Notes to Accounts of Sanghi Corporate Services Ltd.

Mar 31, 2015

1) No provision has been made in respect of income tax liability of Rs.36,047,377/-determined on account of Block assessment up to 18th June, 1998 pursuant to search operation carried out by the Income Tax Authorities as the same has been disputed by the Company before the higher authorities.

The Income Tax authorities conducted search and seizure operations at the premises of the Company on 18th June 1998 and the Management confirmed that certain documents were furnished to the Income Tax Department. We were further informed that certain person without Management's knowledge and proper authority opened and operated upon certain Bank Accounts in the name of the Company under forged signatures and unauthorised resolutions to cover up certain unauthorised and illegal business transactions through false and forged invoices. The Company has taken further action by filing complaints with the concerned Authorities. Pending complaint of enquiries and investigation, the extent of impact on the Company of the aforesaid fraudulent transactions could not be ascertained in absolute terms.

The Books of account, records and other relevant documents/papers pertaining to the aforesaid transactions routed through the said unauthorised bank accounts have not been produced to us and hence not examined by us.

However the Income Tax authorities have completed the Block Assessment up to the period of search and ascertained the liabilities to the extent of Rs. 36,047,377/- which has been disputed by the Company before the higher authorities and the same has not been provided in the accounts.

2) Long Term Trade receivables exceeding six months include Rs.5,934,745/- (after written off of Rs. 813,187/- last year) due for recovery for a period of more than thirty six months and above and have become time barred under Limitations Act, 1963 for recovery thereof. No action, legal or otherwise, has been initiated by the Management. However, in the opinion of the Board all the debtors are good for recovery.

3) The Company did not have a full time Company Secretary during the year as required pursuant to the provisions of Section 203 of the Companies Act, 2013.

4) The balance of Trade payable under Other Long term liabilities accounts appearing in Liabilities remain unrecognized and are subject to such rectification as deem fit on reconciliation/confirmation.

5) During the year under review the Company has carried out business transaction in shares and F & O derivative trading only, and hence there is no separate business segment reporting as per Accounting Standard 17 issued by the Institute of Chartered Accounts of India.

6) Related parties disclosure

(A) 1. Other related parties where control exists: NIL

2. Key management personnel and their relatives:

Shri A.K Sanghi-Director

Smt. Poonam Sanghi-Director

Shri M. K. Saboo-Independent Director

Shri K. Udaykumar- Independent Director

Note: Related parties' relationships as identified by the Company and relied upon by the Auditors.

7) Previous year's figures have been rearranged/ regrouped wherever necessary.

8) Based on the information / documents available with the Company, sundry creditors includes total outstanding due to Micro & Small Enterprises of which:

a. Amounts overdue on accounts of principal and / or Interest: NIL

b. Name of the parties to whom the Company owe any sum outstanding for more than 30 days but not overdue: NIL

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Mar 31, 2013

1) No provision has been made in respect of income tax liability of Rs.3,60,47,377/- determined on account of Block assessment up to 18th June, 1998 pursuant to search operation carried out by the Income Tax Authorities as the same has been disputed by the company before the higher authorities.

2) Long Term Trade receivables exceeding six months include Rs.67,47,933/- due for recovery for a period of more than thirty six months and above and have become time barred under Limitations Act, 1963 for recovery thereof, no action, legal or otherwise, has been initiated by the Management. However, in the opinion of the Board all the debtors are good for recovery.

3) The Company did not have a Secretary during the year as required pursuant to the provisions of section 383-A of the Companies Act 1956.

4) The balance of Trade payable under Other Long term liabilities accounts appearing in Liabilities remain unrecognized and are subject to such rectification as deem fit on reconciliation/ confirmation.

5) During the year under review the Company has carried out business transaction in shares only, and hence there is no separate business segment reporting as per Accounting Standard 17 issued by the Institute of Chartered Accounts of India.

6) Related parties disclosure

(A) 1. Other related parties where control exists: NIL

2. Key management personnel and their relatives:

Shri A.K Sanghi Smt. Poonam Sanghi Shri M.K.Saboo Shri K.Udaykumar

Note: Related parties'' relationships as identified by the Company and relied upon by the Auditors.

7) Information pursuant to Paragraph 4A and 4D of Part II of Schedule VI of the Companies Act, 1956 is not applicable to the Company.

8) Previous year''s figures have been rearranged/ regrouped wherever necessary.

9) Based on the information / documents available with the company, sundry creditors includes total outstanding due to Micro & Small Enterprises of which:

a. Amounts overdue on accounts of principal and / or Interest: NIL

b. Name of the parties to whom the company owe any sum outstanding for more than 30 days but not overdue: NIL

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Mar 31, 2012

1) No provision has been made in respect of income tax liability of Rs.3,60,47,377/- determined on account of Block assessment up to 18th June, 1998 pursuant to search operation carried out by the Income Tax Authorities as the same has been disputed by the company before the higher authorities.

2) Sundry Debtors exceeding six months include Rs.67,47,933/- due for recovery for a period of thirty six months and above and have become time barred under Limitations Act, 1963 for recovery thereof, no action, legal or otherwise, has been initiated by the Management. However, in the opinion of the Board all the debtors are good for recovery.

3) The Company did not have a Secretary during the year as required pursuant to the provisions of section 383-A of the Companies Act 1956.

4) The balance of Sundry debtors, Sundry creditors, Loans & Advances and other accounts appearing in Current Liabilities remain unrecognized and are subject to such rectification as deem fit on reconciliation/ confirmation.

5) During the year under review the Company has carried out business transaction in shares only, and hence there is no separate business segment reporting as per Accounting Standard 17 issued by the Institute of Chartered Accounts of India.

6) Related parties disclosure

(A) 1. Other related parties where control exists: NIL 2. Key management personnel and their relatives: Shri A.K Sanghi Smt. Poonam Sanghi Shri M.K.Saboo Shri K.Udaykumar

Note: Related parties relationships as identified by the Company and relied upon by the Auditors.

7) Information pursuant to Paragraph 4A and 4D of Part II of Schedule

VI of the Companies Act, 1956 is not applicable to the Company.

8) Previous year's figures have been rearranged/ regrouped wherever necessary.

9) Based on the information / documents available with the company sundry creditors includes total outstanding due to Micro & Small Enterprises of which:

i) Amounts overdue on accounts of principal and / or Interest: NIL ii) Name of the parties to whom the company owe any sum outstanding for more than 30 days but not overdue: NIL

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Mar 31, 2010

1) No provision has been made in respect of income tax liability of Rs.3,60,47,377/- determined on account of Block assessment up to 18th June, 1998 pursuant to search operation carried out by the Income Tax Authorities as the same has been disputed by the company before the higher authorities.

2) Sundry Debtors exceeding six months include Rs.67,47,933/- due for recovery for a period of thirty six months and above and have become time barred under Limitations Act, 1963 for recovery thereof, no action, legal or otherwise, has been initiated by the Management. However, in the opinion of the Board all the debtors are good for recovery.

3) The Company did not have a Secretary during the year as required pursuant to the provisions of section 383-A of the Companies Act 1956.

4) The balance of Sundry debtors, Sundry creditors, Loans & Advances and other accounts appearing in Current Liabilities remain unrecognized and are subject to such rectification as deem fit on reconciliation/ confirmation.

5) During the year under review the Company has carried out business transaction in shares only, and hence there is no separate business segment reporting as per Accounting Standard 17 issued by the Institute of Chartered Accounts of India.

6) Related parties disclosure

(A) 1. Other related parties where control exists: NIL

2. Key management personnel and their relatives:

Shri A.K Sanghi

Smt. Poonam Sanghi

Shri M.K.Saboo

Shri K.Udaykumar

Note: Related parties relationships as identified by the Company and relied upon by the Auditors.

(B) Transactions carried out with related parties referred above:

a) In respect of finance Rs. NIL

7) Previous years figures have been rearranged/ regrouped wherever necessary.

8) Based on the information / documents available with the company sundry creditors includes total outstanding due to Micro & Small Enterprises of which:

i) Amounts overdue on accounts of principal and / or Interest: NIL

ii) Name of the parties to whom the company owe any sum outstanding for more than 30 days but not overdue: NIL