Notes to Accounts of GACM Technologies Ltd.

Mar 31, 2016

Note 1 Employee Benefits

Gratuity:

The following table sets set out the status of the gratuity plan as required under Accounting standard (AS) 15 “Employee Benefits” prescribed by Companies (Accounting Standards) Rules, 2006, (''the Rules''):

Discount rate: The discount rate is based on the gross redemption yield on medium to long term risk free investments.

Salary escalation: The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

Attrition rate: The attrition rate is the expected employee turnover for the future periods, adjusted to the current economic environment.

Note 2Tax Expense

Deferred tax is provided on timing differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The deferred tax assets / (liability), net as on 31 March, 2016 comprises of:

The company has operating lease for office premise, which is renewable on periodical basis and cancelable at its option. Lease expenses on such operating lease recognized in the Profit and Loss account on a straight line basis over the lease term.

Note 3 Amounts payable to Micro, Small and Medium enterprises

“Disclosure under Section 22 of the Micro, Small and Medium enterprises Development Act, 2006 (MSMED) Based on the information available with the Company, no creditors have been identified as “supplier” within the meaning of “Micro, Small and Medium Enterprises Development (MSMED) Act, 2006”.

Note 4 Related Party Disclosures

A. List of related parties

i) Wholly Owned Subsidiaries 1. Stampede Enterprises India Private Limited

2. Stampede Technologies Pte. Limited

3. Stampede Financials Pte. Limited

ii) Associate Companies 1. Proseed India Limited (formerly Green Fire Agri Commodities Limited)

2. Kling Holdings Limited (formerly Stampede Holdings Ltd.)

3. SpaceNet Enterprises India Limited (formerly Northgate Com Tech Limited)

4. Social Media India Limited

5.Blueshark Derivate Trading Private Limited

iii) Key Managerial Personnel 1. Mr. Venkat S. Meenavalli, Chairman

2. Mr. Dasi Emmanuel, Executive Director

iv) Persons having Substantial Interest in Voting Power Mrs. M. Usha Rani

B. Non Executive Directors and Independent Directors on the Board of the Company Name of the personnel Relationship

Mr. Venkat Srinivas Meenavalli Chairmam and Non-Executive Director

Mr. Emmanuel Dasi Executive Director

Mr. P. Parthasarathi Director Finance (CFO)

Mr. K. Avinash Independent Director (from 25.03.205)

Mrs.M.V. Laxmi Non Executive and Women Director (from 31.03.2016)

Mr. R. Vivek Kumar__Non Executive Independent Director_

The Company has instituted the following employee stock option plan for all eligible employees, in pursuance to the respective special resolution approved by the shareholders. All the plan options shall be administered by the compensation committee, which shall determine the employees eligible for receiving options, the number of options to be granted, the exercise price, the vesting period and the exercise period. The vesting period is determined for the options issued on the date of the grant.

The exercise price of the options granted under the ESOP Plan is defined as the closing market price of the underlying equity share, preceding the date of grant of options on the stock exchange having the highest trading volume of such shares.

In the case of termination of the employment, all non-vested options would stand cancelled. Options that have vested but have not been exercised can be exercised within the time prescribed under each option agreement approved by the compensation committee, which shall not be beyond the initial exercise period, failing which they would stand cancelled.

Note 5 There are no outstanding dues to Investor and Education Protection Fund as on 31 March 2016. Note 26 Foreign Currency Earnings and Outgo:

Note 6 Previous year figures

Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year classification.

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Mar 31, 2015

Note 1 Contingent Liabilities and Capital Commitments

For the year ended For the year ended Particulars 31 March 2015 31 March 2014

Contingent Liabilities Nil Nil

Capital Commitments Nil Nil

Note 2 Segment Information

The company operates in only one business segment i.e. securities and currencies broking and trading through recognized stock exchanges in India.

Discount rate: The discount rate is based on the gross redemption yield on medium to long term risk free investments.

Salary escalation: The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

Attrition rate: The attrition rate is the expected employee turnover for the future periods, adjusted to the current economic environment.

Note 3 Tax Expense

Deferred tax is provided on timing differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The deferred tax assets / (liability), net as on 31 March, 2015 comprises of:

Note 4 Leases

The company has operating lease for office premise, which is renewable on periodical basis and cancelable at its option. Lease expenses on such operating lease recognised in the Profit and Loss account on a straight line basis over the lease term.

Note 5 Amounts payable to Micro, Small and Medium enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after fling of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March, 2015 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier under the said Act.

Note 6

There are no outstanding dues to Investor and Education Protection Fund as on 31 March 2015.

Note 7

During the F.Y.2013-14 There was an incident of Fire Accident at the then Registered office of the Company on 10th February, 2014 wherein extensive damage took place to the Data Processing Equipments, Records and Vouchers. The company has a system of maintaining records including agreements etc., in soft copies. Further the company has a disaster recovery policy, accordingly maintains of site backup of system data. The company has commenced its operation normally through recovery of application software, database and soft copies from of site. The Company is of view that this incident does not affect recoverability of sums /its obligations and accordingly does not affect the going concern concept.

Note 8 Previous year figures

Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year classification.

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Mar 31, 2011

1. Figures have been rounded off to the nearest rupee. Previous year's figures have been regrouped / rearranged wherever necessary.

2. Contingent Liabilities: 2010-11 2009-10

Rs. Rs.

i. Towards Guarantees issued by Bank 25,00,000 25,00,000

ii. Interest claims by the Clients disputed by the Company not acknowledged as debts as on 31.03.2011 is Rs. 42, 37,959/- (Previous Year Rs. 33,09,709/-)

3. Segment Information:

The company operates in only one business segment i.e. securities broking and trading through stock exchanges in India.

4. Employee Benefits:

i. No provision for Gratuity to employees is provided in the books of account as there is no employee eligible for this benefit.

ii. As there is no policy for payment of earned leave encashment to its employees, no provision has been made in the books of accounts.

5. Tax Expense:

i. As the Company does not have any taxable income for the current year, no provision for current income tax has been made in books of accounts.

ii. As there is no virtual certainty in utilizing the deferred tax asset, the deferred tax asset has not recognised in the books of accounts.

6. Leases:

The company has operating lease for office premise, which is renewable on periodical basis and cancelable at its option. Rental expense for operating lease recognised in Profit and Loss Account for the year is Rs. 14,19,000/- (Previous Year Rs. 14,19,000/-)

7. Related Party Disclosures:

A. List of Related Parties

1 Associate Companies

1. Northgate Technologies Ltd

2. Stampede Holdings Ltd

3. Bio Ethanol Agro Industries Ltd.

4. GUV Holdings Private Ltd.

5. VAR Quant Tech Securities Private Limited

2 Key Management Personnel Mr. G. Venkatappaiah

3 Persons having substantial Venkat S. Meenavalli (Till 08.11.2010) interest in voting power

B. Non Executive Directors and Independent Directors on the Board of the Company

S.No. Name of the Personnel Relationship

1. A. Veerabhadra Rao Independent Director

2. D.V.S.S. Lakshminarayana Independent Director

9. There are no outstanding dues to Investor Education and Protection Fund as on 31.03.2011.

C. The other particulars as required under part II of schedule VI of the Companies Act, 1956 are not given as the same are not applicable to the Company for this year.

10. The Schedules referred to in Balance Sheet and Profit and Loss Account form an integral part of the accounts.

11. Additional information required under Part-IV of Schedule-VI of the Companies Act, 1956 is given in Annexure.

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Mar 31, 2010

1. Figures have been rounded off to the nearest rupee. Previous years figures have been regrouped / rearranged wherever necessary.

2. Contingent Liabilities: 2009-10 2008-09 Rs. Rs.

i. Towards Guarantees issued by Bank 25,00,000 25,00,000

ii. Interest claims by the Clients disputed by the Company not acknowledged as debts as on 31.03.2010 is Rs. 33,09,709/-

3. The company has commenced Securities trading operations with due approval of respective authorities and exchanges in April 2009. Hence previous year figures of operations are not comparable with that of the current year.

4. Segment Information:

The company operates in only one business segment i.e. securities broking and trading through stock exchanges in India.

5. Employee Benefits:

i. No provision for Gratuity to employees is provided in the books of account as there is no employee eligible for this benefit.

ii. As there is no policy for payment of earned leave encashment to its employees, no provision has been made in the books of accounts.

6. Tax Expense:

i. As the Company does not have any taxable income for the current year, no provision for current income tax has been made in books of accounts.

ii. As there is no virtual certainty in utilizing the deferred tax asset, the deferred tax asset has not recognised in the books of accounts.

7. Leases:

The company has operating lease for office premise, which is renewable on periodical basis and cancelable at its option. Rental expense for operating lease recognised in Profit and Loss Account for the year is Rs. 14,19,000/- (Previous Year Rs. 7,68,626/-)

8. Related Party Disclosures:

A. List of Related Parties

1 Associate Companies 1. Northgate Technologies Ltd

2. Stampede Holdings Private Ltd

3. Bio Ethanol India Ltd.

4. Green FireAgri Commodities Private Ltd.

5. GUV Holdings Private Ltd.

6. VAR Quant Tech Securities Private Limited

2 Key Management Personnel

1. Mr. G Venkatappaiah

3 Persons having substantial

1. Mr. VenkatS. Meenavalli

interest in voting power

B. Non Executive Directors and Independent Directors on the Board of the Company

S.No. Name of the Personnel Relationship

1. A. Veerabhadra Rao Independent Director

2. D.V.S.S. Lakshminarayana Independent Director

10. There are no outstanding dues to Investor and Education and Protection Fund as on 31.03.2010.

11. The Schedules referred to in Balance Sheet and Profit and Loss Account form an integral part of the accounts.

12. Additional information required under Part-IV of Schedule-VI of the Companies Act, 1956 is given inAnnexure.