Notes to Accounts of Gujarat Aqua Industries Ltd.

Mar 31, 2012

1. Cash in hand & closing stock at the end of the year has not been physically verified by us.

2. According to the management explanation there are no contingent liabilities/ losses as on the Balance-Sheet date which shall affect future business of the enterprise hence not provided for. To the best of our knowledge & according to the management representation given to us, no event has occurred during the period from the Balance sheet date to the date of our report which shall materially affect the financial position of the enterprise.

3. Revenue is recognized only when all significant risk & rewards of ownership have been transferred to the buyer & the enterprise has retained no effective control of goods, shares, securities and properties sold.

4. No provision has been made for gratuity as there is no liability at present.

5. Additional information required under schedule VI of part II of the Companies Act, 1956 to the extent not applicable is not given.

6. Net Profit / Loss for the period, prior period item, and change in accounting policies.

All the extra ordinary and prior period items of income and expenses are separately disclosed in the statement of Profit & Loss in manner such that its impact on the current profit or loss can be perceived. Further there has not been any change in the company''s accounting policies or accounting estimate so as to have a material impact on the current year profit/loss or that of former or latter periods. All the items of income and expenses from ordinary activities with such size and nature such that they become relevant to explain the performance of the company have been disclosed separately.

7. Taxation

[I] Provision for current Income tax is made in accordance with income tax act 1961.

[II] Deferred Tax Accounting:-

Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted are substantively enacted by the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realise these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

8. As the company has 100 % income being generated out of no interest. It is only job work. It does not have a separate income to disclose of any business or geographic segment as per requirement of AS 17.

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Mar 31, 2010

1. Contingent Liabilities : As at 31-03-10 31-03-09

a. Estimated amount of contracts Remaining to be executed on Capital A/c and not provided for - Nil - - Nil -

b. Outstanding guarantee furnished To Banks/Financial Institutions - Nil - - Nil -

c. Outstanding guarantee furnished

2. Cash in hand & closing stock at the end of the year has not been physically verified by us.

3. According to the management explanation there are no contingent liabilities/ losses as on the Balance-Sheet date which shall affect future business of the enterprise hence not provided for. To the best of our knowledge & according to the management representation given to us, no event has occurred during the period from the Balance sheet date to the date of our report which shall materially affect thefinancial position of the enterprise.

4. Revenue is recognized only when all significant risk & rewards of ownership have been transferred to the buyer & the enterprise has retained no effective control of goods, shares, securities and properties sold.

5. No provision has been made for gratuity as there is no liability at present.

6. Additional information required under schedule VI of part II of the Companies Act, 1956 to the extent not applicable is not given.

7. Net Profit / Loss for the period, prior period item, and change in Accounting policies.

All the extra ordinary and prior period items of income and expenses are separately disclosed in the statement of Profit & Loss in manner such that it's impact on the current profit or loss can be perceived. Further there has not been any change in the company's accounting polices or accounting estimate so as to have a material impact on the current year profit/loss or that of former or latter periods. All the items of income and expenses from ordinary activities with such size and nature such that they become relevant to the explain the performance of the company have been disclosed separately.

8. Taxation :-

[I] Provision for current Income tax is made in accordance with income tax act 1961.

[II] Deferred Tax Accounting :-

Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in on or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted are substantively enacted by the balance sheet date.

Deferred tax assets in respect of un absorbed depreciation and carry forward losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to relies these assets. All other deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realizes these assets.

9. As the company has 99.10 % income being generated out of interest on advances, it does not have a separately disclosable Business or Geographic segment as per requirement of AS 17.

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Mar 31, 2009

1. No provision for Income Tax for current year has been made in the absence of any assessable income under the Income Tax Act. 1961 and in view of brought forward business losses and depreciation as per books of accounts of The company.

2. Provision has not been made for gratuity as no employee has put in the qualifying period of services. "

3. Balance under the heads Other Current Assets. Loans and Advances and Current Liabilities are subject to confirmation by respective Parties.

4. In the opinion of the Board the current assets, loans and advances have a value on Realization in the ordinary course of business, at least equal to the amount at which they are stated in the accounts, unless otherwise stated and adequate provision for all known Liabilities of the company has been made.

5. Investment of Rs.3,62,500 (Previous Year Rs 3,62,500) are not held in the name of the Company as required under Section 49 of the Companies Act , 1956 and , as certified by the Chairman are held in the names of Directors , their friends and / or relatives

6.Current Assets includes an amount of 83,77.170 (Previous year Rs 2,25,987) outstanding for a period of more than one year and as value for the same is yet to be received has been considered as good

7.Cash on hand at the end of the year Rs.191 (Previous year Rs. 3,06,936) has been taken as certified by the chairman

8.Additional information Pursuant to the paragraph 3 , 4 C and 4 D of part II of Schedule Vi to the Companies Act 1956.