Notes to Accounts of Trans India House Impex Ltd.

Mar 31, 2025

1. Bifurcation of Trade Payables has been determined by management and relied upon by the Auditors. The Auditor has not performed any procedure to determine whether the list is complete and accurate.

2. The Company is not able to identify micro, medium and small enterprises on the basis of information available with them.The Auditor has not performed any procedure to determine whether the list is complete and accurate.

26. Financial risk management objectives and policies

The companies activities expose it to a variety of financial risk: market risk, credit risk and liquidity risk. The company is focusing to foresee the unpredicatability of financial market and seeing to minimize potential adverse effects on its financial performance.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings and deposits.

Company is mainly effected by Interest rate risk.

-Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the borrowing.

Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss.The maximum exposure to the credit risk at the reporting date is primarily from loans alongwith interest thereon for the year ended 31st March, 2025 and 31st March, 2024 respectively.

Credit risk on cash and cash equivalents is limited as the company has current account with bank.

Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the receivables from export debtors.

Liquidity risk

The company''s principal sources of liquidity are cash and cash equivalents and investments in equity instruments.

The company believes that the working capital is sufficient to meet its current requirements. Accordingly no liqudity risk is perceived

As of March 31, 2025, the Company had a working capital of Rs.thousand 29,083.86 including cash and cash equivalents of Rs. thousand 21,346.31

As of March 31, 2024, the Company had a working capital of Rs. thousand 30,930.50 including cash and cash equivalents of Rs. thousand 21,489.45

27 Capital management

For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximise the shareholder value.

28 The company being listed on stock exchange, therefore, has complied with all the notified applicable Accounting Standards read with General Circular 15/2013 dated 13.09.2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

29 Previous year figures have been regrouped/re-classified wherever considered to make comparable with the current year figures.

30 All notes annexed to and form integral part of the Balance Sheet and Statement of Profit & Loss Account.

31 In the view of limited number of employees, provision of employee benefit has not been calculated on the basis of acturial valuation and provided for on accural basis.

32 There is no prior period item, which is considered material for the purpose of disclosure in accordance with the Ind AS-8 on "Accounting Policies, changes in accounting estimates and errors.

Explanation to Key Financial Ratios Current Ratio

Current Ratio indicates a Company''s overall liquidity position. It measures a Company''s ability to pay short-term obligations or those due within one year. It is calculated by dividing the current assets by current liabilities.

Debt Equity Ratio

Debt Equity ratio is used to evaluate a Company''s financial leverage. It is a measure of the degree to which a Company is financing its operations through debt versus wholly owned funds. It is calculated by dividing total debt by shareholder''s equity.

Return on Net Worth Ratio

Return on Net Worth is a measure of profitability of a Company expressed in percentage. It is calculated by dividing total comprehensive income by average shareholder''s equity.

Inventory Turnover Ratio

Inventory Turnover measures the efficiency with which a Company utilises or manages its inventory. It establishes the relationship between sales and average inventory held during the period. It is calculated by dividing turnover by average inventory.

Return on Capital Employed.

Return on Capital Employed indicates the ability of a Company''s management to generate returns for both the debt holders and the equity holders. It measures a Company''s profitability and the efficiency with which its capital is used. It is calculated by dividing profit before exceptional items, interest and tax by capital employed. Capital Employed = Tangible net worth Total debt Deferred tax liabilities.

Trade Receivable Turnover Ratio

Trade Receivable Turnover measures the efficiency at which the Company is managing the receivables. The ratio shows how well a Company uses and manages the credit it extends to customers and how quickly short term debt is collected or is paid. It is calculated by dividing turnover by average trade receivables.

Trade Payable Turnover Ratio

Trade payable turnover is the ratio of net credit purchases of a business to its average trade payable during the period. It measures short term liquidity of business since it shows how many times during a period, an amount equal to average trade payable is paid to suppliers by a business.

Net Capital Turnover ratio

Net Capital turnover, also known as asset turnover, is a ratio that compares a company''s net sales to its average total assets. It indicates how efficiently a company is utilizing its assets to generate revenue. A higher capital turnover ratio suggests that a company is generating more sales per unit of investment, indicating better operational efficiency.

Net Profit Ratio

The net profit ratio is equal to how much net profit is generated as a percentage of revenue. It is calculated by dividing net profit by turnover.

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Mar 31, 2024

ix Provisions & contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. The contingent liabilities, if any, are disclosed in the financial statements.

x Events occurring after the reporting period

Adjustments to assets and liablities are made for events occurring after the reporting period to provide additional information materially affecting the determination of the amounts of assets or liabilities relating to conditions existing at the reporting date.

xi Earnings per equity share

Basic earnings per equity share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.The Company did not have any potentially dilutive securities in any of the periods presented.

xii Cash flow statement

Cash flows are reported using indirect method, whereby profits for the period is adjusted for the effects of transactions of a noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

xiii Other income

Other income is comprised primarily of interest income, dividend income and income from liabilities no longer payable. Interest income is recognized using effective interest method. Dividend income is recognised when the right to receive payment is established.

xiv Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most advantageous market for the asset or liability

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

a) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

b) Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

c) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

At each reporting date, the Company analyses the movements in the values of assets and liabilities which are required to be remeasured or re-assessed as per the Company''s accounting policies. For this analysis, the Company verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

xv Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use.

xvi Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation (other than land) and impairment loss, if any. Cost includes expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is provided for property,

plant and equipment so as to expense the cost over their estimated useful lives by using straight line method.

xvii Inventories

Inventories are valued at lower of cost and net realisable value. Finished goods include cost of conversion and other cost incurred for bringing the inventories to their present location and condition and T raded Goods includes purchase price and other cost incurred for bringing the inventories to their present location and condition.

xviii Foreign Currency Transactions and Translation

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing r at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs o currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which are i cost of assets. Non-monetary items that are

terms of historical cost in a foreign currency are recorded using the exchange rates at the date of the transaction. Ni items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair '' measured. The gain or loss arising on translation of non monetary items measured at fair value is treated in line wit of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain recognised in Other Comprehensive Income or Statement of Profit and Loss are also recognised in Other Comprehei Statement of Profit and Loss, respectively.

26. Financial risk management objectives and policies

The companies activities expose it to a variety of financial risk: market risk, credit risk and liquidity risk. The company is focusing to foresee the unpredicatability of financial market and seeing to minimize potential adverse effects on its financial performance.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings and deposits.

Company is mainly effected by Interest rate risk.

-Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the borrowing.

Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss.The maximum exposure to the credit risk at the reporting date is primarily from loans alongwith interest thereon for the year ended 31st March, 2024 and 31st March, 2023 respectively.

Credit risk on cash and cash equivalents is limited as the company has current account with bank.

Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the receivables from export debtors.

Liquidity risk

The company''s principal sources of liquidity are cash and cash equivalents and investments in equity instruments.

The company believes that the working capital is sufficient to meet its current requirements. Accordingly no liqudity risk is perceived

As of March 31, 2024, the Company had a working capital of Rs.thousand 30,930.50 including cash and cash equivalents of Rs. thousand 21,489.45

As of March 31, 2023, the Company had a working capital of Rs. thousand (-)32,395.69 including cash and cash equivalents of Rs. thousand 14,009.61

27 Capital management

For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximise the shareholder value.

28 The company being listed on stock exchange, therefore, has complied with all the notified applicable Accounting Standards read with General Circular 15/2013 dated 13.09.2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

29 Previous year figures have been regrouped/re-classified wherever considered to make comparable with the current year figures.

30 All notes annexed to and form integral part of the Balance Sheet and Statement of Profit & Loss Account.

31 In the view of limited number of employees, provision of employee benefit has not been calculated on the basis of acturial valuation and provided for on accural basis.

32 There is no prior period item, which is considered material for the purpose of disclosure in accordance with the Ind AS-8 on "Accounting Policies, changes in accounting estimates and errors.

Explanation to Key Financial Ratios Current Ratio

Current Ratio indicates a Company''s overall liquidity position. It measures a Company''s ability to pay short-term obligations or those due within one year. It is calculated by dividing the current assets by current liabilities.

Debt Eauitv Ratio

Debt Equity ratio is used to evaluate a Company''s financial leverage. It is a measure of the degree to which a Company is financing its operations through debt versus wholly owned funds. It is calculated by dividing total debt by shareholder''s equity.

Return on Net Worth Ratio

Return on Net Worth is a measure of profitability of a Company expressed in percentage. It is calculated by dividing total comprehensive income by average shareholder''s equity.

Inventory Turnover Ratio

Inventory Turnover measures the efficiency with which a Company utilises or manages its inventory. It establishes the relationship between sales and average inventory held during the period. It is calculated by dividing turnover by average inventory.

Return on Capital Employed.

Return on Capital Employed indicates the ability of a Company''s management to generate returns for both the debt holders and the equity holders. It measures a Company''s profitability and the efficiency with which its capital is used. It is calculated by dividing profit before exceptional items, interest and tax by capital employed. Capital Employed = Tangible net worth Total debt Deferred tax liabilities.

Trade Receivable Turnover Ratio

Trade Receivable Turnover measures the efficiency at which the Company is managing the receivables. The ratio shows how well a Company uses and manages the credit it extends to customers and how quickly short term debt is collected or is paid. It is calculated by dividing turnover by average trade receivables.

Trade Payable Turnover Ratio

Trade payable turnover is the ratio of net credit purchases of a business to its average trade payable during the period. It measures short term liquidity of business since it shows how many times during a period, an amount equal to average trade payable is paid to suppliers by a business.

Net Capital Turnover ratio

Net Capital turnover, also known as asset turnover, is a ratio that compares a company''s net sales to its average total assets. It indicates how efficiently a company is utilizing its assets to generate revenue. A higher capital turnover ratio suggests that a company is generating more sales per unit of investment, indicating better operational efficiency.

Net Profit Ratio

The net profit ratio is equal to how much net profit is generated as a percentage of revenue. It is calculated by dividing net profit by turnover.

As per our attached report of even date.

For and On Behalf of the Board of Directors

Manoj Acharya & Associates Chartered Accountants

Mayank Jolly Irfan Qureshi Mitesh Rajput

FRN: 114984W Whole Time Director Whole Time Director Director

DIN:09366175 DIN:09494589 DIN:06772154

SD/-

CA Mudit Singhal

Partner Manisha Rajput Ranjeet Pawar Mrugesh Vyas

M.NO.: 187823 CFO CEO Company Secretary

PAN : BENPR5275Q PAN: BCIPP0134R ACS 49190

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Mar 31, 2023

ix Provisions & contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. The contingent liabilities, if any, are disclosed in the financial statements.

x Events occurring after the reporting period

Adjustments to assets and liablities are made for events occurring after the reporting period to provide additional information materially affecting the determination of the amounts of assets or liabilities relating to conditions existing at the reporting date.

xi Earnings per equity share

Basic earnings per equity share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.The Company did not have any potentially dilutive securities in any of the periods presented.

xii Cash flow statement

Cash flows are reported using indirect method, whereby profits for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

xiii Other income

Other income is comprised primarily of interest income and income from liabilities no longer payable. Interest income is recognized using effective interest method.

^xiv Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most advantageous market for the asset or liability

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

a) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

b) Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

c) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

At each reporting date, the Company analyses the movements in the values of assets and liabilities which are required to be re-measured or reassessed as per the Company’s accounting policies. For this analysis, the Company verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

xv Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use.

xvi Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation (other than land) and impairment loss, if any. Cost includes expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided for property, plant and equipment so as to expense the cost over their estimated useful lives by using straight line method.

xvii Inventories

Inventories are valued at lower of cost and net realisable value. Finished goods include cost of conversion and other cost incurred for bringing

the inventories to their present location and condition and Traded Goods includes purchase price and other cost incurred for bringing the inventories to their present location and condition.

xviii Foreign Currency Transactions and Translation

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which are capitalised as cost of assets.

Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates at the

date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at

the date when the fair value was measured. The gain or loss arising on translation of nonmonetary items measured at fair value is

treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose

fair value gain or loss is recognised in Other Comprehensive Income or Statement of Profit and Loss are also recognised in Other Comprehensive

Income or Statement of Profit and Loss, respectively.

23. Financial risk management objectives and policies

The companies activities expose it to a variety of financial risk: market risk, credit risk, foreign currency risk and liquidity risk. The company is focusing to foresee the unpredicatability of financial market and seeing to minimize potential adverse effects on its financial performance.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings and deposits.

Company is mainly effected by Interest rate risk.

-Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the borrowing.

Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss.The maximum exposure to the credit risk at the reporting date is primarily from loans alongwith interest thereon for the year ended 31st March, 2023 and 31st March, 2022 respectively.

Credit risk on cash and cash equivalents is limited as the company has current account with bank.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the receivables from export debtors.

Liquidity risk

The company''s principal sources of liquidity are cash and cash equivalents and investments in equity instruments.

The company believes that the working capital is sufficient to meet its current requirements. Accordingly no liqudity risk is perceived

As of March 31, 2023, the Company had a working capital of Rs.thousand 1,94,678.13 including cash and cash equivalents of Rs.thousand 1,16,311.12

As of March 31, 2022, the Company had a working capital of Rs.thousand (-)2,935.85 including cash and cash equivalents of Rs.thousand 191.75.

The table below provides detail regarding the contractual maturities of significant financial liabilities as of March 31, 2023

24 Capital management

For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximise the shareholder value.

25 The company being listed on stock exchange, therefore, has complied with all the notified applicable Accounting Standards read with General Circular 15/2013 dated 13.09.2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

26 Previous year figures have been regrouped/re-classified wherever considered to make comparable with the current year figures.

27 All notes annexed to and form integral part of the Balance Sheet and Statement of Profit & Loss Account.

28 In the view of limited number of employees, provision of employee benefit has not been calculated on the basis of acturial valuation and provided for on accural basis.

29 There is no prior period item, which is considered material for the purpose of disclosure in accordance with the Ind AS-8 on “Accounting Policies, changes in accounting estimates and errors.

32 The Company has issued 1,86,26,000 Convertible Equity Warrants at face value of Rs. 10/- each. Against these warrants the company has received amount of Rs. 931.30 Lacs @ Rs. 5 each shares, as partial payment.

As per our attached report of even date For and on behalf of the Board of Directors

For Gupta Garg & Agrawal sd/- sd/- sd/-

Chartered Accountants

Mayank Jolly Irfan Qureshi Mitesh Rajput

^{FRN 505762C} Director Director ^Direct°^r

DIN: 09366175 DIN: 09494589 DIN: 06772154

sd/-

(AMIT KUMAR JAIN)

Partner sd/- sd/- sd/-

M. No. 509349 Manisha Rajput Bhavesh Dave Mrugesh Vyas

Place: Noida CFO CEO Company Secretary

^Date: OZO⁵.²⁰²³ PAN : BENPR5275Q PAN: AEWPD8260R ACS 49190

Compiled by: Dion Global Solutions Limited

GREEN INITIATIVE APPEAL TO THE SHAREHOLDERS

The Shareholders holding shares in demat form are requested to register their e-mail id with their Depository. Shareholders holding shares in physical form are requested to send their consent to our Registrar and Transfer Agent, M/s Mas Services Limited in the following format.

Date:_

Unit: TRANS INDIA HOUSE LIMITED (Formerly Known as IO System Limited)

M/s. Mas Services Limited

T-34, IInd Floor, Okhla Industrial Area, Phase-II,

New Delhi - 110 020 Phone No: 011-26387281/82 Fax No: 011-26387284 E-mail id: [email protected] Website: www.masserv.com

I / We_holding_shares of the Company in physical

form intend to receive all communications including notices, annual reports, through my/our email id given hereunder:

Folio No

E-mail id

Signature of the first holder

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Mar 31, 2014

1. Contingent liabilities & commitments

(1) Contingent Liabilities Figures as at Figures as at 31-03-2014 31-03-2013 Rs. Rs.

a) Claims against the company NIL NIL not acknowledged as debts

b) Guarantees NIL NIL

c) Other money for which NIL NIL company is contingently liable

(2) Commitments

a) Estimated amounts of contracts NIL NIL to be executed on capital account not provided for

b) Uncalled liability on partly paid shares NIL NIL

c) Other commitments NIL NIL

2 The company being listed on stock exchange, therefore, has complied with all the notified applicable Accounting Standards read with General Circular 15/2013 dated 13.09.2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

3 The revised schedule VI as notified under the Companies Act, 1956 continues to be applicable to the company for its financial statements for the year ending March 31, 2014. The schedule III notified under the Companies Act, 2013 would be applicable for the Financial Year beginning on or after 01.04.2014.

4 Deferred Taxes

As per Accounting Standard AS - 22 "Taxes on Income" the company has deferred tax assets on its carried forward losses and unabsorbed depreciation. At present there are no trading and manufacturing in the company on account of losses. In view of virtual uncertainty of future profits in immediate succeeding years, the Deferred Tax Assets/Liabilities (DTA/DTL) has not been recognised in the books of account.

5 Previous year figures have been regrouped/re-classified wherever considered to make comparable with the current year figures.

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Mar 31, 2013

Contingent liabilities & commitments

(1) Contingent Liabilities

a) Claims against the company not acknowledged as debts NIL NIL

b) Guarantees NIL NIL

c) Other money for which company is contingently liable NIL NIL

(2) Commitments

a) Estimated amounts of contracts to be executed on capital account NIL NIL not provided for

b) Uncalled liability on partly paid shares NIL NIL

c) Other commitments NIL NIL

* Representing interest allowed as per bank certificate on margin money FDRs'' encased during the year.

2. The Revised Schedule VI as notified under the Companies Act, 1956, continues to be applicable to the Company for its financial statements for the year ending March 31, 2013. The adoption of the revised Schedule VI requirements presentation has significantly modified the presentation and disclosures which have been complied with in these financial statements.

3 The company being listed on stock exchange, therefore, has complied with all the notified applicable Accounting Standards.

4 Deferred Taxes

As per accounting standard (AS 22), the company has deferred tax assets on its carried forward losses and unabsorbed depreciation. At present there are no trading and manufacturing activities in the company on account of losses. In view of virual uncertainty of future profits in immediate succeeding years, the Deferred Tax Assets / Liabilities (DTA/(DTL) has not been recognized in the books of account.

5. Previous year figures have been regrouped/re-classified wherever considered to make comparable with the current year figures.

6. All schedules annexed to and from integral part of the Balance Sheet and Profit & Loss Account.

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Mar 31, 2012

(a) The above information [from (a) to (d)] is 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 ownerships of shares.

*The above inventory carried in the financials does not have commercial sale value and therefore, a provision of Rs. 2,00,000/- has been made for obsolescence/diminution in value.

Contingent liabilities & commitments

(1) Contingent Liabilities

a) Claims aganinst the company not acknowledged as debts NIL NIL

b) Guarantees NIL NIL

c) Other money for which company is contingently liable NIL NIL

(2) Commitments

a) Estimated amounts of contracts to be executed on capital account NIL NIL not provided for

b) Uncalled liability on partly paid shares NIL NIL

c) Other commitments NIL NIL

3. The schedule VI as notified under the Companies Act, 1956 has become applicable to the company for its financial statements for the year ending March 31, 2012. The adoption of the revised schedule VI requirements presentation has significantly modified the presentation and disclosures which have been complied with in these financial statements. Previous year figures have been restated in accordance with current year requirements.

4. The company being listed on stock exchange, therefore, has complied with all the notified applicable Accounting Standards.

5. Deferred Taxes

As the commercial activities are yet to commence, therefore, the Deferred Tax Assets / Liabilities (DTA/(DTL) has not been recognized in the books of account in compliance of Accounting Standard (AS) -22.

6. Previous year figures have been regrouped/re-classified wherever considered to make comparable with the current year figures.

7. Value of Import on CIF Basis Nil

8. Earnings in Foreign Exchange Nil

9. Expenditure in Foreign Currency Nil

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Mar 31, 2010

1. BACKGROUND

The company had entered into a joint venture (JV) agreement with the General Binding Corporation (GBC), USA on 19th June, 1988 for manufacturing and selling office Automotion products. The JV was terminated with mutual consent between the parties on 31st March, 2002 and almost entire capital of the company is held by Spice Enfotainment Ltd.(formerly known as Spice Corp. Ltd.) except little shareholding with the public. The manufacturing activities had been discontinued since Feb., 2006 due to continued losses in the company. The company has also not done very well in its trading business as a result of which, there have been no business activities in the company during the financial year 2009-10

2. HOLDING COMPANY

The company continues to be subsidiary of Spice Enfotainment Ltd. (formerly known as Spice Corp. Ltd.)

3. SUBSIDIARY COMPANY

The company ceased to be holding company of Bharat IT Services Ltd. (Formerly Spice Net Ltd.) w.e.f. 12.05.2009

4. The Company is a non small and medium enterprises sized company as defined in the general instructions in respect of Accounting Standards notified under the Companys Act, 1956. Accordingly, all the applicable accounting standards have been complied with.

5. The Company has been carrying obsolete and damaged inventory for quite some time, which it could not dispose off due to non availability of suitable marketing personnel in the company and sluggish market conditions. At the instance of the Board, the inventories were got valued from registered valuer who had declared them as scrap and valued at Rs. 2.25 lacs. Accordingly, the carrying value has been taken at Rs. 2.25 lacs in the present financials.

6. During the year, the company has taxable losses after adjusting capital gains, therefore, no provision has been made on account of Income lax.

7. The Company owned Land and Building at Modipuram, Distt. Meerut, which had been sold to Bougainvillea Multiplex & entertainment Pvt. Ltd. (BMEC) in terms of MOU dated 04.09.2006 for Rs. 86 lacs. As per terms of MOU, the Company was under an obligation to BMEC for transfer of properties by executing requisite sale deed within a period of 90 days. Due to certain unavoidable reasons, the transfer deed of properties could not be executed. During the current year, BMEC has written to the company to refund its money of Rs. 86 lacs alongwith interest @8% p.a.. Thereafter.a Memorandum of Termination has been executed between the parties on 16.06.2009. The amount of Rs. 86 lacs alongwith interest @8% of Rs. 19.29 lacs has been refunded to BMEC. The same land & building has been sold for Rs. 110 lacs subsequently to a thifa party. The resultant profit has been duly accounted for in the books of account of the company.

8. DEFERRED INCOME TAXES

As per guidance note of The Institute of Chartered Accountants of India on Accounting Standard (AS) - 22, the Company at the prevailing income tax rates as on 31st March, 2010, has Deferred Tax Assets (DTA) of Rs. 155.78 Lacs on its carried forward accummulated business losses , unabsorbed depreciation, provision for bad and doubtful debts & advances and expenses deductible on payment basis. Similarly, the compamy has Deferred Tax Liability (DTL) of Rs.0.10/-lacs on account of timing difference of depreciation.

Based on the past performance of the Company over the years there is significant uncertainty on the realisability of the benefits of those deductible differences and consequently, the DTA and DTL have not been recognised in the books of account.

9. In the opinion of the Board of Directors, the current assets, loans and advances have a value on realisation in the ordinary course of business, atleast equal to the amount at which they are stated in the books of account.

10. The balances appearing in the books at the close of the financial year under the heads Sundry Debtors, Sundry Creditors ,Loans and Advances are subject to confirmation.

11. No provision has been made in the accounts against the liability in respect of future payment of gratuity to the employees as lone employee has not put in the qualifying period of service for entitlement to the said benefit under the Provisions of Payment of Gratuity Act, 1972.

12. The liability on account of Leave Encashment in respect of Idne employee has been duly provided for on the basis of leave accrued and accumulated to the each employee.

13. RELATED PARTY TRANSACTIONS

During the year, the Company entered into transactions with related parties. Those transactions along with related balances as at March 31 , 2010 and March 31, 2009 are given in the following table:

List of the related Parties (As certified by the management)

Name of the Related Party Relation

i) Spice Enfotainment Limited (Formerly Spice Corp. Ltd.) Holding Company

ii) Bharat IT Services Limited (formerly Spice Net Limited) ceased w.e.f 12.05.2009 Subsidiary company

iii) First Choice Enterprises P.Ltd. Common Direcor and Fellow Subsidiary of i) above.

The names of other associate companies have not been disclosed because of Nil transactions with them during the year.

14. SEGMENT REPORTING

Segment wise reporting as defined in Accounting Standard AS-17 is not applicable, since the entire operations of the company relates to one segment i.e. Office Automation Equipment.

15. CONTINGENT LIABILITIES

Contingent liabilities are not provided for and are disclosed by way of note.

(a) Claims against the Company not acknowledged as debts

- Excise matters - Rs. 39,87,122/- (2009 - Rs. 39,87,122/-)

- Sales Tax matters (including demands in respect of non-submission of statutory sales tax declaration forms) - Rs1,94,98,3777- (2009 - Rs. 2,03,20,094/-)

- Other cases against the company - Rs. 1,246,664/- (2009 - Rs. 1,246,664/-)

(b) Counter Guarantees issued Rs 6,82,700/- (2009 - Rs. 6,82,700/-).

(c) To income tax department for Rs. 4745000/- towards penalties imposed against which company is in appeal.

16. Previous years figures have been regrouped and/or reclassified wherever necessary to make their classification comparable with that of the current year.