Sagar Systech Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2025

(n) Provisions, Contingent Liabilities and Contingent Assets

Contingent liabilities as defined in Ind AS-37 “Provisions, Contingent Liabilities and
Contingent Assets” are disclosed by way of notes to accounts. Provision is made if it
becomes probable that an outflow of future economic benefits will be required for an
item previously dealt with as a contingent liability.

(o) Cash Flow Statement

Cash flows are reported using the indirect method, whereby the net profit before tax is
adjusted for the effects of transactions of a non-cash nature and any deferrals or
accruals of the past or future cash receipts or payments. The cash flows from regular
revenue generating, investing & financing activities of the company are segregated.

Revenue from rendering of services is recognised when the performance of agreed
contractual task has been completed.

Revenue from operations is measured at the fair value of the consideration received or
receivable, taking into account contractually defined terms of payment and excluding
taxes or duties collected on behalf of the government.

(p) Interest Income

Interest Income from a Financial Assets is recognised using effective interest rate
method.

(q) Dividend Income

Dividend Income is recognised by the company on actual receipt basis.

(r) Financial Instruments
(i) Financial Assets

A. Initial Recognition and Measurement

All Financial Assets are initially recognized at fair value. Transaction costs that are
directly attributable to the acquisition or issue of Financial Assets, which are not at
Fair Value Through Profit or Loss, are adjusted to the fair value on initial recognition.
Purchase and sale of Financial Assets are recognised using trade date accounting

B. Subsequent Measurement

a) Financial Assets measured at Amortised Cost (AC)

A Financial Asset is measured at Amortised Cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the Financial Asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.

b) Financial Assets measured at Fair Value Through Other Comprehensive
Income(FVTOCI)

A Financial Asset is measured at FVTOCI if it is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling Financial
Assets and the Contractual terms of the Financial Asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount
outstanding.

c) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)
A Financial Asset which is not classified in any of the above categories are measured at
FVTPL.

C. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised
in Statement of Profit and Loss, except for those equity investments for which the
Company has elected to present the value changes in ''Other Comprehensive Income’.

ii) Financial Liabilities

A. Initial Recognition and Measurement

All Financial Liabilities are recognized at fair value and in case of borrowings, net of
directly attributable cost. Fees of recurring nature are directly recognised in the
Statement of Profit and Loss as finance cost.

B. Subsequent Measurement

Financial Liabilities are carried at amortized cost using the effective interest method.
For trade and other payables maturing within one year from the balance sheet date,
the carrying amounts approximate fair value due to the short maturity of these
instruments.

iii) Derecognition of Financial Instruments

The Company derecognizes a Financial Asset when the contractual rights to the cash
flows from the Financial Asset expire or it transfers the Financial Asset and the
transfer qualifies for derecognition under Ind AS 109. A Financial liability (or a part of
a Financial liability) is derecognized from the Company’s Balance Sheet when the
obligation specified in the contract is discharged or cancelled or expires.

iv) Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in
the balance sheet when, and only when, the Company has a legally enforceable right to
set off the amount and it intends, either to settle them on a net basis or to realise the
asset and settle the liability simultaneously.

(s) Critical Accounting Judgments And Key Sources Of Estimation Uncertainty

The preparation of the Company’s Financial Statements requires management to make
judgment, estimates and assumptions that affect the reported amount of revenue,
expenses, assets and liabilities and the accompanying disclosures. Uncertainty about
these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in next financial
years.

(t) Depreciation / Amortisation and useful lives of Property Plant and
Equipment / Intangible Assets

Property, Plant and Equipment / Intangible Assets are depreciated / amortised over
their estimated useful lives, after taking into account estimated residual value.
Management reviews the estimated useful lives and residual values of the assets
annually in order to determine the amount of depreciation / amortisation to be
recorded during any reporting period. The useful lives and residual values are based
on the Company’s historical experience with similar assets and take into account
anticipated technological changes. The depreciation / amortisation for future periods
is revised if there are significant changes from previous estimates.

(u) Recoverability of Trade Receivables

Judgments are required in assessing the recoverability of overdue trade receivables
and determining whether a provision against those receivables is required. Factors
considered include the credit rating of the counterparty, the amount and timing of
anticipated future payments and any possible actions that can be taken to mitigate the
risk of non-payment.

(v) Provisions

Provisions and liabilities are recognized in the period when it becomes probable that
there will be a future outflow of funds resulting from past operations or events and the
amount of cash outflow can be reliably estimated. The timing of recognition and
quantification of the liability requires the application of judgment to existing facts and
circumstances, which can be subject to change. The carrying amounts of provisions
and liabilities are reviewed regularly and revised to take account of changing facts and
circumstances.

(w) Impairment of Non-Financial Assets

The Company assesses at each reporting date whether there is an indication that an
asset may be impaired. If any indication exists, the Company estimates the asset’s
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash
Generating Units (CGU’s) fair value less costs of disposal and its value in use. It is
determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or a groups of assets. Where the
carrying amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their
present value using pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions are taken into account, if no such
transactions can be identified, an appropriate valuation model is used.

(x) Impairment of Financial Assets

The impairment provisions for Financial Assets are based on assumptions about risk of
default and expected cash loss rates. The Company uses judgment in making these
assumptions and selecting the inputs to the impairment calculation, based on
Company’s past history, existing market conditions as well as forward looking
estimates at the end of each reporting period.

(y) Revenue Recognition

Selling price of a product includes an identifiable amount for subsequent servicing that
amount is deferred and recognised as revenue over the period during which the
service is performed. The amount deferred is that which will cover the expected costs
of the services under the agreement, together with a reasonable profit on those
services. Dividends are recognised on actual receipt basis

B Notes to Accounts

1 The notes referred to in the Balance Sheet and Statement of Profit and Loss Account
form an integral part of the accounts.

2 Current Assets Loans and Advances:

In the opinion of the management balances in Loans and Advances & Current Assets
have approximate value on realization of current assets in the ordinary course of
business would not be less than the amount at which they are stated in the Balance
sheet. According to the management provision for all the loans and liabilities are
adequate. Balances in Creditors, Loans, and advances and current assets are subject to
confirmation& reconciliation.

3 Related Party Disclosures as per Indian Accounting Standard - 24

The Company has deployed all its funds in financial assets. All other activities of the
Company revolve around this activity, and as such in the opinion of the management,
there are no separate reportable segments as per Ind AS - 108- “Operating Segments”
Issued by MCA.

10 The Company has a process whereby periodically all long term contracts are assessed for
material foreseeable losses. At the year end, the Company has reviewed and ensured that
adequate provision as required under any law / accounting standards for material
foreseeable losses, including derivatives, on such long term contracts has been made in the
books of account.

11 The Company has reviewed its pending litigations and proceedings and has adequately
provided for where Provisions are required and disclosed the contingent liabilities where
applicable, in its financial statements. The Company does not expect the outcome of these
proceedings to have a materially adverse effect on its financial results.

12 Prior Period Comparatives:

The Figures of the previous year are regrouped, rearranged and reclassified wherever
necessary to correspond with those of current year.

13 Management''s Representation on key aspects of Auditors'' Report

a. The management represents and confirms that, to the best of it''s knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other person(s) or entity(ies), including foreign
entities (“Intermediaries”), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries;

b. The management represents and confirms that, to the best of it''s knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been received by the
company from any person(s) or entity(ies), including foreign entities (“Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
security or the like on behalf of the Ultimate Beneficiaries;

14 Additional Disclosures and Ratio Analysis

The additional disclosures pursuant to Schedule III to the Companies Act, 2013 is given as
Annexure 1 and Ratio Analysis is given as Annexure 2 to these Notes.

15 Other Information

The additional information pursuant to paragraph 3, 4, 4A, 4C, and 4D of Part II of
Schedule III to the Companies Act, 2013 is not applicable.

As per our report of even date

For Shah Shah & Shah For and On Behalf of the Board of

Chartered Accountants Sagar Systech Limited

(Mehul Shah) Meena Babu Mukesh Babu

Partner Managing Director Director

FRN: 116457W DIN:00799732 DIN: 00224300

M. No.: 049361
UDIN: 25049361BMKOTI6445

Place : Mumbai Kalpesh Damor Prachi Sahu

Date: 30-04-2025 Chief Financial Officer Company Secretary

Place : Mumbai ACS:72876

Date: 30/04/2025

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Mar 31, 2024

(i) Provisions

Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation."

If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is
recognised as a finance cost.

(j) Employee Benefits Expense
Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in
exchange for the services rendered by employees are recognised as an expense during
the period when the employees render the services.

Post-Employment Benefits

Defined Contribution Plans

The Company recognizes contribution payable to the provident fund scheme as an
expense, when an employee renders the related service. If the contribution payable to
the scheme for service received before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is recognized as a liability after deducting
the contribution already paid. If the contribution already paid exceeds the contribution
due for services received before the balance sheet date, then excess are recognized as an
asset to the extent that the pre-payment will lead to, for example, a reduction in future
payment or a cash refund.

Defined Benefit Plans

The Company pays gratuity to the employees who have completed five years of service
with the Company at the time of resignation/superannuation. The gratuity is paid @15
days salary for every completed year of service as per the Payment of Gratuity Act 1972."

The gratuity liability amount is contributed to the approved gratuity fund formed
exclusively for gratuity payment to the employees. The gratuity fund has been approved
by respective Income Tax authorities.

The liability in respect of gratuity and other post-employment benefits is calculated
using the Projected Unit Credit Method and spread over the period during which the
benefit is expected to be derived from employees'' services

Re-measurement of Defined Benefit Plans in respect of post-employment are charged to
the Other Comprehensive Income.

Employee Separation Costs

Compensation to employees who have opted for retirement under the voluntary
retirement scheme of the Company is payable in the year of exercise of option by the
employee. The Company recognises the employee separation cost when the scheme is
announced and the Company is demonstrably committed to it.

(k) Tax Expenses

The tax expense for the period comprises of current tax and deferred income tax. Tax is
recognised in Statement of Profit and Loss, except to the extent that it relates to items
recognised in the Other Comprehensive Income or in equity. In which case, the tax is also
recognised in Other Comprehensive Income or Equity.

(i) Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered
from or paid to the Income Tax authorities, based on tax rates and laws that are enacted
at the Balance sheet date.

(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of
assets and liabilities in the Financial Statements and the corresponding tax bases used in
the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to
apply in the period in which the liability is settled or the asset realised, based on tax rates
(and tax laws) that have been enacted or substantively enacted by the end of the
reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed
at the end of each reporting period.

(l) Foreign Currencies 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 capitalized as cost of assets. Additionally, exchange gains or losses on foreign
currency borrowings taken prior to April 1, 2016 which are related to the acquisition or
construction of qualifying assets are adjusted in the carrying cost of such 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 non¬
monetary 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

(m) Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with Ind AS-33
“Earnings Per Share.” Basic earnings per share is calculated by dividing profit or loss
attributable to ordinary equity holders of the parent entity (the numerator) by the
weighted average number of ordinary shares outstanding (the denominator) during
the period. Diluted earnings per share is calculated after adjusting profit or loss
attributable to ordinary equity holders, and the weighted average number of shares
outstanding, for the effects of all dilutive potential ordinary shares.

(n) Provisions, Contingent Liabilities and Contingent Assets

Contingent liabilities as defined in Ind AS-37 “Provisions, Contingent Liabilities and
Contingent Assets” are disclosed by way of notes to accounts. Provision is made if it
becomes probable that an outflow of future economic benefits will be required for an
item previously dealt with as a contingent liability.

(o) Cash Flow Statement

Cash flows are reported using the indirect method, whereby the net profit before tax is
adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals
of the past or future cash receipts or payments. The cash flows from regular revenue
generating, investing & financing activities of the company are segregated.

Revenue from rendering of services is recognised when the performance of agreed
contractual task has been completed.

Revenue from operations is measured at the fair value of the consideration received or
receivable, taking into account contractually defined terms of payment and excluding
taxes or duties collected on behalf of the government.

(p) Interest Income

Interest Income from a Financial Assets is recognised using effective interest rate
method.

(q) Dividend Income

Dividend Income is recognised when the Company''s right to receive the amount has been
established.

(r) Financial Instruments
(i) Financial Assets

A. Initial Recognition and Measurement

All Financial Assets are initially recognized at fair value. Transaction costs that are
directly attributable to the acquisition or issue of Financial Assets, which are not at Fair
Value Through Profit or Loss, are adjusted to the fair value on initial recognition.
Purchase and sale of Financial Assets are recognised using trade date accounting.

B. Subsequent Measurement

a) Financial Assets measured at Amortised Cost (AC)

A Financial Asset is measured at Amortised Cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the Financial Asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

b) Financial Assets measured at Fair Value Through Other Comprehensive Income
(FVTOCI)

A Financial Asset is measured at FVTOCI if it is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling Financial

Assets and the Contractual terms of the Financial Asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount
outstanding.

c) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)

A Financial Asset which is not classified in any of the above categories are measured at
FVTPL.

C. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in
Statement of Profit and Loss, except for those equity investments for which the Company
has elected to present the value changes in ''Other Comprehensive Income''.

ii) Financial Liabilities

A. Initial Recognition and Measurement

All Financial Liabilities are recognized at fair value and in case of borrowings, net of
directly attributable cost. Fees of recurring nature are directly recognised in the
Statement of Profit and Loss as finance cost.

B. Subsequent Measurement

Financial Liabilities are carried at amortized cost using the effective interest method.

For trade and other payables maturing within one year from the balance sheet date, the
carrying amounts approximate fair value due to the short maturity of these instruments.

iii) Derecognition of Financial Instruments

The Company derecognizes a Financial Asset when the contractual rights to the cash
flows from the Financial Asset expire or it transfers the Financial Asset and the transfer
qualifies for derecognition under Ind AS 109. A Financial liability (or a part of a financial
liability) is derecognized from the Company''s Balance Sheet when the obligation
specified in the contract is discharged or cancelled or expires.

iv) Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in
the balance sheet when, and only when, the Company has a legally enforceable right to
set off the amount and it intends, either to settle them on a net basis or to realise the
asset and settle the liability simultaneously

(s) Critical Accounting Judgments And Key Sources Of Estimation Uncertainty

The preparation of the Company''s Financial Statements requires management to make
judgment, estimates and assumptions that affect the reported amount of revenue,
expenses, assets and liabilities and the accompanying disclosures. Uncertainty about
these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in next financial years.

(t) Depreciation / Amortisation and useful lives of Property Plant and Equipment /
Intangible Assets

Property, Plant and Equipment / Intangible Assets are depreciated / amortised over
their estimated useful lives, after taking into account estimated residual value.
Management reviews the estimated useful lives and residual values of the assets
annually in order to determine the amount of depreciation / amortisation to be recorded
during any reporting period. The useful lives and residual values are based on the
Company''s historical experience with similar assets and take into account anticipated
technological changes. The depreciation / amortisation for future periods is revised if
there are significant changes from previous estimates.

(u) Recoverability of Trade Receivables

Judgments are required in assessing the recoverability of overdue trade receivables and
determining whether a provision against those receivables is required. Factors
considered include the credit rating of the counterparty, the amount and timing of
anticipated future payments and any possible actions that can be taken to mitigate the
risk of non-payment.

(v) Provisions

Provisions and liabilities are recognized in the period when it becomes probable that
there will be a future outflow of funds resulting from past operations or events and the
amount of cash outflow can be reliably estimated. The timing of recognition and
quantification of the liability requires the application of judgment to existing facts and
circumstances, which can be subject to change. The carrying amounts of provisions and
liabilities are reviewed regularly and revised to take account of changing facts and
circumstances.

(w) Impairment of Non-Financial Assets

The Company assesses at each reporting date whether there is an indication that an asset
may be impaired. If any indication exists, the Company estimates the asset''s recoverable
amount. An asset''s recoverable amount is the higher of an asset''s or Cash Generating
Units (CGU''s) fair value less costs of disposal and its value in use. It is determined for an
individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or a group of assets. Where the carrying amount
of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and
is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present
value using pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset. In determining fair value less costs of
disposal, recent market transactions are taken into account, if no such transactions can
be identified, an appropriate valuation model is used.

(x) Impairment of Financial Assets

The impairment provisions for Financial Assets are based on assumptions about risk of
default and expected cash loss rates. The Company uses judgment in making these
assumptions and selecting the inputs to the impairment calculation, based on Company''s
past history, existing market conditions as well as forward looking estimates at the end
of each reporting period.

(y) REVENUE RECONGNITION:

Selling price of a product includes an identifiable amount for subsequent servicing that
amount is deferred and recognised as revenue over the period during which the service
is performed. The amount deferred is that which will cover the expected costs of the
services under the agreement, together with a reasonable profit on those services.
Dividends are recognised when the shareholder''s right to receive payment is established.

B NOTES TO ACCOUNTS

1 The notes referred to in the Balance Sheet and Statement of Profit and Loss Account form
an integral part of the accounts.

2 Current Assets Loans and Advances:

In the opinion of the management balances in Loans and Advances & Current Assets have
approximate value on realization of current assets in the ordinary course of business
would not be less than the amount at which they are stated in the Balance sheet.
According to the management provision for all the loans and liabilities are adequate.

11 The Company has a process whereby periodically all long term contracts are assessed for
material foreseeable losses. At the year end, the Company has reviewed and ensured that
adequate provision as required under any law / accounting standards for material
foreseeable losses, including derivatives, on such long term contracts has been made in
the books of account.

12 The Company has reviewed its pending litigations and proceedings and has adequately
provided for where Provisions are required and disclosed the contingent liabilities
where applicable, in its financial statements. The Company does not expect the outcome
of these proceedings to have a materially adverse effect on its financial results.

13 Prior Period Comparatives:

The Figures of the previous year are regrouped, rearranged and reclassified wherever
necessary to correspond with those of current year.

14 Management''s Representation on key aspects of Auditors'' Report

a. The management represents and confirms that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the company to or in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;

b. The management represents and confirms that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been received by the
company from any person(s) or entity(ies), including foreign entities (“Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the company
shall, whether, directly or indirectly, lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries; and security or the like on behalf of the Ultimate Beneficiaries;

15 Additional Disclosures and Ratio Analysis

The additional disclosures pursuant to Schedule III to the Companies Act, 2013 is given
as Annexure 1 and Ratio Analysis is given as Annexure 2 to these Notes.

16 Other Information

The additional information pursuant to paragraph 3, 4, 4A, 4C, and 4D of Part II of
Schedule III to the Companies Act, 2013 is not applicable.

For Shah Shah & Shah For and On Behalf of the Board of

Chartered Accountants Sagar Systech Limited

UDIN: 23049361BGUCXW2598

(Mehul Shah) Meena Babu Mukesh Babu

Partner Managing Director Director

FRN: 116457W DIN:00799732 DIN: 00224300

M. No.: 049361

Kalpesh Damor Tejal Chheda

Chief Financial Officer Company Secretary

ACS: 67698

Place : Mumbai Place : Mumbai

Date: 23/05/2024 Date: 23/05/2024

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Mar 31, 2014

1. No provision for taxation has been made, since there is no liability of Taxes.

2. Bank overdraft balance is subject to reconciliation and confirmation.

3. As none of the employee is employed in service hence no provision for gratuity is required to be made and hence the disclosure required under AS-15 are not applicable

4. The Schedules referred to in the Balance Sheet and Profit and Loss Account form an integral part of the accounts.

5. Current Assets Loans and Advances:

In the opinion of the management balances in Loans and Advances & Current Assets have approximate value on realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance sheet. According to the management provision for all the loans and liabilities are adequate. Balances in Creditors, Loans, and advances and current assets are subject to confirmation & reconciliation.

6. Foreign Currency Transactions:

There were no foreign exchange transactions during the year.

7. Prior Period Comparatives:

The Figures of the previous year are regrouped, rearranged and reclassified wherever necessary to correspond with those of current year.

8. The additional information pursuant to paragraph 3, 4, 4A, 4C, and 4D of Part II of ScheduleVI to the Companies Act, 1956 is not applicable.

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Mar 31, 2013

1. No provision for taxation has been made, since there is no liability of Taxes.

2. Bank overdraft balance is subject to reconciliation and confirmation.

3. As none of the employee is employed in service hence no provision for gratuity is required to be made and hence the disclosure required under AS-15 are not applicable

4. The Schedules referred to in the Balance Sheet and Profit and Loss Account form an integral part of the accounts.

5. Current Assets Loans and Advances:

In the opinion of the management balances in Loans and Advances & Current Assets have approximate value on realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance sheet. According to the management provision for all the loans and liabilities are adequate. Balances in Creditors, Loans, and advances and current assets are subject to confirmation & reconciliation.

6. Prior Period Comparatives

The Figures of the previous year are regrouped, rearranged and reclassified wherever necessary to correspond with those of current year.

7. The additional information pursuant to paragraph 3, 4, 4A, 4C, and 4D of Part II of Schedule I to the Companies Act, 1956 is not applicable.

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Mar 31, 2012

Note:-

1 There is no investment in Joint Venture, Subsidiary, Associate or Controlled Company than stated above.

2 All the Investment are Fully paid up.

3 Wherever Extent of the of the Holding is known, is known than shown separately

4 All the Investment are stated at cost.

5 Adjustment if any is accounted on Split of face value of shares and Bonus Shares received during the year.

The Company has accounted for taxes on income in accordance with AS-22 - Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India. Consequently, the net incremental deferred tax (liability) / asset is charged / credited to Profit and Loss Account. The year end position of taxes on income is as under:

1. No provision for taxation has been made, since there is no liability of Taxes.

2. Bank overdraft balance is subject to reconciliation and confirmation.

3. As none of the employee is employed in service hence no provision for gratuity is required to be made and hence the disclosure required under AS-15 are not applicable

4. The Schedules referred to in the Balance Sheet and Profit and Loss Account form an integral part of the accounts.

5. Current Assets Loans and Advances:

In the opinion of the management balances in Loans and Advances & Current Assets have approximate value on realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance sheet. According to the management provision for all the loans and liabilities are adequate. Balances in Creditors, Loans, and advances and current assets are subject to confirmation & reconciliation.

6. Foreign Currency Transactions:

There were no foreign exchange transactions during the year.

7. Prior Period Comparative The Figures of the previous year are regrouped, rearranged and reclassified wherever necessary to correspond with those of current year.

8. The additional information pursuant to paragraph 3, 4, 4A, 4C, and 4D of Part II of Schedule to the Companies Act, 1956 is not applicable

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Mar 31, 2011

1. No provision for taxation has been made, since there is no liability of Taxes.

2. Bank overdraft balance is subject to reconciliation and confirmation.

3. As none of the employee is employed in service hence no provision for gratuity is required to be made and hence the disclosure required under AS-15 are not applicable

4. The Schedules referred to in the Balance Sheet and Profit and Loss Account form an integral part of the accounts.

5. Current Assets Loans and Advances:

In the opinion of the management balances in Loans and Advances & Current Assets have approximate value on realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance sheet. According to the management provision for all the loans and liabilities are adequate. Balances in Creditors, Loans, and advances and current assets are subject to confirmation & reconciliation.

6. Related Party Disclosure in accordance with Accounting Standared -18:

Name of the Associate Company : 1. Mukesh Babu Securities Limited

2. Mukesh Babu Financial Services Limited

7. Auditor's Remuneration:

Auditor's remuneration in accordance with paragraph 4B of part II of Schedule VI to the Companies Act, 1956

8. Foreign Currency Transactions:

There were no foreign exchange transactions during the year.

9. Prior Period Comparatives;

The Figures of the previous year are regrouped, rearranged and reclassified wherever necessary to correspond with those of current year.

10. The additional information pursuant to paragraph 3, 4, 4A, 4C, and 4D of Part II of ScheduleVI to the Companies Act, 1956 is not applicable.

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Mar 31, 2010

1. No provision for taxation has been made in view of losses.

2. Bank overdraft balance is subject to reconciliation and confirmation.

3. As none of the employee has completed the minimum length of service as provided in the payment of Gratuity Act 1972, no provision for gratuity is required to be made and hence the disclosure required under AS-15 are not applicable

4. The Schedules referred to in the Balance Sheet and Profit and Loss Account form an integral part of the accounts.

5. Current Assets Loans and Advances;

In the opinion of the Directors balances in Loans and Advances & Current Assets have approximate value on realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance sheet according to the management provision for all the loans and liabilities adequate.

Balances in Creditors, Loans, and advances and current assets are subject to confirmation reconciliation.

6. Related Party Disclosure:

7. Auditors Remuneration:

Auditors remuneration in accordance with paragraph 4B of part II of Schedule VI to the Companies Act, 1956

8. Foreign Currency Transactions;

There were no foreign exchange transactions during the year.

9. Prior Period Comparatives;

The Figures of the previous year are regrouped, rearranged and reclassified wherever necessary to correspond with those of current year.

10. The additional information pursuant to paragraph 3, 4, 4A, 4C, and 4D of Part II of ScheduleVI to the Companies Act, 1956 is not applicable.

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Mar 31, 2009

1. No provision for taxation has been made in view of losses.

2. Contingent Liability:

Bank overdraft balance is subject to reconciliation and confirmation.

3. As none of the employee has completed the minimum length of service as provided in the payment of Gratuity Act 1972, no provision for gratuity is required to be made and hence the disclosure required under AS-15 are not applicable

4. The Schedules referred to in the Balance Sheet and Profit and Loss Account form an integral part of the accounts.

5. Current Assets Loans and Advances;

In the opinion of the Directors balances in Loans and Advances & Current Assets have approximate value on realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance sheet according to the management provision for all the loans and liabilities adequate.

Balances in Creditors, Loans, and advances and current assets are subject to confirmation reconciliation.

6. Foreign Currency Transactions;

There were no foreign exchange transactions during the year.

7. Prior Period Comparatives:

The Figures of the previous year are regrouped, rearranged and reclassified wherever necessary to correspond with those of current year.

8. The additional information pursuant to paragraph 3,4, 4A, 4C, and 4D of Part II of ScheduleVI to the Companies Act, 1956 is not applicable.

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Mar 31, 2008

1. Contingent Liabilities

Bank overdraft balance is subject to reconciliation and confirmation.

2. As none of the employee has completed the minimum length of service as provided in the payment of Gratuity Act 1972, no provision for gratuity is required to be made.

3. The Schedules referred to in the Balance Sheet and Profit and Loss Account form an integral part of the accounts.

4. The Figures of the previous year are regrouped, rearranged and reclassified wherever necessary to correspond with those of current year.

5. In the opinion of the directors current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of the business and provisions for all known liabilities are adequate and not in excess of the amounts reasonably necessary.]