In compliance with corporate governance requirements as specified in Clause 49 of the Listing agreement with Stock Exchanges, the Company’s policies on Corporate Governance and Compliance thereof in respect of specific areas as applicable to the Company for the Financial Year 2009–10 are as below:

COMPANY’S PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE

Salora’s philosophy on Corporate Governance envisages the adoption of best business policies and alignment of the highest levels of transparency, integrity, honesty, accountability and equity in all facets of its operations and in all its interactions with its stakeholders including shareholders, bankers, government and employees.

The Company is committed to best corporate governance practices which stems not only from the letter of law but also from the inherent belief of doing business in the right way. The Company believes that all its actions and operations must serve the underlying goal of enhancing overall shareholder value on a sustained basis.