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LINTAS MERCANTILE LIMITED

AUDITED ANNUAL REPORTFOR THE YEAR 2009-10

COMPANY REGISTRATION NO.: 04-023304CIN NO: L36999GJ1994PLC023304

Registered with Registrar of Companies, Gujarat State


Regd. Office :-801-A, Wall Street-I, Opp. Orient Club,

Gujarat College Railway Crossing,Ellisbridge, Ahmedabad-380006.

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SIXTEENTH ANNUAL GENERAL MEETING - PROGRAMME

DATE : 30TH SEPTEMBER, 2010

DAY : THURSDAY

TIME : 04.00 P.M.

VENUE : REGISTERED OFFICE OF THE COMPANY AT :801-A, Wall Street-I, opposite Orient Club,Gujarat College Railway Crossing,Ellisbridge, Ahmedabad-380006

NOTE TO SHAREHOLDERS :As a measure of economy, copies of the Annual Report will not be distributed at the Annual GeneralMeeting. Shareholders are requested to kindly bring their copies to the meeting.

CONTENTS :

1) Board of Directors and Other Information ................................................ 1

2) Notice along with Explanatory statement pursuant to provisions ofSec 173(2) of the Companies Act 1956 .................................................. 2

3) Directors’ Report .......................................................................................... 3

4) Corporate Governance Report .................................................................... 6

5) Auditors’ Report .......................................................................................... 11

6) Balance Sheet ............................................................................................ 14

7) Profit & Loss Account ............................................................................... 15

8) Schedules to the Balance Sheet and Profit & Loss Account .............. 16

9) Notes to the Accounts .............................................................................. 17

10) Balance Sheet Abstract and Company’s General Business Profile ..... 19

11) Cash Flow Statement pursuant to Clause 32 of the ListingAgreement and Auditors’ report there on ................................................ 20


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LINTAS MERCANTILE LIMITEDBOARD OF DIRECTORS

Shri Panalal Chhotalal Modi Chairman & DirectorShri Pareshkumar R. Patel DirectorShri Valay Piyushbhai Shah DirectorShri Nimesh Manharlal Shah Director

ACTING IN ADVISORY NATURE ONLY TO VARIOUSCOMMITTEES OF CORPORATE GOVERNANCE

Secretarial and Corporate Legal Matters Finance, Audit and Taxation MattersShri Kamlesh. M. Shah M/s. DJNV & CO.

(Practicing Company Secretary) Chartered Accountants

BANKERS OF THE COMPANY

Punjab National Bank, Relief Road Branch, Ahmedabad-380001. Alhabad Bank, S. P. Nagar Branch, Navrangpura, Ahmedabad. Dena Bank, Shardamandir Branch, Paldi, Ahmedabad. The Faderal Bank Ltd., Ashram Road, Ahmedabad.

REGISTRAR AND SHARE TRANSFER AGENT

Sharepro Services (India) Pvt.LtdSatam Industrial Estate, 3rd Floor, Above Bank of Baroda,

Chakala, Andheri (East), Mumbai. 400 099

AUDITORS COMPANY LAW CONSULTANTS

DJNV & CO. M/s. Kamlesh M Shah & Co.,Chartered Accountants Practicing Company Secretary

Ahmedabad Ahmedabad

REGD. OFFICE

801-A, Wall Street-I, opposite Orient Club,Gujarat College Railway Crossing,

Ellisbridge, Ahmedabad-380006.

INVESTORS GRIEVANCE AND COMPLIANCE OFFICER

Pareshkumar R. Patel,Director & Compliance Officers

801-A, Wall Street-I, opposite Orient Club,Gujarat College Railway Crossing,


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16th ANNUAL REPORT 2009-10

NOTICE

NOTICE is hereby given to the Members of Lintas Mercantile Limited that 16th Annual General Meeting of the Membersof the Company will be held on Thursday the 30th September, 2010 at 04.00 P.M. at the Registered Office of theCompany at 801-A, Wall Street-I, opposite Orient Club, Gujarat College Railway Crossing, Ellisbridge, Ahmedabad-380006.to transact the following Business.

ORDINARY BUSINESS :

1. To Receive, Consider, Approve and Adopt the Audited Statement of Account i.e. The Audited Balance Sheet asat 31/03/2010, the Profit & Loss Account for the Year ended on that date and the report of the Auditors andDirectors thereon.

2. To Appoint a Director in place of Mr. Valay Piyushbhai Shah, who retires by rotation and being eligible offers himselffor reappointment.

3. To Appoint M/s. D J N V & CO., Chartered Accountants, as the Statutory Auditors for the next Financial Yearto hold the office as such from the conclusion of this Annual General Meeting up to the date of next AnnualGeneral Meeting and to fix their remuneration.

NOTES :

i) A Member entitled to attend and vote at the meeting is also entitled to appoint a proxy to attend and vote insteadof him and that a Proxy need not be a member of the Company.

ii) Proxies in order to be effective should be duly completed in the prescribed form stamped and signed and mustbe deposited at the Registered office of the company no less than 48 hours before the time fixed for the meeting.

iii) Members desiring any information as regards account are requested to write to the company at least 7 daysbefore the meeting to enable the management to keep the information ready.

iv) Members are requested to intimate any change in their registered addresses if any directly at the Registered Officeof the Company at their address mentioned elsewhere in this report.

v) The Register of members and share transfer books of the company shall remain closed on 21/09/2010 to 30/09/2010. For the purpose of Annual General Meeting as per requirements of section 154 of the Companies Act1956 and in compliance to Listing Agreement with stock exchanges.

By Order of the Board of Directors ofLintas Mercantile Limited

SD/-DATE : 1ST September, 2010 (Panalal C. Modi)PLACE : Ahmedabad Chairman And Director


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DIRECTORS’ REPORT

To,The Members,LINTAS MERCANTILE LIMITED

Dear Shareholders,

Your Directors have pleasure in presenting herewith the 16th Audited Annual report of your Company for the financialyear ended on 31st March 2010.

FINANCIAL HIGHLIGHTS :During the year under review the financial performance of the Company is as under: (Amount in Rupees)

Particulars For the Year For the YearEnded on Ended on31/03/2010 31/03/2009

Gross Income 1,65,959 1,50,243

Total Expenses 1,11,291 1,08,320

Profit Before Tax 54,668 41,923Provision for Tax 0.00 5000

Adjustment of I. tax Of Earlier years 0.00 0.00

Provision for FBT 0.00 0.00

Net Profit After Tax / (Loss) for the Year 54,668 36,923Deferred Tax Assets (Previous year liabilities) (10333) (13899)

Net Loss for the Year. 65,001 50,822

Previous year Balance B/f. 0.00 0.00

Total Profit Transferred to Balance Sheet. 65,001 50,822

Earning Per Share 0.004 0.004

DIVIDEND :As your company has earned very low profit during the year, your board of directors do no recommended any amountof dividend to the shareholder

UNPAID/UNCLAIMED DIVIDEND :The Company does not have any outstanding unpaid/unclaimed dividend which is required to be transferred to the InvestorsEducation and Protection funds as per the provision of Section 205C of the Companies Act, 1956. The Company doesnot have any outstanding liability on account of Interest and Principal on Deposits, Debentures or Share ApplicationMoney.

SHARE CAPITAL STRUCTURE :There was no change in Authorized Capital, Issued Capital, Subscribed and Paid-up Capital of the Company duringthe year.

BUY BACK OF EQUITY SHARES :The Company had not made any Buy Back of its paid up equity shares during the year in terms of section 77A,77AA and 77B of the Companies Act 1956. Hence no specific disclosure is required to be made in this report.

YEAR UNDER REVIEW :Company has earned a Total Income of Rs.1,65,959/- (Previous year it was Rs 1,50,243/-). After all AdministrativeExpenditure and Depreciation of Rs 1,11,291/- (Previous year Rs. 1,08,320/-) the company has earned operational

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Profit before tax of Rs.54,668/- (Previous year Profit of Rs.41,923/-). The company has earned net profit after tax ofRs.54,668/- (Previous Year Profit Rs.36,923/-) After making necessary adjustments for Deffered Tax Your Companyhad a Net Profit for the year transferred to balance sheet is Rs.65,001/- (Previous year Profit of Rs. 50,822/-).

SETTLEMENT/LIQUIDATION OF FINANCIAL LIABILITIES :The company has no any settlement/liquidation of Financial Liabilities .It is not a sick company as per audited balancesheet for the current year.

FUTURE BUSINESS PLANS :During the year Company is planning to find Business Opportunities to enable it to carry on the business of Planters,Growers, and dealers. Merchants, lenders, packers, importers and exporters of tea and coffee and their seeds andany products incidental their to and by products. For the purpose company has acquired, land blocks in the city ofAhmedabad for development.

DEMATERIALISATION OF SECURITIES :Your Company’s equity shares are already admitted in the System of Dematerialization by both the Depositories namelyNSDL and CDSL. The Company has already signed tripartite Agreement through Registrar and Share Transfer AgentM/s. Sharepro Services. The Investors are advised to take advantage of timely dematerialization of their securities. TheISIN allotted to your Company is INE 702 D 01017.

COMPLIANCE TO CODE OF CORPORATE GOVERNANCE :The Complete Report on Corporate Governance is given separately after this report.

MANAGEMENT’S DISCUSSION AND ANALYSIS :Management’s discussion and perceptions on existing business, future out look of the industry, future expansion anddiversification plans of the Company and future course of action for the development of the Company are fully explainedin a separate Para in Corporate Governance Report in Annexure-A forming part of this report and also report on CorporateGovernance.

DEPOSITS :During the year under review your company has neither invited nor accepted any public deposit or deposits from thepublic as defined under Section 58A of the Companies Act-1956. The Deposits were accepted from the Directors areexempt as per the provisions of Section 58A of the Companies Act 1956.

DIRECTORS :During the year under review Shri Valay Piyushbhai Shah shall retire by rotation at the ensuing Annual General Meetingas provisions of Law. They are eligible for reappointment as director and has offered themselves for directorship ofthe company. Hence, your directors recommend reappointing them by passing resolutions.

DIRECTORS’ RESPONSIBLITY STATEMENT :Pursuant to the provision contained in Section 217(2AA) of the Companies Act, 1956, the Directors of your Companyconfirm :

(A) That in the preparation of the annual accounts, the applicable accounting standards has been followed and nomaterial departure has been made from the same;

(B) That they have selected such accounting policies and applied them consistently and made judgments and estimatesthat are reasonable and prudent so as to give a true and fair view of the state of affair of the company at theend of the financial year and of the profit or loss of the company for that period;

(C) That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordancewith the provisions of this Act for safeguarding the assets of the company for preventing and detecting fraud andother irregularities;

(D) That they have prepared the annual accounts on a going concern basis.

STATUTORY AUDITORS :M/s. D J N V & CO., present Statutory Auditors of the company have given their letter of consent and confirmationunder section 224(1B) the Companies Act 1956 for reappointment as Statutory Auditors of the Company. Necessary


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Resolution making their appointment as the Statutory Auditors and fixing their remuneration is proposed to be passedat the Annual General Meeting.

AUDITORS OBSERVATION :There are no observations made by the Auditors in their report. However notes to the Accounts itself are clarificatoryand self explanatory in the nature.

FORMATION OF AUDIT COMMITTEE :In compliance to the Provisions of Section 292A of the Companies Act 1956 and clause 49 of the Listing Agreementon Corporate Governance in part, your directors have already formed an Audit Committee within the organization consistingof 3 independent directors, an advisor (Chartered Accountants) to internal audit Department and Practicing CompanySecretary as advisors to the company. The area of operations and functional responsibilities assigned to the committeeare as per the guidelines provided in Clause 49 of the Listing Agreement for implementation of code of corporate governance.The committee meets at least once in a quarter and gives its report of each meeting to the Board for its approval,record and information purpose.

EMPLOYEES :There are no employees of the company who were in receipt of the remuneration of Rs.24, 00,000/- in the aggregateif employed for the year and in receipt of the monthly remuneration of Rs. 2,00,000/- in the aggregate if employedfor a part of the year under review. Hence the information required under Section 217 (2A) of the Companies Act,1956 being not applicable are not given in this report.

STATUTORY INFORMATION :The Information required to be disclosed in the report of the Board of Directors as per the provisions of Section 217(1)(e) of the Companies Act-1956 and the Companies (Disclosure of Particulars in the Report of Board of Directors)Rules 1988 regarding the conservation of energy, technology absorption, foreign exchange earnings and outgo, as thecompany is only trading in shares and no other transaction related to this section was made during the financial yearbeing numerous the same are not furnished in this report.

MATERIAL CHANGES :Except the information given in this report there are no material changes have taken place after completion of thefinancial year up to the date of this report which may have substantial effect on business and finances of the company.

APPRECIATION :Your Directors take this opportunity to acknowledge the trust reposed in your company by its Shareholders, Bankersand Clients. Your Directors also keenly appreciate the dedication & commitment of all our employees, without whichthe continuing progress of the company would not have been possible.

On behalf of the Board of Directors ofLintas Mercantile Limited


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REPORT ON CORPORATE GOVERNANCE

MANAGEMENT PERCEPTION ON CORPORATE GOVERNANCE :The company believes that good Corporate Governance practices enable the Board to direct and control the affairsof the company in an efficient manner. As such, the company steps to put in place the system of Corporate Governanceas per the guidelines provided in Clause 49 of the Listing Agreement. Further with the formation of the various committeeswithin the organizations, the company also complies with various provisions of the Companies Act, 1956 as well asSEBI and Stock Exchange requirements. Hence, as per the norms prescribed under Listing Agreement being applicableto the company and in compliance to Section 292A of the Companies Act, 1956, the company had partly compliedwith the code of corporate governance on 31st March 2010.

BOARD COMPOSITION :

Name of the Director Designation Type Executive / Non Executive

Mr. Pannalal C. Shah Chairman & Director Independent Director Non-ExecutiveMr. Nimesh M. Shah Director Independent Director Non-ExecutiveMr. Paresh R. Patel Director & Compli. Officer Independent Director Non ExecutiveMr. Valay P. Shah Director Non-Promoter Director Non Executive

COMPOSITION OF COMMITTEES :A. AUDIT COMMITTEE :

Name Type1 Shri Pannalal Shah Chairman2 Shri Nimesh M. Shah Member3 Shri Paresh R. Patel Member4 Shri Kamlesh M. Shah* Company Secretary to act as secretary to committee

INVESTOR GRIEVANCE COMMITTEE :

Name Type1 Shri Pannalal Shah Chairman2 Shri Nimesh M. Shah Member3 Shri Valay P. Shah Member4 Shri Paresh R. Patel Member5 Shri Kamlesh M. Shah* Company Secretary to act as secretary to committee

*(In the Advisory capacity only)

NO. OF BOARD AND COMMITTEE MEETINGS HELD DURING THE YEAR :

Name of the Committee No. of Meetings heldBoard 6Audit Committee of Board 4Investor Grievance Committee 12

ATTENDANCE OF THE DIRECTORS IN VARIOUS MEETINGS :

Name of the Director Board Meeting ACB Meeting IGCB Meeting1 Mr. Pannalal C. Shah 6 - -2 Mr. Nimesh M. Shah 6 4 123 Mr. Valay P. Shah 6 4 124 Mr. Paresh R. Patel 6 4 12


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DIRECTORS PRESENT AT THE LAST ANNUAL GENERAL MEETING DATED 30TH SEPTEMBER, 2005 :

Name Type

1 Shri Pannalal C, Shah Chairman & Managing Dir.2 Shri Nimesh M. Shah Director3 Shri Valay P. Shah Director4 Shri Paresh R. Patel Director

DETAILS OF ANNUAL GENERAL MEETINGS HELD DURING THE LAST 5 FINANCIAL YEARS :

1. September 30, 2005 801-A, Wall Street-I, opposite Orient Club,Gujarat College Railway Crossing, Ellisbridge, Ahmedabad-380006.




5. September 30, 2009 801-A, Wall Street-I, opposite Orient Club,Gujarat College Railway Crossing, Ellisbridge, Ahmedabad-380006

FUNCTIONS OF AUDIT COMMITTEE :The Audit Committee is headed by Shri Pannala C. Shah as Chairman and Director includes other director namelyShri Paresh R. Patel, Shri. Nimesh M. Shah and Kamlesh M. Shah. The Committee is regularly giving feed backon daily financial and accounting position of the company to the Board. In addition thereto the company has alsoappointed Mr. Paresh R. Patel, Finance Controller of the Company to see the execution of the entire accounts, financefunctions of the company He also seek advice of independent professional persons as advisors on the committee i.e.Ms. D J N V & CO. and Mr. Kamlesh M. Shah a Practicing Company Secretary from time to time. The role of professionaladvisors has been of an Advisory nature. They do not take part in the proceedings of the committee. However theyare giving their expert guidance on making compliance with the Accounting Standards, Financial transactions andaccounting and Taxation matters, Company Law and other Corporate Legal Matters etc.The Committee meets at least once in every quarter and prepare its minutes on the proceedings and business discussed,transacted. All committee Reports and minutes are placed before the Board in all its meetings for information, guidance,directions and taking the same on record.

ESTABLISHMENT OF THE INTERNAL AUDIT SYSTEM :The company has already established the Internal Audit System under the Chairmanship of the Audit Committee. TheManaging Director and the Chief Financial Officer of the company both are jointly responsible for giving full accountsto the committee including to carry out any suggestions of the committee. The audit system ensures proper financialcontrol and accounting of the transactions as per the established accounting standards.

FUNCTIONS OF INVESTORS SERVICES COMMITTEE :This Committee looks in to all aspects and business related to Shares and retail investors. The Committee also looksafter the Dematerialization process of equity shares.The Committee is also empowered to keep complete records of Shareholders, Statutory Registers relating to Sharesand Securities, maintaining of the complete records of Share Demated, Investors Grievances and complaints receivedfrom investors and also from various agencies.The Committee also take advise and seek legal opinions from advocates to look after the legal cases and problemsrelating to the investors, shares etc.The Committee meets every month to approve all the cases of shares demate, transfer, issue of duplicate and resolutionof investors complaints, submission of information to various statutory authorities like NSDL/CDSL, SEBI, StockExchanges, Registrar of Companies periodically and from time to time.Other functions, roles, duties, powers etc. have been clearly defined in line with the Clause 49 of the Listing Agreementand are kept flexible for modification by the Board from time to time.

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PASSING OF THE RESOLUTIONS BY POSTAL BALLOT SYSTEM :The Company had not passed any resolution by means of Postal Ballot at the last Annual General Meeting. The Companyhad during the financial year not passed any resolutions by means of Postal Ballot system.

MANAGEMENT DISCUSSION AND ANALYSIS :(a) PRESENT STRENGTH OF THE COMPANY :

The company has made extensive efforts in developing various activities used in Planters, Growers, and dealers.Merchants, lenders, packers, importers and exporters of tea and coffee and their seeds and any products incidentaltheir to and by products. For the purpose company has acquired, land blocks in the city of Ahmedabad for developmentof multiplex theatre and shopping complex.

(b) FUTURE OUT LOOK :There is a strong buoyancy in the market for tea and coffee and their seeds and any products incidental theirto and by products and company is also showing good demand of product in the market. There is a bright futurefor the company. Once, directors find the proposal commercially viable and receives good orders, the companywill immediately start production unit which will start earning good amount of profit of the company.

(c) COMPANY’S ACTION PLAN :The management of your company is trying to identify and explore all the available possibilities for smooth marketingof the products of company with best available remunerative prices and also provide very good sales services.

WHILSTEL BLOWER POLICY :A) OVER COMING BARRIERS OF CURRENT OPERATIONS :

This system is established under the chairmanship of Shri Panalal C. Modi. (Managing Director) and he will befurther assisted by chief operational officer ( COO) and chief financial officer (CFO) Mr. Paresh R. Patel. The company’soperational department ensures whistle blower upon failure / shut down or breaks down of manufacturing, supplysystems and service utilities of its resort project division. Upon such intimation the company has established theUPS systems for overcoming power failure problems, has established data back up systems on CDs, and is alsoin the process of hiring the data warehouse for retrieval of the information.The CFO blows the whistle upon any possible financial crunch or over/extensive financial liabilities. The short termfinancial management system ensures overcoming any unforeseen liabilities through overdrafts on deposits or temporaryborrowing on Inter Corporate deposits basis. The long term financial planning ensures productive use of long termfinancial funds. The company as far as possible ensures making separation in usage of short term and long termfunds.

B) POSSIBLE THREATS TO FINANCIAL SYSTEMS :The company operates in Planters, Growers, and dealers. Merchants, lenders, packers, importers and exportersof tea and coffee and their seeds and any products incidental their to and by products wherein the company isrequired to make heavy financial investment in products, high cost of manpower which are basically in the natureof revenue (Short Term) but the product being generated is of long term usage and can be marketed over theyears which generates revenue in years. Further the company also faces threats of possible shortage of shortterm funds due to non completion of final products or delay in completion of the final products.

C) MANAGEMENT’S ACTION PLANS : (TO OVERCOME POSSIBLE SYSTEM FAILURES)These are the areas which are difficult for any management to overcome and control. Even though the company’sHRD and technical department ensures performance appraisal of manpower which to some extent help in eliminatingthis risk.

DISCLOSURES :A) MATERIALLY RELATED PARTY TRANSACTIONS :

Except all the Directors of the Company being relatives of each other, there are no other related partytransactions. There are no other Group/ Associate Concerns, Companies under the same management. During


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the year as there was no commercial business activities, there was no related party transactions within thecompany. However, Name of the Related party & description of the relationship are disclosed in the Notes to theAccounts as per AS-18.

B) DETAILS OF NON-COMPLIANCE :No penalties imposed on the company or any of its directors by stock exchanges or SEBI or any statutory authorityon any matter related to capital markets during the last three years.

MEANS OF COMMUNICATIONS :A] ESTABLISHMENT OF INTERNAL MANAGEMENT INFORMATION SYSTEMS :

The company has established the Management Information System (MIS) whereby each and every functionaldepartment submits their performance reports and any type, nature, description of problems to their Functional heads.The functional heads have autonomy for redressal of problems and HRD problems or functional problems at theirown level. Any problems requiring policy decisions are being intimated to Audit Committee for redressal or amendmentsin the policy and procedures. The progress reports are being regularly on monthly basis intimated to the AuditCommittee through the Financial Officer of the company who in turn put the same to Audit Committee meetings.All the Investors’ grievances or share department related queries are addressed to the Compliance Officer who inturn put the same before the Investors’ Grievances Committee.

B] INFORMATION SYSTEM BETWEEN COMMITTEES AND THE BOARD :Both Audit Committee and Investors’ Grievances Committees receive periodical regular information from the concernedfunctional heads, after resolutions of all the problems communicate back the same to functional heads for furthercommunications. The progress report and minutes of all meetings held of both the committees are being placedbefore the Board for information and taking the same on records.

C] INFORMATION SYSTEM BETWEEN THE COMPANY AND INVESTORS :The company is regularly taking on record the unaudited financial results on quarterly basis as per requirementsof the Clause 41 of the Listing Agreement and the same are published in English and Gujarati newspapers intime. Further these original paper cuttings are also being submitted to Stock Exchanges in time. The materialinformation relating to the business of the company are being intimated to the Stock Exchange who in turn publishthe same in their daily official bulletin. The Audited Financial Balance Sheet is being dispatched to all shareholdersin time at their registered addresses.

STATUTORY COMPLIANCES MADE AND RETURNS ETC. FILEDThe company has duly complied with the provisions of the Companies Act 1956, all the provisions of the Listing Agreement.The company has also filed various unaudited Financial Results, Balance Sheets, Income Tax returns and other statutoryreturns with all the authorities in time. There are no defaults as on date in any such compliances and no legalaction of any nature has been taken against the company or its officers / directors.

OTHER DETAILS :

REGISTERED OFFICE : 801-A, Wall Street-I, Opp.- Orient Club,Gujarat College Railway Crossing,Ellisbridge, Ahmedabad-380006.

BOOK CLOSURE DATES : SEPT.21, 2010 to SEPT.30, 2010

REGISTRAR AND SHARETRANSFER AGENT : Sharepro Services (India) Pvt.Ltd

13/A-B, Samhita Warehousing Complex,2ND Floor, Sakinaka Telephone Exchange,Off Andheri – Kurla Road,Sakinaka, Andheri East, Mumbai-400072.

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DETAILED PROGRAMME OF THE 15TH ANNUAL GENERAL MEETING :DATE : 29TH SEPTEMBER, 2007DAY : SaturdayTIME : 04.00 P.M.VENUE : REGISTERED OFFICE OF THE COMPANY AT :

801-A, Wall Street-I, opposite Orient Club,Gujarat College Railway Crossing, Ellisbridge, Ahmedabad-380006

LISTING DETAILS : Equity Shares of the company are listed and traded onThe Stock Exchange, AhmedabadThe Stock Exchange, Mumbai

STOCK EXCHANGE CODE : ASE Code : 060870BSE Code : 531510

MARKET QUATATIONS NUMBER OF SHARES TRADING DETAILS DURING THE FINANCIAL YEAR :There were no actual trading in shares recorded during the year on ASE and BSE. Hence, no details on price movementsmonth wise trading details are given herewith.As the stock of the company is not forming part of any INDEX OF THE STOCK EXCHANGE and there were no actualtrading in shares no price movement comparison with INDEX movement is given as it is irrelevant

On behalf of the Board of Directors ofLintas Mercantile Limited


AUDITORS’ REPORT ON WITH CORPORATE GOVERNANCE

ToThe Members ofLINTAS MERCANTILE LIMITED

We have examined the relevant records for the year ended March 31, 2010 relating to the Compliance with the requirementof corporate Governance as stipulated under clause 49 of the Listing Agreement with the Stock Exchanges.

On the basis of our review and according to the information and explanations given to us by the company, westate that in our opinion and to the best of our knowledge, the Company has complied with the mandatoryrequirements as contained in the Listing Agreement with the Stock Exchanges and as per Section 292A of the CompaniesAct 1956.

For DJNV & CO.Chartered Accountants

SD/-(Jayesh Parikh)

DATE : 1ST September, 2010 PartnerPlace : Ahmedabad Membership No: 44612


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AUDITOR’S REPORT

To,The members of,LINTAS MERCANTILE LIMITED

1. We have audited the attached Balance Sheet of LINTAS MECANTILE LTD. for the year ended 31st March, 2010and the Profit & Loss Account and the Cash Flow statement for the year ended on that date, annexed thereto.These financial statements are the responsibility of the Company’s management. Our responsibility is to expressan opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management as well as evaluating the overall financial statement presentation. Webelieve that our audit provides a reasonable basis for our opinion.

3. As required by the Companies ( Auditor’s Report ) Order, 2003, as amended by the Companies (Auditor’s Report)(Amendment) Order , 2004 issued by the Central Government in terms of Section 227 (4A) of the CompaniesAct, 1956 we enclose in the Annexure a statement on the matter specified in paragraphs 4 & 5 of the saidorder.

4. Further, we report that :

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessaryfor the purposes of our audit;

(b) In our opinion, proper books of account as required by the law have been kept by the company so far as appearsfrom our examination of the books;

(c) The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the Books of Account;

(d) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the AccountingStandards referred to in Sub Section (3C) of Section 211 of the Companies Act, 1956 .

(e) On the basis of written representations received from the Directors of the company as at March 31, 2010 andtaken on record by the board of directors, we report that no director is disqualified from being appointed as directorof the company under clause (g) of sub- section (1) of section 274 of the Companies Act, 1956.

(f) Subject to the above, in our opinion and to the best of our information and according to the explanations givento us, the said accounts read together with Accounting Policies and other notes thereon, give the information requiredby the Companies Act, 1956, in the manner so required and give a true & fair view;

(I) in case of the Balance Sheet, of the state of Affairs of the company as at 31st March, 2010

(II) in case of the Profit & Loss Account, of the Profit for the year ended on that date and

(III) in the case of Cash Flow Statement, of the cash Flow for the year ended on that date.


Firm No. 1151454W

SD/-DATE : 1ST September, 2010 (Jayesh Parikh)Place : Ahmedabad Partner

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ANNEXURE TO THE AUDITOR’S REPORT

(1) (a) In our opinion and according to the information and explanation given to us ,the company hasmaintained all the relevant records showing full particulars including quantitative details and situation of fixedassets.

(b) In our opinion, the fixed assets have been physically verified by the management at reasonable intervals havingregard to the size of the company and the nature of its assets. No material discrepancies were noticedon such verification.

(c) The Company has not disposed of substantial part of fixed Assets during the year.

(2) (a) According to the information given to us, physical verification have been conducted at reasonable intervalsduring the year by the management.

(b) In our opinion, the procedure of physical verification of stock followed by the management are reasonableand adequate in relation to the size of the company and the nature of the business.

(c) The company has maintained proper records of inventory. No material discrepancies were noticed on physicalverification.

(3) The company has neither granted nor taken any loans, secured or unsecured to or from parties covered in theregister maintained under Section 301 of the companies Act, 1956. Accordingly, clause III (a) to (g) of the orderare not applicable.

(4) In our opinion and according to the information and explanation given to us, there are Adequate internal controlprocedures commensurate with the size of the company and the nature of its business with regard to the purchaseof inventory, fixed assets and with regard to the sale of goods. During the course of our audit, no major weaknesseshas been noticed in the internal controls.

(5) According to the information and explanation given to us, during the year, there were no transactions that needto be entered into the register maintained under section 301 of the Companies Act,1956. Accordingly, paragraph(v)(a) and (b) of the order, are not applicable.

(6) In our opinion and according to the information and explanations given to us, the company not accepted any depositsfrom the public which falls within the provisions of section 58 A and 58 AA of the Companies Act, 1956, andthe rules framed there under.

(7) In our opinion, the company has an internal audit system commensurate with the size and nature of itsbusiness.

(8) To the best of knowledge and according to the information given to us, the Central Government has not prescribedmaintenance of cost record under section 209 (1)(d) of the Companies Act, 1956.

(9) (a) According to the information and explanations given to us and on the basis of our examination of the booksof accounts, the company is regular in depositing undisputed statutory dues including Provident Fund, Investoreducation protection fund, Employee State Insurance, Income Tax, Sales Tax, Wealth Tax ,Service Tax, Customduty, Excise Duty, Cess and other statutory dues with the appropriate authorities.

(b) According to information and explanation given to us, no undisputed amounts payable in respect of IncomeTax, sales Tax , Excise Duty , ESI, Wealth Tax, Service Tax, Investor Education Protection Fund etc. werein arrears as at 31st March, 2009 for a period more than six months from the date they became payable.

(10) The company does have accumulated losses at the end of the financial year and the company has not incurredcash losses during the financial year covered by our audit and in the immediately preceding financial year.

(11) In our opinion and according to the information and explanation given to us, the company has not defaulted inrepayment of dues to a financial institution / bank.

(12) According to the information & explanation given to us, the company has not granted loans and advances onthe basis of security by way of pledge of shares, debentures and other securities.

(13) In our opinion, the company is not a chit fund or a nidhi / mutual benefit fund/society. Therefor, the provisionof clause 4(xiii) of the companies (Auditor’s Report) order, 2003 are not applicable to the company.


13

(14) In our opinion, proper records have been maintained of the transactions and contracts of trading in shares, securities,debentures and other investments and timely entries have been made therein. All stocks of trading shares havebeen held by the company except to the extent of exemption if any granted u/s 49 of the companies Act,1956.

(15) According to the information & explanations given to us, the company has not given any guarantees for the loanstaken by others from banks or financial institutions

(16) This clause is not applicable as the company has not raised any term loan during the year.

(17) According to the information and explanations given to us and on an overall examination of the balance sheetof the company, we report that the no funds raised on short term basis have been used for long term investment.

(18) According to the information and explanation given to us, the company has not made preferential allotment ofshares to parties and companies covered in the register maintained under section 301 of the Act.

(19) According to the information and explanations given to us, Company has not issued any debenture during theyear. Hence reporting on the question of securatisation do not arise.

(20) The company has not raised any fund by way of public issues during the year.

(21) Based upon the audit procedures performed and on the basis of information and explanation provided by themanagement, we report that no fraud on or by the company has been noticed or reported during the year ended31st March, 2009.


Firm No. 115145W

SD/-DATE : 1ST September, 2010 (Jayesh Parikh)Place : Ahmedabad Partner

14


BALANCE SHEET AS AT 31ST MARCH, 2010

PARTICULARS SCH. 31-03-2010 31-03-2009NO. Amount Amount Amount

Rs. Rs. Rs.

SHARE HOLDERS FUND :A) SHARE CAPITAL A 107059000 107059000B) RESERVES AND SURPLUS 0 0

107059000 107059000LOAN FUND :A) SECURED LOAN 0 0B) UNSECURED LOAN 0 0

0 0DEFFERD TAX LIABILITY B 462086 462086 472419

TOTAL 107521086 107531419

APPLICATION OF FUNDS :FIXED ASSET : CGROSS BLOCK 3404463 3404463LESS : DEPRECIATION 1743110 1659271NET BLOCK 1661353 1745192CAPITAL WORK IN PROGRESS D 19623000 19623000CURRENT ASSETS, LOANS & ADVANCES : ESTOCK IN HAND 43813990 43813990DEBTORS 40153497 40001506CASH & BANK BALANCE 13375 15830LOANS ADVANCES 746128 746128DEPOSITS 2000 2000

84728990 84579454LESS : CURRENT LIABILITIES & PROVISIONS FSUNDRY CREDITOR 89193 78163PROVISION 36000 36000

125193 114163NET CURRENT ASSETS 84603797 84465291PROFIT & LOSS A/C G 1632935 1697936

TOTAL 107521086 107531419

SIGNIFICANT ACCOUNTING POLICIES/NOTES TO ACCOUNTS I

Schedules referred to above form an integral part of financial statementsAs per our Audit Report of even date

For DJNV & CO. For, Lintas Mercantile LimitedChartered AccountantsFirm No.: 115145W

(JAYESH PARIKH)Partner DIRECTOR DIRECTOR

Place : Ahmedabad Place : AhmedabadDate : 01-09-2010 Date : 01-09-2010


15

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010

PARTICULARS SCH CURRENT PREVIOUSNO. YEAR YEAR

Amount Rs. Amount Rs.

INCOME :

Income from Opertions 165959 150243

Total 165959 150243

EXPENDITURE :

Expense H 27452 11181

Depreciation 83839 97139

TOTAL 111291 108320

NET PROFIT BEFORE TAXATION 54668 41923

Provision for taxation 0 5000

PROFIT AFTER TAXATION 54668 36923

Deffered Tax Asset 10333 13899

NET PROFIT TRANSFERRED TO BALANCE SHEET 65001 50822

EPS 0.004 0.004

SIGNIFICANT ACCOUNTING POLICIES/NOTES TO ACCOUNTS I

Schedules referred to above form an integral part of financial statementsAs per our Audit Report of even date




16


SCHEDULES FORMING PARTS OF THE ACCOUNTS

PARTICULARS 31-03-2010 31-03-2009Amount Rs. Amount Rs.

SCHEDULE - A - SHARE CAPITAL :SHARE CAPITAL 122822000 122822000LESS : CALLS IN ARREARS 15763000 15763000

TOTAL 107059000 107059000

SCHEDULE - B - DEFERRED TAX LIABILITY :OPENING BALANCE 472419 486318ADD : DEFFERED TAX ASSET 10333 13899

TOTAL 462086 472419

SCHEDULE - C - FIXED ASSET :NAME OF ASSET GROSS BLOCK DEPRECITAION NET BLOCK

OPENING ADDITION DED. CLOSING OPENING ADDITION DED. CLOSING 31.03.10 31.03.09

LAND & SITE DEVELOPMENT 882000 0 0 882000 0 0 0 0 882000 882000

OFFICE PREMISES 680000 0 0 680000 160364 25982 0 186346 493654 519636

OFFICE EQUP 622035 0 0 622035 518767 14365 0 533132 88903 103268

FURNITURE & FIXTURE 1220428 0 0 1220428 980140 43492 0 1023632 196796 240288

TOTAL 3404463 0 0 3404463 1659271 83839 0 1743110 1661353 1745192

PREVIOUS YEAR 3404463 0 0 3404463 1562132 97139 0 1659271 1745192 1842331

SCHEDULE - D - CAPITAL WORK IN PROGRESS :Adv paid for Factory Building 4550000 4550000Adv paid for plant & machinary 13273000 13273000Adv paid for site development 1800000 1800000

19623000 19623000

SCHEDULE - E - CURRENT AASSET LOANS & ADVANCES :CLOSING STOCK :Stock in Trade (Shares) 43813990 43813990

TOTAL 43813990 43813990SUNDRY DEBTORS :More than six months 40153497 40001506Others 0 0

TOTAL 40153497 40001506

CASH & BANK BALANCE :Balance with nationalised bank 10820 4275Cash Balance 2555 11555

TOTAL 13375 15830


17

SCHEDULES FORMING PARTS OF THE ACCOUNTS

PARTICULARS 31-03-2010 31-03-2009Amount Rs. Amount Rs.

SCHEDULE - E - CURRENT AASSET LOANS & ADVANCES : (Contd.....)LOANS & ADVANCES :(Unsecured cosidered good unless otherwise stated)Advance Tax for A.Y. 09-10 5000 5000Trade Advances 741128 741128

746128 746128Deposits :A.E.C Deposit 2000 2000

2000 2000

SCHEDULE - F - CURRENT LIABILITIES & PROVISIONS :CREDITORS :Sundry Creditors for goods and for Expenses 89193 78163

TOTAL 89193 78163PROVISIONS :Provision for Taxation 36000 36000

TOTAL 36000 36000

SCHEDULE - G - RESERVES & SURLPUS :Opening Balance -1697936 -1748758Add.: Profit During the Year 65001 50822

TOTAL -1632935 -1697936

SCHEDULE - H - ADMINISTRATIVE EXPENSE :Bank charges 2422 151Consultancy Exp. 14000 0Salaries 0 0Share Transfer Agent Fees 0 0Income Tax Expenses 0 0Audit Fee 11030 11030

TOTAL 27452 11181

SCHEDULE - I - NOTES FORMING PART OF ACCOUNTS :

SIGNIFICANT ACCOUNTING POLICIES :The accounts are prepared on an accrual basis and under the historical cost conventions, and are in line with therelevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of CharteredAccountants of India.(A) SYSTEM OF ACCOUNTING :

The company has adopted the accrual basis of accounting in the preparation of the books of account.(B) REVENUE RECOGNITION :

(i) Company is in the Business of Trading and Investing in Shares & Securities and though records of sharestrading are maintained. Profit & loss on such Trading and Sale of investments is recognized in Books ofAccounts on realization of such Profit / Loss.

(ii) Dividend Income is accounted for on receipt basis.(iii) Interest is recognized an accrual basis.

(B) FIXED ASSETS AND DEPRECIATION :Fixed Assets are stated at cost less depreciation.

18


Depreciation on fixed assets is provided on Written down value Method as per rates specified in schedule XIVto the Companies Act 1956.

(C) INVENTORIES :The Company accounts for the shares and securities remaining unsold at the end of the year as Stock in Tradeand the same is valued at cost.

(D) PRELIMINARY EXPENSES & PUBLIC ISSUE EXPENSES :These have been amortised in accordance with the section 35D of the Income - tax Act 1961.

(E) CONTINGENT LIABILITY :Contingent Liabilities are determined on the basis of available information.

(F) SEGMENT REPORTING :The Board of Directors of the company are of the opinion that there are no separate reportable segment asper AS-17, as the entire operation of the Company is related to one reportable segment comprising of dealingin shares and securities.

(G) INCOME TAXES :(i) Current tax is measured at the amount expected to be paid to the taxation authorities , using the applicable

tax rates and tax laws.(ii) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced

up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequencesattributable to timing differences between the taxable income and accounting income. The effect of tax ratechange is considered in the Profit & Loss Account of the respective year of change.

(H) OTHER POLICIES :Accounting policies not specifically referred to above are considered with the generally accepted accounting practices.Previous year’s figure are regrouped / rearranged wherever necessary.The break up of Auditors Remuneration is as under :

2009-10 2008-09Audit Fees 11030.00 11030.00

11030.00 11030.00The maximum amount due from the Directors is Rs. Nil. Lacs (Previous year Rs. Nil lacs.)Provision of clause 4D of part II of schedule VI of the Companies Act, 1956, regarding value of imports expenditureincurred in Foreign Currency , amount of remittance in Foreign currency on accounts of dividends, export earningetc, are not given as all information required in the Clauses are Nil. ( Previous year Nil.)

6. Balance of Sundry Debtors, Creditors , Loans & Advances and Current liabilities and Classification under the aboveheads, in absence of any documentary support, given and accepted as agreed by management, are subject toconfirmation.

7. Quantitative Details :The company is trading in shares as they dealt in many shares and the transactions being numerous the sameare not furnished.

8. In the opinion of the Board the Current Assets, loans and Advances although unsecured considered good havethe value at each they are stated in the Balance Sheet if realized in the ordinary course of business.

9. Basic & Diluted EPS 2009-10 : 0.0042008-09 : 0.004

10. Previous years figures have been regrouped/ rearranged wherever necessary.11. The statement of Significant Accounting Policies and the Notes numbered 2 to 11 above form an integral part

of the accounts for the year ended 31st March, 2009.





19

ADDITIONAL INFORMATION AS REQUIRED UNDER PART-IV OF SCHEDULE-VITO THE COMPANIES ACT, 1956

BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE :

1. Registration Details :Registration No. ............................................................................................................................................... 23304State Code ............................................................................................................................................................. 04Balance Sheet Date ................................................................................................................................ 31.03.2010

2. Capital raised during the year :Public Issue ............................................................................................................................................................ --Right Issue .............................................................................................................................................................. --Bonus Issue ............................................................................................................................................................ --Private placement ................................................................................................................................................... --

3. Position of Mobilisation & Deployment of Funds :Total Liabilities ..........................................................................................................................................107521086Total Assets ..............................................................................................................................................107521086Sources of Funds :Paid up capital .........................................................................................................................................107059000Reserves & Surplus ............................................................................................................................................... --Deffered Tax Liability ..................................................................................................................................... 462086Secured Loans ........................................................................................................................................................ --Unsecured Loans .................................................................................................................................................... --Application of Funds :Net Fixed Assets ........................................................................................................................................ 1661353Investment ............................................................................................................................................................... --Net Current Assets ................................................................................................................................... 84603797Misc. Expenditure ................................................................................................................................................... --Profit & Loss Account - Debit Balance .................................................................................................... 1632935

4. Performance of the Company :Turnover .......................................................................................................................................................... 165959Total Expenditure ............................................................................................................................................ 111291Profit before Tax .............................................................................................................................................. 54668Profit after Tax ................................................................................................................................................. 65001Earnings Per Share in Rs. ............................................................................................................................. 0.004Dividend Rate % .................................................................................................................................................... --

5. Generic Names of three principal products / services of the company (as per monetary terms) :Item code ................................................................................................................................................................ --Product Description ................................................................................................................................................ --

For, Lintas Mercantile Limited

DIRECTOR DIRECTOR

Place : AhmedabadDate : 17-08-2009

-

20


CASH FLOW STATEMENT FOT THE YEAR ENDED ON 31.03.2010(PERSUANT TO CLAUSE 32 OF THE LISTING AGREEMENT)

Particulars 2009-10 2008-09Rs. Rs.

A. CASH FLOW FROM OPERATING ACTIVITY :Net Profit 65001 50822

Adjustment For :(a) Depreciation 83839 97139(b) Provision for tax 0 5000(c) Preliminery Exps. Written off. 0 0(d) Deferred Tax Liability /(Asset) -10333 -13899(e) Loss on sale of Asset 0 73506 0

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 138507 139062

Adjustment For :(a) Inventories 0 0(b) Sundry Debtors -151992 -1477070(c) Loans & Advances and Deposits 0 1347584(d) Current Liabilities & Provisions 11030 -140962 -11442

NET CASH FLOW FROM OPERATION -2455 -1866

B. CASH FLOW FROM INVESTING ACTIVITY :(a) Purchase/ sale of Fixed Asset (Net) 0 0

NET CASH USED IN INVESTING ACTIVITY 0 0

C. CASH FLOW FROM FINANCING ACTIVITIES :(a) Loan Fund 0 0

NET CASH FLOW FROM FINANCING ACTIVITIES 0 0

NET INCREASE/ DECREASE IN CASH ( A+ B+ C) -2455 -1866

OPENING BALANCE OF CASH & CASH EQUIVALENTS 15830 17696

CLOSING BALANCE OF CASH & CASH EQUIVALENTS 13375 15830

As per our Audit Report of even date

For DJNV & CO. For, Lintas Mercantile LimitedChartered Accountants

(JAYESH PARIKH)Partner DIRECTOR DIRECTORM.No.: 40650



21

LINTAS MERCANTILE LIMITEDRegd. Off.: 801-A, Wall Street-I, Opp. Orient Club, Gujarat College Railway Crossing,


.ATTENDANCE SLIP

I Shri/Smt. ____________________________________ of ___________ being a member/ proxy of LINTASMERCANTILE LIMITED do hereby record my presence at the 16th Annual General Meeting of the membersof the Company to be held on Thursday the 30th September, 2010, at 04.00 P.M. at 801-A, Wall Street-I,opposite Orient Club, Gujarat College Railway Crossing, Ellisbridge, Ahmedabad-380006.

Name of Shareholder : _____________________________________

Ledger Folio No.: _________________________________

D.P. NAME: : ____________________________________

D.P. I.D.: _________________________________________

CLIENT I.D.: ______________________________________

Number of Shares Held :____________________________

Date : (Signature of the Member/Place : Ahmedabad Proxy attending the meeting)

--------------------------------------------------------------------------- TERE HERE ---------------------------------------------------------------------------

LINTAS MERCANTILE LIMITEDRegd. Off.: 801-A, Wall Street-I, Opp. Orient Club, Gujarat College Railway Crossing,


PROXY FORM

Name of Shareholder : _____________________________________

Ledger Folio No.: _________________________________

D.P. NAME: : ____________________________________

D.P. I.D.: _________________________________________

CLIENT I.D.: ______________________________________

Number of Shares Held :____________________________

I Shri/Smt. ________________________________ being a member of LINTAS MERCANTILE LIMITED, holding _______Shares in the company do hereby appoint Shri _________________ of __________________ or failing him Shri__________________ of _____________________ or failing him Shri _____________________________ of_____________________ to remain present at the 16th Annual General Meeting of the members of the Companyto be held on Thursday the 30th September, 2010, at 04.00 P.M. at 801-A, Wall Street-I, opposite Orient Club,Gujarat College Railway Crossing, Ellisbridge, Ahmedabad-380006 or at any adjournment thereof and to vote for andon my behalf if poll is granted.

Date : (Signature of the Member/Place : Ahmedabad Proxy attending the meeting)

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