UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ ~~QUARTELY~~QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: ~~September~~December 3031, 2015

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 333-192399

KM WEDDING EVENTS MANAGEMENT, INC.
(Exact name of registrant as specified in its charter)

Delaware

46-1290754

(State or other jurisdiction of

(I.R.S. Employer Identification Number)

incorporation or organization)

11501 Dublin Blvd., Suite 200, Dublin, CA 94568
(Address of principal executive office and zip code)

(925) 891-8029
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The numbers of shares outstanding of the issuer’s class of common stock as of ~~November~~February 110, ~~2015~~2016 was 42,096,160 shares of ~~common~~ common stock outstanding.

KM WEDDING EVENTS MANAGEMENT, INC.

FORM 10-Q For the ~~Six~~Nine Months Period Ended ~~September~~December 3031, 2015

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION PAGE ITEM 1. FINANCIAL STATEMENTS 5 Condensed Consolidated Financial Statements 5 Condensed Consolidated Balance Sheets at September 30, 2015 (unaudited) and March 31, 2015 5 Condensed Consolidated Statements of Income for the Three and Six Months Ended September 30, 2015 and 2014 (unaudited) 6 Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended September 30, 2015 and 2014 (unaudited) 7 Condensed Consolidated Statement in Changes in Equity 8 Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2015 and 2014 (unaudited) 9 Notes to Condensed Consolidated Financial Statements (unaudited) 10 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION 19 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 23 ITEM 4. CONTROLS AND PROCEDURES 23 PART II - OTHER INFORMATION 23 ITEM 1. LEGAL PROCEEDINGS 23 ITEM 1A. RISK FACTORS 23 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 23 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 24 ITEM 4. MINE SAFETY DISCLOSURES 24 ITEM 5. OTHER INFORMATION 24 ITEM 6. EXHIBITS 24

PART I - FINANCIAL INFORMATION	PAGE

ITEM 1. FINANCIAL STATEMENTS	4
Condensed Consolidated Financial Statements	4
Condensed Consolidated Balance Sheets as at December 31, 2015 (unaudited) and March 31, 2015	4
Condensed Consolidated Statements of Income for the Three and Nine Months Ended December 31, 2015 and 2014 (unaudited)	5
Condensed Consolidated Statement in Changes in Equity	6
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended December 31, 2015 and 2014 (unaudited)	7
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2015 and 2014 (unaudited)	8
Notes to Condensed Consolidated Financial Statements (unaudited)	9
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION	18
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	21
ITEM 4. CONTROLS AND PROCEDURES	21

PART II - OTHER INFORMATION	22

ITEM 1. LEGAL PROCEEDINGS	22
ITEM 1A. RISK FACTORS	22
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	22
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	22
ITEM 4. MINE SAFETY DISCLOSURES	22
ITEM 5. OTHER INFORMATION	22
ITEM 6. EXHIBITS	23

2ii

KM WEDDING EVENTS MANAGEMENT, INC.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Caution Regarding Forward-Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to the factors described in the section captioned “Risk Factors” in our Quarterly Report on Form 10-Q for ~~year~~the period ended ~~March~~December 31, 2015 filed with the Securities and Exchange Commission.

In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “would” and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

Also, forward-looking statements represent our estimates and assumptions only as of the date of this report. You should read this report completely and with the understanding that our actual future results may be materially different from what we expect.

Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

Use of Certain Defined Terms

Except where the context otherwise requires and for the purposes of this report only:

•

“We,” “us” and “our” refer to KM Wedding Events Management, Inc. and, except where the context requires otherwise, KM India.

•

“KM” refers to KM Wedding Events Management, Inc., a Delaware corporation.

•

“KM India” refers to KM Wedding Events Management Private Limited, India, which is majority owned by KM.

•

“Indian Rupee”, Rs, and “Rupee” refers to Indian Rupee, the legal currency of India.

•

“U.S. dollar”, “$” and “US$” refer to the legal currency of the U.S.

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

KM Wedding Events Management, Inc
Interim Condensed Consolidated balance sheet as at September 30, 2015
Interim Condensed Consolidated Balance Sheets
(in US Dollars $ unless otherwise stated)
			as at September 30,			as at March 31,
				As at December 31,			As at March 31,
	~~Notes~~	Notes	~~2015~~	2015		~~2015~~	2015
			~~(unaudited)~~	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		3		~~106~~103,~~606~~781			97,960
Accounts receivable		4		~~527~~496,~~317~~549			551,575
Other current assets		5		~~539~~526,~~505~~824			603,314
Total current assets				1,~~173~~127,~~428~~154			1,252,849
Non-current assets:
Property, plant and equipment, net		6		~~113~~106,~~999~~892			124,073
Intangible assets, net		7		1714,~~023~~651			22,465
Goodwill		21		~~692~~694,~~850~~856			685,007
Film costs		24		2011,~~254~~334			12,289
Deferred tax asset, net				6160,~~731~~962			4,066
Other non-current assets		8		9082,~~209~~926			97,903
Total non-current assets				~~996~~971,~~066~~621			945,803
Total assets				2,~~169~~098,~~494~~775			2,198,652
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable and accrued liabilities		9		~~245~~287,~~485~~146			190,087
Statutory liabilities		10		~~259~~269,~~517~~550			247,731
Short-term loans & current portion of long term debt		11		~~179~~183,~~888~~900			217,843
Unsecured loans from related parties, net of advances		20		~~126~~218,~~934~~144			85,933
Other current liabilities		13		~~268~~205,~~686~~385			140,796
Total current liabilities				1,~~080~~164,~~510~~125			882,390
Non-current liabilities:
Long-term debt		12		~~252~~244,~~909~~872			279,943
Other non-current liabilities		14		2021,~~629~~214			20,412
Total non-current liabilities				~~273~~266,~~538~~086			300,355
Equity:
Common stock par value $ 0.001 (shares outstanding: 42,096,160 and 42,096,160 as at September 30, 2015 and March 31, 2015, respectively)		15		42,096			42,096
Common stock par value $ 0.001 (shares outstanding: 42,096,160 and 42,096,160 as at December 31, 2015 and March 31, 2015, respectively)		15		42,096			42,096
Additional paid-in-Capital				1,165,712			1,165,712
Accumulated deficit				(~~391~~493,~~242~~875	)		(228,981	)
Equity Attributable to equity holders of the company				~~816~~713,~~566~~933			978,827
Non-Controlling Interest				(145,~~120~~369	)		37,080
Total equity				~~815~~668,~~446~~564			1,015,907
Total liabilities and equity				2,~~169~~098,~~494~~775			2,198,652
The accompanying notes are an integral part to these interim condensed financial statements.

KM Wedding Events Management, Inc
Interim Condensed Consolidated Statement of Income
(in US Dollars $ unless otherwise stated)
		For the Three Months ended		For the Three Months ended		For the Nine Months ended		For the Nine Months ended
	Notes	December 31, 2015		December 31, 2014		December 31, 2015		December 31, 2014
		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenues
Matrimonial service income	16	155,251		450,929		452,888		1,053,819
Wedding event management income		—		177,086		38,789		389,364
Wedding infrastructure lease income		6,410		—		16,908		—
Total		161,661		628,015		508,585		1,443,183

Costs and expenses
Matrimonial service expenses	17	64,479		109,496		225,680		291,662
Wedding event management expenses		—		143,610		28,866		315,763
Wedding infrastructure maintenance expenses		3,155		—		7,430		—
Personnel costs		92,153		98,974		255,694		264,188
General and administrative expenses	18	112,770		172,953		349,068		410,716
Depreciation and amortization		8,122		8,654		23,932		22,218
Total		280,678		533,687		890,670		1,304,610
Operating Income / (loss)		(119,017	)	94,328		(382,085	)	138,573

Other income / (expenses)
Foreign exchange gain / (loss)		2,622		6,466		16,978		13,616
Miscellaneous income		—		(275	)	—		—
Interest Income		—		(151	)	—		7,802
Finance charges		(34,773	)	(13,385	)	(75,634	)	(45,943	)
Total other income / (expenses), net		(32,151	)	(7,345	)	(58,656	)	(24,525	)
Income / (loss) before income tax expense		(151,169	)	86,983		(440,741	)	114,048

Income taxes

Provision for Income taxes written back		—		—		12,294		—
Deferred tax benefit		—		31,464		75,371		31,464
Prior Period Taxes		—		(19,545	)	—		(19,545	)
Current Taxes		—		(25,965	)	—		(25,965	)
Net income / (loss)		(151,169	)	72,937		(353,076	)	100,002

Attributable to:
Equity holders of the company		(88,177	)	50,281		(268,238	)	24,449
Non-controlling interest		(62,992	)	22,656		(84,838	)	75,553
Net income / (loss)		(151,169	)	72,937		(353,076	)	100,002
Earnings / (loss) per share - basic and diluted	19	(0.0021	)	0.0012		(0.0064	)	0.0006

The accompanying notes are an integral part to these interim condensed financial statements.

KM Wedding Events Management, Inc
Interim Condensed Consolidated Statement of Income
Interim Condensed Consolidated Statement of Changes in Equity
(in US Dollars $ unless otherwise stated)
		For the three months ended		For the three months ended		For the Six months ended		For the Six months ended
	Number of Shares	Common Stock		Additional Paid-in Capital		Accumulated Deficit		Equity Attributable to equity holders of the company		Non-controlling interest		Total Equity
	Notes	30-Sep-15		30-Sep-14		30-Sep-15		30-Sep-14
As at March 31, 2014	41,646,160	41,646		1,031,162		(268,403	)	804,405		(53,710	)	750,695
		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Fresh issue of equity shares*	425,000	425		127,075		Nil		127,500		Nil		127,500
Revenues
Net income / (loss) for the period [After adjusting Comprehensive Income/(Loss)]	Nil	Nil		Nil		(27,147	)	(27,147	)	51,822		24,675
Matrimonial service income	16	130,547		331,086		299,012		602,890
As at December 31, 2014 (unaudited)	42,071,160	42,071		1,158,237		(295,550	)	904,758		(1,888	)	902,870
Wedding event management income		—		87,732		39,456		212,278
* 425,000 no of equity shares of par value $0.001 are issued at $0.30 per share. Also refer note 15 "Common Stock"
Wedding infrastructure lease income		2,915		—		10,549		—
As at March 31, 2015	42,096,160	42,096		1,165,712		(228,981	)	978,827		37,080		1,015,907
Total		133,462		418,818		349,017		815,168
Net income / (loss) for the period [After adjusting Comprehensive Income/(Loss)]	Nil	Nil		Nil		(264,894	)	(264,894	)	(82,449	)	(347,343	)
Costs and expenses
As at December 31, 2015 (unaudited)	42,096,160	42,096		1,165,712		(493,875	)	713,933		(45,369	)	668,564
Matrimonial service expenses	17	76,032		93,203		161,873		182,166
The accompanying notes are an integral part to these interim condensed financial statements.
Wedding event management expenses		—		74,633		31,170		172,153
Wedding infrastructure maintenance expenses		1,174		—		4,295		—
Personnel costs		66,777		82,860		164,323		165,214
General and administrative expenses	18	135,241		151,979		235,350		237,763
Depreciation and amortization		8,093		7,193		15,885		13,627
Total		287,317		409,868		612,896		770,923
Operating Income / (loss)		(153,855	)	8,950		(263,879	)	44,245
Other income / (expenses)
Foreign exchange gain / (loss)		8,608		7,150		13,971		7,150
Miscellaneous income		—		275		—		275
Interest Income		—		7,953		—		7,953
Finance charges		(20,638	)	(17,608	)	(40,882	)	(32,558	)
Total other income / (expenses), net		(12,030	)	(2,230	)	(26,911	)	(17,180	)
Income / (loss) before income tax expense		(165,885	)	6,720		(290,790	)	27,065
Income taxes
Provision for Income taxes written back		12,353		—		12,353		—
Deferred tax benefit		75,731		—		75,731		—
Net income / (loss)		(77,801	)	6,720		(202,706	)	27,065
Attributable to:
Equity holders of the company		(66,355	)	(30,955	)	(163,571	)	(25,832	)
Non-controlling interest		(11,446	)	37,675		(39,135	)	52,897
Net income / (loss)		(77,801	)	6,720		(202,706	)	27,065
Earnings / (loss) per share - basic and diluted	19	(0.0016	)	(0.0007	)	(0.0039	)	(0.0006	)
The accompanying notes are an integral part to these interim condensed financial statements.

KM Wedding Events Management, Inc
Interim Condensed Consolidated Statement of Changes in Equity
Interim Condensed Consolidated Statement of Comprehensive Income
(in US Dollars $ unless otherwise stated)
	Number of Shares		Common Stock		Additional Paid-in Capital		Accumulated Deficit		Equity Attributable to equity holders of the company		Non-controlling interest		Total Equity
	For the three months ended		For the three months ended		For the nine months ended		For the nine months ended
As at March 31, 2014	41,646,160		41,646		1,031,162		(268,403	)	804,405		(53,710	)	750,695
	December 31, 2015		December 31, 2014		December 31, 2015		December 31, 2014
Fresh issue of equity shares*	425,000		425		127,075		Nil		127,500		Nil		127,500
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Net income / (loss) for the period [After adjusting Comprehensive Income/(Loss)]	Nil		Nil		Nil		(27,147	)	(27,147	)	51,822		24,675
Net income / (loss)	(151,169	)	72,937		(353,076	)	100,002
As at September 30, 2014 (unaudited)	42,071,160		42,071		1,158,237		(295,550	)	904,758		(1,888	)	902,870
Other Comprehensive Loss
* 425,000 no of equity shares of par value $0.001 are issued at $0.30 per share. Also refer note 15 "Common Stock"
Foreign Currency Translation Profit/(Loss)	3,865		(4,210	)	5,733		(6,600	)
As at March 31, 2015	42,096,160		42,096		1,165,712		(228,981	)	978,827		37,080		1,015,907
Total Other Comprehensive Loss	3,865		(4,210	)	5,733		(6,600	)
Net income / (loss) for the period [After adjusting Comprehensive Income/(Loss)]	Nil		Nil		Nil		(162,261	)	(162,261	)	(38,200	)	(200,461	)
Attributable to:
As at September 30, 2015 (unaudited)	42,096,160		42,096		1,165,712		(391,242	)	816,566		(1,120	)	815,446
Equity holders of the company	2,254		(2,456	)	3,344		(3,630	)
The accompanying notes are an integral part to these interim condensed financial statements.
Non-controlling interest	1,611		(1,754	)	2,389		(2,970	)
Comprehensive Income/(loss)	(147,304	)	68,727		(347,343	)	93,402
The accompanying notes are an integral part to these interim condensed financial statements.

KM Wedding Events Management, Inc
Interim Condensed Consolidated Statement of Comprehensive Income
Interim Condensed Consolidated Statement of cash flow
(in US Dollars $ unless otherwise stated)
		For the three months ended			For the three months ended		For the Six months ended		For the Six months ended
	For the Nine Months ended			For the Nine Months ended
		30-Sep-15			30-Sep-14		30-Sep-15		30-Sep-14
	December 31, 2015			December 31, 2014
		(unaudited)			(unaudited)		(unaudited)		(unaudited)
	(Unaudited)			(Unaudited)
Net income / (loss)		(77,801	)		6,720		(202,706	)	27,065
Cash flows from operating activities
Other Comprehensive Loss
Net income / (loss)		(353,076	)		100,022
Foreign Currency Translation Profit/(Loss)		1,868			(2,240	)	2,245		(2,390	)
Adjustments to reconcile net income to net cash
Total Other Comprehensive Loss		1,868			(2,240	)	2,245		(2,390	)
provided by operating activities
Attributable to:
Depreciation and amortization		23,932			22,281
Equity holders of the company		1,090			(1,307	)	1,310		(1,315	)
Unrealized foreign exchange (gain) / loss		(16,767	)		(13,616	)
Non-controlling interest		778			(933	)	935		(1,075	)
Bad debts		36,915			47,432
Comprehensive Income/(loss)		(75,933	)		4,480		(200,461	)	24,675
Amortization of film costs		27,658			37,222
The accompanying notes are an integral part to these interim condensed financial statements.
Marketing Charges - Shares issued as consideration		—			—
Deferred tax benefit		(75,371	)		31,464
Provision for Income taxes written back		(12,294	)		—
Changes in operating assets and liabilities
(Increase) / Decrease in accounts receivables		12,083			(216,015	)
(Increase) / Decrease in other current assets		63,108			26,928
(Increase) / Decrease in film costs		(27,442	)		(34,910	)
(Increase) / Decrease in other non-current assets		9,311			29,075
Increase / (Decrease) in accounts payable		104,618			46,991
Increase / (Decrease) in income tax and other statutory liabilities		37,887			94,196
Increase / (Decrease) in other current liabilities		75,234			(181,201	)
Increase / (Decrease) in other non-current liabilities		2,115			523
Net cash provided by (used in) operating activities		(92,088	)		(9,628	)
Cash flows from investing activities
Additions to property, plant and equipment		(7,341	)		(9,689	)
Investments in long-term investments		—			135,000
Advance given for Investment		—			(60,000	)
Net cash provided by (used in) investing activities		(7,341	)		65,311
Cash flows from financing activities
Proceeds from short term debts		129,929			(188,648	)
Proceeds from issue of Equity Shares		—			127,500
Proceeds from / (repayment of) long term debts		(18,653	)		29,058
Net cash provided by (used in) financing activities		111,276			(32,090	)
Effect of exchange rate changes on cash		(6,026	)		(27,966	)
Net increase in cash and cash equivalents		5,821			(4,373	)
Cash and cash equivalents, beginning of period		97,960			88,616
Cash and cash equivalents, end of period		103,781			84,243
Supplementary disclosures of cash flow information
Cash paid during the year for:
Interest paid		75,634			45,943
Income taxes paid		8,999			16,956
Non-cash items:
Allotment of common stock		—			—
The accompanying notes are an integral part to these interim condensed financial statements.

KM Wedding Events Management, Inc
Interim Condensed Consolidated Statement of cash flow
(in US Dollars $ unless otherwise stated)
	For the Six months ended			For the Six months ended
	30-Sep-15			30-Sep-14
	(Unaudited)			(Unaudited)
Cash flows from operating activities
Net income / (loss)		(202,706	)		27,065
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization		15,885			13,627
Unrealized foreign exchange (gain) / loss		(14,213	)		(7,150	)
Bad debts		7,777			20,888
Amortization of film costs		18,829			17,549
Marketing Charges - Shares issued as consideration		—			67,500
Deferred tax benefit		(75,731	)		—
Provision for Income taxes written back		(12,353	)		—
Changes in operating assets and liabilities
(Increase) / Decrease in accounts receivables		12,231			(79,328	)
(Increase) / Decrease in other current assets		66,957			(23,825	)
(Increase) / Decrease in film costs		(27,573	)		17,670
(Increase) / Decrease in other non-current assets		2,987			28,764
Increase / (Decrease) in accounts payable		62,191			30,586
Increase / (Decrease )in income tax and other statutory liabilities		24,353			54,999
Increase / (Decrease) in other current liabilities		137,580			(161,704	)
Increase / (Decrease) in other non-current liabilities		1,256			369
Net cash provided by (used in) operating activities		17,470			7,010
Cash flows from investing activities
Additions to property, plant and equipment		(7,329	)		(7,704	)
Investments in long-term investments		—			4,186
Advance given for Investment		—			(60,000	)
Net cash provided by (used in) investing activities		(7,329	)		(63,518	)
Cash flows from financing activities
Proceeds from short term debts		17,146			(18,932	)
Proceeds from issue of Equity Shares		—			60,000
Proceeds from / (repayment of) long term debts		(13,682	)		(905	)
Net cash provided by (used in) financing activities		3,464			40,163
Effect of exchange rate changes on cash		4,959			2,423
Net increase in cash and cash equivalents		8,646			(13,922	)
Cash and cash equivalents, beginning of period		97,960			88,616
Cash and cash equivalents, end of period		106,606			74,694
Supplementary disclosures of cash flow information
Cash paid during the year for:
Interest paid		40,882			31,656
Income taxes paid		1,814			2,602
Non-cash items:
Allotment of common stock		—			67,500
The accompanying notes are an integral part to these interim condensed financial statements.

KM Wedding Events Management, Inc

Notes to Interim Condensed Consolidated financial statements

(in US Dollars $ unless otherwise stated)

1. General

KM Wedding Events Management, Inc ('the Company') was incorporated on October 24, 2012 in the state of Delaware, United States of America.

Company is a service provider in the matrimonial industry through mass media through its subsidiary KM Wedding Events Management Private Limited (formerly known as "KM Matrimony Private Limited", India) in Tamil Nadu, India. As of ~~September~~December 3031, 2015, the Company maintains a 58.33% ownership interest in KM Wedding Events Management Private Limited, India.

2. Significant Accounting Policies

a. Basis of Consolidation

The company has invested $ 569,000 to acquire 2,841,398 nonumber of Equity shares of KM Wedding Events Management ~~Private~~ Private Limited, India. Subsequent to this investment, KM Wedding Events Management Private Limited, India has become subsidiary of this company. The agreement for such acquisition was entered in the month of February 2013 and executed in the month of April 2013.

b. Form and Content of the Financial Statements

The Company maintains its books and records in accordance with generally accepted accounting policies in USA (“US GAAP”). The accompanying financial statements were derived from the Company’s statutory books and records. The financial statements are presented in US Dollars ($), the national currency of USA.

Revenue and related expenses generated from our international subsidiary is generally denominated in the currency of Indian Rupee (Rs.). The statements of income of our international subsidiary is translated into U.S. dollars at exchange rates indicative of market rates during each applicable period.

The interim condensed financial statements included herein are unaudited and have been prepared in accordance with US GAAP for interim financial reporting (primarily with topic 270, Interim Reporting, of Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC")), and do not include all disclosures required by US GAAP. The company has omitted disclosures which would substantially duplicate the information contained in its 2015 audited financial statements, such as accounting policies. Additionally, the company has provided disclosures where significant events have occurred subsequent to the issuance of its 2015 audited financial statements. Management believes that the disclosures are adequate to make the information presented not misleading if these interim condensed financial statements are read in conjunction with the company’s 2015 audited financial statements and the notes related thereto. In the opinion of management, the financial statements reflect all adjustments of a normal and recurring nature necessary to present fairly, the company’s financial position, results of operations and cash flows for the interim reporting periods.

The results of operations for ~~six~~nine months ended ~~September~~December 3031, 2015 may not be indicative of the results of operations for the ~~full~~ full year ending March 31, 2016. Subsequent events have been evaluated through ~~November~~February 2111, ~~2015~~2016, the date these financial ~~statements~~ statements were issued.

The closing exchange rate as of ~~September~~December 3031, 2015 and March 31, 2015 was 6566.50326 and 62.31591 Indian Rupees to one US dollar, respectively. The average exchange ~~rates~~rate for the ~~six~~Nine months ended ~~September~~December 3031, 2015 was 64.~~1518~~458 Indian Rupees.

c. Management Estimates

The preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the amounts of revenues and expenses recognized during the period. Management believes it has a reasonable and appropriate basis for its judgment pertaining to its estimates and assumptions. However, actual results could differ from those estimates.

d. Comprehensive Loss

The company's other comprehensive loss consists of unrealized gains(losses) on foreign currency translation adjustments.

3. Cash and cash equivalents

Cash and cash equivalents as at December 31, 2015 comprises the following:

Particulars	As at December 31, 2015 (Unaudited)		As at March 31, 2015
(a) Cash on hand		97,072		89,219
(b) Balance with banks on current accounts		6,709		8,741
Total		103,781		97,960

4. Accounts receivable

Accounts receivable as at December 31, 2015 comprises the following:

Particulars	As at December 31, 2015 (Unaudited)		As at March 31, 2015
(a) Customers (trade)		496,549		551,575
Total		496,549		551,575

5. Other current assets

Other current assets as at December 31, 2015 comprises the following:

Particulars	As at December 31, 2015 (unaudited)		As at March 31, 2015
(a) Event advances		203,214		216,312
(b) Staff advances		34,956		39,802
(c) Loans and advances		279,255		333,562
(d) Prepaid Expenses		400		13,638
(e) Income tax (net of advance tax)		8,999		–
Total		526,824		603,314

3.	Cash and cash equivalents
	Cash and cash equivalents as at September 30, 2015 comprises the following:
	Particulars				as at		as at
					30 September, 2015 (Unaudited)		31 March , 2015
	(a)		Cash on hand		85,664		89,219
	(b)		Balance with banks on current accounts		20,942		8,741
	Total				106,606		97,960
4.	Accounts receivable
	Accounts receivable as at September 30, 2015 comprises the following:
	Particulars			as at		as at
				30 September, 2015 (Unaudited)		31 March , 2015
	(a)	Customers (trade)		527,317		551,575
	Total			527,317		551,575

6. Property, plant and equipment, net

5.	Other current assets
	Other current assets as at September 30, 2015 comprises the following:
	Particulars		as at	as at
			30 September, 2015 (Unaudited)	31 March , 2015
	(a)	Event advances	205,777	216,312
	(b)	Staff advances	37,991	39,802
	(c)	Advance tax (net of provision for income tax)	8,522	-
	(d)	Loans and advances	286,503	333,562
	(e)	Prepaid expenses	712	13,638
	Total		539,505	603,314

Property, plant and equipment as at December 31, 2015 comprises the following:

Particulars	Gross carrying value				Accumulated depreciation				Net carrying value
	Dec 31, 2015 (Unaudited)		Mar 31, 2015		Dec 31, 2015 (Unaudited)		Mar 31, 2015		Dec 31, 2015 (Unaudited)		Mar 31, 2015
(a) Vehicles		39,568		42,118		8,818		6,502		30,750		35,616
(b) Computers & Peripherals		69,333		73,802		65,253		68,367		4,080		5,435
(c) Furniture & Fixtures		13,373		14,234		7,050		6,432		6,323		7,802
(d) Office Equipment		62,845		61,173		35,397		32,533		27,448		28,640
(e) Leashold improvements		75,735		80,616		45,401		42,254		30,334		38,362
(f) Plant & Machinery		10,490		9,295		2,533		1,077		7,957		8,218
Total		271,344		281,238		164,452		157,165		106,892		124,073

Operating leases

The total amount of operating lease expenses is as follows:

Particulars		For the Nine Months Ended December 31, 2015 (unaudited)				For the Nine Months ended December 31, 2014 (unaudited)
Lease Expenses			17,722				28,157

7. Intangible assets, net

Intangible assets as at December 31, 2015 comprise the following:

Particulars	Gross carrying value				Accumulated depreciation				Net carrying value
	Dec 31, 2015 (Unaudited)		Mar 31, 2015		Dec 31, 2015 (Unaudited)		Mar 31, 2015		Dec 31, 2015 (Unaudited)		Mar 31, 2015
(a) Software		50,409		53,658		35,758		31,193		14,651		22,465
Total		50,409		53,658		35,758		31,193		14,651		22,465

6.	Property, plant and equipment, net
	Property, plant and equipment as at September 30, 2015 comprises the following:
	Particulars		Gross carrying value		Accumulated depreciation		Net carrying value
			30 Sep, 2015 (Unaudited)	31-Mar-15	30 Sep, 2015 (Unaudited)	31-Mar-15	30 Sep, 2015 (Unaudited)	31-Mar-15
	(a)	Vehicles	40,067	42,118	8,011	6,502	32,056	35,616
	(b)	Computers & Peripherals	70,207	73,802	65,729	68,367	4,478	5,435
	(c)	Furniture & Fixtures	13,541	14,234	6,797	6,432	6,744	7,802
	(d)	Office Equipments	63,592	61,173	34,112	32,533	29,480	28,640
	(e)	Leasehold improvements	76,690	80,616	44,041	42,254	32,649	38,362
	(f)	Plant & Machinery	10,622	9,295	2,030	1,077	8,592	8,218
	Total		274,719	281,238	160,720	157,165	113,999	124,073

8. Other non-current assets

Operating leases

The total amount of operating lease expenses is as follows:

Particulars

For the Six Months ended

30 September, 2015 (unaudited)

30 September, 2014 (Unaudited)

Lease Expenses

34,200

18,103

Other non-current assets as at December 31, 2015 comprises the following:

7.	Intangible assets, net
Particulars		As at December 31, 2015 (unaudited)				As at March 31, 2015
	Intangible assets as at September 30, 2015 comprise the following:
(a) Rental advance			13,965				25,156
	Particulars		Gross carrying value		Accumulated amortization			Net carrying value
(b) Deposits			56,485				63,536
			30 Sep, 2015 (Unaudited)	31-Mar-15	30 Sep, 2015 (Unaudited)	31-Mar-15	30 Sep, 2015 (Unaudited)		31-Mar-15
(c) Software under application development stage			12,476				9,211
	(a)	Software	51,045	53,658	34,022	31,193	17,023		22,465
Total			82,926				97,903
	Total		51,045	53,658	34,022	31,193	17,023		22,465

9. Accounts payable and accrued liabilities

Accounts payable and accrued liabilities as at December 31,2015 comprises the following:

Particulars	As at December 31, 2015 (unaudited)		As at March 31, 2015
(a) Accounts payable		205,377		87,895
(b) Salary payable		9,753		24,094
(c) Current portion of provision for gratuity		2,130		1,701
(d) General and administrative expenses payable		69,886		76,397
Total		287,146		190,087

10. Statutory liabilities

Income tax and other statutory liabilities as at December 31,2015 comprises the following:

Particulars	As at December 31, 2015 (unaudited)		As at March 31, 2015
(a) Service tax		183,584		156,573
(b) Provident fund		17,238		25,192
(c) Employees state insurance		2,231		6,291
(d) Professional		5,402		5,554
(e) Tax Deducted at Source		61,095		31,350
(f) Income tax (Net of Advance tax)		—		22,771
Total		269,550		247,731

Other non-current assets

Other non-current assets as at September 30, 2015 comprises the following:

Particulars

as at

30 September, 2015 (Unaudited)

31 March, 2015

(a)

Rental advance

17,405

25,156

(b)

Deposits

60,632

63,536

(c)

Software under application development stage

12,172

9,211

Total

90,209

97,903

11. Short term borrowings and long term debt

9.	Accounts payable and accrued liabilities
	Accounts payable and accrued liabilities as at September 30,2015 comprises the following:
	Particulars		as at	as at
			30 September, 2015 (Unaudited)	31 March, 2015
	(a)	Accounts payable	154,668	87,895
	(b)	Salary payable	10,302	24,094
	(c)	Current portion of provision for gratuity	1,801	1,701
	(d)	General and administrative expenses payable	78,714	76,397
	Total		245,485	190,087

Short term loans and borrowings as at December 31,2015 comprises the following:

10.	Statutory liabilities
Particulars		As at December 31, 2015 (unaudited)			As at March 31, 2015
	Income tax and other statutory liabilities as at September 30,2015 comprises the following:
(a) Bank overdraft1			156,486			172,122
	Particulars		as at	as at
(b) Unsecured loan			3,001			23,469
			30 September, 2015 (Unaudited)	31 March, 2015
(c) Secured loan			—			196
	(a)	Service tax	185,029	156,573
(d) Current portion of long-term debt			24,413			22,056
	(b)	Provident fund	12,394	25,192
Total			183,900			217,843
	(c)	Employees state insurance	2,523	6,291
	(d)	Professional tax	5,489	5,554
	(e)	Withholding tax	54,082	31,350
	(f)	Income tax	–	22,771
	Total		259,517	247,731

11.	Short term borrowings and long term debt
	Short term loans and borrowings as at September 30,2015 comprises the following:
	Particulars		as at	as at
			30 September, 2015 (Unaudited)	31 March, 2015
	(a)	Bank overdraft1	153,937	172,122
	(b)	Unsecured loan	2,000	23,469
	(c)	Secured loan	-	196
	(d)	Current portion of long-term debt	23,951	22,056
	Total		179,888	217,843

¹The bank overdraft facility is secured by way of hypothecation of trade receivables, current assets and fixed assets of the company except vehicles financed by other banks / financial institutions

12.	Long Term Debt
	Long term debt comprise the following:
		Particulars		as at	as at
				30 September, 2015 (Unaudited)	31 March, 2015
		(a)	Secured loans1	257,892	279,161
		(c)	Vehicle loans2	18,968	22,838
				276,860	301,999
		(d)	Current portion of long-term debt	(23,951)	(22,056)
			Total	252,909	279,943

12. Long Term Debt

1Long ~~During the quarter ended March 31, 2015, the company, its directors and relatives of directors have availed a~~ term loan on a joint and several liability basis from ICICI Bank for an amount of $ 694,656. The company’s liability has been initially recognized in the financial statements at $ 267,941 under secured loans. The personal properties of the directors has been provided as security for availing the said loan. The loan is repayable in 120 equated monthly instalments and carries interest at the base rate plus a margin of 1.75%. The loan arrangement has been approved by the Board of Directors in the Board Meeting held on January 12, 2015 and a Memorandum of Understanding has been entered into between the company and its co-obligors. The total outstanding amount as at September 30, 2015 and March 31, 2015 towards this debt ~~arrangement~~comprise ~~is $ 668,604 and $ 723,745 respectively. The carrying amount of~~ the ~~company’s liability as at September 30, 2015 and March 31, 2015 is $ 257,892 and $ 279,161 respectively.~~following:

2 The interest rates of these Vehicle loans range from 11 % to 16 %. These loans are repayable in monthly instalments ranging from 36 months to 60 months. These loans are secured against the respective assets.

Particulars	As at December 31, 2015 (unaudited)			As at March 31, 2015
(a) Secured loan¹		251,989			279,161
(b) Vehicle loans²		17,296			22,838
		269,285			301,999
(d) Current portion of long-term debt		(24,413	)		(22,056	)
Total		244,872			279,943

1 During the quarter ended March 31, 2015, the company, its directors and relatives of directors have availed a term loan on a joint and several liability basis from ICICI Bank for an amount of $ 715,521. The company’s liability has been initially ~~scheduled~~recognized ~~aggregate~~in ~~maturity~~the financial statements at $ 275,989 under secured loans. The personal properties of ~~long~~the directors has been provided as security for availing the said loan. The loan is repayable in 120 equated monthly instalments and carries interest at the base rate plus a margin of 1.75%. The loan arrangement has been approved by the Board of Directors in the Board Meeting held on January 12, 2015 and a Memorandum of Understanding has been entered into between the company and its co-~~term~~obligors. ~~debt~~The total outstanding amount as at ~~September~~December 3031, 2015 and March 31, 2015 towards this debt arrangement is $ 653,300 and $ 723,745 respectively. The carrying amount of the company’s liability as ~~follows:~~at December 31, 2015 and March 31, 2015 is $ 251,989 and $ 279,161 respectively.

Particulars	As at September 30, 2015 (Unaudited)
2016	11,597
2017	25,453
2018	26,371
2019	27,920
2020	26,390
Thereafter		159,129
Total long term debt	276,860

²The interest rates of these Vehicle loans range from 11 % to 16 %. These loans are repayable in monthly installments ranging from 36 months to 60 months. These loans are secured against the respective assets.

The scheduled aggregate maturity of long-term debt outstanding as at December 31, 2015 is as follows:

Particulars	As at December 31, 2015 (Unaudited)
2016	7,272
2017	25,130
2018	26,035
2019	27,565
2020	26,052
Thereafter		157,231
Total long term debt	269,285

13. Other current liabilities

Other current liabilities as at December 31, 2015 comprises the following:

Particulars	As at December 31, 2015 (unaudited)		As at March 31, 2015
(a) Unearned revenue (i.e. billings in excess of revenue)		67,551		95,538
(b) Advances received		137,834		45,258
Total		205,385		140,796

14. Other non-current liabilities

Other non-current liabilities as at December 31, 2015 comprises the following:

Particulars	As at December 31, 2015 (unaudited)		As at March 31, 2015
(a) Trade Deposits		5,351		5,856
(b) Provision for gratuity		15,863		14,556
Total		21,214		20,412

15. Common Stock

The company has only one class of equity shares having par value of $ 0.001 per share. Each holder of equity shares is entitled to one vote per share. The authorized equity share capital (number of shares) of the company is 300,000,000 shares as at December 31, 2015 and March 31, 2015. The issued, subscribed and paid-up equity share capital (number of shares) of the company is 42,096,160 shares as at December 31, 2015 and as at March 31, 2015.

(i) 4,596,160 number of shares are issued at a price of $ 0.05 per share

(ii) 4,050,000 number of shares are issued at a price of $ 0.20 per share

(iii) 33,000,000 number of shares at par value of $ 0.001 per share are issued for consideration other than cash.

(iv) 200,000 number of shares are issued at a price of $ 0.30 per share

(v) 250,000 number of shares are issued for consideration other than cash at a price of $ 0.30 per share

The shares are issued at a price mutually agreed by the shareholders pursuant to an agreement entered with them.

Preferred Stock

The authorized preferred share capital (number of shares) of the company is 10,000,000 shares having a par value of $ 0.001 per share as at December 31, 2015. The issued, subscribed and paid-up Preference share capital is Nil as at December 31, 2015.

The Shareholders who have subscribed 4,050,000 number of shares at the rate of $0.20 per share have an option to purchase a warrant for every two shares held which entitles the holder to purchase an additional share at the rate of $0.40 per share for the period of two years from the date of issuance.

13.	Other current liabilities
	Other current liabilities as at September 30, 2015 comprises the following:
	Particulars		as at	as at
			30 September, 2015 (Unaudited)	31 March, 2015
	(a)	Unearned revenues (i.e. billings in excess of revenue)	119,801	95,538
	(b)	Advances received	148,885	45,258
	Total		268,686	140,796

16. Matrimonial service income

14.	Other non-current liabilities
Particulars		For the three months ended						For the nine months ended
	Other non-current liabilities as at September 30, 2015 comprises the following:
		Dec 31, 2015			Dec 31, 2014			Dec 31, 2015		Dec 31, 2014
	Particulars		as at	as at
(a) Profile Registration and Event Incomes			134,260			148,343			373,090		536,251
			30 September, 2015 (Unaudited)	31 March, 2015
(b) Sponsorship Income and Advertisement Income			1,443			85,525			10,720		161,695
	(a)	Trade Deposits	5,418	5,856
(c) Sale of space or time slot - Television series/ Television Rights			19,547			127,068			69,078		263,781
	(b)	Provision for gratuity	15,211	14,556
(d) Sale of products (magazines)			—			(7	)		—		2,092
	Total		20,629	20,412
(e) Franchisee License			—			90,000			—		90,000
Total			155,251			450,929			452,888		1,053,819

15.	Common Stock
	The company has only one class of equity shares having par value of $ 0.001 per share. Each holder of equity shares is entitled to one vote per share. The authorized Equity share capital (number of shares) of the company is 300,000,000 shares as at September 30, 2015 and March 31, 2015. The issued, subscribed and paid-up equity share capital (number of shares) of the company is 42,096,160 shares as at September 30, 2015 and 42,096,160 shares as at March 31, 2015.
		(i) 4,596,160 number of shares are issued at a price of $ 0.05 per share
		(ii) 4,050,000 number of shares are issued at a price of $ 0.20 per share
		(iii) 33,000,000 number of shares at par value of $ 0.001 per share are issued for consideration other than cash.
		(iv) 200,000 number of shares are issued at a price of $ 0.30 per share
		(v) 250,000 number of shares are issued for consideration other than cash at a price of $ 0.30 per share
	The shares are issued at a price mutually agreed by the shareholders pursuant to an agreement entered with them.
	Preferred Stock
	The authorized Preference share capital (number of shares) of the company is 10,000,000 shares having a par value of $ 0.001 per share as at September 30, 2015. The issued, subscribed and paid-up Preference share capital is Nil as at September 30, 2015.
	The Shareholders who have subscribed 4,050,000 number of shares at the rate of $0.20 per share have an option to purchase a warrant for every two shares held which entitles the holder to purchase an additional share at the rate of $0.40 per share for the period of two years from the date of issuance.

17. Matrimonial service expenses

Particulars	For the three months ended				For the nine months ended
	Dec 31, 2015		Dec 31, 2014		Dec 31, 2015		Dec 31, 2014
(a) Event expenses		7,500		43,191		60,384		114,352
(b) Production and telecast expenses - television series		21,549		25,392		80,003		80,689
(c) Publication expenses		4,949		16,149		19,760		44,848
(d) Subcontracting charges		21,562		—		31,793		—
(e) ARC commission		—		5,091		6,082		14,551
(f) Amortization of film costs		8,919		19,673		27,658		37,222
Total		64,479		109,496		225,680		291,662

18. General and administrative expenses

Particulars	For the three months ended					For the nine months ended
	Dec 31, 2015		Dec 31, 2014			Dec 31, 2015		Dec 31, 2014
(a) Lease expenses		15,355		9,460			49,690		28,157
(b) Repaid & Maintenance		5,299		8,856			12,578		23,363
(c) Insurance		218		(7	)		768		721
(d) Electricity charges		2,291		2,357			8,011		8,141
(e) Audit fees		2,133		2,221			6,399		6,789
(f) Filing charges		—		3,978			3,500		27,806
(g) Bank charges		1,306		1,064			6,056		6,905
(h) Bad debts		29,175		26,544			36,915		47,432
(i) Travelling and conveyance		1,151		12,524			3,203		31,039
(j) Professional charges		15,190		21,302			77,703		47,240
(k) Printing & Stationary		713		1,136			2,870		3,467
(l) Telephone, Courier & Postage		3,355		7,289			12,095		19,886
(m) Security charges		1,024		1,067			3,060		3,259
(n) Business promotion expenses		31,534		70,450			116,465		144,200
(o) Rates and taxes		—		1,812			—		1,812
(p) Others		4,027		2,900			9,755		10,499
Total		112,770		172,953			349,068		410,716

19. Earnings / (loss) per share (EPS)

Particulars	For the three months ended					For the nine months ended
	Dec 31, 2015			Dec 31, 2014		Dec 31, 2015			Dec 31, 2014
(a) Net income / (loss)		(88,177	)		50,281		(268,238	)		24,449
(b) Weighted average number of equity shares outstanding		42,096,160			41,721,845		42,096,160			41,721,845
Earnings / (loss) per share - basic and diluted		(0.0021	)		0.0012		(0.0064	)		0.0006

16.	Matrimonial service income
	Particulars		For the three months ended		For the Six months ended
			30/Sep/15	30/Sep/14	30/Sep/15	30/Sep/14
	(a)	Profile Registration and Event Incomes	112,022	170,862	239,923	387,908
	(b)	Sponsorship Income and advertisement Income	4,193	46,341	9,322	76,170
	(c)	Sale of products(magazines)/Television series/television rights	14,332	113,883	49,767	138,812
		Total	130,547	331,086	299,012	602,890
17.	Matrimonial service expenses
	Particulars		For the three months ended		For the Six months ended
			30/Sep/15	30/Sep/14	30/Sep/15	30/Sep/14
	(a)	Event expenses	11,611	42,929	53,136	71,161
	(b)	Production and telecast expenses - television series	37,584	27,588	58,635	55,297
	(c)	Publication expenses	4,973	9,036	14,882	28,699
	(d)	Sub-contracting charges	10,280	-	10,280	-
	(e)	ARC commission	2,075	4,608	6,111	9,460
	(f)	Amortization of film cost	9,509	9,042	18,829	17,549
		Total	76,032	93,203	161,873	182,166
18.	General and administrative expenses
	Particulars		For the three months ended		For the Six months ended
			30/Sep/15	30/Sep/14	30/Sep/15	30/Sep/14
	(a)	Lease expenses	16,577	9,645	34,596	18,697
	(b)	Repairs & Maintenance	3,415	7,893	7,314	14,507
	(c)	Insurance	374	205	553	728
	(d)	Electricity charges	2,550	2,725	5,748	5,784
	(e)	Audit fees	2,117	2,269	4,287	4,568
	(f)	Filing Charges	3,700	14,500	4,000	23,828
	(g)	Bank charges	1,617	3,135	4,773	5,841
	(h)	Bad debts	4,924	13,659	7,777	20,888
	(i)	Travelling and conveyance	1,356	8,963	2,062	18,515
	(j)	Professional charges	45,208	15,944	62,708	25,938
	(k)	Printing & Stationery	1,026	944	2,167	2,331
	(l)	Telephone, Courier & Postage	4,315	5,981	8,783	12,597
	(m)	Security charges	1,016	1,088	2,046	2,192
	(n)	Business promotion expenses	46,172	58,611	85,000	73,750
	(o)	Others	874	6,417	3,536	7,599
		Total	135,241	151,979	235,350	237,763
19.	Earnings / (loss) per share (EPS)
	Particulars		For the three months ended		For the Six months ended
			30/Sep/15	30/Sep/14	30/Sep/15	30/Sep/14
	(a)	Net income / (loss)	(66,355)	(30,955)	(163,571)	(25,832)
	(b)	Weighted average number of equity shares outstanding	42,096,160	41,646,160	42,096,160	41,721,845
	Earnings / (loss) per share - basic and diluted		(0.0016)	(0.0007)	(0.0039)	(0.0006)

20. Related party disclosures

16(a) Names of related party and relationship

20.	Related party disclosures
(a)	Names of related party and relationship
	(i) Key Management Personnel ('KMP')
		(a) Mr. T V Mohan- Chairman and Director
		(b) Ms. Meera Nagarajan - President, CEO and Managing Director
		(c) Mr. Vijaya Bhaskar Venkatesan- CFO, Director, Treasurer and Director of technologies
	(ii) Relatives of KMP
		(a) Mr. Sridhar Kalyanasundaram

(i) Key Management Personnel ('KMP')

Particulars	KMP and Relative of KMP
	2015 (unaudited)	2014 (unaudited)
Transactions
Advances given for business purposes	51,918	198,555
Settlement of advances given for business purposes /advance received form the director	235,775	60,040
Repayment of unsecured loans	137,721	2,794
Closing balances
Advances received from Directors (credit bal.)	29,409	-
Advances given for business purposes (debit bal.)	-	207,238
Unsecured loans received (credit bal.) (Refer note below)	97,525	280,114

(a) Mr. T V Mohan- Chairman and Director

21.	Goodwill
	Particulars
	Goodwill1	679,948
	Add: Cumulative Translation adjustment	12,902
	Balance as at September 30, 2015	692,850

(b) Ms. Meera Nagarajan - President, CEO and Managing Director

~~1Goodwill arises in the process of acquiring KM Wedding Events Management Private Limited, India~~ (~~formerly known as "KM Matrimony Private Limited", India~~c)~~. In April 2013, the Company acquired 55.32% interest of KM Wedding Events Management Private Limited,~~ ~~India (formerly known as "KM Matrimony Private Limited", India)~~Mr. AsVijaya ofBhaskar ~~September~~Venkatesan- 30CFO, ~~2015~~Director, ~~58.33%~~Treasurer ofand ~~the~~Director ~~shares~~ of KM ~~Wedding Events Management Private Limited are being held by the Company. This acquisition has been accounted as a business combination.~~technologies

~~Goodwill~~(ii) Relatives ~~represents the excess~~ of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. It is assigned to reporting units as of the acquisition date. As per ASC 805-20-55-6, the value of an acquired intangible asset which are not identifiable as of the acquisition date is subsumed into Goodwill. The assets and liabilities are acquired at book value as there is no significant deviation from fair value. There are no related contingent consideration arised.KMP

(a) Mr. Sridhar Kalyanasundaram

Particulars	KMP and Relative of KMP
	2015 (unaudited)		2014 (unaudited)
Transactions
Advances given for business purposes		77,922		205,289
Settlement of advances given for business purposes /advance received form the director		348,545		67,193
Repayment of unsecured loans		133,207		6,758
Closing balances
Advances received from Directors (credit bal.)		121,833		–
Advances given for business purposes (debit bal.)		–		205,597
Unsecured loans received (credit bal.) (Refer note below)		96,311		271,124

21. Goodwill

Particulars

Goodwill¹			679,948
Add: Cumulative Translation adjustment			14,908
Balance as at December 31, 2015			694,856

¹Goodwill arises in the process of acquiring KM Wedding Events Management Private Limited, India (formerly known as "KM Matrimony Private Limited", India). In April 2013, the Company acquired 55.32% interest of KM Wedding Events Management Private Limited, India (formerly known as "KM Matrimony Private Limited", India). As of December 31, 2015, 58.33% of the shares of KM Wedding Events Management Private Limited are being held by the Company. This acquisition has been accounted as a business combination.

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. It is assigned to reporting units as of the acquisition date. As per ASC 805-20-55-6, the value of an acquired intangible asset which are not identifiable as of the acquisition date is subsumed into Goodwill. The assets and liabilities are acquired at book value as there is no significant deviation from fair value. There are no related contingent consideration that has arisen.

Impairment of Goodwill will be tested on annual basis at the end of the year.

1716

22.	Employee Benefits
		Defined Benefit Plan
		The liability recognized in the balance sheets as at September 30, 2015 is as follows. The obligations are unfunded as on the dates of balance sheets.
		Particulars			As at September 30
					2015 (Unaudited)		2014 (Unaudited)
		(a)		Gratuity liability recognized in the balance sheet	17,012		7,257
Weighted average assumptions used to determine net gratuity cost and benefit obligations:
						For the Six months ended September 30,
Particulars						2015 (Unaudited)		2014 (Unaudited)
(a)			Discount rate			7.80% p.a.		8.50% p.a.
(b)			Long-term rate of compensation increase			7.50% p.a.		10.00% p.a.
(c)			Rate of return on plan assets			N.A.		N.A.

22. Employee Benefits

Defined Benefit Plan

The liability recognized in the balance sheets as at December 31, 2015 is as follows. The obligations are unfunded as on the dates of balance sheets.

Particulars	As at December 31,
	2015 (unaudited)		2014 (unaudited)
(a) Gratuity liability recognized in the balance sheet		17,993		16,257

Weighted average assumptions used to determine net gratuity cost and benefit obligations:

Particulars	For the Nine months ended December 31,
	2015 (unaudited)			2014 (unaudited)
(a) Discount rate		7.80%	p.a.		8.50%	p.a.
(b) Long-term rate of compensation increase		7.50%	p.a.		10.00%	p.a.
(c) Rate of return on plan assets		N.A.			N.A.

23. Going Concern

The financial statements have been prepared on the basis that the company is a going concern & thereby no adjustments are required to be made to the carrying amount of assets and liabilities.

24. Film Costs

The amount of unamortized film costs disclosed in the balance sheet pertains to completed and not released films with respect to the television series. The entire amount of unamortized film costs is expected to be amortized during the next one year.

25. Commitments and Contingencies

Statutory Dues

Penalties, if any, on account of delay in payment of service tax and other statutory dues are unascertainable.

26. Previous Period Figures

Figures of previous period have been regrouped / rearranged, wherever required to confirm to the current period presentation.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

THE FOLLOWING DISCUSSION AND ANALYSIS SHOULD BE READ TOGETHER WITH THE CONSOLIDATED FINANCIAL STATEMENTS OF KM WEDDING EVENTS MANAGEMENT, INC. AND THE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Overview of Our Business

We have been involved in the wedding services industry in South India since 2004. “KM” is our brand, which is a short form for ‘KalyanaMalai’ meaning ‘Wedding Garland’ in South Indian language. Our services comprise of Matrimonial (Matchmaking) Services (“Matrimonial Services”) and Wedding Services (until June 30, 2015).Considering various business related aspects (including socio-economic aspects), the Company has decided to have a dedicated focus on Matrimonial Services business commencing July 1, 2015.

Matrimonial Services include matchmaking and partner identification, through multiple delivery channels via print and visual media, website, physical centers and events. In order to increase traction in the Matrimonial services business, we started leasing wedding halls (physical infrastructures where a wedding is conducted, similar to banquet halls of hotels). The first wedding hall has already commenced operations.

In India, we currently focus on the geographic locations of Tamil Nadu and Andhra Pradesh (two of the Southern States in India). We believe that we are well positioned to utilize the potential of the Matrimonial Services market because of our early presence in this market since 2004. We have conducted promotional events across the U.S.to capture the market potential. We are continuing our efforts to expand our presence in the US. Our target customers include the Indian high-income group, higher middle-income group, and other affluent individuals both in the U.S. and India. This segment, being upwardly mobile and comfort and service focused, is the right target group for our business strategy.

We, through our subsidiary KM India, have been servicing the Indian Diaspora in the U.S. through our website since 2004 which was followed up by Community Meets (events focused on bringing together individuals who are seeking a life partner and who share similar backgrounds (e.g., profession, socio-economic background, religion, etc.) conducted during the fiscal year 2011 in 5 cities (New York City, South Windsor (Connecticut), Boston, Houston and San Antonio) which was attended by approximately 1,200 prospective matrimonial customers. In October 2013, we also filmed for SUN TV across 6 different US cities (New York, South Windsor Connecticut), New Brunswick, San Jose, Dallas and Houston), which was attended by over 5,400 South Indian community members.

Based on the experience gained from the above activities, we believe that there is a demand and need in the Indian Diaspora in the U.S. for our Matrimonial Services. We believe a customized and focused approach is required to market to this segment. The current plan for exploring this business opportunity includes setting up offices in the U.S. (fiscal 2015), growing Matrimonial Services for weddings to be fixed in India by Indians in the U.S. launching a customized website for Matrimonial Services in the U.S. market (fiscal 2016-17).

Comparison of Three Months Ended ~~September~~December 3031, 2015 and Three Months Ended ~~September~~December 3031, 2014

Results of Operations

Our financial performance for the three months ended ~~September~~December 3031, 2015 compared to the three months ended ~~September~~December 3031, 2014 are ~~discussed~~ discussed and analyzed below. For the purpose of comparison, conversion of Indian Rupees to USD is done based on the average exchange ~~rate~~ rate for the period for Income and Expenditure items and at the closing exchange rate for Balance Sheet items. The financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

1918

For the three months ended ~~September~~December 3031, 2015, the Company generated revenue of $~~133~~161,~~462~~661 compared to $~~418~~628,~~818~~015 for the corresponding period in the previous year.

In terms of revenue mix 9896% of the revenues were generated from Matrimonial Services (7972% for the corresponding three month period in the previous year); Nil from the Wedding Services (2128% for the corresponding three month period in the previous year) and 24% of the revenues were generated from wedding infrastructure leasing services (Nil for the corresponding three month period in the previous year).

During the three month period ended ~~September~~December 3031, 2015, the Company incurred $~~287~~280,~~317~~678 of operating expenses compared to $~~409~~533,~~868~~687 for ~~the~~ the corresponding three month period in the previous year, which included:

• Matrimonial Service expenses of $7664,~~032~~479 compared to $93109,~~203~~496 for the corresponding three month period in the previous year, which represents 5842% of matrimonial revenues. • General and Administrative expense of $~~135~~112,~~241~~770 ($~~151~~172,~~979~~953 for the corresponding three month period in the previous year) which represents ~~101~~70% of revenues compared to 3628% for the corresponding three month period in the previous year. • Personnel expenses of $6692,~~777~~153 ($8298,~~860~~974 for the corresponding three month period in the previous year) representing 5057% of revenues compared to 2016% of revenues in the corresponding three month period in the previous year; and • Depreciation and Amortization expenses of $8,~~093~~122 ($78,~~193~~654 for the corresponding three month period in the previous year).

For the three months ended ~~September~~December 3031, 2015, the Company had operating loss of $~~153~~119,~~855~~017 compared to income of $894,~~950~~328 for the corresponding period in the previous year. In addition, for the three month ended ~~September~~December 3031, 2015, the Company had a net loss of $77151,~~801~~169 compared to income of $672,~~720~~937for ~~for~~ the corresponding three month period in the previous year).

Comparison of ~~Six~~Nine Months Ended ~~September~~December 3031, 2015 and ~~Six~~Nine Months Ended ~~September~~December 3031, 2014

Results of Operations

Our financial performance for the ~~six~~nine months ended ~~September~~December 3031, 2015 compared to the ~~six~~nine months ended ~~September~~December 3031, 2014 are discussed and analyzed below. For the purpose of comparison, conversion of Indian Rupees to USD is done based on the average exchange rate for the period for Income and Expenditure items and at the closing exchange rate for Balance Sheet items. The financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

20For the nine months ended December 31, 2015, the Company generated revenue of $ 508,585 compared to $1,443,183 for the corresponding period in the previous year.

~~For~~In terms of revenue mix 89% of the ~~six~~revenues ~~months~~were ~~ended~~generated ~~September~~from ~~30,~~Matrimonial ~~2015,~~Services (73% for the ~~Company~~corresponding ~~generated~~nine ~~revenue~~month ofperiod in ~~$349,017~~the ~~compared~~previous toyear); ~~$815,168~~8% from the Wedding Services (27% for the corresponding nine month period in the previous year) and 3% of the revenues were generated from wedding infrastructure leasing services (Nil for the corresponding nine month period in the previous year).

InDuring ~~terms of revenue mix 86% of~~ the ~~revenues~~nine ~~were generated from Matrimonial Services (74% for the corresponding six~~ month period in ~~the~~ended ~~previous~~December ~~year);~~31, ~~11%~~2015, ~~from~~ the ~~Wedding~~Company ~~Services~~incurred ~~(26%~~$8,90,670 ~~for the corresponding six month period in the previous year) and 3%~~ of ~~the~~operating ~~revenues~~expenses ~~were~~compared ~~generated~~to ~~from~~$13,04,610 ~~wedding infrastructure leasing services (Nil~~ for the corresponding ~~six~~nine month period in the previous year)., which included:

~~During~~ • Matrimonial Service expenses of $225,680 compared to $291,662 for the ~~six~~corresponding nine month period ~~ended~~in ~~September~~the 30previous year, ~~2015~~which represents 50% of matrimonial revenues. • Wedding Service expense of $28,866 ($315,763 for the ~~Company~~corresponding ~~incurred~~nine month period in the previous year) which represents 74% of wedding services revenues compared to 81 % for the corresponding nine month period in the previous year. • General and Administrative expense of $~~612~~349,~~896~~068 of($410716 ~~operating~~for ~~expenses~~the corresponding nine month period in the previous year) which represents 69% of revenues compared to 28% for the corresponding nine month period in the previous year. • Personnel expenses of $~~770~~255,~~923~~694 ($264,188 for the corresponding ~~six~~nine month period in the previous year) representing 50% of revenues compared to 18% of revenues in the corresponding nine month period in the previous year; and. • Depreciation and Amortization expenses of $23,932 ~~which~~($22,281 ~~included:~~ for the corresponding nine month period in the previous year).

• Matrimonial Service expenses of $161,873 compared to $182,166 for the corresponding six month period in the previous year, which represents 54% of matrimonial revenues. • Wedding Service expense of $31,170 ($172,153 for the corresponding six month period in the previous year) which represents 79% of wedding services revenues compared to 81 % for the corresponding six month period in the previous year. • General and Administrative expense of $235,350 ($237,763 for the corresponding six month period in the previous year) which represents 67% of revenues compared to 29% for the corresponding six month period in the previous year. • Personnel expenses of $164,323 ($165,214 for the corresponding six month period in the previous year) representing 47% of revenues compared to 20% of revenues in the corresponding six month period in the previous year; and. • Depreciation and Amortization expenses of $15,885 ($13,627 for the corresponding six month period in the previous year).19

For the ~~six~~nine months ended ~~September~~December 3031, 2015, the Company had operating loss of $~~263~~382,~~879~~085 compared to income of $44138,~~245~~573 for the corresponding period in the previous year. In addition, for the ~~six~~nine month ended ~~September~~December 3031, 2015, the Company had a net loss of $~~202~~353,~~706~~076 compared to income of $27100,~~065~~002 for the corresponding ~~six~~nine month period in the previous year).

Liquidity and Capital Resources

Overview

At ~~September~~December 3031, 2015, the Company had cash equivalents of $~~106~~103,~~606~~781 and accumulated deficit of $~~391~~493,~~242~~875. At ~~September~~December 3031, 2015, the Company had a ~~positive~~negative working capital (including current portion of long-term debt) of $9236,~~918~~971compared ~~compared~~ to positive working capital of $370,459 at March 31, 2015, resulting from:

• Accounts Receivable of $~~527~~496,~~317~~549 at ~~September~~December 3031, 2015 compared to $551,575 at March 31, 2015, which represents a 410% decrease; • Account Payable and accrued liabilities relating to accrued interest expense, unpaid professional fees, and unpaid general expenditures of $~~245~~287,~~485~~146 at ~~September~~December 3031, 2015 compared to $190,087 at March 31, 2015, representing 2951% increase; • Statutory liabilities of $~~259~~269,~~517~~550 at ~~September~~December 3031, 2015 compared to $247,731 at March 31, 2015, representing 59% increase; • Personnel expenses of $164,323 ($165,214 for the corresponding six month period in the previous year) representing 47% of revenues compared to 20% of revenues in the corresponding six month period in the previous year; and. • Short-term loans and current portion in long-term debt of $~~179~~183,~~888~~900 at ~~September~~December 3031, 2015 compared to $217,843 at March 31, 2015, representing a decrease of 1716%;

21• Unsecured loans of $218,144 at December 31, 2015 compared to $85,933 at March 31, 2015, representing a 158% increase; • Other current liabilities of $205,385 at December 31, 2015 compared to $140,796 at March 31, 2015, representing a 46% increase; and • Non-current liabilities of $266,086 at December 31, 2015 compared to $300,355 at March 31, 2015, representing a reduction of 11%

• Unsecured loans of $126,934 at September 30, 2015 compared to $85,933 at March 31, 2015, representing a 48% increase; • Other current liabilities of $268,686 at September 30, 2015 compared to $140,796 at March 31, 2015, representing a 91% increase; and • Non-current liabilities of $273,538 at September 30, 2015 compared to $300,355 at March 31, 2015, representing a reduction of 9%.

Cash flows from Operating Activities

During the ~~six~~nine month period ended ~~September~~December 3031, 2015, net cash ~~provided~~used byin operating activities was $1792,~~470~~088 compared to net cash ~~provided by~~used by operations $79,~~010~~628 during the corresponding period in the previous year.

Cash flows from Investing Activities

During the ~~six~~nine month period ended ~~September~~December 3031, 2015, net cash used in investing activities was $7,~~329~~341 compared to $6365,~~518~~311 cash ~~used~~provided for the corresponding period in the previous year.

Cash flows from Financing Activities

During the ~~six~~nine month period ended ~~September~~December 3031, 2015, net cash provided by financing activities was $3111,~~464~~276 compared to $4032,~~163~~090 ~~provided~~used by financing activities for the corresponding period in the previous year.

Future Capital Needs

At ~~September~~December 3031, 2015, our working capital ~~surplus~~deficit was $9236,~~918~~971. We had $~~106~~103,~~606~~781 in cash and cash equivalents. We have evaluated our expected cash requirements over the next twelve months, and have determined that our existing cash resources are not sufficient to meet our anticipated needs during the next twelve months, and that additional financing is required to support current operations. In addition, we anticipate that further additional financing may be required to fund our business plan subsequent to that date, until such time as revenues and related cash flows become sufficient to support our operating costs.

The successful implementation of our business plan is dependent upon us receiving sufficient funds from the sale of securities and/or additional funding from management, the issuance of equity or debt, or through obtaining a credit facility. In additional, substantial expenditures will be required to enable us to expand and scale up our operations and quality of services. We will require additional financing from issuance of equity or debt, or through obtaining a credit facility, to execute our plan of operations. Our established bank-financing arrangements will not be adequate. Although management believes that the additional required funding will be obtained through the sale of securities, there is no guarantee we will be able to obtain the additional required funds in the future or that funds will be available on terms acceptable to us, if at all. If such funds are not available, management will be required to curtail its investments in additional sales and marketing and product development resources, and capital expenditures, which may have a material adverse effect on our future cash flows and results of operations, and its ability to continue operating as a going concern.

Brief Disclosure of Long Term Contractual Obligations

As at ~~September~~December 3031, 2015, the Company has long term debts in the form of secured loans amounting to $~~276~~269,~~860~~285 and repayable as under:

Less Than One Year	~~$11,597~~	$	7,272
One to Three Years	~~$79,744~~	$	78,730
More than Three Years	~~$185,519~~	$	183,283

Recent Accounting Pronouncements

As of ~~September~~December 3031, 2015, there are no other recently issued accounting standards not yet adopted that would have a material effect on the Company’s consolidated financial statements.

Off-Balance Sheet Arrangements

We do not have any off-balance arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The SEC defines the term “disclosure controls and procedures” to mean a company’s controls and other procedures that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms. “Disclosure controls and procedures” include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our disclosure controls and procedures are designed to provide reasonable assurance that such information is accumulated and communicated to our management. Our management (with the participation of our Chief Executive Officer and Chief Financial Officer) has conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act). Based on such evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report.

Changes in Internal Controls over Financial Reporting

During the quarter ended ~~September~~December 3031, 2015, there were no material changes in our internal control over financial reporting identified in connection with the evaluation performed during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we have disputes that arise in the ordinary course of business. Currently, there are no material legal proceedings to which we are a party, or to which any of our property is subject.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~Nil~~None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

The following exhibits are filed as part of this Report

Exhibit No.		Description
10.1		Termination Agreement.*
31.1		Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2		Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
32.2		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS		XBRL Instance Document*
101.SCH		XBRL Taxonomy Extension Schema*
101.CAL		XBRL Taxonomy Extension Calculation Linkbase*
101.DEF		XBRL Taxonomy Extension Definition Linkbase*
101.LAB		XBRL Taxonomy Extension Label Linkbase*
101.PRE		XBRL Taxonomy Extension Presentation Linkbase*
* Filed herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	KM WEDDING EVENTS MANAGEMENT, INC.
Date: November 23, 2015	By:/s/ Meera Nagarajan
Date: February 16, 2016
By:	/s/ Meera Nagarajan
	Meera Nagarajan, Chief Executive Officer

2524

Filing Compare · KM WEDDING EVENTS MANAGEMENT, INC.