Notes to Accounts of Patel Integrated Logistics Ltd.

Mar 31, 2025

o. Provision and Contingencies:

i. Provisions

Provisions are recognised in accordance with the principles laid out under Ind AS 37 when the Company has a present legal
or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation, and a reliable estimate of the amount can be made.

Where the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the
risks specific to the liability. The unwinding of the discount is recognised as a finance cost in the Statement of Profit and Loss.

ii. Contingent Liabilities

A contingent liability, as defined under Ind AS 37, is disclosed where the existence of a present obligation is uncertain and
will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the control of the
Company, or where a present obligation does not meet the recognition criteria.

Claims considered frivolous or legally unsustainable, and where the likelihood of an outflow of resources is assessed to be
remote, are not disclosed as contingent liabilities.

iii. Contingent Assets

Contingent assets are not recognised in the financial statements in accordance with Ind AS 37. Such assets are disclosed
only when the realisation of income is virtually certain, in which case the related asset is recognised, not treated as contingent.

10.2 a) The balances of Trade Receivables have been reviewed and confirmed by the respective parties as at the balance sheet date,
except those forming part of the "Disputed Trade Receivables" disclosed separately.

b) The Company has evaluated the Expected Credit Loss (ECL) in accordance with Ind AS 109 - Financial Instruments and has
recognised a provision of ?168.00 lakhs (Previous Year: Nil) based on historical default experience, risk profile of customers,
and management estimates.

c) There are no receivables from directors or other officers of the company or firms/companies in which they are interested, as
defined under the Companies Act, 2013.

14.2 Rights, preferences and restrictions attached to the equity shares -

a) Right to receive dividend as may be approved by the Board of Directors/Annual General Meeting.

b) The Equity Shares are not repayable except in the case of a buyback, reduction of capital or winding up in terms of the
provisions of the Companies Act, 2013.

c) Every member of the Company holding equity shares has a right to attend the General Meeting of the Company and has a right
to speak and on a show of hands, has one vote if he is present in person and on a poll shall have the right to vote in proportion
to his share in the paid-up capital of the Company.

(ii) General Reserve: This represents appropriation from retained earnings for future expansion or to meet unforeseen contingencies.

(iii) Contingency Reserve: Represents appropriation for specific risks or regulatory provisions, created out of profits, and adjusted
during the year. The Contingency Reserve has been created in accordance with the Board''s internal policy, to provide for
contingencies that may arise in the course of business.

(iv) Retained Earnings: Represents cumulative surplus of the Statement of Profit and Loss after appropriations.

(v) Other Comprehensive Income: Represents unrealised gains/(losses) on investments in equity instruments designated as
FVTOCI, actuarial remeasurements, etc.

(vi) Share issue expenses of ?53.75 lakhs incurred on rights issue have been adjusted against the Securities Premium Reserve as
per Section 52 of the Companies Act, 2013.

(vii) During the previous financial year, the Company had forfeited 14,50,177 equity shares of ?10 each due to non-payment of
call money (Refer Note 47 [iii]). The amount originally received on these forfeited shares aggregating to ?36.25 lakhs was
transferred to the Securities Premium Reserve in accordance with the applicable provisions of the Companies Act, 2013 and
the Company''s Articles of Association.

31. Corporate Social Responsibility Expenditure:

As per Section 135 of the Companies Act, 2013, and the rules made thereunder, the Company has constituted a Corporate Social
Responsibility (CSR) Committee. However, based on the financial thresholds and net profit computation as per Section 198 of the Act,
the Company was not required to incur any CSR expenditure for the financial years ended 31st March 2025 and 31st March 2024.
Consequently, no amount has been spent towards CSR activities as specified in Schedule VII during the reporting period.

32. Earnings and Expenditure in Foreign Currency:

During the year, the Company has not earned any income in foreign currency. The foreign currency expenditure incurred during the
year amounted to ?0.60 lakhs (Previous Year: ?0.63 lakhs) towards subscription and membership fees. All other foreign currency
exposures have been translated and accounted for in accordance with Ind AS 21 on the Effects of Changes in Foreign Exchange
Rates.

33. Contingent Liabilities:

Contingent liabilities disclosed below represent possible obligations that arise from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. The
Company has not provided for these obligations as the possibility of outflow of resources is not considered probable as of the reporting
date.

34. Trade Receivable against whom the Company has filed the legal suits for recovery are being reviewed by the legal department on
year-to-year basis. The management is hopeful of recovery of these amounts.

35. Classification of Trade Receivable as secured and Trade Receivable / Loans and Advances as unsecured considered good are as
evaluated and certified by the management.

36. Balances of Trade Receivables are based on acknowledgement of bills by the parties.

37. Other Loans and Advances under Long Term Loans & Advances includes Inter Corporate Deposits aggregating to ? 128.27 Lakhs
(Previous Year ? 128.27 Lakhs) due from certain Companies. Having regards to the long-term association with these Companies, the
management is of the view that no provision is considered necessary on these accounts.

38. Segment Reporting:

The Company has identified the following reportable segments:

a) Co-loading of Air Freight - Primary business segment

b) Other Services - Gym and health supplement income, rental income

NOTES:

i. The godown deposit is treated as property deposit pending final outcome of application filed by the Company for
repossession in the Court of Additional Rent Controller, Central District, Tiz Hazari Court, New Delhi.

ii. There are no provisions for doubtful debts or amounts written off or written back during the year for debts due from or to
related parties.

40. Current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realised in the
ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably
necessary. There are no contingent liabilities other than those stated in Note No. 33.

41. The impact for adoption for IND-AS 116 in the Company''s financial statements is not material as the Company has not entered into a
long term lease agreement and the amount of lease rent paid is not of high value. However, the management will continue to assess
its impact every year and account for the same, if required, as per IND-AS 116.

42. Deferred Tax Assets have been accounted on the basis of reassessment of previously unrecognized Deferred Tax Asset to be
recovered.

44. Contingency Reserve:

During the year, the Company transferred ?900 lakhs from retained earnings (Profit and Loss account) to the Contingency Reserve,
in accordance with its policy to safeguard against unforeseen losses, including bad debts and other contingencies.

Subsequently, an amount of ?1,224.45 lakhs was transferred from the Contingency Reserve to the Statement of Profit and Loss.

This accounting treatment is in line with the Company''s accounting and reserve policy and is consistent with the applicable provisions
of Indian Accounting Standards (Ind AS).

47. Right Issue:

i. During the year the Company issued 50,00,000 Equity shares @ ? 18 Per shares including premium of ? 8 per share on rights
basis in the ratio of 8:103 to eligible equity shareholders holding shares on record date of 9th September,2024.

ii. The Company received ? 9 Crores against Rights Issue towards First and Final call money @ ? 18.00 per share including
premium of ? 4 Crores @ ? 8 per share. Out of the money received ? 6.25 Crores was utilised for repayment of borrowings,
? 2.75 Crores was utilised for General Corporate purposes and Rights issue expenses.

iii. During the previous year application money paid by the shareholders on 14,50,177 shares amounting to ? 36.25 lakhs @ 2.50
per share were forfeited as per the approval received on April 10,2023 as per the terms of Rights issue.

48. Crypto/Virtual Digital Assets

The Company has neither traded in nor invested in any Crypto/Virtual Digital Assets during the financial year ended March 31,2025.

Further, the Company does not hold any such assets as at the balance sheet date. Accordingly, no gain or loss has been recognized

in the Statement of Profit and Loss in respect of Crypto/Virtual Digital Assets during the year.

As per our report of even date

For Hitesh Shah & Associates For and on behalf of the Board of Directors,

Chartered Accountants
(Registration No. 103716W)

HITESH SHAH Syed Husain Mahesh Fogla Vikas Porwal

Partner Director Director Director

Membership No. 040999 DIN-3010306 DIN-05157688 DIN-10382199

UDIN: 25040999BMIPCW9447

Mumbai, Deepak Keni Avinash Paul Raj

Dated : May 20, 2025 Chief Financial Officer Company Secretary

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Mar 31, 2024

14.2 Rights, preferences and restrictions attached to the equity shares -

a) Right to receive dividend as may be approved by the Board of Directors/Annual General Meeting.

b) The Equity Shares are not repayable except in the case of a buyback, reduction of capital or winding up in terms of the provisions of the Companies Act, 2013.

c) Every member of the Company holding equity shares has a right to attend the General Meeting of the Company and has a right to speak and on a show of hands, has one vote if he is present in person and on a poll shall have the right to vote in proportion to his share in the paid-up capital of the Company.

16.1 Secured Term Loan from Banks referred above are secured by way of hypothecation of Motor Cars and Land and Structure of Bangalore Warehouse.

16.2 Previous Year Secured Term Loan from Other Financial Institute referred above is secured by 10 Flats located at Bangalore.

19.1 Working Capital Loans From Banks :

Secured by :

Pari Passu Hypothecation charges on all the present & future book debts (upto 120 days) and movable assets except those as statutorily earmarked and those acquired under hire purchase agreement.

Collateral Security -

- Equitable Mortgage of following properties owned situated at Mumbai and Thane.

1) Unit No. 601 to 608 & 611 of The Avenue, Andheri, Mumbai.

2) Office No. 101 to 105 of Parijat Garden Commercial Complex, Thane.

3) Shop No. F/3/008/Ground Floor of EFF Jumbo CHS Ltd., Andheri, Mumbai.

4) Unit No. 31, Ground Floor of Adarsh Industrial Estate, Andheri, Mumbai.

19.2 Working Capital Loans From Other Financial Institutions secured by shares and securities held as investments.

19.3 Current Maturities of Term Loan Liabilities are secured, refer Note No. 16.1 and Note No. 16.2.

32. Corporate Social Responsibility Expenditure :

As required by Section 135 of Companies Act, 2013 and Rules therein, a Corporate Social Responsibility Committee has been formed by the Company. The Company is not liable under the Act for contribution towards CSR in the FY 2023 - 24 and PY 2022 - 23. Hence no amount is spent during the year towards Corporate Social Responsibility (CSR) for activities listed under schedule VII of the Companies Act, 2013.

34. Contingent Liabilities :

i. Estimated amount of contracts remaining to be executed on capital expenditure and not provided for as on 31^st March, 2024 '' 25.00 Lakhs (Previous Year '' Nil).

ii. Counter guarantees given to Banks against credit facilities '' 353.15 Lakhs (Previous Year '' 353.15 Lakhs).

iii. Claims against the Company not acknowledged as debts '' 575.29 Lakhs (Previous Year '' 599.29 Lakhs).

iv. Income Tax appeal has been filed for AY 2021-22 against the demand of '' 10.00 Lakhs with CIT(A). GST appeal has been filed with Appellate Authority - Delhi for the demand of '' 89.74 lakhs for the FY 2017-18 and '' 5.07 lakhs for the FY 2018-19, and Appellate Authority- Madhya Pradesh for the demand of '' 21.62 lakhs for the FY 2017-18.

35. Trade Receivable against whom the Company has filed the legal suits for recovery are being reviewed by the legal department on year-to-year basis. The management is hopeful of recovery of these amounts.

36. Classification of Trade Receivable as secured and Trade Receivable / Loans and Advances as unsecured considered good are as evaluated and certified by the management.

37. Balances of Trade Receivables are based on acknowledgement of bills by the parties.

38. Other Loans and Advances under Long Term Loans & Advances includes Inter Corporate Deposits aggregating to '' 128.27 Lakhs (Previous Year '' 128.27 Lakhs) due from certain Companies. Having regards to the long-term association with these Companies, the management is of the view that no provision is considered necessary on these accounts.

39. Segment Reporting :

The Revenue is derived from multiple sources, however, the broad classification of revenue is done as under:

a) Co-loading of Air Freight is 99% of Total Revenue.

b) Others is 1% of Total Revenue, this includes (Membership and Subscription on Gym Service, Sale of Health related Supplements and Rent from Warehouse Services on Properties etc.).

40. Related Party Disclosures :

Related Parties have been classified as per Ind AS 24 as under:

A) Enterprises that directly or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise.

None

B) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them significant influence over the enterprise and relative of such individual.

Mr. Asgar S. Patel and his relatives as defined by the Act.

C) Key Management Personnel and Relatives of such personnel and his relatives as defined by the Act.

Mr. Mahesh Fogla

Ms. Jasmin Lalla (till 01.12.2023)

Mr. Vikas Porwal (w.e.f.01.12.2023)

Mr. Deepak Keni Mr. Avinash Paul Raj

i. The godown deposit is treated as property deposit pending final outcome of application filed by the Company for repossession in the Court of Additional Rent Controller, Central District, Tiz Hazari Court, New Delhi.

ii. There are no provisions for doubtful debts or amounts written off or written back during the year for debts due from or to related parties.

41. Current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 34.

42. The impact for adoption for IND-AS 116 in the Company''s financial statements is not material as the Company has not entered into a long term lease agreement and the amount of lease rent paid is not of high value. However, the management will continue to assess its impact every year and account for the same, if required, as per IND-AS 116.

43. Deferred Tax Assets have been accounted on the basis of reassessment of previously unrecognized Deferred Tax Asset to be recovered.

45. Contingency Reserve:

During the year, the Company has transferred '' 7 Crores from General Reserve to Contingency Reserve for the purpose of unforeseen losses including Bad Debts etc. and have transferred amount of '' 395 Lakhs in Profit and Loss statement.

* During the year the Company has transferred unclaimed/unpaid dividend outstanding for more than 7 years amounting to Rs 4.35 lakhs to Investor Education and Protection Fund A/c under Section 124(5) and Section 125(2) ( C ) of the Companies Act,2013.

48. Right Issue :

i. During the previous year the balance call money of '' 108.76 Lakhs @ '' 7.50 per share as per the terms of the right issue was called from the eligible shareholders as on the record date. Balance call money was not paid by 3759 shareholders holding 14,50,177 shares. Accordingly, application money paid by these shareholders amounting to '' 36.25 Lakhs @ '' 2.50 per share were forfeited during the year as per approval received on April 10, 2023 as per the terms of the Right Issue.

ii. During the previous year the Company has received '' 28.91 Crores against Rights Issue towards First and Final call money @ '' 7.50 per share. '' 2.81 Crores has been utilised towards payment of right issue expenses and general corporate purposes and the amount of '' 26.06 Crores is utilised for reducing debt and thereby saving interest cost. '' 0.04 Crores which is unspent is paid during the current year towards creditors against right issue expenses.

49. Previous year''s figures are regrouped/restated wherever required.

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Mar 31, 2018

1. Contingent Liabilities :

i. Estimated amount of contracts remaining to be executed on capital expenditure and not provided for as on 31st March, 2018 Rs, 3,24,06,422/- (Previous Year Rs, 5,25,154/-).

ii. Counter guarantees given to Banks and to Mr. Areef Patel, Executive Vice Chairman for guarantees provided by them against credit facilities Rs, 79,04,25,000/- (Previous Year Rs, 77,10,05,000/-), for which no monetary benefit has accrued to Mr. Areef Patel, Executive Vice Chairman.

iii. Claims against the Company not acknowledged as debts Rs, 5,09,65,329/- (Previous Year Rs, 6,08,16,950/-).

2. Trade Receivable against whom the Company has filed the legal suits for recovery are being reviewed by the legal department on year-to-year basis. The Management is hopeful of recovery of these amounts. Accordingly no provision has been made for any loss, which may occur on this account.

3. Classification of Trade Receivable as secured and Trade Receivable / loans and advances as unsecured considered good are as evaluated and certified by the management, which has been relied upon by the auditors.

4. Balances of Trade Receivable, Trade Payable and certain loans and advances are based on acknowledgment of bills by the parties.

5. Other Loans and Advances under Long Term Loans & Advances includes Inter Corporate Deposits aggregating to Rs, 1,28,27,000/-(Previous Year Rs, 1,28,27,000/-) due from certain companies. Having regards to the long-term association with these companies, the management is of the view that no provision is considered necessary on these accounts.

6. Related Party Disclosures :

Related Parties have been classified as per Ind AS 24 as under:

A) Enterprises that directly or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise.

DelivrEx India Limited (Wholly Owned Subsidiary)

B) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them significant influence over the enterprise, and relative of such individual.

Mr. Asgar S. Patel and his relatives as defined by the Act.

C) Key Management Personnel and relatives of such personnel and his relatives as defined by the Act.

Mr. Areef Patel

Mr. Mahesh Fogla Mr. Nitin Akolkar

D) Enterprises over which any person described in (A) or (B) is able to exercise significant influence

a) Wall Street Securities & Investment (India) Ltd.

b) Transways Combines Pvt. Ltd.

c) Patel Real Estate Developers Pvt. Ltd.

d) One Capitall Ltd.

e) Patel Holdings Ltd.

f) Wall Street Derivatives and Financial Services (India) Pvt. Ltd.

g) Natasha Constructions Pvt. Ltd.

h) Natasha Homes Pvt. Ltd.

i) Natasha Construction Projects Pvt. Ltd. j) A. S. Patel Trust

k) Goldman (Patel Family) Beneficiaries Trust.

7. Previous year''s figures are regrouped/restated wherever required.

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Mar 31, 2016

1 During the current year 7,00,000 Equity Shares of Rs. 10/- each at the premium of Rs. 105/- were issued on preferential basis on 14th January, 2016. The pricing and procedure were in accordance with the requirement of Chapter VII of the SEBI (ICDR) regulations 2009, Section 42 and 62 of Companies Act, 2013 and Rule 14 of the Companies (prospectus and allotment of securities) Rules, 2014.

2. Rights, preferences and restrictions attached to the equity shares -

The Company has one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

3. Contingent Liabilities

i. Estimated amount of contracts remaining to be executed on Capital Expenditure and not provided for as on 31st March, 2016 Rs. 5,25,154/- (Previous Year Rs. 5,70,904/-).

ii. Counter guarantees given to Banks and to Mr. Areef Patel, Executive Vice Chairman for guarantees provided by them against credit facilities Rs. 69,19,22,590/- (Previous Year Rs. 57,57,21,924/-), for which no monetary benefit has accrued to Mr. Areef Patel, Executive Vice Chairman.

iii. Claims against the Company not acknowledged as debts Rs. 91,20,000/- (Previous Year Rs. 85,70,000/-).

iv. On Account of CSR Rs. 16,70,000/-.

4. Trade Receivable against whom the Company has filed the legal suits for recovery are being reviewed by the legal department on year-to-year basis. The Management is hopeful of recovery of these amounts. Accordingly no provision has been made for any loss, which may occur on this account.

5. Classification of Trade Receivable as secured and Trade Receivable / Loans and Advances as unsecured considered good are as evaluated and certified by the management, which has been relied upon by the auditors.

6. Balances of Trade Receivable, Trade Payable and certain Loans and Advances are subject to confirmation / reconciliation and adjustments, if any in respect thereof.

7. Other Loans and Advances under Long Term Loans & Advances includes Inter Corporate Deposits aggregating to Rs. 1,28,27,000/- (Previous Year Rs. 1,38,27,000/-) due from certain Companies. Having regards to the long-term association with these companies, the management is of the view that no provision is considered necessary on these accounts.

8. Trade Receivable outstanding in Company books for Franchisee locations are collected by the Company, as agent on behalf of the Franchisee.

9. Related Party Disclosures :

Related Parties have been classified as per Accounting Standards of Institute of Chartered Accountants of India as under:

A) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them significant influence over the enterprise, and relative of such individual (Clause 3(c) of AS 18):

Mr. Asgar S. Patel and his relatives within the meaning of Clause 10.9 of AS 18.

B) Key Management Personnel and relatives of such personnel ( Clause 3(d) of AS18):

Mr. Areef Patel and his relatives within the meaning of Clause 10.9 of AS 18.

C) Enterprises over which any person described in (A) or (B) is able to exercise significant influence (Clause 3(e) of AS 18):

a) Wall Street Securities & Investment (India) Ltd.

b) Transways Combines Pvt. Ltd.

c) Patel Real Estate Developers Pvt. Ltd.

d) One Capital Ltd.

e) Patel Holdings Ltd.

f) Wall Street Derivatives and Financial Services (India) Pvt. Ltd.

g) Natasha Constructions Pvt. Ltd.

h) Natasha Homes Pvt. Ltd.

i) Natasha Construction Projects Pvt. Ltd. j) A. S. Patel Trust

k) Goldman (Patel Family) Beneficiaries Trust

NOTES :

i. The godown deposit is treated as property deposit pending final outcome of the revision petition filed by the Company before Juridical Authorities.

ii. There are no provisions for doubtful debts or amounts written off or written back during the year for debts due from or to related parties.

iii. The ICD taken from related party was prior to the commencement of section 188 of Companies Act, 2013.

10. In the opinion of the Board, current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 29.

11. Previous year’s figures are regrouped/restated wherever required.

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Mar 31, 2015

1. Rights, preferences and restrictions attached to the equity shares :

The Company has one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

2. Deferred payment liabilities referred above are secured by way of mortgage of trucks and motor cars.

3. Term loan liability referred above is secured by office building.

4. Working Capital Loans From Banks :

Secured by:

Pari Passu Hypothecation charges on all the present & future book debts (Less than 90 Days) and movable assets other than those acquired under hire purchase agreement.

Collateral Security -

* Personal Gurantee of Wholetime Director designated as Executive Vice Chairman.

* Equitable Mortgage of certain properties owned situated at Mumbai and Thane.

5. The Company has not received any intimation from its Vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosure, if any under the said Act has not been made.

6. Building includes Rs. 250/- in respect of shares held in the Society.

7. Buildings worth Rs. 58,77,423/- included in Gross Block are revalued on the basis of the replacement value as at 30.06.1987 and the office premises worth Rs. 2,48,44,368/- included in Gross Block are revalued on the basis of the replacement value as at 31.03.1993. They are stated at revalued figures less accumulated depreciation.

8. Land is revalued in previous years on the basis of surveyors valuation report.

9. Computer software - Refer note No. 1 (b)(v).

10. As per the requirement of the provisions of Schedule II of the Companies Act, 2013 (the "Act"), the Management has decided to adopt the useful lives as suggested in Part C of Schedule II of the Act with effect from 1st April, 2014 for all its fixed assets. In accordance with the transitional provisions to Part C of Schedule II of the Act, the Company has adjusted an amount of Rs. 3,30,58,946/- (net off deferred tax of Rs. 1,58,77,396/-) against retained earnings as at 1st April, 2014.

11. The provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 are become applicable to the company only at the end of the financial year i.e. on 31st March, 2015 upon meeting the threshold criteria of net profit of Rs. 5.00 crore or more and hence the Company had not spend any amount towards the CSR activities in the financial year 2014-15.

12. Contingent Liabilities

i. Estimated amount of contracts remaining to be executed on capital expenditure and not provided for as on 31st March, 2015 Rs.5,70,904/- (Previous Year Rs. 10,02,420/).

ii. Counter guarantees given to Banks and to Mr. Areef Patel, Executive Vice Chairman for guarantees provided by them against credit facilities Rs. 57,57,21,924/- (Previous Year Rs. 67,84,98,925/-), for which no monetary benefit has accrued to Mr. Areef Patel, Executive Vice Chairman.

iii. Claims against the Company not acknowledged as debts Rs. 85,70,000/- (Previous Year Rs. 76,10,000/-).

13. Sundry Debtors against whom the Company has filed the legal suits for recovery are being reviewed by the legal department on year-to-year basis. The Management is hopeful of recovery of these amounts. Accordingly no provision has been made for any loss, which may occur on this account.

14. Classification of debtors as secured and debtors / loans and advances as unsecured considered good are as evaluated and certified by the management, which has been relied upon by the auditors.

15. Balances of sundry debtors, sundry creditors and certain loans and advances are subject to confirmation / reconciliation and adjustments, if any in respect thereof.

16. Other Loans and Advances under Long Term Loans & Advances includes Inter Corporate Deposits aggregating to Rs. 1,38,27,000/- (Previous Year Rs. 2,94,27,000/-) due from certain companies. Having regards to the long-term association with these companies, the management is of the view that no provision is considered necessary on these accounts.

17. Trade Receivable outstanding in Company Books for Franchisee locations are collected by the Company, as agent on behalf of the Franchisee.

18. Related party disclosures : -

Related Parties have been classified as per Accounting Standards of Institute of Chartered Accountants of India as under:

A) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them significant influence over the enterprise, and relative of such individual (Clause 3(c) of AS 18):

Mr. Asgar S. Patel and his relatives within the meaning of Clause 10.9 of AS 18.

B) Key Management Personnel and relatives of such personnel (Clause 3(d) of AS18):

Mr. Areef Patel and his relatives within the meaning of Clause 10.9 of AS 18.

C) Enterprises over which any person described in (A) or (B) is able to exercise significant influence (Clause 3(e) of AS 18):

a) Wall Street Securities & Investment (India) Ltd.

b) Transways Combines Pvt. Ltd.

c) Patel Real Estate Developers Pvt. Ltd.

d) One Capitall Ltd.

e) Patel Holdings Ltd.

f) Wall Street Derivatives and Financial Services (India) Pvt. Ltd.

g) Natasha Constructions Pvt. Ltd.

h) Natasha Homes Pvt. Ltd.

i) Natasha Construction Projects Pvt. Ltd.

j) A. S. Patel Trust

k) Goldman (Patel Family) beneficiaries Trust.

19. In the opinion of the Board, current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 28.

20. Previous year's figures are regrouped/restated wherever required.

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Mar 31, 2014

1 Contingent Liabilities

i. Estimated amount of contracts remaining to be executed on capital account and not provided for as on 31st March, 2014 Rs.10,02,420/- (Previous Year Rs. 11,02,420/-).

ii. Counter guarantees given to Banks, A S Patel Trust and to Mr. Areef Patel, Executive Vice Chairman for guarantees provided by them against credit facilities Rs. 67,84,98,925/- (Previous Year Rs. 67,89,21,924/-).

iii. Claims against the Company not acknowledged as debts Rs. 76,10,000/- (Previous Year Rs. 81,20,000/-).

2 Sundry Debtors against whom the Company has fi led the legal suits for recovery are being reviewed by the legal department on year-to-year basis. The Company is hopeful of recovery of these amounts. Accordingly no provision has been made for any loss, which may occur on this account.

3 Classification of debtors as secured and debtors / loans and advances as unsecured considered good are as evaluated and certifi ed by the management, which has been relied upon by the auditors.

4 Balances of sundry debtors, sundry creditors and certain loans and advances are subject to confi rmation / reconciliation and adjustments, if any in respect thereof.

5 Other Loans and Advances under Long Term Loans & Advances includes Inter Corporate Deposits aggregating to Rs.2,94,27,000 /- (Previous Year Rs. 2,94,27,000/-) due from certain companies.Having regards to the long-term association with these companies, the management is of the view that no provision is considered necessary on these accounts.

6 Trade Receivable outstanding in Company Books for Franchisee locations are collected by the Company, as agent on behalf of the Franchisee.

7 Disclosure as per Accounting Standard – 29 – Provisions, Contingent Liabilities and Contingent Assets issued by the Institute of Chartered Accountants of India :

Provisions for claims for damage obligations (legal or otherwise) including provision for claims for damages, leakages, shortage and non-delivery of consignments are on account of routine matters where the Company anticipates probable outfl ow. The claims in respect of which legal suits are fi led against the company are fully provided on the basis of legal suit amounts. For the other claims the amount of provision is based on the estimate made by the Company considering the facts and circumstances of each case. The timing and the amount of cash outfl ows that will arise from these matters will be determined only on settlement of actual cases and claims with the respective parties.

8 Related party disclosures : -

Related Parties have been classifi ed as per Accounting Standards of Institute of Chartered Accountants of India as under:

A) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them signifi cant infl uence over the enterprise and relative of such individual (Clause 3(c) of AS 18).

Mr. Asgar S. Patel and his relatives within the meaning of section 6 read with Schedule IA of the Companies Act, 1956.

B) Key Management Personnel and relatives of such personnel ( Clause 3(d) of AS 18)

Mr. Areef Patel and his relatives within the meaning of section 6 read with Schedule IA of the Companies Act,1956.

C) Enterprises over which any person described in (A) or (B) is able to exercise signifi cant infl uence (Clause 3(e) of AS 18)

a) Wall Street Securities & Investment (India) Ltd.

b) Transways Combines Pvt. Ltd.

c) Patel Real Estate Developers Pvt. Ltd.

d) One Capitall Ltd.

e) Patel Holdings Ltd.

f) Wall Street Derivatives and Financial Services (India) Pvt. Ltd.

g) Natasha Constructions Pvt. Ltd. h) Natasha Homes Pvt. Ltd.

i) Natasha Construction Projects Pvt. Ltd.

j) A. S. Patel Trust

k) Goldman (Patel Family) Beneficiaries Trust

9 In the opinion of the Board, current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 27.

10 Previous year''s figures are regrouped/restated wherever required.

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Mar 31, 2013

1. Reissue of Forfeited Equity Shares:

During the previous year the Company has received funds by way of reissue of forfeited equity shares aggregating to Rs. 28,94,400/-. The said proceeds have been fully utilized during the year towards working capital requirements.

2. Contingent Liabilities

i. Estimated amount of contracts remaining to be executed on capital account and not provided for as on 31st March, 2013 Rs. 11,02,420/- (Previous Year Rs. 16,52,420/-).

ii. Counter guarantees given to Banks, A S Patel Trust and to Mr. Areef Patel, Executive Vice Chairman for guarantees provided by them against credit facilities Rs. 67,89,21,924/-(Previous Year Rs. 54,62,88,045/-).

iii. Claims against the Company not acknowledged as debts Rs. 81,20,000/- (Previous Year Rs. 55,54,000/-).

3. Sundry Debtors against whom the Company has fled the legal suits for recovery are being reviewed by the legal department on year-to-year basis. The Company is hopeful of recovery of these amounts. Accordingly no provision has been made for any loss, which may occur on this account.

4. Classifcation of debtors as secured and debtors / loans and advances as unsecured considered good are as evaluated and certifed by the management, which has been relied upon by the auditors.

5. Balances of sundry debtors, sundry creditors and certain loans and advances are subject to confrmation / reconciliation and adjustments, if any in respect thereof.

6. Other Loans and Advances under Long Term Loans & Advances includes Inter Corporate Deposits aggregating to Rs. 2,94,27,000/- (Previous Year Rs. 2,94,27,000/-) due from certain companies. Having regards to the long-term association with these companies, the management is of the view that no provision is considered necessary on these accounts.

7. Related party disclosures : -

Related Parties have been classifed as per Accounting Standards of Institute of Chartered Accountants of India as under :

A) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them signifcant infuence over the enterprise, and relative of such individual (Clause 3(c) of AS 18).

Mr. Asgar S. Patel and his relatives within the meaning of section 6 read with Schedule IA of the Companies Act, 1956.

B) Key Management Personnel and relatives of such personnel ( Clause 3(d) of AS18).

Mr. Areef Patel and his relatives within the meaning of section 6 read with Schedule IA of the Companies Act,1956.

C) Enterprises over which any person described in (A) or (B) is able to exercise signifcant infuence (Clause 3(e) of AS 18)

a) Wall Street Securities & Investment (India) Ltd.

b) Transways Combines Pvt. Ltd.

c) Patel Real Estate Developers Pvt. Ltd.

d) One Capitall Ltd.

e) Patel Holdings Ltd.

f) Wall Street Derivatives and Financial Services (India) Pvt. Ltd.

g) Natasha Constructions Pvt. Ltd. h) Natasha Homes Pvt. Ltd.

i) Natasha Construction Projects Pvt. Ltd.

j) A. S. Patel Trust

k) Goldman (Patel Family) benefciaries Trust.

8. In the opinion of the Board, current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 28.

9. Previous year''s fgures are regrouped/restated wherever required.

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Mar 31, 2012

1.1 During the current year, 1,07,200 forfeited equity shares of Rs.10/- each at the premium of Rs.17/- each were reissued on preferential basis on 3rd November, 2011.The pricing was in accordance with guidelines prescribed by SEBI (ICDR) Regulations, 2009 for Preferential Allotment.

1.2 Paid up capital of Previous year includes Rs. 4,47,500/- paid up on forfeited shares.

1.3 During the year 2007-08, 18,00,000 Equity shares of Rs.10/- each at the premium of Rs.64/- each were issued on preferential basis on 15th February, 2008. The pricing was in accordence with SEBI (DIP) Guidelines, 2000 for Preferential Allotment.

1.4 Rights, preferences and restrictions attached to the equity shares

The Company has one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

2.1 Overdraft and cash credit facilities from banks :

Secured by :

Pari Passu Hypothecation charges on all the present & future book debts and movable assets other than those acquired under hire purchase agreement.

Collateral Security -

- Personal Gurantee of Wholetime Director designated as Executive Vice Chairman.

- Equitable Mortgage of certain properties :

a) Situated at Mumbai

b) Owned by Promoter Company & Associate situated at Mumbai.

3.1 The Company has not received any intimation from its Vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosure, if any under the said Act has not been made.

4.1 Building includes Rs. 250/- in respect of shares held in the Society

4.2 Buildings worth Rs.58,77,423/- included in Gross Block are revalued on the basis of the replacement value as at 30.06.1987 and the office premises worth Rs.2,48,44,368/- included in Gross Block are revalued on the basis of the replacement value as at 31.03.1993. They are stated at revalued figures less accumulated depreciation.

4.3 Computer software - Refer note No. 1 ( b )( v )

5. Reissue of Forfeited Equity Shares:

During the year the Company has received funds by way of reissue of forfeited equity shares aggregating to Rs. 28,94,400/- and has been kept as fixed deposits with bank as on the date of the balance sheet.

6. Contingent Liabilities

i. Estimated amount of contracts remaining to be executed on capital account and not provided for as on 31st March, 2012 Rs. 16,52,420/- (Previous Year Rs. 20,77,420/-).

ii. Counter guarantees given to banks and to Mr. Areef A. Patel, Executive Vice Chairman for guarantees provided by them against credit facilities Rs. 54,62,88,045/- (Previous Year Rs. 52,93,74,970/-).

iii. Claims against the Company not acknowledged as debts Rs.55,54,000/- (Previous Year Rs. 49,62,000/-).

7. Sundry Debtors against whom the Company has filed the legal suits for recovery are being reviewed by the legal department on year-to-year basis. The Company is hopeful of recovery of these amounts. Accordingly no provision has been made for any loss, which may occur on this account.

8. Classification of debtors as secured and debtors / loans and advances as unsecured considered good are as evaluated and certified by the management, which has been relied upon by the auditors.

9. Balances of sundry debtors, sundry creditors and certain loans and advances are subject to confirmation / reconciliation and adjustments, if any in respect thereof.

10. Other Loans and Advances under Long Term Loans & Advances includes Inter Corporate Deposits aggregating to Rs. 2,94,27,000/- (Previous Year Rs. 3,02,86,244/-) due from certain companies. Having regards to the long- term association with these companies, the management is of the view that no provision is considered necessary on these accounts.

11. Miscellaneous operating expenses and sundry expenses include fines and penalties of Rs NIL (Previous Year Rs. 2,800/-).

Provisions for claims for damage obligations (legal or otherwise) including provision for claims for damages, leakages, shortage and non-delivery of consignments are on account of routine matters where the Company anticipates probable outflow. The claims in respect of which legal suits are filed against the company are fully provided on the basis of legal suit amounts. For the other claims the amount of provision is based on the estimate made by the Company considering the facts and circumstances of each case. The timing and the amount of cash outflows that will arise from these matters will be determined only on settlement of actual cases and claims with the respective parties.

12. Related party disclosures : -

Related Parties have been classified as per Accounting Standards of Institute of Chartered Accountants of India as under:

A) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them significant influence over the enterprise, and relative of such individual (Clause 3(c) of AS 18).

Mr. Asgar S. Patel and his relatives within the meaning of section 6 read with Schedule IA of the Companies Act, 1956.

B) Key Management Personnel and relatives of such personnel ( Clause 3(d) of AS18)

Mr. Areef Patel and his relatives within the meaning of section 6 read with Schedule IA of the Companies Act,1956.

C) Enterprises over which any person described in (A) or (B) is able to exercise significant influence (Clause 3(e) of AS 18)

a) Wall Street Securities & Investment (India) Ltd.

b) Transways Combines Pvt. Ltd.

c) Patel Real Estate Developers Pvt. Ltd.

d) One Capitall Ltd.

e) Patel Holdings Ltd.

f) Wall Street Derivatives and Financial Services (India) Pvt. Ltd.

g) Natasha Constructions Pvt. Ltd.

h) Natasha Homes Pvt. Ltd.

i) Natasha Construction Projects Pvt. Ltd.

j) A. S. Patel Trust

k) Goldman (Patel Family) beneficiaries Trust.

NOTES :

i. Mr. Areef Patel, Executive Vice Chairman has given his personal guarantee in favour of Banks against overdrafts and cash credit facilities to the extent of Rs.49,85,00,000/- sanctioned to the Company, for which no monetary benefit has accrued to him.

ii. There are no provisions for doubtful debts or amounts written off or written back during the year for debts due from or to related parties.

13. In the opinion of the Board, current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 28.

14. Previous year's figures are regrouped/restated wherever required.

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Mar 31, 2011

1. Scheme of Amalgamation of Springfield Hotels Pvt. Ltd with the Company :

During the previous year ended 31st March, 2010, Springfield Hotels Pvt. Ltd. (SHPL) has ceased to be a wholly owned subsidiary of the Company, as the Hon’ble High Court of Judicature at Bombay, vide its order dated 10th July 2009 has approved the Scheme of Amalgamation of SHPL with the Company. According to the scheme, SHPL stands dissolved without being wound up from the Effective Date i.e. from 20th August 2009.

2. Equity Shares and Warrants :

During the year 2007-08 the Company had received funds by way of Preferential Allotment of Equity shares and Equity warrants aggregating to Rs.13,91,20,000/. Out of the said proceeds Rs.5,26,63,947/- has been utilized towards purchase of fixed assets, Rs.8,64,56,053/- has been utilized towards meeting capital expenditure and other Corporate Initiatives till date and balance now is NIL. Share Warrant application money of Rs.59,20,000/- has been forfeited during the previous year and consequently the amount has been transferred to Capital Reserve Account.

3. Contingent Liabilities

i. Estimated amount of contracts remaining to be executed on capital account and not provided for as on 31st March, 2011 Rs.20,77,420/- (Previous Year Rs.21,77,420/-).

ii. Counter guarantees given to banks and others for guarantees provided by them against credit facilities Rs.52,93,74,970/- (Previous Year Rs.4,66,58,045/-).

iii. Claims against the Company not acknowledged as debts Rs.49,62,000/- (Previous Year Rs. 54,00,000/-).

4. The Company has not received any intimation from its vendors regarding their status under Micro, Small and Medium Enterpirses Development Act, 2006 and hence the disclosures, if any under the said Act have not been made.

5. Fixed Deposits of Rs. 3,41,47,337/- (Previous Year Rs. 3,31,75,127/-) has been placed as security with the banks against bank guarantees / credit facilities extended by them.

6 a) Sundry debtors include overdue lease debtor of Rs.5,00,000/- (Previous Year Rs.15,00,000/-). The management is confident of recovery and has taken steps to recover the same, including legal action against the party. Considering the security available with the Company and the outcome of recovery process, no provision is considered necessary by the management against the said outstanding.

b) Sundry Debtors against whom the Company has fled the legal suits for recovery are being reviewed by the legal department on year-to-year basis. The Company is hopeful of recovery of these amounts. Accordingly no provision has been made for any loss, which may occur on this account.

7. Classification of debtors as secured and debtors / loans and advances as unsecured considered good are as evaluated and certified by the management, which has been relied upon by the auditors.

8. Balances of sundry debtors, sundry creditors and certain loans and advances are subject to confirmation / reconciliation and adjustments, if any in respect thereof.

9. Loans & advances includes inter corporate deposits (along with interest accrued and due thereon) aggregating to Rs. 4,12,98,447/- (Previous Year Rs. 4,00,19,181/-) due from certain companies. Having regards to the long-term involvement in these companies, the management is of the view that no provision is considered necessary on these accounts.

10. Miscellaneous operating expenses and sundry expenses include fines and penalties of Rs 2,800/- (Previous Year Rs. 5,800/-).

11. Disclosure as per Accounting Standard – 29 – Provisions, Contingent Liabilities and Contingent Assets issued by the Institute of Chartered Accountants of India :

Provisions for claims for damage obligations (legal or otherwise) including provision for claims for damages, leakages, shortage and non-delivery of consignments are on account of routine matters where the Company anticipates probable outfow. The claims in respect of which legal suits are fled against the company are fully provided on the basis of legal suit amounts. For the other claims the amount of provision is based on the estimate made by the Company considering the facts and circumstances of each case. The timing and the amount of cash outfows that will arise from these matters will be determined only on settlement of actual cases and claims with the respective parties.

12. Managerial Remuneration:

The Managerial Remuneration paid to Mr. Areef Patel, Whole-time Director, designated as Executive vice Chairman, for the year ended March 31, 2011 is under provision of section 269 read with Schedule XIII of the Companies Act, 1956 and is within the limits envisaged under part B of Clause 1 of Section II of Part II of the said Schedule XIII.

13. Related party disclosures

Related Parties have been classifed as per Accounting Standards of Institute of Chartered Accountants of India as under :

A) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them signifcant infuence over the enterprise, and relative of such individual (Clause 3(c) of AS 18).

Mr. Asgar S. Patel and his relatives within the meaning of section 6 read with Schedule IA of the Companies Act, 1956.

B) Key Management Personnel and relatives of such personnel ( Clause 3(d) of AS18)

Mr. Areef Patel and his relatives within the meaning of section 6 read with Schedule IA of the Companies Act,1956.

C) Enterprises over which any person described in (A) or (B) is able to exercise signifcant infuence (Clause 3(e) of AS 18)

a) Wall Street Securities & Investment (India) Ltd.

b) Transways Combines Pvt. Ltd.

c) Patel Real Estate Developers Pvt. Ltd.

d) One Capitall Ltd.

e) Patel Holdings Ltd.

f) Wall Street Derivatives and Financial Services (India) Pvt. Ltd.

g) Natasha Constructions Pvt. Ltd.

h) Natasha Homes Pvt. Ltd.

i) Natasha Construction Projects Pvt. Ltd.

j) A. S. Patel Trust

k) Goldman (Patel Family) Benifciaries Trust

---

Mar 31, 2010

1. Scheme of Amalgamation of Springfeld Hotels Pvt. Ltd with the Company :

During the year ended 31st March, 2010, Springfeld Hotels Pvt. Ltd. (SHPL) has ceased to be a wholly owned subsidiary of the Company, as the Honble High Court of Judicature at Bombay, vide its order dated 10th July 2009 has approved the Scheme of Amalgamation of SHPL with the Company. According to the scheme, SHPL stands dissolved without being wound up from the Effective Date i.e. from 20th August 2009.

2. Equity Shares and Warrants :

During the year 2007-08 the Company had received funds by way of Preferential Allotment of Equity shares and Equity warrants aggregating to Rs.13,91,20,000/. Out of the said proceeds Rs.5,26,63,947/- has been utilized towards purchase of fxed assets, Rs.8,09,36,053/- has been utilized toward working capital and other Corporate Initiatives till date and balance Rs.55,20,000/- is kept with Banks. Share Warrant application money of Rs.59,20,000/- has been forfeited during the year and consequently the amount has been transferred to capital reserve account.

3. Contingent Liabilities

i. Estimated amount of contracts remaining to be executed on capital account and not provided for as on 31st March, 2010 Rs.21,77,420/- (Previous Year Rs.25,17,823/-).

ii. Counter guarantees given to banks and others for guarantees provided by them against credit facilities Rs.4,66,58,045/-(Previous Year Rs.6,07,34,945/-).

iii. Claims against the Company not acknowledged as debts Rs.54,00,000/- (Previous Year Rs.53,25,000/-).

4. The Company has not received any intimation from its Vendors regarding their status under Micro, Small and Medium Enterpirses Development Act, 2006 and hence the disclosures, if any under the said Act have not been made.

5. Fixed Deposits of Rs.3,31,75,127/- (Previous Year Rs.2,87,78,387/-) has been placed as security with the banks against bank guarantees / credit facilities extended by them.

6. a) Sundry debtors include overdue lease debtor of Rs.15,00,000/-(Previous Year Rs.15,00,000/-). The management is confdent of recovery and has taken steps to recover the same, including legal action against the party. Considering the security available with the Company and the outcome of recovery process, no provision is considered necessary by the management against the said outstanding.

b) Sundry Debtors against whom the Company has fled the legal suits for recovery are being reviewed by the legal department on year-to-year basis. The Company is hopeful of recovery of these amounts. Accordingly no provision has been made for any loss, which may occur on this account.

7. Classifcation of debtors as secured and debtors / loans and advances as unsecured considered good are as evaluated and certifed by the management, which has been relied upon by the auditors.

8. Balances of sundry debtors, sundry creditors and certain loans and advances are subject to confrmation / reconciliation and adjustments, if any in respect thereof.

9. Loans & advances includes inter corporate deposits (along with interest accrued and due thereon) aggregating to Rs.4,00,19,181/-(Previous Year Rs.2,32,89,442/-) due from certain companies. Having regards to the long-term involvement in these companies, the management is of the view that no provision is considered necessary on these accounts.

10. Miscellaneous operating expenses and sundry expenses include fnes and penalties of Rs.5,800/- (Previous Year Rs.20,240/).

11. During the previous year, it was reported that one of the Senior Offcers of the Company perpetrated some dealings with outside parties ( not related with the Company), resulting in misappropriation of funds of such parties. The facts were reported and a F.I.R was lodged with the Police. Currently, the matter is subjudice.Financial implications on the Company, if any, are not ascertainable at the date of this Report.

Provisions for claims for damage obligations (legal or otherwise) including provision for claims for damages, leakages, shortage and non-delivery of consignments are on account of routine matters where the Company anticipates probable outfow. The claims in respect of which legal suits are fled against the company are fully provided on the basis of legal suit amounts. For the other claims the amount of provision is based on the estimate made by the Company considering the facts and circumstances of each case. The timing and the amount of cash outfows that will arise from these matters will be determined only on settlement of actual cases and claims with the respective parties.

The Managerial Remuneration paid to Mr. Areef Patel, Whole-time Director, designated as Executive Vice Chairman, for the year ended March 31, 2010 is under provision of section 269 read with schedule XIII of the Companies Act, 1956 and is within the limits envisaged under part B of clause 1 of section II of part II of the said schedule XIII.

12. Related party disclosures

Related Parties have been classifed as per Accounting Standards of Institute of Chartered Accountants of India as under :

A) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them signifcant infuence over the enterprise, and relative of such individual (Clause 3(c) of AS 18):

Mr. Asgar S. Patel and his relatives within the meaning of section 6 read with Schedule IA of the Companies Act, 1956;

B) Key Management Personnel and relatives of such personnel ( Clause 3(d) of AS18):

Mr. Areef Patel and his relatives within the meaning of section 6 read with Schedule IA of the Companies Act,1956.

C) Enterprises over which any person described in (A) or (B) is able to exercise signifcant infuence (Clause 3(e) of AS 18):

a) A. S. Patel Trust

b) Wall Street Securities & Investment (India) Ltd.

c) Transways Combines Pvt. Ltd.

d) Patel Real Estate Developers Pvt. Ltd.

e) One Capitall Ltd.

f) Patel Holdings Ltd.

g) Wall Street Derivatives and Financial Services (India) Pvt. Ltd.

NOTES :

i. Mr. Areef Patel, Executive Vice Chairman has given his personal guarantee in favour of Banks against overdrafts and cash credit facilities to the extent of Rs.39,35,00,000/- sanctioned to the Company, for which no monetary beneft has accrued to him.

ii. There are no provisions for doubtful debts or amounts written off or written back during the year for debts due from or to related parties.

13. In the opinion of the Board, current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 4.

14. Previous years fgures are regrouped/restated wherever required.