Notes to Accounts of Sugal & Damani Share Brokers Ltd.

Mar 31, 2015

1. Secured on the hypothecation of Fixed Deposit with Bank and shares held by the Company.

2. There are no dues to Micro, small and Medium Enterprises as per the Information available with the Company.

Deferred Revenue expenses represents amt paid for Stock Exchange Card & Non Refundable Deposits with OTC, which is written off over a period of 5 years.

3. Defined Benefit Plan

Provision of Gratuity amounting to Rs 2.17 lakhs(PY Rs.4.95 Lakhs) was made on the basis of Actuarial Valuation Report dated 29.04.2015 Disclosure in respect of AS-15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2007:

4. Balances of loans and advances, sundry creditors, sundry debtors, deposits and other liabilities are as per the books and subject to confirmation.

5. The Company is engaged primarily in the business of Stock Broking and accordingly there are no separate reportable segments as per Accounting Standard (AS17) "Segment Reporting".

6. Disclosure in respect of Related Parties pursuant to AS-18

(a) List of Relates Parties

Related parties with whom transactions are taken place during the year.

(i) Associates

Sugal Commodity Brokers Private Limited

(ii) Key Managerial personnel and their Entities

(a) Mr. S. Vinodh Kumar Jain - Executive Director

(b) Mr. Mahesh Chandak - Executive Director

(iii) Relatives of Key Managerial Personnel and their Entities

(a) Siyat Holdings Private Limited

(b) N. Sugalchand Jain

(c) S. Prasan Chand Jain

(d) Bhagwandas Chandak

(e) Dwarakadas Chandak

(f) Savitha Chandak

(g) Radhika Maheshwari

(h) Meena Kumari

(i) Krishna Maheshwari

(j) Kishori Maheshwari - (minor) daughter of Mr. Mahesh Chandak

(k) Ardhaya Maheshwari - (minor) daughter of Mr. Mahesh Chandak

(l) Nakthamal Bhagwandas Chandak HUF

(m) Bhagwandas Mahesh Kumar Chandak HUF

(n) Prithvi Finsec Limited

(o) Prithvi Softech Limited

7. Contingent Liability / Commitments

A) A sum of Rs. 55,62,310/- has been demanded towards Income Tax liability for the A.Y 2010 - 2011 and the same has not been accepted by the company and gone on appeal and the matter is pending before the Commissioner of Income Tax Chennai. Since the company hopes that the appeal will be in favour of company, hence no provision has been made in the accounts.

B) A sum of Rs. 4,24,460/- has been demanded towards Income Tax liability for the A.Y 2012 - 2013 and the same has not been accepted by the company and gone on appeal and the matter is pending before the Commissioner of Income Tax Chennai. Since the company hopes that the appeal will be in favour of company, hence no provision has been made in the accounts.

C) Guarantees given on behalf of the company by banks to NSE, BSE amounting to Rs.6.85 Crores Outstanding as on 31.03.2015 is secured on the Fixed Deposits with banks, Investment in Shares belonging to the company and Investment in Shares belonging to the directors and their relatives.

---

Mar 31, 2012

Previous Year figures have been regrouped/reclassified, wherever necessary to confirm to the current year presentation.

1. Change Of Name

The Company has changed its name to SUGAL & DAMANI SHARE BROKERS LIMITED, from its earlier name SUGAL & DAMANI FINLEASE LIMITED with effect from 23.12.2008 after obtaining approval from Registrar of Companies, Tamilnadu.

2. Balances of loans and advances, sundry creditors, sundry debtors, deposits and other liabilities are as per the books and subject to confirmation.

3. The Company is engaged primarily in the business of Stock Broking and accordingly there are no separate reportable segments as per Accounting Standard (AS 17) "Segment Reporting.

4. RBI-NBFC Status

The Company has surrendered the certificate of Registration granted by RBI and according to the company the RBI directions applicable to NBFCs are no longer applicable to the company. The company has received orders for cancellation of the certificate from RBI on 28.07.2011.

5. Disclosure of Interest of Related Parties pursuant to As-18 a) Name of the Related Parties

i) Key Management Personnel:

Shri. S.Vinodh Kumar Jain Shri..Mahesh Chandak.

ii) Enterprises in Which Key Managerial Personnel have Significant influence:

M/s . Sugal Commodity Brokers P. Ltd.,

6. Contingent Liability/Commitments

A). As required by AS29 for provision towards contingent liability a sum of Rs. 2, 05,383/- was provided during the Financial Year 1998-99 against the interest tax liability for the Asst. Year 1995-96 as per the Asst, order of ACIT dated 31.03.1999 and a sum of Rs.62, 474/- was provided during the financial year 1999-2000 against the Interest tax liability for the Asst. Year 1994-95 as per the Asst, order of ACIT dated 02.02.1998. The company has preferred an appeal against the orders. Hence the tax liability is not paid. However the same is taken as provision for contingent liability as required by AS29.

B) Guarantees given on behalf of the company by banks to NSE and BSE amounting to Rs.3.35 Crores Outstanding as on 31.03.2012 is secured on the Fixed Deposits with banks, Investment in Shares belonging to the company and also on the Immovable property belonging to directors and their relatives.

---

Mar 31, 2010

1. Change Of Name

The Company has changed its name to SUGAL & DAMANI SHARE BROKERS LIMITED, from its earlier name SUGAL & DAMANI FINLEASE LIMITED with effect from 23.12.2008 after ob- taining approval from Registrar of Companies Tamilnadu.

2. Balances of loans and advances, sundry creditors, sundry debtors, deposits and other liabili- ties are as per the books and subject to confirmation.

3. The Company is engaged primarily in the business of Stock Broking and accordingly there are no separate reportable segments as per Accounting Standard (AS17) "Segment Reporting".

4. The Company has received Rs 320241/- {Rs.362635/-) as dividend from various listed compa- nies on shares held in Cemat Account, which include dividend on investment made by and shares held as security for loans, of which Rs. Nil {Nil) being the dividend on shares held as security against loan is transferred to concerned loan parties.

5. Previous year figures are and rearranged wherever necessary to match the current year classification.

6. Disclosure of Micro, Sma I and Medium Enterprises

The Management has initiated the process of identifying enterprises which have provided goods and services to the company and which qualify under the definition of medium and small enter prises, as defined under Micro, Small and Medium Enterprises Development Act. 2006. Ac- cordingly, the disclosure in respect of the amount payable to such medium and small enter- prises As at 31st March 2010 has been made in the financial statements to the extent of the information available with the company.

7. RBI-NBFC Status

The Company has surrencered the certificate of Registration granted by RBI and according to the company the RBI directions applicable to NBFCs are no longer applicable to the company. The company is awaiting orders for cancellation of the certificate from RBI in this regard. Since Company had already surrendered the Certificate and there are no NBFC activities during the year, special reserve as required under RBI directions applicable to NBFCs company has not been created.

8. Disclosure of Interest of Related Parties pursuant to As-18 a) Name of the Related Parties i) Key Management Personnel: Shri. SYinodh Kumar Jain (WTD) ShrLMahesh B Chandak. (WTD) ii) Enterprises in Which Key Managerial Personnel have Significant influence: M/s . Sugai Commodity Brokers P. Ltd..

9. Contingent Liability

A). As required by AS29 for provision towards contingent liability a sum of Rs. 2,05,383/- was provided during the Financial Year 1998-99 against the interest tax liability for the Asst. Year 1995- 96 as per the Asst. order of ACIT dated 31.03.1999 and a sum of Rs 62,474/ - was provided during the financial year 1999-2000 against the Interest tax liability for the Asst. Year 1994-95 as per the Asst order of ACIT dated 02.02.1998. The company has preferred an appeal against the orders. Hence the tax liability is not paid. However the same is taken as provision for contingent liability as required by AS29

B) Guarantees given on behalf of the company by banks to NSE, BSE amounting to Rs. 8.50 Crores Outstanding as on 31.03.2010 is secured on the Fixed Deposits with banks. In- vestment in Shares belonging to the company and also on the Immovable property belong- ing to directors and their relatives.

10. Deferred Revenue expenses represents amt paid for Stock Exchange Card and the amount transfer during the year represents Non Refundaple Deposits with OTC, which is written off over a period of 5 years.