a) 43,56,611 Equity Shares of Rs. 10/- each allotted as bonus shares in the proportion of 7:10 Equity Shares held as on dated 13.01.2012 pursuant to the resolution of the members of the company on 12.12.2011.

b) 31,00,000 Equity Shares of Rs.10/- each allotted on preferential basis at a premium of Rs. 25 each in the financial year 2010-11.

c) 16,53,787 Equity Shares ofRs.10/-each allotted as bonus shares in the financial year 2009-10.

Note No:

1.1 The Company has declared dividend on the equity shares @ Rs. 0.10 per share (previous yearRs. 0.10 per share), totaling to Rs. 12,37,854(previous year Rs.12,37,854) including dividend tax. The dividend so declared is subject to approval of the members of the Company at the Annual General Meeting.

Secured loan

Term Loan from other parties

i) Amounting to 73,90,486 {previous year 727,80,160) secured by way of hypothecation of movable assets of worth 712,90 lakhs (previous year 717,33 Lakhs) and also pledge of fixed deposit receipts of 77 lakhs (previous year 77 lakhs) of the company.

Repayable in 36 monthly installments commencing from June, 2011 to May, 2014 as per the terms of agreement. (First 12 installments of 75.00 lakhs each, next 12 installments of 73.50 lakhs each and the last 12 installments of 72.00 lakhs each.

ii) Amounting to 73,67,129 (previous year 7 13,41,128) secured by way of hypothecation of movable assets of worth 712.90 lakhs (previous year 717.33) and also pledge of fixed deposit receipts of 77 lakhs (previous year 77 lakhs) of the company.

Repayable in 18 equated monthly installments of 795,400/- each commencing from Jan. 2013 to July 2014.

iii) Amounting to 743,10,326 (previous year 7Nil) secured by way of hypothecation of movable assets of worth 7 4.88 lakhs (previous year 7 Nil) and also pledge of fixed deposit receipts of 7 20 lakhs ( previous year 7 Nil lakhs) of the company.

Repayable in 36 monthly installments commencing from August, 2013 to July, 2016 as per the terms of agreement. (First 12 installments of 7 3.00 lakhs each, next 24 installments of 71.715 lakhs each.

iv) Amounting to 7 7,65,685 (previous year 7 28,74,315) secured by way of hypothecation of car.

Repayable in 18 equated monthly installments of 7196,632/- commencing from February, 2013 to July, 2014. '

b)Vehicle Loan from bank

i) Amounting to Rs. 34,429 (previous year Rs. 2,28,310) secured by way of hypothecation of cars.

Repayable in 60 equated monthly installments of Rs. 17,451/-Each commencing from June, 2009 to May, 2014.

ii)Amounting to Rs.Nil (previous year Rs. 6,22,712)secured by way of hypothecation of cars.

Repayable in 60 equated monthly installments of Rs.16,995/-commencing from Feb, 2012 to May, 2017.

iii) Amounting to Rs.3,08,496 (previous year Rs. 3,85,256) secured by way of hypothecation of cars.

Repayable in 60 equated monthly installments of Rs. 10,997/- commencing from May, 2012 to April, 2017.

iv) Amounting to Rs. 17,97,856 (previous yearRs. Nil) secured by way of hypothecation of cars.

Repayable in 36 equated monthly installments of Rs.85,805/- commencing from April, 2013 to February, 2016. Un-Secured Loan

b) Public Deposits

The public deposits are accepted under the provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposit) Rules, 1975.

The public deposits are taken for a minimum period of 6 months to a maximum period of 3 years. The same are repayable as per the deposit terms.

c)Deferred payment liabilities

Amounting toRs.4,97,370 (previous year 7 6,39,474) being deferred payment liability in the form of installments granted by RIICO in terms of the lease agreement in connection with Residential Land situated at D-637,RIICO Housing Colony, Abu Road, Distt. Sirohi, RAJ.

Repayable in 19 quarterly installments of *35,526/- each plus interest commencing from March, 2013 to September, 2017.

A) Cash credit & Working Capital Facility (including Buyer's Credit)

(1) Loan taken from Oriental Bank of Commerce are secured against hypothecation of Stocks & Receivables and collaterally secured as per under mentioned details:-

I. Registered Mortgage of Property bearing no: 5476, South Basti Harphool Singh, Sadar Bazar, Delhi, standing in the name of Director Mrs. Ira Rastogi.

II. Equitable Mortgage of the following Properties:-

a) Flat no: 805A, Beverly Park Apartments, MG Road, Gurgaon, Haryana - 122001, standing in the name of M/s Cyber Dot Com Pvt. Ltd.

b) 1943, Bagichi Raghunath, Sadar Bazar, Delhi - 110006, standing in the name of Mr. Tanuj Rastogi.

c) 2192, Bagichi Raghunath, Sadar Bazar, Delhi - 110006, standing in the name of Mr. Tanuj Rastogi.

d) 2269-70, Bagichi Raghunath, Sadar Bazar, Delhi - 110006, standing in the name of Mrs. Ira Rastogi.

e) House no: 145, Block F, Sector Alfa, Greater Noida, Uttar Pradesh, standing in the name of Mrs. Ira Rastogi.

f) 15, first floor, NRI Complex, Mandakini, G. K. - IV, New Delhi- 110019, standing in the name of Mrs. Ira Rastogi.

g) Part - 2658, 4/6, Second & Third Floor, Tola Ram Building, Sadar Thana Road, Sadar Bazar, Delhi - 110006, standing in the name of Mrs. Ira Rastogi.

h) Industrial land together with constructed shed and plant and machinery installed therein located at B-290(A), Growth Centre Phase -1, Abu Road, Distt. Sirohi, RAJ. standing in the name of the company.

Working capital loan from bank are repayable on demand.

(2) The buyers credit facilities are secured by Letter of Comforts (in the nature of Bank Gurantees issued by the Oriental Bank of Commerce. These Letter of Comforts are in turn secured by margin in the form of fixed deposits receipts (FDR) pledged obtained by Oriental Bank of Commerce. As at March 31, 2014 FDR's of 79,00,000/- (71,15,76,268/- as at March 31, 2013) were kept as margin.

(3) Personal gurantee of Mrs. Ira Rastogi, Mr. Tanuj Rastogi & Mr. Mudit Kumar directors of the Company, Corporate Guarantee of M/s Cyber Dot Com Pvt. Ltd. and also of all the directors of M/s Cyber Dot Com Pvt. Ltd.

Buyers Credit in foreign currency are repayable as per the terms and agreement within 12 months of the Balance Sheet date.

Note No.:

7.1 Detail of suppliers covered under micro, small and medium enterprises Development Act, 2006 and which have furnished the information regarding filling of necessary memorandum with appropriate authority is as under:

a) Amount outstanding at the year endRs.Nil (previous year Rs.Nil)

b) Interest payable on delayed paymentsRs. Nil (previous year Rs.Nil)

Including Director's remuneration X 28,80,000 (previous year Rs. 29,20,000). The same is exceeding the limit as prescribed under Part II of Schedule XIII of the Companies Act, 19S6, but paid as minimum remuneration in terms of the notifications issued thereunder and as per shareholder's resolution passed on September 26,2011.

NOTE NO. 2

Contingent Liability (not provided) in respect of:

a) Claims against the company not acknowledged as debt- (Amount in Rs.)

PARTICULARS                                    2013-2014    2012-2013

Income Tax Demand under Appeal                     9,407        9,407
(Assessment Year 2002-2003)

Value Added Tax Penalty levied by ACIT, Noida NIL 9,85,300 (FY 2012 -13), Appeal filed by the company before Comm. (A)

Value Added Tax Demand under Appeal 2,37,931 2,37,931 with Add. Comm., Special Zone, Department of Trade & Taxes, Delhi

Income Tax Demand under rectification due to 1,03,370 NIL dividend tax deposited in wrong head during the Assessment Year 2011-12

# The appeal has been decided in favour of the company; however a rectification application for deletion of demand is pending.

@ The first stage appeal with Deputy Commissioner Appeals - IV, Jaipur, had been decided in favour of the company; however the department had made second appeal with Rajasthan Tax Board, Ajmer. "

$ The Appeal has been decided in favour of the company by Commissioner (Appeals) vide its order dated 02-04-2013.

As per available information with the company, second appeal has not been filed by the department.

% Ex-parte penalty order had been passed by ACIT, Noida pertaining to m/o April 2012, May 2012 & June 2012.

Subsequently the case was re-opened on medical grounds. The company has filed the details as required, however the final order hasn't been passed till date.

b) Guarantees .

- Outstanding bank guarantees furnished by Banks on behalf of the Company is Rs. 625,000/- respectively (previous year Rs.625,000/-).

- Outstanding Letter of Comforts (in the nature of Bank Guarantees) to the extent of Rs.58,55,384/ (previous yearRs.13,67,83,836/-)have also been furnished by bank to secure buyer's credit facilities availed by the Company.

- Outstanding Inland Letter of Credit to the extent of Rs.72,00,000/- ( previous year Rs.Nil) have been furnished by bank, for the purpose of enabling the company to procure goods.

NOTE NO. 3

Management is of the opinion that Current Assets, Loan and Advances are stated in the Balance Sheet at the amount, which is at least equal to the amount expected to be realized in the ordinary course of business. Certain balances of debtors, loans and advances and creditors are subject to confirmation.

NOTE NO. 4

Segment wise Revenue, Results and Capital Employed

As the company was engaged primarily in trading of Non Ferrous metals & other items during the entire year. The revenue from Non-ferrous metals exceeds 90% of the total revenue, hence there is no requirement for segment wise details, in terms of Accounting Standard -17.

NOTE NO. 5

Customs duty refundable (to the extent of claims filed) amounting to Rs. 1,02,19,014/-(previous year Rs. 1,83,75,031/-) has been shown under the head Short Term Loans 8i Advances as Duty drawback and special additional duty refundable in terms of Customs notification no: 102/2007 dated 14-09-2007. Out of the aforesaid a sum of Rs. 95,36,484/-(previous yearRs.74,10,414/-) pertains claims filed with the Custom Authorities and a sum of Rs.6,82,530/- (previous yearRs.11,09,64,617/ ) pertains to refund claim not filed due to non-fulfillment of certain conditions as per the said notification.

Further the amount of additional duty is deducted from the total duty as debited to Statement of Profit & Loss as cost of goods purchased.

NOTE NO. 6

a. The seller of the property W-111A, G. K. -I, New Delhi-110 048 has filed a case in the court for non-payment of the sales consideration. However, the company has deposited the disputed sum of Rs. 66,69,000/- with Registrar General of Delhi High Court on 23-11-2005 as per instruction of Delhi High Court and the matter is still Sub-Judice. The company has already disposed off the said property to third party in the prior years.

b. Recovery suit ofRs. 30,08,771/- has been filed in High Court Delhi against M/s G.S International and the same has been admitted in the court. Criminal case has also been filed in Tis Hazari Court Delhi against the party for above recovery of dues.

NOTE NO. 7 .

Employee Compensation

a. Provident Fund: - The Company pays fixed contributions to the Employee's Provident Fund Commissioner on a mandatory basis. The Company has no further payment obligations once the contributions have been paid. The Company's contributions to defined contribution plans are recognized as employee compensation expense when they are due.

b. Employee State lnsurance:-During the current financial year i.e. 2013-14 the company was covered under the provisions of section of the Employees State Insurance Act with respect to the workers employed at its manufacturing unit. Accordingly the company has made a provision ofRs. 4,74,594/-(previous yearRs. 2,73,765/).

The said amount has been duly deposited with the respective authorities.

c. Provision for Gratuity: - The Company is small in terms of the number of employees employed during the year.

The management is of the opinion that the gratuity liability be calculated on actual basis as at the close of the year, based on the assumption of going concern and that all present employees shall continue. The actual liability is revised at the close of the financial year, based on the last drawn salary of the respective employees and accordingly provision has been made. Total amount provided isRs.5,34,795/- for the year (for the previous yearRs. 235,383/-) and cumulative balance is Rs. 14,99,408/- as at 31s1 March 2014 (for the previous year Rs. 9,64,613/-).

NOTE NO. 8

As per Accounting Standard 18 issued by the ICAI, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below:-

1. List of related parties where control exists and related parties with whom transactions have taken place and relationships:-

Name of the Related Party

Mrs. Ira Rastogi, Managing Director

Mr. Tanuj Rastogi, Whole-time Director

Mr. Mudit Kumar, Whole- time Director

Bairam Chandra Rastogi

Neha Rastogi

V. B. Rastogi

Aseem Invesment Ltd.

Pisces Global Pvt. Ltd. (Formerly known as Asia Export Import Pvt. Ltd.)

Relationship

Key Managerial Personnel

Relative of Key Managerial Personnel

Enterprise over which Key Managerial Personnel are able to exercise significant influence (Associates)

NOTE NO. 9

Previous Year figures have been regrouped/ reclassified wherever considered necessary to make the same comparable with current year presentation.