Notes to Accounts of Artificial Electronics Intelligent Material Ltd.

Mar 31, 2025

(I) Provisions and Contingencies
Provisions:

Provisions are recognised when there is a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and there is a reliable estimate of the
amount of the obligation. Provisions are measured at the best estimate of the expenditure
required to settle the present obligation at the Balance sheet date and are discounted to its
present value as appropriate.

Contingent Liabilities:

Contingent liabilities are disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or nonoccurrence
of one or more uncertain future events not wholly within the control of the company or a
present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot
be made, is termed as a contingent liability.

(J) Revenue recognition

Revenue is measured at fair value of the consideration received or receivable. Revenue is
recognized when (or as) the Company satisfies a performance obligation by transferring a
promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the
customer obtains control of that asset.

When (or as) a performance obligation is satisfied, the Company recognizes as revenue the
amount of the transaction price (excluding estimates of variable consideration) that is
allocated to that performance obligation.

The Company applies the five-step approach for recognition of revenue:

i. Identification of contract(s) with customers;

ii. Identification of the separate performance obligations in the contract;

iii. Determination of transaction price;

iv. Allocation of transaction price to the separate performance obligations; and

v. Recognition of revenue when (or as) each performance obligation is satisfied.

(K) Other income:

Interest: Interest income is calculated on effective interest rate, but recognised on a time
proportion basis taking into account the amount outstanding and the rate applicable.

Dividend: Dividend income is recognised when the right to receive dividend is established.

(L) Finance Cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying
assets are capitalised as part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its intended use. Based on
borrowings incurred specifically for financing the asset or the weighted average rate of all
other borrowings, if no specific borrowings have been incurred for the asset.

Interest income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalization.

Borrowing costs include exchange differences arising from foreign currency borrowings to the
Extent they are regarded as an adjustment to the interest cost.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for
which they are incurred.

(M) Earnings per share (EPS):

Basic EPS is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted EPS, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of additional equity shares that would
have been outstanding are considered assuming the conversion of all dilutive potential equity
shares. Earnings considered in ascertaining the EPS is the net profit for the period and any
attributable tax thereto for the period.

(N) Employee benefits

i. Provident Fund

Retirement benefit in the form of Provident Fund is a defined contribution
scheme. The Company has no obligation, other than the contribution payable to
the provident fund. The Company recognizes contribution payable to the
provident fund scheme as an expense when an employee renders the related
service.

ii. Gratuity

The Management has decided to gratuity will be accounted in profit & loss A/c in
each financial year when the claim is recognized by the company which is against
the prescribed treatment of AS -15. The Quantum of provision required to be
made for the said retirements benefits can be decided on actuarial basis and the
said information could not be gathered. To the extent of such amount, the reserve
would be lesser.

(O) Fair Value Measurement:

The Company measures financial instruments such as investments in quoted share, certain
other investments etc. at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability at the
measurement date. All assets and liabilities for which fair value is measured or disclosed in the
financial statements are categorized within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value measurement as a whole.

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or
liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the
fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the
fair value measurement is unobservable.

Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

Financial assets:

Initial recognition

Financial assets are recognized when the Company becomes a party to the contractual
provisions of the instruments. Financial assets other than trade receivables and other
specific assets are initially recognized at fair value plus transaction costs for all financial
assets not carried at fair value through profit or loss. Financial assets carried at fair value
through profit or loss are initially recognized at fair value, and transaction costs are
expensed in the Statement of Profit and Loss.

Subsequent measurement

Financial assets, other than equity instruments, are subsequently measured at amortized
cost, fair value through other comprehensive income or fair value through profit or loss on
the basis of both:

i. The entity''s business model for managing the financial assets and

ii. The contractual cash flow characteristics of the financial asset.

De-recognition

The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers rights to receive cash flows from an asset, it
evaluates if and to what extent it has retained the risks and rewards of ownership. When it
has neither transferred nor retained substantially all of the risks and rewards of the asset,
nor transferred control of the asset, the Company continues to recognize the transferred
asset to the extent of the Company’s continuing involvement. In that case, the Company also
recognizes an associated liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that the Company has retained.

Financial Liabilities:

Initial Recognition and Subsequent Measurement

All financial liabilities are recognized initially at fair value and in case of borrowings and
payables, net of directly attributable cost. Financial liabilities are subsequently carried at
amortized cost using the effective interest method. For trade and other payables maturing
within one year from the Balance Sheet date, the carrying amounts approximate fair value
due to the short maturity of these instruments. Changes in the amortized value of liability
are recorded as finance cost.

De-recognition

A financial liability is de-recognized when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognized in the statement of profit or loss.

Figures in financial statement have been regrouped and / or rearranged where ever
necessary.

16. The Company has not revalued its Property, Plant and Equipment for the current
year.

17. There has been no Capital work in progress for the current year of the company.

18. There is no Intangible assets under development in the current year.

19. The balances of Trade payables, Trade Receivable and loans and advances are
subject to confirmation by respective parties.

20. In the opinion of the Board of Directors, the current assets, loans and advances
are approximately of the value stated, if realized in the ordinary course of
business.

21. In the opinion of the Board of Directors, provisions for depreciation and all
liabilities are adequate and not in excess of the amount reasonably necessary.

22. Wherever external evidence in the form of cash memos / bills / supporting are
not available, the internal vouchers have been prepared, authorized and
approved.

23. Statement of Management

(i) The current assets, loans and advances are good and recoverable and are approximately of

the values, if realized in the ordinary courses of business unless and to the extent stated
otherwise in the Accounts. Provision for all known liabilities is adequate and not in
excess of amount reasonably necessary.

(ii) Balance Sheet, Statement of Profit and Loss and Cash Flow Statement read together with
Notes to the accounts thereon, are drawn up so as to disclose the information required
under the Companies Act, 2013 as well as give a true and fair view of the statement of
affairs of the Company as at the end of the year and results of the Company for the year
under review.

24. The Company has not advanced or loaned to or invested in funds to any other
person(s) or entity(is), including foreign entities (Intermediaries) with the
understanding that the Intermediary shall:

a. directly or indirectly lend to or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

25. The Company has not received any fund from any person(s) or entity(is),
including foreign entities (Funding Party) with the understanding (whether
recorded in writing or otherwise) that the Company shall

a. directly or indirectly lend to or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

26. The company does not have transaction with the struck off under section 248 of
companies act, 2013 or section 560 of Companies act 1956.

27. The company is in compliance with the number of layers prescribed under clause
(87) of section 2 of company’s act read with companies (restriction on number
of layers) Rules, 2017.

30. Compliance with approved scheme of Arrangements.

Company does not have made any arrangements in terms of section 230 to 237 of companies act
2013, and hence there is no deviation to be disclosed.

31. Utilization of borrowed funds and share premium.

As on March 31, 2025 there is no unutilized amount in respect of any issue of securities and long
term borrowing from banks and financial institution. The borrowed funds have been utilized for
the specific purpose for which the funds were raised.

32. Corporate social responsibility (CSR).

The section 135 (Corporate social responsibility) of companies act, 2013 is not applicable to the
company.

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Mar 31, 2024

(I) Provisions and Contingencies Provisions:

Provisions are recognised when there is a present obligation (legal or constructive] as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are discounted to its present value as appropriate.

Contingent Liabilities:

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an

outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability.

(J) Revenue recognition

Revenue is measured at fair value of the consideration received or receivable. Revenue is recognized when (or as] the Company satisfies a performance obligation by transferring a promised good or service (i.e. an asset] to a customer. An asset is transferred when (or as] the customer obtains control of that asset.

When (or as] a performance obligation is satisfied, the Company recognizes as revenue the amount of the transaction price (excluding estimates of variable consideration] that is allocated to that performance obligation.

The Company applies the five-step approach for recognition of revenue:

i. Identification of contract(s] with customers;

ii. Identification of the separate performance obligations in the contract;

iii. Determination of transaction price;

iv. Allocation of transaction price to the separate performance obligations; and

v. Recognition of revenue when (or as] each performance obligation is satisfied.

(K) Other income:

Interest: Interest income is calculated on effective interest rate, but recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend: Dividend income is recognised when the right to receive dividend is established.

(L) Finance Cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been incurred for the asset.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for

which they are incurred.

(M) Earnings per share (EPS):

Basic EPS is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted EPS, the net profit or loss for the period attributable to equity shareholders and the weighted average number of additional equity shares that would have been outstanding are considered assuming the conversion of all dilutive potential equity shares. Earnings considered in ascertaining the EPS is the net profit for the period and any attributable tax thereto for the period.

(N) Employee benefits

i. Provident Fund

Retirement benefit in the form of Provident Fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognises contribution payable to the provident fund scheme as an expense when an employee renders the related service.

ii. Gratuity

The Management has decided to gratuity will be accounted in profit & loss A/c in each financial year when the claim is recognized by the company which is against the prescribed treatment of AS -15. The Quantum of provision required to be made for the said retirements benefits can be decided on actuarial basis and the said information could not be gathered. To the extent of such amount, the reserve would be lesser.

(O) Fair Value Measurement:

The Company measures financial instruments such as investments in quoted share, certain other investments etc. at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability at the measurement date. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets:

Initial recognition

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial assets other than trade receivables and other specific assets are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in the Statement of Profit and Loss.

Subsequent measurement

Financial assets, other than equity instruments, are subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of both:

i. The entity’s business model for managing the financial assets and

ii. The contractual cash flow characteristics of the financial asset.

De-recognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers rights to receive cash flows from an asset, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Financial Liabilities:

Initial Recognition and Subsequent Measurement

All financial liabilities are recognised initially at fair value and in case of borrowings and payables, net of directly attributable cost. Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments. Changes in the amortised value of liability are recorded as finance cost.

De-recognition

A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

Figures in financial statement have been regrouped and / or rearranged where ever necessary.

16. The Company has not revalued its Property, Plant and Equipment for the current year.

17. There has been no Capital work in progress for the current year of the company.

18. There is no Intangible assets under development in the current year.

19. The balances of Trade payables, Trade Receivable and loans and advances are subject to confirmation by respective parties.

20. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business.

21. In the opinion of the Board of Directors, provisions for depreciation and all liabilities are adequate and not in excess of the amount reasonably necessary.

22. Wherever external evidence in the form of cash memos / bills / supporting are not available, the internal vouchers have been prepared, authorized and approved.

23. Statement of Management

(i) The current assets, loans and advances are good and recoverable and are approximately of

the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

(ii) Balance Sheet, Statement of Profit and Loss and Cash Flow Statement read together with Notes to the accounts thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and results of the Company for the year under review.

24. The Company has not advanced or loaned to or invested in funds to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries] or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

25. The Company has not received any fund from any person(s] or entity(is], including foreign entities (Funding Party] with the understanding (whether recorded in writing or otherwise] that the Company shall

a. directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries] or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

26. The company does not have transaction with the struck off under section 248 of companies act, 2013 or section 560 of Companies act 1956.

27. The company is in compliance with the number of layers prescribed under clause (87] of section 2 of company’s act read with companies (restriction on number of layers] Rules, 2017.

30. Earnings Per Share:

The Company reports basic and diluted earnings per share (EPS] in accordance with the Accounting Standard 20 prescribed under The Companies (Accounting Standards] Rules, 2006 (as amended]. The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at the end of the year.

31. Notes forming part of accounts in relation to Micro and small enterprise

1. Based on information available with the company, on the status of the suppliers being Micro or small enterprises, on which the auditors have relied, the disclosure requirements of Schedule III to the Companies Act,2013 with regard to the payments made/due to Micro and small Enterprises are given below :

The company has initiated the process of obtaining the confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006] but has not received the same in totality. The above information is compiled based on the extent of responses received by the company from its suppliers.

32. Details of crypto currency and virtual currency.

Company has not traded or invested in crypto currency or virtual currency during the financial year.

35. Compliance with approved scheme of Arrangements.

Company does not have made any arrangements in terms of section 230 to 237 of companies act 2013, and hence there is no deviation to be disclosed.

36. Utilization of borrowed funds and share premium.

As on March 31, 2024 there is no unutilized amount in respect of any issue of securities and long term borrowing from banks and financial institution. The borrowed funds have been utilized for the specific purpose for which the funds were raised.

37. Corporate social responsibility (CSR).

The section 135 (Corporate social responsibility] of companies Acts, 2013 is not applicable to the company.

As per our report on even dated attached

For D G M S & Co. For, Artificial Electronics Intelligent Material Limited

Chartered Accountants Formerly known as Datasoft Application Software

(India) Limited

Atul B Doshi

Partner Eswara Rao Nandam Uma Nandam

Director & CFO Director Whole-time Director

M.No102585 DIN:02220048 DIN:02220048

F.R.N. 0112187W Place: Mumbai

UDIN: 24102585BJZYEW1449 Pratibha Dhanuka Uma Nandam

Date: 27/05/2024 Company Secretary Chief Financial Officer

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Mar 31, 2014

Notes

a. There is no fresh issue of equity in last five years.

b. The Company has only One class of Equity Share having a par value of Rs. 10 per share. Each holder of Equity Shares is entitled to One vote per share. In the event of Liquidation of the company, the holder of Equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number fo equity shares, held by the shareholders.

1. There are no commitments on capital account as on the date of the Balance Sheet.

2. In terms of Section 22 of Micro, Small and Medium Enterprises Development Act, 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In the absence of the information about registration of the Enterprises under the above Act, the required information could not be furnished. In view of above and in absence of relevant informations, the Auditor has relied upon the same.

3. The company has suspended all its business activities till the time company generates sufficient resources for effective working, as decided by the Board of Directors in its meeting held on 21st January 2004. Accordingly company has neither replaced senior management staff after their resignation nor retained marketing network. Company carries on its effort to identify a strategic partner, who can bring in required resources. However, the management is not able to express their views on probable date for recommencement of company''s activities.

4. Considering the fact that company has a positive net worth, that company can meet all its liabilities out of its assets, and that the realizable value of the net assets is higher than / equal to its costs recorded in books and accordingly all the assets and liabilities have been stated at their historical costs, which is same as its realizable value.

5. Principal business of the Company remains temporarily suspended due to unavailability of sufficient resources. Company shall restart its business upon generating required resources for effective working. Meanwhile idle funds are invested in interest fetching loans/deposits, till the time they get deployed in main business. Since the Company has no other business, the interest income and the loan assets are respectively more than 50% of total income and 50 % of total assets. The company therefore satisfies one of the conditions of NBFC registration. However since Net worth of the Company is less than Rs. 200 lakhs, the Company cannot register itself as NBFC.

6. Deferred Tax :

The company has unabsorbed depreciation and carry forward losses and other allowances available for set-off under the Income Tax Act 1961. However in view of present uncertainty regarding generation of sufficient future taxable income, net deferred tax assets amounting to Rs. 61,85,812 at the year-end including related credit for the year have not been recognized in these accounts on prudent basis.

The above loans are not repayable within a period of 12 months, as confirmed by the parties. Related parties are identified by Management and relied upon by the Auditors.

7. Segment Reporting :

The only source of income for the Company is interest earned on idle funds invested in loans / deposits. Hence no disclosure under Accounting Standard - 17, ''Segment Reporting'' is required in these financial statements. There is no reportable Geographical Segment.

8. At the end of the year, there were no employees in the company; hence no provision has been made for Gratuity and Leave encashment.

9. Previous period figures are grouped / regrouped, arranged / re-arranged wherever necessary to conform to current year''s classification.

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Mar 31, 2013

1. There are no commitments on capital account as on the date of the Balance Sheet.

2. In terms of Section 22 of Micro, Small and Medium Enterprises Development Act, 2006t the outstanding to these enterprises are required to be disclosed. However, these enterprises are . required to be registered under the Act. In the absence of the information about registration of the - ;

- Enterprises under the above Act, the required Information could not be furnished. In view of above and in absence of relevant informations, the Auditor has relied upon the same.

3. The company has suspended all its business activities till the time company generates sufficient . resources for effective working, as decided by the Board of Directors in its meeting held on 21M January 2004. Accordingly-company has neither replaced senior management staff after their '' resignation nor retained marketing network. Company carries on its effort to identify a strategic partner, who can bring in required resources. However, the management is not able to express < their views on probable date for recommencement of company''s activities.'' '' i

Considering the fact that company has a positive net worth, that company can meet all its liabilities out of its assets, and that the realizable value of the net assets is tiigher than / equal to its costs recorded in books and accordingly all''the assets and liabilities have been stated at their historical costs, which is same as its realizable value.

4. Principal business of the company remains temporarily suspended due to unavailability of sufficient resources. Company shall restart its business upon generating required resources for effective j working. Meanwhile idle funds are invested In interest fetching loans/deposits, tilt the time they get '' [ deployed in main business. Since the Company has "no other business, the interest income and > the ioan assets-are respectively more than-50% of total income and 50 % of total assets. The company therefore satisfies one of the conditions for fcJBFC registration. Howevet since Net worth j, of the Company is less than Rs. 200 lakhs, the Company cannot register itself as NBFC. i

5. Deferred Tax :

The* company has unatosorbed depreciation and carry forward.losses and other allowances I available for set-off under the Income Tax Act 1961. However in view of present uncertainty regarding generation of sufficient future taxable income, net deferred tax assets amounting to i Rs. 63,70,541 at the year-end including related credit for the year have not been recognized in these j accounts on prudent basis. j

The above loans are not repayable within a period of 12 months, -as confirmed by the parties. Related parties are identified by Management and relied upon by the Auditors.

6. Segmerjt Reporting : -

The only source of income for Company is interest earned on idle funds, invested in loans / deposits. Hence no disclosure under Accounting Standard - 17, ''Segment Reporting'' is required in these financial statements. There is,no reportable Geographical Segment.

7. At the end of the year, there were no employees in the company; hence no provision has been made for Gratuity and Leave encashment.

8. Previous period figures are grouped / regrouped, arranged / re-arranged wherever necessary to conform to current year''s classification.

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Mar 31, 2012

1. There are no commitments on capital account as on the date of the Balance Sheet.

2. In terms of Section 22 of Micro, Small and Medium Enterprises Development Act, 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In the absence of the information about registration of the Enterprises under the above Act, the required information could not be furnished. In view of above and in absence of relevant informations, the Auditor has relied upon the same.

3. The company has suspended all its business activities till the time company generates sufficient resources for effective working, as decided by the Board of Directors in its meeting held on 21st January 2004. Accordingly company has neither replaced senior management staff after their resignation nor retained marketing network. Company carries on its effort to identify a strategic partner, who can bring in required resources. However, the management is not able to express their views on probable date for recommencement of company's activities.

Considering the fact that company has a positive net worth, that company can meet all its liabilities out of its assets, and that the realizable value of the net assets is higher than/equal to its costs recorded in books and accordingly all the assets and liabilities have been stated at their historical costs, which is same as its realizable value.

4. Principal business of the company remains temporarily suspended due to unavailability of sufficient resources. Company shall restart its business upon generating required resources for effective working. Meanwhile idle funds are invested in interest fetching loans/deposits, till the time they get deployed in main business. Since the Company has no other business, the interest income and the loan assets are respectively more than 50% of total income and 50 % of total assets. The company therefore satisfies one of the conditions for NBFC registration. However since Net worth of the Company is less than Rs. 200 lakhs, the Company cannot register itself as NBFC.

5. Deferred Tax :

The company has unabsorbed depreciation and carry forward losses and other allowances available for set-off under the Income Tax Act 1961. However in view of present uncertainty regarding generation of sufficient future taxable income, net deferred tax assets amounting to Rs. 65,88,757 at the year-end including related credit for the year have not been recognized in these accounts on prudent basis.

6. Segment Reporting :

The only source of income for Company is interest earned on idle funds invested in loans/deposits. Hence no disclosure under According Standard - 17, 'Segment Reporting' is required in these financial statements. There is no reportable Geographical Segment.

7. At the end of the year, there were no employees in the company; hence no provision has been made for Gratuity and Leave encashment.

8. Previous period figures are grouped/regrouped, arranged/re-arranged wherever necessary to conform to current year's classification.

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Mar 31, 2011

1. There are no commitments on capital account as on the date of the Balance Sheet.

2. In terms of Section 22 of Micro, Small and Medium Enterprises Development Act, 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In the absence of the information about registration of the Enterprises under the above Act, the required information could not be furnished. In view of above and in absence of relevant informations, the Auditor has relied upon the same.

3. The company has suspended all its business activities till the time company generates sufficient resources for effective working, as decided by the Board of Directors in its meeting held on 21st January 2004. Accordingly company has neither replaced senior management staff after their resignation nor retained marketing network. Company carries on its effort to identify a strategic partner, who can bring in required resources. However, the management is not able to express their views on probable date for recommencement of company's activities.

Considering the fact that company has a positive net worth, that company can meet all its liabilities out of its assets, and that the realizable value of the net assets is higher than / equal to its costs recorded in books and accordingly all the assets and liabilities have been stated at their historical costs, which is same as its realizable value.

4. Principal business of the company remains temporarily suspended due to unavailability of sufficient resources. Company shall restart its business upon generating required resources for effective working. Meanwhile idle funds are invested in interest fetching loans/deposits, till the time they get deployed in main business. Since the Company has no other business, the interest income and the loan assets are respectively more than 50% of total income and 50 % of total assets. The company therefore satisfies one of the conditions for NBFC registration. However since Net worth of the Company is less than Rs. 200 lakhs, the Company cannot register itself as NBFC.

5. Deferred Tax :

The company has unabsorbed depreciation and carry forward losses and other allowances available for set-off under the Income Tax Act 1961. However in view of present uncertainty regarding generation of sufficient future taxable income, net deferred tax assets amounting to Rs. 71,67,784 at the year-end including related credit for the year have not been recognized in these accounts on prudent basis.

6. Segment Reporting :

The only source of income for Company is interest earned on idle funds invested in loans / deposits. Hence no disclosure under According Standard - 17, "Segment Reporting" is required in these financial statements. There is no reportable Geographical Segment.

7. At the end of the year, there were no employees in the company; hence no provision has been made for Gratuity and Leave encashment.

8. Previous year's figures are grouped / regrouped, arranged / re-arranged wherever necessary.

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Mar 31, 2010

1. There are no commitments on capital account as on the date of the Balance Sheet.

2. In terms of Section 22 of Micro, Small and Medium Enterprises Development Act, 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In the absence of the information about registration of the Enterprises under the above Act, the required information could not be furnished. In view of above and in absence of relevant informations, the Auditor has relied upon the same.

3. The company has temporarily suspended all its business activities till the time company generates sufficient resources for effective working, as decided by the Board of Directors in its meeting held on 21st January 2004. Accordingly company has neither replaced senior management staff after their resignation nor retained marketing network. Company carries on its effort to identify a strategic partner, who can bring in required resources. However, the management is not able to express their views on probable date for recommencement of companys activities.

Considering the fact that company has a positive net worth, that company can meet all its liabilities out of its assets, and that the realizable value of the net assets is higher than / equal to its costs recorded in books and accordingly all the assets and liabilities have been stated at their historical costs, which is same as its realizable value.

4. Deferred Tax :

The company has unabsorbed depreciation and carry forward losses and other allowances available for set-off under the Income Tax Act 1961. However in view of present uncertainty regarding generation of sufficient future taxable income, net deferred tax assets amounting to Rs. 93,74,298 at the year-end including related credit for the year have not been recognized in these accounts on prudent basis.

5. Segment Reporting :

The Company operates in a single segment of financing activity, hence no additional disclosure under According Standard - 17, "Segment Reporting" is required in these financial statements. There is no reportable Geographical Segment.

6. At the end of the year, there were no employees in the company; hence no provision has been made for Gratuity and Leave encashment.

7. Previous period figures are grouped / regrouped, arranged / re-arranged wherever necessary.