Notes to Accounts of Mideast Portfolio Management Ltd.

Mar 31, 2014

1 Company Background

Mideast is a Public Limited finance company. Its equity shares are listed on Mumbai Stock Exchanges.

Mideast is registered with Securities Exchange Board of India (SEBI) as Merchant Bankers and Portfolio Managers (Applied for renewal of licence). It has managed public issues as Lead Managers and acted as IPO advisors. It has contributed significant amount in mobilising / marketing IPOs to NRIs abroad. Mideast is also engaged in Corporate advisory services, Loan Syndication, Debt Placement, arranging External Commercial Borrowings (ECB) etc.

2. Contingent Liability:-

(a) The Company has received Assessment Order from Income Tax Department for Ass. Year 1995-96 raising a demand of Rs.93,82,760/- on account of various disallowances and additions. The company has preferred an appeal against the said Assessment Order in the High Court, Bombay and no provision has been made for the net liability of Rs.45,59,122/- and interest payable thereon, if any.

(b) The company has not provided for arrears of fixed cumulative dividend payable on 11% Cumulative, Preference Shares of Rs.20,000,000/- since its allotment on 31.03.1998. Total arrears of dividend Rs.35,750,000/- (Previous Year Rs.33,550,000/-).

3. As per AS-15 "Employee Benefits", the disclosure of employee benefits as defined in AS is given below

Defined Benefit Plan

Consequent to adoption of AS 15, the company has accounted the present value of gratuity obligation (non funded) based on actuarial valuation done by an independent valuer using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for compensated absences (non funded) recognized in the same manner as gratuity.

The following table sets out the status of gratuity plan and the amounts recognized in the company''s financial statement as at March 31, 2014.

4. Taxes on Income:-

4.1 No provision for the current tax has been made, as the Company does not expect any Income Tax liability.

4.2 Related parties have been identified by the Management and relied upon by the auditors.

5. Segment Reporting:-

5.1 Primary Segment Reporting (By Business Segments)

The Company has considered Business Segment as primary segment for disclosure purpose and comprises of the following:-

a) Financial Services and

b) Others (Pertains to Generation and Sale of Electricity from Windmill Operations)

5.2 Secondary Segment Reporting

The Company does not have a Secondary segment.

6. Obligation on Long Term, Non Cancellable Operating lease assets taken on lease:

Disclosure as per AS-19 is as follows:

a. The company has taken commercial premises on Non Cancellable Operating lease and lease rent of Rs.422,500/-(P.Y. Rs. 406,500/-) has been debited to statement of profit and loss.

c. There are no exception / restrictive covenants in the lease agreement.

the above amount is after deducting Rs. 8,000/- p.m. recoverable from group company as share in rent.

7. There are no dues outstanding to Micro, Small & Medium Enterprises. Sundry debtors and creditors are subject to confirmation.

8. In the opinion of the Board of Directors, current assets, loan and advances have value on realization in the ordinary course of business at least equal to the amount at which they are stand and all known liabilities are provided for.

9. Figures of the previous year have been regrouped and reclassified wherever necessary.

10. The amount of Balance Sheet and Statement of Profit and loss are rounded off the nearest rupee.

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Mar 31, 2013

1 Company Background

Mideast is a Public Limited finance company. Its equity shares are listed on Mumbai Stock Exchanges. It has more then 5000 Shares holders.

Mideast is registered with Securities Exchange Board of India (SEBI) as Merchant Bankers and Portfolio Managers (Applied for renewal of licence). It has managed public issues as Lead Managers and acted as IPO advisors. It has contributed significant amount in mobilising / marketing IPOs to NRIs abroad. Mideast is also engaged in Corporate advisory services, Loan Syndication, Debt Placement, arranging External Commercial Borrowings (ECB) etc.

2. Contingent Liability:-

(a) The Company has received Assessment Order from Income Tax Department for Ass. Year 1995-96 raising a demand of Rs.93,82,760/- on account of various disallowances and additions. The company has preferred an appeal against the said Assessment Order to the Appellate Authorities and no provision has been made for the net liability of Rs.45,59,122/-

(b) The 200,000, 11% Cumulative Redeemable Preference shares of Rs. 100/- each issued on 31.03.1998 has already fall due for redemption on 30.06.2001, however the company has not redeemed the same in the absence of profits and inadequate reserves. It is therefore assumed that dividend on the same is payable till the time of final redemption.

(c) The company has not provided for arrears of fixed cumulative dividend payable on 11% Cumulative, Preference Shares of Rs.20,000,000/- since its allotment on 31.03.1998. Total arrears of dividend Rs.33,550,000/- (Previous Year Rs.31,350,000/-).

3. Taxes on Income:-

3.1 No provision for the current tax has been made, as the Company does not expect any Income Tax liability.

3.2. In view of past brought forward unabsorbed depreciation and losses and lack of evidence of future taxable income, the Company has thought it prudent, not to recognize Deferred Tax Assets in its books.

4. Related Party Disclosures:-

The disclosure as required by AS-18 is as follows:

4.1 Related parties have been identified by the Management and relied upon by the auditors.

5. Segment Reporting: -

5.1 Primary Segment Reporting (By Business Segments)

The Company has considered Business Segment as primary segment for disclosure purpose and comprises of the following:-

a) Financial Services and

b) Others (Pertains to Generation and Sale of Electricity from Windmill Operations)

5.2 Secondary Segment Reporting

The Company does not have a Secondary segment.

6. Obligation on Long Term, Non Cancellable Operating lease assets taken on lease:

Disclosure as per AS-19 is as follows:

a. The company has taken commercial premises on Non Cancellable Operating lease and lease rent of Rs.406,500/-(P.Y. Rs. 636,000/-) has been debited to statement of profit and loss.

c. There are no exception / restrictive convenants in the lease agreement.

* the above amount is after deducting Rs. 8,000/- p.m. recoverable from group company as share in rent.

7. In accordance with AS-13 issued by ICAI, the long term investments are valued at cost of acquisition. In respect of investment the market value/book value is lower then the acquisition cost. The Board of Directors are of the opinion that no provision is necessary for the diminution in the value of investment.

8. The Company has not provided for the diminution in the value of investments held. The loss, to the extent of Rs. 11,721,250/- being the value of the investments will increase.

9. The company has granted loans in violation of Section 295 of the Companies Act 1956.

10. There are no dues outstanding to Micro, Small & Medium Enterprises. Sundry debtors and creditors are subject to confirmation.

11. In the opinion of the Board of Directors, current assets, loan and advances have value on realization in the ordinary course of business at least equal to the amount at which they are stand and all known liabilities are provided for.

12. Figures of the previous year have been regrouped and reclassified wherever necessary.

13. The amount of Balance Sheet and Statement of Profit and loss are rounded off the nearest rupee.

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Mar 31, 2010

1) Contingent Liability :-

The Company has received Assessment Order from Income Tax Department for Ass. Year 1995-96 raising a demand of Rs.93,82,760/- on account of various disallowances and additions. The company has preferred an appeal against the said Assessment Order to the Appellate Authorities and no provision has been made for the net liability of Rs.45,59,122/-

2) a. The 2,00,000, 11 % Cumulative Redeemable Preference shares of Rs. 100/- each issued on

31.03.1998 has already fall due for redemption on 30.06.2001, however the company has not redeemed the same in the absence of profits and inadequate reserves. It is therefore assumed that dividend on the same is payable till the time of final redemption.

b. The company has not provided for arrears of fixed cumulative dividend payable on 11% Cumulative, Preference Shares of Rs.2.00 Crores since its allotment on 31.03.1998. Total arrears of dividend Rs.2,69,50,000/- (Previous Year Rs.2,47,50,000/-)

5) Taxes on Income :-

A No provision for the current tax has been made, as the Company does not expect any Income

Tax liability. B. In view of past brought forward unabsorbed depreciation and losses and lack of evidence of

future taxable income, the Company has thought it prudent, not to recognize Deferred Tax

Assets in its books.

6) Related Party Disclosures:-

A) The names of the related parties are as under :

a) Supra Pacific Management Consultancy Limited

b) Montage Securities Limited

c) Mideast Properties Pvt Limited

d) Mideast Retail Pvt Limited

e) M/s. Kishor A. Shah

f) Molem Investments and Finance Pvt Limited

g) Mideast Healthcare Pvt Limited h) Mideast Windfarms Pvt Limited

B) Key Management Personnel:-

a) Kishor A. Shah - Chairman cum Managing Director

b) Jyoti K. Shah -- Director

8) In accordance with AS-13 issued by ICAI, the long term investments are valued at cost of acquisition. In respect of investment the market value/book value is lower then the acquisition cost. The Board of Directors are of the opinion that no provision is necessary for the diminution in the value of investment.

9) There are no dues outstanding to Micro, Small & Medium Enterprises. Sundry debtors and creditors are subject to confirmation.

10) The Company has not provided for the diminution in the value of investments held. The loss to the extend of Rs. 1,17,21,250/- being the value of the investments will increase.

11) In the opinion of the Board of Directors, current assets, loan and advances have value on realization in the ordinary course of business at least equal to the amount at which they are stand and all known liabilities are provided for.

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Jun 30, 2009

1) Contingent Liability :-

The Company has received Assessment Order from Income Tax Department for Ass. Year 1995-96 raising a demand of Rs.93,82,760/- on account of various disallowances and additions. The company has preferred an appeal against the said Assessment Order to the Appellate Authorities and no provision has been made for the net liability of Rs.45,59,122/-

2) a. The 2,00,000, 11 % Cumulative Redeemable Preference shares of Rs. 100/- each issued on 31.03.1998 has already fall due for redemption on 30.06.2001, however the company has not redeemed the same in the absence of profits and inadequate reserves. It is therefore assumed that dividend on the same is payable till the time of final redemption.

b. The company has not provided for arrears of fixed cumulative dividend payable on 11% Cumulative, Preference Shares of Rs.2.00 Crores since its allotment on 31.03.1998. Total arrears of dividend Rs.2,25,50,000/- (Previous Year Rs.2,03,50,000/-)

3) Taxes on Income :-

A No provision for the current tax has been made, as the Company does not expect any Income Tax liability.

B. In view of past brought forward unabsorbed depreciation and losses and lack of evidence of future taxable income, the Company has thought it prudent, not to recognize Deferred Tax Assets in its books.

4) Related Party Disclosures:-

A) The names of the related parties are as under;

a) Supra Pacific Management Consultancy Limited

b) Montage Securities Limited

c) Mideast Properties Pvt Limited

d) Mideast Retail Pvt Limited

e) M/s.KishorA. Shah

f) Molem Investments and Finance Pvt Limited

g) Mideast Healthcare Pvt Limited

h) Mideast Windfarms Pvt Limited

B) Key Management Personnel:-

a) Kishor A. Shah - Chairman cum Managing Director

b) Jyoti K. Shah - Director

D) Related parties have been identified by the Management and relied upon by the auditors.

5) Segment Reporting:-

A) Primary Segment Reporting (By Business Segments)

The Company has considered Business Segment as primary segment for disclosure purpose and comprises of the following :-

a) Financial Services and

b) Others (Pertains to Generation and Sale of Electricity from Windmill Operations)

B) Secondary Segment Reporting

The Company does not have a Secondary segment.

6) In accordance with AS-13 issued by ICAI, the long term investments are valued at cost of acquisition. In respect of investment the market value/book value is lower then the acquisition cost. The Board of Directors are of the opinion that no provision is necessary for the diminution in the value of investment.

7) There are no dues outstanding to Micro, Small & Medium Enterprises. Sundry debtors and creditors are subject to confirmation.

8) In the opinion of the Board of Directors, current assets, loan and advances have value on realization in the ordinary course of business at least equal to the amount at which they are stand and all known liabilities are provided for.

9) Figures of the previous year have been re-grouped/ re-classified to make them comparable with figures.

10) The amount in the Balance Sheet and Profit and loss Account are rounded off the nearest rupee.