Notes to Accounts of Panafic Industrials Ltd.

Mar 31, 2015

Rights, Preferences and restrictions attached to shares

The Company has only one class of shares referred to as equity shares having face value of Re. 1. Each holder of one equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holders of shares shall be entitled to receive remaining assets, if any, of the Company after distribution of all preferential amounts. The amount distributed will be in proportion to the number of equity shares held by the shareholders.

*Sub-Division of Equity Shares:

Pursuant to the recommendation of the Board of Directors of the company in its meeting held on 03 February, 2015 and followed by the approval of the members in the Extra Ordinary General Meeting held on 10th March, 2015, each equity share of Rs 10/- fully paid up was divided into 10 Equity Shares of Re. 1/- each fully paid up w.e.f the Record date fixed for the purpose of Sub-Division i.e 26th March, 2015. In accordance with the Accounting Standard 20 pertaining to Earnings Per Share, the Company has given effect to the above mentioned sub-division of shares in computing the Earning Per Share for the applicable previous year.

1.(c): Rights, preferences and restrictions attached to share capital

The Company has one class of equity shares having a par value of Re. 1 per share. Each holder of equity share is entitled to one vote per share. The paid-up equity shares of the Company shall rank pari-passu in all respects including dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. The Company has neither issued any bonus issue of shares nor any buy back of shares since incorporation and in the current year.

* The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Based on information received and available with the Company, there are no amounts payable to Micro and Small Enterprises as at 31 March, 2015 and 31 March 2014.

Note 1: Rent represents rental expense incurred in respect of office space leased by the Company under operating lease arrangements. These leases are cancellable arrangements that extend for a maximum period of 3 years from their respective dates of inception.

Note 2: The Company has created Provision on Standard Assets @ 0.25% on Total Standard Assets of Rs. 12,78,43,709/ - making it Rs. 3,02,609/- approx. Provision made during the Year is Rs. 1,30,656/- (i.e. Rs. 3,02,609 - 1,71,953)

Related Party Transactions as per Accounting Standard 18 for the Financial year 2014-15:- Disclosure details pertaining to related party transactions (as certified by the management of the Company) entered into during the year ending 31st March, 2015 in terms of Accounting Standards AS-18 "Related Party Disclosures" as issued by ICAI:-

1. Key management personnel

Mr. Rajeev Kumar Gupta - Managing Director (Appointed w.e.f. 17-07-2014) Mrs. Sarita Gupta - Director and CFO (Appointed w.e.f. 17-07-2014) Ms. Renu - Director (Appointed w.e.f. 30-09-2014)

Ashwani Kumar Salwan - Director (Resigned on 17-07-2014) Virender Gupta - Director (Resigned on 17-07-2014) Braj Mohan Singh - Director (Resigned on 17-07-2014)

2. Parties in which the Key Managerial Personnel/Director(s) of the Company is/are interested:

NIL

Note: Figures shown in brackets indicates previous year amount.

b) The company's primary business segment is reflected based on principal business activities carried on by the company. The company's primary business comprises of financing of loans and dealing in securities.

c) Segment revenue, results, assets and liabilities include amounts identifiable to each segment and amounts allocated on a reasonable basis.

4. Key management personnel

Mr. Rajeev Kumar Gupta - Managing Director (Appointed w.e.f. 17-07-2014) Mrs. Sarita Gupta - Director and CFO (Appointed w.e.f. 17-07-2014) Ms. Renu - Director (Appointed w.e.f. 30-09-2014)

Ashwani Kumar Salwan - Director (Resigned on 17-07-2014) Virender Gupta - Director (Resigned on 17-07-2014) Braj Mohan Singh - Director (Resigned on 17-07-2014) after transfer to Reserve Fund u/s 45(IC) of RBI Act, 1934

Notes:

1 The above Cash Flow Statement has been prepared under the indirect method set out in AS-3 on 'Cash Flow Statement' as notified under Companies (Accounting Standard) Rules, 2006.

2 Include both long-term and short-term assets/ liabilities.

3 Fixed deposits have been included in the operating activities, since it is directly attributable to the primary revenue generating operations of the Company

4 Previous year figures have been regrouped/ reclassified wherever necessary to conform to the current year classification.

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Mar 31, 2014

1. Related party disclosure

In accordance with the requirements of Accounting Standards (AS)-18 on Related Party Disclosures, the name of the related parties where control exists and /or with whom transactions have been taken place during the year and descriptions of relationships, as identified and certified by the management are:

a) List of the related parties:

(i) Key management personnel

Sanjeev Kumar - Director (appointed on 09th July 2013) Ankur Sharma - Director (appointed on 09th July 2013) Virender Gupta - Director Ashwani Kumar Salwan - Director

(ii) As informed by the management, there was no related party transactions made during the year.

2. Other additional information pursuant to general instruction for preparation of Statement of Profit & Loss of part II of Schedule VI of the Companies Act, 1956 are not given since these are not applicable.

3. These notes to accounts form an integral part of accounts and have been duly authenticated.

4. Previous year figures have been regrouped wherever necessary to conform to the classifications adopted in these accounts. Figures have been rounded off to the nearest rupee.

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Mar 31, 2012

1. Cash Flow Statement:

a) The Statement Has been prepared under indirect method except in case of dividends, sale/purchase of investments and taxes which have been considered on the basis of actual movement of case, with corresponding adjustment in assets and liabilities as set out in the Accounting Standard- 3 issued by ICAI.

b) Cash and cash equivalents represent cash and bank balances only.

2. Segment Reporting

If The Companies core activity is to investment, sale/purchases of Shares. This is the only business segment as per Accounting Standard-17 issued by the Institute of Chartered Accountants of India.

3. Contingent Liabilities

As certified by the management there is no Contingent liability as on 31/03/2012.

4. Related Party Disclosure:

In accordance with the requirements of Accounting Standards (AS) - 18 on Related Party Disclosures, the names of the related parties where control exists-and/or with whom transactions have taken place during the year and descriptions/relationships, as identified and certified by the management, are:

I. Key Management Personnel

- Mr. Virender Gupta (Director)

- Mr. Ashwani Kumar Salwan (Director)

- Mr. Braj Mohan Singh (Additional Director)

5. Due to Small Scale Undertakings exceeding Rs. 1.00 lac overdue for more than 30 days- Nil

6. The additional Information pursuant to revised Schedule VI to the Companies Act, 1956 are either Nil or Not Applicable.

7. The financial statements for the year ended 31st March, 2011 were prepared as per then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared in compliance with the Revised Schedule VI. Accordingly, the previous year figures have also been reclassified/regrouped to conform to current year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of the financial statements.

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Mar 31, 2011

1.Cash Flow Statement:

a) The Statement Has been prepared under indirect method except in case of dividends, sale/purchase of investments and taxes which have been considered on the basis of actual movement of case, with corresponding adjustment in assets and liabilities as set out in the Accounting Standard- 3 issued by ICAI.

b) Cash and cash equivalents represent cash and bank balances only.

2. Segment Reporting

The Companies core activity is to investment, sale/purchases of Shares. This is the only business segment as per Accounting Standard-17 issued by the Institute of

Chartered Accountants of India.

3. Contingent Liabilities

As certified by the management there is no Contingent liability as on 31/03/2011

4. Related Party Disclosure:

As per AS-18 issued by the ICAI Management identified that no Related Party Transaction made during the Year.

5. Previous years' figures have been regrouped, rearranged and recasted wherever considered necessary to make them comparable with the current year's figures.

6. In the opinion of the Board of Directors and to the best of their knowledge and belief the realizable value of Current Assets, Loans and Advances in ordinary course of business is not less than the value stated in the Balance Sheet.