th May 2005 with MBL Investments Limited, the erstwhile joint venture(JV) partner for beer business of the Company and consequently certain brands pertaining to beer business so far operated under joint venture arrangement has been assigned / licensed by the Company to an affiliate company of the said JV Partner. One of the subsidiary company holding the equity shares of the brewery company has divested its shares in favour of affiliate / associate companies of the said JV partner. The Company has received Rs. 13639.49 lacs as consideration for the said assignment and Rs. 2165 lacs for licensing arrangement of the brands and these exceptional and non-recurring incomes have been included under other income for the period ended 31st December, 2005.
   b) As a part of overall understanding under the aforesaid separation agreement royalty against beer brands is not leviable with effect from 1st April 2004. However, sales / income from operations for the quarter and nine months ended December 2004 includes Rs. 370 lacs and Rs. 1071 lacs respectively, which has been adjusted in the audited results for the year ended 31st March 2005.
   c) Other income for the quarter includes Rs 570 Lacs being the amount of interest accrued to the Company on refund of income tax in relation to certain assessment years.
   d) Other expenditure for nine months period ended December 2004 and year ended 31st March 2005 includes exceptional and non recurring expenses on account of settlement towards Corporate Guarantee of Rs. 454 lacs given by the Company in earlier year.
   e) Provision for contingency has been made to meet liabilities which may arise in future in respect of various income tax demands, legal and other disputes pending against the Company.
4. There was no complaint from the shareholders pending at the beginning of the current quarter. Twenty one complaints were received during the quarter and were duly attended. There is no pending complaint at the end of the quarter.
5. The Company is currently having only one segment i.e., income from liquor business and therefore segmental disclosure requirement are no longer applicable.
6. Previous period / year figures have been regrouped wherever necessary.

By Order of the Board of Directors
For Shaw Wallace & Company Limited

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