Notes to Accounts of Gilada Finance & Investments Ltd.

Mar 31, 2015

1. (a) The outstanding balances of Debtors, Creditors, Loans and Advances given / taken are subject to confirmation from the parties.

(b) The balances in current account of few banks are subject to confirmation from respective Banks.

2. During the year, as and when required, Loans and advances are given to and taken from the Directors / Companies/ firms and other parties, in which Directors are interested. Since the accounts were operated as current accounts, repayable on demand it is impossible for the Management to quantify the amount of unsecured loans given and taken. However, Balance outstanding at the yearend together with corporate guarantee given does not exceeds the limit prescribed under section 185 & 186 of the Companies Act, 2013 & under RBI Directions to NBFC's

3. Previous year's figures have been regrouped / recast / rearranged / reclassified, wherever required

4. Contingent Liabilities & Commitments

A. Contingent Liabilities

a. Claims against the Company not acknowledged as debt: - Disputed Income Tax Liability for AY 06/07 - Rs. 4,71,077/- (On account of disallowance of deduction claimed u/s 10 (23G) and expenses disallowed u/s 14A and u/s 3 7 of the 1 .T. Act. b. Guarantees : - Rs. Two Crores on behalf of a company under the same management.

c. Other Money for which the Company is contingently liable: - NIL

B. Commitments

a. Estimated amount of contacts remaining to be executed on capital account and not provided for: - NIL

b. Un called liability on shares and other investments partly paid: - NIL

c. Other Commitments: - NIL

5. Interest on unsecured loans and advances in the nature of loans, taken and/ or given have been provided, wherever stipulation to that effect exists.

6. In the opinion of the management, there is no diminution in the value of investments made in Buildings / Properties / Unquoted shares, held as Long term investments. The book balance of quoted shares, which were fully written off as loss assets in earlier years are there in physical as well as in demat form in the name of the Company.

7. In the opinion of the Board, the realizable value of the Current Assets, Loans and Advances, in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

8. Loans/Investments / Guarantees taken together to single group of parties i.e. Firms & Companies under the same management is within the limit prescribed under RBI Directions, 1998 to NBFC's and the limits prescribed under section 185 & 186 of the Companies Act, 2013.

9. In the opinion of the Board of Directors of the Company, the provisions of service tax is not applicable to the Company neither under the head Banking and financial services nor under new system of negative taxation of services.

10. Earnings per share has been computed as below as required by Accounting standard- 20 on Earnings per share issued by the Institute of Chartered Accounts of India.

11. As per accounting standard-22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, no amount has been provided against deferred tax Asset / Liability, in view of amount involved is not material.

12. The transactions with related parties as per Accounting standard-18 on "Related party Disclosures" issued by the Institute of Chartered Accountants of India, are furnished below: