Notes to Accounts of K2 Systems Ltd.

Mar 31, 2014

1. Contingent Liabilities : Nil

2. Quantitative details

The Company is engaged in the business of sales and services of electronic goods and allied business cannot be expressed in any generic unit and hence it is not possible to give such quantitative details of such services and certain information as required under paragraph 3,4C and 4D of Part II of Schedule VI to the Companies Act, 1956. The details of Conversation of Energy, Technology absorption are given in Directors Report. R&D expenditure is not separately accounted for.

3. Foreign Exchange earned and outgo

Earnings:

FOB Value of Exports : Rs. Nil

Out Go:

CIF Value of Capital Goods : Rs. Nil

4. Dues to micro and small-scale industrial undertakingsAs at March 31,2014 as per available information with the company, there are no dues to small scale Industrial Undertakings.

5. The previous year figures have been recast / restated, wherever necessary, to the current year's classification.

6. Notes 1 to 19 form part of Balance Sheet and have been authenticated.

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Mar 31, 2013

1. Contingent Liabilities Nil

2. Quantitative details

The Company is engaged in the business of sales and services of electronic goods and allied business cannot be expressed in any generic unit and hence it is not possible to give such quantitative details of such services and certain information as required under paragraph 3,4C and 4D of Part II of Schedule VI to the Companies Act. 1956. The details of Conversation of Energy, Technology absorption are given in Directors Report. R&D expenditure is not separately accounted for.

3. Foreign Exchange earned and outgo

Earnings: FOB Value of Exports : Rs. Nil

Out Go: CIF Value of Capital Goods : Rs. Nil

4. Dues to micro and small-scale industrial undertakings

As at March 31, 2013 as per available information with the company, there are no dues to small scale Industrial Undertakings.

5. The previous year figures have been recast / restated, wherever necessary, to the current year's classification.

6. Notes 1 to 19 form part of Balance Sheet and have been authenticated.

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Mar 31, 2012

Not Available.

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Mar 31, 2011

1. Segment Reporting: - The Company has only one Business Segment i.e., Software Development and the principal geographical segment is India. Consequently, the need for separate disclosure as required under Accounting Standard 17, Segment Reporting as issued by the Institute of Chartered Accountants of India does not arise.

2. Related Party disclosures in accordance with AS-18 issued by The Institute of Chartered Accountants of India by virtue of share holding and key management personnel.

1) Related Parties Nature of Relationship

a) K2 Systems Inc Common Director

2) Transactions with Related Parties

a) Loan Taken Rs 14.30 Lakhs

3. Deferred Tax Liability:

The Deferred Tax asset in adoption of new A.S.22 "Taxation Income" issued by The Institute of Chartered Accountants of India on account of unabsorbed depreciation and unabsorbed business loss has not been recognized in the books as there is no virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

4. Paise have been rounded off to the nearest rupee.

5. Figures have been re-grouped / re-arranged wherever necessary.