Notes to Accounts of Aravali Securities & Finance Ltd.

Mar 31, 2015

1. Contingent Liabilities

Sales tax liabilities pending company''s appeals/rectifications Rs. 160969 (Rs. 160969)s

2. There are no shares issued for consideration other than cash in last 5 years. However 1494500 Equity Share out of issued, subscribed and paid up share capital were alloted as fully paid-up Bonus Shares by capitalisation of Reserves and Surplus in Profit and Loss Account in earlier years.

3. 10990600 Equity Shares out of issued subscribed and paid up share capital were alloted on conversion of convertible debentures in earlier years.

3. The number of issued, subscribed and fully paid up shares remained unchanged during the year as there were no buyback or issue of share capital.

4. The Company has only one class of Equity Shares having a par value of Rs 10.Each holder of Equity Shares is entitled to one vote per share.There are no restricitions attached to any Equity Shares. The Company declares and pays dividends, if any , in Indian Rupees.The dividend proposed by the Board of Directors, if any, is subject to the approval of the share holders in the ensuing Annual General Meeting.In the event of liquidation of the Company, the holders 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 respective shareholders.

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Mar 31, 2014

1.1 2272 12.5% Fully Convertible Debentures of Rs.125 each alloted on 25th January, 1993 have not been converted into fully paid equity shares since allotment money has not been received. Additions to subscribed and paid up share capital will be made as and when allotment money is received.

1.2 Accounts relating to allotment money in arrears of Fully Convertible Debentures are not reconciled.

1.3 Related Party Disclosures

(A) List of Related Parties and Relationships, where control exists and other related parties with whom transaction have taken place during the year.

Name of the Party Relation

I. The Sirpur Paper Mills Limited Aravali Securities & Finance Limited is a Promoter

II. Boutique Hotels India Private Limited Associate Carma Arts & Crafts Private Limited Associate Devi Developers Private Limited Associate Devi Overseas Private Limited Associate

III. Key Management Personnel

Mr. Sushil Kumar Chief Financial Officer

Note : Segment Revenue,Segment Results,Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amount allocated on a reasonable basis. The expenses / incomes which are not directly relatable to the business segment, are shown as unallocable expenditure and unallocable income. Assets and Liabilities that can not be allocated between the segments are shown as unallocated assets and liabilities respectively.

1.4 Contingent Liabilities

Sales tax liabilities pending company''s

appeals/rectifications Rs. 160969 (Rs. 337538)

b) There are no shares issued for consideration other than cash in last 5 years. However 1494500 Equity Share out of issued, subscribed and paid up share capital were alloted as fully paid-up Bonus Shares by capitalisation of Reserves and Surplus in Profit and Loss Account in earlier years.

c) 10990600 Equity Shares out of issued subscribed and paid up share capital were alloted on conversion of convertible debentures in earlier years.

d) The number of issued, subscribed and fully paid up shares remained unchanged during the year as there were no buyback or issue of share capital.

e) The Company has only one class of Equity Shares having a par value of Rs 10.Each holder of Equity Shares is entitled to one vote per share. There are no restricitions attached to any Equity Shares. The Company declares and pays dividends, if any , in Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the share holders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders 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 respective shareholders.

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Mar 31, 2013

1.1 2272 12.5% Fully Convertible Debentures of Rs.125 each alloted on 25th January, 1993 have not been converted into fully paid equity shares since allotment money has not been received. Additions to subscribed and paid up share capital will be made as and when allotment money is received.

1.2 Accounts relating to allotment money in arrears of Fully Convertible Debentures are not reconciled.

1.3 Disclosures as required under Accounting Standard (AS) 15 (REVISED)

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Mar 31, 2012

1.1 2272 12.5% fully convertible debentures of Rs.125 each alloted on 25th January, 1993 have not been converted into fully paid equity shares since allotment money has not been received. Additions to subscribed and paid up share capital will be made as and when allotment money is received.

1.2 Accounts relating to allotment money in arrears of Fully Convertible Debentures are not reconciled.

1.3 Disclosures as required under Accounting Standard (AS) 15 (REVISED)

Note : Segment Revenue,Segment Results,Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amount allocated on a reasonable basis.The expenses / incomes which are not directly relatable to the business segment, are shown as unallocable expenditure and unallocable income.Assets and Liabilities that can not be allocated between the segments are shown as unallocated assets and liabilities respectively.

1.4 Contingent Liabilities

Sales tax liabilities pending company''s appeals/rectifications Rs. 337538 (Rs. 337538)

* Received as bonus shares

** Represent Sale of fraction Share entilment upon allotment of bonus shares.

1.5 Comparative figures for the previous year have been regrouped, recast and rearranged wherever necessary, to correspond with the current year''s classification as per revised Schedule VI which has become effective from 1.4.2011 for the preparation of financial statements.

b) There are no shares issued for consideration other than cash in last 5 years. However 1494500 Equity Share out of issued, subscribed and paid up share capital were alloted as fully paid-up Bonus Shares by capitalisation of Reserves and Surplus in Profit and Loss Account in earlier years.

c) 10990600 Equity Shares out of issued subscribed and paid up share capital were alloted on conversion of convertible debentures in earlier years.

d) The number of issued, subscribed and fully paidup shares remained unchanged during the year as there were no buyback or issue of share capital.

e) The Company has only one class of Equity Shares having a par value of Rs 10.Each holder of Equity Shares is entitled to one vote per share. There are no restrictions attached to any Equity Shares. The Company declares and pays dividends, if any , in Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the share holders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders 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 respective shareholders.

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Mar 31, 2010

1. 2272 12.5% fully convertible debentures of Rs.125 each alloted on 25th January, 1993 have not been converted into fully paid equity shares since allotment money has not been received. Additions to subscribed and paid up share capital will be made as and when allotment money is received.

2. Accounts relating to allotment money in arrears of Fully Convertible Debentures are not reconciled.

3. Related Party Disclosures

4. Basic and diluted earning per equity share

5. Segment Reporting

Note .Segment Revenue.Segment Results,Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amount allocated on a reasonable basis. The expenses/incomes which are not directly relatable to the business segment, are shown as unallocable expenditure and unallocable income. Assets and Liabilities that can not be allocated between the segments are shown as unallocated assets and liabilities respectively.

6. Disclosure of details as required by Para 9BB of Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998

7. Contingent Liabilities

Sales tax liabilities pending companys appeals/rectifications Rs. 337538 (Rs. 337538)

8. Quantitative Details

9. Additional Information pursuant to Part IV to Schedule VI of the Companies Act, 1956.

10. Comparative figures for the previous year have been regrouped, recast and rearranged wherever necessary and figures in brackets represent previous year figures.