GLOBAL SECURITIES LIMITED ANNUAL REPORT 2008-2009 NOTES ON ACCOUNTS A. SIGNIFICANT ACCOUNTING POLICIES: 1. Basis of Preparation of Financial Statements: The Financial Statements have been prepared and presented under the historical cost convention on accrual basis of accounting principles generally accepted in India and comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provision of the Companies Act, 1956. Except where otherwise stated, the accounting principles have been consistently applied. 2. Fixed Assets: Fixed Assets are stated at cost of acquisition, less Depreciation provided for the year there on. 3. Depreciation on Fixed Assets: Deprecation is provided on the straight-line method (S.L.M). at the rates prescribed in Schedule XIV to the Companies Act, 1956. 4. PROVIDENT FUND / E.S.I. As informed to us, the rules of P.F. and E.S.I, and gratuity are not applicable to the company this year. No amount from the balance of Preliminary Expenses has been charges to Profit & Loss Account during the year. 5. FOREIGN EXCHANGE TRANSACTION: Company has not entered in any foreign exchange transaction during the year. (B) NOTES ON ACCOUNTS: As at As at 31st March 31st March 2009 2008 Estimated amount of contract remaining to be Nil Nil executed on capital account and hot provided for. Contingent Liabilities Nil Nil Claims not acknowledged as debts Nil Nil Guarantee given by the company Nil Nil 5. Loans and advances:- Rs. 5,35,92,573/- The above amount includes a sum of Rs. 5,34,92,573/- due from companies / party outstanding for more then one year. During the year no amount have been received from those parties. However, the directors are hopeful for their recovery in full, and hence no provision for doubtful amounts has been made in the accounts. 6. Additional Information pursuant to the provision of Para 3, 4c and 4d of part II of Schedule-6 of the companies Act, 1956: Since the company has not done any trading / manufacturing activities, such information is not applicable and hence not furnished. 7. Previous year figures have been regrouped where necessary. Far and on behalf of the As per our separate report of Board of Directors even date For, Global Securities Limited For PRAFUL N. SHAH & Co., Chartered Accountants Kamlesh M. Shah (P.N. SHAH) Managing Director Proprietor Membership No.: 15591 Bharat V. Dave Director Ahmedabad, April 11, 2009