Notes to Accounts of IEL Ltd.

Mar 31, 2015

Note 1:

BACKGROUND:

Indian Extraction Limited was incorporated on sixth day of February, 1956 under the Indian Companies Act of 1956. The Company was in the business of solvent extraction for more than five decades and is now also diversified into refined edible oil manufacturing and marketing, trading in chemicals and commodities. The Company has closed all its manufacturing activities.

Note 2:

Year ended Year ended Particulars 31 March 2015 31 March 2014

Contingent liabilities

Sales Tax 3,719,760 3,591,331

Demand raised by Sales Tax authorities in the state of Gujarat for disallowance of set off taken for tax paid on purchase of raw materials and packing materials and charging of additional tax on purchase of raw materials for which matter is pending before Gujarat Sales Tax Tribunal, Ahmedabad for the financial year 1991-92 . The Company is confident that the claim will be successfully contested. The Company has deposited Rs. 285,000/- under protest with the Sales Tax Authorities against the said demand. The deposit amount is included under account head loans and advances.

Income Tax 8,357,930 8,357,930

Company has sold its part of land during the Assessment year 2012-13 for consideration of Rs. 54,375,450/- and as per computation income filed there was long term capital gain of Rs. 31,960,996/-. Revenue authority has not accepted the agreement value and taken the stamp duty value from registrar which comes to Rs. 97,942,127/-. According the assessment order the company has to pay long term capital gain on revised consideration of Rs. 5,685,933 (with out interest) and there by raised demand of Rs. 8,357,930/-. The company is in process of contending the same with revenue athorities.

12,077,690 11,949,261

Future cash outflows in respect of above matters are determinable only on receipt of judgments/decisions pending at various forums/authorities. The management does not expect these claims to succeed and accordingly, no provision for the contingent liability has been recognized in the financial statements.

Note 3:

Segment reporting

The company does not have any reportable segment since no activities carried out during the year by the company.

Name of the related party Nature of relationship

Shri S. B. Jhaveri Key Management Personnel

Shri P. S. Jhaveri

Phthalo Colours & Chemicals (I) Ltd.

Nanavati Sons Private Ltd.

Nanavati Electronics Private Ltd.

Sonera Investments Private Limited Enterprises over which

Sonega Trades & Investments Private Limited key management personnel are able to exercise Nanavati Chemex Private Limited significant influence

Medchem Technologies Private Limited

Sonera Enterprises

Phthalo Impex

Nanavati Speciality Chemicals Private Limited

Note 4:

Micro, Small and Medium Enterprises

Based on the information availiable -with the company, there are no dues outstanding in respect of Micro and Small enterprises at the Balance sheet date. Further, no interest during the year has been paid or payable in respect thereof. The above disclosure has been determined to the extent such parties have been identified on the basis of information available -with the company,

Note 5:

Considering the present financial position and the requirement of the accounting standard regarding certainty/virtual certainty, the Company has considered not to account for the net deferred tax assets as at the year-end.

Note 6:

Previous year''s figures have been regrouped whenever considered necessary to confirm with the current year presentation.

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Mar 31, 2014

1 BACKGROUND:

Indian Extractions Limited was incorporated on Sixth Day of February, 195 under the Indian Companies Act of 1956. The company was in the business of solvent extraction for more than five decades and is now also diversified into refined edible oil manufacturing and marketing, trading in chemicals and commodities.

2(a) Freehold Land, Leasehold Land, Building and Plant and Machinery at Jamnagar have been revalued on 31st March, 1993 at Net Current Replacement Cost on the basis of valuation made by external valuers resulting in a net increase ft) Freehold Land, Leasehold Land, at Jamnagar have been further revalued on 31st March, 2008 on the basis of valuation made by externa) valuer resulting in net increase of Rs.121,652,961 /- being surplus on Revaluation as on 31st March, 2008.

(c) Revalued amounts (net of accumulated depreciation) substituted for Historical Costs as on 31st March, 2008 are as under:

(i) Freehold Land Rs. 99,429,911 (Gross)

(ii) Leasehold Land Rs. 38,148,650 (Gross)

3 Depredation for the year includes depreciation provided on revalued cost of assets.

4 Details of Contingent Liabilities

For the For the Particulars year ended year ended 31 March 31 March 2014 2013 * Rs. Rs.

(i) Contingent Liabilities

(a) Claims against the company not - - acknowledged as debt

(b) Guarantees - -

(c) Other money for which the company 3,591,331 3,462,901 is contingently liable

[This represents demand raised by Sales Tax authorities in the state of Gujarat for disallowance of set off taken for tax paid on purchase of raw materials and packing materials and charging of additional tax on purchase of raw materials for which matter is pending before Gujarat Sales Tax Tribunal, Ahmedabad. The Company is confident that the claim will be successfully contested. The company has deposited Rs. 285,000/- under protest with the Sales Tax Authorities against the said demand. The deposit amount is included under account head Loans and Advances.]

3,591,331 3,462,901

(ii) Commitments

Total 3,591,331 3,462,901

5 Employee Benefits

As required by Accounting Standard-15 'Employee Benefits' the disclosures are as under :

Defined Contribution Plans

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees 'Pension Scheme (EPS) with the government, and certain state plans such as Employees' State Insurance(ESI). PF and EPS cover substantially all regular employees and the ESI covers certain workers. Contributions are made to the Government's funds. While both the employees and the Company pay predetermined contributions into the Provident Fund and the ESI Scheme, contributions into the Pension fund is made only by the Company. The contributions are normally based on a certain proportion of the employee's salary. During the year, the Company has recognised the following amounts in the Account:

Defined Benefit Plans

Gratuity: The Company makes annual contributions to Employees' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

On normal retirement / early retirement / withdrawal / resignation:

As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service.

On the death in service:

As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit: The Company provides for death benefit, a defined benefit plan (death benefit plan) to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non funded.

6 Related Party Disclosures

(a) Name of the related party Nature of relationship

Shri S. B. Jhaveri Key Management Personnel Shri P. S. Jhaveri

Phthalo Colours & Chemicals (I) Ltd.

Nanavati Sons Private Ltd.

Nanavati Electronics Private Ltd.

Sonera Investments Private Limited Enterprises over which key Sonega Trades & Investments Private management personnel are able Limited to exercise significant influence Nanavati Chemex Private Limited

Medchem Technologies Private Limited

Sonera Enterprises

Phthalo Impex

Nanavati Speciality Chemicals Private Ltd.

7 The accumulated losses of the Company have substantially eroded the net-worth of the Company as at the year-end

8 Disclosure Under Micro. Small & Medium Enterprises Development Act, 2006

The company has not received the required information from suppliers regarding their status under Micro, Small & Medium Enterprises Development Act, 2006. Hence, disclosures, if any, relating to the amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been made.

9 Other additional information pursuant to the requirements of revised schedule VI to the Companies Act, 1956 has not been furnished as there are no details to be furnished.

10 Previous Year Comparatives

Previous year's figures have been regrouped or reclassified wherever necessary to correspond with the current year's classification or disclosure.

11 Figures have been rounded off to the nearest rupee.

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Mar 31, 2013

1 BACKGROUND:

Indian Extraction Limited was incorporated on Sixth Day of February, 1956 under the Indian Companies Act of 1956 and listed on the Bombay Stock Exchange. The company was in the business of solvent extraction for more than five decades and is now also diversified into refined edible oil manufacturing and marketing, trading in chemicals and commodities

2 Employee Benefits

As required by Accounting Standard-15 ''Employee Benefits'' the disclosures are as under:

Defined Contribution Plans

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees ''Pension Scheme (EPS) with the government, and certain state plans such as Employees'' State Insurance(ESI). PF and EPS cover substantially all regular employees and the ESI covers certain workers. Contributions are made to the Government''s funds. While both the employees and the Company pay predetermined contributions into the Provident Fund and the ESI Scheme, contributions into the Pension fund is made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary. During the year, the Company has recognised the following amounts in the Account:

Defined Benefit Plans

Gratuity: The Company makes annual contributions to Employees'' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded denned benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

On normal retirement / early retirement / withdrawal / resignation:

As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service.

On the death in service:

As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit: The Company provides for death benefit, a defined benefit plan (death benefit plan) to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non funded.

The estimate of future increase in compensation levels, considered in the actuarial valuation, have been taken on Leave Encashment:

No Provision has been made in the accounts towards encashment of earned leaves not availed by the employees unto March 31,2013. Since their encashment as per the rules of the company does not fall due on the same date. The same shall be accounted for as and when paid.

3. The accumulated losses of the Company have substantially eroded the net-worth of the Company as at the year-end.

4. Figures of the Previous year have been regrouped & rearranged wherever necessary to correspond with those of the current year.

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Mar 31, 2012

1 BACKGROUND;

Indian Extractions Limited was incorporated on Sixth Day of February, 1956 under the Indian Companies Act of 1956 and listed on the Bombay Stock Exchange Limited. (BSE) The company was in the business of solvent extraction for more than five decades and is now also diversified into refined edible oil manufacturing and marketing, trading in chemicals and commodities.

The Company also has unabsorbed depreciation and carry-forward losses, which if considered above will result into a net deterred tax asset, Viewer consider; the present final position and the retirement of the accounting standard regard its certainty/virtual, the Company has considered deterred tax asset to the extent of the deterred tax liability as aforesaid hence has not accounted for the net deferred tax assets as at the year-end

Notes:

1 Gross Block is at cost or book value and includes amount added on revaluation on list March, 200H. Revalued amounts substituted for Gist of Fixed Assets and method adopted to compute revalued amounts, are as per Note 2 below :

2(a) Freehold Land, Leasehold Land, Building and Plant and Machinery at Jamnagar have been revalued on '1st March. IW3 at Net Current Replacement Cost on the basis of valuation made bv external valuers resulting in a net increase

(b) Freehold Land. Leasehold Land, at Jamnagar have been further revalued on 11 March, 2008 on the basis of valuation made by external values resulting in net increase of Rs. 121.652.%!/- being surplus on Revaluation as on 31st March, 2(XW

(c) Revalued amounts (net of accumulated depreciation) substituted for historical Costs as on 31st March, 2008 are as under

(i) Freehold Land Rs. 99.429.914 (Cross)

(ii) Leasehold Land Rs. 38,148.650 (Gross)

3 Depreciation for the year includes depreciation provided on revalued cost of assets.

4 The difference of Rs.9,85,393/- (Previous Year Rs.1,578,707/-) between depreciation provided for the year on revalued cost of assets and that calculated on original cost of assets for the year has been withdrawn from Revaluation reserve and credited to the Profit and Loss Account. Adjustment in revaluation reserve due to sale of free hold land Rs. 66,766,968 (previous year Rs. 24.472,000).

Details of contingent Liability Not Provided

As at As at Particulars 31 March 2012 31 March 2011 Rs. Rs.

(i) Contingent Liabilities

(a) Claims against the company not acknowledged as debt - -

(b) Guarantees - -

(c) Other money for which the company is contingently liable 3,334,472 3,206,043

[This represents demand raised by Sales Tax authorities in the state of Gujarat for disallowance of set off taken for tax paid on purchase of raw materials and packing materials and charging of additional tax on purchase of raw materials for which matter is pending before Gujarat Sales Tax Tribunal, Ahmedabad. The Company is confident that the claim will be successfully contested The company has deposited Rs. 285,000/- under protest with the Sales Tax Authorities against the said demand. The deposit amount is included under account head Loans and Advances.]

3,334,472 3,206,043

Total 3,334,472 3,206,043

5 Employee Benefits

As required by Accounting Slandard-15 'Employee Benefits' The disclosures are as under :

Defined Contribution Plans

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees' Pension Scheme (EPS) with the government, and certain stale plans such as Employees' Suit Insurance(ESI). PF and EPS cover substantially all regular employees and the ESI covers certain workers. Contributions are made to the Government's funds. While both the employees and the Company pay predetermined contributions into (he Provident Fund and l he ESI Scheme, contributions into the Pension fund is made only by I he Company. The contributions are normally based on a certain proportion of the employee's salary. During the year, the Company has recognised the following amounts in the Account:

Defined Benefit Plans

Gratuity: The Company makes annual contributions to Employees' Group Gratuity-eum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

On normal retirement / early retirement / withdrawal / resignation:

As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service.

On the death in service:

As per the provisions of Payment of Gratuity Act, 1972 without anv vesting period.

Death Benefit; The Company provides for death benefit, a defined benefit plan (death benefit plan) to certain categories of employee*. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non funded.

The estimate of future increase in compensation levels, considered in the actuarial valuation, have been taken on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

The above information has been certified by the actuary and relied upon by the auditors.

Leave Encashment:

No Provision has been made in the accounts towards encashment of earned leaves not availed by the employees upto March 31,2012. Since their encashment as per the rules of the company does not fall due on the same date. The same shall be accounted for as and when paid.

6 The accumulated fosses of the Company have substantially eroded the net-worth of the Company as at the year end The Company has exited from its core business of solvent extraction and refinery during the year and permanently discontinued its manufacturing operations. Also plant & machinery, land & building and trademark pertaining to core business has been sold off during the year. The management has charted out plan for diversification into new areas of activities like trading in chemicals, merchant exports, commodity trading, warehousing, trading in deoiled cakes and refined oil, logistic business etc. As a part of deversification the management has successfully entered into the business of chemicals exports and commodity trading.

7 The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosures made in the financial statements. Previous years figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2010

Rupees Previous Year Rupees

1 Estimated amount of contracts remaining to be executed

on capital account and nofprovided for -- 1,91.324 2 Contingent Liabilities in respect of.

(a) * Disputed demands of Sales Tax Authorities 30,77,614 29.49.185



this represents demand raised by Sales Tax authorities in the state of Gujarat for disallowance of set off taken for tax paid on purchase of raw materials and packing materials and charging of additional tax on purchase of raw materials for which matter is pending before Gujarat Sales Tax Tribunal. Ahmedabad The Company is confident that the claim will be successfully contested The company has deposited Rs 2,85.000/- under protest with the Sales Tax Authorities against the said demand The deposit amount is included under account head Loans and Advances in Schedule 11.

(b) Order dated 26.11.2009 received from Commissioner of Central Excise. Rajkot 2,32,21,578 in connection with demand for duty of Rs 1,16,10,789/- and penalty of Rs.1,16,10,789/- for which the Company " has already filed an appeal against the said order before the Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad and based on the opinion received, the management is of the view that the matter will be settled in favour of the company

3 (a) Depreciation is provided at the rates and in the manner specified in Schedule XIV to the Companies Act. 1956 as follows:

(i) in respect of new solvent plant and oil mill on straight line basis. " (ii) in respect of old plants, water pollution control system and other assets on written down value basis

(b) Depreciation has been provided at the rates applicable for Continuous Process Plant (i.e. 15.33% under Written Down Value Method and 5.28% under Straight Line Method) in respect of Plant and Machinery utilised for the manufacture of Decake and Solvent Extracted Oils installed at the Companys Jamnagar Unit by considering the aforp"sa"J n|an| anrj Machinery as Continuous Process Plant as defined in Schedule XIV to the Companies Act, 1956

(c) Depreciation for the year is provided on the revalued cost of Assets and is charged to the Profit and Loss Account.

(d) The difference of Rs. 16,52,255/- (Previous Year Rs. 17,43,727/-) between depreciation provided for the year on revalued cost of assets and that calculated on original cost of assets for the year has been withdrawn from Revaluation reserve and credited to the Profit and Loss Account.

4 As per Information available with the Company, none of the creditors have confirmed that they are registered under the Micro, Small and Medium enterprises Development Act, 2006. Accordingly, disclosureas required by the said Act is made on that Basis

5.The post of Company Secretary has been vacant throughout the year. The Company is in the process of recruiting a whole time Company Secretary as required by section 383A of the Companies Act, 1956 and has issued advertisements during the year at regular intervals, requesting applications thereof

6. Related Party Disclousers

(a) Name of the related party Nature of relationship

Shri S. B. Jhaveri Key management personnel Shri S. P. Jhaveri Relative of Key management personnel



Pathalo Colours & Chemicals (1) Ltd.

Nanavati Sons Private Ltd. Enterprises over which key management personnel are able to exercise significant influence Nanavati Electronics Private Ltd.

Sonera Investment Private Ltd.

Sonega Trades & Investment Private Ltd.

Nanavati Chemex Private Ltd.

Medchem Technologies Private Ltd.

Nanavati Speciality Chemicals Private Ltd



7- Segment Information :

I) Segment Information for primary reporting (by business segment)

The company has only one reportable segments per Accounting Standard 17 on segment Disclosure (i.e. Solvent Extractions and Refined Oil).

8. The accumulated losses of the Company have substantially eroded the net-worth of the Company as at the year-end

However, the Company with the new refinery in place, has successfully entered into the market with Refined Cotton Seed Qil and Refined SoystOil, besides the traditional solvent extracted groundnut oil and refined groundnut expeller oil The company is also in the process of introducing different edible oils like Soya, Rapeseed, Palm etc. in the market in stphased manner under its established brand name Diamond with a viewto broaden product mix and also for better margins. In addition, the company has also started trading activity and is exploring new possibility for trading into commodities and chemicals. The Company has activated the process of selling its vacant surplus land, the proceeds of which will be deployed to improve the liquidity position of the company for better business operations the Company has also implemented various cost cutting, control and saving measure, which will benefit the company in stlong run.

The aforesaid efforts are expected to result in increase in revenue and in-turn profitability of the Company in the coming years. Accordingly, the accounts of the Company are prepared on stgoing concern basis which is dependent upon development of and growth in business as envisaged.

9. Figures of the previous year have been regrouped wherever necessary to correspond with those of the current year