Significant Accounting Policies and Notes on Accounts: 31.03.2015

Note 1; Significant Accounting Policies

1.1. Basis of Accounting

The Financial Statements have been brpared on accrual basis, except wherever otherwise stated, under the historical cost convention, in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards as referred to in the Companies (Accounts) Rules 2014 issued by the Central Government in exercise of power conferred under Section 133 and the relevant provisions of the Companies Act, 2013. Dividend on Investments in Mutual Funds is consistently accounted for on receipt basis.

1.2 Use of Estimates

The brparation of financial statements in conformity with the generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.3 Debrciation

Debrciation is provided on the fixed assets as per the Written down Value method at the rates and in the manner brscribed in Schedule II to the Companies Act, 2013.

1-4 Investments

Investments are valued at cost. All investments are of long term nature. Diminution other than temporary in the book value of Investment is charged to revenue.

1.5 Inventories

Shares and Mutual Fund Unquoted held as inventories are valued at cost or market price (NAV) whichever is lower.

1.6 Accounting for Taxes on Income

Provision for current Income tax is made on the basis of the assessable income under the Income-tax Act, 1961. Current tax is the amount of tax payable on the taxable income for the year determined in accordance with the provisions of the Income-tax Act, 1961.

Deferred tax is recognized on timing differences; being the differences between the taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods. Deferred tax assets subject to the consideration of prudence are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The tax effect is calculated on the accumulated timing difference at the year and based on the tax rates and laws enacted or substantially enacted as on the Balance Sheet date.

1.7 Impairment of Assets

The Company identifies assets to be impaired based on cash generating unit concept at the year end in terms of paragraphs 5 to 13 of the Accounting Standard 29 issued by the Institute of Chartered Accountants of India for the purpose of arriving at Impairment loss there on, if any, being the difference between the book value and recoverable value of relevant assets. Impairment loss when crystallizes is charged against the revenue of the year.

1.8 Revenue recognition:

The Company follows the Mercantile System of Accounting and recognizes income and expenditure on accrual basis except taxes due on assessment.

2 Contingent Liabilities and Provisions

Disputed liabilities and claims against the Company including claims raised by the revenue authorities pending in appeal for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in notes on accounts.

However, brsent obligation as a result of past event with possibility of outflow of resources, when reliably estimated, is recognized in accounts, wherever applicable.

Note 3: Contingent Liability

Contingent liabilities as may arise on account of non/ delayed compliance of certain fiscal statutes - Amount unascertainable (Previous year - Amount unascertainable)

Note 4: Segment Accounting

Since the Company has only one business segment, segment information as per Accounting Standard 17 is not required to be disclosed during the year (Previous Year -Not Applicable).

Note 5 : Non-banking Finance Company

The company's business activity during the year attracts the provisions of section 45IA of the Reserve Bank of India (RBI) Act, 1934 which prohibits a company from doing non-banking finance business unless

(i) Upon obtaining a certificate of registration from the RBI and

(ii) Has a Net owned Funds of Rs. 2 crore. The said criteria was not completed with by the company, which is pending registration.

Note 6: Taxation

(a) The Company has provided for Current tax as per the law brvailing under the Income Tax Act, 1961 during the year under review.

(b) Deferred Tax Assets/Liabilities have been provided for in the accounts during the year, since there are no timing differences either during the year or as at the end of the year (Previous Year - Nil).

Note 7: Micro, Small and Medium Enterprises Development Act, 2006:

There were no dues to Micro, Small and Medium Enterprises in the Current as well in the Previous Financial Year, on the basis of information provided by the Company and relied upon by the Auditors.

Note 8: Retirement Benefits:

No provision is considered necessary in the accounts towards Gratuity and Leave encashment since there are no employees with the Company.

Note 9: The Company is in the process of obtaining Service Tax registration for payment of Service tax under reverse charge mechanism.

Note 10 : Non-compliance of Clause 41 of the Listing Agreement

During the year, the Company has continued its non-compliance with the provisions of Clause 41 of the Listing Agreement in respect of quarterly submission of Limited Review Reports to the concerned Stock Exchanges.

Note 11: The brvious year's figures have been reworked/regrouped/rearranged/reclassified wherever considered necessary.

For Mercury Trade Links Limited

Pradeep Kumar Sarda Director (DIN 00021405)

 Gopal Somani Director  (DIN 00009523)

Vrunda Mahesh Borkar  Company Secretary

 (Membership No. A38608)

Place: Mumbai

Date : 30th May, 2015