Notes to Accounts of Cityman Ltd.

Mar 31, 2024

(b) Rights, preferences and restrictions attached to equity shares:

(i) The Company has only one class of shares referred to as equity shares having par value of Rs 10 each.

(ii) Each shareholder is eligible for one vote per share held.

(iii) Dividends are to be approved in the General Meetings based on and not exceeding the recommendation of the Board of Directors.

(iv) ln the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholding.

(v) Each Share holder has a right to inspect the statutory registers of the company as per the provisions of the companies act, 2013.

(vi) Each and every share holder has a right to participate in the share holders'' meetings as and when called by the company subject to provisions of the Companies Act, 2013.

NOTE - 3 : Retained earnings

The cumulative gain or loss arising from the operations which is retained by the Company is recognised and accumulated under the heading of retained earnings. At the end of the year, the profit/(loss) after tax is transferred from the statement of profit and loss to the retained earnings account.

Net of capital subsidy of Rs.958000/- received from Department of Industries, Government of Karnataka.

NOTE - 4:

The above loan is from Mr. Santhosh Joseph Karimattom, Managing director, Rs. 13,67,58,262/- as at 31^stMarch, 2024 and as at 31^st March,2023 (Rs. 13,39,44,456/-). The above loan is an interest free loan and the same is payable on demand.

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which

recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ‘Micro, Small and Medium Enterprises Development Act, 2006’ (‘the MSMED Act’). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2024 has been made in the financial statements based on information received and available with the Company. Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the MSMED Act is not expected to be material. The Company does not have any principal or interest dues to micro and small enterprises as at 31 March 2024: Nil ( 31 March 2023: Nil)

The rental agreement between the Company and the landlord is for a period of 11 months, hence the lease qualifies as a short term lease as per Ind AS 116 and hence the lease payments are recorded on actual basis in the statement of profit and loss.

22.Contingent liabilities and capital commitments
Particulars	As at	As at
	31st March 2024	31 March 2023
Contingent Liabilites Income Tax Dispute	-	¦
Capital commitments Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for	-	-

* The unabsorbed business loss can be carried forward only for a period of 8 years from the year they arise.

** The unabsorbed depreciation loss can be carried forward for a period any number of years from the year they arise.

25. Earnings per share

Basic EPS amounts are calculated by dividing the loss for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year. The Company has no potentially dilutive instruments.

26. Expenditure on corporate social responsibility activities

Since the Company does not meet the criteria specified in Section 135 of the Companies Act, 2013, the Company is not required to spend any amount on activities related to corporate social responsibility for the year ended March 31,2024.

27. Segment reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses and for which discrete financial information is available. The operating segments’ operating results are reviewed by the Chief Operating Decision Maker (Board of Directors) to make decisions about resources to be allocated to the segments and assess their performance. The Company’s business activities fall within one component (namely, "development, rental and maintenance of serviced residence"). However, the Company has not commenced its operations as at the year end.

29. Financial risk management

The Company has exposure to following risks arising from financial instruments- market risk [refer (a) below]

- credit risk [refer (b) below]

- liquidity risk [refer (c) below]

Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment.

a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, which will affect the Company’s income or the value of its holdings of financial instruments.

The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk

Majority of the transactions entered into by the Company are denominated in INR. Accordingly, the Company does not have any currency risk.

Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company have borrowings during the year from its Directors, which is also interest free. Hence, the Company is not exposed to significant interest rate risk as at the respective reporting dates.

Price risk

Price risk is the risk of fluctuations in the value of assets and liabilities as a result of changes in market prices of investments. The Company has no exposure to equity securities price risk and is not exposed to commodity price risk.

b) Credit risk

Credit risk is the potential financial loss resulting from the failure to settle its financial and contractual obligations, as and when they fall due, The company does not have any receivable during the year.

The Company establishes an allowance account for impairment that represents its estimate of losses in respect of trade and other receivables. The allowance account is used to provide for impairment losses. Subsequently when the Group is satisfied that no recovery of such losses is possible, the financial asset is considered irrecoverable and the amount charged to the allowance account is then written off against the carrying amount of the impaired financial asset.

Cash at bank are placed with financial institutions which are regulated.

As at the reporting date, there is no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying value of each financial asset on the Balance Sheet.

Cash and cash equivalents (including bank balances and fixed deposits with banks):

Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

Liquidity is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing the liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried out by the Management of the Company in accordance with practice and limits set by the Company. In addition, the Company’s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The company not exposed to liquidity risk, the directors of the Company are well capable of funding the regular and future expansion requirement of the company.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). Transfers between Level 1, Level 2 and Level 3

There were no transfers between Level 1, Level 2 or Level 3 during the year ended 31 March 2024 and 31 March 2023 respectively.

31. Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company''s policy is to maintain share capital at its minimum Management monitors the return on capital.

In order to maintain or adjust the capital structure, the company may issue new shares or sell assets to reduce debt. Consistent with others in the industry, the company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by total equity (as shown in the balance sheet)

The company evaluates the performance based earning before interest, tax, depreciation and amortisation:

32. Additional Regulatory Information

(i) The title deeds to land and building as disclosed under Property, Plant and Equipment are held in the name of the Company.

(ii) There are no proceedings that have been initiated or pending against the Company for holding any any benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rules made thereunder.

(iii) The Company has no borrowings from banks or financial institutions on the basis of security of current

assets, hence for the year ended March 2024, the Company is not required to file any quaterly statements or returns with Banks and Financial Institutions.

(iv) The Company has not availed any borrowings from banks or financial institutions on the basis of security of

current assets for the year ended March 2024.The quarterly return and statements filed by the company with Banks or Financial Institutions are in agreement with the books of accounts.

(v) The Company has not been declared as a willful defaulter by any bank or financial institution or any other

lender

(vi) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013

or section 560 of the Companies Act, 1956.

(vii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the

statutory period.

(viii) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

(ix) Scheme of Arrangements

There are no scheme of arrangements that have been approved by the competent authority in terms of Section 230 to 237 of Companies Act,2013

(x) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year

ended March 2024.

(xi) Utilisation of Borrowed Funds and Share premium

(A)The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(B) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Company declares that the Relevant Provisions of the FEMA Act ,1999 and Companies Act have been Complied with and are not in violation of the Prevention of Money-Laundering Act ,2002.

Point (A) - The variance is on account of increase value of work in progress.

Point (B) - The variance is on account of increase in the employee cost & additional borrowers from director.

34. Other Notes

Previous year figures have been regrouped and reclassified wherever necessary to make them comparable to current year figures.

Confirmations in respect of some of the receivables/sundry creditors have been received. Where ever confirmations in respect of these are not received, they are subject to confirmations/reconciliations or adjustments if any.

The notes referred to above form an integral part of these financial statements

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Mar 31, 2014

1.1 (a) Capital reserve represents the principal loan amount waived by Consortium of Banks and Financial Institutions (Indusind Bank Limited , State Bank Of India,UTI(Axis Bank Limited) and Karnataka State Industrial Investment and Development Corporation Limited ) on One Time Settlement of dues to them.

1.2 (g) Other reserve represents the subsidy received for the project from Department of Industries and Commerce, Government of Karnataka.

1.3 (e) Loans and Advances from related parties represent a loan received from the Managing Director and the terms of loan are:

(i) Interest on Loan -NIL

(ii) Repayment terms: Either the Loan will be repaid or converted into Equity as per relevant and applicable SEBI & other guidelines

(k) Note:-

( i) Confirmation of balance have not been obtained from many of the creditors

(ii) No provision for Income Tax has been made during the year ,since the Company has incurred loss during the year .However provision for demand of Rs.20,96,325/- u/s 220(2) for Assessment year 1997-98 and 1998-99 raised by Income Tax Department is made during the year and a payment of Rs.4,50,000/- has been made against this. The balance due Rs.16,46,325/- is shown under Other Current Liabilities.

(iii) The information regarding amounts due to micro and Small Enterprises have been determined based on the information available with the company and have been relied up on by the Auditors.

(iv) Principal amount remaining unpaid to Micro and Small Enterprises at the end of the Accounting Year - NIL

(v) Interest due on principal amount unpaid as at the end of the accounting year-NIL

(vi) Amount of Interest paid by the Company along with the payment made to the suppliers beyond the ap- pointed day during the year - NIL

(vii) Amount of Interest due and payable for the period of delay in making payment (amount have been paid but after the appointed day) but without interest specific under Micro Small and Medium Enterprises Develop- ment Act,2006 - NIL

(viii) Interest Accrued and remaining unpaid as at the end of the accounting year-NIL

(ix) Unpaid interest brought forward to current year-NIL

(x) The small Scale Industrial Undertaking (SSI Units) to whom amount outstanding for more than 30 days is - NIL

Note :

1. Deferred Tax Liability/Assets

(i) The Deferred Tax Liability /Assets as per accounting standard 22 issued by the Institute of Chartered Accountants of India for the current year as well as for the previous year as per recalculation is - NIL, as the Company does not foresee any reasonable certainty in generation of profit in the coming years

2. Current Assets, Loans and Advances

(i) In the opinion of the Board Of Directors , the current assets, loans and advances have the values at which they are stated in the balance sheet as and when realized in the ordinary course of business.

(ii) Confirmation of balances have not been obtained from debtors and for advance payments.

3. (i) Short term loans and advances to others - unsecured considered good represents Rupees 1.50 crore to vendor for purchase of land for township development at whitefield, Bangalore and the execution of title deed transfer of the property measuring 18 acres for a total consideration of Rs. 22 crore is pending due to obtainment of certain legal and ecological clearances.

(ii) The company is advised of getting all legal and ecological clearances shortly from concerned au- thorities.

1.4. Contingent Liabilities & Commitmets

(a) Contingent Liabilities

(i) Claims against the company not acknowledged as debt - -

(ii) Guarantees - -

(iii) Other money for which company is contingently liable

(b) Commitments - - (i) Estimated amount of contracts remaining to be executed on capital account & not provided for - -

(ii) Uncalled liability on shares & other investments - -

(iii) Others - -

1.5. Exceptional Items --

Other Information

(a) Previous years'' figures have been regrouped or recast wherever necessary to suit with current year''s disclosusre and layout.

(c) Accounting Standard 18(AS 18) (related to party disclosures, notified in the Companies (Accounting Standards) Rules 2006)

The disclosure of transactions with the related parties as defined in AS-18 are given below.

1. Related parties and their relationship

A. Key Managerial personnel

1. Mr. Santhosh Joseph Karimattom - Managing Director

2. Mr. Kaumpilly Rajesh - Director

3. Mr. Rajendra Patil - Director

4. Mr. Anupkumar - Director

5. Mr. D.E. Chandrasekaran - Company Secretary

B. Enterprises over which key managerial personnel and relatives exercise significant influence.

1. Bannerghatta Farms

2. Vasantha Farms

3. SJK Farms

4. Karimattom Plantations Pvt. Limited

5. Fusav Engineering Devices Pvt. Limited

6. City projects and entertainment Pvt. Limited

7. Heco panelling Systems Pvt. Limited

C. Concerns key managerial personnel and their relatives 1. Diode Tailors

D. material transactions with related parties - NIL

E. Remuneration paid to Managing Director and Directors - NIL

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Mar 31, 2013

1.1 (a) Capital Reserve represents the Principal loan amount waived by consortium of banks and financial institutions i.e., Indus Ind Bank Limited, State Bank of India, UTI (AXIS) Bank Limited and Karnataka State Industrial Investment & Development Corporation Limited on one time settlement of dues to them and

1.2 (g) Other Reserve represents the subsidy received for the Project from the Department of Industries & Commerce, Government of Karnataka.

1.3 (e) Loans and Advances from related parties represent a loan received from the Managing Director and the terms of loan are:

(i) Interest on Loan -NIL

(ii) Repayment terms: Either the Loan will be repaid in the next 5 years or converted into Equity as per relevant and applicable SEBI & other guidelines

(a) Note:-

(i) Confirmation of balances have not been obtained from many of the creditors

(ii) No provision for income Tax has been made for the year since the Company has incurred loss during the year. No provision has been made for demand of interest U/s. 220(2) of the Income Tax Act for Assessment Year 1997-98 and 1998-99 amounting to Rs. 20,96,325/-, as the company is advised of waiver of the same by higher Authorities on the company''s application.

(iii) The information regarding amounts due to Micro and Small Enterprises have been determined based on the information available with the company and have been relied up on by the Auditors

(iv) Principle amount remaining unpaid to Micro and Small Enterprises as at the end of the Accounting Year -NIL

(v) Interest due on principle amount remaining un paid as at the end of the Accounting year -NIL

(vi) Amount of interest paid by the Company along with the payment made to the suppliers beyond the appointed day during the year - NIL

(vii) Amount of Interest due and payment for the period of delay in making payment(amount have been paid, but after the appointed day) but without interest specified under Micro Small and Medium Enterprises Development Act,2006 - NIL

(viii) Interest accrued and remaining unpaid as at the end of the accounting year -NIL

(ix) Unpaid interest brought forward to current year - NIL

(x) The Small Scale Industrial Undertaking ( SSI Unit ) to whom amount outstanding for more than 30 days is NIL

1.4 (c) (ii) Loans & Advances to related Parties represent the amount paid towards Deposit for the use of Trade mark "City man" to M/s. S.S.Agencies, a firm in which the Managing Director and his relatives are interested

1.5 (g) The Company has purchased a property in Panangad, Ernakulam, Kerala for residential township development. The Company has to buy further lands to get advantage of better access and higher realization at the time of sale.

1.6. Other Current Assets - -

a) Current Assets, Loans and Advances

i. In the opinion of the board of directors, the current assets, loans and advances have the values at which they are stated in the balance sheet as and when realized in the ordinary course of business.

ii. Confirmation of balances have not been obtained from debtors and for advance payments.

b) Deferred Tax Liability / Asset

i. The deferred tax liability / assets as per accounting standard 22 issued by the Institute of Chartered Accountants of India for the current year as well as for the previous year as per re - calculation is nil, as the company does not foresee any reasonable certainty in generation of profit in the coming years.

d) The Managing Director was appointed with a monthly remuneration of Rs. 50,000/- with effect from 31.3.2012 and the same was approved by the Annual General Meeting and Central Government. As the Company could not expand its operations to the expected level the Managing Director offered to waive his claim for remuneration and hence the same is not provided in the accounts.

1.7. Contingent Liabilities & Commitments

(a) Contingent Liabilities

(i) Claims against the company not acknowledged as debt - -

(ii) Guarantees - -

(iii) Other money for which company is contingently liable

(b) Commitments - -

(i) Estimated amount of contracts remaining to be

executed on capital account & not provided for - -

(ii)Uncalled liability on shares & other investments partly paid - -

(iii) Others - -

Other Information

a. Previous years'' figures have been regrouped or recast wherever necessary to suit with current year''s disclosure and layout.

d. Information with regard to Opening Stock, Purchases, Production, Sales & Closing Stock

Note:

i) Purchase are net of returns

ii) Sales are net of returns but includes damages and compliments

iii) Production is net of damages in production process

iv) Information with regards to raw materials and components consumed

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Mar 31, 2012

(a) Rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital -

The Company has only one class of Equity Shares having a par value of Rs. 10/- each. Each holder of Equity shares are entitled to one vote per share. The Company as and when declares dividend, the same is paid in Indian Rupees. There are no restrictions on distribution of dividends or repayment of capital

(b) Shares of each class held by its holding company or its ultimate holding company (including shares held by it or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate) - NIL

(d) Shares reserved for issue under options & contracts / commitments for sale of shares / disinvestment, including the terms and the amounts - NIL and Not applicable

(e) For period of 5 years immediately preceeding the Balance sheet date disclose:

Aggregate number & class of shares

- Allotted as fully paid up pursuant to contract(s) without payment being received in cash - NIL

- Allotted as fully paid up by way of bonus shares - NIL

- Bought back - NIL

(f) Terms of any securities convertible into equity / preference shares issued along with the earliest date of conver- sion in descending order starting from the farthest such date - NIL and Not Applicable

A.

(a) Capital Reserve represents the Principal loan amount waived by consortium of banks and financial institutions

i.e., Indus Ind Bank Limited, State Bank of India, UTI (AXIS) Bank Limited and Karnataka State Industrial Investment & Development Corporation on settlement of dues.

(g) Other Reserve represents the subsidy received for the Project from the Department of Industries & Commerce, Government of Karnataka.

B.

(v) Loans and Advances from related parties represent a loan received from the Managing Director and the terms of loan are:

(i) Interest on Loan -NIL

(ii) Repayment terms: Either the Loan will be repaid in the next 5 years or converted into Equity as per relevant and applicable SEBI & other guidelines

(C) Note:-

i. Confirmation of balances have not been obtained from many of the creditors.

ii. No provision for Income Tax has been made, since the company has incurred loss during the year.

iii. The information regarding amounts due to Micro and Small Enterprises have been determined based on the information available with the company and have been realized upon by the auditors.

iv. Principal amount remaining unpaid to Micro and Small Enterprises as at the end of the accounting year : NIL

v. Interest due on principal amount remaining unpaid as at the end of the accounting year : NIL

vi. Amount of interest paid by the company along with the payment made to the suppliers beyond the appointed day during the year : NIL

vii. Amount of interest due and payable for the period of delay in making payment (amount have been paid, but after the appointed day) but without interest specified under Micro Small and Medium Enterprises Development Act, 2006 : NIL

viii. Interest accrued and remaining unpaid as at the end of the accounting year : Rs. NIL

ix. Unpaid interest brought forward to current year : NIL

x. The Small Scale Industrial Undertaking ('SSI Unit') to whom amount outstanding for more than 30 days is NIL.

C Loans & Advances to related Parties represent the amount paid towards Deposit for the use of Trade mark "Cityman" to M/s. S.S.Agencies, a firm in which the Managing Director and his relatives are interested

a) Current Assets, Loans and Advances--

i. In the opinion of the board of directors, the current assets, loans and advances have the values at which they are stated in the balance sheet as and when realized in the ordinary course of business.

ii. Confirmation of balances have not been obtained from debtors and for advance payments.

b) Deferred Tax Liability / Asset

i. The deferred tax liability / assets as per accounting standard 22 issued by the Institute of Chartered Accountants of India for the current year as well as for the previous year as per re - calculation is NIL,

ii. as the company does not foresee any reasonable certainty in generation of profit in the coming years.

1. Contingent Liabilities & Commitmets

Contingent Liabilities

(a) Claims against the company not acknowledged as debt - -

(b) Guarantees - -

(c) Other money for which company is contingently liable Commitments - -

(a) Estimated amount of contracts remaining to be executed on capital account & not provided for - -

(b) Uncalled liability on shares & other investments partly paid - -

(c) Others

TOTAL - -

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Mar 31, 2011

1. Previous year figures have been regrouped or recast wherever necessary to suit with current year's disclosure and layout.

2. CAPITAL RESERVE: Capital reserves includes the following:-

a) Principal loan amount waived by consortium of banks and financial institutions (Indus Ind Bank Ltd., State Bank of India , UTI (Axis) Bank Ltd. and Karnataka State Industrial Development Corporation Ltd.) on One Time Settlement of dues to them and

b) Subsidy received for the project from the department of industries and commerce, Government of Karnataka.

3. FIXED ASSETS

Land

The 4831.25 sq. ft. of land belonging to the company in Sy. No. 77/1A, Hulimavu Village, Bangalore south is fully subject to encroachment, and the value of the land has been written off fully as impairment loss during the year, as the company does not forsee any possibility of repossessing the encroached area

4. CURRENT ASSETS, LOANS AND ADVANCES

(a) In the opinion of the board of directors, the current assets, loans and advances have the values at which they are stated in the balance sheet as and when realized in the ordinary course of business.

(b) Confirmation of balances have not been obtained from debtors and for advance payments.

(c) Advances include interest free refundable deposit of Rs. 12,00,000/- due from a firm in which one of the Director is a partner.

5. DEFERRED TAX LIABILITY/ASSETS

The deferred tax liability/assets as per accounting standard 22 issued by the Institute of Chartered Accountants of India for the current year as well as for the previous year as per re-calculation is NIL, as the company does not foresee any reasonable certainty in generation of profit in the coming years.

6. CURRENT LIABILITIES AND PROVISIONS

(a) Confirmations of balances have not been obtained from many of the creditors.

(b) No provision for income tax has been made, since the company has incurred loss during the year.

(c) provisions include provision for income tax relating to previous years amounting to Rs. 18,57,000/-

(d) (i) The information regarding amounts due to Micro and Small Enterprises have been determined based on the information available with the company and have been relied upon by the auditors.

(ii) Principal amount remaining unpaid to Micro and Small Enterprises as at the end of the accounting year: Rs. NIL

(iii) Interest due on principal amount remaining unpaid as at the end of the accounting year: Rs. NIL.

(iv) Amount of interest paid by the company along with the payment made to the suppliers beyond the appointed day during the year: Rs. NIL.

(v) Amount of interest due and payable for the period of delay in making payment (amount have been paid, but after the appointed day) but without interest specified under Micro Small and Medium Enterprises Development Act, 2006: Rs. NIL.

(vi) Interest accrued and remaining unpaid as at the end of the accounting year: Rs. NIL.

(vii) Unpaid interest brought forward to current year: Rs.NIL.

7. SEGMENT REPORTING

(a)The company has only one business segment and geographical segment viz. manufacturing and selling of readymade garments, hence the enterprise accounts are representing the segmental accounts.

8. DISCLOSURE IN ACCORDANCE WITH ACCOUNTING STANDARD - 18 RELATED PARTY TRANSACTION

9. The Small Scale Industrial Undertaking ("SSI Unit") to whom amount outstanding for more than 30 days is Rs. Nil.

10. SALES TAX DEMAND

(a) Sales tax assessment of all the previous years completed and the amount determined as payable by authorities relating to all previous years have been paid in full.

(b) INCOME TAX:- Provision is being made for additional income tax demand relating to earlier years under the head provision for taxation for earlier years as and when demands are intimated to the company.

11. CONTINGENT LIABILITIES NOT PROVIDED FOR

AS AT AS AT

31.032011 31.03.2010

1. Claims against the company not acknowledged as debts. Nil Nil

2. Estimated amount of contracts remaining to be executed on capital account not provided for Nil Nil

3. Other money for which the company is contingently liable

(a) Cheque discounted Nil Nil

(b) Bank guarantees Nil Nil

(c) Guarantee on behalf of others Nil Nil

4. Export bill discounted Nil Nil

1. Previous year figures have been regrouped or recast wherever necessary to suit with current year's disclosure and layout.

Note:

1. Purchase are net of returns

2. Sales are net of returns but includes damages and compliments

3. Production is net of damages in production process

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Mar 31, 2010

Contingent liability is disclosed in case of

(a) A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

(b) A possible obligation, unless the probability of outflow of resources is remote. Contingent assets are neither recognized nor disclosed.

Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

1. EARNINGS PER SHARES

Basic earnings per shares are calculated by dividing the net profit or loss for the period attributable to equitable share holders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus elements in a right issue to existing share holders; share split; and reverse share split ( consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equitable shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilative potential equity shares.

2. CASH FLOW STATEMENT

Cash flow statement has been prepared under indirect method.

B. NOTES TO THE BALANCE SHEET

1. Previous year figures have been regrouped or recast wherever necessary to suit with current years disclosure and layout.

2. CAPITAL RESERVE: Capital reserves includes the following:-

a) Principal loan amount waived by consortium of banks and financial institutions (Indus Ind Bank Ltd., State Bank of India, UTI (Axis) Bank Ltd. and Karnataka State Industrial Development Corporation Ltd. on One Time Settlement of dues to them and

b) Subsidy received for the project from the department of industries and commerce, Government of Karnataka.

3. FIXED ASSETS

Land

The company has sold 5000sq. ft. of land out of 9831.25 sq. ft. possessed by the company at sy. No. 77/1 A, Hulimavu village and Bangalore south. The proportionate cost of 5000 sq. ft. of land which is sold, is reduced from the original cost incurred. The company presently possess only 4831.25 sq. ft. of land in the said area and that area is subject to encroachment.

4. CURRENT ASSETS. LOANS AND ADVANCES

(a) In the opinion of the board of directors, the current assets, loans and advances have the values at which they are stated in the balance sheet as and when realized in the ordinary course of business.

(b) Confirmation of balances have not been obtained from debtors and for advance payments.

(c) Advances include interest free refundable deposit of Rs. 12,00,000/- due from a firm in which one of the Director is a partner.

5. DEFERRED TAX LIABILITY/ASSETS

The deferred tax liability/assets as per accounting standard 22 issued by the Institute of Chartered Accountants of India for the current year as well as for the previous year as per re-calculation is NIL, as the company does not foresee any reasonable certainty in generation of profit in the coming years.

6. CURRENT LIABILITIES AND PROVISIONS

(a) Confirmations of balances have not been obtained from many of the creditors.

(b) No provision for income tax has been made, since the company has incurred loss during the year.

(c) provsions include provision for income tax relating to previous years amounting to Rs. 35,51,000/-

(d) (i) The information regarding amounts due to Micro and Small Enterprises have been determined based on the information available with the company and have been relied upon by the auditors.

(ii) Principal amount remaining unpaid to Micro and Small Enterprises as at the end of the accounting year: Rs. NIL

(iii) Interest due on principal amount remaining unpaid as at the end of the accounting year: Rs. NIL.

(iv) Amount of interest paid by the company along with the payment made to the suppliers beyond the appointed day during the year: Rs. NIL.

(v) Amount of interest due and payable for the period of delay in making payment (amount have been paid, but after the appointed day) but without interest specified under Micro Small and Medium Enterprises Development Act, 2006: Rs. NIL.

(vi) Interest accrued and remaining unpaid as at the end of the accounting year: Rs. NIL.

(vii) Unpaid interest brought forward to current year: Rs.NIL.

7. SEGMENT REPORTING

The company has only one business segment and geographical segment viz. manufacturing and selling of readymade garments, hence the enterprise accounts are representing the segmental accounts.

8. The Small Scale Industrial Undertaking ("SSI Unit") to whom amount outstanding for more than 30 days is Rs. Nil.

9. SALES TAX DEMAND

(a) Sales tax assessment of all the previous years completed and the amount determined as payable by authorities relating to all previous years have been paid in full.

(b) INCOME TAX:- Provision is being made for additional income tax demand relating to earlier years under the head provision for taxation for earlier years as and when demands are intimated to the company.

C. NOTES TO THE PROFIT AND LOSS ACCOUNT

1. Previous year figures have been regrouped or recast wherever necessary to suit with current years disclosure and layout.