Notes to Accounts of Sonal Mercantile Ltd.

Mar 31, 2019

1. Basis of preparation

The financial statements have been prepared in accordance with the generally accepted accounting principles (GAAP) in India. Indian GAAP comprises mandatory accounting standards as specified under the section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 and other accounting pronouncements of the Institute of Chartered Accountants of India.

The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies not specifically referred, are consistently applied from the past accounting periods.

2. There are no dues to Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 which are outstanding for a period more than 45 days as at balance sheet date.

The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information available with the Company and has been duly relied upon by the auditors of the Company.

3. Balances shown under head Sundry Debtors, Creditors and Advances are subject to confirmation.

4. Segment Information:

The Company has identified two reportable segments viz., trading in shares & securities and advancing of loans after taking into account the nature of product and services and the differing risk and returns on such products and services. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting: -

i) Revenue and expenses have been identified to a segment on the basis of relation to operating activities of the segment. Revenue and expenses that relate to the enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Un-allocable”.

ii) Segment assets and Segment liabilities represent assets and liabilities in respective segments. Assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Un-allocable”.

a) Secondary Segment Information: -

The Company does not have secondary segment division in respect of reportable segments.

5. Necessary disclosures as per requirements of Accounting Standard (AS) - 18 on ‘Related Party Disclosures’ are made as under: -

6. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

7. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

8. Previous year’s figures have been re-arranged or re-grouped wherever considered necessary.

9. The financial statements were approved for issue by the board of directors on 30^th May, 2019.

10. Figures have been rounded off to the nearest rupees.

11. Figures in brackets indicate negative (-) figures.

In terms of our report of even date annexed

b. Terms and rights attached to equity shares

The company has issued only one class of equity share having a par value of Rs. 10 per share. Each holder of equity shares is entitled to vote per share. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

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Mar 31, 2018

1. Basis of preparation

The financial statements have been prepared in accordance with the generally accepted accounting principles (GAAP) in India. Indian GAAP comprises mandatory accounting standards as specified under the section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 and other accounting pronouncements of the Institute of Chartered Accountants of India.

The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies not specifically referred, are consistently applied from the past accounting periods.

a. Terms and rights attached to equity shares

The company has issued only one class of equity share having a par value of Rs. 10 per share. Each holder of equity shares is entitled to vote per share. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entiled to receive remaining assets of the company, after distribution of all the preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholder.

2.1 The Company has acquired 5(ft stake in Rudraveerya Developers Limited on 10/10/2016 for the purpose of selling such stake near future. Due to some internal reasons such decision of disposal was withhold during the year. Now, the Board has decided to sell these investment by 31st March 2019. Hence, shown as Current Investments.

3. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date.

4. The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company.

5. Balance shown under head Sundry Debtors, Creditors and Advances are subject to confirmation.

6. Segment Information

(a) The Company has identified four reportable segments viz., cloth fabrics, basmati rice, electronic accessories and advancing of loans after taking into account the nature of product and services and the differing risk and returns on such products and services. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting: -

i). Revenue and expenses have been identified to a segment on the basis of relation to operating activities of the segment. Revenue and Expenses relates to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “U n-allocable”.

ii). Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Un-allocable”.

7. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

8. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

9. Previous Year’s Figures have been re-arranged or re-grouped wherever considered necessary.

10. The financial statements were approved for issue by the Board of Directors on 30th May, 2018.

11. Figures have been rounded off to the nearest rupees.

12. Figures in brackets indicate negative (-) figures.

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Mar 31, 2015

1. Basis of preparation

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India. Indian GAAP comprises mandatory accounting standards as specified under the section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 and other accounting pronouncements of the Institute of Chartered Accountants of India.

The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies not specifically referred, are consistently applied from the past accounting periods.

2. Terms and rights attached to equity shares

The company has issued only one class of equity share having a par value of Rs. 10 per share. Each holder of equity shares is entitled to vote per share. The company declares and pays dividend if any, in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

3. In the event of liquidation of the company, the holders of equity shares will be entitiled to receive remaining assets of the company, after distribution of all the preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholder.

4. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date.

5. The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company.

6. The company is an Investing & financing company and most of the revenue of the company arise from investing activities. As Provisions of Accounting Standard (AS) - 17 issued by the ICAI on 'Segment Reporting' are not been applicable to the Company.

7. Deferred Tax Assets and Liabilities are recognised in respect of current year and prospective years. Deferred Tax Asset is recognised on the basis of reasonable / virtual certainty that sufficient future taxable income will be available against which the same can be realized.

8. In the opinion of the management, the current assets, loans and advances have a relaisable value in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

9. Related party disclosures/ transactions

As per accounting standard 18 on "Related party Disclosure" issued by the Institute of Chartered Accountants of India the disclosure of transactions with the related party is as under:

A) Related Party where control exists:

Sunil Kumar (Key management personnel)

Deepika Rathore (Key management personnel)

Anjali Aggarwal (Key management personnel)

B) Individuals owning, directly or indirectly, an interest in the voting power & Relatives of Such Individuals

Gopal bansal HUF (Huf of Director)

Sunita Bansal (Wife of Director)

Deep chand Singhal (Director)

10. The company has taken an office building on lease, which is classified as an operating lease. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight- line basis over the period of the lease. Lease Payment recognized in the statement of profit & loss for the year is Rs. 1,20,000/-.

11. Particulars Current Period Previous Year (Rs.) (Rs.)

Earnings/ Remittances and/ or Expenditure in Foreign Currency Nil Nil

12. Quantitive Information in respect of Opening Stock, Purchases, Sales and Closing Stock pursuant to Schedule VI of the Companies Act, 1956 are as per list attached.

13. Particulars Current Period Previous Year (Rs.) (Rs.)

Contingent Liability not provided for Nil Nil

14. Previous Year's Figures have been re-arranged or re-grouped wherever considered necessary.

15. Figures have been rounded off to the nearest rupees.

16. Figures in brackets indicate negative (-) figures.

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Mar 31, 2014

1. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended from time to time) and the relevant provisions of the Companies Act, 1956.

The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies not specifically referred, are consistently applied from the past accounting periods.

b. Terms and rights attached to equity shares

The company has issued only one class of equity share having a par value of Rs. 10 per share. Each holder of equity shares is entitled to vote per share. The company declares and pays dividend if any, in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitiled to receive remaining assets of the company, after distribution of all the preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholder.

2. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date.

The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company.

3. Provisions of Accounting Standard (AS) – 17 issued by the ICAI on ''Segment Reporting'' are not been applicable to the Company.

4. Deferred Tax Assets and Liabilities are recognised in respect of current year and prospective years. Deferred Tax Asset is recognised on the basis of reasonable / virtual certainty that sufficient future taxable income will be available against which the same can be realized.

5. In the opinion of the management, the current assets, loans and advances have a relaisable value in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

6. Related party disclosures/ transactions

There is no transaction entered with the related party covered by the Accounting Standard (AS) – 18 on ''Related Party Disclosure'' during the period covered by these financial statements.

7. Balance shown under head Sundry Debtors, Creditors and Advances are subject to confirmation.

8. Previous Year''s Figures have been re- arranged or re- grouped wherever considered necessary.

9. Figures have been rounded off to the nearest rupees.

10. Figures in brackets indicate negative (-) figures.

Notes :

1 As defined in Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2 Provisioning norms shall be applicable as precribed in the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

3 All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debts. However, market value in respect of quoted investments and break- up/fair value/ Nav in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in cloumn (5) above.