N2N Technologies Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or reliable estimate of the amount cannot be made, is termed as contingent liability.

Contingent Assets

Contingent assets is disclosed where an inflow of economic benefit is probable.

(m) Employee benefits

(i) Short-term obligations

All employee benefits payable wholly within twelve months of rendering the service including performance incentives and compensated absences are classified as short term employee benefits. The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are charged off to the Statement of Profit and Loss/ Capital Work-inProgress, as applicable. The employee benefits which are not expected to occur within twelve months are classified as long term benefits and are recognised as liability at the net present value.

(ii) Defined contribution plan

Contributions to defined contribution schemes such as provident fund, Employees State Insurance and Pension Plans are charged off to the Statement of Profit and Loss/ Capital Work-in-Progress, as applicable, during the year in which the employee renders the related service.

III. Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also need to exercise judgement in applying the company''s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgement are:

Estimation of tax expenses, utilisation of deferred tax assets (including MAT credit) and tax payable

(B) Notes on Financial Statements

1. In compliance with the requirement of the proviso to rule 3(1) of the Companies (Accounts) Rules, 2014, the management has represented that the company is in the process of implementing the audit trail feature required under the Companies Act, 2013. This feature will provide an edit log of all transactional changes, capturing modifications along with the date and details. The company expects the implementation to be completed soon.

2. The Company has made provisions for Professional Tax amounting to ^32,400 in the current financial year and ^57,200 in the previous year. However, the total amount of ^89,600 remains unpaid as of 31st March 2025.

3. The Company has an outstanding TDS liability of ^42,591, which has remained unpaid for several years. Interest and penalties related to this overdue amount have not been recorded in the books. Due to the historical and carried-forward nature of these balances, determining the exact interest and penalty liability is currently not feasible..

4. During the financial year 2024-25, the Company did not deduct TDS on legal and professional fees amounting to ^6,90,000 and on rent payments totaling ^3,08,200, as required under the Income Tax Act. Additionally, although TDS on salary was deducted, it was not deposited for any of the quarters during the year. Interest and penalties arising from these non-compliances have not been recorded in the books.

5. Trade payables outstanding as of 31st March 2025 have not been classified in accordance with the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, as the Company has not received necessary confirmations from the concerned parties to determine their MSME status.

6. Trade receivables, trade payables, loans and advances, and unsecured loans have been accounted for at their book values and are subject to confirmation and reconciliation, wherever applicable. Adjustments, if any, will be made upon receipt and review of such confirmations.

7. Payments to Auditors:
	Auditors Remuneration	2024-2025	2023-24
	Audit Fees	1,25,000	125,000

8. The Company has outstanding loans amounting to Rs.6,16,84,640.69 as at 31st March 2025. These loans pertain to earlier financial years and were not disbursed during the current year. As per Section 186(2) of the Companies Act, 2013, a company may grant loans up to 60% of its paid-up share capital, free reserves, and securities premium, or 100% of its free reserves and securities premium, whichever is higher, without requiring prior approval by a special resolution.

As on 31st March 2025, the relevant financial figures are as follows:

Paid-up equity share capital: Rs.3,22,80,690 Paid-up preference share capital: Rs.78,51,290 Securities premium: Rs.14,62,04,086 Reserves and surplus: (11,73,32,843.93)

The total of paid-up capital and securities premium (excluding negative reserves) amounts to ^6,90,03,222.07. Accordingly, the permissible loan limit under Section 186(2), i.e., 60% of this amount, works out to Rs.4,14,01,933.24.

Since the outstanding loan amount of Rs.6,16,84,640.69 exceeds this limit and the Company has not obtained approval via special resolution as required, the Company is in violation of Section 186 of the Companies Act, 2013. Further, to the extent the loans involve directors or entities covered under Section 185, appropriate approvals have also not been obtained, leading to non-compliance under that section as well.

11. No provision has been made towards retirement benefits for employees during the year. The impact of such non-recognition on the Profit and Loss account has not been determined.

12. The Company, listed on BSE Limited, has not paid the annual listing fees for the financial years 2023-24 and 2024-25. As per applicable regulations, continuous non-payment of listing fees for three consecutive financial years may attract regulatory action, including suspension of trading or compulsory delisting of the Company''s securities.

Due to the current non-payment, the Company is facing operational restrictions imposed by the stock exchange, limiting trading activity to only once or twice within a span of 5 to 10 days. The Company is actively evaluating the matter and exploring available options to regularize the outstanding dues. The Company is in the process of making the payment of the outstanding listing fees at the earliest.

As on the date of approval of these financial statements, no formal notice of delisting has been received from BSE Limited. The financial and operational impact of any potential regulatory action remains uncertain and presently unascertainable.

13. During the financial year 2024-25, the Company has recognized deferred tax income of ^1,57,61,181.55, resulting in a closing deferred tax asset of ^1,65,90,952.24 as on 31st March 2025, compared to ^8,29,770.69 in the previous year. The significant increase is due to the recognition of deferred tax on unabsorbed depreciation and brought forward losses which were not considered in earlier years. As a result, the profit for the current year is materially inflated due to the cumulative recognition of deferred tax assets in this period.

#Previous year figures have been regrouped/rearranged wherever necessary.

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Mar 31, 2024

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized, if as a result of past event the company has present legal or constructive obligations
that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and the risk specific to liability.

Contingent liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of
the company.

Contingent assets are not recognized in the financial statements. However due disclosures are made in the
financial statements for the contingent assets, where economic benefits is probable and amount can be
estimated reliably.

N. FOREIGN CURRENCY TRANSACTIONS
Functional Currency

The Companies functional currency is Indian Rupees. The financial statement of the company is presented in
Indian rupees.

Transaction and translations

Transactions in currency other than Indian Rupees are recorded at the rate, as declared by the custom and
excise department / inter-bank rates, ruling on the date of transaction.

Unsettled Foreign currency denominated monetary assets and liabilities, as at the balance sheet date, are
translated using the exchange rates as at the balance sheet date. The gain or loss resulting from the translation
is recognized in the profit & loss. Non-monetary assets and non-monetary liabilities denominated in foreign
currency and measured at cost are translated at the exchange rate at the date of the transaction.

Non-monetary assets and non-monetary liabilities denominated in foreign currency and measured carried at fair
value are translated at the date when the fair value is determined.

Transaction gain or losses realized upon settlement of foreign currency transaction are included in determining
the net profit for the period in which transaction is settled.

Exchanges difference arises on settlement / translation of foreign currency monetary items relating to
acquisition of property, plant & equipment till the period they are put to use for commercial production, are
capitalized to the cost of assets acquired and provided for over the useful life of the property, plant &
equipment.

O. NON CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying
value and fair value less costs to sell.

Assets and disposal groups are classified as held for sale if their carrying value will be recovered through a sale
transaction rather than through continuing use. This condition is only met when the sale is highly probable and
the asset, or disposal group, is available for immediate sale in its present condition and is marketed for sale at a
price that is reasonable in relation to its current fair value. The Company must also be committed to the sale,
which should be expected to qualify for recognition as a completed sale within one year from the date of
classification.

Where a disposal group represents a separate major line of business or geographical area of operations, or is
part of a single coordinated plan to dispose of a separate major line of business or geographical area of
operations, then it is treated as a discontinued operation. The post-tax profit or loss of the discontinued
operation together with the gain or loss recognised on its disposal are disclosed as a single amount in the
statement of profit and loss, with all prior periods being presented on this basis.

P. BORROWING COST

Borrowings cost are interest and other costs incurred in connection with the borrowing of funds. Borrowing cost
directly attributable to the acquisition or construction of qualifying / eligible assets, intended for commercial
production are capitalized as part of the cost of such assets. All other borrowing costs are recognized as an
expense in the year in which they are incurred

Q. CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with maturity of twelve months or less, which are subject to an insignificant risk of changes in value.

(B) Notes on Financial Statements

1. The Company has not established its Internal Financial Controls over financial reporting on criteria
based on or considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered

Accountants of India.

2. Goods and Services Tax (GST) Compliance:

The company is in Export sale of services without payment of GST. The Company exceeded the
GST registration threshold in June 2023 but registered only in January 2024. Consequently, Rs.
1,11,97,005/- of the Rs. 1,31,97,005/- turnover during this period was not reported due to non¬
registration. This oversight has resulted in the Company being unable to claim the input tax credit
refund for the GST portion on expenses for these services.

3. Professional Tax:

The Company has made provisions of Rs. 39,000 for professional tax in the current financial year
and Rs. 13,000 in the previous year, but these amounts remain unpaid as of 31st March 2024. This
non-payment could result in penalties and interest liabilities that have not been accounted for in the
financial statements.

4. Outstanding TDS Payable:

The Company has an outstanding TDS payable amounting to Rs. 42,592, which has been pending
for over three years. Furthermore, TDS on legal and professional fees amounting to Rs. 18,70,800
and rent amounting to Rs. 2,37,540 for the financial year 2023-2024, The interest and penalties
associated with these amounts have not been recorded.

5. Trade Payables and Receivables:

The Company has recorded trade payables, trade receivables, loans and advances, and unsecured
loans at their book value without obtaining confirmation and reconciliation. This could potentially
lead to inaccuracies in the financial statements.

6. Trade payable outstanding as on 31st March 2024 are not recorded under MSME; the management
has not received any confirmation from the same.

7. Trade receivables, Trade payables, Loans & Advances and Unsecured Loans have been taken at
their book value subject to confirmation and reconciliation.

10. No provision for retirement benefits has been made. The impact of the same on Profit &
Loss is not determined.

11. Previous year figures have been regrouped/rearranged wherever necessary.

For D M K H & CO.

Chartered Accountants (FRN: 0116886W)

RAHUL DILIP SHAH TUSHAR SUBODH SHAH

DIRECTOR DIN: DIN: 01545609 DIRECTOR & CFO(KMP)

DIN:01932018

DINESH GOPAL MUNDADA PARTNER
Membership No.: 122962
Place: PUNE

Date: 30/05/2024 TRUPTI M PANDIT _{TWINKLE UPADHYAYA}

UDIN:- 24122962BKBENY1053 DIRECTOR & CEO _{COMPANY SECRETARY}

DIN: 06422293

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Mar 31, 2016

Note : Apart from above promoter Mr.Rahul Shah is beneficial owner of 13000 shares as informed by management ( c) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of directors is subject to the approval of the shareholders in ensuing Annual General Meeting. In event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The Distribution will be in proportion to the number of equity shares held by the shareholders.

1. Balances of Debtors, Loans and Advances, Secured &Unsecured Loans, Sundry Creditors & Others are subject to confirmation and reconciliation and consequential adjustments, if any.

2. In the opinion of the Board & to the best of their knowledge & belief the value of realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet & the provisions for all the loans & determined liabilities is adequate and not in excess of the amount.

3. Provision for retirement benefits to employees was not provided on accrual basis, which is not inconformity with Accounting Standard-15 issued by ICAI and the amount has not been quantified because actuarial valuation report is not available. However, in the opinion of the management the amount involved is negligible and has no material impact on the Statement of Profit & Loss.

4. According to the opinion of the management, there is no impairment in the carrying cost of cash generating units of the Company in terms of accounting standards-28 issued by the Institute of Chartered Accountants of India.

5. The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been made.

6. Segment Information (AS-17)

Company has only one segment of activity namely "IT & IT Enabled Services”. Since there is No export turnover, there are no reportable geographical segments. The company has not indulged in share trading activity.

7. Related Party Disclosure (AS-18)

As per the Accounting Standard 18 on "Related Party Disclosures” issued by ICAI the related parties of the company and nature of relationship are as follows:

Note: Related Party Relationship is identified by the Management & relied upon by the Auditor.

8. The company being listed company required to follow section 203 & 134 (1), However, the view of absence of appropriate candidate for filing vacancy of Company Secretary have not appointed. The said Key Managerial Personnel as per section 203 and to the extent 134(1) Signing of financial statement have been considered only by director. However, the management has considered the matter in the process of appointing company Secretary.

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Mar 31, 2014

1. The merger of Leadsoft Softech Private Limited with the N2N Technologies Limited has been approved by Hon''ble Bombay High Court vide it''s order dated 25th of Oct. 2013. The appointed date is 1st Apr 2012. The Company has complied with applicable accounting standard while giving effect to the said merger.

2. During the year Company has allotted 13,41,400 equity shares of Rs. 10/- each @ Rs. 68.14 per share (including premium of Rs. 58.14 per share) to shareholders and Debenture holders of Leadsoft Softech Pvt. Ltd. Pursuant to the order of Hon. Bombay High Court.

3. Balances of Debtors, Loans and Advances, Secured &Unsecured Loans, Sundry Creditors & Others are subject to confirmation and reconciliation and consequential adjustments, if any.

4. In the opinion of the Board & to the best of their knowledge & belief the value of realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet & the provisions for all the loans & determined liabilities is adequate and not in excess of the amount.

5. Provision for retirement benefits to employees was not provided as it is not applicable to the Company.

6. According to the opinion of the management, there is no impairment in the carrying cost of cash generating units of the Company in terms of accounting standards-28 issued by the Institute of Chartered Accountants of India.

7. The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made.

8. Segment Information (AS-17)

Company has only one segment of activity namely "IT & IT Enabled Services". Since there is no export turnover, there are no reportable geographical segments. The company has not indulged in share trading activity.

9. Related Party Disclosure (AS-18)

As per the Accounting Standard 18 on "Related Party Disclosures" issued by ICAI the related parties of the company and nature of relationship are as follows:

Related Party Nature of Relationship

Rahul Dilip Shah Director

DSR Infotech Pvt. Ltd. One Common Director - Subsidiary

Note: Related Party Relationship is identified by the Management & relied upon by the Auditor.

Nature and volume of transaction carried out with the above related parties in the ordinary course of business for the year ended 31st March, 2014

10. Earnings Per Share (AS-20)

The Earning Per Share computed as per the requirement under Accounting Standard 20 on Earnings Per Share issued by The Institute of Chartered Accountant of India, is as under:

11. Earnings/Expenditure in Foreign Currency - NIL

12. The Company has not received the required information from suppliers regarding their status under the MSMED Act, 2006 Hence disclosures if any relating to amounts unpaid as at the year-end together with interest paid/payable as required under the said act have not been made.

Notes:

1. Indian Rupee equivalent figures hav been arrived at byappjying theyear end inter-bank Exchange Rate

2. DSR Infotech Private Limited''s controllingstake in Katalyst Technolcgies Inc has come down to 50% .

Notes:

1. None of the above Subsidiaries have proposed any dividend.

2. The Company shall provide to any member on request the Annual Accounts of the subsidiaries and other related information at any point of time. Copies of the Annual Accounts of the Subsidiaries shall also be available for inspection by any member at the Registered Office of the Company and its subsidiaries on any working day.

3. Indian Rupee equivalent figures have been arrived at by applying the year end inter-bank Exchange Rate

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Mar 31, 2013

1. The merger of LeadsoftSoftech Private Limited with the N2N Technologies Limited has been approved by BSE and also the shareholders of the company.A petition under Section 394 of the Companies Act, 1956 for sanctioning the scheme of Amalgamation of LeadsoftSoftech Private Limited with N2N Technologies Limited and their respective shareholders was presented by the Company on 18-April,2013 and the same has been admitted in the Bombay High Court on 3- May.2013. The said petition is fixed for hearing before the Company Judge on 28* Day of June 2013 at 11.00 a.m, at Mumbai High Court. If approved the mergerwillbeeffectivefrom1''April,2012.

2. To subscribe to shares of DSR Infotech Private Limited, the company paid share application money of Rs.3,24,50,000/- during March, 2012. The Company was allotted 3,24,500 shares of Rs.100/- each of DSR Infotech Private Limited on 2- November, 2012. As a result the company holds 68.39% of DSR Infotech Private Limited making it a subsidiary of the company. DSR Infotech Private Limited has a subsidiary, Katalyst Technologies Inc, USA.

3. During the year the company had issued 2,66,666 0% Unsecured Optional Fully Convertible Debentures @ Rs.150/- amounting to Rs.3,99,99,900 to Mr. Vijay Chheda for which necessary approvals had been obtained from the shareholders through Postal Ballot as also from BSE.The term of 0% Unsecured Optionally Convertible Debentures ("OCD") shall be 18 months from the date of allotment and shall be converted into equity shares at the option of the debenture holder. The equity shares arising on conversion shall rank parripassu with existing equity shares. Any OCD pending conversion on expiry of period of 18 months from the date of allotment of OCD shall be converted into Redeemable Non Convertible Debenture of Rs. 10/- each redeemable within a period of 3 (three) years at the coupon rate to be determined by the Board of Directors commencing from expiry of 18 months period. The debenture holder had applied for conversion into shares and the Board has approved the same vide their meeting held on 10.05.2013. Consequent to conversion the paid up capital would increase to Rs.3,06,66,660 comprising of 30,66,666 shares of Rs. 10/- and the balance amount of Rs. 140 a share will be transferred to Share Premium account.

4. Balances of Debtors, Loans and Advances, Secured&Unsecured Loans, Sundry Creditors & Others are subject to confirmation and reconciliation and consequential adjustments, if any.

5. In the opinion of the Board & to the best of their knowledge & belief the value of realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet & the provisions for all the loans & determined liabilities isadequate and not in excess of the amount.

6. Provision for retirement benefits to employees was not provided on accrual basis, which is not inconformity with Accounting Standard-15 issued by ICAI and the amount has not been quantified because actuarial valuation report is not available. However, in the opinion of the management the amount involved is negligible and has no material impact on the Statement of Profit & Loss.

7. According to the opinion of the management, there is no impairment in the carrying cost of cash generating units of the Company in terms of accounting standards-28 issued by the Institute of Chartered Accountants of India.

8. The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been made.

9. Segment Information (AS-17)

Company has only one segment of activity namely "IT & IT Enabled Services". Since there is noexport turnover, there are no reportable geographical segments. The company has not indulged in share trading activity.

10. Related Party Disclosure (AS-18)

As per the Accounting Standard 18 on "Related Party Disclosures" issued by ICAI the related parties of the company and nature of relationship are as foilows:

11. Previous year''s figures have been recast/regrouped wherever necessary to conform to the current year''s classifications/presentation.

12. Accounting for taxes on income(AS-22):

Break up of Net Deferred Tax liability into major components of the respective balance is as follows:

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Mar 31, 2012

(i) Terms/Rights attached to equity shares

The Company has only one cSass of equity /hares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

The Company dedares and pays dividend in Indian Rupses. In event of Hquremainingidation of the Company, the holders of equity shares wouM be entitled to receeve assets ole tiie Company, after distribution of all jpreferentml amounts. The Distribution wUl be in proportion to the number of eqrnty shares heM tiie shareholders.

[ The company has liabilities in respect of Unpaid Dividend account for the year 2005-06 of Rs. 12,835 and the said amount has been deposited in Indian Bank at OSHIWARA Branch at Mumbai, the present account balance is of Rs.18,105. As per management explanation difference of Rs. 5,270 is due to account deposited at the time of account opening.]

1. Balances of Debtors, Loans and Advances, Secured & Unsecured Loans, Sundry Creditors & Others are subject to confirmation and reconciliation and consequential adjustments, if any.

2. In the opinion of the Board & to the best of their knowledge & belief the value of realisation of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet & the provisions for all the loans & determined liabilities is adequate and not in excess of the amount.

3. Provision for retirement benefits to employees was not provided on accrual basis, which is not incon- formity with Accounting Standard-15 issued by ICAI and the amount has not been quantified because actuarial valuation report is not available. However, in the opinion of the management the amount involved is negligible and has no material impact on the Profit & Loss Account.

4. According to a technical assessment carried out by the Company, there is no impairment in the carrying cost of cash generating units of the Company in terms of accounting standards-28 issued by the Insti- tute of Chartered Accountants of India.

5. The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been made.

6. Accounts payable to Small Scale Industrial Undertaking under the head of Sundry Creditors - NIL (Previous Year - NIL)

7. The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial state- ments. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.

8. Segment Information (AS-17) Company has only one segment of activity namely "Trading and Financial Activities". Since there is No export turnover, there are no reportable geographical segments.

9. Earnings Per Share (AS-20)

The Earning Per Share computed as per the requirement under Accounting Standard 20 on Earning Per Share issued by The Institute of Chartered Accountants of India, is as under:

10. Additional information pursuant to the provisions of Part II of Schedule VI to the Companies Act, 1956: Quantitative detail in respect of trading goods:-

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Mar 31, 2003

1. In the opinion of the Board, the current assets, loans & advances are approximately of the value stated if realised in the ordinary course of business & adequate provision for all known liabilities of the Company has been made.

2. The entire operation of Company relate to only one Segment viz: Income from financial activities. Companys business activities are confined only in India. Hence no additional disclosure are made as required under Accounting Standard 17. on Segment Reporting issued by the Institute of Chartered Accountants of India.

3. Related Party Disclosures :

a) List of related parties with whom transactions have taken place during the year:

Relatives of Key Management Personnel - Mr. Abhishek Sarawgi

4. Previous Years figures have been regrouped/rearranged, wherever necessary, so as to make them comparable with current years figures.

5. Balance Sheet Abstract & Companys General Business Profile as required under Part IV of Schedule VI to the Companies Act 1956 is given as per annexure A.

6. Other information required under Part I & Part II of Schedule VI to the Companies Act, 1956 is either NIL or NOT APPLICABLE.

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Mar 31, 2002

1 In the opinion of the Board, the current assets, loans & advances are approximately of the value stated if realised in the ordinary course of business & adequate provision for all known liabilities of the Company has been made.

2 In view of Accounting Standard-22 "Accounting for taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has started accounting for deferred taxes with effect from 1st April, 2001.

The accumulated net deferred tax assets amounting to Rs. 544145/- as of 1st April, 2001 have been credited to the balance in Profit & Loss Account as on the same date. The deferred tax credit of Rs.l35312/- for the year, has been recognised in the Profit & Loss Account.

3. The entire operation of Company relate to only one Segment viz: Income from financial activities. Companys business activities are confined only in India. Hence no additional disclosure are made as required under Accounting Standard 17, issued by Institute of Chartered Accountants of India.

4 Related Party Disclosures: The disclosures pertaining to the related party transactions as required by the Accounting Standard 18( AS-18) issued by the Institute of Chartered Accountants of India, as applicable, are indicated below :-

a) List of related parties with whom transactions have taken place during the year 2001-02

Relatives of Key Management Abhishek Sarawgi

Personnel Babita Sarawgi

b) Transaction with Relatives of Key Management Personnel

Amt (Rs.) Sale of Fixed Assets 85,000

Hire Charges 45,000

5 Previous Years figures have been regrouped/rearranged, wherever necessary, so as to make them comparable with current years figures.

6 Balance Sheet Abstract & Companys General Business Profile as equired under Part IV of Schedule VI to the Companies Act, 1956 is given as per annexure1.

7 Other information required under Part I & Part II of Schedule VI to the Companies Act, 1956 is either NIL or NOT APPLICABLE.