Notes to Accounts of Superior Industrial Enterprises Ltd.

Mar 31, 2015

1. Confirmations in support of outstanding expenses payable amount due to suppliers are being obtained at the instance of auditors.

2. Power & Fuel cost is inclusive of cost of L.P.G, Diesel & Electricity.

3. Sundry Debtors Written off represent quality rebate given in yester years supplies on final settlement of accounts.

4. Share issue expense of yester years have been amortized as per provision of section 35D of Income Tax Act, 1961.

5. Wherever expenses/payment was not supported by bill/receipts, auditors have relied upon satisfaction of expenses/payment.

6. Sales Tax Arrears for Assessment Year 2006-2007 have been recorded in books of accounts.

7. Contingent Liabilities exist in respect of:

(a) Any demands that may be raised suppliers of machinery/ Raw Material & other suppliers on reconciliation of accounts.

(b) Any demands that may be raised E.S.I. & P.F. authorities on delay deposit of E.S.I /P.F. contribution.

(c) Any demand that may be raised by Excise, Income Tax & sales Tax authorities on completion of pending assessment. Sales Tax Assessment are pending from 2012-2013.

8 .Accounting Policies

a) Cost of Inventory of Raw Material, stores, Chemicals & packing Material is inclusive of Purchase Price & Net of Excise Duty.

b) Sales are net of Excise Duty.

c) Stock of Raw Material & Packing Material are valued at cost price. Purchase Cost is inclusive of cost of Raw Material, Insurance, and Entry Tax with cess. Finished Goods Stock has been valued at selling rate subject to adjustment of excise duty.

d) As per the practice of the company the liability on account of Gratuity and Leaves Encashment would be on the payment basis. However the company is proposing to take up effective steps for insurance cover.

e) Fixed assets are stated at cost. All cost relating to acquisition and installation of Fixed Assets are capitalized.

f) During the year Company has charged depreciation on Fixed Assets on SLM Method as per Schedule II of Companies Act, 2013. In yester Years Company charged depreciation on Fixed Assets as per rate mentioned in Income T ax Act, 1961.

g) P.F. /E.S.I charges are inclusive of administrative charges.

h) Raw Material consumption for the year is inclusive of Raw Material Stores consumed during the year.

i) Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and Provision for all known liabilities have been made.

j) Advances recoverable in cash or kind include advances made to Machinery suppliers which would be, adjusted on rendition of the accounts receipts of the material/ render of services.

k) No Provision made for deferred tax liability and steps are yet to be taken for creation of deferred tax assets as on 31.03.2015.

l) Previous year figures have been rearranged/ regrouped to make them comparable.

m) Foreign Currency Transaction is accounted for at the exchange rates from prevailing on the date of transaction. All foreign currency liabilities at the year are accounted for at FEDAI exchange rates prevailing on the date any resulting foreign exchange gain or losses are recognized as period cost.

n) During the year company has imported Car-Bentley from London for Rs.3, 07, 70,887/- and same has been sold to Group Company -HAL Offshore Ltd. during the year at purchase cost.

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Mar 31, 2014

NOTE NO. 1 - Share Capital

Details of Shares held by each shareholder holding more than 5% shares

NOTE NO. 2 -

I. Confirmations in support of outstanding expenses payable amount due to suppliers are being obtained at the instance of auditors.

II. Power & Fuel cost is inclusive of cost of L.P.G, Diesel & Electricity.

III. Company has made investment in shares of M/sMetbrass Plassim India Ltd. to the extent of 300000 shares of face value Rs. 10/- at premium Rs. 140/-, in shares of M/s Moon Beverages Ltd. to the extent of 316000 shares of face value Rs. 10/- at premium Rs. 365/- and in subsidiary M/s Hindustan Aqua Ltd to the extent of 3275000 shares of face value Rs. 10/- at premium Rs. 30/-.

IV. Sundry Debtors Written off represent quality rebate given on supplies at the time of final settlement of accounts.

V. Share issue expense has been amortized as per permission of section 35D of Income Tax Act, 1961.

VI. Wherever expenses/payment was not supported by bill/receipts, auditors have relied upon satisfaction of expenses/pay- ment.

VII. Finished Goods purchases and sales are inclusive of overseas transactions.

NOTE NO. 3 - Contingent Liabilities exist in respect of:

(a) Any demands that may be raised suppliers of machinery/ raw Material & other suppliers on reconciliation of accounts.

(b) Any demands that may be raised E.S.I. & P.F. authorities on delay deposit of E.S.I./P.F. contribution.

(c) Any demand that may be raised by Excise, Income Tax & sales Tax authorities on completion of pending assessment. Sales Tax Assessment are pending from 2011-2012.

(d) Appeal for Assessment Year 2002-2003 is pending before C.I.T. (Appeals). No provision made for demand of Rs. 3017132/- being disputed by the company.

(e) Sales tax appeal for Assessment Year 2006-2007 is pending for which no provision exists.

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Mar 31, 2013

I. Confirmation in support of outstanding expenses payable amount dug to suppliers are being obtained at the instance of auditors

II Power & Fuel cost is inclusive of cost of LP G, Diesel & Electricity

III. During the year company has obtained SEBI permission for preferential allotmeni Preferential allotment also made to parties listed u/s 301 of Companies Act 1S56 However terms and conditions of preferential allotment are not prejudicial (a the interest of company

IV. Company has made investment in shares of W$ Moon Beverages Lta to the extent of 316000 share of Face value Rs10/- at premium Rs 365/- and in Subsidiary M/s Hindustan Aqua Ltd to the extent of 3275000 share of face vaiue RslO/- at premium. Rs.3GA

V Company has made share purchase advance to Metbrass Piassim India

However allotment could not be done as on 31.03.2013 for want of comoletion or allotment formalities.

VI Share issue expense has been amortized as per permission of section 35D j'' Income Tax Act, 1961

VII. Company has proposed 10% dividend for the year ended 3V'' March 2012 aiong with Dividend Tax. However same was not approved by the share holders, hence withdrawn during the year

VIII Wherever expenses/payment was not supporteo by bill/receipts, auditors have relied upon satisfaction of expenses/payment

NOTE NO,2-Contincjent Liabilities exist in respect of:

(aJ Any demands that may be raised suppliers of machinery/ aw Material & orhe suppliers on reconciliation of accounts *

(b) Any demands that may be raised E.S.I. & P.P. authorities on delay deposit ur E.S.I./P.F contribution

(c) Any demand that may be raised by Excise. Income Tax & sales Tax a Lithe ties completion of pending assessment Sales Tax Assessmen; are pending hui; 20 "K 2011.

(d) Appeal for Assessment Year 2002-2003 pending beforey provision mace for demand of Rs 3017132/- under aforesaid/ y*V

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Mar 31, 2012

I. Confirmation in support of outstanding expenses payable amount due to suppliers are being obtained at the instance of auditors.

II. Power & Fuel cost is inclusive of cost of L.P.G, Diesel & Electricity.

III. Wherever expenses/payment was not supported by bill/receipts, auditors have relied upon satisfaction of expenses/payment.

NOTE NO.1-Continaent Liabilities exist in respect of:

(a) Any demands that may be raised suppliers of machinery/ aw Material & other suppliers on reconciliation of accounts.

(b) Any demands that may be raised E.S.I. & P.F. authorities on delay deposit of E.S.I. /P.F. contribution.

(c) Any demand that may be raised by Excise, Income Tax & sales Tax authorities on completion of pending assessment. Sales Tax Assessment are pending from 2009- 2010.

(d) Appeal for Assessment Year 2002-2003 pending before C.I.T. (Appeals). No provision made for demand of Rs.3017132/- under aforesaid appeal.

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Mar 31, 2011

I) In the opinion of the Board, Current Assets. Loans and Advances have a value on relation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and Provision for all known liabilities have been made

II) Advances recoverable in cash or kind include advances made to Machinery suppliers which would be. adjusted on rendition of the accounts receipts of the material/ render of services.

III) Confirmation in support of outstanding expenses payable amount due to suppliers are being obtained at the instance of auditors

IV) No Provision made for deferred tax liability and steps are yet to be taken for creation of deferred tax assets as on 31 03.5011

V) Previous year figures have been rearranged/ regrouped to make them comparable.

VI) Profit or Loss on sales of Plant & Machinery of Vanaspati &. Mi IK Unit would be accounted at the time of adjustment of Advance against sale of aforesaid Machinery.

VII) No Depreciation has been provided on Plant & Machinery and other items related to Vanaspati Division & Milk Division, as same was not put to use during the year.

VIII) Power & Fuel cost is inclusive of cost of L.P.G, Diesel & Electricity

IX) Sale Tax paid during the year represents Arrears

XI) Wherever expenses/payment was not supported by bill/receipts, auditors have relied upon satisfaction of expenses/payment

This is the Schedule of Contingent Liabilities and Notes referred to in the Balance Sheet of even date.

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Mar 31, 2010

1. CONTINGENT LIABILITY EXISTS IN RESPEST OF; -

a) Any demands that may be raised suppliers of Machinery / Raw Material & other Suppliers on reconciliation of accounts.

b) Any demands that may be raised E.S.I & P.F. authorities on delay deposit of E.S.I of P.F. contribution in yester years.

c) Any demand that may be raised by Excise, Income tax & Sales tax authorities on completion of pending proceeding /assessment. Sales Tax Assessments are pending from 2008-09 onward.

d) Appeal for Assessment year 2002-03 pending before C.I.T. (Appeals). No provision made for demand of R$.3017132/-under aforesaid appeal.

2. NOTES;

I. In the opinion of the Board, current assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet and Provision for all known liabilities have been made.

II. Advances recoverable in cash or kind include advances made to Machinery suppliers which would be, adjusted on rendition of the accounts, receipts of the materials/render of services.

III. Confirmation in support of outstanding expenses payable,Advances against Machinery Sales are being obtained at the instance of auditors.

IV. No provision made for deferred tax liability and steps are yet to be taken for creation of deferred tax assets as on 31.03.2010.

V. Previous year figures have been rearranged/ regrouped to make them comparable.

VI. Profit or Loss on Sales of Old Plant & Machinery of Vanaspati & Milk Unit would be accounted at the time of adjustment of Advance against sale of aforesaid Machinery.

VII. No depreciation has been provided on plant & machinery and other items related to Vanaspati Division & Milk Division, as same was not put to use during the year.

VIII. Raw Material Consumption for the year is inclusive of Raw Material Stores & Electricals.

IX. Sale Tax Paid during the Year represents Arrears.

XI. Wherever expenses/ payment was not supported by a bill / receipts, auditors have relief upon satisfaction of expenses / payment.

XII. Information required by Notification no CSr.695(E) dt. 10.06.1998 issued by the Govt, of India Ministry of Law Justice and Company Affairs is appended as under.

2009-2010 2008-2009

a) No of Employees getting

Rs.200000/-PM NIL NIL in the whole year

b) No of Employees getting

Rs.200000/-PM NIL NIL in part of the year

Additional information pursuant of paragraph 3&4 off part II of Schedule VI of the companies Act 1956 as certified by the management.

(A)Licensed & Installed Capacity 2009-10 2008-09

(a) Licensed Capacity (MT) N.A. N.A.

(B) Raw Material As per Schedule Attached : NIL

This is the schedule of contingent liabilities and notes

Referred to in the balance sheet of even date.