Notes to Accounts of Navcom Industries Ltd.

Mar 31, 2015

1. Contingent Liabilities NIL NIL

2. Necessary provisions for revenue and expenses have been made in the the basis of the available record and estimate of the management

2. The Company has become a 'sick Industrial company' within the meaning of provisions of Section 3 (1) (o) of Sick Industrial Companies (Special Provisions) Act, 1985.

3. Certain old outstanding balances are written of during the year, as the same is confirmed by the board of directors time to time. The same are not disclosed as per AS 5 Net Profit or Loss for the period, prior period Items & changes In Accounting Policies, as the same balances crystallised during the year as per Management. Please refer the para 4 of 'Auditors' Responsibility' In Independent Auditor's Report.

4. Confirmation of certain balances of Bank Accounts and Parties Included in Current Assests ,Loans and Advances and Current Liabilities have not been obtained, net balances of sister concern are grouped under the current assets.

5. Finance Charges include hire charges on vehicle loan, Bank charges, Interest, Commission, trade deposits etc.

6. Amount paid and/or provided to the auditors excluding service tax

Audit fees 5,000 5,000

7. As the Company do not have any information as to which of its creditors is registered under The Micro, Small and Medium enterprises Development Act 2006. no disclosure as required by the said Act is given.

8. Related Party Disclosures as required under Accounting Standard on "Related Party Disclosures' Issued by the Institute of Chartered Accountants of India are given below:

a Description of Relationship

Key Management Personnel

b No transactions were carried out with Related parties in the ordinary course of business.

9. we have Standard - 22 Initial Engagement Opening Balances] issued by the Institute of Chartered Accountants of India, in respect of verification of opening balances as stated In the previous years audited balance sheet. Figures for previous year have been regrouped and rearranged wherever considered necessary and practicable to the extent data is readily available.

10. Figures for previous year have been regrouped wherever considered necessary and practicable.

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Mar 31, 2013

Mercentile system of accounting and recognises income & expenditure on accrual basis , net dut.es are recordede in the books statements a, based on historical cost . These cost a, not adjusted to reflect the impact of chang.ng value ,„ the purchasing power of money. U2 IZT^ZIZ™ on shipment or dispatch to customer, saie of goods on Consignment basis is recogn.zed on saie of the relative goods by consignee. 13 SSS^bSSS^ employees are provided for by payments to provident fund and by payment of gratuity on ret.rement of employees after puttina in aualifvina vears of service. 1A which are expected to benefit for some years in future are charged considering relative benefit of the expenditure. less depreciation. Cost comprises of direct cost of acguisition or construction and other attributable cost. „, Depreciation is provided on Straight Line Method at the rates and ,„ the manner laid down in Scheduie XW to the Compan.es Act, is calculated on pro-rata basis from the -e. additions except in the case of Assets costing upto R..5000 each, where each such assest is fully depreciated the year of purchase. iv) Cost of Leasehold land is amortised over the lease period. v) On assets sold.discarded.etc. depreciation is provided uoto the date of sale/discard.

1.1 Investments

Investments are stated at cost.

Contingent Liabilities NIL NIL

2 Necessary provisions for revenue and expenses have been made in the accounts on the basis of the available record and pqHmatP cf thp mananpmpnh

3 The Company has become a ''sick industrial company'' within the meaning of provisions of Section 3 (1) (o) of Sick Industrial Companies (Special Provisions) Act, 1985.

4 Confirmation of certain balances of Bank Accounts and Parties included in Current Assests .Loans and Advances and Current nnt hppn nhfainpd npt" hslanrpc of

5 Finance Charges include hire charges on vehicle loan, Bank charges, 6,218 Interest, Commission, trade deposits etc.

6 Amount paid and/or provided to the auditors excluding service tax Audit Fees 5,000 5,000

7 As the Company do not have any information as to which of its creditors is registered under The Micro, Small and Medium Enterprises Development Act 2006, no disclosure as reouired bv the said Act is aiven.

8 Related Party Disclosures as required under Accounting Standard on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are oiven below.

A Description of Relationship Key Management Personnel

B No transactions were carried out with Related parties in the ordinary course of business.

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Mar 31, 2009

1 Taxes on Income:

The Company provides tax liability on the basis of current tax and deferred tax. Since company has loss for the year and being a sick company and having unabsorbed depreciation and other available deductions, the Company is not liable for Income Tax as well as Tax on profit under section 115 JB of the Income Tax Act, 1961 . Therefore, no provision for current tax liability has been made. As regards deferred tax, no asset has been recognized because of uncertainty of its realization.

2 Necessary provisions for revenue and expenses have been made in the accounts on the basis of the available record and estimate of the management.

3 Sick Company :

The Company has become a 'sick industrial company' within the meaning of provisions of Section 3 (1) (o) of Sick Industrial Companies (Special Provisions) Act, 1985.

4 Figures for previous year have been regrouped wherever considered necessary and practicable.

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Mar 31, 2008

1 Taxes on Income:

The Company provides tax liability on the basis of current tax and deferred tax. Since The Company being a sick and having unabsorbed depreciation and other available deductions, the company is not liable for Income Tax as well as Tax on profit under section 115 JB of the Income Tax Act, 1961. Therefore , no provision for current tax liability has been made. As regards deferred tax, no asset has been recognized because of uncertainty of its realization.

2 Necessary provisions for revenue and expenses have been made in the accounts on the basis of the available record and estimate of the management.

3 Figures for previous year have been regrouped wherever considered necessary and practicable.

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Mar 31, 2007

1. ARCIL (Assets Reconstruction Company of India Ltd.) has disposed off the Assets of the company taken over by them for the consideration of Rs. 6.19 crores and also recovered Rs. 6.01 cores from director who provided guarantee for loans taken by the company. These proceeds have been accepted in full and final satisfaction of the outstanding loans and associated dues of the company. The entire outstanding balances of secured loans from bank and financial institution stands remitted. The necessary entries to reflect appropriate financial position following these transactions have been incorporated in the accounts'"'

2. In view of the settlement of loans and associated dues and sale of assets by ARCIL the resultant remission being on capital account amounting to Rs. 47.72 crores has been transferred to capital reserve account.

3. Taxes on Income:

From the current accounting year, the Company has decided to provide tax liability On the basis of current tax and deferred tax. Since company being a sick and having unabsorbed depreciation and other available deductions, the Company is not liable for Income Tax as well as Tax on profit under section I 15 .IB of the Income Tax Act. 1961 Therefore, no provision for current tax liability has been made. As regards deferred tax. no asset has been recognized because of uncertainly of its realization.

4. Some of the vehicles and investments are in the name of Directors.

5. Necessary provisions for revenue and expenses have been made in the accounts on the basis of the available record and estimate of the management.

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Mar 31, 2006

1. During the year possession of secured Assets of the Company at Solapur unit and during the year 2004-2005 assets at Sangli & Pune unit has been taken over by ARC1L (Assets Reconstruction Company of India Ltd.) for alleged failure to repay amount borrowed from the Industrial Development Bank of India (IDBI) as contended by ARCIL ,who has been assigned debts by IDBI & SBI. However for want of information about the sale value and others of the units by ARCIL no effect have been given in the books of accounts for sale of Assets and its effect thereof.

2. In view of the facts that litigation is pending and possession of secured assets has been taken by ARCIL at instance of borrowers and present weak financial position of the Company ,no provision for interest on secured borrowings has been made in accounts

3. Taxes on Income:

From the current accounting year, the Company has decided to provide tax liability on the basis of current tax and deferred tax. In view of unabsorbed depreciation and other available deductions, the Company is not liable for Income Tax as well as Tax on profit under section 115 JB of the Income Tax Act, 1961. Therefore, no provision for current tax liability has been made. As regards deferred tax, no asset has been recognized because of uncertainty of its realization.

4. Some of the vehicles and investments are in the name of Directors.

5. Necessary provisions for revenue and expenses have been made in the accounts on the basis of the available record and estimate of the management.

6. Sick Company :

The Company has become a 'sick industrial company' within the meaning of provisions of Section 3 (1) (o) of Sick Industrial Companies (Special Provisions) Act,J985.

7 Segment Reporting

The Company has two segments namely

i) Oil, Vanaspati and

ii) Cattle Feeds. Oil and Vanaspati segments includes refund oil, vanaspati and solvent products Information about revenues appear in Note No. 13.1