Notes to Accounts of Arnav Corporation Ltd.

Mar 31, 2015

1) Disclosure pursuant to Note No. 6(W) of Part I of Schedule III to the Companies Act, 2013

In the opinion of the Board, all assets other than fixed assets and noncurrent investments have a realisable value in the ordinary course of business which is not different from the amount at which it is stated.

2) During the year the Company created Deferred Tax Assets of Rs. 85,561/- 11) (A)The Assessing Officer of the Income Tax Department had raised the demand of Rs. 82, 90,782/- against the Assessment Year 2008-09. However, the Company has filed an appeal to Commissioner of Income-tax (Appeals). In spite of the said appeal, the company has paid Rs. 22, 49,556/- to the Income-tax department which is shown in the Balance Sheet as advances.

(B) However, the company has not paid Income tax liability of Rs. 2, 58,680/- for the Assessment year 2013-14 excluding interest u/s. 234A, 234B and 234C of the Income tax Act, 1961.

3) Pursuant to compliance of Accounting Standard (AS) 18 'Related Party Disclosures', provisions of section 189 of the Companies Act, 2013, as per Point (iii)(a) of the Annexure to the Companies (Auditor's Report) Order, 2015, as per the information provided to us,

M/s. Arnav Corporation Limited has not entered into any transaction with related parties during the year.

4) As the Management has given the representation that the Company has given advances to its suppliers. However, these advances had been outstanding for more than one year and no material is supplied by the following parties. As we are informed that there is no one has mentioned below is related party. The Balances are subject to confirmation and company is in process to obtain balance confirmation till the completion of audit.

5) The company during the year has done only sale and purchases of the Fabrics. There is no other business that is why no segment reporting is required.

6) Figures in brackets represent the figures of the previous year and have been regrouped / rearranged wherever necessary.

7) There is no practice of the Company to obtain confirmation of the sundry debtors and sundry creditors. Hence, the said accounts are subject to confirmation and reconciliations, if any.

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Mar 31, 2014

1) Disclosure pursuant to Note no. 6(T) of Part I of Schedule VI to the Companies Act, 1956

Contingent liabilities and commitments (to the extent not As at As at provided for) 31/03/ 2014 31/03/2013 Rs. Rs.

i) Contingent Liabilities

a)Claims against the company not acknowledged as a debt - -

b)Guarantees - -

c)Other money for which the company is contingently liable - -

Total (i)

ii) Commitments

a)Estimated amount of contracts remaining to be executed on capital - - account not provided for

b)Uncalled liability on shares and other investments partly paid - -

c)Other commitments

Total (ii) - -

- -

Total (i) (ii) - -

2) Disclosure pursuant to Note no. 6(W) of Part I of Schedule VI to the Companies Act, 1956

In the opinion of the Board, all assets other than fixed assets and non current investments , have a realisable value in the ordinary course of business which is not different from the amount at which it is stated.

3) During the year the Company created Deferred Tax Assets of Rs. 15,819/-.

4)(A)The Assessing Officer of the Income Tax Department had raised the demand of Rs. 82,90,782/- against the Assessment Year 2008-09. However, the Company has filed an appeal to Commissioner of Income-tax (Appeals). In spite of the said appeal, the company has paid Rs. 22,49,556/- to the Income-tax department which is shown in the Balance Sheet as advances.

(B)However, the company has not paid Income tax liability of Rs. 2,58,680/- for the Assessment year 2013-14 excluding interest u/s. 234A, 234B and 234C of the Income tax Act, 1961.

5)Pursuant to compliance of Accounting Standard (AS) 18 ''Related Party Disclosures'', provisions of section 301 of the Companies Act, 1956, as per Point (iii)(a) of the Annexure to the Companies (Auditor''s Report) Order, 2003 , the relevant information is provided hereunder:

6) As the Management has given the representation that the Company has given advances to its suppliers. However, balances are subject to confirmation and company is in process to obtain balance confirmation till the completion of audit.

7) The company during the year has done only sale and purchases of the Fabrics. There is no other business that is why no segment reporting is required.

8) Figures in brackets represent the figures of the previous year and have been regrouped / rearranged wherever necessary.

9) There is no practice of the Company to obtain confirmation of the sundry debtors and sundry creditors. Hence, the said accounts are subject to confirmation and reconciliations, if any.

10) Pursuant to compliance of Accounting Standard (AS) 20 "Earnings per Share", the relevant information is provided here below :

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Mar 31, 2013

1) Income Tax :- (A) Income taxes are accounted for in accordance with Accounting Standard 22 on

Accounting for taxes on Income. Taxes comprise both current and deferred tax.

(B) Current tax is measured at amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

(C) The tax effect of the timing difference that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a Deferred tax assets or liability.

(D) They are measured using the substantively enacted rates and tax regulations.

2) During the year the Company created Deferred Tax Assets of Rs. 8,58,786/-.

3) The Assessing Officer had raised the demand of Rs. 82,90,782/- against the Assessment Year 2008-09. However, the Company has filed an appeal to Commissioner of Income-tax (Appeals). In spite of the said appeal, the company has paid Rs. 22,49,556/- to the Income-tax department which is shown in the Balance Sheet as advances.

4) Pursuant to compliance of Accounting Standard (AS) 18 ''Related Party Disclosures'', provisions of section 301 of the Companies Act, 1956, as per Point (iii)(a) of the Annexure to the Companies (Auditor''s Report) Order, 2003 and also the loans granted by the Company which is covered under section 372A of the Companies Act, 1956, the relevant information is provided hereunder:

5) The company during the year has done only sale and purchases of the Panchang Books. There is no other business, that is why no segment reporting is required.

6) Figures in brackets represent the figures of the previous year and have been regrouped / rearranged wherever necessary.

7) There is no practice of the Company to obtain confirmation of the sundry debtors and sundry creditors. Hence, the said accounts are subject to confirmation and reconciliations, if any.

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Mar 31, 2012

1) Disclosure pursuant to Note no. 6(T) of Part I of Schedule VI to the Companies Act, 1956

Contingent liabilities and commitments (to the As at As at extent not provided for) 31/03/2012 31/03/2011

i) Contingent Liabilities

a) Claims against the company not acknowledged as debt - -

b) Guarantees - -

c) Other money for which the company is - - contingently liable

Total......(i) - -

ii) Commitments

a) Estimated amount of contracts - - remaining to be executed on capital account and not provided for

b) Uncalled liability on shares and - - other investments partly paid

c) Other commitments - -

Total......(ii) - -

TOTAL . (i) (ii) - -



2) Disclosure pursuant to Note no. 6(W) of Part I of Schedule VI to the Companies Act, 1956

In the opinion of the Board, all assets other than fixed assets and non current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated.

3) During the year the Company created Deferred Tax Assets of ' 35,31,008/-.

4) The Assessing Officer had raised the demand of " 82,90,782/- against the Assessment Year 2008-09. However, the Company has filed an appeal to Commissioner of Income-tax (Appeals). In spite of the said appeal, the company has paid " 22,49,556/- to the Income-tax department which is shown in the Balance Sheet as advances.

5) Pursuant to compliance of Accounting Standard (AS) 18 'Related Party Disclosures', provisions of section 301 of the Companies Act, 1956, as per Point (iii)(a) of the Annexure to the Companies (Auditor's Report) Order, 2003 and also the loans granted by the Company which is covered under section 372A of the Companies Act, 1956, the relevant information is provided hereunder:

6) The company during the year has done only sale and purchases of the Educational Books. There is no other business, that is why no segment reporting is required.

7) Figures in brackets represent the figures of the previous year and have been regrouped / rearranged wherever necessary.

8) There is no practice of the Company to obtain confirmation of the sundry debtors and sundry creditors. Hence, the said accounts are subject to confirmation and reconciliations, if any.

9) Pursuant to compliance of Accounting Standard (AS) 20 "Earnings per Share", the relevant information is provided here below :

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Mar 31, 2010

1 Income Tax :

Income taxes are accounted for in accordance with Accounting Standard 22 on Accounting for Taxes on Income. Taxes comprise both current and deferred tax.

Current tax is measured at amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax assets or liability.

They are measured using the substantively enacted rates and tax regulations.

2 During the year the Company created deferred tax liability of Rs. 11,49,290/-.

3 In the opinion of the Board of Directors, the Current assets, loans and advances have a value which on realisation in the ordinary course of Business would be at least equal to the amount stated in the Balance Sheet.

4 There is no practice of the Company to obtain confirmation of the sundry debtors and sundry creditors. Hence, the said accounts are subject to confirmation and reconciliations, if any.

5 Pursuant to compliance of Accounting Standard (AS) 18 "Related Party Disclosures", provisions of section 301 of the Companies Act, 1956, as per Point (iii)(a) of the Annexure to the Companies (Auditors Report) Order, 2003, the loans taken or granted by the Company which is-covered under section 370(1-B) of the Companies Act, 1956 and also Clause 32 of the Listing Agreement, on disclosure of Loans/Advances in the nature of loans, the relevant information is provided hereunder. In our opinion, the Company has given loans and advances in contravention of sec. 295 of the Companies Act, 1956.

A) Related Parties where control exists:-

Sr. Name of Party Relationship No.

1 D. J. Chaturvedi Managing Director

2 Shailesh Chatutvedi Director

6 The web designing assets do not have any useful life left. Hence, the same are completely written off in the current financial year 2009-10.

7 As per the information given by the Company, there are no suppliers who are covered under the Micro, Small and Medium Enterprises Development Act, 2006.

8 The Company has not provided any liability for Gratuity and other dues of workmen.

9 Figures in brackets represent the figure of the previous year and have been regrouped/ rearranged whenever necessary.