NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th June, 2014

1 SIGNIFICANT ACCOUNTING POLICIES:

a Basis of Preparation of Financial Statements

The accounts have been brpared on a going concern basis under the historical cost convention, according to the accrual system of accounting in accordance with the generally accepted accounting principles, provisions of Companies Act 2013 and Accounting Standards notified u/s 133 of the companies Act 2013, read with rule 7 of the companies (Accounts) rules, 2014 till the standards of accounting or any addendum thereto are brscribed by central government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply, materially comply with the mandatory accounting statements and standards issued by the Institute of Chartered Accountants of India and the relevant brsentational requirements of the Companies Act, 1956.

b Use of Estimates

The brparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

Difference between the actual results and estimates are recognised in the period in which the result are known / materialised.

c Revenue Recognition

Income is being accounted for on accrual basis

d Fixed Assets and Debrciation

i) Fixed Assets are stated at cost, including freight, installation, duties and taxes, finance charges and other incidental expenses incurred during construction or installation to bring the assets to their state of intended use.

ii) Debrciation on Tangible Assets is provided on the Straight Line Method by considering the revised useful life of the assets in the manner brscribed under schedule II to the Companies Act, 2013.

ii) Intangible aseets are amortised over their respective individual estimated useful lifes on straight line method.

e Impairment of Assets

Impairment loss is provided; if any, to the extent, the carrying amount of assets exceed their recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use. Value in use is the brsent value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exist or have decreased. Such reversals are recognised as an increase in carrying amount of assets to the extent that it does not exceed the carrying amounts that would been determined (net of amortisation or debrciation) had no impairment loss been recognised in brvious years.

f Valuation of Investment

Investments are valued at acquisition cost Provision is made for diminution in the value of investment which is perceived to be of permanent nature.

g Valuation of Stock

Stocks of quoted shares / debentures and other securities are valued at cost or market price whichever is less, by comparing each script with its market price. Market price of each script is determined on the basis of the closing price of the scrip brvailing at the principal stock exchange where the same is traded.Stock of Unquoted shares & debentures are valued at cost.

h Method of Accounting

Mercantile method of accounting is employed.

i Taxation

i) Provision for Income Tax for the current period is made if applicable on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

ii) Deferred Tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

j Gratuity is being provided on cash basis.

k Foreign Currency Transaction

i) Transactions denominated in foreign currencies are recorded at the exchange rates brvailing at the time of transaction.

ii) Monetary items denominated in foreign currencies at the year-end are translated at the year end rate, the resultant gain or loss will be recognized in the statement of profit and loss account.

ii) Any gain or loss arising on account of exchange difference on settlement of transaction is recognized in the statement of profit and loss account

l Provision and contingencies

The company creates a provision when there exists a brsent obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not require an outflow of resources, when there is a possible obligation or a brsent obligation in respect of which likelihood of outflow of resources is remote, no provison or disclosure is made.

m Research and Development

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalised and debrciation is provided on such assets as applicable.

n Earnings per share

The Basic earning per share and diluted earning per share have been computed in accordance with Accounting Standard (AS-20) on, “Earnings Per Share” and is also shown in the Statement of Profit and Loss.

2 Segment Reporting

As per the management all fees are received from financial services and capital market. Therefore in accordance with accounting standard 17 on segment reporting, financial services is the only reportable business segment and cannot be segregated. In the circumstances segment information required by AS 17 of the Institute of Chartered Accountants of India, cannot be furnished.

3 DEFERRED TAX

The management has not provided / accounted for deferred tax liability / assets in terms of acc outstanding standard (A.S. – 22) on ‘Accounting for Taxes on Income’ issued by the Institute of Chartered Accountants of India as the same is not expected to be realized in the foreseeable future.

4  During the year, pursuant to the provisions of Schedule II to the companies Act, 2013 with effect from 1st April 2014, the Company has revised the estimated useful life of the Assets as mentioned in Note no 1(d) (ii & iii). As a result:- Debrciation expense for the year ended is lower by Rs. 7,33,400/-

5 In the opinion of the Board of Directors, all assets other than fixed assets have a value on realization in the ordinary course of Business at least equal to the amount at which they are stated unless specified otherwise.

6 Extraordinary items for the current year is Rs.1,63,97,052, includes amount paid for claim and demages.

7 No provision has been made for amount of Rs 3 Crore Paid against claim by a Investor as same is recoverable from issuer company.

8  Parties accounts whether is debit or credit are subject to reconciliation and confirmation.

41 Bank balances whether in debit or credit are subject to confirmation and reconciliation.

42 Previous year figures are regrouped and rearrange wherever necessary so as to make them comparable with those of the current

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Rajat Prasad (Managing Director)

Ritu Prasad  (Director)

Deepti Grover (Company Secretary)

AUDITOR'S REPORT

As per our Audit Report u/s44ab of Income Tax Act of Even Date Attached

For: Sandeep Ramesh Gupta& Co.

(Chartered Accountants)

(Membership No.90039)

SANDEEP GUPTA

(Partner)

PLACE: New Delhi

DATED: 28/Aug/2015