1 Corporate information:
 
 S Kumars Online Ltd. is a public company domiciled in India and
 incorporated under the provisions of the Companies Act, 1956. Its
 shares are listed on Bombay Stock Exchange in India. The company is
 mainly engaged in E-Commerce business.  The company also provides IT
 Management Consultancy and Equipment Rental Services.
 
                                                      (fig. in lacs)
 
                                              Mar. 31,2012  Mar. 31,2011
                                              Amount in 
                                                 Rs.        Amount in 
                                                               Rs.
 
 2.1 Contingent liabilities and commitments 
 (to the extent not provided for)
 
 (a) Income Tax Matters
 
 (Details given in table below)                 1,360.78      1,360.78
 
 (b) Legal cases with Franchisees and
 Strategic Business Associates                     34.63         40.78
 
 2.2 The Company has during the year, continued to incur pre-operative
 expenses in one of its new lines of business viz., Bollywood portal
 (BCOL) amounting to Amount in Rs. 21.87 Lacs which has been grouped under
 Fixed Assets in Balance Sheet. The management is of the opinion that
 the business is of enduring nature and the benefits will flow to the
 Company in the subsequent years. However during the year Company has
 written off pre-operative expenses amounting to Amount in 7 9.45 Lacs
 pertaining Media Centre (BTA), a new business which has been
 discontinued during the year.
 
 2.3 The Company is in regular communication, asking for account
 confirmations from all the Franchisees and Strategic Business
 Associates (SBAs) of which a substantial j part have been received and
 duly settled by the Company from time to time. The balances of
 remaining Franchisees and SBAs as represented by the books of account
 of the Company are subject to regular confirmation/reconciliation, if
 any, and the consequential effect on the loss for the year and on the
 respective assets and liabilities are presently unascertainable.
 However, the Company is of the opinion that no significant liability
 would arise on account of the said confirmation/reconciliation.
 
 2.4 During the year, the Company has settled certain pending legal
 cases with the Franchisees and SBAs by opting for Out of Court
 Settlements with the said parties.  This has resulted in a charge to
 the Profit and Loss Account by Rs. 2.79 Lacs under the head Loss on
 Settlement (Net) (Previous Year-Rs. 4.07 Lacs).
 
 2.5 In the opinion of the management, the Current Assets, Loans and
 Advances are realizable at the values represented in the accounts and
 adequate provision has been made in the accounts for all known
 liabilities, except to the extent wherever stated otherwise.
 
 2.6 The following table summarizes the components of the net employee
 benefit expenses recognized in the Profit and Loss Account and in the
 Balance Sheet for the gratuity as per the recommendations of the
 Accounting Standard -15 Employee Benefits.  No provision towards leave
 encashment is considered in the Company''s accounts.
 
 The defined Gratuity benefit obligation of the Company is unfunded and
 hence there are no planned assets which are maintained exclusively
 therefore. Accordingly, the said disclosure is not given. Also, no
 gratuity payments were made during the year ended 31st March 2012.
 
 2.7 Outstanding amounts payable to Micro, Small and Medium Enterprises
 included under Current Liabilities, as per the information available
 with the Company and relied upon by the auditors-Nil (Previous
 year-Nil).
 
 2.8 Taxation
 
 a) Current Taxation
 
 No provision has been made towards Current taxation keeping in view the
 carried forward losses under the Income Tax Act, 1961.
 
 b) Deferred Taxation
 
 (i) Breakup of Net Deferred Tax asset for the year
 
 (ii) Deferred Tax Asset on carried forward losses as per the Income-tax
 Act, 1961 has not been recognised in the accounts upon consideration of
 prudence aspect.  ''
 
 2.9 The Company has two reportable segments i.e. E-Commerce and IT
 Management Consultancy. The disclosure requirements as per the
 recommendations of Accounting Standard -17 Segment Reporting, during
 the year under review, are given as under: ''
 
 2.10 The Company is of the view that there are no indications of
 material impairment and the carrying amount of its fixed assets or
 where applicable, the cash generating unit to which these assets
 belong, do not exceed their recoverable amounts (i.e., the higher of
 the assets'' net selling price and value in use). Hence, no impairment
 had arisen during the year as per the recommendations of AS 28 -
 Impairment of Assets.
 
 2.11 Expenditure in Foreign Currency- 7 3.16 Lacs (Previous Year - Rs.
 78.79 Lacs) Earnings in Foreign Currency- Rs. 5.32 Lacs (Previous
 Year-1.58 Lacs).
 
 2.12 Till the year ended 31 st March, 2011 the company was using
 pre-revised Schedule VI To the Companies Act, 1956, for preparation and
 presentation of its Financials Statement. During the year ended 31st
 March, 2012, the revised Schedule VI notified under the Companies Act,
 1956, has become applicable to the company.  The adoption of revised
 schedule VI does not impact recognition and measurement principles,
 however it impacts disclosure and presentation of financials
 statements.