Notes to Accounts of Paras Petrofils Ltd.

Mar 31, 2014

NOTE - 1 CORPORATE INFORMATION

Paras Petrofils Ltd. is a company registered under Companies Act, 1956, listed on National Stock Exchange and Bombay Stock Exchange. Paras Petrofils Ltd. is caring on the business of manufacturing of Nylon and Polyester Yarn, Trading of Fabric and Commission Activity. During the year company have suspended its manufacturing activity due to adverse market condition and huge loss incurred during the year 2012-13 from the manufacturing activity. However the Company is carrying its other activity.

NOTE - 2

Figures of the previous year have been regrouped/ recast wherever necessary to make them comparable with the figure of the current year and are rounded off to the nearest rupees.

NOTE - 3

Balances of Sundry Debtors, Sundry Creditor and Loans and Advances are subject to confirmation and reconciliation if any.

NOTE - 4

In the opinion of Board of Directors, Current Assets, Loans & Advances are approximately of the value stated, if realised in the ordinary course of business, unless stated otherwise. Adequate provision have been made for all known liabilities except stated otherwise.

NOTE - 5

In The absence of necessary information with the Company relating to the status of the suppliers under Micro, Small and Medium Enterprises Act.2006, the Information Could not be Complied and disclosed.

NOTE - 6

During the year company have suspended its manufacturing activity due to adverse market conditions in the yarn manufacturing segment. Directors of the company are of the view to permanently discontinue its manufacturing activity, subject to approval of the share holders, and to dispose off all assets including Land, Building and Plant & Machinery related to Yarn manufacturing segment.

NOTE - 7 CONTINGENT LIABILITIES (not provided for) in respect of (Rs. in Lacs)

As on As on 31.03.2014 31.03.2013

(a) Export obligation against EPCG 413.32 413.32

(b) Sales Tax Liabilities 110.42 110.42

(c) NCCD Duty claim dispute with Excise Department 1.98 1.98

(d) Listing Fee to Regional Stock Exchange 6.53 6.53

NOTE - 8 The break up of Auditor''s remuneration is as under:- For Audit Fees (including service tax) 28090 73034 For Taxation 5618 39326 33708 112360

NOTE - 9 Related Party Disclosures

A) Key Management Personnel:

Sr. No. Name Designation

1 Shri Jivabhai Patel Chairman

2 Shri Ashok R Jain Managing Director

3 Shri Siddharth C Patel Director

4 Shri Kailashchand Jain Director

5 Shri Harshad J. Patel Director

6 Shri Anandkumar Jain Director

7 Shri Pravindrai D Jariwala Director

8 Shri Anil Bansal Director

9 Shri Murli Manohar Modani Director

10 Shri Harikishan Pinpaliya Director

11 Shri Rajendra Parakh Company Secretary

B) List of other Related Parties with whom transactions have taken place during the Year

Sr. No. Name

1 Priyanka Developers Pvt Ltd

2 Akansha Ship Breaking Pvt.Ltd.

SHAREHOLDER INSTRUCTIONS FOR E-VOTING

The instructions for shareholders voting electronically are as under:

(i) The voting period begins on 23-09-2014 and ends on 25-09-2014. During this period shareholders'' of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date (record date) of 05-09-2014, may cast their vote electronically. The e-voting module shall be disabled by CDSL for voting thereafter.

(ii) The shareholders should log on to the e-voting website www.evotingindia.com.

(iii) Click on Shareholders.

(iv) Now Enter your User ID

a. For CDSL: 16 digits beneficiary ID,

b. For NSDL: 8 Character DP IDfollowed by 8 Digits Client ID,

c. Members holding sharesin Physical Form should enter Folio Number registeredwith the Company.

(v) Next enter the Image Verification as displayed and Click on Login.

(vi) If you are holding shares in demat form and had logged on to www.evotingindia.comand voted on an earlier voting of any company, then your existing password is to be used.

(vii) If you are a first time user follow the steps given below:

For Members holding shares in Demat Form and Physical Form

PAN

Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable for both demat shareholders as well as physical shareholders)

- Members who have not updated their PAN with the Company/Depository Participant are requested to use the first two letters of their name and the 8 digits of the folio/client id number in the PAN field.

- In case the folionumber is less than 8 digits enter the applicable number of 0''s before the number after the first two characters of the name in CAPITAL letters. Eg. If your name is Ramesh Kumar with folio number 1 then enter RA00000001 in the PAN field.

DOB

Enter the Date of Birth as recorded in your demat account or in the company records for the said demat account or folio in dd/mm/yyyy format.

Dividend Bank Details

Enter the Dividend Bank Details as recorded in your demat account or in the company records for the said demat account or folio.

- Please enter the DOB or Dividend Bank Details in order to login. If the details are not recorded with the depository or company please enter the number of sharesin the Dividend Bank details field.

(viii) After entering these details appropriately, click on “SUBMIT" tab.

(ix) Members holding shares in physical form will thendirectly reach the Company selection screen. However, members holding shares in demat form will now reach ''Password Creation'' menu wherein they are required to mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.

(x) For Members holding shares in physical form, the details can be used only for e-voting on the resolutions contained in this Notice.

(xi) Click on the EVSN for the relevant PARAS PETROFILS LIMITED on which you choose to vote.

(xii) On the voting page, you will see “RESOLUTION DESCRIPTION" and against the same the option “YES/NO" for voting. Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.

(xiii) Click on the “RESOLUTIONS FILE LINK" if you wish to view the entire Resolution details.

(xiv) After selecting the resolution you have decided to vote on, click on “SUBMIT". A confirmation box will be displayed. If you wish to confirm your vote, click on “OK", else to change your vote, click on “CANCEL" and accordingly modify your vote.

(xv) Once you “CONFIRM" your vote on the resolution, you will not be allowed to modify your vote.

(xvi) You can also take out print of the voting done by you by clicking on “Click here to print" option on the Voting page.

(xvii) If Demat account holder has forgotten the same password then Enter the User ID and the image verification code and click on Forgot Password& enter the details as prompted by the system.

(xviii) Note for Non – Individual Shareholders and Custodians

- Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian are required to log on to www.evotingindia.com and register themselves as Corporates.

- A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to [email protected].

- After receiving the login details they have to create a complianceuser should be created using the admin login and password. The Compliance user would be able to link the account(s)for which they wish to vote on.

- The list of accounts should be mailed to [email protected] and on approval of the accounts they would be able to cast their vote.

- A scanned copy of the Board Resolution and Power of Attorney (POA)which they have issuedin favour of the Custodian,if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.

(xix) In case you have any queries or issues regarding e-voting, you may refer the Frequently Asked Questions ("FAQs") and e-voting manual available at www.evotingindia.comunder help section or write an email to [email protected].

---

Mar 31, 2013

NOTE - 1 CORPORATE INFORMATION

Paras Petrofils Ltd. is a company registered under Companies Act, 1956, listed on National Stock Exchange and Bombay Stock Exchange. Paras Petrofils Ltd. is a manufacturer of Nylon and Polyester Yarn.

NOTE - 2

Figures of the previous year have been regrouped/ recast wherever necessary to make them comparable with the figure of the current year and are rounded off to the nearest rupees.

NOTE - 3

Balances of Sundry Debtors, Sundry Creditor and Loans and Advances are subject to confirmation and reconciliation if any.

NOTE - 4

In the opinion of Board of Directors, Current Assets, Loans & Advances are approximately of the value stated, if realised in the ordinary course of business, unless stated otherwise. Adequate provision have been made for all known liabilities except stated otherwise

NOTE - 5

In The absence of necessary information with the Company relating to the status of the suppliers under Micro, Small and Medium Enterprises Act.2006, the Information Could not be Complied and disclosed

NOTE - 6 CONTINGENT LIABILITIES (not provided for) in respect of

(Rs. in Lacs)

As on As on

(c) Export obligation against EPCG 413.32 413.32

(d) Sales Tax Liabilities 110.42 110.42

(e) NCCD Duty claim dispute with Excise Department 1.98 1.98

(f) Listing Fee to Regional Stock Exchange 6.53 6.53

NOTE - 7 The break up of Auditor''s remuneration is as under:-

---

Mar 31, 2012

NOTE - 1 CORPORATE INFORMATION

Paras Petrofils Ltd. is a company registered under Companies Act, 1956, listed on National Stock Exchange and Bombay Stock Exchange. Paras Petrofils Ltd. is a leading manufacturer of Nylon and Polyester Yarn.

NOTE - 2

Figures of the previous year have been regrouped/ recast wherever necessary to make them comparable with the figure of the current year and are rounded off to the nearest rupees.

NOTE - 3

Balances of Sundry Debtors, Sundry Creditor and Loans and Advances are subject to confirmation and reconciliation if any.

NOTE - 4

In the opinion of Board of Directors, Current Assets, Loans & Advances are approximately of the value stated, if realised in the ordinary course of business, unless stated otherwise. Adequate provision have been made for all known liabilities except stated otherwise

NOTE - 5

In The absence of necessary information with the Company relating to the status of the suppliers under Micro, Small and Medium Enterprises Act.2006, the Information Could not be Complied and disclosed

NOTE - 6 CONTINGENT LIABILITIES (not provided for) in respect of

(Rs.in Lacs)

As on As on

31.03.2012 31.03.2011

(a) Export obligation against Advance License - 66.78

(b) Export obligation against EPCG 413.32 413.32

(c) Sales Tax Liabilities 110.42 104.69

(d) NCCD Duty claim dispute with Excise Department 1.98 1.98

(e) Listing Fee to Regional Stock Exchange 6.53 6.53 NOTE - 32 The break up of Auditor's remuneration is as under:-

For Audit Fees (including service tax) 73034 71695

For Taxation 39326 38605

112360 110300

NOTE - 7 SEGMENT REPORTING Business Segment

The company has Three business segment viz Polyester/Nylon filament yarn, Fabric and Commission Activity. Performance of Business segment is as follows

---

Mar 31, 2010

1 Figures of the previous year have been regrouped/ recast wherever necessary to make them comparable with the figure of the current year and are rounded off to the nearest rupees.

2 Balances of Sundry Debtors, Sundry Creditor and Loans and Advances are subject to confirmation and reconciliation if any.

3 The amount of loans and advances includes Rs. NIL (Previous Year NIL) due from firm/company/individual in which directors of the company are partner/director/relative. However the maximum amount outstanding during the year at any time is Rs. NIL (Previous Year 0.65 crores).

4 The amount of Sundry Debtors includes Rs. 2.10 crores (Previous Year - Rs. 0.35 crores) receivable from firm/ company/individual in which directors of the company are partner/director/relative. However the maximum amount outstanding during the year at any time is Rs. 3.30 Crores (Previous Year - Rs. 4.61 Crores)

5 In the opinion of Board of Directors, Current Assets, Loans & Advances are approximately of the value stated, if realised in the ordinary course of business, unless stated otherwise. Adequate provision have been made for all known liabilities except stated otherwise

6 In The absence of necessary information with the Company relating to the status of the suppliers under Micro, Small and Medium Enterprises Act.2006,the Information Could not be Complied with the disclosed

7 CONTINGENT LIABILITIES (not provided for) in respect of

(Rs. in Lacs)

As on As on

31.03.2010 31.03.2009

(a) Corporate Guarantee 525.00 525.00

(b) Export obligation against Advance License 66.78 66.78

(c) Export obligation against EPCG 413.32 413.32

(d) Sales Tax Liabilities 104.69 104.69

(e) NCCD Duty claim dispute with Excise Department 1.98 1.98

(f) Listing Fee to Regional Stock Exchange 6.53 5.65

9 Related Party Disclosures

A) Key Management Personnel:

Sr. No. Name Designation

1 Shri Jivabhai Patel Chairman

2 Shri Ashok R Jain Managing Director

3 Shri Siddharth C Patel Director

4 Shri Kailashchand Jain Director

5 Shri Harshad J. Patel Director

6 Shri Anandkumar Jain Director

7 Shri Pravindrai D Jariwala Director

8 Shri Anil Bansal Director

9 Shri Murli Manohar Modani Director

10 Shri Harikishan Pinpaliya Director

11 Shri Rajendra Parakh Company Secretary



B) List of other Related Parties with whom transactions have taken place during the Year

Sr. No. Name

1 Akhil Ship Breakers Pvt Ltd

2 Construction India Pvt Ltd

3 Khazana Overseas

4 M.M.Modani & Co.

5 Sanidhy Security Pvt Ltd

6 Shree Finlease Ltd



C) Relatives of key management personnel with whom transactions have taken place during the year:

Sr. No. Name Sr. No. Name

1 Amit Kumar D. Jain 9 Preeti S. Patel

2 Anish D. Jain 10 Ritesh Jivabhai Patel

3 Champaben J. Patel 11 Santosh K. Jain

4 Dhaybhai A. Patel 12 Siddharth C. Patel HUF

5 Manish M. Jain 13 Suhrud C. Patel

6 Nikul J. Patel 14 Viraj S. Patel

7 Nilesh D. Patel 15 Vishwesh S. Patel

8 Pranjal S. Patel