1. Significant Accounting Policies

i) Basis of Accounting.

The financial statement is brpared on mercantile basis under the historical cost convention in accordance with the generally accepted accounting principles in India, Accounting Standards notified under Section 133 of the Companies Act, 2013 and the other relevant provisions of the Companies Act, 2013.

ii) Revenue Recognition

(a) Sale of securities is accounted on receipt of broker's contract irrespective of the actual deliveries being effected or not and is shown net of brokerage/service taxes charged by the broker.

(b) Dividends and miscellaneous incomes are accounted on receipt basis. Revenue is generally recognised on accrual basis.

iii) Fixed Assets

Fixed Assets are stated at cost of acquisition and includes other direct / indirect and incidental expenses incurred to put them into use.

iv) Debrciation

(a) Pro-rata debrciation is provided on the basis of the period of usage of the asset, which is rounded off to the nearest month. Debrciation is provided on straight line basis.

(b) The rates of debrciation adopted are in conformity with those brscribed by Schedule XIV of the Act.

v) Impairment of Assets.

Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount.

vi) Investments

Investments, which are long term in nature, are stated at cost of acquisition with provision where necessary for diminution, other than temporary, in the value of investments. Current investments are carried at lower of cost or market value and quoted/fair price, computed category wise.

vii) Inventories

(a) The inventory comprises of stock of shares, securities, quoted and unquoted and may include stock in transit and lying with third parties.

(b) The stock of inventories namely quoted securities are valued at lower of cost and market price, whereas unquoted securities are valued at cost or at a value (in case of torpid securities), which in the management's perception it will fetch in the open market.

viii) Tax Expense

(a) Tax expenses comprise of current and deferred tax.

(b) Provision for current income tax is made on the basis of relevant provisions of the Income Tax Act, 1961 as applicable to the financial year.

(c) Deferred Tax is recognized subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

(d) Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period.

ix) Borrowing Costs.

Borrowing Costs directly attributed to the acquisition of fixed assets are capitalized as a part of the cost of asset upto the date the asset is put to use. Other Borrowing Costs are charged to the profit and loss account in the year in which they are incurred.

x) Employee Benefits.

The management is of the opinion that provision in respect of employee's retirement benefits are not required to be made.

xi) Provisions and contingencies.

The company creates a provision when there is 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 brsent obligation that probably will not require an outflow of resources or where reliable estimate of the amount of the obligation cannot be made.

1. In the opinion of the management, there are no outstanding dues towards suppliers as defined under the "Micro, Small & Medium Enterprises Development Act, 2006."

2. During the year the Company has written-off as bad debts, certain outstanding Loan Amounts amounting to Rs. 39,70,000/- (Nil) and interest thereupon amounting to Rs. 6,08,167/- (Rs. 13,82,600/-) due from certain parties which, in the opinion of management have become fragile.

3. The Company is registered as a 'Non Banking Financial Company (NBFC)' under the Reserve Bank of India Act, 1934 (RBI Act), as a 'Non Deposit Accepting (Category B)' entity and is intermittently carrying on non banking finance or investment activities in terms of section 45I(c) of the RBI Act. The statutory compliances for the year under review, in terms of the provisions of the RBI Act and the 'Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, are pending and the management has initiated the required process for these compliances. Pursuant to the instructions received by the Company from the NBFC Department of the Reserve Bank of

India, the Company has started creating a 'Special Reserves' @ 20% of Net Profits from the Previous Financial Year.

4. The balances of receivables and payables are subject to third party confirmations. Current assets, loans and advances are of the value stated if realised in the ordinary course of business.

5. In respect of the payments, made for goods or expenses or otherwise made, where the payee's acknowledgements or other supporting evidences were not available, the management confirms the propriety of such payments and of the debits given to the respective account heads in the book.

6. The Company has one segment of activity namely 'Finance and Capital Market'.

7. Figures of current year are after excluding the figures of the Demerged Segment and are, therefore, strictly not comparable with those of brvious year.

8. Figures of brvious year have been re-grouped, re-arranged and recast, wherever considered necessary.

As per our report of even date

For and on behalf of the Board of Directors

For J. K. Shah & Co.

Chartered Accountants

Firm Registration No. 109606W

Sanjay Dhruva

Director Director

Partner

M. No. 038480

Place : Mumbai

Dated : 29/08/2015