Notes to Accounts of FGP Ltd.

Mar 31, 2015

1 SHARE CAPITAL

Note-i) Disclosure pursuant to Note no. 6(A)(e) of Part I of Schedule III to the Companies Act, 2013

Relating to the rights, preference and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital, mentioning "as per Companies Act, 2013 and Companies Act, 1956 (if applicable) and as per Memorandum and Articles of Association".

Note-ii) Disclosure pursuant to Note no. 6(A)(f) of Part I of Schedule III to the Companies Act, 2013

Not Applicable as Company does not have any holding company.

2. Disclosure as required by Accounting Standard - AS 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India

The entire operations of the Company relate to only one segment viz. "Business Centre". As such, there is no separate reportable segment under Accounting Standard AS 17 on Segment Reporting.

3. Contingent liabilities not provided for in respect of :

Particulars 2014-15 2013-14 (Rs.) (Rs.)

i Claims against the Company not acknowledge as debts estimated at 16,868,000 16,868,000

ii Income - Tax matters 60,081,560 90,292,900

4. The Company has adopted revised useful life as per schedule II of the Companies Act 2013 in terms of the notification issued by Ministry of Company Affairs. In consequence depreciation and amortisation on Fixed Assets for the current year has been increased by Rs.18.98 Lacs for change in useful life in comparison to the previous year which has been debited to statement of Profit and Loss account.

5. In the opinion of the Board of Directors, all the assets other than fixed assets and non current investments have value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

6. The previous year's figures have been regrouped/ reclassified , wherever necessary to confirm to the current year presentation.

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Mar 31, 2014

1. Terms and Rights attached to Equity Shareholders:

The Company has only one class of equity shares having a face value of 10/- per share. Each holder of equity shares is entitled to one vote per equity share. In the event of winding-up, the holders of equity shares shall be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by shareholders. The shareholders have all other rights as available to equity shareholders as per the provision of the Companies Act, 1956 read together with the Memorandum of Association and Articles of Association of the Company, as applicable.

2. Disclosure as required by Accounting Standard - AS 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India.

The entire operations of the Company relate to only one segment viz. "Business Centre". As such, there is no separate reportable segment under Accounting Standard-AS 17 on Segment Reporting.

3. Contingent liabilities not provided for in respect of :

Particulars 2013-14 2012-13 (Rs.) (Rs.)

i Claims against the Company not acknowledge as debts estimated at 16,868,000 168,000

ii Income - Tax Matters 90,292,900 89,282,000

4. During the year the Company has made a provision for Bad and Doubtful Debts of Rs. 624.27 lakh pertaining to receivable from Universal Industrial Fund Limited and CFL Capital Financial Services Limited as the recovery of the same is doubtful.

5. In the opinion of the Board of Directors, all the assets other than fixed assets and non current investments have value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

6. The Balance Sheet, Statement of Profit & Loss, Cash Flow Statement, Statement of Significant Accounting Policy and other explanatory notes form an integral part of the financial statements of the Company for the year ended on 31st March, 2014.

8. The previous year''s figures have been regrouped/ reclassified, wherever necessary to confirm to the current year presentation.

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Mar 31, 2013

1. Short term employee benefts are recognised as an expense at the undiscounted amount in the statement of proft and loss of the year in which the related service is rendered.

2. Long - Term beneft

(i) Defned Contribution Plan :

a. Provident Fund :

The eligible employee of the Company is entitled to receive post employment benefts in respect of provident fund, in which both employee and the Company make monthly contribution at a specifed percentage of the employee''s eligible salary (currently 12 % of employee''s eligible salary). The contribution is made to Employees Provident Fund Organisation. Provident Fund is classifed as Defned Contribution Plan as the Company has no further obligation beyond making the contribution. The Company''s contribution to Defned Contribution Plan is charged to statement of Proft and Loss as incurred.

b. Superannuation :

The Company has made provision @ 15 % of employee''s eligible salary every year and no contribution is presently made since the employee has crossed the age of superannuation. The same will be paid to the employee on his seperation.

(ii) Defned Beneft Plan :

a. Gratuity :

The Company has an obligation towards gratuity, a defned beneft retirement plan covering eligible employee. The plan provides a lumpsum payment to vested employee at retirement/seperation, death while in employment or on termination of employment of an amount equivalanet to 15 days salary payable for each completed year of service. The Gratuity Fund benefts are administered by a trust formed for this purpose through Group Schemes of the Life Insurance Corporation of India ( LIC ). The Company has made provision on arithmetical basis considering funds lying with LIC for this purpose.

b. Compensated absences :

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employee is entitled to accumulate leave for future encashment/ availment. The liability is recognised based on the number of unutilized leave at each balance sheet date on an arithmetic basis.

l) Taxation

The Company has substantial carry forward of business losses under Income-tax Act, 1961. However , as the availability of suffcient future taxable income against which such depreciation and losses can be set-off cannot be stated to be virtually certain, the deferred tax asset has not been recognised.

3 Disclosure as required by Accounting Standard – AS 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India

The entire operations of the Company relate to only one segment viz. "Business Centre". As such, there is no separate reportable segment under Accounting Standard-AS 17 on Segment Reporting.

4 In the opinion of the Board of Directors, all the assets other than fxed assets and non current investments have value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

5 Prior period comparatives :

Previous year''s fgures have been regrouped and re-arranged wherever necessary to make them comparable

6 The Balance Sheet, Statement of Proft & Loss, Cash Flow Statement, Statement of signifcant accounting policy and other explanatory notes form an integral part of the fnancial statements of the company for the year ended on 31st March, 2013.

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Mar 31, 2012

1 Disclosure as required by Accounting Standard – AS 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India.

The entire operations of the Company relate to only one segment viz. "Business Centre". As such, there is no separate reportable segment under Accounting Standard-AS 17 on Segment Reporting.

2 Disclosure as required by Accounting Standard – AS 20 "Earning Per Share", issued by the Institute of Chartered Accountants of India.

The Company has not issued any potential diluted equity share and therefore the Basic and Diluted earning per Share will be the same. The earning per share is calculated by dividing the profit after tax by weighted average number of shares outstanding.

3 Disclosure as required by Accounting Standard - AS 18 "Related Parties", issued by the Institute of Chartered Accountants of India.

Relationships: Country

A. Key Management Personnel

Mr. Kishore Shete, Wholetime Director Indian

Transaction during the year with Mr. Kishore Shete is in the Nature of Director Remuneration paid/payable to him.

Amount Payable to him as at 31st March, 2012 is Rs. 124313/- (P. Y. 105040/- )

No amount pertaining to the party has been written off or written back during the year.

4 Contingent liabilities not provided for in respect of :

Particulars 2011-12 2010-11 (Rs) (Rs) (Rs) (Rs)

i. Claims against the Company not 168,000 3,704,000 acknowledge as debts estimated at

ii. Income - Tax Matters 87,106,780 88,061,166

iii. The Company has received various show - 358,000 cause notices and an order from Excise and Customs Authorities, which have been replied to by the Company. The contingent liability, if any, on the basis of such notices/ demands, except for those which have become time barred are estimated at

5. In the opinion of the Board of Directors, all the assets other than fixed assets and non current investments have value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

6. Prior period comparatives :

The Company has reclassified the published previous year figures to conform to the norms of the Revised Schedule VI. The adoption of the revised Schedule VI does not impact recognition and measurement principles followed for preparation of the financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of Balance Sheet.

7. The Balance Sheet, Statement of Profit & Loss, Cash Flow Statement, Statement of significant accounting policy and other explanatory notes form an integral part of the financial statements of the Company for the year ended on 31st March, 2012.

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Mar 31, 2011

1. Contingent Liabilities not provided for:

As at As at 31st March, 31st March, 2011 2010 Rs. Rs.

(a) Claims against 37,04,000 37,04,000 the Company not acknowledged as debts estimated at

(b) Income –tax matters 8,80,61,166 8,64,43,441

(c) The Company has 3,58,000 3,58,000 received various show cause notices and an order from Excise and Customs Authorities, which have been replied to by the Company. The contingent liability, if any, on the basis of such notices/ demands, except for those which have become time barred are estimated at

Note: The Company is contesting matters stated in (a), (b), and (c) above at various forums and outflow of resources, if any, will depend on outcome of these matters.

2. As the Company's activity falls within a single business and geographical segment viz. Business Centre, the disclosure requirements of Accounting Standard 17 "Segment Reporting" notified by the Companies Act, 1956 is not applicable.

3. Information relating to Related Party Transactions as per Accounting Standard 18 "Related Party Disclosures" notified by the Companies Act,1956 is given below:

a) Key Management Personnel:

Mr. Kishore Shete, Manager.

Transaction during the year with Mr.K.C. Shete, is in the nature of remuneration paid/payable to him and is disclosed in the Note 4 (a).

Amount payable to him as at 31st March, 2011 is Rs 1,05,040 (P. Y. Rs.57,398).

No amount pertaining to the party has been written off or written back during the year.

4. The Company has substantial carry forward of business losses under Income-tax Act, 1961. However, as the availability of sufficient future taxable income against which such depreciation and losses can be set-off cannot be stated to be virtually certain, the deferred tax asset has not been recognised.

5. These accounts have been prepared on a going concern basis, notwithstanding the debit balance of Rs.17,84,75,776 (P.Y. Rs.17,38,52,796) in the profit and loss account as at the year end, since the Directors are confident that the realisable value of the assets are sufficient to discharge its liabilities in the ordinary course of business.

6. Based on information available with the Company, there are no amounts due to the suppliers under the Micro, Small and Medium Enterprises Development Act, 2006. This has been relied upon by the auditors.

7. Employee benefIts:

Effective April 1, 2007 the Company has adopted revised Accounting Standard 15 (AS-15) ‘Employee BenefIts'. Pursuant to the adoption, no adjustment was requested to be made to general reserve as there is no impact of revised AS-15.

8. Previous year's figures have been regrouped where necessary.

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Mar 31, 2010

1. Contingent Liabilities not provided for:

As at As at 31st 31st March, March, 2010 2009 Rs.000 Rs.000

(a) Claims against the Company not ackno wledged as debts estimated at 3,704 7,621

(b) Income-tax matters 86,443 58,285

(c) The Company has received various show cause notices and an order from Excise and Customs Authorities, which have been replied to by the Company. The contingent liability, if any, on the basis of such notices/demands, except for those which have become time barred are estimated at 358 358



Note: The Company is contesting matters stated in (a), (b), and (c) above at various forums and outflow of resources, if any, will depend on outcome of these matters.

2. Auditors Remuneration (including service tax where applicable)

3. Managerial Remuneration

4. As the Companys activity falls within a single business and geographical segment viz. Business Centre, the disclosure requirements of Accounting Standard 17 "Segment Reporting" notified by the Companies Act, 1956 is not applicable.

5. Information relating to Related Party Transactions as per Accounting Standard 18 "Related Party Disclosures" notified by the Companies Act, 1956 is given below.

(a) Related party relationship where control exists:

(b) Key Management Personnel:

Mr. K.C. Shete, Manager.

Transaction during the year with Mr. K.C. Shete, is in the nature of remuneration paid/payable to him and is disclosed in the Note 4 (a).

Amount payable to him as at 31st March, 2010 is Rs. 57 thousand (2008.09: Rs. 76 thousand).

No amount pertaining to these parties have been written off or written back during the year.

6. The Company has substantial carry forward of business losses under Income-tax Act, 1961. However, as the availability of sufficient future taxable income against which such depreciation and losses can be set-off cannot be stated to be virtually certain, the deferred tax asset has not been recognised.

7. These accounts have been prepared on a going concern basis, notwithstanding the debit balance of Rs. 1,73,853 thousand (2008-09: Rs. 1,69,542 thousand) in the profit and loss account as at the year end, since the Directors are confident that the realisable value of the assets are sufficient to discharge its liabilities in the ordinary course of business.

8. Based on information available with the Company, there are no amounts due to the suppliers under the Micro, Small and Medium Enterprises Development Act, 2006. This has been relied upon by the auditors.

9. Employee benefits:

Effective April 1, 2007 the Company has adopted revised Accounting Standard 15 (AS-15) Employee Benefits. Pursuant to the adoption, no adjustment was requested to be made to general reserve as there is no impact of revised AS-15.

(a) Defined Contribution Plan

Contribution to Defined Contribution Plan in the statement of profit and loss account under payments to and provisions for employee, in Schedule -7 for the year are as under:

10. Previous years figures have been re-grouped where necessary.