Notes to Accounts of Kiduja India Ltd.

Mar 31, 2015

1 a) Though, the net worth of the Company has eroded, the Company's financial statements have been prepared on the basis of going concern in view of comfort received from the Promoters to the effect that they will continue to support the Company financially.

b) In view of losses during the year, no amount has been transferred to "Special Reserve".

2 The accounts of Trade Payables and Current Account of certain Banks are subject to confirmations, reconciliations, and adjustments, if any, having consequential impact on the loss for the year, assets and liabilities, the amounts whereof are presently not ascertainable. However, the management does not expect any material difference affecting the current year's financial statements.

In the opinion of the Management, the assets other than fixed assets and Long term investments have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

3 The Company has made provision for leave entitlement and gratuity as per its Accounting Policies as stated in Para 9 above which is in variance with AS-15 - "Employee Benefits" prescribed by the Companies (Accounting Standards) Rules, 2006. However, the same does not have material impact on the financial statements of the Company.

4 The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been given.

5 SEGMENT INFORMATION:

A. Primary Segment Reporting -

The Company has single reportable segment viz. investment and dealing in shares and securities for the purpose of Accounting Standard 17 on Segment Reporting.

B. There are no secondary and geographical segments as all the operations are carried on in India.

6 Contingent Liability and Commitments:

1. Disputed Income tax demand under appeal, including interest upto the date of demand but excluding interest liability, if any, as may arise on conclusion of the following matter:

A. Demand of disputed Income tax Rs. 3,529,420 (Previous Year - Rs. 3,529,420).

B. Demand of disputed interest on late payment of TDS- NIL (Previous Year - Rs. 263,925)

2. Commitments: There are no material capital commitments to be disclosed.

3. The Company's pending litigations comprise of claims against the Company and proceedings pending with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities,wherever applicable,in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

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Mar 31, 2014

NOTE No. 1

OTHER NOTES ON FINANCIAL STATEMENTS:

1.1 a) Though, the net worth of the Company has eroded, the Company''s financial statements have been prepared on the basis of going concern in view of comfort received from the Promoters to the effect that they will continue to support the Company financially.

b) In view of losses during the year, no amount has been transferred to "Special Reserve".

1.2 The accounts of Trade Payables and Current Account of certain Banks are subject to confirmations, reconciliations, and adjustments, if any, having consequential impact on the loss for the year, assets and liabilities, the amounts whereof are presently not ascertainable. However, the management does not expect any material difference affecting the current year''s financial statements.

In the opinion of the Management, the assets other than fixed assets and Long term investments have a value on realization in ordinary course of business at least equal to the amount at which they are stated

1.3 The Company has made provision for leave entitlement and gratuity as per its Accounting Policies as staled in Para 9 above which is in variance with AS-15 - "Employee Benefits" prescribed by the Companies (Accounting Standards) Rules, 2006. However, the same does not have material impact on the financial statements of the Company.

1.4 The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been given.

2. SEGMENT INFORMATION:

A. Primary Segment Reporting -

The Company has single reportable segment viz. investment and dealing in shares and securities for the purpose of Accounting Standard 17 on Segment Reporting.

B. There are no secondary and geographical segments as all the operations are carried on in India.

2.1 Contingent Liability and Commitments:

1. Disputed Income tax demand under appeal, including interest upto the date of demand but excluding interest liability, if any, as may arise on conclusion of the following matter:

A. Demand of disputed Income tax *35,29,420 (Previous Year - NIL).

B. Demand of disputed interest on late payment of TDS *2,63,925 (Previous Year - NIL)

2. Commitments: There are no material capital commitments to be disclosed.

NOTES:

1. Related parties are as identified by the Company and relied upon by the Auditors.

2. No amount pertaining to Related Parties have been provided for as doubtful debts / written back except as stated above.

3. Figures in bracket represent corresponding amounts in the previous year.

4. The amount of remuneration paid excludes gratuity provision.

3.1 DEFERRED TAX LIABILITY / (ASSET):

As a matter of prudence, the management has not recognized the net deferred tax assets for period upto 31st March. 2014.

3.2 Figures of the previous year have been regrouped / reclassified wherever necessary to match with the presentation for the current year.

3.3 Additional Disclosure as required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 by Reserve Bank of India.

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Mar 31, 2013

1.1 a) Though, the net worth of the Company has eroded, the Company''s financial statemenis have been prepared on the basis of going concern in view of comfort received from the Promoters to the effect that they will continue to support the Company financially.

b) In view of losses during the year, no amount has been transferred to "Special Reserve".

1.2 The accounts of Trade Payables and Current Account of certain Banks are subject to confirmations, reconciliations, and adjustments, if any, having consequential impact on the loss for the year, assets and liabilities, the amounts whereof are presehtly not ascertainable. However, the management does not expect any material difference affecting the current year''s financial statements.

In the opinion of the Board, the assets other than fixed assets and Long term investments have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

1.3 The Company has made provision for leave entitlement and gratuity as per its Accounting Policies as stated in Para 9 above which is in variance with AS-151 - "Employee Benefits" prescribed by the Companies (Accounting Standards) Rules, 2006. However, the same does not have material impact on the financial statements of the Company.

1.4 The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been given.

1.5 SEGMENT INFORMATION:

A. Primary Segment Reporting -

The Company has single reportable segmerrf viz. investment and dealing in shares and securities for the purpose of Accounting Standard 17 on Segment Reporting.

B. There are no secondary and geographical segments as all the operations are carried on in India.

1.6 Contingent Liability and Commitments:

Interest / Penalties as may be levied in the matter of various statutes / Rules / Directions - Amount not ascertainable.

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Mar 31, 2012

A. The Company has issued one class of equity shares having a face value Rs.10 per share. Each shareholder has right to vote in respect of such share, on every resolution placed before the Company and his voting night on a port shall be in proportion to his share of the paid -up equity capital of the Company. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Company after payments to secured and unsecured creditors, in proportion to their shareholding."

a. Loan from a Body Corporate - India InfoKne Finance Ltd. is secured by way of lien marking on the units of Venture Capital Funds, further secured by way of mortgage of Properties of the Director and an Associate Body Corporate and personal guarantee of the Managing Director.

b. There are no defaults in repayment of loan.

1. Contingent liability and Commitments :

a. Disputed Income Tax Matters amounting to Rs.NIL (Previous Year - 7,994,061)

b. Interest / Penalties as may be levied in the matter of various statutes / Rules / Directions - Amount not ascertainable.

2. Capital Commitment in respect of uncalled liability:

Current Year Previous Year

i) India Growth Fund 8,356,422 8,750,000

ii) Kotak India Venture Fund-1 60,48,960 15,000,000

3. In view of loss during the year, no amount has been transferred to "Special Reserve".

4. The accounts of Trade Payables are subject to confirmations, reconciliations, and adjustments, if any, having consequential impact on the loss for the year, assets and liabilities, the amounts whereof are presently not ascertainable. However, the management does not expect any material difference affecting the current year's financial statements.

5. The Company has made provision for leave entitlement and gratuity as per its Accounting Policies as stated in Para 9 above which is in variance with AS-15 - "Employee Benefits" prescribed by the Companies (Accounting Standards) Rules, 2006. However, the same does not have material impact on the financial statements of the Company.

6. In the opinion of the Board, the assets other than fixed assets and non-current investments have a value on realisation in ordinary course of business atleast equal to the amount at which they are stated.

7. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

NOTES:

1. Related parties are as identified by the Company and relied upon by the Auditors.

2. No amount pertaining to Related Parties have been provided for as doubtful debts.

3. Figures in bracket represent corresponding amounts in the previous year.

8. Deferred Tax Liability / (Asset):

As a matter of prudence, the management has not recognized the deferred tax assets for period upto 31st March, 2011 and for the year.

9. SEGMENT INFORMATION :

A. Primary Segment Reporting

The Company has single reportable segment viz. investment and dealing in shares and securities for the purpose of Accounting Standard 17 on Segment Reporting.

B. There are no secondary and geographical segment as all the operations are carried on in India.

10. Current year's Financial Statements have been presented in accordance with the Revised Schedule VI, previous year's figures have been regrouped / reclassified / rearranged, wherever necessary to conform to the current year's presentation.

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Mar 31, 2010

1. Contingent liability not provided in respect of:

Interest / Penalties as may be levied in the matter of Income Tax and other statutes / Rules / Directions - Amount not ascertainable.

b. The above investments have been made on long term basis and diminution in value in the investee companies of these funds have been considered temporary and accordingly, no provision for the same is required.

2. As there is loss during the year, no amount has been transferred to Special Reserve as per Reserve Bank of India (RBI) directives applicable to Non-Banking Finance Companies. The utilization of said reserves is subject to the guidelines issued by RBI from time to time under the said directives.

3. The accounts of certain Creditors, Secured Loans and Loans & Advances are subject to confirmations, reconciliations, and adjustments, if any, having consequential impact on the loss for the year, assets and liabilities, the amounts whereof are presently not ascertainable. However, the management does not expect any material difference affecting the current years financial statements.

4. a) Term Loan from a bank was secured by First & exclusive charge by way of mortgage over certain immovable properties situated at Mumbai and - personal guarantee given by the Managing Director.

b) Loan from a body Corporate is secured .by way of lien marked on the units of Venture Capital Funds, further secured by way of mortgage of Residential Properties of the Director and Associates Body Corporate and personal guarantee of the Managing Director.

5. The Company has made provision for leave entitlement and gratuity as per its Accounting Policies as stated in Para A9 above which is in variance with AS-15 - "Employees Benefits" prescribed by the Companies (Accounting Standards) Rules, 2006. However, the same does not have material effect on the results of the Company.

6. In the opinion of the Board, the current assets, loans and advances have a value on realisation in ordinary course of business atleast equal to the amount at which they are stated in the accounts. The provisions for depreciation and for all known liabilities are adequate and not in excess of amount reasonably necessary.

7. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

8. a) Exceptional items consists of Rs.NIL (previous year - Rs.17,900,000) received as a result of the settlement of the disputed property matter reached as per the agreed consent terms filed in Court on 9th July, 2010 and accounted for in 2008-09.

b) The Company has received interest of Rs. 134,406 (Previous Year - Rs.3,637,856) on deposits with court for the purpose of above mentioned case which is shown as interest under the head "Other Income".

9.RELATED PARTY DISCLOSURES AS PER ACCOUNTING STANDARD(AS)-18 :

A. List of Related Parlies with whom transactions have been entered into in the ordinary course of the business:

Party Name Relationship

1 Jaipuria Enterprises Pvt. Ltd. Associates

2 Kiduja Securities Pvt Ltd.

Key Managerial Personnel

1 Mr. Ashish D. Jaipuria (controlling party) Managing Director

2 Mrs. Kirti D. Jaipuria Whole Time Director

NOTES:

1. Related parties are as identified by the Company and relied upon by the Auditors.

2. No amount pertaining to Related Parties have been provided for as doubtful debts. Also, no amounts have been written off / written back during the year.

3. Figures in bracket represent corresponding amounts in the previous year.

10.SEGMENT INFORMATION:

A. Primary Segment Reporting

The Company has single reportable segment viz. investment and dealing in shares and securities for the purpose of Accounting standard 17 on segment Reporting.

B. There are no secondary and geographical segment as all the operations are carried on in India.

11. Previous years figures have been regrouped / reclassified, wherever necessary to conform to the current years presentation.

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Mar 31, 2009

1" Contingent liability not provided i respec Upto the date of demand) of Rs. NIL (Previous year - Rs. 824,883).

2. a. Capital Commitment in respect of uncalted liability:

3. a) The Company had applied for registration in the previous year as provided in Section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), and received Certificate of Registration effective 09th day of July, 2008. The management had due to business exigencies, commenced financial activities since 2007-08 viz. investment / trading in securities before the registration could be obtained.

b) As there is loss during the year, no amount has been transferred to Special Reserve as per Reserve Bank of India (RBI) directives applicable to Non- Banking Finance Companies. The utilization of said reserves is subject to the guidelines issued by RBI from time to time under the said directives.

4 The accounts of certain Creditors, Secure d a Loans and Loans. & Adv. consequential impact on the loss for the year, assets and liabilities, the amounts whereof are presently not ascertainable. However, the management does not expect any material difference affecting the current years financial statements.

5. a) Term Loan from a bank is secured by First & exclusive charge by way of mortgage over certain immovable properties situated at Mumbai and personal guarantee given by the Managing Director.

b) Loan from a body Corporate is secured by way of lien marked on the units of Venture Capital Funds

6. The Company has made provision for leave entitlement and gratuity as per its Accounting Policies as stated in Para A9 above which is in variance with AS-15 - "Employees Benefits" prescribed by the Companies (Accounting Standards) Rules, 2006. However, the same does not have material effect on the results of the Company.

7. In the opinion of the Board, the current assets, loans and advances have a value on realisation in ordinary course of business atleast equal to the amount at which they are stated in the accounts. The provisions for depreciation and for all known liabilities are adequate and not in excess of amount reasonably necessary.

8. Segment Reporting:

Disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

employees holds 200 and 500 shares in the Company.

consent terms filed in Court on 9 pe July, 2009 and accounted for in 2008-09.

b) The Company has received interest of Rs.3,637,856 (includes Rs.2,278,279 relating to earlier years) on deposits with court for the purpose of above mentioned case which is shown as interest under the head "Other Income".

9.Deferred Tax Liability /(Asset):

As a matter of prudence, the management has not recognized the deferred tax assets (DTA in respect of unabsorbed carried forward losses / depreciation / expenditure allowable on payment basis and deferred tax liability on account of depreciation / amortization) for period upto 31s March, 2009 and has also, during the year, reversed the deferred tax liability recognized upto end of the previous year

(a) In respect of Trading in Derivative instruments, considering the nature of contracts, it is not feasible to disclose the Quantitative details

10.SEGMENT INFORMATION :

A. Primary Segment Reporting

The Company has s ingle reportable segment viz. investment and dealing in shares and securities for the purpose of Accounting Standard 17 on Segment Reporting.

B. There are no secondary and geographical segment as all the operations are carried on in India.

11. Previous years figures have been regrouped / reclassified, wherever necessary to conform to the current years presentation.