Notes Forming Part of the Financial statements

1. Corporate information :

Provestment Services Limited is engaged in dealing of Air Ticketing, Tour Operator &Money Changer and providing professional Services to corporate entities across the globe. The company was incorporated in the year 1994.

2. Significant Accounting Policies.

Set out hereunder are the significant accounting policies adopted by the company in the brparation of the accounts for the year ended 31st March, 2015. There is no material change in accounting policies of the Company

a) Basis of Accounting:

The accounts of the Company are brpared under the historical cost convention and in accordance with the applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 2013 except where otherwise stated. There is no material change in the accounting policies of the company as compared to the brvious year.

b) Fixed Assets and Debrciation:

Fixed Assets are stated at historical cost less debrciation. Debrciation is provided on fixed Assets on Straight Line Method according to useful life brscribed in Schedule II of the Companies Act, 2013. Debrciation provided on web portal under intangible assets as per AS 26i.e. on "Intangible Assets".

c) Employees benefits:

Contribution to defined contribution retirement benefits scheme isrecognized as an expense when employees have rendered services entitling them to contributions.

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the service rendered by employees is recognized during the period when employees renders the service. Provision has been made for gratuity by the company for post employment by management and no actuarial valuation has been done in accordance with the AS-15.No provision has been made for Bonus under the Bonus Act, 1962

d) Revenue Recognition:

Mercantile system of accountings is followed.

e) Contingent Liabilities:

Contingent Liabilities are determined on the basis of available information and if any disclosed by way of notes to the accounts.

f) Insurance/ Claims

The company covers all the normal risks on the basis of cost for the fixed assets and Inventories. The brmium pertaining to the year is charged against the revenue of the year.

Insurance claims lodged by the company will be adjusted as and when the final amount will be determined by the Insurance Companies

h) Deferred Tax

Deferred tax resulting from timing difference between book profit and tax profit is accounted for at the current tax rate without surcharge and in compliance with the Accounting Standard 22 "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India. Deferred Tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss account in the year of change. Deferred tax assets and deferred tax liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of exiting assets and liabilities.

1.) Previous year figures:

The brvious year's figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to make their classification comparable with that of the current year.

2.) Change in Method of charging Debrciation

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II ofCompanies Act, 2013. Accordingly the unamortized carrying value is being debrciated/ amortised over the revised/ remaining useful lives. The difference raised due to change in method of debrciation has been adjusted with retained earnings of the company.

3.) Contingent Liabilities

i) The Company has given a guarantee, in favour of Pro Labels Private Limited, with respect to a loan of EUR 2,41,993.11 (Equivalent INR 1,62,80,000 as on 31.03.2015) taken to import machinery.

ii) Estimated amount of Contracts remaining to be executed on capital account and not provided  for:Nil

iii) Claims against the company not acknowledged as debts- Nil.

3.) Loans (Secured and Unsecured) Secured Loans:

i) ODP Loans & Term Loan from Punjab & Sind Bank is secured against all current & fixed assets. The loan is guaranteed by two directors of the company and corporate guarantees of M/s Chaitali Exports Pvt Ltd.

ii) The vehicle loans are secured by way of hypothecation of vehicles.

4.) Provision of Income Tax:

Provision of Rs. 15,49,430/- on account of Income Tax has been made for the year.

5.) Disclosure regarding relationship with M/s SAAB Travel and Tours Limited as per AS-21:

During the year, the Company has sold 13413 shares of M/s SAAB Travel and Tours Limited. Now, Company holds 3837 equity shares of M/s SAAB Travel and Tours Limited i.e. 19.14% of the capital resulting no holding -subsidiary relationship exists as on 31.03.2015 between the Company and M/s SAAB travel and Tours Limited.

6.) The Current Assets, loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which they have been stated in thebalance sheet.

7.) Cancellation of Warrants issued under the brferential guidelines:

As per the approval granted by the members of the Company at their Extra Ordinary General Meeting during 2012-13 and on receipt of the requisite Stock Exchange Approvals the company had issued 591176 Equity Share Warrants, carrying the entitlement of conversion of 1(one) equity share of Rs. 10/- each (Rupees Ten only) at Rs.68.57/-  per warrant to Bennett Coleman & Co Limited (BCCL). The warrants were due for conversion in August,2014. Since the Warrant holder did not exercise the conversion option, the said warrants have been cancelled and the amount paid for subscription of warrants has been forfeited.

8.) Description of Contract for Advertisement

During the year 2012-2013 the Bennett Coleman & Co Limited (BCCL) has entered into an agreement with the Company to advertise on non exclusive basis only for the products, services and brands owned by the Company in print and non print media. The Company has given a Deposit of Rs. 101.34 Lacs to BCCL for the advertisement for Company's brand building and the same is still outstanding as at the close of the year.

9.) Cancellation ofJoint Venture with M/s Gold Star Realtors Ltd:

The Company has invested Rs 300 Lacs in Joint Venture with M/s Gold Star Realtors Ltd. during 2011-2012 for developing Residential Flats in VarindavanYojna, RaiBarelly, Lucknow. Both the parties agreed that after completion of the project the additional funds andthe initial deposit of Rs. 300 Lacswill be returned back to the company together with the project profit as calculated @ 5% of the sales of the flats in the scheme.

However due to delay in project the board of the company has decided to cancel joint venture agreement and the whole amount including project development expenditure of Rs. 89,89,503 will be refunded by the M/s Gold Star Realtors Limited. Outstanding debit balance as on 31.03.2015 in the books of the Company is Rs.58,18,255.

10.) The Company had given Rs. 4.30 crores to Swiss Holidays Pvt. Ltd. to set up a Hotel in Switzerland on or before 30.04.2013 with 50% sharing in the business. Since Swiss Holidays Pvt. Ltd has failed to set up hotel and in accordance withagreement dt. 1st January 2014 Swiss Holiday Pvt Ltd is liable to pay interest @14% per annum on the due amount.The legal notice has been served for the recovery of the amount given however no provision has been made.

11.) Balance in accounts whether in debtors, creditors, share application money pending allotment and loans & advances are subject to verification and confirmations.

12) Provision for Gratuity and Bonus:

As at the close of the year, the provision for gratuity is amountingRs.2,39,135/-. No provision has been made for the Bonus in accordance with the Bonus Act, 1965.

13) Fixed Assets:

Tangible & Intangible Assets: Total additions made in tangible assets amounting Rs. 32 thousand. No addition made during the year under intangible assets Debrciation charged at straight-line method as brscribed by the Companies Act, 2013.

Capital Work-in Progress: The property is under construction at Noida and shown under capital work in progress.

FOR PROVESTMENT SERVICES LIMITED

As per our Report of even date attached

Praveen Bhatia  

(Whole Time Director)

Anil Lakhani

 (Director)

Deepika Rajput

(Company Secretary)

CA Arun Ahuja

Partner

M.No: 089709 FRN: 012985N

 for and on behalf of

AHUJA ARUN & CO.

Chartered Accountants

Date: 30.05.2015

Place: New Delhi