S Kumars Online Ltd. is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange in India. The company is mainly engaged in E-Commerce business. The company also provides IT Management Consultancy and Equipment Rental Services.

2. Contingent liabilities and commitments (to the extent not provided for)

(a) Income Tax Matters ( Details given in table below) 820.74 820.74

(b) Legal cases with Franchisees and Strategic 11.68 32.14 Business Associates

3. The Management is constantly trying to introduce new e-Commerce business model and revival of the 'IT Management Consultancy' segment of the company to eradicate cash flow mismatches and negative net worth of the company. Management is confident that in near future Company will be in revival mode and thereby going concern will not be affected.

4. During the previous year, the Company has settled certain pending legal cases with the Franchisees and SBAs by opting for Out of Court Settlements with the said parties. This has resulted in a charge to the Profit and Loss Account by Rs. 1.86 Lacs under the head Loss on Settlement (Net).

5. In the opinion of the management, the Current Assets, Loans and Advances are realizable at the values represented in the accounts and adequate provision has been made in the accounts for all known liabilities, except to the extent wherever stated otherwise.

6. The following table summarizes the components of the net employee benefit expenses recognized in the Profit and Loss Account and in the Balance Sheet for the gratuity as per the recommendations of the Accounting Standard - 15 Employee Benefits. No provision towards leave encashment is considered in the Company's accounts.

7. Outstanding amounts payable to Micro, Small and Medium Enterprises included under Current Liabilities, as per the information available with the Company and relied upon by the auditors - Nil (Previous year-Nil).

8. Taxation

No provision has been made towards Current taxation keeping in view the carried forward losses under the Income Tax Act, 1961.

9. The Company has two reportable segments i.e. IT Management Consultancy, Equipment Rental and E-Commerce. The disclosure requirements as per the recommendations of Accounting Standard - 17 Segment Reporting, during the year under review, are given as under:

10. The Company is of the view that there are no indications of material impairment and the carrying amount of its fixed assets or where applicable, the cash generating unit to which these assets belong, do not exceed their recoverable amounts (i.e., the higher of the assets' net selling price and value in use). Hence, no impairment had arisen during the year as per the recommendations of AS 28 - "Impairment ofAssets".

11. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated / amortised over the revised/ remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted in the opening balance of Profit and Loss Account amounting to Rs. 3,31,686.

12. Product wise details

13. Expenditure in Foreign Currency- Rs. NIL (Previous Year - Rs. NIL) Earnings in Foreign Currency- Rs. NIL (Previous Year - Rs. NIL).