The disclosure pertaining to the related party transactions as required by the accounting standard 19(AS-18) by the Institute of Chartered Accountants of India as applicable are indicated below :

List of related parties with whom transactions have been taken place during the year. Transactions with Key Management Personnel - Remuneration To Directors

AS 2 Leases:

The Company has not leased out any of its assets nor has taken any assets on lease therefore comment on the said clause is not necessary.

AS 3 Consolidated Financial Statements:

Since the Company does not have Subsidiary Company. The Accounting Standard As 21 regarding Consolidated Financial Statements is not applicable.

AS 4 Taxes on Income.

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Provision for Taxation:

Provision for Income Tax Rs.45,0000/-(Previous year Rs.75,000/-) is provided for as per the provisions of the Income Tax Act,1961.

Provision for Deferred Taxation:

Deferred tax is recognized on timing difference, being the difference between taxable income and accounting income that originate between in one period and are capable of being reversed in one or more subsequent periods. Deferred tax assets are recognized on unabsorbed depreciation and carry forward losses unless there is virtual uncertainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

AS 5 Impairment of Assets

In view of Accounting Standard required by AS-28 Impairment of Assets issued by ICAI, the Company has reviewed its fixed assets and does not expect any loss as on 31st March 2014 on account of impairment in addition to the provision already made in the books.

AS 6 Contingent Liabilities:

Since there are no contingent liabilities in preparation of accounts, the company has not made any provisions for the same. Demand for Rs. 460,270/- for A.Y. 2007-08 towards Income Tax vide order passed u/s 143(3) against which Rs.150,000/- have been paid and preferred an appeal with relevant authorities and is pending before ITAT. Similarly in respect of AY 2009-10 the Demand for Rs.370,480/- towards Income Tax vide order passed u/s 143(3) against which the appeal with relevant authorities has been preferred & is pending before CIT(Appeals).

As per the information and explanation given to us, there are no amounts remaining unpaid to any Micro, small and Medium enterprise under Micro, Small & Medium Enterprise Act, 2006.

Provision for Bad and doubtful debts:

The management reviews on a periodical basis, the loans or debts outstanding with a view to determining whether the loans and or debts are good, bad, or doubtful. After taking into consideration all the relevant aspects including the financial condition of the borrowers, the management determines whether the loan asset is doubtful or bad, wholly or in part. On the basis of such review and in pursuance of other prudent financial considerations, the Board of Directors determines the extent of provision required to be created in respect of loan assets. No Provision for the same has been considered necessary for the year.

The deductions are settled from time to time and written off accordingly in the books of accounts. The supporting evidence or confirmatory documents are not maintained.

In the opinion of the Board, current assets and loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known and determined liabilities are adequate and not in the excess of the amount reasonably necessary.

Supporting Evidence of debits & Credits:

Wherever supporting and evidences are not available they are taken as appearing in the books of accounts and certified by the management as exclusively and necessary for the business purposes. The balances of sundry debtors, creditors, loans and advances & other liabilities are subject to confirmation and reconciliation, if any.

The Revised schedule VI to the Companies Act 1956 has become effective from 1st April 2011 for the preparation of financial statements. This has significantly impacted the disclosure & presentation made in the financial statements. Previous years' figures have been regrouped / reclassified wherever necessary to correspond with the current years' classification /disclosure