Mideast is a Public Limited finance company. Its equity shares are listed on Mumbai Stock Exchanges.

Mideast is registered with Securities Exchange Board of India (SEBI) as Merchant Bankers and Portfolio Managers (Applied for renewal of licence). It has managed public issues as Lead Managers and acted as IPO advisors. It has contributed significant amount in mobilising / marketing IPOs to NRIs abroad. Mideast is also engaged in Corporate advisory services, Loan Syndication, Debt Placement, arranging External Commercial Borrowings (ECB) etc.

2. Contingent Liability:-

(a) The Company has received Assessment Order from Income Tax Department for Ass. Year 1995-96 raising a demand of Rs.93,82,760/- on account of various disallowances and additions. The company has preferred an appeal against the said Assessment Order in the High Court, Bombay and no provision has been made for the net liability of Rs.45,59,122/- and interest payable thereon, if any.

(b) The company has not provided for arrears of fixed cumulative dividend payable on 11% Cumulative, Preference Shares of Rs.20,000,000/- since its allotment on 31.03.1998. Total arrears of dividend Rs.35,750,000/- (Previous Year Rs.33,550,000/-).

3. As per AS-15 "Employee Benefits", the disclosure of employee benefits as defined in AS is given below

Defined Benefit Plan

Consequent to adoption of AS 15, the company has accounted the present value of gratuity obligation (non funded) based on actuarial valuation done by an independent valuer using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for compensated absences (non funded) recognized in the same manner as gratuity.

The following table sets out the status of gratuity plan and the amounts recognized in the company's financial statement as at March 31, 2014.

4. Taxes on Income:-

4.1 No provision for the current tax has been made, as the Company does not expect any Income Tax liability.

4.2 Related parties have been identified by the Management and relied upon by the auditors.

5. Segment Reporting:-

5.1 Primary Segment Reporting (By Business Segments)

The Company has considered Business Segment as primary segment for disclosure purpose and comprises of the following:-

a) Financial Services and

b) Others (Pertains to Generation and Sale of Electricity from Windmill Operations)

5.2 Secondary Segment Reporting

The Company does not have a Secondary segment.

6. Obligation on Long Term, Non Cancellable Operating lease assets taken on lease:

Disclosure as per AS-19 is as follows:

a. The company has taken commercial premises on Non Cancellable Operating lease and lease rent of Rs.422,500/-(P.Y. Rs. 406,500/-) has been debited to statement of profit and loss.

c. There are no exception / restrictive covenants in the lease agreement.

the above amount is after deducting Rs. 8,000/- p.m. recoverable from group company as share in rent.

7. There are no dues outstanding to Micro, Small & Medium Enterprises. Sundry debtors and creditors are subject to confirmation.

8. In the opinion of the Board of Directors, current assets, loan and advances have value on realization in the ordinary course of business at least equal to the amount at which they are stand and all known liabilities are provided for.

9. Figures of the previous year have been regrouped and reclassified wherever necessary.

10. The amount of Balance Sheet and Statement of Profit and loss are rounded off the nearest rupee.