Notes to Accounts of Square Four Projects India Ltd.

Mar 31, 2016

Other Notes

1. Certain terms and conditions of technical collaboration agreement with a German Company have not been fulfilled by the foreign counterpart and accordingly, the relevant agreement has been terminated and the Company envisages no liability in respect of royalty payable, which amounted to Rs. 10,44,395/- up to 31.03.2007.

2. Balance of Sundry Debtors, Sundry Creditors, Deposits and Advances are subject to confirmation and reconciliation. However, in the opinion of the Management, the sundry debtors and loans and advances are considered good and recoverable. Amounts, if any, which may not be recovered would be written off in the books in such year the same are determined as non-recoverable by the Management

3. No provision for current income tax (including Minimum Alternate Tax) has been made in view of the carried forward losses, including unabsorbed depreciation.

19. ACIT Hyderabad has issued to the company an Order cum Demand notice for penalty amounting to Rs.27,63,586/-under section 271 (1)( c )of the Income Tax Act, 1961, relating to the Assessment year 2004-05. The company has preferred an appeal before the Appellate Tribunal at Hyderabad in April, 2011 against the said Order. The Company has received a favorable judgment dated 14^lh December, 2011. However, since there is a possibility of the matter being further appealed by the Department, the figure continues to be shown under contingent liability.

4. Since the company did not have any employee during the financial year ended 31^s'' March, 2016 for a continuous period of over 5 years, the provisions of AS15 relating to gratuity provision is not applicable. Also, leave salary is accounted for during the year, if applicable.

5. Based on the information/documents available with the company, there are no dues to Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2016.

6. Impairment/loss of Assets - Since the Company does not have any significant assets other than freehold land, the provisions of AS 28 relating to impairment of Assets is not applicable for the relevant year. Also, in the opinion of the . Management, the current assets, loans and advances are fully recoverable and no losses are anticipated.

7 Individuals exercising significant Arun Kumar Singh, Director influence Jai Kumar Sharma, Director Ganesh Kumar Singhania, Managing Director

8 Relatives of the above None associated with the Company

9 Entities in which persons listed in 1 Arun Kumr Singh (as Director): and 2 exercise significant influence Anajaniputra Ispat Ltd,

Jai Kumar Sharma (as Director): Yodeva Foams Pvt Ltd, Ratnagiri Engg Pvt Ltd, Dalhousie Square Medical and Research Centre Pvt Ltd, BRC Construction Co Pvt Ltd, Avorik Marketing Pvt Ltd, Captive Merchants Pvt Ltd, Armco Commercial Systems Pvt Ltd, Rajgold Vinimoy Pvt Ltd, Simran Suppliers Pvt Ltd, Linkwise Dealer Pvt Ltd, Subhashri Dealer Pvt Ltd, Amulay Mercantile Pvt Ltd, Highlight Dealer Pvt Ltd, Seema Cloth House Pvt Ltd, Sylvan Comml Pvt Ltd, Techno Banque (India) Pvt Ltd. Ganesh Kumar Singhania (as Director): Yodeva Foams Pvt Ltd, Ratnagiri Engg Pvt Ltd, Calcutta Fan (1995) Pvt Ltd, Dalhousie Square Medical and Research Centre Pvt Ltd, Singhania Developers Pvt Ltd, Square Four Realtors Pvt Ltd, Ujjwal Barter Pvt Ltd, Square Four Asset Management and Reconstruction Co Pvt Ltd, Square Four Housing & Infrastructure Co Pvt Ltd, Ramanlal Madanlal Trading Pvt Ltd, Macro Telecom Pvt Ltd, G K S Finvest Pvt Ltd, Sylvan Comml Pvt Ltd, G S Global Projects Pvt Ltd, macro Network Pvt Ltd, Square Four Shipyard & Port Infrastructure Pvt Ltd, Macro Entertainment Pvt Ltd.

10 Subsidiary Companies 1 BRC Construction Co Pvt Ltd

11 Overflow Tradelink Pvt Ltd

Note : Related party relationship are as identified by the Management and relied upon by the auditors

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Mar 31, 2015

A) Corporate Information.

Square Four Projects India Limited (Formerly Essen Supplements India Ltd) (the 'Company') is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company's main objects, vide amendment to the Memorandum of Association by a special resolution dated 3rd August, 2012, are inter-alia, development of infrastructure and real estate.

Note 1: Contingent Liabilities

(Amount in Rupees) As on As on SI No. Particulars 31.03.2015 31.03.2014

1. Contingent Liabilities (not provided for) in respect of Claims against the Company not acknowledged as debts

- Income Tax Matter 27,63,586 27,63,586

The Company has received a favourable order dated 14th December, 2011 allowing the appeal preferred by the Company for quashing the Income Tax Demand raised by the Department, including interest and penalty.

2. Estimated amount of contracts remaining to be executed on capital account (net of advances) Nil Nil

Other Notes

2. Certain terms and conditions of technical collaboration agreement with a German Company have not been fulfilled by the foreign counterpart and accordingly, the relevant agreement has been terminated and the Company envisages no liability in respect of royalty payable, which amounted to Rs. 10,44,395/- up to 31.03.2007.

3. Balance of Sundry Debtors, Sundry Creditors, Deposits and Advances are subject to confirmation and reconciliation. However, in the opinion of the Management, the sundry debtors and loans and advances are considered good and recoverable. Amounts, if any, which may not be recovered would be written off in the books in such year the same are determined as non-recoverable by the Management

4. No provision for current income tax (including Minimum Alternate Tax) has been made in view of the carried forward losses, including unabsorbed depreciation.

5. ACIT Hyderabad has issued to the company an Order cum Demand notice for penalty amounting to Rs.27,63,586/-under section 271 (1)( c )of the Income Tax Act, 1961, relating to the

Assessment year 2004-05. The company has preferred an appeal before the Appellate Tribunal at Hyderabad in April, 2011 against the said Order. The Company has received a favourable judgement dated 14th December, 2011. However, since there is a possibility of the matter being further appealed by the Department, the figure continues to be shown under contingent liability.

6. Since the company did not have any employee during the financial year ended 31st March, 2015, the provisions of AS15 are not applicable to the Company for the relevant year.

7. Information relating to Micro Small & Medium Enterprises are not required to be disclosed as during the financial year ended 31.03.15 there were no transactions with such enterprises and also there are no past dues relating to such entities.

8. Impairment/loss of Assets - Since the Company does not have any significant assets other than freehold Land, the provisions of AS 28 relating to impairment Assets is not applicable for the relevant year. Also, in the opinion of the Management, the current assets, loans and advances are fully recoverable and no losses are anticipated

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Mar 31, 2014

Note 1: Contingent Liabilities

(Amount in Rupees) As on As on Particulars 31.03.2014 31.03.2013

I. Contingent Liabilities

(not provided for) in respect of

Claims against the Company not acknowledged as debts

- Income fax Matter 27,63,586 27,63.586

The Company has received a favourable order dated 14th December, 201 I allowing the appeal preferred by the Company for quashing the Income l ax Demand raised by the Department, including interest and penalty .

2. Estimated amount of contracts remaining to be executed on capital account (net of advances) Nil Nil

Other Notes

3. C ertain terms and conditions of technical collaboration agreement with a German Company have not been fulfilled by the foreign counterpart and accordingly, the relevant agreement has been terminated and the Company envisages no liability in respect ol royalty payable, amounted to Rs. I0.44.395/- up to 31.03.2007.

4. Balance of Sundry Debtors. Sundry Creditors. Deposits and Advances are subject to confirmation and reconciliation. However, in the opinion of the Management, the sundiy debtors and loans and advances are considered good and recoverable.

5. No provision for current income tax (including Minimum Alternate t ax) has been made in view of the carried forward losses, including unabsorbed depreciation.

6. ACIT Hyderabad has issued to the company an Order cum Demand notice for penaltv amounting to Rs.2763586/-under section 271 (l)( of the Income lax Act. 1961. relating to the Assessment year 2004-05. The company has preferred an appeal before the Appellate Tribunal at Hyderabad in April, 2011 against the said Order, flic Company has received a favourable judgement dated 14th December. 2011. However, since there is a possibility of the matter being further appealed by the Department, the figure continues to be shown under contingent liability .

7. Since the company did not have any employee during the financial year ended 31st March. 2014. the provisions of AS 15 are not applicable to the Company for the relevant year.

8. Information relating to Micro Small & Medium enterprises are not required to be disclosed as during the financial year ended 31.03.14 there were no transactions with such enterprises and also there are no past dues relating to such entities.

9 Impairment loss of Assets Since the Company does not have any significant assets other than freehold Land, the provisions of AS 28 relating to impairment Assets is not applicable for the relevant year. Also, in the opinion of the Management, the current assets, loans and advances are fully recoverable and no losses are anticipated.

Related party Disclosure : Details of transactions with related parties as per AS 18:

1 Individuals exercising significant Arun Kumar Singh, Director influence Tapas Mukherjee, Director Ganesh Kumar Singhania. Managing Director

2 Relatives of the above None associated with the Company

3 Entities in which persons listed None Associated with the 1& 2 exercise significant influence Company

Sole . Related parly relationship are as identified hy the Management and relied upon hv the auditors

There have been no transactions with any of the related parties during the relevant year. Also, there are no amounts due by the Company or to the Company in relation to transactions with related parties.

10. Previous year''s figures have been regrouped and rearranged wherever necessarv

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

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Mar 31, 2010

As on As on

Sl. Particulars 31.03.2010 31.03.2009 No.

1. Contingent Liabilities (not provided for) in respect of

Claims against the Company not Acknowledge as debts Nil Nil

Royalty on Sales Nil Nil

2. Estimated amount of contracts remaining to be executed on capital amount (net of advances) Nil Nil

3. Details of Managing Director & Executive Director Remuneration.

4. Certain terras and conditions of technical collaboration agreement with a German Company has not been fulfilled by the foreign counterpart and accordingly, the agreement has been terminated and the Company envisages no liability in respect of royalty payable, which amounted to Rs. 10,44,395/- up to 31.03.2007.

5. In the year some of the fixed assets including plant & Machinery, Laboratory Equipments, Buildings, Electrical Installations, Vehicles, Furniture & Fixtures, Generators and other misc fixed assets were disposed off as the company plants to engage itself in trading of the chemicals business and also to start new venture of Hospitality and Real estate business. The sale value of the assets disposed off is Rs. 11,31,393/-

6. Balance of Sundry Debtors, Sundry Creditors, Bank accounts and Advances are subject to confirmation and reconciliation.

7. Previous years figure have been regrouped and rearranged wherever necessary.

8. Figures have been rounded off to the nearest Rupee.

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Mar 31, 2009

As on As on

Sl. No. Particulars 31.03.2009 31.03.2008

1. Contingent Liabilities provided for) in respect of Claims against the Company not Acknowledge as debts Nil Nil

Royalty on Sales Nil Nil

2. Estimated amount of contracts remaining to be executed on capital amount (net of advances) Nil Nil

3. Details of Managing Director & Executive Director Remuneration.

4 Certain terms and conditions of technical collaboration agreement with a German Company has not been fulfilled by the foreign counterpart and accordingly, the agreement has been terminated and the Company envisages no liability in respect of royalty payable, which amounted to Rs. 10,44,395/- up to 31.03.2007.

5. Balance of Sundry Debtors, Sundry Creditors, Bank accounts and Advances are subject to confirmation and reconciliation.

6. Previous years figure have been regrouped and rearranged wherever necessary.

7. Figures have been rounded off to the nearest Rupee.

8. Segment Reporting:

The Companys operation predominantly relates to manufacture of constructions Chemicals, hence no reportable primary segment information is made. Secondary segment reporting of the companys revenues are as follows.

Name of the Country Turnover (Rs.)

INDIA 80,65,193

** Additional information pursuent to the provision of Part II of Schedule IV to VII to the Companies Act, 1956

Licenced and installed capacity

Product Name Construction Chemicals & Epoxy Resins

Licensed Capacity : Delicensed

Installed Capacity: 6000 TPA