Notes to Accounts of MFL India Ltd.

Mar 31, 2015

1. Company Overview

MFL India Ltd. is a company rendering logistics and supply chain services all over the country. The Indian logistics & supply chain sector is increasingly becoming attractive to foreign and domestic operators as well as strategic and financial investors. The company has the mission to extend its operations to every nook and corner of the country in the years to come as the logistics & supply chain sector is also growing with the growing India.

The Company is a public limited company incorporated on 28.11.1981 in India and has its registered at C-4/28, Acharya Niketan, Mayur Vihar, New Delhi-110075, India. The Company has its listing on BSE Limited.

2 The company had given deposit of Rs. 1,637,413 to Excise & Sales Tax Department. As these were not refunded. It has been written off in profit & loss account.

3. The performance Bank Guarantee amounting to Rupees 39,09,550/- have been issued to parties.

4. In the opinion of management, Current Assets, Loans and advances have a value on realization in the ordinary course of business at least equal to that sated in the Balance Sheet.

5. Capital and other commitments: The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2015 is NIL (Previous Year:-NIL)

6. Debit and credit balances of suppliers, customers and other are subject to confirmation and reconciliation.

7. The earning per share, basic as well as diluted is Rs 0.20 per share.

8. Notes 1-20 form as integral Para of the accounts and have been authenticated as such.

9. Employee Benefits Disclosures required under Accounting Standard 15

The provision of the Gratuity Act is not applicable to the company. The company does not have any employee more than five year old.

10. Related Party disclosure :

(I) Key Managerial Personnel

(i) Anil Thukral Managing Director

(ii) Sheetal Thukral Whole Time Director

(II) The list of the concern where related parties are interested:

Shri Krishan Aggregates Private Limited

During the year there were no related party transactions.

11. Previous Year's figures have been regrouped, reclassified and rearranged in pursuant of Schedule III wherever necessary to correspond with the figures of the current year.

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Mar 31, 2014

1 The Company has some pending cases with sales tax and central excise, which the company has not acknowledged as debt.

2 Contingent Liability

i. There are disputed Liabilities on account of Sales Tax amounting Rs. 31,17,252/- the below mentioned disputes had been appealed before the appropriate appellate authority :

A) Against Sales Tax (A.Y 1988-1989) 7,66,336.00

B) Against Sales Tax (A.Y 1998-1999) 13,45,091.00

C) Against Sales Tax (A.Y. 1999-2000) 6,21,721.00

D) Against Sales Tax (A.Y2000-2001) 3,84,104.00

ii. There is disputed Liability on account of Central Excise, amounting Rs. 25,00,000/- being penalty as per order No. 18/2009 dated 30/03/2009 of Commissioner, Central Excise, Delhi received by the Company on 16-06-2009. We have been informed by the management of the Company that the said demand will be contested in appeal before the appropriate appellate authority within the stipulated time allowed as per law.

iii. The performance Bank Guarantee amounting to Rupees 44,09,550/- have been issued to parties.

3. In the opinion of management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to that stated in the Balance Sheet.

4. Capital and other commitments: The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2014 is NIL (Previous Year:- NIL)

5. Debits and credit balances of suppliers, customers and other are subject to confirmation and reconciliation.

6. Balance in non-operative bank accounts are subject to confirmation and reconciliation.

7. The earning per share, basic as well as diluted, is Rs. 0.19 per share.

8. Notes 1 -20 form as integral Para of the accounts and have been authenticated as such.

9. Employee Benefits Disclosures required under Accounting Standard 15

The provision of the Gratuity Act is not applicable to the company. The company does not have any employee more than five year old.

i). "Dynamic Movers-Blueview-Khazana" has been awarded a contract amounting to Rs. 6 Crore by East Central Railway for the work related in connection with the New B.G Rail line Between Koderma-Giridih, Reach-VII.

10. Previous year''s figures have been regrouped, reclassified and rearranged in pursuant of revised schedule VI wherever necessary to correspond with the figures of the current year.

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Mar 31, 2013

1 The Company has some pending cases with sales tax and central excise, which the company has not acknowledged as debt.

2 Contingent Liability

i. There are disputed Liabilities on account of Sales Tax amounting Rs. 89,11,734/- the below mentioned disputes had been appealed before the appropriate appellate authority :

A) Against Sales Tax (A.Y 1988-1989) 7,66,336.00

B) Against Sales Tax (A.Y.1998-1999) 13,45,091.00

C) Against Sales Tax (A.Y.1999-2000) 6,21,721.00

D) Against Sales Tax (A.Y.2000-2001) 58,77,118.00

E) Against Sales Tax (A.Y.2002-2003) 3,01,468.00

ii. There is disputed Liability on account of Central Excise, amounting Rs. 25,00,000/- being penalty as per order No. 18/2009 dated 30/03/2009 of Commissioner, Central Excise, Delhi received by the Company on 16-06-2009. We have been informed by the management of the Company that the said demand will be contested in appeal before the appropriate appellate authority within the stipulated time allowed as per law.

iii. The performance Bank Guarantee amounting to Rupees 44,09,550/- have been issued to parties.

3. In the opinion of management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to that stated in the Balance Sheet.

4. Capital and other commitments: The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2013 is NIL (Previous Year:- NIL)

5. Debits and credit balances of suppliers, customers and other are subject to confi rmation and reconciliation.

6. Balance in non-operative bank accounts are subject to confi rmation and reconciliation.

7. The earning per share, basic as well as diluted, is Rs. 0.06 per share.

8. Notes 1 -20 form as integral Para of the accounts and have been authenticated as such.

9. Employee Benefi ts Disclosures required under Accounting Standard 15

The provision of the Gratuity Act is not applicable to the company. The company does not have any employee more than fi ve year old.

10. Previous year''s fi gures have been regrouped, reclassifi ed and rearranged in pursuant of revised schedule VI wherever nec- essary to correspond with the fi gures of the current year.

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Mar 31, 2012

1 The Company has some pending cases with sales tax and central excise, which the company has not acknowledged as debt.

2 Contingent Liability

i. There are disputed Liabilities on account of Sales Tax amounting Rs. 89,11,734/- the below mentioned disputes had been appealed before the appropriate appellate authority :

A) Against Sales Tax (A.Y.1988-1989) 7,66,336.00

B) Against Sales Tax (A.Y.1998-1999) 13,45,091.00

C) Against Sales Tax (A.Y.1999-2000) 6,21,721.00

D) Against Sales Tax (A.Y.2000-2001) 58,77,118.00

E) Against Sales Tax (A.Y.2002-2003) 3,01,468.00

ii. There is disputed Liability on account of Central Excise, amounting Rs. 25,00,000/- being penalty as per order No. 18/2009 dated 30/03/2009 of Commissioner, Central Excise, Delhi received by the Company on 16-06-2009. We have been informed by the management of the Company that the said demand will be contested in appeal before the appropriate appellate authority within the stipulated time allowed as per law.

iii. The performance Bank Guarantee amounting to Rupees 37,09,550/- have been issued to parties.

3. In the opinion of management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to that stated in the Balance Sheet.

4. Capital and other commitments: The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2012 is NIL (Previous Year:- NIL)

5. Debits and credit balances of suppliers, customers and other are subject to confirmation and reconciliation.

6. Balance in non-operative bank accounts are subject to confirmation and reconciliation.

7. The earning per share, basic as well as diluted, is Rs. 0.15 per share.

8. Note 1-20 form as integral Para of the accounts and have been authenticated as such.

9. Employee Benefits Disclosures required under Accounting Standard 15

The provision of the Gratuity Act is not applicable to the company. The company does not have any employee more than five year old.

10. Related Party disclosure :

(I) Key Managerial Personnel

(i) Anil Kumar Chaddha Executive Director

(ii) Vineet Arora Executive Director

(iii) Anil Thukral non-Executive , Professional Director

(II) The list of the concern where related parties are interested :

(a) Euro Financial Services Limited

(b) Ardour Finman Private Limited

(c) LKG Forex Limited

(d) Key Stone Exim Private Limited

(e) Remax Developers Private Limited

(f) Omkar Buildrop Private Limited

(g) More Realty Private Limited.

(h) Khera Baba Finlease and investment Private Limited

(i) A.Wargo Farms Private Limited

(j) Ritz Fincap Private Limited

(k) VJ Agritech Private Limited

ii). "Dynamic Movers-Blueview-Khazana" has been awarded a contract amounting to Rs. 6 Crore by East Central Rail- way for the work related in connection with the New B.G Rail line Between Koderma-Giridih, Reach-VII. The work of the same is slated to start from next year. The company has following assets and liabilities due to being part of Joint Venture

Assets of the Joint Venture attributable to the Company: Rs. 2,15,181.00

(EMD to the Eastern Central Railway)

Liabilities of the Joint Venture attributable to the Company: NIL

Income of the Joint Venture attributable to the Company : NIL

Expense of the Joint Venture attributable to the Company: NIL

iii). The other joint venture the company has been involved namely "Dynamic Movers-Blueview-Sidharth" has been dissolved as a consequence of unsuccessful bid for which the Venture had been formed.

The Company has following Assets and Liability as a result of being the part of a Joint Venture

Assets of the Joint Venture attributable to the company: Rs. 4,06,898.00

(EMD to the Eastern Central Railway)

Liabilities of the Joint Venture attributable to the Company: NIL

iv). The Company has no capital commitments as a result of being a Joint Venture. 16. Segment Reporting: The company has incurred a loss from the sale of plant and machinery of crusher business amounting to Rs. 44,43,074.00.The details of incomes and expenses from each segment is given below:

11. Previous year's figures have been regrouped, reclassified and rearranged in pursuant of revised schedule VI wherever necessary to correspond with the figures of the current year.

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Mar 31, 2010

1. Company has no business except dealing in Shares / Securities etc. during the financial year.

2. Contingent Liabilities

i. There are disputed Liabilities on account of Sales Tax amounting Rs. 86,10,266/-the matter is stayed in appeal before the appropriate appellate authority :

A) Against Sales Tax(A.Y.1988-1989) 7,66,336.00

B) AgainstSalesTax(A.Y1998-1999) 13,45,091.00

C) Against Sales Tax(A.Y. 1999-2000) 6,21,721.00

D) Against Sales Tax(A.Y2000-2001) 58,77,118.00

ii. There is disputed Liability on account of Central Excise, amounting Rs. 25,00,000/-being penalty as per order No. 18/2009 dated 30/03/2009 of Commissioner, Central Excise, Delhi received by the Company on 16-06-2009. We have been informed by the management of the Company the said demand has been contested in appeal before the appropriate appellate authority, which is still pending.

3. Related Party Transaction

2009-10

a) Sales & Purchase Nil

4. Provision for Deferred Tax Assets / Liabilities

The provision for deferred tax assets has not been provided since the Company is incurring continuous losses.

5. Debits and credit balances of suppliers, customers and other are subject to confirmation and reconciliation.

6. Balance in non-operative bank accounts are subject to confirmation and reconciliation.

7. Previous year figures have been re-grouped / re-classified wherever necessary.

8. The Company has sold the Car to Director and incurred the loss of Rs.3,48,843.00.

9. Schedule 1-10 form as integral part of the accounts and have been authenticated as such.