Notes to Accounts of Milestone Global Ltd.

Mar 31, 2014

1. The Company has not received the required information from suppliers regarding their status under the Micro, Small, Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made.

2. Balances of Trade Receivable , Loans and Advances and Creditors, are subject to confirmation.

3. Company has an investment of Rs.71,47,980/- in the share capital of Milestone Global (U.K.) Limited U.K a wholly owned subsidiary Company. Milestone Global (U.K.) Limited U.K. has accumulated losses GBP 70832 equivalent to Rs. 7081734/-as on 31.03.2014 (Previous Year GBP 66538 equivalent to Rs. 54,87,420/-). The Management is, however, of the opinion that with strategic plan on hand and long term involvement in the subsidiary company, no provision is necessary in this account.

4. Disclosure in terms of Accoun ting Standard- 15 issued by the Institute of Chartered Accountants of India has not been given as required details have not been provided by Life Insurance Corporation of India.

5. Acturial; valuation of leave encashment has not been carried out as company has paid leave earned up to 31-03- 2014.

6. CONTINGENT LIABILITIES:

As at 31st As at 31st March, 2014 March, 2013 Rs. Rs.

a) In respect of Claims (including claims made by Employees) not Amount Amount acknowledged as debts. Indeterminate Indeterminate

7. Previous year figures have been regrouped and recasted wherever necessary to conform to the classification for the Year.

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Mar 31, 2013

1. Balances of Trade Receivable, Loans and Advances and Creditors, are subject to confirmation.

2. Related Party Disclosures:

a) Related Party disclosures as required under Accounting Standard 18 - "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are given below:

Subsidiary Companies

Milestone Global [U.K.] Limited - U.K.

Milestone Global [U.S.] INC - U.S.A.

Milestone Global (NZ) Limited - New Zealand

Enterprise over which key Management personal have significant influence

ANA Hospitality Pvt. Ltd. - India

Key Management Personnel and their relative:

Mr. Fiaz Ahmed - Executive Director

Mrs. Alka Agarwal - Relative

3. Company has an investment of Rs.71,47,980/- in the share capital of Milestone Global (U.K.] Limited U.K a wholly owned subsidiary Company. Milestone Global (U.K.] Limited U.K. has accumulated losses GBP 66538 equivalent to Rs. 54,87,420/-as on 31.03.2013 (Previous Year GBP 59528 equivalent to Rs. 48,56,897/. The Management is, however, of the opinion that with strategic plan on hand and long term involvement in the subsidiary company, no provision is necessary in this account.

4. Disclosure in terms of Accounting Standard- 15 issued by the Institute of Chartered Accountants of India has not been given as required details have not been provided by Life Insurance Corporation of India.

5. Acturial; valuation of leave encashment has not been carried out as company has paid leave earned up to 31-03- 2013.

6. Previous year figures have been regrouped and recasted wherever necessary to conform to the classification for the Year.

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Mar 31, 2012

1. Company has ari investment of Rs.71,47,980/- in the share capital of Milestone Global (U.K.) Limited U.K a wholly owned subsidiary Company. Milestone Global (U.K.) Limited U.K. has accumulated losses GBP 65,280 equivalent to Rs 53,26,185/-as on 31.03.2012 (Previous Year GBP 47„355 equivalent to Rs 33,94,406/ The Management is, however, of the opinion that with strategic plan on hand and long term involvement in the subsidiary company, no provision is necessary in this account.

2. CONTINGENT LIABILITIES:

As at 31st As at 31st March, 2012 March, 2011 Rs. Rs.

a) In respect of Claims (including claims made by Amount Amount Employees) not acknowledged as debts. Indeterminate Indeterminate

3. The Accounts were approved by the Board of Directors in its meeting held on 29.05.12. Board on observation of Auditors for provision for Closure compensation payable to workers, the same have been amended and approved by the Board of Directors in its meeting held on 31st August 2012.

4. Previous year figures have been regrouped and recasted wherever necessary to conform to the classification for the Year.

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Mar 31, 2010

1. CONTINGENT LIABILITIES:

As at 31st As at 31st March, 2010 March, 2009

Rs. Rs.

a) In respect of Claims (including claims made by Amount Amount Employees) not acknowledged as debts. Indeterminate Indeterminate

b) In respect of demand of Income Tax including Interest thereon which is not admitted as liabilities by the Company. Nil 39,63,981

2. The Company has not received the required information from suppliers regarding their status under the Micro, Small ,Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made.

3. i). Term Loan from Bank Secured by hypothecation of Fixed Assets.

ii). Export Packing Credit Secured by hypothecation of inventories and export receivable.

iii). Vehicle Loans Secured by hypothecation of Vehicles.

4. Related Party Disclosures:

a) Related Party disclosures as required under Accounting Standard 18 "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are given below:

Subsidiary Companies

Milestone Global (U.K.) Limited U.K.

Milestone Global (NZ) Limited New Zealand

ANA Hospitality Pvt. Limited

Key Management Personnel and their relative :

Mr. Sunil Agarwal - Managing Director

Mr. Fiaz Ahmed - Executive Director

Mrs. Alka Agarwa - Relative

Figures in bracket are in respect of Previous year.

Note: Related Parties relationship is as identified by the Company and relied upon by the auditors.

5. Company has an investment of Rs.71,47,980/ in the Share Capital in Milestone Global (U.K.) Limited U.K. a wholly owned subsidiary Company. Milestone Global (U.K.) Limited U.K. has accumulated losses GBP 12906 equivalent to Rs 877608/ as on 31st March, 2010 (Previous Year GBP 22411 equivalent to Rsl622556/ ). The Management is, however, of the opinion that with strategic plan on hand and long term involvement in the subsidiary company, no provision is necessary in this account.

6. Segment Reporting :

The Company has only one business segment "Stone" as primarily segment. The secondary segment is geographical which is given as under:

7. Previous years figures have been recasted or regrouped wherever necessary for the purpose of comparison.

8. Schedule 1 to 10 and accounting policies form integral part of the accounts and have been duly authenticated.

9. Information pursuant to the provisions of Paragraphs 3, 4C & 4D of Part II of Schedule VI to the Companies Act, 1956

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Mar 31, 2009

1. CONTINGENT LIABILITIES:

As at 31st As at 31st March, 2009 March, 2008

Rs. Rs.

a) In respect of Claims (including claims made by Amount Amount Employees) not acknowledged as debts. Indeterminate Indeterminate

b) In respect of demand of Income Tax including Interest thereon which is not admitted as liabilities by the Company. 39,63,981 39,63,981

2. Balances of Sundry Debtors, Loans and Advances and Creditors, are subject to confirmation.

3. The Company has not received the required information from suppliers regarding their status under the Micro, Small ,Medium Enterprises Development Act, 2006. And Small scale Industrial under taking . Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made.

4. i). Term Loan from Bank Secured by hypothecation of Fixed Assets.

ii). Export Packing Credit

Secured by hypothecation of inventories and export receivable.

iii). Vehicle Loans

Secured by hypothecation of Vehicles.

5. Related Party Disclosures:

a) Related Party disclosures as required under Accounting Standard 18 - "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are given below: Subsidiary Company: Milestone Global (U.K.) Limited U.K. Milestone Global (NZ) Limited New Zealand ANA Hospitality Pvt. Limited Key Management Personnel and their relative :

Mr. Sunil Agarwal - Managing Director

Mr. Fiaz Ahmed - Executive Director

Mrs. Alka Agarwal - Relative

Figures in bracket are in respect of Previous year.

Note: Related Parties relationship is as identified by the Company and relied upon by the auditors.

6. Company has an investment of Rs.71,47,980/- in the Share Capital in Milestone Global (U.K.) Limited U.K. a wholly owned subsidiary Company. Milestone, Global (U.K.) Limited U.K. has accumulated losses GBP 22411 equivalent to Rs 1622556/- as on 31st March, 2009 (Previous Year GBP 27305 equivalent to Rs.2206244/-). The Management is, however, xof the opinion that with strategic plan on hand ari$ long term involvement in the subsidiary company, no provision is necessary in this account.

7. Segment Reporting:

The Company has only one business segment "Stone" as primarily segment. The secondary segment is geographical which is given as under

8. Previous years figures have been recasted or regrouped wherever necessary for the purpose of comparison.