I . CORPORATE INFORMATION:-

Arnold Holdings Ltd. is a public limited NBFC company, incorporated 1981 listed on B S E Ltd. & Calcutta Stock Exchange. The company is engaged in field of Corporate Finance, Infrastructure Finance, Mortgage and Gold Loans, Capital Market.

Arnold has been seasoned provider o f private equity capital to companies across sectors. Arnold private equity practice has led investments across a range o f sectors-pharmaceutical research, highend telecom technology product development, media production services, technology, textiles, drug, manufacturing, construction, processed foods, component and tool fabrication and real estate.

II.SIGNIFICANT ACCOUNTING POLICIES :

A. a) BASIS OF ACCOUNTING POLICIES:- The financial statements have been brpared in accordance with generally accepted accounting principles in India (India GAAP) under the historical cost convention on an accrual basis in compliance with material aspect of the Accounting Standard (AS) Notified under section 133 of the Companies Act, 2013 read with paragraph 7 of the Companies (Accounts) rules 20!4. The accounting policies have been consistently applied by the Company and are consistent with those used in the brvious year.

b) All assets and liabilities have been classified as current or non- current as per the Company's normal operating cycle, and other criteria set out in the Schedule ill to the Company's Act, 2013. Based on the nature of products and time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycles as up to twelve months for the purpose of current/ non- current classification of assets and liabilities.

c) The Company is not a Small and Medium-sized Company (SMC) as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 2013. Accordingly, the company has complied with the Accounting Standards as applicable to it.

B. USE OF ESTIMATES:

The brparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Example of such estimates include provision for doubtful receivables, employee benefits, provision for income taxes, accounting for contract cost expected to be incurred, the useful lives of debrciable fixed assets and provision for impairment.

C. FIXED ASSETS & DEbrCIATION:

The Fixed Assets are stated at their original cost of acquisition including all expenses attributable to bring the assets to its intending use less accumulated debrciation up to the balance sheet date.

The debrciation on Fixed Assets has been provided for on written down value method at the rate and in the manner brscribed in Schedule II of The Companies Act' 2013 based on recommended useful lives.

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II of the Companies Act, 2013. Accordingly, in respect of Air Conditioner where the remaining useful life is "Nil", the carrying amount as on 1st April 2014 (after retaining the residual value aggregating to Rs. 2218/-), being Rs. 18499/- has been charged to debrciation in the Statement of Profit and Loss for the year and for other assets debrciation has been charged based on their remaining useful life. Due to this change in basis of calculation of debrciation, the debrciation charged for the year ended 31 st March 2015 is higher by Rs 18499/-. None of the Fixed Assets have been revalued during the year.

D. RECOGNITION OF INCOME & EXPENDITURE:

a. Revenues /Income and cost/Expenditure are generally accounted on Accrual basis as they are earned or incurred.

b. Revenue includes Income from Sale of Shares, Derivative trading, Interest & Dividend.

E. FOREIGN CURRENCY TRANSACTIONS:

a. The reporting currency of the company is the Indian rupee.

b. The company has not made any transaction in foreign exchange during the year.

F. INVESTMENTS:

a. The investment held by the company is carried at cost. (Cost Rs. 1,00,000/- Market value Rs. 1,00,000/-)

G. INVENTORIES:

The inventories of equity shares have been valued at Cost.

H. PROVISION FOR CURRENT AND DEFERRED TAX:

Current Income Tax is determined as an amount of taxes payable in respect of taxable income for the year. Deferred tax liability/assets in terms of Accounting Standard - 22, issued by The Institute of Chartered Accountants of India, is recognized, subject to the consideration of prudence in respect of Deferred Tax liability/assets arising due to timing differences.

I. IMPAIRMENT OF ASSETS:

At each balance sheet date, the management reviews the carrying amounts of its assets included in the cash generating unit to determine whether there is any indication that those assets were impaired, if any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment.

J. EMPLOYEES BENEFITS UNDER THE COMPANIES (ACCOUNTING STANDARDS)

RULES, 2006.

The Company has applied the revised Accounting Standard AS-15 Employees Benefits Under The Companies (Accounting Standards) Rules, 2006 relating to employees benefits notified under the companies (Accounting Standards) Rules 2006. According to the management there is no brsent obligation of any post employment benefits including payment of gratuity during the year. Therefore no actuarial gains or losses arose at the end of the year.

K. DISCLOSURE OF RELATED PARTY/ RELATED PARTY TRANSACTIONS:

a) KEY MANAGERIAL PERSONS:

Mahendraprasad Mallawat

CA Gazala Kolsawala

Prasanjeet Goswami

Dinesh Kumar Gupta - Independent Director

Gajanan Uttamrao Mante- Independent Director

Dr. Sopan Vishwanathrao Khirsagar- Independent Director

Soniya Agarwal - Company Sectretary

6. The company has not received any intimation from vendors regarding their status under the Micro Small & Medium Enterprises Act, 2006 and hence disclosures relating to their outstanding amount and interest have not been made.

7. The Loans and Advances are considered good in respect of which the company does not hold any security other than personal guarantee of persons.

8. Balances of Sundry Debtors and Sundry Creditors, Advances from customers and advances are subject to confirmation.

9. In the opinion of the Board of Directors, the current Assets, Loans & Advances are approximately of the value stated if realized in the ordinary course of business. The provisions for debrciation and all know liabilities are adequate and not in excess of the amounts reasonably necessary.

10. Earning per Share

Earnings Per Share of the Company is calculated by dividing the profit attributable to the equity shareholders by the weighted number of equity shares outstanding during the year. The numbers used in calculating basic and diluted earnings per equity shares are stated below

Previous Year's EPS has been restated pursuant to Split of Equity Shares of the company.

1 1 . Previous Year's figures have been regrouped, rearranged and reclassified wherever necessary to conform to the classification adopted for the current year.

12. No employees of the company are in receipt of or are entitled to receive remuneration more than or equal to the rates brscribed under 217(2A) of the Companies Act, 1956.

As per our report of even date

ARNOLD HOLDINGS LTD.

For JAIN PRADEEP & CO.

Chartered Accountants (FRN: 3153 09E)

(Pradeep Jain)

Proprietor, Membership no.52264

Director Director Secretary

Place : Kolkata

Dated: 29Ul Day of May, 2015