Notes to Accounts of Lesha Industries Ltd.

Mar 31, 2025

25. Notes on Accounts

• Contingent Liabilities

There is no contingent liability as informed by management.

• Capital Expenditure Commitments: Nil

• Related Party Transactions:-

As per Indian Accounting Standard (Ind AS-24) issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties are given below:

• Segment Reporting :

The Company''s operating segments are established on the basis of those components of the Company that are evaluated regularly by the Executive Committee (the ''Chief Operating Decision Maker'' as defined in Ind AS 108 -''Operating Segments''), in deciding how to allocate resources and in assessing performance. These have been identified considering nature of products and services, the differing risks and returns and the internal business reporting systems. The Group has four principal operating and reporting segments;

• Steel

• Trading of goods

• Others

Capital Management

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings offset by cash and bank balances) and total equity of the Company.

Fair value hierarchy

The following section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value through profit or loss. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial investments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1 : hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market for identical

assets that the entity can access at the measurement date. This represents mutual funds that have price quoted by the respective mutual fund houses and are valued using the closing Net asset value (NAV).

Level 2 : hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar

assets in markets that are not active.

Level 3 : if one or more of the significant inputs is not based on observable market data, the instrument is included in level

3. This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Company''s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

C. Fair value of financial assets and liabilities measured at amortized cost

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables approximate their carrying amounts largely due to their short-termnature. Difference between carrying amount of Bank deposits, other financial assets, borrowings, and other financial liabilities subsequently measured at amortized cost is not significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

* Financial risk management

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board has established the Audit Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Committee holds regular meetings and report to board on its activities. The Company''s risk management policies are established to identify and analyses 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 in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

(a) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is exposed to the credit risk from its trade receivables, unbilled revenue, investments, cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.

Trade Receivables

For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates.

(b) Liquidity risk

Liquidity risk 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 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.

Liquidity Table

The Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

(c) Market Risk

Market risk is the risk arising from changes in market prices - such as foreign exchange rates and interest rates - will affect the Company''s income or the value of its holdings of financial instruments. The Company is exposed to market risk primarily related to interest rate risk and the market value of the investments. Thus, the exposure to market risk is a function of investing and borrowing activities.

- Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

(d) Price Risk Exposure

The Company''s exposure to securities price risk arises from investments held in mutual funds and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from such investments, the Company diversifies its portfolio. Further these are all debt base securities for which the exposure is primarily on account of interest rate risk. Quotes (NAV) of these investments are available from the mutual fund houses. Profit for the year would increase/decrease as a result of gains/losses on these securities classified as at fair value through profit or loss.

Others

• As informed by the management that the loans are interest free, which in our opinion is violation of Section 186 (7) of the Companies Act, 2013.

• Confirmation of the concerned parties for the amount due to them and/or due from them as per accounts of the company are not received. Necessary adjustments, if any, will be made when accounts are reconciled or settled. Balance of sundry debtors and creditors, loans and advances accepted and given in the balance sheet are subject to confirmation.

• In the opinion of board of directors the value of loans and advances and other current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in balance sheet.

• The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Recent Pronouncement :

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1, 2022, as below:

Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 116 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ''cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ''10 percent'' test of Ind AS 109 in assessing whether to derecognize a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 116 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

(iv) Details of Benami Property held :

As per information and explanation given by the Management of the Company, there is no proceedings initiated or pending against the company for holding any Benami Property under the Benami Transaction (Prohibition Act 1988) and Rules made thereunder.

(v) During the year there is no registered charges pending required to be satisfied with Registrar of Companies beyond the statutory period.

(vii) Utilisation of borrowed funds and Share Premium

(a) During the year, no funds have been 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 persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) Details of Crypto Currency or Virtual Currency

During the year the Company has not traded or invested in Crypto currency or Virtual Currency, hence disclosure

requirement is not applicable to the Company.

(ix) Compliance with number of layers of companies :

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

(x) Compliance with approved Scheme(s) of Arrangements

Company has not prepared any Scheme of Arrangements in terms of section 230 to 237 of the Companies Act, 2013.

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Mar 31, 2024

• Contingent Liabilities

There is no contingent liability as informed by management.

• Capital Expenditure Commitments: Nil

• Related Party Transactions:-

As per Indian Accounting Standard (Ind AS-24) issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties are given below:

List of related parties where control exists and related parties with whom transactions have taken place and relationships :

• Segment Reporting :

The Company''s operating segments are established on the basis of those components of the Company that are evaluated regularly by the Executive Committee (the ''Chief Operating Decision Maker'' as defined in Ind AS 108 -''Operating Segments''), in deciding how to allocate resources and in assessing performance. These have been identified considering nature of products and services, the differing risks and returns and the internal business reporting systems.

The Group has four principal operating and reporting segments;

• Steel

• Trading of goods

• Others

• Earnings per Share:-

The earning considered in ascertaining the company''s EPS comprises the profit available for shareholders i.e. profit after tax and statutory/regulatory appropriations. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year as per the guidelines of IndAS-33.

• Capital Management

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings offset by cash and bank balances) and total equity of the Company.

Fair value hierarchy

The following section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value through profit or loss. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial investments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Notes:

Level 1 : hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market for identical

assets that the entity can access at the measurement date. This represents mutual funds that have price quoted by the respective mutual fund houses and are valued using the closing Net asset value (NAV).

Level 2 : hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar

assets in markets that are not active.

Level 3 : if one or more of the significant inputs is not based on observable market data, the instrument is included in level

3. This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Company''s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

C. Fair value of financial assets and liabilities measured at amortized cost

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other bank balances, other financial assets and trade payables approximate their carrying amounts largely due to their short-termnature. Difference between carrying amount of Bank deposits, other financial assets, borrowings, and other financial liabilities subsequently measured at amortized cost is not significant in each of the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

* Financial risk management

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board has established the Audit Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Committee holds regular meetings and report to board on its activities. The Company''s risk management policies are established to identify and analyses 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 in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

(a) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is exposed to the credit risk from its trade receivables, unbilled revenue, investments, cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.

Trade Receivables

For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates.

(b) Liquidity risk

Liquidity risk 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 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.

Liquidity Table

The Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

(c) Market Risk

Market risk is the risk arising from changes in market prices - such as foreign exchange rates and interest rates - will affect the Company''s income or the value of its holdings of financial instruments. The Company is exposed to market risk primarily related to interest rate risk and the market value of the investments. Thus, the exposure to market risk is a function of investing and borrowing activities.

- Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Company''s borrowings are Interest free, So there has been no exposure arise regarding Interest Rate Risk.

(d) Price Risk Exposure

The Company''s exposure to securities price risk arises from investments held in mutual funds and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from such investments, the Company diversifies its portfolio. Further these are all debt base securities for which the exposure is primarily on account of interest rate risk. Quotes (NAV) of these investments are available from the mutual fund houses. Profit for the year would increase/decrease as a result of gains/losses on these securities classified as at fair value through profit or loss.

Others

- As informed by the management that the loans are interest free, which in our opinion is violation of Section 186 (7) of the Companies Act, 2013.

- Confirmation of the concerned parties for the amount due to them and/or due from them as per accounts of the company are not received. Necessary adjustments, if any, will be made when accounts are reconciled or settled. Balance of sundry debtors and creditors, loans and advances accepted and given in the balance sheet are subject to confirmation.

- In the opinion of board of directors the value of loans and advances and other current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in balance sheet.

- As regards the deferred payment credit from GIDC, the said amount is outstanding since 1992-93, the management has provided us with the explanation that as the GIDC has not provided titles of the land, the said deferred payment credit shall be payable as and when GIDC executes the lease deeds with the company. The foreside matter is in settlement during the year .

- There is carry forward of losses, the company need not to recognize deferred tax assets in the event of non-availability of convincing evidence as to future income.

- The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Recent Pronouncement :

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1, 2022, as below:

Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 116 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ''cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ''10 percent'' test of Ind AS 109 in assessing whether to derecognize a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 116 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

(vii) Utilisation of borrowed funds and Share Premium

(a) During the year, no funds have been 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 persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) Details of Crypto Currency or Virtual Currency

During the year the Company has not traded or invested in Crypto currency or Virtual Currency, hence disclosure

requirement is not applicable to the Company.

(ix) Compliance with number of layers of companies :

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

(x) Compliance with approved Scheme(s) of Arrangements

(xi) Utilisation of borrowed funds and Share Premium

(a) During the year, no funds have been 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 persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(xii) Details of Crypto Currency or Virtual Currency

During the year the Company has not traded or invested in Crypto currency or Virtual Currency, hence disclosure

requirement is not applicable to the Company.

(xiii) Compliance with number of layers of companies :

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

(xiv) Compliance with approved Scheme(s) of Arrangements

Company has not prepared any Scheme of Arrangements in terms of section 230 to 237 of the Companies Act, 2013.

For, Lesha Industries Ltd. For, KEYUR BAVISHI & CO.

(Chartered Accountants)

F RN '' 131191W

Shalin A. Shah Leena A. Shah Miteshkumar Rajgor Payal Hitesh Donga

Director Managing Director Company Secretary CFO

DIN :00297447 DIN :02629934

(CA KEYUR D. BAVISHI)

Proprietor

Date : 27/05/2024 M.No. : 136571

Place : Ahmedabad UDIN : 24136571BKBZQI5770

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Mar 31, 2015

1. During the current financial year 2014-15 the company has sold its IT devision to ECS Biz Tech P. Ltd. under the scheme of demerger approved by Hon'ble Gujarat High Court and accordingly cancelled 80,36,062 Equity Shares under the said scheme Company has allotted 68,17,400 Equity Shares during F.Y. 2009-10 to the Shareholders of Lesha Energy Resources Limited on aquiring the steel devision from the said company under the scheme of De-merger approved by the Hon'ble High Court of Gujarat.

The Company has not issued any Bonus Shares or Bought back any shares during the period of last five years immediately preceeding the Balance Sheet date.

2. Terms/rights attached to equity shares

The company has only one class of equity shares having par value of Rs.10 per share.Each holder of equity shares is entitled to one vote per share.The dividend,if any,proposed by the Board of Directors will be subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company,the holders of equity shares will be entitled to receive assets of the company remaining after settlement of all liabilities.

The Company has not received any intimation on suppliers regarding their status under the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 and hence disclosure as required under section 22 of The Micro, Small and Medium Enterprise regarding:

(a) Amount due and outstanding to suppliers as at the end of the accounting year;

(b) interest paid during the year;

(c) interest payable at the end of the accounting year;

(d) interest accrued and unpaid at the end of the accounting year;

have not been given , the company is making efforts to get the confirmation from the suppliers as regards their status under the said act.

3. Notes on Accounts Contingent Liabilities

There is no contingent liability as informed by management.

Capital Expenditure Commitments: Nil

4. Related Party Transactions:-

As per Accounting Standard (AS -18) issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties are given below:

List of related parties where control exists and related parties with whom transactions have taken place and relationships:

Sr No Name Relationship

1 Shalin A. Shah Director

2 Ashok C. Shah Director

3 Hitesh Donga Director

4 Daksha D Bhatt Director

5 Leena A. Shah Director's Relative

6 Gujarat Natural Resources Ltd. Associate Concern

7 Shree Ghantakarna Rolling Mills P. Ltd Associate Concern

8 Tanya Estate Pvt. Ltd. Associate Concern

9 Lesha Agro Food Pvt. Ltd Associate Concern

10 Ashnisha Alloys Pvt. Ltd Associate Concern

11 Shalin A. Shah HUF Director's Relative

5. Segment Reporting:

Accounting standards interpretation (ASI) 20 dated 14-02-2004, issued by the accounting standard board of ICAI, on AS-17, Segment reporting clarifies that in case by applying the definition of "Business Segment and Geographical Segment" given in AS-17, it is concluded that there the company has following business segments:

1 Trading of Steel Products

2 Trading of Electronics Products

3 Trading of Toys

4 Dealing in Shares & Securities

There is no secondary identifiable segment.

Information given in accordance with the requirement of Accounting Standard 17, on "Segment Reporting"

6. Earnings per Share:-

The earning considered in ascertaining the company's EPS comprises the profit available for shareholders i.e profit after tax and statutory/regulatory appropriations. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year as per the guidelines of AS-20.

Others;- * Details of loan made during the year 2014-15 as per section 186(4) of The Companies Act 2013 is as per Annexure -1

* Scheme of Arrangement: High Court has sanctioned the Scheme of Arrangement in the nature of De-merger between the company and M/s. ECS Biztech Pvt. Ltd. for the De-merger of I T Division of the Demerged Company. As a result of the Scheme, the Paid up Capital of the Company reduced from Rs.17,46,97,000/- to Rs.9,43,36,380/-. Further the shareholders of the Company gets 23 equity shares of Resulting Company for every 50 equity shares held by the shareholders of Demerged Company on the Record Date.

* In opinion of the management of the company, all loans, advances and deposits are recoverable in cash or kind for value to be received for which no provision is required. However in the opinion of the auditors, it shall be prudent to make sufficient provision for such non-performing assets amounting to Rs. 135.32 Lacs

* As informed by the management that the loans are interest free, which in our opinion is violation of Section 186 (7) of the Companies Act, 2013.

* Confirmation of the concerned parties for the amount due to them and/or due from them as per accounts of the company are not received. Necessary adjustments, if any, will be made when accounts are reconciled or settled. Balance of sundry debtors and creditors, loans and advances accepted and given in the balance sheet are subject to confirmation.

* In the opinion of board of directors the value of loans and advances and other current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in balance sheet.

* Balance with IDBI bank for Rs. 10,969/- is subject to confirmation as no details has been produced before us for the same.

* As regarding loans from GIDC , the said amount is outstanding since long, the management has provided us with the explanation that as the GIDC has not allotted them their land, the said loan is not repayable and the repayment will start once the GIDC will allots the plot to the company.

* As regards to the differed tax liability the company needs to reverse Rs. 30.45 L against opening reserves as the assets been transferred in the scheme of demerger. Also there is carry forward of losses, the company need not to recognize deferred tax assets in the event of non-availability of convincing evidence as to future income.

* Above Disclosure is made after taking into account the principle of materiality.

* The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

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Mar 31, 2014

1. The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is elligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend in the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

2. Company has not alloted any bonus shares and/or bought back any equity shares during the priod of five years immediately preceeding the Balance sheet date. However the company had allotted 68,17,400 Equity Shares during F.Y. 2009-10 to the Shareholders of Lesha Energy Resources Limited on acquiring the steel division from the said company under the Scheme of De-merger approved by the Hon''ble High Court of Gujarat

II. ADDITIONAL NOTES (Forming an integral part of Accounts)

1. Scheme of Arrangement : The company has filed petition in High Court u/s. 391 and 394 for sanction of the Scheme of Arrangement in the nature of De-merger between the company and M/ s. ECS Biztech Pvt. Ltd. for the De-merger of I T Division of the Demerged Company. The appointed date for the Scheme is 1st October, 2013.

As per the Scheme, upon coming in to effect of the Scheme, the Paid up Capital of the Company will be reduced from Rs. 17,46,97,000/- to Rs. 12,31,90,510/-. Further the shareholders of the Company will get 23 equity shares of Resulting Company for every 50 equity shares held by the shareholders of Demerged Company on the Record Date to be fixed by the Board in this regard.

2. In opinion of the management of the company, all loans, advances and deposits are recoverable in cash or kind for value to be received for which no provision is required. However in the opinion of the Auditors, it shall be prudent to make sufficient provision for such non performing assets amounting to Rs. 1,35,32,302/-.

3. In the opinion of the Board of Directors, the value of Loans and Advances and other current assets have a value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

4. Confirmation of concerned parties for the amount due to them and /or due from them as per accounts of the company are not received. Necessary adjustments if any will be made when accounts are reconciled or settled.

5. Wherever the vouchers / bills / invoices / challans etc. have not been adequately supported or are missing, the Management has certified that the transactions under question are genuine transactions. The Auditors have accepted such certification of the management.

6. As per Accounting Standard 18 the details of Related Party disclosure is as under:

Related Party :

Shalin A. Shah Managing Director

Ashok C. Shah Director

Keyoor Bakshi Director

Hitesh Donga Director

Leena A. Shah Director''s Relative

Gujarat Natural Resources Ltd. Associate Concern

Shree Ghantakarna Rolling Mills P. Ltd. Associate Concern

Tanya Estate Pvt. Ltd. Associate Concern

Lesha Agro Food Pvt. Ltd. Associate Concern

7. Segment Reporting:

Information given in accordance with the requirement of Accounting Standard 17, on "Segment Reporting".

Segment Results : Information about primary business segments :

8. Previous year figures have been regrouped and/or rearranged whenever necessary.

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Mar 31, 2013

1. In the opinion of the Board of Directors, the value of Loans and Advances and other current assets have a value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

2. Confirmation of concerned parties for the amount due to them and /or due from them as per accounts of the company are not received. Necessary adjustments if any will be made when accounts are reconciled or settled.

3. Wherever the vouchers / bills / invoices / challans etc. have not been adequately supported or are missing, the Management has certified that the transactions under question are genuine transactions. The Auditors have accepted such certification of the management.

4. Previous year figures have been regrouped and/or rearranged whenever necessary.

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Mar 31, 2012

1. The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is elligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend in the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

2. Company has not alloted any bonus shares and/or bought back any equity shares during the priod of five years immediately preceeding the Balance sheet date. However the company had allotted 68,17,400 Equity Shares during F.Y. 2009-10 to the Shareholders of Lesha Energy Resources Limited on acquiring the steel division from the said company under the Scheme of De-merger approved by the Hon'ble High Court of Gujarat

3. In the opinion of the Board of Directors, the value of Loans and Advances and other current assets have a value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

4. Confirmation of concerned parties for the amount due to them and /or due from them as per accounts of the company are not received. Necessary adjustments if any will be made when accounts are reconciled or settled.

5. Wherever the vouchers / bills / invoices / challans etc. have not been adequately supported or are missing, the Management has certified that the transactions under question are genuine transactions. The Auditors have accepted such certification of the management.

6. Segment Reporting:

The company's activities cover IT, Shares and Steel business. The activities pertains to steel business, share business and IT therefore there are three segment - Trading in Shares & Securities, Steel products and IT segment as required under Accounting Standard -17.

7. There is no Foreign exchange earning and outgo during the year.

8. Previous year comparatives:

Till the year ended 31st March, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification.

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Mar 31, 2009

1. In the opinion of the Board of Directors, the value of Loans and Advances and other current assets have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

2. Confirmation of concerned parties for the amount due to them and /or due from them as per accounts of the company are not received. Necessary adjustments if any will be made when accounts are reconciled or settled.

3. None of the employees are in receipt of the enunciable exceeding the limits specified u/s 217(2-A) of the companies Act, 1956

4. Wherever the vouchers / bills / invoices / challans etc. have not been adequately supported or are missing, the Management has certified that the transactions under question are genuine transactions. The Auditors have accepted such certification of the management.

5. In the opinion of the Board of Directors, no provision for diminution in the value of shares is required as the diminution is temporary and the investments are of long-term nature.

6. Since the company is not a manufacturing company, information required under clause 4c of part II of schedule VI of the companies act, 1956, has not been furnished.

7. There is no Foreign exchange earning and outgo during the year.

8. Previous year's figures were re-grouped and rearranged. wherever necessary.

9. Information pursuant to part IV of schedule VI is enclosed herewith.

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Mar 31, 2008

1. In the opinion of the Board of Directors, the value of Loans and Advances and other current assets have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

2. Confirmation of concerned parties for the amount due to them and /or due from them as per accounts of the company are not received. Necessary adjustments if any will be made when accounts are reconciled or settled.

3. None of the employees are in receipt of the remuneration exceeding the limits specified u/s (217(2-A) of the companies Act.1956.

4. Wherever the Voucher/bills/invoices/challans etc, have not been adequately supported or are missing, the management has certified that the transactions under question are genuine transactions. The Auditors have accepted such certification of the management.

5. In the opinion of the Board of Directors, on provision for diminution in the value of shares is required as the diminution is temporary and the investments are of long-tem nature.

6. Since the company is not a manufacturing company, information required under clause 4c of part II of Schedule VI of the companies act,1956, has not been furnished.

7. There is no Foreign exchange earning or outgo during the year.

8 Previous year's Figures were re-grouped and rearranged, wherever necessary.

9. Information pursuant to part IV of Schedule VI is enclosed herewith.