The Company has only one class of equity shares having a par value of '10 per share. Each holder of equity shares is entitled to one vote per share.

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

2. Terms / rights attached to 6% Redeemable Preference shares

During year ended 31 March 2010 the Company has issued 12,500,000 6% Redeemable Preference shares of ' 10 each at ' 100 each (including ' 90 premium). Each holder of 6% Redeemable Preference shares is entitled to one vote per share only on resolution place before the Company which directly affect the right attached to 6% Redeemable Preference shares.

6% Redeemable Preference shares shall be redeemable in 3 equal installments commencing from 7th, 8th and 9th year from the date of issue i.e. 27/03/2010.

3. Segmental reporting

The Company has only one business segment viz. Gems and Jewellery, which is being considered as the primary segment.

The financial information about business segment is not applicable since segment results / revenue / assets of the wind mill business are not more than 10 percent of the combined business results / revenue / assets.

4. Related party disclosures

i. Related party relationships:

a) Subsidiaries (where control exist)

: C. Mahendra International Limited - India C. Mahendra NV (Formerly known as C Mahendra BVBA) -Belgium Ciemme Jewels Limited - India C. Mahendra Exports (H.K.) Ltd. - Hongkong C. Mahendra (USA) Inc. - USA International Gems & Jewellery FZE - UAE Al Daspa Gems & Jewellery FZE - UAE

C. Mahendra DMCC - UAE C. Mahendra Trading - India C. Mahendra International Limited - Mauritius Ciemme Entertainment Pvt.Ltd - India

b) Key Management Personnel

Mahendra C Shah (Chairman and Executive Director) Champak K Mehta (Manging Director) Sandeep M Shah (Upto 29/12/2014, Executive Director) Babulal V Virvadia (Chief Financial Officer) Swapnil Dafle (Company Secretary)

c) Relative of key management personnel

: Moghiben C. Shah Dipika C. Mehta Rasilaben M. Shah Vikram M. Shah Sandeep M. Shah Hansa P. Mehta Hemali J. Shah Nayna P. Mehta Jignesh M. Shah Kanu C. Shah Prakash K. Mehta Suresh K. Mehta Paras C. Mehta Alka K. Shah Krupa S. Shah Kevin P. Mehta Sadhana S.Mehta Pravin K. Mehta Pravin C. Shah Ramila P. Shah Samir S. Shah Suken Shah Suresh K. Mehta Sweety P. Shah Vipul B. Virvadia Bhavin B. Virvadia

d) Enterprises in which key : management personnel have significant influence

C. Mahendra Commodities Private Limited C. Mahendra Capital Ltd. Champak K. Mehta (HUF) Mahendra C. Shah (HUF) Infojewels (India) Private Limited Polo Developers Private Limited Ashesha Trading Private Limited CM Infojewels Private Limited

e) Enterprises in which relative of : key management personnel have significant influence

C. K. Shah (HUF) Kanu C. Shah (HUF) Pravin C. Shah (HUF) Allright Trading Private Limited KPM Dimon LLC

5. Contingent liabilities and Commitments

Particulars                                        As at       As at
                                               31/03/2015   31/03/2014
                                                 (Rs.)          (Rs.)

Guarantee given to banks in respect of credit facilities sanctioned to a subsidiary company (USD 11,000,000; as at 31/03/2014 USD 12,000,000) 689,048,800 721,797,600

Bond executed in favour of The President of India towards manufacture of goods for exports 441,740,000 441,740,000

Bond executed in favour of The President of India towards provisional release of seized goods 30,622,000 30,622,000

Bank guarantee in favour of President of India towards Bonded Warehouse 2,600,000 2,600,000

Disputed penalty under Customs Act 11,000,000 11,000,000

Disputed service tax liabilities             20,174,407      20,174,407

Unpaid Lease rent payment                      1,80,000               -

6. a) The Consortium of the bankers which had granted various working and export facilities have withdrawn these facilities and have called upon the Company to repay their outstanding. to the promoters, guarantors and also to the companies who have provided corporate guarantees.. Further the banks have issued notice of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002.

b) Most banks had not provided bank confirmations (including working capital facility and overdraft) since the accounts are freezed by the consortium of banks as a result facility has been ceased to be operational.

c) The Company has provided for interest upto the period where it has been charged by the banks. No interest is provided by the Company amounting to Rs. 915,371,518 where the banks has not intimated to the Company.

d) After the balance sheet date symbolic possession has been taken of most office premises of the company.

7. Trade receivables amounting to Rs. 11,949,340,981 and Loans and advances receivable amounting to Rs. 87,185,015 are outstanding for more than one year.

b) The account of Trade Receivables, Loans and Advances and Trade Payables are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period's financial statements on such reconciliation/adjustments.

c) During the year the company had send notices to its overseas customers. No response is received from the overseas customers but the company is hopeful of the recovery.

d) Amounts receivable and payable from same party are netted off for presentation in the financial statements.

8. During the year, share of loss from Investment in partnership firm - M/s C Mahendra Trading is not considered.

9. In view of loss incurred no provision is made for Dividend on 12,500,000 no of 6% Redeemable Preference shares of Rs. 10 each as on 31st March, 2015 which amounts to Rs. 7,500,000/- (PY Nil).

10. The Company Secretary and Chief Financial Officer have resigned on 01/04/2015. In the absence of the Company Secretary and Chief Financial Officer, these financial statements have not been authenticated by Company Secretary and Chief Financial Officer under Section 203 of Companies Act, 2013.

11. Pursuant to the Companies Act, 2013 ("the Act") coming in to effect from April1, 2014, the Company has not realigned the remaining useful life of its fixed assets in accordance with the provision prescribed under Schedule II to the Act.. However the depreciation has continued to provide depreciation on written down value method except plant and machinery relating to Windmill at the rates and in the manner specified in erst while Schedule XIV of old Companies Act, 1956. Depreciation on Windmill is provided on straight line method. Leasehold land is amortised over the lease period. Due to above the impact in financial statement could not be ascertained.

12. There were disputes among promoters. The management is of the opinion that no adjustment is required to be made on account of the disputes.

13. Sundry balance written off includes Rs. 25,682,264/- being reversal of part amount of insurance claim receivable provided in earlier years. As the Hon'ble Bombay High Court order has been contested by the Insurance Company

14. a) Small scale undertakings to whom the company owes a sum which is outstanding for more than 30 days at the Balance Sheet is not available. In view of this, information required to be furnished is not given.

b) Suppliers/ Service providers covered under Micro, Small Medium Enterprises Development Act 2006 have not furnished the information regarding filing of necessary memorandum with the appropriate authority. In view of this, information required to be disclosed u/s 22 of the said Act is not given.

15.During the year the company has incurred heavy loss in the year under review and due to the company turning into NPA, the Company is yet to initiate its Corporate Social Responsibility (CSR) activities as per Section 135 of the Companies Act, 2013.

16. Previous year's figures have been regrouped or rearranged, wherever considered necessary to conform to current year's presentation. Figures in bracket are in respect of previous year.