Notes to Accounts of Mehta Securities Ltd.

Dec 31, 2014

1) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend if any proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended 31 December 2014, the company has not declared any dividend to equity shareholders (31st December 2014: Rs Nil).

2) Details of Shares held by each shareholder holding more than 5 % shares:

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

3) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period.

As at 31/12/2014 As at 31/12/2013

Outstanding at the end of the period Nil Nil

4) The company has not issued any bonus shares or shares for consideration other than cash or bought back equity shares during the year or for the period of five years immediately preceding the date of balance sheet.

Note - 5: DISCLOSURE REQUIRED UNDER SECTION 22 OF THE MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT AT, 2006.

The company has not received information from vendors regarding their status under the micro/small & medium enterprises development Act, 2006, hence disclosure relating to amounts unpaid as at the yearend under this Act has not been given.

Note - 6: RELATED PARTIES DISCLOSURE IN ACCORDANCE WITH ACCOUNTING STANDARD - 18

a) Key management personnel:

1) Managing Director

2) Director

b) Any other person influenced by key management personnel or their relatives.

Transactions that have taken place during the year January 1, 2014 to December 31, 2014 with related parties by Company.

Enterprises owned or Nature of Amount Amount significantly Transaction 2014 2013 influenced by key (in Rs.) (in Rs.) management personnel or their relatives

1. Bhavna D. Mehta Business Dealings 12.54(Dr) 5.01(Dr)

2. Chirag D. Mehta Business Dealings 3.74(Dr) 3.30(Dr)

3. Indira V. Mehta Business Dealings 42.87(Dr) 3.18(Cr)

4. Darshan V. Mehta Business Dealings 0.57(Cr) NIL

5. Mehta Housing Business Dealings 14.68(Cr) 41.45(Dr) Finance Ltd

6. Mehta Integrated Business Dealings 76.28(Dr) 119.55(Dr) Finance Limited

Related party relationship is as identified by the management & relied upon by the auditors.

1. The Company has ceased to carry on fund based business and hence not governed by Reserve Bank of India Act.

2. The liabilities towards the secured loan towards banks, financial institutions have been fully accounted for, till date.

3. Previous and Current Year figures have been regrouped, reclassified and represented properly wherever found necessary.

4. Various claims receivable of the previous year and liabilities relating to the previous year have been brought in the current years to show a true and fair view of the accounts.

5. Balance in Secured Loans, Unsecured Loans, Sundry Creditors, Debtors, Loans & Advances are subject to confirmation.

6. On the basis of the information available with the Company, there is no amount due but remaining unpaid as on 31st December, 2014 to any supplier who is a Small Scale or Ancillary Industrial undertaking.

7. The Compromise & Arrangement as sanctioned by the Hon''ble Gujarat High Court is in force and being implemented & accounted accordingly.

8. The requirements of Accounting Standard 22 "Accounting for taxes on income" have been considered and the management is of the opinion that no deferred tax assets / liability needs to be created.

9. In the absence of the taxable income, no provision for taxation has been made u/s 115 JB of the Income Tax Act, 1961. However, the tax year end of the Company being 31st March, 2015 the ultimate liability for the A.Y.- 2014-15 will be determined on the total income of the Company for the year ended 31st March, 2015.

10. Auditors Remuneration :

31/12/2014 31/12/2013

Audit Fees 10000 10000 (Excluding Service Tax)

Total 10000 10000

11. The Company has not made any provision for Income Tax as the Company does not envisage any liability.

12. Information Pursuant to Schedule III of the Companies Act, 2013.

31/12/2014 31/12/2013

a) Earning in Foreign Currency NIL NIL

b) Expenditure in Foreign Currency NIL NIL

13. Earnings Per Share:

31/12/2014 31/12/2013

Profit after tax 56.45 0.00

Number of Shares outstanding at the end of the year 3089400 3089400

Basis EPS (Rs) 1.83 00.00

Nominal Value of Shares (Rs) 10.00 10.00

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Dec 31, 2013

1. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend if any proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended 31 December 2013, the company has not declared any dividend to equity shareholders.

2. a) The Company has invested in shares. where some times there is diminuton in value of investment. No provision has been made for any possible loss in value of investments, considering the instrinsic value of the business, the nature of invesments being of a long term nature and the expected improvement in performance of the investee company.

b) Investments :

No Provision for difference between book value and market value of in value of long term quoted investments in one script has been made since in the opinion of the management such difference is of temporary nature and do not represent a diminution other than temporary.

Note : 3 Disclosure required under section 22 of the Micro, Small & Medium Enterprises development At, 2006. The company has not received information from vendors regarding their status under the micro / small & medium enterprises development Act 2006, hence disclosure relating to amounts unpaid as at the year end under this Act has not been given.

4. On the basis of the information available with the Company, there is no amount due but remaining unpaid as on 31st December 2013 to any suppliers who is a small scale or ancillary industrial undertaking.

5. The requirement of Accounting Standard 22 "Accounting for Taxes on Income" have been considered and the management opinion that no deferred tax assets/liability needs to be created.

As per Accounting Standard 22 issued by The Institute of Chartered Accountants of India during the year, due to the loss the company has not provided taxation in Books of Account including deferred tax liability as the company do not envisage any such liability in near future.

6. In the absence of the taxable income, no provision for taxation has been made U/s.115JB of The Income Tax Act. However, the tax-year end of the Company being 31/03/2014, the ultimate liability for the A.Y2014-2015 will be determined on the total Income of the Company for the year ended 31/03/2014.

7. Corresponding figures of the previous year have been regrouped or restated to make them comparable with current year figures whenever necessary.

8. Unsecured Loans, Current Liabilities, Loans & Advances, Deposits and Sundry Debtors are subject to confirmation and adjustments, if any.

9. Segment Reporting :

The company is engaged in Investments and advisory services and hence management is of the opinion that it does not have a reportable primary segment identifiable in accordance with the Accounting Standard 17 issued by the Institute of Chartered Accountants of India.

10. Related Party Transactions :

The Company has identified all the related parties as defined under Accounting Standard 18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India having transactions during the year, as per details given below. There were no amounts written off or written back from such parties during the year. The related parties included in the various categories above, where no transactions have taken place.

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Dec 31, 2012

1. On the basis of the information available with the Company, there is no amount due but remaining unpaid as on 31st December 2012 to any suppliers who is a small scale or ancillary industrial undertaking.

2. The requirement of Accounting Standard 22 "Accounting for Taxes on Income" have been considered and the management opinion that no deferred tax assets/liability needs to be created.

As per Accounting Standard 22 issued by The Institute of Chartered Accountants of India during the year, due to the loss the company has not provided taxation in Books of Account including deferred tax liability as the company do not envisage any such liability in near future.

3. In the absence of the taxable income, no provision for taxation has been made U/s.115JB of The Income Tax Act. However, the tax-year end of the Company being 31/03/2012, the ultimate liability for the A.Y.2013-2014 will be determined on the total Income of the Company for the year ended 31/03/2013.

4. Corresponding figures of the previous year have been regrouped or restated to make them comparable with current year figures whenever necessary.

5. Unsecured Loans, Current Liabilities, Loans & Advances, Deposits and Sundry Debtors are subject to confirmation and adjustments, if any.

6. Related Party Transactions :

The Company has identified all the related parties as defined under Accounting Standard 18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India having transactions during the year, as per details given below. There were no amounts written off or written back from such parties during the year. The related parties included in the various categories above, where no transactions have taken place.

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Dec 31, 2011

Note : 1 Disclosure required under section 22 of the Micro, Small & Medium Enterprises development At, 2006. The company has not received information from vendors regarding their status under the micro / small & medium enterprises development Act , 2006, hence disclosure relating to amounts unpaid as at the year end under this Act has not been given.

Note : 2 Related Parties disclosure in accordance with Accounting Standard - 18

a. Key management personnel

1) ( Managing Director)

2). (Director )

b.ly influenced by key management personnel or their relatives

1). Pvt Ltd

2).Pvt. Ltd.

Transactions that have taken place during the year January 1st 2011 to December 31, 2012 with related parties by Company.

1. On the basis of the information available with the Company, there is no amount due but remaining unpaid as on 31st December 2011 to any suppliers who is a small scale or ancillary industrial undertaking.

2. The requirement of Accounting Standard 22 "Accounting for Taxes on Income" have been considered and the management opinion that no deferred tax assets/liability needs to be created.

As per Accounting Standard 22 issued by The Institute of Chartered Accountants of India during the year, due to the loss the company has not provided taxation in Books of Account including deferred tax liability as the company do not envisage any such liability in near future.

3. In the absence of the taxable income, no provision for taxation has been made U/s.115JB of The Income Tax Act. However, the tax-year end of the Company being 31/03/2011, the ultimate liability for the A.Y.2012-2013 will be determined on the total Income of the Company for the year ended 31/03/2012.

4. Corresponding figures of the previous year have been regrouped or restated to make them comparable with current year figures whenever necessary.

5. Unsecured Loans, Current Liabilities, Loans & Advances, Deposits and Sundry Debtors are subject to confir- mation and adjustments, if any.

6. Segment Reporting :

The company is engaged in Investments and advisory services and hence management is of the opinion that it does not have a reportable primary segment identifiable in accordance with the Accounting Standard 17 issued by the Institute of Chartered Accountants of India.

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Dec 31, 2010

1. On the basis of the information available with the Company' there is no amount due but remaining unpaid as on 31st December 2010 to any suppliers who is a small scale or ancillary industrial undertaking.

2. The requirement of Accounting Standard 22 “Accounting for Taxes on Income" have been considered and the management opinion that no deferred tax assets/liability needs to be created.

As per Accounting Standard 22 issued by The Institute of Chartered Accountants of India during the year' due to the loss the company has not provided taxation in Books of Account including deferred tax liability as the company do not envisage any such liability in near future.

3. In the absence of the taxable income' no provision for taxation has been made U/s.115JB of The Income Tax Act. However' the tax-year end of the Company being 31/03/2011' the ultimate liability for the A.Y.2011-2012 will be determined on the total Income of the Company for the year ended 31/03/2011.

4. Corresponding figures of the previous year have been regrouped or restated to make them comparable with current year figures whenever necessary.

5. Unsecured Loans' Current Liabilities' Loans & Advances' Deposits and Sundry Debtors are subject to confir- mation and adjustments' if any.

6. Segment Reporting :

The company is engaged in Investments and advisory services and hence management is of the opinion that it does not have a reportable primary segment identifiable in accordance with the Accounting Standard 17 issued by the Institute of Chartered Accountants of India.

7. Related Party Transactions :

The Company has identified all the related parties as defined under Accounting Standard 18 “Related Party Disclosure" issued by the Institute of Chartered Accountants of India having transactions during the year' as per details given below. There were no amounts written off or written back from such parties during the year. The related parties included in the various categories above' where no transactions have taken place.

8. Additional information as required under Part IV of Schedule VI to the Companies Act' 1956 of India:

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Dec 31, 2008

1. On the basis of the information available with the Company, there is no amount due but remaining unpaid as on 31st December 2008 to any suppliers who is a small scale or ancillary industrial undertaking. 2. The requirement of Accounting Standard 22 "Accounting for Taxes on Income" have been considered and the management opinion that no deferred tax assets/liability needs to be created.

As per Accounting Standard 22 issued by The Institute of Chartered Accountants of India during the year, due to the loss the company has not provided taxation in Books of Account including deferred tax liability as the company do not envisage any such liability in near future.

3. In the absence of the taxable income, no provision for taxation has been made U/S.115JB of The Income Tax Act. However, the tax-year end of the Company being 31/03/2009, the ultimate liability for the A.Y.2009-2010 will be determined on the total Income of the Company for the year ended 31/03/2009.

4. Corresponding figures of the previous year have been regrouped or restated to make them comparable with current year figures whenever necessary.

5. Unsecured Loans, Current Liabilities, Loans & Advances, Deposits and Sundry Debtors are subject to confir- mation and adjustments, if any.

6. Segment Reporting :

The company is engaged in Investments and advisory services and hence management is of the opinion that it does not have a reportable primary segment identifiable in accordance with the Accounting Standard 17 issued by the Institute of Chartered Accountants of India.

7. Related Party Transactions :

The Company has identified all the related parties as defined under Accounting Standard 18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India having transactions during the year, as per details given below. There were no amounts written off or written back from such parties during the year. The related parties included in the various categories above, where no transactions have taken place.

Sr. No. Relation Party

1. Key Management Personnel 1. Chirag D. Mehta

2. Bhavna D. Mehta

2. Individual / Enterprise over which key NIL management personnel exercise significant influence

8. Additional information pursuant o the provisions of paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956.

a. Production Capacity : Not Applicable

b. Turnover: Not Applicable

c. Raw Materials Consumed: (Indigenous Only): . Not Applicable

d. Stock: Nil

e. Value of Imports calculated on CIF Basis : Nil

f. Expenditure in Foreign Currency: Nil

g. Earnings in Foreign Currency: Nil