Notes to Accounts of J L Morison (India) Ltd.

Mar 31, 2018

NOTES OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2018

50 FIRST-TIME ADOPTION OF IND AS

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 1st April, 2017, with a transition date of 1st April, 2016. The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements for the year ended 31st March, 2018, be applied retrospectively and consistently for all financial years presented. However, in preparing these Ind AS financial statements, the Company has availed of certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity).

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Optional Exemptions

(a) Deemed Cost

Ind AS 101 permits to measure all its property, plant & equipment at their previous GAAP carrying value i.e. being deemed cost represented by Gross Block reduced by accumulated depreciation on 1st April, 2016.

(b) Designation of previously recognised financial instruments

Paragraph D19B of Ind AS 101 gives an option to an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The company has opted to apply this exemption for its investment in equity Investments.

B. Mandatory Exceptions

(a) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).

Ind AS estimates as at 1st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Group made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVTPL or FVOCI; and

- Impairment of financial assets based on expected credit loss model.

(b) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:

I. Reconciliation of Balance sheet as at 1st April, 2016 and 31st March, 2017

II. Reconciliation of Statement of total Comprehensive Income for the period ended 31st March, 2017

III. Reconciliation of Equity as at 1st April, 2016 and 31st March, 2017

IV. Impact on cash flow statement for the period ended 31st March, 2017

The presentation requirements under Previous GAAP differs from Ind AS and hence Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.

I. Reconciliation of Balance sheet as at 1st	April, 2016 and 31st March, 2017				(Rs. in lacs)
	As At 31st March, 2017			As At 1st April, 2016
	(Previous GAAP)*	Ind AS adjustments	IND AS	(Previous GAAP)*	Ind AS adjustments	IND AS
ASSETS
(1) NON- CURRENT ASSETS
(a) Property, Plant & Equipment	1,738.28	0.00	1,738.28	1,818.91	(0.02)	1,818.89
(b) Investment Property	901.83	0.00	901.83	918.68	0.01	918.69
(c) Intangible assets	83.58	0.00	83.58	110.32	0.00	110.32
(d) Financial assets
(i) Investments	2,605.57	9,957.71	12,563.28	2,345.00	4,352.04	6,697.04
(ii) Loans	11.80	-	11.80	10.85	(0.00)	10.85
(iii) Other financial assets	31.47	(0.00)	31.47	34.34	0.00	34.34
(e) Other non-current assets	98.21	0.00	98.21	24.39	0.00	24.39
TOTAL NON - CURRENT ASSETS (2) CURRENT ASSETS	5,470.73	9,957.72	15,428.45	5,262.49	4,352.02	9,614.52
(a) Inventories	1,887.52	(0.00)	1,887.52	1,672.71	(0.00)	1,672.71
(b) Financial assets
(i) Investments	171.26	0.24	171.50	1.80	0.02	1.82
(ii) Trade receivables	228.96	-	228.96	812.69	0.00	812.69
(iii) Cash & Cash equivalents	78.55	(0.01)	78.54	148.37	0.01	148.38
(iv) Bank Balances other than above	3.62	-	3.62	11.88	0.00	11.88
(v) Loans	1,355.89	-	1,355.89	1,311.00	-	1,311.00
(vi) Other financial assets	21.01	-	21.01	30.58	(0.00)	30.58
(c) Other current assets	275.18	-	275.18	347.47	(0.00)	347.47
TOTAL CURRENT ASSETS	4,021.99	0.23	4,022.22	4,336.51	0.02	4,336.53
TOTAL ASSETS	9,492.71	9,957.92	19,450.67	9,598.99	4,352.05	13,951.05
					(Rs. in lacs)
	As At 31st March, 2017			As At 1st April, 2016
	(Previous GAAP)*	Ind AS adjustments	IND AS	(Previous GAAP)*	Ind AS adjustments	IND AS
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital	136.50	-	136.50	136.50	-	136.50
Other Equity	8,203.80	9,856.91	18,060.71	8,067.41	4,229.25	12,296.66
TOTAL EQUITY	8,340.30	9,856.91	18,197.21	8,203.91	4,229.25	12,433.16
LIABILITIES
(1) NON - CURRENT LIABILITIES
(a) Financial liabilities
(i) Other financials liabilities	49.25	-	49.25	44.00	-	44.00
(b) Provisions	75.84	-	75.84	35.41	-	35.41
(c) Deferred tax liabilities (Net)	131.75	101.02	232.77	147.96	139.24	287.20
TOTAL NON - CURRENT LIABILITIES	256.84	101.02	357.86	227.37	139.24	366.61

					(Rs. in lacs)
	As At 31st March, 2017			As At 1st April, 2016
	(Previous GAAP)*	Ind AS adjustments	INDAS	(Previous GAAP)*	Ind AS adjustments	IND AS
(2) CURRENT LIABILITIES
(a) Financial liabilities
(i) Borrowings	134.29	_	134.29	191.38	_	191.38
(ii) Trade Payables	475.47	-	475.47	778.91	0.01	778.91
(iii) Other financials liabilities	7.66	0.00	7.66	21.39	-	21.39
(b) Other Current liabilities	232.36	(0.00)	232.36	104.16	(0.00)	104.15
(c) Provisions TOTAL CURRENT LIABILITIES TOTAL EQUITY AND LIABILITIES	45.82	-	45.82	71.87	(16.42)	55.45
	895.60	(0.00)	895.60	1,167.71	(16.41)	1,151.28
	9,492.71	9,957.92	19,450.67	9,598.99	4,352.05	13,951.05

* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purpose of this note.

II Reconciliation of Statement of Profit and Loss for the vear ended 31- March. 2017			(Rs. in lacs)
	Previous GAAP	Ind AS adjustments	IND AS
INCOME
Revenue from operations	7,938.00	(242.22)	7,695.78
Other income	295.57	7.07	302.64
TOTAL INCOME	8,233.57	(235.15)	7,998.42
EXPENDITURE
Cost of materials consumed	777.45	0.00	777.45
Purchases of Traded Goods	3,564.85	-	3,564.85
Changes in inventories of finished goods, work-in-	(179.84)	(0.00)	(179.84)
progress and traded goods
Excise duty paid	218.49	-	218.49
Employee benefits expenses	1,424.22	(13.39)	1,410.83
Finance costs	5.80	(0.00)	5.80
Depreciation and amortisation expense	146.74	-	146.74
Advertising and sales promotion expenses	565.57	0.00	565.57
Other expenses	1,657.74	(235.37)	1,422.37
TOTAL EXPENSES	8,181.02	(248.77)	7,932.26
PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS	52.55	13.62	66.16
Exceptional Items	-	-	-
PROFIT BEFORE TAX	52.55	13.62	66.16
TAX EXPENSES
Current tax	45.60	-	45.60
MAT credit entitlement	(35.96)	-	(35.96)
Deferred Tax charge/(credit)	(16.22)	(38.50)	(54.72)
Tax credit relating to earlier years	(77.27)	-	(77.27)
PROFIT AFTER TAX	136.40	52.11	188.51

			(Rs. in lacs)
	Previous GAAP	Ind AS adjustments	IND AS
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit or loss
a) Remeasurements of net defined benefit plans	-	(13.39)	(13.39)
b) Changes in fair value of FVOCI equity instruments	-	5,591.32	5,591.32
Tax relating to this items	-	4.14	4.14
Items that will be reclassified to profit or loss
a) Changes in fair value of FVOCI debt instruments	-	14.33	14.33
Tax relating to this items	-	(4.43)	(4.43)
OTHER COMPREHENSIVE INCOME FOR THE YEAR	.	5,591.97	5,591.97
TOTAL COMPREHENSIVE INCOME	136.40	5,644.08	5,780.48

III Reconciliation of Equity		(Rs. in lacs)
	As at 31st March, 2017	As at 1st April, 2016
Total equity under local GAAP	8,203.80	8,067.41
Adjustments impact: Gain/ (Loss)
Reversal of proposed ordinary dividends payable	-	16.43
Retained Earnings (Gain on opening Ind As Profit & Loss conversion)	9,957.94	4,352.05
Deferred Tax impact on above adjustments	(101.02)	(139.24)
Total IND AS adjustment	9,856.91	4,229.25
Total equity under Ind AS	18,060.71	12,296.66

IV Impact on cash flow statement for the period ended 31st March, 2017

No material changes in the cash flow statements disclosures. Notes to first time adoption

1) Proposed Dividend

Under the previous GAAP, dividend proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as subsequent events. Accordingly, provision for proposed dividend including dividend distribution tax was recognised as liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.

2) Remeasurement of post employment benefit obligations

Under the previous GAAP, cost relating to post employment benefit obligations including actuarial gain/losses were recognised in Profit & Loss. Under Ind AS, actuarial gain/losses on the net defined benefit liability are recognised in other comprehensive income instead of profit & loss.

3) Fair Valuation of Investments

Under previous GAAP, investment in equity instruments were classified into long term and current investments. Long term investments were carried at cost less provision other than temporary in nature. Current investments were carried at lower of cost or fair value. Under Ind AS, these investments are require to be measured at fair value either through OCI (FVTOCI) of Through Profit & loss (FVTPL). The company has opted to fair value these investments through other comprehensive income for Debt and equity Instruments. For its investments in Liquid funds, the Company has opted for fair value through P&L

4) Discounts/Incentives

Under previous GAAP, the Company accounted for revenue net of trade discounts, sales taxes and excise duties. Under Ind AS, the Company will recognise revenue at fair value of consideration received or receivable. Any sales incentive, discounts or rebates in any form including cash discounts given to customer will be considered as selling price reductions and accounted as reduction from revenue.

5) Deferred taxes

Under previous GAAP, deferred tax were recognised based on Profit & loss approach i.e. tax impact on difference between the accounting income and taxable income. Under Ind AS, deferred tax is recognised by following balance sheet approach i.e. tax impact on temporary difference between the carrying value of asset and liabilities in the books and their respective tax base.

51 The Company is yet to receive balance confirmations in respect of certain financial assets and financial liabilities. The Management does not expect any material difference affecting the current year''s financial statements due to the same.

52 The previous year''s figures have been re-grouped / re-classified wherever required to conform to current period''s classification.

53 The financial statements were approved for issue by the Board of Directors on 26th April, 2018.

54 Amount in Rs. 0.00 denotes less than Rs. 1,000/-

For and on behalf of the Board of Directors
Sanjay Kothari	Sohan Sarda
Director	Executive Director & CEO
DIN: 00258316	DIN :00129782
Sonal Naik	Ravindra Gajelli
Company Secretary & Compliance Officer	Chief Financial Officer
	Place: Mumbai
	Date: 26th April, 2018

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Mar 31, 2016

Contingent assets are neither recognized nor disclosed in financial statements

1. CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE:

As per the Section 135 of the Companies Act, 2013 every year the Company is required to spend at least 2% of its Average Net Profit made during the immediately 3 preceding financial years on the Corporate Social Responsibility (CSR) activities. Gross amount required to be spent was Rs. 1,58,572/- (P.Y.Rs. Nil) and actually spent by the Company during the year is Rs.1,50,000 (P.Y. Rs. Nil), the details of which is as given below:

2. Previous years'' figures have been regrouped/reclassified whenever necessary, to conform to current years'' classification. Signatures to Notes 1 to 41 which form an integral part of the financial statements.

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Mar 31, 2015

A) Rights of Equity Shareholders

The Company has only one class of Equity Shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2015, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 1 (31st March, 2014: Rs. 1)

In the event of liquidation of the company, the holders of equity shares will 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 the shareholders.

b) Share held by holding/ultimate holding company and / or their subsidiaries / associates

None of the equity shares are held by the holding/ ultimate holding company and/ or their subsidiaries / associates.

Payment against supply from Micro Small and Medium Enterprises and ancillary undertaking are made in accordance with the agreed credit terms and to the extent ascertained from available information, the Company does not have any MSME creditors outstanding beyond the stipulated credit period.

*Amortised over lease period * **includes cost of shares of society

Pursuant to the enactment of Companies Act 2013, the Company has charged depreciation as per useful lives of its fixed assets as specified in Part C of Schedule II. Accordingly the unamortised carrying value is being depreciated / amortised over the revised/ remaining useful lives. Due to the above, amounting to Rs. 38,80,975/- has been charged as depreciation in the statement of Profit and Loss Account.

As at As at 31s1 March,2015 31s1 March,2014 2 CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR IN RESPECT OF

A) Contingent Liabilities

Surety given on behalf of body corporate 23,00,000 23,00,000

Income tax 1,73,75,192 1,73,33,543

Sales tax matters in dispute (including interest wherever applicable) 51,75,131 56,55,891

B) Commitments

Estimated amount of contracts remaining to be executed on account of capital 15,83,697 - commitment

The Company is a defendant in various legal actions and a party to claims as above, which arose during the ordinary course of business. The Company''s management believes based on the facts presently known, that the results of these actions will not have a material impact on the Company''s financial statements. It is not practicable for the Company to estimate the timings of cash flows, if any, in respect of the above.

3. SEGMENT REPORTING

As the Company''s business activity fall within a single primary business segment viz FMCG products and its operation are within India, the disclosure requirement of Accounting Standard - 17 "Segment Reporting notified in Companies (Accounting Standards) Rules 2006 is not applicable.

4. RELATED PARTY DISCLOSURES

Related party disclosures, as required by Accounting Standard 18 - "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, are given below:

A) Names of related parties and description of relationship:

a) Enterprises where KMP/ Relatives of KMP have significant influence

Rasoi Limited

Hindustan Composites Limited Looklink Finance Limited Pallawi Resources Limited Surdas Trading & Mfg. Co. Limited Pallawi Trading & Mfg. Co. Limited Axon Trading & Mfg. Co. Limited Lotus Udyog Limited

Goodpoint Advisory Services and Investments Limited

Leaders Healthcare Limited

Rasoi Express Private Limited

Noble Trading Company Limited

Silver Trading & Services Limited

Prabhukripa Overseas Limited

Compo Advics (India) Private Limited

Manoj Mody foundation - (Mr. Raghu Nandan Mody and Mr. Varunn Mody - Trustees)

b) Key Management Personnel (KMP) and Relatives of KMP

Mr. Raghu Nandan Mody - Chairman

Mr. Varunn Mody - Director (upto 29th May, 2014)

Mrs. Sakshi Mody - Executive Director - Strategy (w.e.f. 29th May, 2014)

Mr. Bipin Vengsarkar - Executive Director (upto 24th Dec, 2014)

Mr. Sandip Das - Executive Director & CEO (w.e.f. 24th Dec, 2014)

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Mar 31, 2014

As at As at 31st March, 2014 31st March, 2013 (Rs.) (Rs.)

4 CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF Surety given on behalf of body corporate 23,00,000 23,00,000 Income tax 1,73,33,543 1,73,33,543 Sales tax matters in dispute (including interest wherever applicable) 56,55,891 10,45,206

2 RETIREMENT BENEFIT

A) Defined Benefit Plans

The following table sets out the funded status of the gratuity plan and unfunded status of Leave Encashment and the amounts recognized in the Company''s financial statements as at 31st March, 2014

3. SEGMENT REPORTING

As the Companys business activity fall within a single primary business segment viz FMCG products and its operation are within India, the ''isclosure requirement of Accounting Standard - 17 "Segment Reporting" notified in Companies (Accounting Standards) Rules 2006 is not applicable.

4. RELATED PARTY DISCLOSURES

Related party disclosures, as required by Accounting Standard 18 - "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, are given below:

A) Names of related parties and description of relationship:

a) Enterprises where KMP/ Relatives of KMP have significant influence

Rasoi Limited

Hindustan Composites Limited Looklink Finance Limited Pallawi Resources Limited Surdas Trading & Mfg. Co. Limited

Pallawi Trading & Mfg. Co. Limited

Axon Trading & Mfg. Co. Limited

Lotus Udyog Limited

Goodpoint Advisory Services and Investments Limited

Leaders Healthcare Limited

Rasoi Express Private Limited

Noble Trading Company Limited

Silver Trading & Services Limited

Manoj Mody Foundation - (Mr. Raghu Nandan Mody and Mr. Varunn Mody - Trustees)

b) Key Management Personnel (KMP) and Relatives of KMP

Mr. Raghu Nandan Mody - Chairman

Mr. Varunn Mody - Director

Mrs. Sakshi Mody - Relative of Director

Mr. Atul Tandan - Director

Mr. Shamsunder Aggarwal - Director (upto 13th February, 2014)

Mr. Sanjay Kothari - Director

Mr. Bipin Vengsarkar - Executive Director (w.e.f. 1st November, 2013)

Mr. Sohan Sarda - Manager

5 Current tax expenses include Rs.1,57,985 (P.YRs.1,40,100/-)andRs.2,17,329/-(P.Y.Rs. 57,128/-) in respect of wealth tax and Income tax of earlier years respectively.

6 In respect of properties taken/given on lease by the Company, the Lease agreements are mutually renewable/ cancellable.

7 Previous years''figures have been regrouped/reclassified whenever necessary, to conform to current years'' classification.

Signatures to Notes 1 to 37 which form an integral part of the financial statements.

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Mar 31, 2013

1 SEGMENT REPORTING

As the Company''s business activity fall within a single primary business segment viz FMCG products and its operation are within India, the disclosure requirement of Accounting Standard - 17 "Segment Reporting notified in Companies (Accounting Standards) Rules 2006 is not applicable.

2 RELATED PARTY DISCLOSURES

Related party disclosures, as required by Accounting Standard 18 - "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, are given below:

A) Names of related parties and description of relationship:

a) Enterprises where KMP/ Relatives of KMP have significant influence

Rasoi Limited

Hindustan Composites Limited

Looklink Finance Limited

Pallawi Resources Limited

Surdas Trading & Mfg. Co. Limited

Pallawi Trading & Mfg. Co. Limited

Axon Trading & Mfg. Co. Limited

Lotus Udyog Limited

Goodpoint Advisory Services and Investments Limited

Noble Trading Company Limited

Silver Trading & Services Limited

Manoj Mody Foundation - (Mr. Raghu Mody and Mr. Varunn Mody - Trustees)

JLM Employees Trust - (Mr. Raghu Mody and Mr. Varunn Mody - Trustees)

b) Key Management Personnel (KMP) and Relatives of KMP

Mr. Raghu Mody - Chairman

Mr. Varunn Mody - Director

Mrs. Sakshi Mody - Relative of Director

Lt. Gen. (Retd.) K. S. Brar - Director (upto 18th May, 2012)

Mr. Atul Tandan - Director

Mr. Shamsunder Aggarwal - Director

Mr. Sanjay Kothari - Director

Mr. Sohan Sarda - Manager

3 EARNINGS PER SHARE

Earnings Per Share, as required by Accounting Standard 20 - "Earnings Per Share" issued by the Institute of Chartered Accountants of India, is given below:

Earnings Per Share is calculated by dividing the profit attributable to the Equity shareholders by the weighted average number of equity shares outstanding during the year. The net profit considered for calculation of EPS is as follows:

4 Provision for current tax includeRs. 1,40,100 (P.Y Rs. 1,40,267) and Rs. 57,128/- (P.Y Rs.Nil) in respect of wealth tax and Income tax of earlier years respectively.

5 In respect of properties taken/given on lease by the Company, the Lease agreements are mutually renewable/ cancelable.

6 Previous years'' figures have been regrouped/reclassified whenever necessary, to conform to current years'' classification.

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Mar 31, 2012

A) Rights of Equity Shareholders

The Company has only one class of Equity Shares having a par value of Rs. 10 per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the share holders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of Equity Shares will 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 the shareholders.

b) Share held by holding/ultimate holding company and I or their subsidiaries / associates

None of the Equity Shares are held by the holding/ ultimate holding company and/ or their subsidiaries / associates.

c) Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date : Nil

d) Shares reserved for issue under options : Nil

a) Term loan from bank in respect of housing loan was taken during the financial year 2007-08 and carries interest @ 11.50% to 14.50%. The loan is repayable in 67 monthly installments (principal plus interest) of Rs. 48,640/- from date of the loan. The loan is secured by hypothecation of Residential house of the Company pertaining to business.

b) In the case of vehicle loan from bank is taken during the financial year 2009-10 and carries interest @ 10.14%. The loan is repayable in 36 monthly instalments (principal plus interest) of Rs. 23,424/- from date of the loan. The loan is secured by hypothecation of one vehicle of the Company pertaining to business.

c) In the case of vehicle loans from others are taken during the financial year 2010-11 and 2011-12 interest @ 10.37% and 8.11% which are payable in 60 and 36 monthly instalments (principal plus interest) of Rs. 40,262/- and Rs. 2,49,400/- respectively from date of the loan. The loan is secured by hypothecation of one vehicle often Company pertaining to business.

1 CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT QF

Particulars As at As at

31st March, 2012 31st March, 2011;

Guarantee given on behalf of body corporation 23,00,000 73.00.000

income tax 1,73,33,543 2,77,39,305

Sale tax matters in dispute (including interest wherever applicable1) 18,19,060 73,67,78

2 SEGMENT REPORTING

As the Company's business activity fall within a single primary business segment viz FMCG products and its operation are within India, the disclosure requirement of Accounting Standard - 17 "Segment Reporting notified in Companies (Accounting Standards) Rules 2006 are not applicable.

3 RELATED PARTY DISCLOSURES

Related party disclosures, as required by Accounting Standard 18 - "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, are given below:

A) Names of related parties and description of relationship:

a) Associates with whom transactions have been entered during the year in the ordinary course of the business

Rasoi Limited

Hindustan Composites Limited Mode Enterprises Private Limited Looklink Finance Limited Pallawi Resources Limited Surdas Trading & Mfg. Co. Limited Pallawi Trading & Mfg. Co. Limited Axon Trading & Mfg. Co Limited Lotus Udyog Limiied

Goodpoint Advisory Services and Investments Limited Noble Trading Company Limited Silver Trading & Services Limited

Notes: (i) No amount pertaining to related parties have been provided for as doubtful debts. Also, no amount has been written off / back.

(ii) The related parties are identified based on information available with the Company.

4 EARNINGS PER SHARE

Earnings Per Share, as required by Accounting Standard 20 - ''Earnings Per Share" issued by the Institute of Chartered Accountants of India, is given below:

Earnings Per Share is calculated by dividing the profit attributable to the Equity shareholders by the weighted average number of equity shares outstanding during the year. The net profit considered for calculation of EPS is as follows:

5 Provision for current tax include Rs. 1,40,267 (previous year Rs. 1,18,853) in respect of wealth tax.

6 In respect of properties taken/given on lease by the Company, the Lease agreements are mutually renewable/ cancelable.

7 As notified by Ministry of Corporate Affairs, Revised Schedule VI under the Companies Act, 1956 is applicable to the Financial Statements for the financial year commencing on or after 1s: April, 2011. Accordingly, the financial statements for the year ended 31s: March, 2012 are prepared in accordance with the Revised Schedule VI. The amounts and disclosures included in the financial statements of the previous year have been reclassified to conform to the requirements of Revised Schedule VI.

8 Previous years figures have been regrouped/reclassified whenever necessary, to conform to current year's classification. Signatures to Notes 1 to 39 which form an integral part of the financial statements.

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Mar 31, 2011

1. Contingent Liabilities

Particulars As at As at 31-Mar-2011 31-Mar-2010 (Rs.) (Rs.)

Guarantee given on behalf of Body Corporate 23,00,000 23,00,000

Income Tax 2,77,39,305 3,58,32,426

Sales Tax matters in dispute (including 73,67,782 91,63,243 interest wherever applicable)

2. There is no Micro and Small Enterprises, to whom the Company owes as at 31st March, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

3. Managerial Remuneration

Note:

Since no commission is payable to any managerial person, computation of net profit u/s 349 of the Companies Act, 1956 is not given.

4. Retirement Benefit

A) Defined Benefit Plans

The following table sets Out the funded status of the gratuity plan and unfunded status of Leave Encashment and the amounts recognized in the Company's financial statements as at 31st March, 2011

a) Gratuity Fund (Funded)

vii) Amounts forthe current and previous three years are as follows:

Note: Since Company has started providing the gratuity as per AS-15 (Revised) from 2007-08, figures are given for four years.

b) Leave encashment

Net expenses recognised during the year is Rs. 11,20,708/- (Previous Year Rs. 5,78,109/-) B) Define contribution plan

5. Borrowing costs of Rs. Nil/- (Previous Year Rs. 13,21,158/-) on loans for acquiring is added to the cost of respective fixed assets

6. Segment Reporting

Primary Segment

In accordance with Accounting Standard 17 "Segment Reporting" the Company has single business segment of marketing of FMCG products and there are no other primary reportable segments.

Secondary Segment

The Company mainly caters to the needs of the domestic market and accordingly there is only one geographical segment.

7. Related Party Disclosures

Related party disclosures, as required by Accounting Standard 18 - "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, are given below:

A) Names of related parties and description of relationship:

(a) Associates: Rasoi Limited Hindustan Composites Limited

b) Key Management Personnel (KMP) and Relatives of KMP

Mr. R. N. Mody, Chairman

Mr. Varunn Mody, Director (Executive Director upto 15th January, 2011)

Mr. Kuldip Singh Brar, Director

Mr. AtulTandan, Director

Mr. ShamsunderGopaldasAggarwal, Director

Mrs. Sumitra Devi Mody (Wife of Mr Raghu N Mody, Chairman)

Details of Loan & Advances as per clause 32 of Listing Agreement

Notes:

(i) No amount pertaining to related parties have been provided for as doubtful debts. Also, no amount has been written off/ back

(ii) The related parties are identified based on information available with the Company

8. During the year, an amount of Rs.2,26,42,498/- representing Sales tax deferment loan arising on prepayment option exercised by the company, has been written back and is reflected under head "Other Operating Income."

9. Information required as per part II of Schedule VI of the Companies Act, 1956.

(A) Own Manufacturing Goods : Not Applicable

(C) Production : NotApplicable

(D) Raw Material Consumed : Not Applicable

(E) Percentage Of Raw Materials Consumed : NotApplicable

10. Previous year's figures have been regrouped/re-arranged and reclassified wherever considered necessary.

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Mar 31, 2010

1. Contingent Liabilities

Particulars As at As at

31-Mar-2010 31-Mar-2009

(Rs) (Rs.)

Guarantee given on behalf of Body Corporate 23,00,000 23,00,000

Income Tax 3,58,32,426 80,15,505

Sales Tax matters in dispute (including interest wherever applicable) 91,63,243 52,71,743

Bank Guarantee 2,46,24,400 1,75,24,400

Letter of Credits Nil 92,34,329

2. Borrowing costs of Rs.13,21,158/-on loans for acquiring is added to the cost of respective fixed assets

3. Segment Reporting

The company has identified trading business segments as its primary segment.

Trading Business segments of the company are Personal & Healthcare and Crude Edible Oil in Bulk.

Secondary segment of the company is not applicable.

Revenue and expenses directly attributable to segments are reported under each reportable segment. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

4. Related Party Disclosures

Related party disclosures, as required by Accounting Standard 18 - "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, are given below:

A) Names of related parties and description of relationship:

(a) Enterprises where KMP have significant influence:

Rasoi Limited

Hindustan Composites Limited

Relatives of KMP

Mrs. Sumitra Devi Mody Mrs. Pallawi Podar

(b) Key management Personnel (KMP)

Mr RN Mody

Mr.VarunnMody

Mr. Kuldip Singh Brar

Mr.AtulTandon

Mr. Shamsunder Gopaldas Aggarwal

Mr. Lawson Lyon