NOTES FORMING INTEGRAL PART OF THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2015

1. CORPORATE INFORMATION

FMEC International Financial Services Limited (the company) is a Limited company domiciled in India and incorporated under provision of Companies Act, 1956 as on 7th June 1993 and is Holding of YDS Securities Private Limited. The company is engaged in the business of Financing and providing Consultancy.

2. BASIS OF brPARATION OF ACCOUNTS

The financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as specified under Section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. The Financial Statements has been brpared on the accrual basis and under the historical cost convention. The Management evaluates all recently issued or revised accounting standards on an on-going basis.

The Accounting policies adopted in the brparation of financial statements are consistent with those of brvious year, except for the change in accounting policy explained below. 2.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

i) CHANGE IN ACCOUNTING POLICY brSENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

During the year ended 31st March 2015, the revised Schedule III notified under the Companies Act, 2013, has become applicable to the company for the brparation and brsentation of its Financial Statements. The adoption of revised schedule III does not impact recognition and measurement principles followed for brparation of Financial Statements. However it has significant impact on the brsentation and disclosures made in Financial Statements.

The company has also reclassified the brvious year figures in accordance with requirement as applicable in the current year.

ii) USE OF ESTIMATES

The brparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balance of Assets and Liabilities and disclosures related to the contingent liabilities as at the date of financial statements and reported accounts of revenues and expenses during the period. Actual results could differ from those estimates. Any revision of accounting estimates is recognized in accordance with the requirement of the respective accounting standard.

iii) TANGIBLE ASSETS AND DEbrCIATION

The company has neither acquired any asset nor having any Fixed Assets as on the date of Balance sheet

iv) INVESTMENT

Investments are valued at cost.

v) REVENUE RECOGNITION

Revenue is recognized on mercantile basis to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

vi) TAX EXPENSES

Tax expense comprises of current tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act 1961 enacted in India. The tax rates and tax laws used to compute the amount are those as enacted, at operating date.

Deferred Taxation is provided using the liability method in respect of the taxation effect arising from all material timing difference between the accounting and tax treatment for Income and Expenditure, which are expected with reasonable probability to crystallize in the foreseeable future.

Deferred Tax benefits are recognized in the financial statements only to the extent of any deferred tax liability or when such benefits are reasonable expected to be realizable in the near future.

Deferred Tax Assets and liabilities are measured at tax rates that have been enacted or substantively enacted by the balance sheet date.

vii) EVENTS OCCURRING AFTER BALANCE SHEET DATE:

No significant events which could affect the financial position as on 31-03-2015 to a material extent have been reported by the assessee, after the balance sheet date till the signing of report.

viii) PRIOR PERIOD AND EXTRAORDINARY ITEMS :

There are no material changes or credits which arise in the current period, on accounts of errors and omission in the brparation of the financial statements for the one or more prior periods.

ix) EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity share outstanding during the year

x) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

PROVISIONS

A provision is recognized when an enterprise has a brsent obligation as a result of past event. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

CONTINGENT LIABILITIES

A contingent liability is disclosed where, as a result of past events, 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 the likelihood of outflow or resources is remote, no provision or disclosure is made.

CONTINGENT ASSETS

Contingent Assets are neither recognized nor disclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

2. In the opinion of the directors, current assets and advances have a value on realization in the ordinary course of the business at least equal to the amount at which these have been stated in the Balance Sheet.

3. Balances of Sundry Creditors/Debtors are subject to confirmation/reconciliation, which in the opinion of themanagement is not significant, adjustments, if any will be carried out as and when settled. However accounts have been reconciled on the basis of materiality.

4. The company is a small and medium sized company as defined in the General Instruction in respect of Accounting Standard notified under the Companies Act, 1956. Accordingly, the Company has complied with the Accounting Standard as applicable to small and Medium Sized Company.

5. There is no contingent liability as Certified by the management of the company.

6. All the known liabilities have been provided for and there are no disputed liabilities as confirmed by the management of the company.

In terms of our attached report of even date

For RAJESH RANJIT & Co.

Chartered Accountants

FRN : 021745N

(RAJESH KUMAR)

PARTNER

M.NO. : 506726

For and on behalf of

Fmec International Financial Services Limited

Bimal Aggarwal (Managing Director)

DIN-00361883

Priyanka Joshi (Company Secretary)

M.No. : 36608

Ramesh Kumar (Director)

DIN-00339542

Manoj Kumar Thakur (Chief Financial Officer)

PAN : AGOPT3174G

Place : New Delhi Date : 28/05/2015