The equity shares have a par value of Rs. 10/- per share. Each shareholder is entitled to one vote per share

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders

2. Contingent Liabilities

Contingent liability not provided for in respect of :-

                                                        (Amount in

Particulars                       As at 31.3.2015      As at 31.3.2014

Outstanding Bank Guarantee        1,00,000             1,00,000

There has been a demand of Rs. 23,77,572/- raised by the Income Tax Department for the financial year 1996-97. The company is contesting the same at Income Tax Appellate Tribunal, New Delhi and the management understands that there exists a very strong case in its favour and, therefore, no provision had been made against it. In the meanwhile the company has paid Rs.12,00,000/- under protest to the department and for balance amount, stay has been obtained from the department.

The Income-Tax Assessments of the Company related to Search Cases have been completed during the year. The assessed tax liability was Rs.16,73,634 and the Company has not filed any appeal against the assessment order. The Company has made the provision of Rs.16,73,634 in the financial statement for the year ended 31st March, 2015.

In addition to the above, the Company is a party to other few legal proceedings in the normal course of business. The Company does not expect the outcome of these proceedings to have a material adverse effect on the Company's financial conditions, results of operations or cash flows.

4. The management is of the opinion that none of the assets of the company has suffered from impairment during the period.

5. Company has not incurred any expenses in foreign currency during the period.

The Company has a defined benefit gratuity plan which is unfunded. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Company has also provided for Leave Encashment which is unfunded.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans (as per Actuarial Valuation as on March 31, 2015).

6. Related Party Transactions

As per Accounting Standard (AS)-18 "Related Party Disclosures", the Company's related parties and transactions are disclosed below:

(a) List of related parties & relationships, where control exists: Nil

(b) Associate Company:

i. SRS Modern Sales Limited.

ii. SRS E-Retail Limited

iii. SRS Talkies Limited

(c) Key Management Personnel (KMP)

i. Mr. Dinesh Khatri - Whole Time Director (upto 12.05.2014)

ii. Mr. Raju Gupta: - Managing Director (upto 17.06.2014)

iii. Mr. Ankit Sachdeva        - Managing Director & CEO
                                 (Whole Time Director upto 16.06.2014)

(d) Related Parties owned or controlled by Key Management Personnel (KMP)

i. SRS Limited

ii. SRS Real Infrastructure Limited

7. Management considers that all the Current Assets, Loans & Advances are fully recoverable at the value at least equal to the value disclosed in the books and there is no other than temporary diminution in the value of long term Investments.