Vide letter dt. 16.11.2004, SEBI intimated that Regulations 6(2) & 6(4) of Takeover Regulations were violated by the Company since the disclosures prescribed had not been made to the Stock Exchange in 1997 and a minimum penalty of Rs.50,000/- was imposed. SDFL consented to pay the minimum penalty. So far, there has been no further communication from them calling for payment of penalty. There is no other penalty or stricture imposed on the Company by the Stock Exchanges, SEBI or any other Statutory authority, on any matter relating to the capital markets, during the last three years.