Notes to Accounts of Simco Trading & Finance Co. Ltd.

Mar 31, 2009

1. In the opinion of the management, the Sundry debtors and Loans & Advances are approximately of the value stated in the books of accounts, if realised in the ordinary course of business and adequate provision has been made in the accounts in respect of all known liabilities.

2. During the year the company has received interest amounting to Rs.0.87 Lacs (Previous: Year - Nil) on account of Income Tax Assessments Orders. The same has been disclosed as Interest Received under the head operational Income.

3. Loans and Advances include Rs. 2.00 Lacs (Previous year - Rs. 2.00 Lacs) lying unrecovered/unadjusted for more than one year. However, no provision towards doubtful/non-recovery of the same has been considered by the Company in the accounts since the management is hopeful of their full recovery.

4. No Provision has been considered in the accounts towards diminution in the value of investments as on 31st March 2009 since in the opinion of the Management the Investments are of Long Term nature and the diminution is temporary. Had the provision been made the loss for the period would have been higher by Rs.76.16 Lacs.

5. As there are no employees and hence no provision towards gratuity and leave encashment has been considered in the accounts as per the recommendations of Accounting Standard 15 - Retirement Benefits issued by the Institute of chartered . Accountants of India.

6. The Company deals in only one segment of Business and consequently, the Accounting Standard -17; "Segment Reporting" is not applicable to the Company during the year under review.

7. a) Provision for current tax has been made as per the Income Tax Act, 1961.

8. The Micro, Small and Medium Enterprises Development Act 2006 has come into force from October 2nd 2006 which has repealed the provisions of Interest on delayed payment to Small Scale and Ancillary Industrial Undertakings Act, 1993. The Company is in communication with its suppliers to ascertain the applicability of this Act. The same has been relied upon by the Auditors.

9. Previous year figures have been rearranged /regrouped wherever considered necessary.

10. Statement for Information pursuant to part IV of Schedule VI to the Companies Act, 1956.