The Company had re-discounted the bills of its clients in the past. The Company could not pay to its discounters as the Company's clients whose bills were discounted by the Company had not paid the due amount to it. The amounts are still due.

Note 1.2

These borrowings are interest free, due on demand and subject to confirmation in many cases. Hence, there is no accrued interest.

Note 1.3 - Sundry Creditors

The amount of Rs. 3,08,13,778.93 (Previous Year Rs. 3,08,92,190.43) due to Samaudra Securities Limited (SSL), the subsidiary of the Company since 1st April, 2003 against purchase/sale of GOI securities from them prior to 2004. This amount has remained unpaid for a few years on account of Financial constraints. SSL has made a provision against the amount due to them. The Company has made no provision in its books since the value of investment would not be impaired if the dues to SSL are settled. None of the creditors have intimated their status under the Micro Small Medium Enterprises Development Act, 2006

Note 1.4 - Borrowings from Banks

i. The loans from Banks are secured by pari passu hypothecation of present and future Hire Purchase (HP) receivables and Lease rentals and the relative assets consisting of Plant and Machinery, Office Equipments, Vehicles etc. and HP/ Lease debtors including overdue interest, delayed payment charges and the assets. The loans are further secured by way of collateral security given in the form of equitable /registered mortgage of the Company' office units in Delhi and Hyderabad to all banks along with pari passu hypothecation charge on the movable assets at these premises. The security is insignificant with respect to the amount claimed.

ii. The amounts were earlier advanced by the banks as Working Capital limits and then converted into loans. Hence shown under this head.

The principal amount is as claimed by the banks in the suits filed by them before the Debt Recovery Tribunals. (DRTs). The dates of defaults areas per the dates recorded by the Mumbai Debt Recovery Tribunal. In the earlier year, the principal was considered as per Company's proposal given in 1999.

There is no change in the total liability claimed by the lenders. The Recovery officers of the Debt Recovery Tribunals have sold some of the fixed assets mortgaged to the banks as security. The net amount of Rs.2,32,02,576/- realized by them are distributed by the Recovery Officers during the year - Nil (Previous Year - Rs. 2,32,02,576/-) to the banks after deducting the expenses and adding the interest earned.

iv. The above lenders had approached the Debt Recovery Tribunals of Competent Jurisdiction.

Note 1.5 - Unpaid Debentures - Secured

i. The 19% Secured Non Convertible debentures are secured by an exclusive charge/mortgage over specific assets given on Lease /Hire Purchase and the debtors However the value of security including collateral security (one office unit at Mumbai) is insignificant with respect to amount claimed. The principal amount is shown as on the date of filing the suit before the Debt Recovery Tribunal. After the demerger of Unit Trust of India in 2002, the dues are bi-furcated between UTI Asset Management Co Ltd and the Administrator of Specified Undertaking of Unit Trust of India.

The interest is calculated at the rates as stated above from the date of filing the appeal i.e. 15-Mar-2004.

Note 1.6 - Fixed Deposits

The Company had defaulted in repaying the deposits as per the original terms of the deposits. The repayments were rescheduled by the Company Law Board's (CLB) orders dated 26.06.2001 and its subsequent modifications dated 11.09.2002, 30.04.2004, 28.02.2006, 07.02.2007 & 13.10.2009 . The Company has already paid all the claimed deposits on 29.12.2012 i.e. before 31.12.2012 the last date specified as per the last CLB order of 13.10.2009. As all Fixed Deposits have matured as per the original terms, the full amount is shown as dues to fixed depositors. The break-up of principal and interest on cumulative deposits upto the date of contracted maturity is given below.

The amount due within one year is Rs. 5,43,90,485/- (Previous Year Rs. 5,69,76,967/-)

Whereas majority of the warrants were encased within their validity period, some of the remained unencashed.

Further the Company had been regularly issuing fresh warrants or bank demand drafts, as the case may be, to the depositors, who could not encash their warrants on time as and when request for the same were received. In the process, the Company had repaid Rs. 25,86,482/- (Previous Year Rs. 56,60,448/-) to the depositors during the year under review.

Further, any request received from the deposit holders against the unencashed amount shall be duly paid till the expiry of 7 years from the respective due date whereupon the same shall be transferred to the Investor Education and Protection Fund.

Note 1.7

Disclosure required under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act) are given as follows:

a. Principal amount and Interest due thereon remaining unpaid to any supplier at the end of accounting year

b. Interest paid during the year beyond the appointed day

c Amount of interest due and payable for the period of delay in making payment without adding the interest specified under the Act

d. Amount of interest accrued and remaining unpaid at the end of the year

e. Amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small

Note 1.8

All the creditors of the Company, except few corporate, banks and Financial Institutions (FIs) , have confirmed their dues to the Company as on 31st March, 2015. Further, the amount due to the banks except Vijaya Bank (VB), Bank of Rajasthan Ltd. (BR) (now merged with ICICI Bank Ltd),Federal Bank Ltd (FB) and FIs have been stated at the amount decreed by the Hon'ble Debt Recovery Tribunal (DRT) in their favour, as increased by the interest due thereon at the rate ordered by DRT in the respective decree. The dues to VB, BR, FBand FIs have been stated at the amount claimed by them in their recovery suits filed before DRT and interest due thereon up to 31st March, 2015 at the rate demanded by them in their respective recovery suits.

Notes :

1. Buildings, mostly consist of office units, some of which are yet to be recorded in Company's new name.

2. Buildings with the gross value of Rs. 1,63,64,355.68 located at New Delhi and Hyderabad are given as collateral security to Banks (Note 6.4) and the building at Mumbai valued at Rs. 48,50,000 to Debenture holders (Note 6.5)

3. Leased Assets deleted during the year represent assets removed from the books on completion of lease.

4. The assets sold / retired during the year include offices of the Company disposed off by the Recovery Officers of the Debt Recovery Tribunals.

5. Office Equipment include cost of the software embedded in the computers or were purchased /capitalized over 10 years ago and are fully depreciated.

6. In accordance with the provisions of Schedule II of the Act, in case of fixed assets having completed the useful life as at 1 st April, 2014 or have been depreciated more than the residual value, the net carrying value(net of residual value) amounting to Rs. 1.32.187.43 has been recognized in the retained earnings. No cognizance has been taken of deferred tax due to uncertainty of future taxable profits

7. In case the depreciation was provided as per provisions of Schedule XIV of the Companies Act, 2013, the depreciation would have been higher by Rs. 89.284.49/-

A. The Long Term Investments as per the Accounting Standard 13 as notified by the Companies (Accounting Standards) Rules 2006 are classified Non Current investments.

B. Provision has been made on the basis of the Non-Banking Financial (Deposits Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.

C. The Investments are valued at Cost and provisions are made as per the directions referred in B above.

D. Shares in unlisted companies (including Subsidiary company are held in physical form while Government securities are held in electronic form.

E. In case physically held securities (except subsidiary), the changing of Company's name is under process.

F. No charge of SLR securities has been created in favors of the Public Depositors. This has been permitted by Reserve Bank of India.

G. The Investee Company's status as Listed or Unlisted is as per the Company Data on the website of Ministry of Corporate Affairs at the current year end.

H. The meaning of abbreviations is A - Active, DO - Dormant, L- Liquidated, UL - Under Liquidation, USO - Under Strike Off. These particulars are from the same data as in G above. Shares of Struk off/ Liquidated Companies , Companies under Liquidation or strike off have been written off. In case of Active companies to whom letter have been send by Registered Post and which have been returned undelivered are also written off.

I Provision on Standard Assets has been made @ 0.5% as per Reserve Bank of India's directions.

J. D indicates shares are in dematerialized form otherwise they are in physical form

K. Shares of Dormant and Under Liquidation /Liquidated Companies are removed from the Books. Some 'Active' Companies' shares have also been removed where no accounts for the last few years are available with Registrar of Companies and the Registered letters are returned undelivered

Note 1.9

A. The Current Investments are included in this Schedule as per the Accounting Standard 13 as notified by the Companies (Accounting Standards) Rules 2006 and there are restrictions on trading imposed by Reserve Bank of India.

B. * These shares have been received by the Company on removal of defects in case of bad deliveries or for lost shares. These have been accounted at the market rate. C ** The Company's application for duplicate shares / dematerialization not responded by respective Companies

D. Where the company has written off the value of a share/debenture/security due to non availably of market rate of a period exceeding six months, its value has been shown as Nil despite the quantitative number held as on the balance sheet date appearing. Others are valued at lower of cost or market value

E. Shares marked as (D) are in electronic form, others are in physical form. In case physical securities, the changing of Company's name is under process.

F. The Investee Company's status as Listed or Unlisted is as per the Company Data on the website of Ministry of Corporate Affairs at the current year end.

G. The meaning of abbreviations is A - Active, DO - Dormant, L- Liquidated, UL - Under Liquidation, USO - Under Strike Off. These particulars are from the same data as in G above. Shares of Liquidated Companies have been written off.

H. The shares of Dormant or under liquidation / dormant Companies as per website of Ministry of Corporate Affairs have been removed from the books.

Note 1.10

i. Interoperate Deposit was given in earlier years and is doubtful of recovery. No interest has been accrued as per the Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007. ii. Bills Discounted are dues for bills discounted in earlier years and are doubtful of recovery. No interest has been accrued as per the Non-Banking Financial Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007. iii As per the Orders of the Debt Recovery Tribunals ordering the sale of Company's Assets, the Recovery Officers have sold certain assets and realized these amounts to be appropriated to various lenders.

NOTE 2

(1) Contingent Liabilities :

i) Dividend on 13% Redeemable Cumulative Preference Shares is in arrears- Rs. 55,22,79,000/-17 years (previous Year Rs.51,97,92,000/-16 years)

ii) Wealth Tax Rs. 3,27,843/- ( Previous Year Rs. 3,27,843-)

iii) Sales Tax Rs. 23,14,158/- ( Previous Year Rs. 23,14,158/-)

iv) Others Rs. 13,20,000/- (PY Rs. 13,20,000/-)

The above liabilities, except dividend on preference shares, are dependent upon the outcome of appeals before various authorities. The contingent liability towards dividend on Preference Shares would be payable if the Company has distributable profits.

Claims against the Company not acknowledged as debts, as the same are disputed by the Company. Others Rs. 29,35,966/- (Previous Year Rs. 23,98,362/-)

(3) CURRENTS DEFERRED TAX

There is no provision for Income Tax during the year due to loss..

The Company has not created the Deferred Taxation Asset as its utilization for set off against future taxable income is uncertain in the foreseeable future.

(4) The accumulated loss of Rs. 851,8383,069.83/- (Previous Year Rs. 7,86,40,13,154.60/- includes unabsorbed depreciation of Rs.170,19,80,477.39/- (Previous Year Rs. 1,70,14,93,343.52/-)

(5) The Company has paid an amount of Rs. 4,45,197/- (PY Rs. 7,69,866/-) towards Provident & Pension Funds and Gratuity & Superannuation Schemes. For leave benefit the Company has provided, on actuarial basis. A liability of Rs. 14,53,459/- (PYRs. 15,48,515/-) is accrued as at the year end.

The present value of obligation towards gratuity is determined based on actuarial valuation report furnished by LIC, 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. It is fully funded as on the year end.

(6) Related Party Disclosures

1. Relationships

(i) Shareholders in the Company

STEL Holdings Ltd. holds 48.81% equity share capital of the Compny,

(ii) Subsidiary of the Company

Samudra Securities Ltd. (formerly Ceat Securities Limited) (iii) Other related parties

Ace Garment Export Ltd**

Indo Dean Leather Ltd**

Kaveri Polysacks Ltd.**

Spectrum Alkyd & Resins Ltd**

Ruia Hospitality Ltd**

**(The Company holds over 20% shareholding in these companies. These investments were made as Merchant Bankers. The Company does not have any significant influence over their managements and are hence not considered for related party disclosures as associates. The financial statements for the previous three years are also not available on the website Ministry of corporate Affair , (MCA) Government of India. As per MCA most of these Companies are dormant.

Even in case of "Active' Companies the letters sent to the registered offices as per MCA website were returned undelivered. These investments are also removed from the books during the year, (iv) Directors and other executives (including those who were associated for part of the period)

Mr H C Mathur - Chairman & Managing Director

Mr R C Kurup - Company Secretary

Mr Ramulu B M - Chief Financial Officer

(8) Segment Information

The Company's present activity is to take steps to close its Non Banking Financial activities. The other activities have not made any significant progress. Hence there are no segments.

(7) A sum of Rs. 50,000/-(P Y Rs. 35,103/-) is transferable to the Investors Education & Protection Fund at the end of the year.

After the year end a sum of Rs. 50,000/- ( P Y Rs. 35,103/-) have been transferred to the said Fund till the date of these statements.

(8) The Company follows the directions given by Reserve Bank of India (RBI) to Non Banking Financial Companies and maintains Statutory Liquidity Ratio (SLR) as per RBI's instructions in the matter. The Company continues to be governed by the Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007. However Consequent to the Net Worth of the Company having become negative, the restrictions placed by para 16 of these norms pertaining to a minimum Capital Adequacy of 12% and Para 19 (pertaining to acquisition of land and building other than for own use) and Para 20 (pertaining to Concentration of Credit/Investment) could not be met.

(9) The details required as per Para 13 of the Non Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007 are annexed.

(10) The Company is not liable to spend any money towards Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 since it has losses u/s 197 of the said Act for all the last three financial years

(11) Disclosures required with regard to the subsidiaries and transactions with related parties in forms AOC-1 & AOC -2 are attached as Annexure.

(12) Previous Year's figures have been reclassified and /or regrouped wherever necessary to correspond with the current year's classification and disclosures.

Notes:

1 As defined in Paragraph 2(1) (xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2 Provisioning norms shall be applicable as prescribed in the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 2007.

3 All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in column (5) above.