Notes to Accounts of Rose Merc. Ltd.

Mar 31, 2025

(K) Provisions and Contingencies
Provisions:

Provisions are recognized when there is a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and there is a reliable
estimate of the amount of the obligation. Provisions are measured at the best
estimate of the expenditure required to settle the present obligation at the Balance
sheet date and are discounted to its present value as appropriate.

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
nonoccurrence of one or more uncertain future events not wholly within the control
of the company ora present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made, is termed as a contingent liability.

(L) Revenue recognition

Revenue is measured at fair value of the consideration received or receivable. Revenue
is recognized when (or as) the Company satisfies a performance obligation by
transferring a promised good or service (i.e. an asset) to a customer. An asset is
transferred when (or as) the customer obtains control of that asset
When (or as) a performance obligation is satisfied, the Company recognizes as revenue
the amount of the transaction price (excluding estimates of variable consideration) that
is allocated to that performance obligation.

The Company applies the five-step approach for recognition of revenue:

i. Identification of contracts) with customers;

ii. Identification of the separate performance obligations in the contract;

iii. Determination of transaction price;

iii. Allocation of transaction price to the separate performance obligations; and

iv. Recognition of revenue when (or as) each performance obligation is satisfied.

(M) Other income:

Interest: Interest income is calculated on effective interest rate, but recognized on a
time proportion basis taking into account the amount outstanding and the rate
applicable.

Dividend: Dividend income is recognized when the right to receive dividend is
established.

(N) Finance Cost

Borrowing costs that are directly attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is
one that necessarily takes substantial period of time to get ready for its intended use.
based on borrowings incurred specifically for financing the asset or the weighted
average rate of all other borrowings, if no specific borrowings have been incurred for
the asset.

Interest income earned on the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from the borrowing costs eligible
for capitalization.

Borrowing costs include exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the interest cost.

All other borrowing costs are charged to the Statement of Profit and Loss for the period
for which they are incurred.

(O) Earnings per share (EPS):

Basic EPS is calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equities shares outstanding
during the period. For the purpose of calculating diluted EPS, the net profit or loss for
the period attributable to equity shareholders and the weighted average number of
additional equity shares that would have been outstanding are considered assuming
the conversion of all dilutive potential equity shares. Earnings considered in
ascertaining the EPS is the net profit for the period and any attributable tax thereto for
the period.

(P) Fair Value Measurement:

The Company measures financial instruments such as investments in quoted equity
shares, certain other investments etc. at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability
at the measurement date. All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorized within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole.

Level 1 - Quoted (unadjusted) market prices in active markets for identical
assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is unobservable.

(Q) Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and
a financial liability or equity instrument of another entity.

Financial assets:

Initial recognition

Financial assets are recognized when the Company becomes a party to the
contractual provisions of the instruments. Financial assets other than trade
receivables and other specific assets are initially recognized at fair value plus

transaction costs for all financial assets not carried at fair value through profit or loss.
Financial assets carried at fair value through profit or loss are initially recognized at
fair value, and transaction costs are expensed in the Statement of Profit and Loss.

Subsequent measurement

Financial assets, other than equity instruments, are subsequently measured at
amortized cost, fair value through other comprehensive income or fair value through
profit or loss on the basis of both:

i. The entity’s business model for managing the financial assets and

ii. The contractual cash flow characteristics of the financial asset.

De-recognition

The Company derecognizes a financial asset when the contractual rights to the cash
flows from the financial asset expire, or it transfers rights to receive cash flows from
an asset, it evaluates if and to what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks
and rewards of the asset, nor transferred control of the asset, the Company
continues to recognize the transferred asset to the extent of the Company''s
continuing involvement. In that case, the Company also recognizes an associated
liability. The transferred asset and the associated liability are measured on a basis
that reflects the rights and obligations that the Company has retained.

Financial Liabilities:

Initial Recognition and Subsequent Measurement

All financial liabilities are recognized initially at fair value and in case of borrowings
and payables, net of directly attributable cost. Financial liabilities are subsequently
carried at amortized cost using the effective interest method. For trade and other
payables maturing within one year from the Balance Sheet date, the carrying
amounts approximate fair value due to the short maturity of these instruments.
Changes in the amortized value of liability are recorded as finance cost

De-recognition

A financial liability is de-recognized when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is replaced by
another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognized in the
statement of profit or loss.

The previous year''s figures have been reworked, regrouped, and reclassified wherever
necessary. Amounts and other disclosures for the preceding year are included as an
integral part of the current annual financial statements and are to be read in relation
to the amounts and other disclosures relating to the current financial year.

22. Credit and Debit balances of unsecured loans, sundry creditors, sundry Debtors,
loans and Advances are subject to confirmation and therefore the effect of the
same on profit could not be ascertained.

Act, 2006 (MSMED Act, 2006) but has not received the same in totality. The above
information is compiled based on the extent of responses received by the company from its
suppliers.

27. Title deeds of immovable Property

Tittle deeds of immovable property has not been held in the name of promoter, director,
or relative of promoter/ director or employee of promoters / director of the company,
hence same are held in the name of the company.

28. Revaluation of Property, Plant and Equipment and Intangible Assets:-

The company has not done revaluation of Property, Plant and Equipment and Intangible
Assets.

29. Capital Work In Progress (CWIP):-

There is no Capital Work In Progress (CWIP) for the current year.

30. Intangible assets under development: -

There are no Intangible assets under development in the current year.

31. Details of Benami Property held:-

The company does not have any benami property, where any proceeding has been
initiated or pending against the company for holding any benami property under the
Benami Transaction [prohibition) act, 1988 and rules made there under.

32. Willful Defaulter: -

The Company has not been declared a willful defaulter by any bank or financial
institution or government or government authority

33. Relationship with Struck off Companies; -

The company does not have such transaction with Struck off Companies.

34. Registration of charges or satisfaction with Registrar of Companies: -

The company does not have any charges or satisfaction, which is yet to be registered
with Registrar of Companies beyond the statutory period.

35. Compliance with approved Scheme(s) of Arrangements

The Company does not have made any arrangements in terms of section 230 to 237 of
companies act 2013, and hence there is no deviation to be disclosed.

36. Utilization of Borrowed funds and share premium:-

As on March 31, 2025 there is no unutilized amount in respect of any issue of securities
and long term borrowings from bank and financial institutions. The borrowed funds
have been utilized for the specific purpose for which the funds were raised.

37. Details of crypto currency or virtual currency: -

The company has not traded or invested in crypto currency or virtual currency during
the financial year.

38. The Company has not advanced or loaned to or invested in funds to any other person(s)or
entity (is), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

a) directly or indirectly lend to or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.

39. The Company has not received any fund from any person(s) orentity(is), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or
otherwise) that the Company shall:

a) directly or indirectly lend to or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Funding Party (Ultimate
Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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Mar 31, 2024

(K) Provisions and Contingencies Provisions:

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are discounted to its present value as appropriate.

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 nonoccurrence of one or more uncertain future events not wholly within the control of the company or 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 a reliable estimate of the amount cannot be made, is termed as a contingent liability.

(L) Revenue recognition

Revenue is measured at fair value of the consideration received or receivable. Revenue is recognized when (or as) the Company satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset.

When (or as) a performance obligation is satisfied, the Company recognizes as revenue the amount of the transaction price (excluding estimates of variable consideration) that is allocated to that performance obligation.

The Company applies the five-step approach for recognition of revenue:

i. Identification of contract(s) with customers;

ii. Identification of the separate performance obligations in the contract;

iii. Determination of transaction price;

iii. Allocation of transaction price to the separate performance obligations; and

iv. Recognition of revenue when (or as) each performance obligation is satisfied.

(M) Other income:

Interest: Interest income is calculated on effective interest rate, but recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend: Dividend income is recognised when the right to receive dividend is established.

(N) Finance Cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been incurred for the asset.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

(O) Earnings per share (EPS):

Basic EPS is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted EPS, the net profit or loss for the period

attributable to equity shareholders and the weighted average number of additional equity shares that would have been outstanding are considered assuming the conversion of all dilutive potential equity shares. Earnings considered in ascertaining the EPS is the net profit for the period and any attributable tax thereto for the period.

(P) Fair Value Measurement:

The Company measures financial instruments such as investments in quoted equity shares, certain other investments etc. at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability at the measurement date. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

(Q) Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets:

Initial recognition

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets other than trade receivables and other specific assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the Statement of Profit and Loss.

Subsequent measurement

Financial assets, other than equity instruments, are subsequently measured at

amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of both:

i. The entity’s business model for managing the financial assets and

ii. The contractual cash flow characteristics of the financial asset.

De-recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers rights to receive cash flows from an asset, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Financial Liabilities:

Initial Recognition and Subsequent Measurement

All financial liabilities are recognised initially at fair value and in case of borrowings and payables, net of directly attributable cost. Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments. Changes in the amortized value of liability are recorded as finance cost.

De-recognition

A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

22. The previous year''s figures have been reworked, regrouped, and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current annual financial statements and are to be read in relation to the amounts and other disclosures relating to the current financial year.

23. Credit and Debit balances of unsecured loans, sundry creditors, sundry Debtors, loans and Advances are subject to confirmation and therefore the effect of the same on profit could not be ascertained.

24. Foreign Currency Transactions: -Expenditure in Foreign Currency: - Nil Earnings in Foreign Currency: - Nil

25. Related Parties Disclosure: -

The Disclosures of Transaction with the related parties as defined in the related parties as defined in the Ind-AS are given below:

27. Notes forming part of accounts in relation to Micro and small enterprise

1. Based on information available with the company, on the status of the suppliers being Micro or small enterprises, on which the auditors have relied, the disclosure requirements of Schedule III to the Companies Act,2013 with regard to the payments made/due to Micro and small Enterprises are given below:

The company has initiated the process of obtaining the confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) but has not received the same in totality. The above information is compiled based on the extent of responses received by the company from its suppliers.

28. Title deeds of immovable Property

Tittle deeds of immovable property has not been held in the name of promoter, director, or relative of promoter/ director or employee of promoters / director of the company, hence same are held in the name of the company.

29. Revaluation of Property, Plant and Equipment and Intangible Assets:-

The company has not done revaluation of Property, Plant and Equipment and Intangible Assets.

30. Loans or Advances in the nature of loans to promoters, directors, KMPs and the related

parties:-

No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

31. Capital Work In Progress (CWIP):-

There is no Capital Work In Progress (CWIP) for the current year.

32. Intangible assets under development:-

There is no Intangible assets under development in the current year.

33. Details of Benami Property held:-

The company does not have any benami property, where any proceeding has been initiated or pending against the company for holding any benami property under the Benami Transaction (prohibition) act, 1988 and rules made there under.

34. Borrowings from bank or financial institution on the basis of current assets:-

Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

35. Willful Defaulter:-

The Company has not been declared a willful defaulter by any bank or financial institution or government or government authority

36. Relationship with Struck off Companies:-

The company does not have such transaction with Struck off Companies.

37. Registration of charges or satisfaction with Registrar of Companies:-

The company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies beyond the statutory period.

38. Compliance with approved Scheme(s) of Arrangements

The Company does not have made any arrangements in terms of section 230 to 237 of companies act 2013, and hence there is no deviation to be disclosed.

39. Utilization of Borrowed funds and share premium:-

As on March 31, 2024 there is no unutilized amount in respect of any issue of securities and long term borrowings from bank and financial institutions. The borrowed funds have been utilized for the specific purpose for which the funds were raised.

40. Details of crypto currency or virtual currency:-

The company has not traded or invested in crypto currency or virtual currency during the financial year.

41. The Company has not advanced or loaned to or invested in funds to any other person(s)or entity (is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a) directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

42. The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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Mar 31, 2014

As 1: Related Party Transactions:

The disclosure pertaining to the related party transactions as required by the accounting standard 19(AS-18) by the Institute of Chartered Accountants of India as applicable are indicated below :

List of related parties with whom transactions have been taken place during the year. Transactions with Key Management Personnel - Remuneration To Directors

AS 2 Leases:

The Company has not leased out any of its assets nor has taken any assets on lease therefore comment on the said clause is not necessary.

AS 3 Consolidated Financial Statements:

Since the Company does not have Subsidiary Company. The Accounting Standard As 21 regarding Consolidated Financial Statements is not applicable.

AS 4 Taxes on Income.

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Provision for Taxation:

Provision for Income Tax Rs.45,0000/-(Previous year Rs.75,000/-) is provided for as per the provisions of the Income Tax Act,1961.

Provision for Deferred Taxation:

Deferred tax is recognized on timing difference, being the difference between taxable income and accounting income that originate between in one period and are capable of being reversed in one or more subsequent periods. Deferred tax assets are recognized on unabsorbed depreciation and carry forward losses unless there is virtual uncertainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

AS 5 Impairment of Assets

In view of Accounting Standard required by AS-28 Impairment of Assets issued by ICAI, the Company has reviewed its fixed assets and does not expect any loss as on 31st March 2014 on account of impairment in addition to the provision already made in the books.

AS 6 Contingent Liabilities:

Since there are no contingent liabilities in preparation of accounts, the company has not made any provisions for the same. Demand for Rs. 460,270/- for A.Y. 2007-08 towards Income Tax vide order passed u/s 143(3) against which Rs.150,000/- have been paid and preferred an appeal with relevant authorities and is pending before ITAT. Similarly in respect of AY 2009-10 the Demand for Rs.370,480/- towards Income Tax vide order passed u/s 143(3) against which the appeal with relevant authorities has been preferred & is pending before CIT(Appeals).

As per the information and explanation given to us, there are no amounts remaining unpaid to any Micro, small and Medium enterprise under Micro, Small & Medium Enterprise Act, 2006.

Provision for Bad and doubtful debts:

The management reviews on a periodical basis, the loans or debts outstanding with a view to determining whether the loans and or debts are good, bad, or doubtful. After taking into consideration all the relevant aspects including the financial condition of the borrowers, the management determines whether the loan asset is doubtful or bad, wholly or in part. On the basis of such review and in pursuance of other prudent financial considerations, the Board of Directors determines the extent of provision required to be created in respect of loan assets. No Provision for the same has been considered necessary for the year.

The deductions are settled from time to time and written off accordingly in the books of accounts. The supporting evidence or confirmatory documents are not maintained.

In the opinion of the Board, current assets and 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 and provisions for all known and determined liabilities are adequate and not in the excess of the amount reasonably necessary.

Supporting Evidence of debits & Credits:

Wherever supporting and evidences are not available they are taken as appearing in the books of accounts and certified by the management as exclusively and necessary for the business purposes. The balances of sundry debtors, creditors, loans and advances & other liabilities are subject to confirmation and reconciliation, if any.

The Revised schedule VI to the Companies Act 1956 has become effective from 1st April 2011 for the preparation of financial statements. This has significantly impacted the disclosure & presentation made in the financial statements. Previous years'' figures have been regrouped / reclassified wherever necessary to correspond with the current years'' classification /disclosure

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Mar 31, 2013

Basis of Accounting :

The financial statements are prepared under historical cost convention and comply with applicable accounting standards issued by the Institute of Chartered Accountants of India and relavant provisions of the Companies Act, 1956.

Similarly in respect of AY 2009-10 the Demand for Rs. 370,480/- towards Income Tax vide order passed u/s 143(3) against which entire amount of Rs. 370,480/- have been paid by the Company. However the appeal with relevant authorities has been preferred.

As per the information and explanation given to us, there are no amounts remaining unpaid to any Micro, small and Medium enterprise under Micro, Small & Medium Enterprise Act, 2006. Provision for Bad and doubtful debts:

The management reviews on a periodical basis, the loans or debts outstanding with a view to determining whether the loans and or debts are good, bad, or doubtful. After taking into consideration all the relevant aspects including the financial condition of the borrowers, the management determines whether the loan asset is doubtful or bad, wholly or in part. On the basis of such review and in pursuance of other prudent financial considerations, the Board of Directors determines the extent of provision required to be created in respect of loan assets. No Provision for the same has been considered necessary for the year.

The deductions are settled from time to time and written off accordingly in the books of accounts. The supporting evidence or confirmatory documents are not maintained.

In the opinion of the Board, current assets and 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 and provisions for all known and determined liabilities are adequate and not in the excess of the amount reasonably necessary.

Supporting Evidence of debits & Credits:

Wherever supporting and evidences are not available they are taken as appearing in the books of accounts and certified by the management as exclusively and necessary for the business purposes. The balances of sundry debtors, creditors, loans and advances & other liabilities are subject to confirmation and reconciliation, if any.

The Revised schedule VI to the Companies Act 1956 has become effective from 1st April 2011 for the preparation of financial statements. This has significantly impacted the disclosure & presentation made in the financial statements. Previous yearsRs. figures have been regrouped / reclassified wherever necessary to correspond with the current years'' classification /disclosure

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Mar 31, 2012

Basis of Accounting :

The financial statements are prepared under historical cost convention and comply with applicable accounting standards issued by the Institute of Chartered Accountants of India and relavant provisions of the Companies Act, 1956.

As 1: Related Party Transactions:

The disclosure pertaining to the related party transactions as required by the accounting standard 19(AS-18) by the Institute of Chartered Accountants of India as applicable are indicated below :

List of related parties with whom transactions have been taken place during the year.

Transactions with Key Management Personnel -

Remuneration To Directors :

Shri Chetan Dogra Rs. 300,000/- (Previous year Rs. 240,000/-)

Shri Viren Vora Rs. 180,000/- (Previous year Rs. 144,000/-)

Shri Kirti Savla Rs. 120,000/- (Previous year Rs. Nil)

AS 2 Consolidated Financial Statements:

Since the Company does not have Subsidiary Company. The Accounting Standard As 21 regarding Consolidated Financial Statements is not applicable.

AS 3 Taxes on Income.

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Provision for r Income Tax Rs. 100,0000/-(Previous year Rs. 150,000/-) is provided for as per the provisions of the Income Tax Act, 1961.

Provision for Deferred Taxation:

Deferred tax is recognized on timing difference, being the difference between taxable income and accounting income that originate between in one period and are capable of being reversed in one or more subsequent periods.

Deferred tax assets are recognized on unabsorbed depreciation and carry forward losses unless there is virtual uncertainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

AS 4 Impairment of Assets

In view of Accounting Standard required by AS-28 Impairment of Assets issued by ICAI, the Company has reviewed its fixed assets and does not expect any loss as on 31st March 2012 on account of impairment in addition to the provision already made in the books.

AS 5 Contingent Liabilities:

Since there are no contingent liabilities in preparation of accounts, the company has not made any provisions for the same. Demand for Rs. 460,270/- for A.Y 2007-08 towards Income Tax vide order passed u/s 143(3) is raised by the IT Department against which Rs. 150,000/- have been paid. The provision for the balance amount is not considered necessary as the Appeal with relevant authorities has been preferred.

Similarly in respect of AY 2009-10 the Demand for Rs. 370,480/- towards Income Tax vide order passed u/s 143(3) against which entire amount of Rs. 370,480/- have been paid by the Company. However the appeal with relevant authorities has been preferred.

As per the information and explanation given to us, there are no amounts remaining unpaid to any Micro, small and Medium enterprise under Micro, Small & Medium Enterprise Act, 2006.

Provision for Bad and doubtful debts:

The management reviews on a periodical basis, the loans or debts outstanding with a view to determining whether the loans and or debts are good, bad, or doubtful. After taking into consideration all the relevant aspects including the financial condition of the borrowers, the management determines whether the loan asset is doubtful or bad, wholly or in part. On the basis of such review and in pursuance of other prudent financial considerations, the Board of Directors determines the extent of provision required to be created in respect of loan assets. No Provision for the same has been considered necessary for the year.

The deductions are settled from time to time and written off accordingly in the books of accounts. The supporting evidence or confirmatory documents are not maintained.

In the opinion of the Board, current assets and 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 and provisions for all known and determined liabilities are adequate and not in the excess of the amount reasonably necessary.

Supporting Evidence of debits & Credits:

Wherever supporting and evidences are not available they are taken as appearing in the books of accounts and certified by the management as exclusively and necessary for the business purposes. The balances of sundry debtors, creditors, loans and advances & other liabilities are subject to confirmation and reconciliation, if any.

The Revised schedule VI to the Companies Act 1956 has become effective from 1st April 2011 for the preparation of financial statements. This has significantly impacted the disclosure & presentation made in the financial statements. Previous years'' figures have been regrouped / reclassified wherever necessary to correspond with the current years'' classification /disclosure.

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Mar 31, 2010

Contingencies and events occuring after Balance Sheet Date :

There are not contingencies and events occuring after the Balance Sheet date affecting the finan- cial position of the Company.

Contingent Liability:

Since there are no contingent liabilities in preparation of accounts, the company has not made any provisions for the same. Demand of Rs. 460,270/- for A.Y. 2007-08 towards Income tax vide order passed u/s 143(3) is raised by IT. Department against which Rs. 150,000/- have been paid. The provi- sion for the balance amount is not considered necessary as the Appeal with relevant authorities has been preferred.

Provision for Taxation:

Provision of Income Tax Rs. 4,00,000/- (Previous year Rs. 4,15,000/-) is provided for as pet the provi- sions of Income Tax Act, 1961 and Provision for FBT (Previous year NIL) is not made since no longer required.

Provision for Bad and Doubtful Debts:

The management reviews on a periodical basis, the loans outstanding with a view to determining whether the loans are good, bad or doubtful. After taking into consideration all the relevant aspects including the financial condition of the borrowers, the management determines whether the loan asset is doubthful or bad, wholly or in part. On the basis of such review and in pursuance of other prudent financial cnsiderations, the Board of Directors determines the extent of provision reqired to be created in respect of loan assets. No provision for the same has been considered necessary for the year.

Foreign Currency Transactions :

No Transactions of Foreign Currency during the year (Previous year Rs. NIL).

Capital Commitments

Capital Commitments as at the date of Balance Sheet were Rs. Nil.

Quantitative Details:

No Sales/Purchases affected by the Company during the year.

Auditors Remuneration: Rs. 17,500/- (Previous year Rs. 17,000/-) Directors Remuneration : Rs. 600,000/- (Prevous year Rs. 744,000/-)

Related party transactions

The disclosure pertaining to the related party transactions as required by the accounting standard 18(AS- 18) by the Institute of Chartered Accountants of India as applicable are indicated below:

a) List of related parties with whom transactions have been taken place during the year. Advances Received from Director: Shri Viren Vora Rs.41,59,000/- (Previous year NIL)

b) Transactions with Key Management Personnel - Remuneration of Directors: Shri Chetart Dogra - Rs. 600,000/- (Previous year Rs. 444,000) Shri Viren Vora - Rs. Nil (Previous year Rs. 144,000)

The balances of sundry debtors, creditors, loans and advances & other liabilities are subject to confir- mation and reconciliation, if any. The previous years figures have been regrouped and rearranged wherever necessary.