Notes to Accounts of Mahasagar Travels Ltd.

Mar 31, 2014

1. Contingent Liability not provided for:

Commitment. Contingent liabiltv & Other Guarantee:

a) Commitment: Nil Nil

b) Contingent liabilities:

(I) Income Tax matter under Appeal* 6,508,160.00 6,508,160.00

(II) Service Tax Demand# 18,871,086.00 0.00

C) Other Gurantee: Nil Nil

* Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made

# In respect of Service Demand( inclusive of penalty ), on the basis of advice received, the management is of the view that the amount is likely to be deleted or get reduced substantially.

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Mar 31, 2013

1 Figures have been regrouped in order to comply with the requirment of Revised Schedule VI.

2 In respect of unquoted long term investment made by the Company, Company has made Investment in the shares at face value. In the opinion of Board of Directors it will be realized in the ordinary course of business and no provision is required.

3 No any Loans & Advances made u/s. 301.

4 In the opinion of the Board of Directors, the current assets, loans and advances have a value on realisation, atleast equal to the amount stated in the Balance Sheet. In the opinion of Board of Directors, current Assets, Loans and Advances are considered good and recoverable in cash or in kind and will be realised in the ordinary course of business and board confirms provisions for all known liabilities are made adequately.

5 Claims made by the company with general insurance company arising out of accident of bus at different times, are pending for settlement by the insurance company. Amount incurred ( Net of insurance claims ) on accidents of bus are charged to Profit & Loss Account.

6 Based on the information available with the management, the Company does not owe any sum to a small-scale industrial undertaking as defined in clause (i) of section 3 of the Industries (Development and Regulation Act), 1951.

7 Closing Stock of Tyres & Other Materials are valued at cost basis. Stock of Petroleum Business are valued at Cost Basis.

8 No any Foreign Exchange has been earned nor spent during the year. No any Foreign Expenditure has been made.

9 The company had acquired assets (Referred in Schedule " 4 " ) Majewadi Gate work – shop through execution of Memorandum of Understanding and paid part of the payment towards the acquisition of such assets.

10 The Segment Report Of Mahasagar Travels Ltd. And its division of Petroleum has been prepared in accordance with Accounting Standard 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India.

11 Differed Taxation

The management, as a matter of prudence, has not recognized net deferred tax assets in respect of unabsorbed/carried forward balances of period up to 31st March, 2013.

12 (i) Parties where control exist NIL

(ii) Other parties with whom the company has entered into transaction in normal course of Business during the year.

(1) Associates (i) Mahashakti Tours & Travels Pvt Ltd (ii) New shakti travels (iii) Noble Creators

(2) Key Management Personal: Bhagchand G. Sukhvani - Managing Director

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Mar 31, 2012

1 Figures have been regrouped in order to comply with the requirment of Revised Schedule VI.

2 In respect of unquoted long term investment made by the Company, Company has made Investment in the shares at face value. In the opinion of Board of Directors it will be realized in the ordinary course of business and no provision is required.

3 No any Loans & Advances made u/s. 301.

4 In the opinion of the Board of Directors, the current assets, loans and advances have a value on realisation, atleast equal to the amount stated in the Balance Sheet. In the opinion of Board of Directors, current Assets, Loans and Advances are considered good and recoverable in cash or in kind and will be realised in the ordinary course of business and board confirms provisions for all known liabilities are made adequately.

5 Claims made by the company with general insurance company arising out of accident of bus at different times, are pending for settlement by the insurance company. Amount incurred ( Net of insurance claims ) on accidents of bus are charged to Profit & Loss Account.

6 Based on the information available with the management, the Company does not owe any sum to a small-scale industrial undertaking as defined in clause (i) of section 3 of the Industries (Development and Regulation Act), 1951.

7 Closing Stock of Tyres & Other Materials are valued at cost basis. Stock of Petroleum Business are valued at Cost Basis.

8 No any Foreign Exchange has been earned nor spent during the year. No any Foreign Expenditure has been made.

9 The company had acquired assets (Referred in Schedule "4" ) Majewadi Gate work – shop through execution of Memorandum of Understanding and paid part of the payment towards the acquisition of such assets.

10 The Segment Report Of Mahasagar Travels Ltd. And its division of Petroleum has been prepared in accordance with Accounting Standard 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India.

11 Differed Taxation

The management, as a matter of prudence, has not recognized net deferred tax assets in respect of unabsorbed/carried forward balances of period up to 31st March, 2012.

12 (i) Parties where control exist

NIL

(ii) Other parties with whom the company has entered into transaction in normal course of Business during the year.

(1) Associates

(i) Mahashakti Tours & Travels Pvt Ltd

(ii) New shakti travels

(iii) Noble Creators

(2) Key Management Personal:

Bhagchand G. Sukhvani - Managing Director

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Mar 31, 2011

1 Figures have been regrouped / Rearrange wherever required.

2 In respect of unquoted on term investment made by the Company, Company has made Investment in the shares at face value. In we opinion of Board of Directors it will be realized in the ordinary course of business and no provision is required.

3 No any Loans & Advances made u/s. 301.

4 In the opinion of the Board of Directors, the current assets, loans and advances have a value on realization, at least equal to the amount stated in the Balance Sheet. In the opinion of Board of Directors, current Assets, Loans and Advances are considered good and recoverable in cash or in kind and will be realized in the ordinary course of business and board confirms provisions for all known liabilities are made adequately.

5 Claims made by the company with general insurance company arising out of accident of bus at different times, are pending for settlement by the insurance company. Amount incurred ( Net of insurance claims ) on accidents of bus are charged to Profit & Loss Account.

6 Based on the information available with the management, the Company does not owe any sum to a small-scale industrial undertaking as defined in clause (i) of section 3 of the Industries (Development and Regulation Act), 1951.

7 Closing Stock of Tyros & Other Materials are valued at cost basis. Stock of Petroleum Business are valued at Cost Basis.

8 No any Foreign Exchange has been earned nor spent during the year. No any Foreign Expenditure has been made.

9 The company had acquired assets (Referred in Schedule “ 4 ”) Majewadi Gate work - shop through execution of Memorandum of Understanding and paid part of the payment towards the acquisition of such assets. The management of the company informs us that final sale deed in favor of the company will be executed in due course.

10 Differed Taxation

The management as a matter of prudence, has not recognized net deferred tax assets in respect of unabsorbed / carried forward balances of period up to 31st March, 2011.

List of Related Parties transaction :

(i) Parties where control exist NIL

(ii) Other parties with whom the company has entered into transaction in normal course of Business during the year.

(1) Associates

(i) Mahashakti Tours & Traveis Pvt Ltd

(ii) New shakti Travels

(2) Key Management Personal:

Bhagchand G. Sukhvani - Managing Director

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Mar 31, 2010

1 Figures have been regrouped / Rearrange wherever required.

2 In respect of unquoted long term investment made by the Company, Company has made Investment in the shares at face value. In the opinion of Board of Directors it will be realized in the ordinary course of business and no provision is required.

3 No any Loans & Advances made u/s. 301.

4 In the opinion of the Board of Directors, the current assets, loans and advances have a value on realisation, at least equal to the amount stated in the Balance Sheet. In the opinion of Board of Directors, current Assets, Loans and Advances are considered good and recoverable in cash or in kind and will be realised in the ordinary course of business and board confirms provisions for all known liabilities are made adequately

5 Claims made by the company with general insurance company arising out of accident of bus at different times, are pending for settlement by the insurance company. Amount incurred ( Net of insurance claims ) on accidents of bus are charged to Profit & Loss Account.

6 Based on the information available with the management, the Company does not owe any sum to a small-scale industrial undertaking as defined in clause (i) of section 3 of the Industries (Development and Regulation Act), 1951.

7 Closing Stock of Tyres & Other Materials are valued at cost basis. Stock of Petroleum Business are valued at Cost Basis.

8 No any Foreign Exchange has been earned nor spent during the year. No any Foreign Expenditure has been made.

9 The company had acquired assets (Referred in Schedule " 4 ") Majewadi Gate work - shop through execution of Memorandum of Understanding and paid part of the payment towards the acquisition of such assets. The management of the company informs us that final sale deed in favor of the company will be executed in due course.

10 The Segment Report Of Mahasagar Travels Ltd. And its division of Petroleum has been prepared in accordance with Accounting Standard 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India.

11 Differed Taxation

In view of the continuing losses, till last year the management, as a matter of prudence, has not recognized net deferred tax assets in respect of unabsorbed/carried forward balances of period up to 31st March, 2010 and for the loss as per Income tax act for the current year.

List of Related Parties transaction :

(i) Parties where control exist - NIL

(ii) Other parties with whom the company has entered into transaction in normal course of Business during the year.

(1) Associates

(i) Mahashakti Tours & Travels Pvt Ltd

(ii) New shakti Travels

(2) Key Management Personal:

Bhagchand G. Sukhvani - Managing Director