Notes to Accounts of KDJ Holidayscapes and Resorts Ltd.

Mar 31, 2015

1. The accounts of the company have been prepared on going concern basis. In the opinion of Board of Directors of the Company, the current assets including loans and advances and debtors of the company have a value on realisation at least equal to the amount at which they are stated.

2. The Balances of Trade Receivables and Trade Payables and Loans & Advances are subject to confirmations and reconciliation, if any.

3. Related Party Disclosures as required by Accounting Standard - 18 is given in Annexure "A" to this Notes.

4. Deferred Revenue Expenditure

During the financial year ended March 31,2012 the Company had incurred certain expenses amounting to Rs. 76,22,358/- for which management was of the view that these expenses are providing future economic benefit and accordingly these expenses have not been charged to the Profit and Loss Account and are being amortised over a period of 10 years .

Accordingly , during the year, the Company has amortised 1/10th of the expenses amounting to Rs. 762,236 /- and debited the same to the Statement of Profit and Loss (Refer Note No. 23).

As on March 31,2015 the unamortised portion of these expenses amouting to Rs. 53,35,651/- have been carried as "Deferred revenue expenditure" (Refer Note 12 & Note 17) .

5. Preoperative Expenses

During the financial year ended March 31,2011 the Company had incurred certain expenses amounting to Rs. 9,52,127/- for which management was of the view that these expenses are providing future economic benefit and accordingly these expenses have not been charged to the Profit and Loss Account and has been amortised over a period of 5 years .

During the year, as per the accounting policy followed consistently, the Company has amortised 1/5th of the expenses amounting to Rs. 2,71,216 /- (Refer Note No. 23) and debited the same to the Statement of Profit and Loss of the current year. As on March 31,2015 unamortised portion of these expenses amounting to Rs. 1,38,481/- have been carried as "Pre-operative expenses" (Refer Note 12 & Note 17).

6. Contingent liabilities not provided for:

Compounding fees under sections 276C and 277 of the Income Tax Act , 1961 - amount unascertainable

7. Segment Reporting

In accordance with the requirements of Accounting Standard 17 "Segment Reporting", the Company''s business consists of one reportable business segment i.e. "Sale of Vacation Ownership", hence no separate disclosures pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital Employed are given.

8. Details of Loans given, Investments made and gurarantee given pursuant to clause 32 of the Equity Listing Agreement and section 186(4) of the Companies Act, 2013, are given in Annexure "B" to the notes

9. Figures of the previous year have been regrouped, reclassified and/or rearranged wherever considered necessary to conform to the layout of the current year.

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Mar 31, 2014

1. The accounts of the company have been prepared on going concern basis. In the opinion of Board of Directors of the Company, the current assets including loans and advances and debtors of the company have a value on realisation at least equal to the amount at which they are stated.

2. The Balances of Trade Receivables and Trade Payables and Loans & Advances are subject to confirmations and reconciliation, if any.

3. Related Party Disclosures as required by Accounting Standard - 18 is given in Annexure "A" to this Notes.

4. Income Tax Demand

No Provision has been made in accounts in respect of Income tax Liability as detailed below for interest under section 234 B and 220(2) as per orders passed for prior years as representation is being made by the Company before higher authorities for waiver of interest and the Company has already received relief to the extent of Rs. 30,51,684/-

The management is of the opinion that there will be no liability on this account.

5. Deferred Revenue Expenditure

During the financial year ended March 31, 2012 the Company has incurred certain expenses amounting to Rs. 7,622,358 for which management was of the view that these expenses are providing future economic benefit and accordingly these expenses have not been charged to the Profit and Loss Account and has been amortised over a period of 10 years .

During the year, as per the accounting policy followed consistently, the Company has amortised 1/10th of the expenses amounting to Rs. 762,236 /- and debited the same to the Profit and Loss Account of the current year. As on March 31, 2014 unamortised portion of these expenses amounting to Rs. 6,097,886/- have been reflected as "Deferred revenue expenditure" in Note 13 & Note 18.

6. Preoperative Expenses

During the financial year ended March 31, 2011 the holding Company has incurred certain expenses amounting to Rs. 9,52,127/- for which management was of the view that these expenses are providing future economic benefit and accordingly these expenses have not been charged to the Profit and Loss Account and has been amortised over a period of 5 years.

During the year, as per the accounting policy followed consistently, the Company has amortised 1/5th of the expenses amounting to Rs. 2,71,216 /- and debited the same to the Profit and Loss Account of the current year. As on March 31, 2014 unamortised portion of these expenses amounting to Rs. 4,09,697/- have been reflected as "Pre-operative expenses" in Note 13 & Note 18.

7. Deferred revenue income

Deferred Revenue income includes Membership fees, received or receivable from the members

8.

The Company is contingently liable in respect of :- As At As At 31-03-2014 31-03-2013

Corporate guarantee given to bank against loan given to subsidiary company 200,000,000 -

9. Segment Reporting

In accordance with the requirements of Accounting Standard 17 "Segment Reporting", the Company''s business consists of one reportable business segment i.e. "Sale of Vacation Ownership", hence no separate disclosures pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital Employed are given.

10. Figures of the previous year have been regrouped, reclassified and/or rearranged wherever considered necessary to correspond with the figures of current year.

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Mar 31, 2013

Note 1 : Employee Benefi ts

Disclosure pursuant to Accounting Standard - 15 ‘Employee Benefi ts’ has not been given as the same has been accounted on payment basis.

Note 2 :

a) In the opinion of Board of Directors; the Current Assets, Loans & Advances are realizable in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

Note 3 : Related Party disclosures

a. List of related parties and relationships:

i) Key Managerial Personnel

Pa wan Agarwal

Vinodkumar Shubhkaran Deora (w.e.f. March 26, 2013)

Directors

Surendra Kedia (w.e.f. March 26, 2013) Dinesh Kumar Jalan (w.e.f. March 26, 2013)

ii) Relatives of Key Managerial Personnel

Usha Kiran Deora Rajesh Jalan Lata Jalan

iii) Enterprises under signifi cant infl uence:

Dolly Exim Private Limited Santogen Textile Mills Limited A B Overseas Private. Limited Prestige Mini Township Private Limited Sea Scape Riva Hotel Private Limited Jamuna Estate Private Limited

iv) Subsidiaries

KDJ Hospital Limited

KDJ Hospitality Private Limited

Note 4 : Amalgamation

a) Nature of business of amalgamating company:

The Operation of KDJ Holidayscapes Limited (Holidayscapes) include providing Vacation Membership to its members.

b) Holidayscapes have been amalgamated with the Company with effect from April 01, 2011 in terms of the scheme of amalgamation (Scheme) sanctioned by the Honorable High Court of Mumbai vide their Order dated February 08, 2013. Pursuant to scheme all assets and liabilities of Holidayscapes have been transferred to and vested in the Company retrospectively with effect from April 01, 2011. Pursuant to amalgamation of Holidayscapes with the Company 5,130,000 equity shares of Rs 10/- each fully paid up of the Company were issued and alloted to the shareholders of erstwhile KDJ Holidayscapes Limited in accordance with swap ratio of 108:100. These shares have been subsequently allotted on March 26, 2013.

c) The amalgamation stated above have been accounted for under the "pooling of interests" method as prescribed by Accounting Standard (AS-14) notifi ed under Section 211(3C) of the Companies Act, 1956. Accordingly, the assets, liabilities and reserves of Holidayscapes as at April 01, 2011 have been taken over at their book values. As stipulated in the scheme of amalgamation, all reserves of the above mentioned company have been transferred to the General Reserve except for the balance lying in the statement of profi t and loss as on March 31, 2011, which have been transferred to the defi cit in the statement of profi t and loss of the Company.

From the Appointed Date upto the Effective date, the business of Holidayscapes Limited is deemed to have been carried out in trust for the Company. And hence, any income or profi t accruing or arising and any costs, charges, expenses and losses incurred in relation to Holidayscapes in accordance with the Scheme shall be treated as of the Company.

Pending completion of the formalities for transfer of titles of assets and liabilities acquired, such assets and liabilities are included in the books of the Company under the name of the erstwhile company.

The difference between the book value of assets and liabilities recorded in the Company have been adjusted to Reserves.

Accordingly, the amalgamation have resulted in transfer of assets, liabilities and reserves in accordance with the terms of the Scheme at the following summarized values on April 01, 2011:

Note 5 : Income Tax Demand

No Provision has been made in accounts in respect of Income tax Liability as detailed below for interest under section 234 B and 220(2) as per orders passed for prior years as representation is being made by the Company before higher authorities for waiver of interest and the management is of the opinion that there would be no liability on this account.

Note 6 : Deferred Revenue Expenditure

During the fi nancial year ended March 31, 2012 the Company has incurred certain expenses amounting to Rs. 7,622,358 for which management was of the view that these expenses are providing future economic benefi t and accordingly these expenses have not been charged to the Profi t and Loss Account and has been amortised over a period of 10 years . During the year, as per the accounting policy followed consistently, the Company has amortized 1/10th of the expenses amounting to Rs. 762,236 and debited the same to the Profi t and Loss Account of the current year. As on March 31, 2013 unamortised portion of these expenses amounting to Rs. 6,860,122 have been refl ected as "Deferred revenue expenditure" in Note 13 & Note 17.

Note 7 : Preoperative Expenses

During the fi nancial year ended March 31, 2011 the Company has incurred certain expenses amounting to Rs. 952,127 for which management was of the view that these expenses are providing future economic benefi t and accordingly these expenses have not been charged to the Profi t and Loss Account and has been amortised over a period of 5 years. During the year, as per the accounting policy followed consistently, the Company has amortized 1/5th of the expenses amounting to Rs. 271,216 and debited the same to the Profi t and Loss Account of the current year. As on March 31, 2013 unamortised portion of these expenses amounting to Rs. 680,912 have been refl ected as "Preoperative expenses" in Note 13 & Note 17.

Note 8 : Deferred revenue income

Membership fees, received or receivable from the members are accounted as Admission fees and Deferred Revenue Income under ‘Other Long-Term Liabilities / Other Current Liabilities’ and same have been amortized over the entitled vacation period.

Note 9 : Food and grocery items which are perishable in nature and are immaterial in value and are thus charged to Statement of Profi t and Loss as an expense in the year of purchase.

Note 10 : Operating Leases

The Company has taken premises on operating lease and entered into non-cancellable Leave and License agreements with various parties. The disclosure required to be made in accordance with Accounting Standard 19 on "Leases" is as under:

a) Future minimum lease payments under non-cancellable operating lease in aggregate for the following periods:

Note 11 : Segment Reporting

In accordance with the requirements of Accounting Standard 17 "Segment Reporting", the Company’s business consists of one reportable business segment i.e. "Sale of Vacation Ownership", hence no separate disclosures pertaining to attributable Revenues, Profi ts, Assets, Liabilities, Capital Employed are given.

Note 12 : Figures of the previous year have been regrouped, reclassifi ed and/or rearranged wherever considered necessary to correspond with the fi gures of current year. However in view of amalgamation (Note no. 28 above) the same are strictly not comparable.

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Mar 31, 2012

A. Terms & Conditions

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

In the event of liquidation of the Company, the holder of equity shares will 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.

Note 1 :

In the opinion of the Board the Current Assets, Loans & Advances are realisable in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

Note 2 :Commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances already made) and not provided for is Rs.5,40,00,000 (PY: Rs.Nil).

Note 3 : Disclosure pursuant to Accounting Standard - 15 ''Employee Benefits''

Liabilities in respect of Gratuity & Leave Encashment are accounted for on payment basis which is not in conformity with Accounting Standard (AS) 15 on Employee Benefits (Revised 2005) as prescribed by the Companies (Accounting Standards) Rules, 2006 which requires that Liabilities be accounted for on accrual basis.

Note 4 : Segment Reporting

The segment wise details as per Accounting Standard 17 "Segment Reporting" as notified by the Companies (Accounting Standard) Rules, 2006 is not applicable since the Company do not have separate reportable business segments during the year.

Note 5 :

In case of delinquent hirers or persons who have availed of financial facilities, appropriate action for the recovery of the outstanding amounts has been taken. Provision for Non Performing Assets on the said delinquent hirers has been made as per Reserve Bank of India guidelines on Non Banking Financial Companies

Note 6 :

The Company has, during the year, made a preferential issue of 18,10,000 Equity Shares of Rs.10 each at a premium of Rs.12 per Share in accordance with SEBI guidelines and received an amount aggregating to Rs.3,98,20,000 against the said allotment. Pending utilization as at March 31, 2012 the funds has been kept in Fixed Deposits with Bank, inter-corporate loans and current account with Bank.

Note 7 :

A Scheme of amalgamation of the Company with KDJ Hospitality Private Limited and KDJ Holidayscapes Limited having appointed date of April 1, 2011 has been approved by BSE but the said scheme has not been filed with High Court for approval hence became null and void. On 24th July,2012 subsequently a new scheme of arrangement with KDJ Holidayscapes Limited has been filed with BSE, which is subject to approval.

Note 8 :

During the year the name of the Company has been changed from Gomti Finlease (India) Limited to Two-up Financial Services Limited and fresh certificate of incorporation dated 16th September, 2011 has been received from the Registrar of Companies, Maharashtra

Note 9 :

Till the year ended 31st March 2011, the Company was using pre-revised schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31s1 March, 2012, the revised schedule VI notified under the Companies Act, 1956 has become applicable to the Company. The Company has re-grouped, reclassified and/or re-arranged previous year''s figures, wherever necessary to conform to current year''s classification. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements applicable in the current year.

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Mar 31, 2011

1. The Company has not made provision for Gratuity since the Company do not have any employees during the year.

2. No provision has been made in accounts in accounts in respect of Income Tax Liability for interest u/s 234 B and 220(2) as per orders passed for prior years as representation is being made by the company before higher authorities for waiver of interest and the management is of the opinion that there would be no liability on this account.

3. During the year previous ended 31st March 2010, the Company had made a final settlement with its Bankers in respect of its dues and the banker had waived off Rs. 149.64 Lacs on settlement . The said sum of Rs. 149.64 Lacs was considered and reflected as Capital Reserve. The same has been rectified during the current year and the said amount has been transferred to the Profit and Loss Account. The Company has also revised its Income Tax Return for the A.Y. 2010-11 to this effect.

4. As on 31.03.2011, there are no dues to Micro, Small and Medium Enterprises suppliers defined under "The Micro Small and Medium Enterprises Development Act, 2006".

5. In case of delinquent hirers or persons who have availed of financial facilities, appropriate action for the recovery of the outstanding amounts has been taken. Provision for Non Performing Assets on the said delinquent hirers has been made as per Reserve Bank of India guidelines on Non Banking Financial Companies

6. Balances in the Sundry Debtors, Loans & Advances and Other Liabilities are subject to confirmations and reconciliations. Consequential adjustment thereof, if any, will be given effect into the books of accounts in the year of such adjustments.

10. Related Party Disclosures

Related party disclosures as required by the Accounting Standard –18 on "Related Party Disclosures" Notified by the Companies (Accounting Standard) Rules, 2006 are given below.

b) Name of the enterprises having same Key Management Personnel and / or their relatives as the reporting enterprise with whom the Company has entered into transactions during the year.

- Ram House Limited

- Rammaica (India) Limited

- Ramfabric (India) limited

11. Segment Information

The segment wise details as per Accounting Standard 17 "Segment Reporting" as notified by the Companies (Accounting Standard) Rules, 2006 is not applicable since the Company do not have separate reportable business segments during the year.

12. Provision for Taxes

No Provision for current tax is made since the Company do not have any taxable income during the year .

Deferred Taxes

As per Accounting Standard ( AS-22 ) on " Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India , the timing difference relating to unabsorbed losses results into Deferred Ta x Assets. In view of present uncertainty regarding generation of sufficient future taxable income and as a measure of prudence the Deferred Tax Assets on the same has not been recognized in the accounts.

13. Chirania Trading Private Limited (CTPL) acquired 22,51,000 equity shares on 18th November, 2010 from the existing promoters of the Company and has also made an Open Offer for acquiring another 20% equity shares from the Public in terms of SEBI (SAST) Regulation 1997 vide Public Announcement on 23rd November, 2010. The Open Offer has been completed on 7th April, 2011 and CTPL has acquired 1,000 equity shares in Open Offer (in physical form) which is still to be transferred in the name of CTPL. Accordingly, CTPL is holding 22,52,000 equity shares i.e. 75.04 % holding of the Company and is now promoter and in charge of the management of the Company.

14. The Company has incurred losses during the year and its net worth has been significantly eroded. However, having regard to the change in the management of the Company and considering the future expansion plans of the Company the financial statements have been prepared on a going concern basis and no adjustments are required to the carrying value of assets and liabilities.

15. Change of Name:

The name of the Company has been changed from Gomti Finlease (India) Limited to Two-up Financial Services Limited and fresh certificate of incorporation dated 16th September, 2011 has been received from the Registrar of Companies, Maharashtra

16. The financial statements for the year ended 31st March 2010 were audited by another firm of Chartered Accountants and the same has been reclassified, wherever considered necessary, to conform with the current year''s presentation. Figures wherever not available/ furnished in last year''s financial statements have not been given and hence are not strictly comparable.

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Mar 31, 2010

1 The State Bank of India had filed a suit in the High Court for recovery of debit balance in Cash Credit account and a Court Receiver was appointed by order dated 5th July, 1996 to take charge of the stocks and book debls of the company. During the year the matter has been resolved with the bank amicably and dues have been fully settled.

2. In case of delinquenl hirers or persons who have availed of financial facilities, appropriate action for the recovery of the outstanding amounts has been taken. Provision lor Non-performing Assets on the said delinquent hirers was done in earlier years as per Reserve Bank Of India guidelines on Non-Banking Financial Companies-During the year, the company has recovered amount from some of is debtors / Loans & Advances.

3, a) As at 31st March, 2010, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Act, 2006. to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

b) The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

4. The balances in the accounts of debtors and loans and advances are suject to confirmation t reconciliation.

5, Previous years figures have regrouped / reclassified / recast whereever expedient.

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Mar 31, 2009

(1) The State Bank of India had filed a suit in the High Court for recovery of debit balance in Cash Credit Account and a Court Receiver has been appointed by order dtd. 5th July, 1996 to take charge of the stock-on-Hire of the Company. The Company is disputing its liability for interest since the stopping of operation of the said account by the Bank, Hence no provision for interest payable for the current year is made in the books. The matter of recovery is now with the Debt Recover/ Tribunal. Mumbai for final disposal.

(2) Segment Reporting : (Accounting Standard 17) :

Segment reporting requirements under Accounting Standerd 17 issued by Institute of Chartered Accountants of India is neither done, nor applicable, since no business activities conducted during the year and hence .there are no reportable segments.

(3) Acounting for Taxes on Income: (Accounting Standerd 22)

The management has informed and explained that it has substantial unabsorbed and unabsorbed carried forward losses as also tr it is uncertain about there being taxable income in the near future of at least three years, and hence the Accounting Standerd issued by the Institute of Chartered Accountants of India on Accounting for taxes on Income would not be applicable to it. Hence, effect and or disclosure as required by Accounting Standerd 22 is made.

(4) The accounts have been prepared on principle applicable to Going Concern despite viability of restarting and continuing future operatic remaning in question / doubt.

(5) In case of delinquent hirers or persons who have availed of financing facilities, appropriate action for the recovery of the outstandi amounts has been taken. Provision for Non-Performing Assets on the said delinquent hirers was done in earlier year as per Reser Bank of India guidelines on Non-Banking Financial Companies.

(6) During the year the company has recovered from some of its debtors.

(7) The company has recovered advances amounting to Rs. 325,000/- for which proportionate provision for NPA was made in earlier yea is written back during the year accordingly.

(8) a) As at 31st March, 2009, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises A 2006, to whom the company owes dues on account of principal amount together with interest and accordingly no additioi disclosure have been made.

b) The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have be identified on the basis of information available with the Company. This has been relied upon by the auditors.

(9) The balances in the accounts of debtors and loans and advances are subject to confirmation / reconciliation.

(10) Previous years figures have regrouped / reclassified / recast whereever expedient.

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Mar 31, 2008

(1) The State Bank of India had filed a suit in the High Court for recovery of debit balance in Cash Credit Account and a Court Receiver has been appointed by order dtd. 5th July, 96 to take charge of the stock-on-Hire of the Company. The Company is disputing its liability for interest since the stopping of operation of the said account by the Bank, Hence no provision for interest payable for the current year is made in the books. The matter of recovery is now with the Debt Recovery Tribunal, Mumbai for final disposal.

For the period 8,945,277 8,945,277 Cummulative 115,823,093 106,877,816

(2) No provision for gratuity has been made as no employee has put in the quali- fying period of service for entitlement of this benefit.

(3) No provision is made in the books regarding Annual Listing fees payable to fol- lowing Stock Exchanges in view of pending request for delisting.

Ahmedabad Stock Exchange 82,500 75,000

(4) The Company had received communication from Reserve Bank of India rejecting its application as an Non-Banking Financial Services. However, the company is not carrying any NBFC activites for the last 5-6 years.

(5) No provision has been made in accounts in respect if income tax demand as per assessment order passed for an earlier year as the same has been disputed by the company with higher appellete authorities and the company is of the opinion that there would be no liability on this account.

(6) Segment Reporting : (Accounting Standard 17) :

Segment reporting requirements under Accounting Standerd 17 issued by Institute of Chartered Accountants of India is neither done, nor applicable, since no business activities conducted during the year and hence there are no reportable segments.

(7) Acounting for Taxes on Income: (Accounting Standerd 22)

The management has informed and explained that it has substantial unabsorbed and unabsorbed carried forward losses as also that it is uncertain about there being taxable income in the near future of at least three years, and hence the Accounting Standerd 22 issued by the Institute of Chartered Accountants of India on Accounting for taxes on Income would not be applicable to it. Hence, no effect and or disclosure as required by Accounting Standerd 22 is made.

(8) The accounts have been prepared on principle applicable to Going Concern despite viability of restarting and continuing future operations remaning in question / doubt.

(9) In case of delinquent hirers or persons who have availed of financing facilities, appropriate action for the recovery of the outstanding amounts has been taken. Provision for Non-Performing Assets on the said delinquent hirers was done in earlier year as per Reserve Bank of India guidelines on Non-Banking Financial Companies.

(10) During the year the company has not recovered from some of its debtors.

(11) The company has recovered advances amounting to Rs. 75,000/- for which proportionate provision for NPA was made in earlier years, is written back during the year accordingly.

(12) a) As at 31st March, 2008, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Act, 2006, to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

b) The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

(13) The balances in the accounts of debtors and loans and advances are subject to confirmation / reconciliation.

(14) Previous years figures have regrouped / reclassified / recast whereever expedient.

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Mar 31, 2007

(B) NOTES ON ACCOUNTS :

(1) The State Bank of India had filed a suit in the High Court for recovery of debit balance in Cash Credit Account and a Court Receiver has been appointed by order dtd. 5th July, 96 to take charge of the stock-on-Hire of the Company. The Company is disputing its liability for interest since the stopping of operation of the said account by the Bank, Hence no provision for interest payable for the current year is made in the books. The matter of recovery is now with the Debt Recovery Tribunal, Mumbai for final disposal. For the period 8,945,277 8,945,277 Cummulative 106,877,816 97,932,539

(2) No provision for gratuity has been made as no employee has put in the qualifying period of service for entitlement of this benefit.

(3) No provision is made in the books regarding Annual Listing fees payable to following Stock Exchanges in view of pending request for delisting.

Ahmedabad Stock Exchange 75,000 67,500

(4) The Company had received communication from Reserve Bank of India rejecting its application as an Non-Banking Financial Services. However, the company is not carrying any NBFC activites for the last 5-6 years.

(5) No provision has been made in accounts in respect if income tax demand as per assessment order passed for an earlier year as the same has been disputed by the company with higher appellete authorities and the company is of the opinion that there would be no liability on this account.

A.Y. 1994-1995 2,177,693 2,177,693 A.Y 1995-1996 4,018,629 4,018,629 A.Y. 1998-1999 184,790 184,790

(6) Segment Reporting : (Accounting Standard 17)

Segment reporting requirements under Accounting Standerd 17 issued by Institute of Chartered Accountants of India is neither done, nor applicable, since no business activities conducted during the year and hence there are no reportable segments.

(7) Acounting for Taxes on Income: (Accounting Standerd 22)

The management has informed and explained that it has substantial unabsorbed carried forward losses as also that it is uncertain about there being taxable income in the near future of at least three years, and hence the Accounting Standerd 22 issued by the Institute of Chartered Accountants of India on Accounting for taxes on Income would not be applicable to it. Hence, no effect and or disclosure as required by Accounting Standerd 22 is made.

(8) The accounts have been prepared on principle applicable to `Going Concern despite viability of restarting and continuing future operations remaning in question/doubt.

(9) In case of delinquent hirers or persons who have availed of financing facilities, appropriate action for the recovery of the outstanding amounts has been taken. Provision for Non-Performing Assets on the said delinquent hirers was done in earlier year as per Reserve Bank of India guidelines on Non-Banking Financial Companies.

(10) During the year the company has recovered Rs. 2,10,000/- from same of its debtors for which provision for NPA was made in earlier years is now written back in the current year to the extent received.

(11) The company has recovered advances amounting to Rs. 1,08,000/- for which proportionate provision for NPA was made in earlier years, is written back during the year accordingly.

(12) The balances in the accounts of debtors and loans and advances are subject to confirmation and reconciliation.

(13) Previous years figures have regrouped/reclassified/recast wherever expedient.

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Mar 31, 2006

Current Previous year year Rs. Rs.

(1) The State Bank of India had filed a suit in the High Court for recovery of debit balance in Cash Credit Account and a Court Receiver has been appointed by order dtd. 5th July, 96 to take charge of the stock-on-Hire of the Company. The Company is disputing its liability for interest since the stopping of operation of the said account by the Bank, Hence no provision for interest payable for the current year is made in the books. The matter of recovery is now with the Debt Recovery Tribunal, Mumbai for final disposal.

For the period 8,945,277 8,945,277

Cummulative 97,932,539 88,987,262

(2) No provision for gratuity has been made as no employee has put in the qualifying period of service for entitlement of this benefit

(3) No provision is made in the books regarding Annual Listing fees payable to following Stock Exchanges in view of pending request for delisting.

Bombay Stock Exchange

Ahmedabad Stock Exchange 67,500 60,000

(4) The Company had received communication from Reserve Bank of India rejecting its application as an Non-Banking Financial Services However, the company is not carrying any NBFC activites for the las 4-5 years

(5) No provision has been made in accounts in respect if income tax demand as per assessment order passed for an earlier year as the same has been disputed by the company with higher appellete authorities and the company is of the opinion that there would be no liability on this account.

During the year, the company is received favourable appellate order for F.Y. 1999-2000, 2000-2001, thereby demand has become NIL.

A.Y. 1994-1995 2,177,693 2,177,693

A.Y. 1995-1996 4,018,629 4,018,629

A.Y. 1998-1999 184,790 184,790

(6) Other additional information pursuant to Part II of the Schedule-IV of the Companies Act, 1956 ;

Opening stock - No. Of Shares 44,800 44,800

- Value in Rs. 2,86,208 274,567

Purchases - No. Of Shares

- Value in Rs

Sales - No. Of Shares 8,300 -

- Value in Rs. 31,979 -

Closing stock - No. Of Shares 36,500 44,800

- Value in Rs 2,52,093 2,86,208

(7) (a) Loans & Advances include amount paid to following companies under the same management :

Rammaica (India) Limited 13,930,000 13,893,000

Ramply (India) Limited

(b) A firm, in which some of the Directors are partners 3,42,017 35,329,017

Current Previous year year Rs. Rs.

(8) Segment Reporting : (Accounting Standard 17) :

Segment reporting requirements under Accounting Standard 17 issued by Institute of Chartered Accountants of India is not done, nor applicable, since no business activities conducted during the year and hence, there are no reportable segments.

(9) Related Party Disclosures ; (Accounting Standerd 18) a) List of Related Parties and Relationship:

Party : Relationship

1 Ram House Limited : Associate

2 Rammaica (India) Limited : Associate

3. Ramfabric (India) Limited : Associate

4 Ramply (India) Limited : Associate

5 Ram & Company Associate

6 Ram Laminates (Poona) Associate

7. Ram Metal Industries Associate

8 Ram Plywoods Associate

b) Related Party Transactions;

Transactions Associates Associates Rs. Rs.

Rates & Taxes 11,329 23,131

Telephone Expenses 5,272 11,166

Electricity Expenses 19,581 40,018

Repairs & Maintenance 15,989 25,079

Water charges 1,285 2,590

Watch & Ward Expenses 10,910 21,165

Salary & Benefits 53,453 121,679

Other Admn.Exp. 16,612 39,849

Credit Balance outstanding as on 31-03-2006 1,34,431 284,677

Loans and advances receivables - -

(Debit Balance As on 31-03-2006 43,143,017 49,222,017

Loans and advances payable (Credit Balance As on 31-03-2006) - 8,267,000

(10) Earning Per Share (EPS) ; (Accounting Standerd 20)

F.Y.2005-2006 F.Y.2004-2005 Rs.in lakhs Rs.in lakhs

a. Profit/(Loss) after Tax attributable to Shareholders (0.04) (4.99)

b. Weighted average number of Equity Shares for Basic EPS 300.12 300.12

c. Weighted average number of Equity Shares for diluted EPS 300.12 300.12

d. Nominal value of Equity Shares. Rs.10/- per share Rs.10/- per share

e. Basic/Diluted/Weighted Average EPS (0.01) (1.66)

(11) Acounting for Taxes on Income: (Accounting Standerd 22)

The management has informed and explained that it has substantial unabsorbed depreciation and unabsorbed carred forward losses as also that it is uncertain about there being taxable income in the near future of at least three years, and hence the Accounting Standerd 22 issued by the Institute of Chartered Accountants of India on Accounting for taxes on Income would not be applicable to it. Hence, no effect and or disclosure as required by Accounting Standerd 22 is made.

(12) In case of delinquent hirers or persons who have availed of financing facilities, appropriate action for the recovery of the outstanding amounts has been taken. Provision for Non-Performing Assets on the said delinquent hirers is done as per Reserve Bank of India guidelines on Non-Banking Financial Companies.

(13) The balances in the accounts of debtors and loans and advances are subject to confirmation.

(14) Previous years figures have regrouped/reclassified/recast wherever expedient.

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Mar 31, 2004

(1) The State Bank of India had filed a suit in the High Court for recovery of debit balance in Cash Credit Account and a Court Receiver has been appointed by order dtd. 5th July, 96 to take charge of the stock-on-Hire of the Company. The Company is disputing its liability for interest since the stopping of operation of the said account by the Bank, Hence no provision for interest payable for the current year is made in the books. The matter of recovery is now with the Debt Recovery Tribunal, Mumbai for final disposal.

For the period 8,945,277 8.945,277 Cummulative 80,041,985 71.096.708

(2) No provision for gratuity has been made as no employee has put in the qualifying period of service for entitlement of this benefit.

(3) No provision is made in the books regarding Annual Listing fees payable to following Stock Exchanges in view of pending request for delisting.

Bombay Stock Exchange Ahmedabad Stock Exchange 52,500 45,000

(4) The Company during the year has received communication from Reserve Bank of India rejecting its application as an Non-Banking Financial Services. However, the company is not carrying any NBFC activites for the last 4-5 years.

(5) Acounting for Taxes on Income: (Accounting Standerd 22)

The management has informed and explained that it has substantial unabsorbed depreciation and unabsorbed carred forward losses as also that it is uncertain about there being taxable income in the near future of at least three years, and hence the Accounting Standerd 22 issued by the Institute of Chartered Accountants of India on Accounting for taxes on Income would not be applicable to it. Hence, no effect and or disclosure as required by Accounting Standerd 22 is made.

(6) In case of delinquent hirers or persons who have availed of financing facilities, appropriate action for the recovery of the outstanding amounts has been taken. Provision for Non-Performing Assets on the said delinquent hirers is done as per Reserve Bank of India guidelines on Non-Banking Financial Companies.

(7) The balances in the accounts of debtors and loans and advances are subject to confirmation.

(8) Previous years figures have regrouped/ reclassified/ recast wherever expedient.

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Mar 31, 2002

NOTES ON ACCOUNTS :

(1) The State Bank of India had filed a suit in the High Court for recovery of debit balance in Cash Credit Account and a Court receiver has been appointed by order dated 5th July, 1996 to take charge of the stock-on-Hire of the Company. The Company is disputing its liability for interest since the stopping of operation of the said account by the Bank. Hence, no provision for interest payable for the current year is made in the books. The matter of recovery is now with the Debt Recovery Tribunal, Mumbai for final disposal.

For the period 8,945,277 8,945,277

Cummulative 62,151,431 53,206,154

(2) No provision for gratuity has been made as no employee has put in the qualifying period of service for entitlement of this benefit.

(3) No provision is made in the books regarding Annual Listing fees payable to following Stock Exchanges in view of pending request for delisting.

Bombay Stock Exchange -- 71,500

Ahmedabad Stock Exchange 37,500 30,000

(4) The Company during the year has received communication from Reserve Bank of India rejecting its application as an Non-Banking Financial Services. However, the company is not carrying any NBFC activities for the last 4-5 years.

(5) No provision has been made in accounts in respect if income tax demand as per assessment order passed for an earlier year as the same has been disputed by the company with higher appellete authorities and the company is of opinion that there would be no liability on this account.

A.Y. 1994-95 2,177,693 2,177,693

A.Y. 1995-96 4,018,629 4,018,629

(6) Other additional information pursuant to Part II of the Schedule-IV to the Companies Act, 1956 :

Opening stock - No. Of Shares 45,800 45,800

- Value in Rs. 276,567 287,287

Purchases - No. Of Shares -- --

- Value in Rs. -- --

Sales - No. Of Shares 1,000 --

- Value in Rs. 2,000 --

Closing stock - No. Of Shares 44,800 45,800

- Value in Rs. 274,567 276,567

(7) Loans & Advances include amount paid to following companies under the same management :

Rammaica (India) Limited 11,978,000 14,079,000

Ramfabric (India) Limited 8,983,000 6,215,000

As at As at

31.03.2002 31.03.200l

Rs. Rs.

(8) Segment Reporting : (Accounting Standard 17)

Segment reporting requirements under Accounting Standard 17 issued by Institute of Chartered Accountants of India is not done, nor applicable, since no business activities conducted during the year and hence, there are no reportable segments.

(9) Related Party Disclosures; (Accounting Standard 18)

a) List of Related Parties and Relationship :

PARTY RELATIONSHIP

1 Ram House Limited Associate

2 Rammaica (India) Limited Associate

3 Ramfabric India) Limited Associate

4 Ramply (India) Limited Associate

5 Mis. Ram & Company Associate

b) Related Party Transactions :

Transactions Associates

Rs, Compensation Paid 32,864

Rates & Taxes 5,546

Telephone Expenses 4,326

Electricity Expenses 12,929

Repairs & Maintenance 9,342

Water charges 2,314

Salary & Benefits 8,442

Other Admn.Exp. 4,271

Credit Balance outstanding as on 31-03-2002 80.030

Loans and advances receivables 140,918,000 (Debit Balance As on 31-03-2002)

Loans and advances payable 5,087,500 (Credit Balance As on 31-03-2002)

Note : Being the 1st year of application of Accounting Standard 18 - Related Party Disclosure, the previous years figures have not been disclosed.

(10) Earning Per Share (EPS) ; (Accounting Standard 20)

F.Y.2001-2002 F.Y.2000-2001

Rs.in lakhs Rs.in lakhs a. Profit/(Loss) after Tax attributable to Shareholders (18.45) (25.49)

b. Weighted average number of Equity Shares for Basic EPS 300.12 300.12

c. Weighted average number of Equity Shares for diluted EPS 300.12 300.12

d. Nominal value of Equity Shares. Rs.10/- per share Rs.10/- per share

e. Basic/Diluted EPS (6.15) (8.49)

(11) Accounting for Taxes on Income : (Accounting Standard 22)

The management has informed and explained that it has substantial unabsorbed depreciation and unabsorbed carried forward losses as also that it is uncertain about there being taxable income in the near future of at least three years, and hence the Accounting Standard 22 issued by the Institute of Chartered Accountants of India on Accounting for Taxes on Income would not be applicable to it. Hence, no effect and or disclosure as required by Accounting Standard 22 is made.

(12) In case of delinquent hirers or persons who have availed of financing facilities, appropriate action for the recovery of the outstanding amounts has been taken. Provision for Non-Performing Assets on the said delinquent hirers is done as per. Reserve Bank of India guidelines on Non-Banking Financial Companies.

(13) The balances in the accounts of debtors and loans and advances are subject to confirmation.

(14) Previous years figures have regrouped/reclassified/recast where ever expedient.

Current Previous Year Year

Rs. Rs.

ADDITIONAL INFORMATION AS REQUIRED UNDER PART IV OF SCHEDULE VI TO THE COMPANIES ACT, 1956

i) Balance Sheet Abstract and Companys General Business Profile :

Registration No. 71710 71710

State Code 11 11

Balance Sheet Date 31.03.2002 31.03.2001

ii) Capital raised during the year :

Public Issue NIL NIL

Bonus Issue NIL NIL

Rights Issue NIL NIL

Private Placement NIL NIL

iii) Position of Mobilisation and Deployment of Funds :

Total Liabilities 82,638,985 77,504,485

Sources of Funds :

Paid up capital 30,012,000 30,012,000

Reserves and surplus NIL NIL

Secured loans 46,464,485 46,464,485

Unsecured loans 6,162,500 1,028,000

TOTAL ASSETS 82,638,985 77,504,485

Application of Funds

Net fixed assets NIL NIL

Investments NIL NIL

Net current assets 42,842,303 35,610,013

Miscellaneous expenditure 263,645 355,690

Accumulated losses 39,533,034 41,538,779

iv) Performance of the Company :

Turnover (Income) 6,450 2,361

Total Expenditure 1,851,289 2,551,689

Profit/(Loss) before tax (1,844,839) (2,549,328)

Profit/(Loss) after tax (1,844,839) (2,549,328)

Earnings per share (Rs.) (6.15) (8.49)

Dividend rate NIL NIL

V) Generic names of three Principal products, services of the company

Item Code No. (ITC Code) Not Applicable

Product description

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Mar 31, 2000

(1) The State Bank of India had filed a suit in the High Court for recovery of debit balance in Cash Credit Account and a Court receiver has been appointed by order dated 5th July, 1996 to take charge of the stock - on - Hire of the Company. The Company is disputing its liability for interest since the stopping of operation of the said account by the Bank. Hence, no provision for interest payable for the current year is made in the books.

For the period 8,945,277 8,945,277

Cummulative 44,260,877 35,315,600

(2) No provision for gratuity has been made as on employees has put in the qualifying period of service for entitlement of this benefit.

(3) No provision is made in this books regarding Annual Listing fees payable to following Stock Exchanges in view of pending request for delisting

Bombay Stock Exchange 61,500 41,000

Ahmedabad Stock Exchange 22,500 15,000

(4) Other additional information pursuant to Part II of the Schedule -IV to the Companies Act, 1956 :

Opening Stock - No. Of Shares 61,600 61,600

- Value in Rs. 374,812 355,178

Purchase - No. Of Shares -- --

- Value in Rs. -- --

Sales - No. Of Shares 15,000 --

- Value in Rs. 131,500 --

Loss of shares in transit- No. Of Shares 800 --

- Value of Rs. 2,655 --

Closing Stock - No. Of Shares 45,800 61,600

- Value of Rs. 287,287 374,812

(5) Loans & Advances include amount paid to following companies under the same management :

Gomti Hipurfin Pvt. Ltd. -- 2,643.500

Rammaica (India) Limited 13,395,845 12,932,845

Ramfabric (India) Limited 6,076,655 5,950,655

Ramply (India) Limited 10,499,500 10,469,000

(6) In case of delinquent hirers or persons who have availed of financing facilities, appropriate action for the recovery of the outstanding amounts has been taken. Provisions for Non-Performing Assets on the said delinquent hirers is done as per Reserve Bank of India guidelines on Non-Banking Financial Companies.

(7) The balances in the accounts of debtors and loans and advances are subject to confirmation.

(8) Previous years' figures have regrouped/reclassified/recast where ever expedient.

---

Mar 31, 1999

(1) The State Bank of India had filed a suit in the High Court for recovery of debit balance in Cash Credit Account and a Court receiver has been appointed by order dated 5th July, 1996 to take charge of the stock - on - Hire of the Company. The Company is disputing its liability for interest since the stopping of operation of the said account by the Bank. Hence, no provision for interest payable for the current year is made in the books.

(2) No provision for gratuity has been made as no employee has put in the qualifying period of service for entitlement of this benefit.

(3) Loans & Advances include amount paid to following companies under the same management :

Gomti Securities Pvt. Ltd.

Gomti Hirpurfin Pvt. Ltd.

Gomti Credit & Finance Pvt. Ltd

Rammaica (India) Limited

Ramfabric (India) Limited

Ramply (India) Limited

(4) In case of delinquent hirers or persons who have availed of financing facilities, appropriate action for the recovery of the outstanding amounts has been taken. Since the company is fully secured by the assets financed, the directors are of the opinion that no provision is necessary on this account.

(5) The balances in the accounts of debtors and loans and advances are subject to confirmation.

(6) Previous years' figures have regrouped/reclassified/recast where ever expedient.

---

Mar 31, 1998

1. The Company has lodged a claim with the State Bank Of India, for the refund of excess interest charged by them for the earlier years. The Directors are of the opinion that the refund claim is tenable. Hence no provision for interest for the current year payable to the Bank has been made in the books as the same will be adjusted against the interest refundable as above.

For the period 8,945,277 6,945,277 Cumulative 26,370,323 17,425,046

The State Bank Of India filed a suit with the High Court, Mumbai for recovery of its dues. The Hon'ble High Count, Mumbai, has appointed a Court Receiver vide its Order dated 5th July, 1996 in that regard. Other than the net stock-on-hire, the company does not hold any assets covered by the said Order.

2.No provision for gratuity has been made as no employee has put in the qualifying period of service for entitlement of this benefit.

3. Loans & Advances include amount paid to following companies under the same management :

Gomti Securities Pvt. Ltd Gomti Hipurfin Pvt. Ltd Gomti Capital Markets (India) Ltd Gomti Credit & Finance Pvt. Ltd. Rammacia (India) Limited

4. In case of delinquent hirers or persons who have availed of financing facilities, appropriate action for the recovery of the outstanding amounts has been taken. Since the company is fully secured by the assets financed, the directors are of the opinion that no provision is necessary on his account.

5. The balances in the accounts of debtors and loans and provision are subject to confirmation.

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Mar 31, 1997

Information is not available in the Annual Report 1997-98.

---

Mar 31, 1996

(1) Sundry Debtors include an amount due from M/s Ramglas (India) Ltd., a company under the same management.

(2) Loans and Advances include deposit for premises paid to:

(a) Ram House Ltd, a company under the same management

(b) a firm in which some of the directors are partners

(3) The Company has lodged a_claim with the State Bank Of India, for the refund of excess interest charged by them for the earlier years. The Directors are of the opinion that the refund claim is tenable. Hence no provision for interest for the current year payable to the Bank has been made in the books as the same will be adjusted against the interest refundable as above.

(4) No provision 4or gratuity has been made as no employee has put in the qualifying period of service for entitlement of this benefit.

(5) Other additional information pursuant to Part II of the Schedule VI to the Companies Act, 1956 are not applicable.

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Mar 31, 1995

(1) Sundry Debtors include amount due from the following companies under the same management.

Current Previous Year Year Rs. Rs.

(a) Rammaica (India) Limited -- 3700664 (b) Ramply (India) Limited -- 2090000 (c) Ramglas (India) Limited 1650000 1484703

(2) Loans and Advances include lease deposit for premises paid to 888892 100000

Ram House Ltd, a company under the same management.

(3) No provision for gratuity has been made as no employee has put in the qualifying period of services for the entitlement of this benefit.

(4) In view of depreciation to be claimed on leased assets, no provision for income tax has been made in the accounts.

(5) Additional information pursuant to part II of the schedule IV to the

A) Expenditure incurred on employees who were in receipt of remuneration in aggrerate at the rate of not less than Rs.3,00,000/-

Current Previous Year Year Rs. Rs. a) Employees whose remuneration in aggregate was Rs.3,00,000/- per year NIL NIL

b) Employees whose remuneration in aggregate was Rs.25000/- or more per month who were employed for the part of the year

Number -- 1 Salaries and Perquisites -- 122219 Contribution to provident and other funds -- --

(6) In case of delinquent hirers or persons who have availed of financing facilities, appropriate action for the recovery of the outstanding amounts has been taken. Since the company is fully secured by the assets financed, the directors are of the opinion that no provision is necessary on this account. (7) The balances in the accounts of debtors and loans and provision are subject to confirmation.

(8) The previous periods figures have regrouped/reclassified wherever necessary.