1. Lease:

Disclosure as required by AS 19 - "Leases" issued by The Institute of Chartered Accountants of India are as follows:

Operating Lease:

The Company's significant leasing arrangements are in respect of office premises and residential flats taken on lease. The arrangements are generally from 11 months to 36 months. Under these agreements, generally refundable interest-free deposits have been given. In respect of above arrangements, lease rentals payable are recognized in the Statement of Profit and Loss for the year and included under Rent and Compensation (Disclosed under Note No. 24).

2 Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October 2 2006, certa disclosures are required to be made relating to Micro, Small & Medium Enterprises. The Company is in the process of compiling releva information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, disclosures have been made in the accounts. However, in view of the management, the impact of interest, if any, that may be payable accordance with the provisions of this Act is not expected to be material.

3. Based on technical valuation report, the Company has revised estimated useful life of certain Plant & Machinery, resulting in reduction in depreciation by Rs. 18,782,867.

4. 1. During the previous year, the Company made following allotments on preferential basis in accordance with SEBI's Guidelines f Preferential Issue, i.e. Chapter VII of Securities & Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009:

a. On February 10, 2015, 1,050,000 Warrants, each Warrant carrying an entitlement to subscribe to one equity share of Rs. 10 each the Company, for cash, at a price of Rs. 160 per equity share, i.e. at a premium of Rs. 150/- per equity share, to the following Promote Group Companies:

With the above allotment at (b) above, the Paid-up Share Capital of the Company had increased to 20,199,829 Equity Shares of Rs. 10 each aggregating to Rs. 201,998,290. Further, with the above allotment the Securities Premium Account of the Company had increased by Rs.390, 000,000.

5. During the previous year, the Company made following investments in securities of companies:

a. Invested in further issue of Equity Shares made by Zicom SaaS Private Limited, a wholly owned subsidiary, by subscribing to 2,500,000 Equity Shares of Rs. 10 each at a Premium of Rs. 10 each aggregating to Rs. 50,000,000. With this allotment (made on May 26, 2014), the total holding of the Company in its said subsidiary had increased to Rs. 200,000,000 comprising of 20,000,000 Equity Shares of Rs. 10 each (out of which 5,000 Equity Shares are held by Mr. Pramoud Rao as a Nominee of the Company).

6. In respect of a sum of Rs. 6,323,674 due from a customer shown under Other Non Current Assets in Previous Year, as the outstanding is very old and money is not recovered till date, the said balance of Rs. 6,323,674 has been provided in books of accounts.

7. Related Party Transactions Details of related parties:

8. Segment Reporting: The Company has only one reportable segment namely "Security and Safety".

9. 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 net selling price and value in use of the assets ). Hence, no impairment had arisen during the year as per the recommendations of AS 28 -"Impairment of Assets".

10. During the year the Company has provided Rs. 730,000 towards diminution of Vintage Cards and Creation Ltd. and no other provision towards diminution is considered necessary in the books keeping in view the fact that the said Investments are of Long Term nature.

11. In the opinion of the Management, the Current Assets and Loans and Advances as shown in the books are expected to realize at their Book Values in the normal course of business and adequate provision have been made in respect of all know liabilities.

12. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II except in respect of certain assets as disclosed in Accounting Policy on Depreciation, Amortization and Depletion. Accordingly the unamortized carrying value is being depreciated/amortized over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired as at April 1, 2014 have been adjusted in the opening balance of Statement of Profit and Loss amounting to Rs. 4,502,111.