a) Contingent liabilities for Bank Guarantee issued in favour of NSE / BSE is Rs. 4,50,00,000/- (Previous year was Rs. 3,00,00,000/-).

b) Contingent liabilities in respect of demand raised by the concerned departments against which company has preferred appeal before the higher authorities, details of which are as under -

c) Ademand of Rs. 2,42,260/- has been raised by the Income Tax Department for A.Y. 2010-11. The demand is due to the reason that the assessing officer has made certain additions for which the Company has not preferred any appeal. The department has also not allowed credit of certain TDS claimed by the Company. As the exact calculation for amount of tax and interest is not available with the Company, the Company has provided Rs. 67, 700/-on prudent basis in the F.Y.2012-13, out of the above demand and the same has been adjusted against the refund receivable.

d) A provision of Rs. 3, 94,000/- for the similar reasons on prudent basis for the A.Y. 2008-09 and A.Y. 2009-10 has been made during F.Y.2011-12, the same has not been paid by the Company as no calculation for the bifurcation of the amount for tax and interest has been made available to the Company by the income tax department.

2. In the opinion of Management the current assets, loans and advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated and provisions for all known liabilities have been made. Balance of Sundry Debtors and Sundry Creditors are subject to confirmations.

3. There are no amounts payable to any micro, small and medium (SMEs) scale industrial undertaking as identified by the management from the information available with the company and relied upon by the Auditors.

4. Shares and Securities received from or on behalf of clients, held by the Company as collateral in its own name in a fiduciary capacity, and/or are lodged with the exchanges/F 6t 0 Clearing Member towards additional base capital / exposure and / or pledged to bank against overdraft facility.

5. In the current year, various expenses like advertisement, salary, rent and other expenses has been allocated and accounted for in respective expenses head on proportionate basis to the Subsidiary Company Swastika Commodities Private Limited and Swastika Fin-Mart Private Limited and the payment from Subsidiary Company has been received against the same.

6. Interest expenses is netted off by the amount of Rs. 44,15,096/- (Previous year Rs.52,45,505/-) allocated to the Swastika Commodities Private Limited (a 100% Subsidiary Company) on account of utilization of the funds on behalf of the common clients of the Company and Swastika Commodities Private Limited.

7. During the current year, the company has implemented Schedule II of the Companies Act, 2013 and accordingly computed the depreciation based on revised useful life of the fixed assets as prescribed under Schedule II of the Act. The carrying value of the fixed assets which have completed their useful life as on 1st April,2014 have been charged off against the Statement of Profit and Loss at Rs. 20.62 lacs.

Had there not been any change in useful life of the fixed assets, the depreciation would have been lower by Rs. 43.35 lacs and therefore the profit would have been higher by Rs. 43.35 lacs.

8. In the opinion of the management, fixed assets are not found to be impaired and therefore, no provision for impairment loss is made for the year.

9. The management is of the view that the diminution in the value of Long-term Investment is temporary in nature and therefore, no provision for the same has been made in the books of accounts for the year.

10. Short term borrowing includes amount received from Sub-brokers / Business Associates as security deposit for business purpose amounting to Rs. 14,345,199/- (F.Y. Rs. 19,248,198/-)

11. Previous year figures have been reclassified wherever necessary to confirm to the Classification for the year.