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Notes to Accounts of Anik Industries Ltd.

Mar 31, 2023

Nature and purpose of Reserves General Reserve

The general reserve is created from time to time transfer of profits from retained eranings. General reserve is created by transfer from componant of equity to another and is not an item of other comprehnsive income, items included in general reserve will not be reclassified subsequently to statement of profit and loss.

Security Premium

Security Premium is created on receipts of premium on issue of equity shares .The reserve can be utilised in accordance with the provisions of the Companies Act,2013.

Retained Earnings

The same is created out of profit over the years and shall be utilised as per the provision of the ACT, 2013.

Nature of Security and terms of repayment for borrowings :

( A ) Loan from LIC Housing Limited of Rs. 10000 Lakhs (Rupees Ten Thousand Lakhs Only ) under Original Sanction Letter.

The Construction finance loan from LIC Housing Ltd. having outstaning Rs. NIL ( Prev. 2788.03 lakhs ) is secured by Equitable mortgage of Project land admeasuring 147.77 Katha and structur thereon in the project One Rajarhat situated at premises no. 30-1111 in street no. 1111(Erstwhile Plot No. BG-9) in Block No.-1B situated in the New Town, Police Station New Town, Dist. North 24 Parganas presently in Panchayat Area falling in Mouza Thakdari, J.L No.-19 under Mahisbathan-II G.P. Personal Guarantee of Mr. Manish Shahra .

As per Resolution Framework for COVID -19 related Stress issued by the Reserve Bank of India vide notification dated August 06, 2020 bearing reference no. Ref No. DOR.No.BP. BC/3/21.04.048/2020- 21 as amended and modified from time to time by Reserve Bank of India , the repayment schedule has been revised by LIC Housing Ltd. Original Term : Term loan repayable in 57 month (including moratorium period of 36 months from the date of first disbursement ) and Rate of Interest is 13% p.a. (Previous

Year 13% )

Revised Term : Term loan repayable in 6 monthly instalment of Rs. 400 Lakhs from July 2022 to Dec 2022 and 4 montly installment of Rs 450 lakhs from Jan 2023 to April 2023 , Last Instalment of Rs. 626 Lakhs on 1st May 2023 . However company has made prepayment of loan and balance as at the year end is NIL .

( B ) Loan from LIC Housing Limited of Rs. 1294 lakhs (Rupees Twelve Crore and Ninety Four Lakhs Only) under Emergency Credit Line Guarantee Scheme 2.0

The Emergency Credit Line Guarantee Scheme 2.0 having outstanding of Rs. 1060.59 lakhs (Prev. year 1277.82 lakhs) is secured by Second Charge of Project land and structure thereon in the project One Rajarhat situated at premises no. 30-1111 in street no. 1111(Erstwhile Plot No. BG-9) in Block No.-1B situated in the New Town, Police Station New Town, Dist. North 24 Parganas presently in Panchayat Area falling in Mouza Thakdari, J.L No.-19 under Mahisbathan-II G.P, Assignment/ Hypothecation of receivables from the project “One Rajarhat”.

Term loan repayable in fixed 5 years (First year principal moratorium and rest four year principal & interest repayment), 48 monthly instalment of Rs. 34.71 Lakhs (including interest ) and Rate of Interest is 13% p.a. (Prev. year 13%)

Working Capital Loans from Consortium Banks Rs. 1210.78 lakhs (Pre.Year Rs. 126.22 lakhs ) are secured by :

1. First charge on pari passu basis by way of hypothecation and/or pledge of the Company’s Current Assets, Consumable Stores & Spares, Bills Receivable, Book Debts and tangible movable properties related to non dairy business of Company.

2. Collateral Security by way of first charge on pari passu basis by way of Mortgage of Company’s Plots situated at Kolkata Leather Complex, Mauza-Gangapur, KITP, Dist: 24 Paraganas, (WB).

3. Collateral Security by first charge on pari passu basis by way of equitable mortgage of Residential Diverted Land of Survey No. 263/4, 264/4 & Survey No. 291 part & Survey No. 291 part in Village Nipaniya, tehsil & Dist. Indore (MP) held by Brightstar Housing Pvt. Ltd.

4. Collateral Security by first charge on pari passu basis by way of equitable mortgage of all that pieces and parcels of Land bearing Survey No. 361/5 and 361/4 and all that pieces and parcels of Land bearing Survey No. 361/2, 361/6, 361/7 & 361/8 ofVillage Khajrana, Tehsil & District, Indore (MP) held by Nischal Housing Pvt. Ltd.

5. Personal Guarantee of one directors ofthe Company.

6. Letter of credit with Punjab National Bank devolved during 16th June 2022 to 27th September 2022 amounting to Rs. 2583.29 lakhs out of that principal of Rs. 884.03 lakhs and interest Rs.181.96 lakhs outstanding as on 31st March 2023. Bank is charging interest @ 18 % P.A. on the overdue outstanding of Rs.1065.99 lakhs .

7. With effect from current financial year company has presented bill discounted with other banks under borrowing , which were included under note 18 trade payable in previous year . Accordingly pervious year figures regrouped and Rs 4542.64 lakhs present under borrowing .

Ther company has no amount payable as at the year end (prev.year Nil ) to Micro and Small Enterprises covered under MSMED Act, 2006 and no interest paid / payable , For which disclosure requirement under MS MED Act. 2006.

Note : Trade Payable Ageing schedule refer in note no. 48

NOTE-39 Pursuant to disclosure pertaining to section 186 (4) of Companies Act ,2013 the following are the details thereof :-

Investment made-

The same are classified respective heads .( Refer Note 03 )

NOTE-40 During the year under review the provision is applicable on the Company as per section 135 of the Companies Act, 2013 but the

company has incurred average net Losses calculated in pursuant to section 135 of the companies Act, 2013 read with section 198 and rules made there under and hence the requirement of compulsory CSR expenditure on CSR activities as per section 135 of the Companies Act, 2013 is not applicable.

NOTE-41 Financial risk management objectives and policies

In its ordinary operations, the companies activities expose it to the various types of risks, which are associated with the financial instruments and markets in which it operates. The company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the summary of the main risks:

a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the companies income or value of it’s holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

i) Interest rate risk

Interest rate risk is the risk the the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rate. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instrument will fluctuate because of fluctuations in the interest rates.

The Company’s exposure to the risk of changes in market interest rates relates primarily to the borrowing from banks. Currently company is not using any mitigating factor to cover the interest rate risk.

ii) Foreign currency risk

The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analyses currency risk as to which balances outstanding in currency other than the functional currency of that Company. The company enters in to derivative financial instrument such foreign currency forward contract to mitigate the risk of changes in exchange rate on foreign currency exposure.

(b) Credit risk

Credit risk is the risk that arises from the possibility that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

Financial assets that are subject to such risk, principally consist of trade receivables, Investments and loans and advances. None of the financial insturments of the company results in material concentration of credit risk.

Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to attempt to recover the receivables. Where recoveries are made, these are recognised in the Statement of Profit and Loss.

The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each balance sheet date.

Trade and other receivables

To Manage trade and other receivables, the company periodically assesses the financial reliability of customers, taking in to account the financial conditions, economic trends, analysis to historical bad debts and ageing of such receivables.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counter-parties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties apart from those already given in financials, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Cash & Cash Equivalent

The Company holds cash & cash equivalent with credit worthy banks of Rs. 200.49 lakhs as at March 31,2023 (Rs. 236.67 lakhs as at march 31,2022 ) . The credit orthiness of such banks is evaluated by the management on ongoing basis & is considered to be good.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.

The Company has obtained fund and non-fund based working capital lines from various banks. The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, process and policies related to such risk are overseen by senior management. Management moniters the company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values.

The fair values of the financial assets and financial liabilities included in the level 2 and level 3 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the Ind AS. An explanation for each level is given below.

Level 1:Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

NOTE-44

(A) Trade receivable ( Note No.8 ) includes Rs 3844.71 lakhs (Prev.Year Rs 3844.71 lakhs ) considered doubtful ofrecovery for which provision

is made to the extent of Rs. Rs 3844.71 lakhs (Prev.Year Rs 3844.71 lakhs ) ,in addition to the expected credit loss allowance made as per accounting policy . Company has also filed legal case agaist the party for recovary of claims .Company had filed 2 civil suits before the Hon''ble District court, Indore M.P.for recovary agaist M/s Clemfield Industries ltd. & M/s Middle East Industries FZE both located out of India towards non-receipt of consideration of exports made to these parties .

( B ) Further Advance to suppliers ( Note No. 12 ) includes Rs. 1525 lakhs (Prev.Year 1525 lakhs ) considered doubtful of recovery for which aggrergate provision Rs. 1525 lakhs (Prev.Year 1525 lakhs ) is made .

Note -

1. Current ratio increase during the year due to decrease in current assets and current liabilities .

2. Debt Equity ratio decreased due to Partial amount of LIC Term loans and PNB short term Loan paid during the year.

3. Return on Equity ratio decreased due turnover and profit after tax remaining decreased during the year.

4. Trade Receivable turnover ratio decreased due to decrease in Revenue from operations.

5. Trade Payable turnover ratio decreased due to decrease in adjusted expenses and trade payable.

6. Net Capital turnover ratio decreased due to decrease in Revenue from operations.

7. Inventory turnover ratio decreased due to decrease in Revenue.

NOTE-46 ADDITIONAL REGULATORY INFORMATION

I. The company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under

Companies Act, 2013,) either severally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment.

ii. The company neither have any Benami property nor any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

iii. The company is not declared wilful defaulter by any bank or financial Institution or other lender.

iv. The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

v. The company has complied with investment in subsidiary for two layers of investment prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 .

vi. (A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall.

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

(B) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vii. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

viii. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

ix. The Company has borrowings in excess of Rs. 5 crores from banks or financial institutions on the basis of security of current assets.Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.Except disclosed as under :

x. As informed and explained to us , the management has not revalued its property , plant and equipment (including right of use assets ) or intangible assets or both during the year.

xi. No charges or satisfaction are pending to be registered with ROC beyond the statutory period.

NOTE -49 -

Previous year''s figures have been regrouped or rearranged whereever considered necessary to make them comparable with current year''s figures.


Mar 31, 2018

A. General Information

Anik Industries Limited (Formerly known as Madhya Pradesh Glychem Industries Limited) was incorporated as a Limited Company on February 10% 1976 ( hereinafter referred to as the Company).

The main business activities in which Company is dealing in Wind Power Generation, Housing & Property Developments, Trading activities by Import and Export of edible oil & other commodities.

The shares of the Company are listed at the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

1.1 Rights, Preference and restrictions attached to Shares :

The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

1.2 The details of shares held by shareholders holding more than 5% shares in the Company :

1.3 For a period of five years immediately preceding the date of Balance Sheet i.e. 31st March, 2018 the company has not allotted any equity shares as fully paid up pursuant to contract (s) without payment being received in cash or any bonus shares or bought back any equity shares .

Nature and purpose of Reserves General Reserve

The general reserve is created from time to time transfer of profits from retained eranings. General reserve is created by transfer from componant of equity to another and is not an item of other comprehnsive income,items included in general reserve will not be reclassified subsequently to statement of profit and loss.

Security Premium Reserve

Security Premium Reserve is created on receipts of premium on issue of equity shares .The reserve can be utilised in accordance with the provisions of the Companies Act,2013.

Nature of Security and terms of repayment for borrowings :

(i) (a) Vehicle loan taken from HDFC bank sanctioned amount Rs. 11.00 lacs outstanding Rs 8.28 lacs (Previous Year Nil, as at 1st april 2016 Nil) repayable in 36 monthly installments of Rs 0.36 lacs(including interest )commencing from April 2017 and last instalment due in May 2020.

(b) Vehicle loan taken from HDFC bank sanctioned amount Rs 33.00 lacs outstanding Rs 28.26 lacs (Previous Year Nil, as at 1st april 2016 nil) repayable in 37 monthly installments of Rs 1.03 lacs (including interest) commencing from oct.,2017 and last instalment oct.,2020 .

(ii) The term loan from LIC Housing Ltd. outstaning Rs. 3675.85 lacs( Prev. Year Nil ,as at 1st April 2016 Nil) was secured by Equitable mortgage of Proj ect land admeasuring 147.77 Katha and structur thereon in the proj ect One Raj arhat situated at premises no. 30-1111 in street no. 1111(Erstwhile Plot No. BG-9) in Block No.-1B situated in the New Town, Police Station New Town, Dist. North 24 Parganas presently in Panchayat Area falling in Mouza Thakdari, J.L No.-19 under Mahisbathan-II G.P. Personal Guarantee of Mr. Manish Shahra and Mr. Suresh Shahra.

Term loan repayable in 57 month (including moratorium period of 36 months from the date of first disbursement ) and Rate of Interest is 13% p.a. (Previous Year Nil, as at 1st April 2016 nil )

B Unsecured

(i) The term loan from HDFC Bank outstanding Rs 1000.00 lacs ( Prev. Year Nil, as at 1st April 2016 Nil ) was secured by Collateral Security by way of Equitable Mortgage of Immovable property of Sarthak Industries Limited situated at Portion Nos. 201-A & 201B, 202-A & 202 B, 203 A, 203 B, 204 A and 204 B on Second Floor ofthe Building known as Bansi Trade Centre, Tehsil & Dist. Indore (M.P) 452001 .

Term loan repayable in bullet instalments of principal on Dec., 2018 and Rate of Interest is 8.98% p.a. (Previous Year Nil, as at 1 st April 2016 nil )

The term loan from HDFC Bank outstaning Rs 399.73 lacs( Prev. Year Rs. 799.04 lacs, as at 1st april 2016 1197.91) was secured by by exclusive charge of Milk Processing Plant at Bhopal . Since the Milk Processing Plant has been sold by the company and the balance outstanding amount of Rs 399.73 lacs (Pre. Year Rs. 799.04 lacs) has been considered by Company as unsecured .

Term loan repayable in 20 equal quarterly instalments of Rs. 100 lacs each, commenced from June, 2014 and last intsalment due on March 2019 and Rate of Interest is 11.98% p.a. (Previous Year 13 % as at 1 st april 2016 Nil)

(ii) Unsecured loan from Yes Bank outstanding NIL( Prev. Year Nil , as at 1st April 2016 Rs. 500.00 lacs) is repayable in bullet installments of principal at the end of 13 month tenor from the date of sanctioned, Rate of Interest NIL(Pre.year Nil ,as at 1st April 2016 12.30% p.a.)

Working Capital Loans from Consortium Banks Rs. Nil (Pre.Year Nil, as at 1st April 2016 Rs 11345.92 lacs) are secured by :

1. First charge on pari passu basis by way of hypothecation and/or pledge of the Company’s Current Assets, Consumable Stores & Spares, Bills Receivable, Book Debts and tangible movable properties related to non dairy business of Company.

2. Collateral Security by way of first charge on pari passu basis by way of Mortgage of Company’s Plots situated at Kolkata Leather Complex, Mauza-Gangapur, KITP, Dist: 24 Paraganas, (WB)

.3. Collateral Security by first charge on pari passu basis by way of equitable mortgage of Residential Diverted Land of Survey No. 263/4, 264/4 & Survey No. 291 part & Survey No. 291 part in Village Nipaniya, tehsil & Dist. Indore (MP) held by Brightstar Housing Pvt. Ltd.

4. Collateral Security by first charge on pari passu basis by way of equitable mortgage of all that pieces and parcels of Land bearing Survey No. 361/5 and 361/4 and all that pieces and parcels of Land bearing Survey No. 361/2, 361/6, 361/7 & 361/8 of Village Khajrana, Tehsil & District, Indore (MP) held by Nischal Housing Pvt. Ltd .5. Personal Guarantee of two directors ofthe Company.

(I) Trade Payables includes bills payable for purchases of materials Rs. 12449.28 lacs (Pre. Year Rs. 12068.46 lacs As as 1st April 2016 Rs. 47172.05 lacs)

(ii) There are no overdue amount payable to Micro and Small and Medium Enterprises as at the year end , For which disclosure requirement under MSMED Act. 2006 are applicable.

NOTE-2 Related Party Disclosure

(A) Relationships (Related parties with whom transactions have taken place during the year)

(a) Control Exist

Revera Milk food Product Pvt Ltd - Subsidiary Company

Mahakosh Property Developers (a firm where company is a partner) - Associate/Joint Venture

(b) Key Management Personnel

1. Shri Suresh Chandra Shahra : Chairman & Managing Director( Ceased on 17.02.2018)

2. Shri Manish Shahra : Chairman & Managing Director (w.e.f. 01.06.2018)

3. Shri Ashok Kumar Trived : Whole Time Director

4. Shri Shivam Asthana : Independent Director

5. Shri Gautam Jain : Chief Financial Officer

6. Shri Shailesh Kumath : Company Secretary

(c) Other parties where Key Management Personnel and/or their relatives have significant influence.and with whom transaction have taken place during the year

(i) Mahakosh Family Trust (ii) APL International Private Limited

(iii) Anik Ferro Alloys Pvt. Ltd.

N OTE-3 Leases (Where company is lessee)

The Company has taken office premises and residential premises under cancellable operating lease agreement these are renewable on periodic basis at the option of both lessor and lesee.The agreegate amount of operating lease payments recognised in the statement of profit and loss is Rs 27.62 lacs (P.Y.Rs.37.82 lacs).The company has not recognised any contingent rent as expense in the statement of profit and loss.

NOTE - 4 Pursuant to disclosure pertaining to section 186 (4) of Companies Act ,2013 the following are the details thereof -1 - Particulars of Loan given and Outstanding as on 31st March 2018

The above loans given are unsecured and classified under Short Term Loans and advances as Inter Corporate Deposits and are charged interest at the rate of 8%. The same are utilized by the recipient for general corporate purpose. (Refer Note 13)

2- Investment made-

The same are classified respective heads and utilised for the purpose as mentioned in their object clause . Refer Note 04 & 09.

NOTE - 5.

The company is required to spend on CSR activities under section 135 of the Companies Act, 2013 for the year ended March 31st 2018 is Rs 4.07 lacs (Pre. year Rs.0.16 lacs ) calculated as per section 198 of the Companies Act, 2013. Expenditure incurred (Paid through Bank) on CSR activities during the year Rs. Rs.4.07 lacs (Pre.Year Rs.0.71 lacs) other than capital expenditure.

NOTE -6 Exceptional Items

a (i) During the year 2016-17 the Company had transferred its Dairy Business on a slump sale basis for a lump sum consideration of Rs. 44568.95 lacs to Anik Milk Product Pvt Ltd as a going concern w.e.f. 1st September 2016. Dairy Business sold is considered as discontinued operation from that date. Accordingly the following assets and liabilities have been transferred:

b During the year 2016-17 the company has written off non realizable claims of debtors to the tune of Rs.Nil (Prev.year Rs. 9500.00 lacs) and the same has been disclosed as an exceptional item. c Loss on sale of company’s stake in subsidiary viz Revera Milk Food Product Pvt Ltd of Rs.Nil (prev.year Rs.2839.73 lacs)

NOTE -7 Financial risk management objectives and policies

In its ordinary operations, the companies activities expose it to the various types of risks, which are associated with the financial instruments and markets in which it operates. The company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the summary of the main risks:

a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the companies income or value of it’s holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. i) Interest rate risk

Interest rate risk is the risk the the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rate. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instrument will fluctuate because of fluctuations in the interest rates.

Interest rate sensitivity

The sensitivity analysis below have been determined based on exposure to interest rates for borrowing at the end ofthe reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of term loans that have floating rates. If the interest rates had been 1 % higher or lower and all the other variables were held constant, the effect on Interest expense for the respective financial years and consequent effect on companies profit in that financial year would have been as below:

ii) Foreign currency risk

The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analyses currency risk as to which balances outstanding in currency other than the functional currency of that Company. The company enters in to derivative financial instrument such foreign currency forward contract to mitigate the risk of changes in exchange rate on foreign currency exposure.

Sensitivity to foreign currency risk

The following table demonstrates the sensitivity in the USD currencies if the currency rate is increased/(decreased) by 1% with all other variables held constant. The below impact on the Company’s profit before tax is based on changes in the fair value of unhedged foreign currency monetary assets and liabilities at balance sheet date:

(b) Credit risk

Credit risk is the risk that arises from the possibility that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.Financial assets that are subject to such risk, principally consist of trade receivables, Investments and loans and advances. None of the financial insturments of the company results in material concentration of credit risk.Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to attempt to recover the receivables. Where recoveries are made, these are recognised in the Statement of Profit and Loss.The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each balance sheet date.

Trade and other receivables

To Manage trade and other receivables, the company periodically assesses the financial reliability of customers, taking in to account the financial conditions, economic trends, analysis to historical bad debts and ageing of such receivables.

InvestmentsThe Company limits its exposure to credit risk by generally investing in liquid securities and only with counter-parties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties apart from those already given in financials, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.The Company has obtained fund and non-fund based working capital lines from various banks. The company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, process and policies related to such risk are overseen by senior management. Management moniters the company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders ofthe Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2018 and 31st March, 2017.

Note- 8 Financial Instruments by Category and fair value heirarchy

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values.The fair values of the financial assets and financial liabilities included in the level 2 and level 3 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the Ind AS. An explanation for each level is given below.

Level 1 :Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

NOTE- 9 Transition to Ind AS:

For the purposes of reporting as set out in Note A - B, we have transitioned our basis of accounting from Indian generally accepted accounting principles (“IGAAP”) to Ind AS. The accounting policies set out in note B have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (the “transition date”).In preparing our opening Ind AS balance sheet, we have made certain adjustments to amounts reported in financial statements prepared in accordance with IGAAP. An explanation of how the transition from IGAAP to Ind AS has affected our financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables. On transition, we did not revise estimates previously made under IGAAP except where required by Ind AS.

Exemptions and exceptions availed

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

Ind AS Optional Exemptions :

Property, Plant and Equipment & Intangible Assets

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

Leases

In accordance with Ind-AS transitional provisions, the company opted to determine whether an arrangement existing at the date of transition contains a lease on the basis of facts and circumstances existing at the date of transition rather than at the inception of the arrangement.

F air value of financial assets and liabilities

The Company has financial receivables and payables that are non-derivative financial instruments. Under previous GAAP, these were carried at transaction cost less allowances for impairment, if any. Under Ind AS, these financial assets and liabilities are intially recognised at fair value and subsequently measured at amortised cost, less allowance for impairment, if any. For transactions entered into on or after the date of transition to Ind AS, the requirement of intial recognition at fair value is applied prospectively.

Investment in Subsidiaries

Ind As 101 permit a first-time adopter to elect to continue with the carrying value for all of its investment in subsidiaries are recognised in the financial statements at the date of transition to Ind AS, measur previous GAAP carrying value.ed as per the previous GAAP and use that as its deemed cost as at the date of transition. Accordingly ,the Company has elected to measure all of its investments in subsidiaries at their previous GAAP carrying value.

Estimates

The estimates at 1st April, 2016 and at 31st March, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adj ustment to reflect any differences if any, in accounting policies) apart from the following items where application of Indian GAAP did not require estimation.

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

- Investment in debt instruments carried at Amortised Cost.

- investment in equity instruments carried at Fair Value through profit or loss.

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at the transition date and as of 31st March, 2017.

Ind AS mandatory exceptions

Classification and measurement of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exists at the date of transition to Ind AS.

Derecognition of financial assets & financial liabilities

The company has elected to apply the derecognition requirements for financial assets & financial liabilities in accordance with Ind AS 109 prospectively for transactions occuring on or after the date of transition to Ind AS.

Impact of transition to Ind AS

The following is a summary of the effects of the differences betwwen Ind AS and Indian GAAP on the Company’s total equity shareholders’ funds and profit and loss for the financial period for the period previously reported under Indian GAAP following the date of transition of Ind AS Transition to Ind AS Reconciliation

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:

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 F inancial Statements of the Company prepared in accordance with Previous GAAP.

Notes on First time Adoption

I Property, Plant & Equipment:

on the date of transition i.e., 1 St April ,2016 the company has elected to measure all its property ,plant and equipment at their previous GAAp carrying value i.e., being deemed cost

II Defined benefit obligation:

Under Previous GAAP, the cost relating to post employment benefit obligation ncluding acturial gain/losses were recognised in profit and loss. Under the Ind AS , actuarial gain/losses on the net defined liability are recognised in the comprehensive income instead of profit & loss.

III Ind AS 109 requires transaction costs incurred towards borrowings to be deducted from the transaction value on initial recognition .These cost are recognised in profit & loss over the tenure of borrowings as a part ofthe interest expense by applying effective interest rate method.

IV Deferred tax have been recognized on adjustments made on transition to Ind As on 1 st April 2016 to retained earnings

V Investments

Under Previous GAAp, the group made Investments are recorded at cost. Under Ind AS the investments has been fair valued through profit & loss

VI Trade Receivables

The Company measures recovery of debtors on expected Credit loss Model. The difference between the present value and carrying amount is recognised in retained earnings as on transition date i.e., 1 st April ,2016

VII Non -Current Assets Held For Sale

Non Current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and sale is considered highly probable. They are measured at lower of thier carrying amount and fair value less cost to sell. Non current asset are not depreciated or amortised while they are classified as held for sale.

10. Previous year’s figures have been regrouped or rearranged whereever considered necessary to make them comparable with current year’s figures.


Mar 31, 2016

1. Working Capital Loans from Consortium Banks Rs. 1,13,45,92,201/-(Pre. Year Rs.1,14,01,87,730/-) are secured by:

2. Hypothecation of stocks of raw materials, finished goods, stores and spares, stock in process, packing materials and book debts, and all other movables, both present and future, lying or stored in factory premises, at Village Bilawali, Dist. Dewas (M.P.), Kasganj Road, Etah(U.P.), Govindpura, Bhopal units or where ever else, the same may be held or kept.

3. Further secured by Equitable Mortgage created over the Land situated at village Bilawali Dist. Dewas (MP), Kasganj Road, Etah (U.P.) with all buildings, super structures, plant & Machinery installed thereon except specific equipment, Plant & Machinery charged to Dena Bank for securing Term Loan.

4. Working Capital Loans from Banks Nil (Pre. Year Rs. 4,22,71,300/-) are secured by:

Subsequent and subservient charge on current assets such as stocks of raw materials, finished goods, stores and spares, stock in process, packing materials and book debts, and all other movables fixed assets of the company.

5. Short term borrowings aggregating to Rs. 1,13,45,92,201/- (Pre. Year Rs.1,18,24,59,030/-) is secured by personal guarantee of directors.

6. The Company has availed buyer’s credit, the said facility outstanding as at 31st March 2016, was Rs. Nil (previous year Rs. 37,75,53,046/- ), is guaranteed by banks against earmarking the non fund based credit facilities sanctioned by the banks.

7. Trade Payables includes bills payable for purchases of materials Rs.4,71,72,05,013 /- (Pre. Year Rs.3,66,15,65,170 /-)

8. a) Trade Payables includes Rs.10,52,670/- (Previous Year 5,26,067/- ) amount due to micro and small enterprises registered under the Micro, Small and Medium Enterprises Development Act , 2006 (MSMED) Act.

9. The details of amount outstanding to Micro and Small Enterprises are as under :

/kimirAO in

10. The information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

11. Financial and Derivatives Instruments:-

Derivative contract entered by the Company and outstanding as on 31st March, 2016

12. The Company has provided Rs. NIL (previous year Rs.56,384/-) towards wealth tax liability, which is included under rates & taxes.

13. Leases (Where company is lessee)

The Company has taken office premises and residential premises under operating lease agreement these are renewable on periodic basis at the option of both lessor and lesee. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs. 44,18,017/- (P.Y.Rs. 69,85,646/-).The company has not recognized any contingent rent as expense in the statement of profit and loss. The total future minimum non cancellable lease rentals payable at the balance sheet date is as under -

14. During the previous year pursuant to the Companies Act 2013 (‘the Act’) being effective from 1st April 2014 company has revised the useful life of fixed Assets for providing depreciation on it. Accordingly, carrying amount as on 1st April, 2014 has been depreciated over the remaining revised useful life of the fixed assets. Due to this change the depreciation for the year ended 31st March, 2015 is higher by Rs. 63,15,430/- and profit before tax is lower to the extent of Rs. 63,15,430/-. In accordance with transitional provision in respect of assets whose useful life is already exhausted as on 1st April, 2014, depreciation Rs.79,52,955/-(Net of deferred Tax Rs. 42,09,015/-) has been recognized in the opening balance of retained earnings in accordance with requirement of Schedule II of the Act.

15. Pursuant to disclosure pertaining to section 186 (4) of Companies Act ,2013 the following are the details thereof:-1- Investment made-

The same are classified respective heads for the purpose as mentioned in their object clause . Refer Note 12 & 15.

16. The company is required to spend on CSR activities under section 135 of the Companies Act, 2013 for the year ended March 31 2016 is Rs. 2,48,493/- (Pre. year Rs. 5,04,718/-) calculated as per section 198 of the Companies Act, 2013. Expenditure incurred (Paid through Bank) on CSR activities during the year Rs. 2,50,000/- (Pre. Year Rs. 7,00,000/-), on other than capital nature.

17. The Board of Directors of the Company at their meeting held on 0741 March, 2016 has approved the sale and transfer of the Dairy business of the Company being run at its plants situated at Dewas, Bhopal in the state of Madhya Pradesh and at Etah in the state of Uttar Pradesh to M/s B.S.A. International, Belgium or its affiliates, as a going concern on Slump Sale basis. The proposed sale and transfer of Dairy business is subject to approval of members, lenders and statutory/ regulatory authorities, as required and other conditions.

18. Previous year’s figures have been regrouped or rearranged where ever considered necessary to make them comparable with current year’s figures.


Mar 31, 2015

1. SHARE CAPITAL

1.1 Rights, Preference and restrictions attached to Shares:

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

1.2 For a period of five years immediately preceding the date of Balance Sheet i.e. 31]st March 2015 the Company has not :-

(i) Allotted shares as fully paid up pursuant to contract (s) without payment being received in cash.

(ii) Allotted shares as fully paid up by way of bonus shares.

(iii) Bought back shares.

2. CONTINGENT LIABILITIES AND COMMITMENTS

(To the extent not provided for) (Figures in Rs. )

PARTICULARS For the For the Year 2014 Year 2013 -15 -14

i) Contingent Liabilities

a) Income tax / Sales tax/ Excise duty demand disputed in appeal [Net of advance paid Rs. 3,92,98,996 (Previous 12,32,78,127 10,63,89,858 year Rs. 3,40,49,958 ) against disputed demand]

b) Estimated liability of Custom Duty, which may arise if export obligation/ commitment is not fulfilled 2,06,29,251 2,06,29,251

c) Guarantee issued by bank for and on behalf of third party, against, lien on fixed deposit 1,69,33,600 1,69,33,600

d) Corporate Guarantee given on behalf 3,89,74,489 - of others

e) Claims against the Company not 5,21,48,651 5,23,93,651 acknowledged as debt

f) Bills Discounting with Banks 57,26,700 2,36,00,000

ii) Commitment - -

3. Sitting fees paid to directors Rs. 68,000/ -(Previous year Rs.85,000/-) included in miscellaneous expenses .

4. In the opinion of the Board of Directors, current assets, loans and advances have 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 that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated hereinabove.

5. The lease deed in respect of the land at Jaisalmer on which Wind Mill is installed, is yet to be executed.

6. Disclosure as perAS-15"Employee Benefits" (Revised 2005)

a The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employees' gratuity at Etah Unit The annual premium paid to Life Insurance Corporation of India is charged to statement of Profit and Loss . The Company also carried out actuarial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per actuarial valuation as at year end is recognized in Statement of Profit and Loss.

7. Related Party Disclosure

(A) Relationships (Related parties with whom transactions have taken place during the year)

(a) Associate/ Joint Venture

Mahakosh Property Developers (a firm where Company is a partner)

(b) Key Management Personnel & their relatives

1. Shri Suresh Chandra Shahra : Managing Director

2. Shri Manish Shahra : Jt. Managing Director

3. Shri Kailash Chandra Shahra : Chairman

4. Shri Ashok Kumar Trivedi : Whole Time Director

(c) Other parties where Key Management Personnel and/or their relatives have significant influence.

(i) Mahakosh Family Trust

(ii) Anik Ferro Alloys Private Limited

(iii) Suman Agritech Limited

(iv) APL International Private Limited

Note: Related party relationships are as identified by the Company on the basis of information available.

8. Financial and Derivatives Instruments:-

Derivative contract entered by the Company and outstanding as on 31st March, 2015

9. The Company has provided Rs.56,384/- (previous year Rs. 71,629/-) towards wealth tax liability, which is included in Rates & Taxes .

10. Leases (Where Company is lessee)

The Company has taken office premises and residential premises under operating lease agreement these are renewable on periodic basis at the option of both lessor and lesee. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs. 1,17,61,156 (P.Y.Rs.95,23,038).The Company has not recognised any contingent rent as expense in the statement of profit and loss.

11. Pursuant to the Companies Act 2013 ('the Act') being effective from 1st April 2014, Company has revised the useful life of fixed Assets for providing depreciation on it. Accordingly, carrying amount as on 1st April, 2014 has been depreciated over the remaining revised useful life of the fixed assets. Due to this change the depreciation for the year ended 31st March, 2015 is higher by Rs. 63,15,430 and profit before tax is lower to the extent of Rs. 63,15,430 . In accordance with transitional provision in respect of assets whose useful life is already exhausted as on 1st April, 2014, depreciation Rs. 79,52,955 ( Net of Tax expensesRs.42,09,015) has been recognized in the opening balance of retained earnings in accordance with requirement of Schedule II of the Act.

12. Diminution in value of Investments written back Rs.1,75,330/-(Pre. Year Rs. Nil) is included in Misc. expenses Note 28 under Other Expenses.

13. Previous year's figures have been regrouped or rearranged wherever considered necessary to make them comparable with current year's figures.

14. Company Information, Significant Accounting policies and practices adopted by the Company are disclosed as under .

15. GENERAL INFORMATION

Anik Industries Limited (Formerly known as Madhya Pradesh Glychem Industries Limited) was incorporated as a Limited Company on February 10th, 1976.

In the year 2006, Company sold its Soya processing, Vegetable oils & fats and Food businesses (other than dairy) to its group Company M/s. Ruchi Soya Industries Ltd. and merged Dairy business situated at Etah (U.P.).

Now, the main business activities in which Company is dealing are processing of milk and its products, Wind Power Generation, Housing & Property Developments, Trading activities by Import and Export of edible oil & other commodities.

The shares of the Company are listed at the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).


Mar 31, 2014

1 Working Capital Loans from Consortium Banks are secured by :

a) Hypothecation of stocks of raw materials, finished goods, stores and spares, stock in process, packing materials and book debts, and all other movables, both present and future, lying or stored in factory premises, at Village Bilawali, Dist. Dewas (M.P.) , Kasganj Road, Etah (U.P.), Govindpura , Bhopal units or wherever else, the same may be held or kept.

b) Further secured by Equitable Mortgage created over the Land situated at village Bilawali Dist. Dewas (MP) and Kasganj Road, Etah (U.P.) with all buildings, super structures, plant & Machinery installed thereon except specific equipment, Plant & Machinery charged to Dena Bank for securing Term Loan.

c) Short term borrowing aggregating to Rs. 88,72,74,431/- (previous year 85,63,19,804/-) is secured by Personal guarantee of Directors.

2 CONTINGENT LIABILITIES AND COMMITMENTS

( To the extent not provided for )

(Figures in Rs)



PARTICULARS For the Year For the Year 2013-14 2012-13

i) Contingent Liabilities a) Outstanding Bank Guarantees 265493377 42417877

b) Income tax / Sales tax/ 106389858 5929142 Excise duty demand disputed in appeal [Net of advance paid Rs 34049958 (Previous year Rs 27345565 ) against disputed demand] c) Estimated liability of Custom Duty 20629251 13559347 which may arise if export obligation/ commitment is not fulfilled d) Claims against the company not 53293651 54047817 not acknowledged as debt e) Bills Discounting with Banks 23600000 24371008

ii) Commitments a) Guarantee issued by bank for and on behalf of third party, against lien on fixed deposit 1,69,33,600 1,69,33,600

3 a) Trade Payables includes Rs. 18,33,218 (Previous Year Rs. 4,05,154) amount due to micro, small and medium enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) Act.

b) The details of amount outstanding to Micro, Small and Medium Enterprises are as under : ^

c) The information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

4 During the year Company has availed buyer''s credit, the said facility outstanding as at 31st March 2014, was Rs. 31,29,09,565 (Previous year Rs. 56,21,32,608) is guaranteed by banks against earmarking the non fund based credit facilities sanctioned by the banks.

5 Sitting fees paid to directors Rs. 85,000/-(Previous year Rs.67,500/-) included in miscellaneous expenses.

6 In the opinion of the Board of Directors, current assets, loans and advances have 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 that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated hereinabove.

7 The lease deed in respect of the land at Jaisalmer on which Wind Mill is installed, is yet to be executed.

8 Disclosure as per AS-15"Employee Benefits" (Revised 2005)

a The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employees gratuity at Etah Unit. The annual premium paid to Life Insurance Corporation of India is charged to statement of Profit and Loss . The Company also carried out acturial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per acturial valuation as at year end is recognized in Profit and Loss Account.

9 Related Party Disclosure

(A) Relationships (Related parties with whom transactions have taken place during the year)

(a) Associate/ Joint Venture

Mahakosh Property Developers (a firm where company is a partner)

(b) Key Management Personnel and their relatives

1. Shri Suresh Chandra Shahra

2. Shri Manish Shahra

3. Shri Kailash Chandra Shahra

4. Shri Ashok Trivedi

Managing Director Jt. Managing Director Chairman

Whole-time Director

(c) Entities where Key Management Personnel and/or their relatives have significant influence.

(i) Mahadeo Shahra Sukrat Trust (ii) Mahakosh Family Trust (iii) Suman Agritech Limited

Note : Related party relationships is as identified by the Company and relied upon by the auditor.

10 The Company has provided Rs. 71,629 /- (previous year Rs. 1,10,663/-) towards wealth tax liability, which is included in Rates & Taxes.

11 Leases (Where company is lessee)

The Company has taken office premises and residential premises under operating lease agreement these are renewable on periodic basis at the option of both lessor and lesee. The agreegate amount of operating lease payments recognised in the statement of profit and loss is Rs. 95,23,038 (P.Y. Rs. 1,13,95,110).The company has not recognised any contingent rent as expense in the statement of profit and loss. The total future minimum lease rentals payable at the balance sheet date is as under :

12 The financial statements have been prepared in line with the requirements of Revised Schedule VI of the Companies Act, 1956 as introduced by the Ministry of Corporate Affairs from the financial year ended on 31st March, 2012. Accordingly, assets and liabilities are classified between current and non-current considering 12 month period as operating cycle.

13 Previous year''s figures have been regrouped or rearranged whereever considered necessary to make them comparable with current year''s figures.


Mar 31, 2013

1 a) Trade Payables includes Rs. 4,05,154 (Previous Year 1,18,330) amount due to micro, small and medium enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) Act. b) The details of amount outstanding to Micro, Small and Medium Enterprises are as under :

b) The information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

2 During the year Company has availed buyer''s credit, the said facility outstanding as at 31st March 2013, was Rs. 5,621 lacs (Previous year Rs. 12,636 lacs) out of which Rs. Nil (Pre. Year Rs. 6,292 lacs ), is guaranteed by banks against lien on Fixed Deposits (refer Note No. 16 ) with them and balance buyer''s credit of Rs. 5,621 lacs by earmarking the non fund based credit facilities sanctioned by the banks.

3 Sitting fees paid to directors Rs. 67,500/-(Previous year Rs.65,000/-) included in miscellaneous expenses .

4 In the opinion of the Board of Directors, current assets, loans and advances have 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 that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated hereinabove.

5 The lease deed in respect of the land at Jaisalmer on which Wind Mill is installed, is yet to be executed.

6 Disclosure as per AS-15"Employee Benefits" (Revised 2005)

a The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employees gratuity at Etah Unit. The annual premium paid to Life Insurance Corporation of India is charged to statement of Profit and Loss . The Company also carried out acturial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per acturial valuation as at year end is recognized in Profit and Loss Account.

b The liabilty inrespact leave encashment is determined using actuarial valution carried out as at balance sheet date. Leave encashment liabilty as at the year end Rs. 50,78,326/- (Prev.year Rs. 47,84,177/-)

6 Related Party Disclosure

(A) Relationships (Related parties with whom transactions have taken place during the year) (a) Associate/ Joint Venture

Mahakosh Property Developers (a firm where company is a partner)

(b) Key Management Personnel & their relatives

1. Shri Suresh Chandra Shahra : Managing Director

2. Shri Manish Shahra : Jt. Managing Director

3. Shri Ashok Trivedi : Whole Time Director

(c) Other parties where Key Management Personnel and/or their relatives have significant influence.

(i) Mahadeo Shahra Sukrat Trust (ii) Mahakosh Family Trust (iii) Suman Agritech Limited (iv) Shahra Securities Pvt. Ltd.

Note : Related party relationships is as identified by the Company and relied upon by the auditor.

7 The Company has provided Rs.1,10,663/- (previous year Rs. 1,01,500/-) towards wealth tax liability, which is included in Rates & Taxes .

8 Leases (Where company is lessee)

The Company has taken office premises and residential premises under operating lease agreement these are renewable on periodic basis at the option of both lessor and lesee.The agreegate amount of operating lease payments recognised in the statement of profit and loss is Rs.113.95 lacs (P.Y.Rs.80.70 lacs).The company has not recognised any contingent rent as expense in the statement of profit and loss. The total future minimum lease rentals payable at the balance sheet date is as under-

9 The financial statements have been prepared in line with the requirements of Revised Schedule VI of Companies Act, 1956 as introduced by the Ministry of Corporate Affairs from the financial year ended on 31st March 2013. Accordingly, assets and liabilities are classified between current and non-current considering 12 month period as operating cycle.

10 Previous year''s figures have been regrouped or rearranged whereever considered necessary to make them comparable with current year''s figures.

11 Company Information, Significant Accounting policies and practices adopted by the Company are disclosed as under :

GENERAL INFORMATION

Anik Industries Limited (Formerly known as Madhya Pradesh Glychem Industries Limited) was incorporated as a Limited Company on February 10th, 1976.

In the year 2006, Company sold its Soya processing, Vegetable oils & fats and Food businesses (other than dairy) to its group Company M/s. Ruchi Soya Industries Ltd. and merged Dairy business situated at Etah (U.P.).

Now, the main business activities in which company is dealing are processing of milk and its products, Wind Power Generation, Housing & Property Developments, Trading activities by Import and Export of edible oil & other commodities.

The shares of the Company are listed at the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).


Mar 31, 2012

1.1 The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, exceptincase of interim dividend.In the event of liquidation, the equity shareholders are eligible toreceive the remaining assetsof the Company, after distribution of all preferential amounts,in proportion of their shareholding.

2 CONTINGENT LIABILITIES AND COMMITMENTS

(To the extent not provided for ) (Figures in `)

PARTICULARS For the Year For the Year 2011-12 2010-11 i) Contingent Liabilities

a) Outstanding Bank Guarantees 4,26,37,877 4,38,18,777

b) Income tax / Sales tax/ Excise duty demand disputed in appeal [Net of 3,94,93,357 3,94,93,357 advance paid Rs. 2,74,85,565 (Previous year Rs.2,74,85,565 ) against disputed demand]

c) Estimated liability of Custom Duty, which may arise if export 1,35,59,347 1,17,93,819 obligation/ commitment is not fulfilled

d) Letter of Credit opened on behalf of others 30,83,177 5,52,00,000

e) Claims against the company not acknowledged as debt 4,39,98,583 42,40,483

f) Bills Discounting with Banks 9,02,25,500 35,97,43,177

ii) Commitments

a) Estimated amount of contracts remaining to be executed on 3,98,000 5,48,000 capital account (Net of advances)

b) Corporate Guarantee given on behalf of others - 60,00,00,000

c) Guarantee issued by bank for and on behalf of third party, 1,69,33,600 1,80,80,100 against lien on fixed deposit

3 The Company has not received any intimation from " Suppliers" regarding their status under the Micro ,Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amount unpiad as at year end together with interest paid/payable under this Act have notbeen given.

4 During the year Company has availed buyer s credit, the said facility outstanding as at 31 March 2012, was Rs. 12,636 lacs (Previous year Rs. 6,254 lacs) out of which Rs.6,292 lacs (Pre.Year Rs 6,254 lacs ), is guaranteed by banks against lien on Fixed Deposits (refer note 16 ) with them and balance buyer’s credit line of Rs. 6,343 lacs guaranteed by banks, against earmarking the credit facilities sanctioned by the banks.

5 Sitting fees paid to directors Rs. 65,000/-(Previous year Rs.12,500/-) included in miscellaneous expenses.

6 In the opinion of the Board of Directors, current assets, loans and advances have 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 that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated hereinabove.

7 The lease deed in respect of the land at Jaisalmer on which Wind Mill is installed, is yet to be executed.

8 Capital Work In Progress

B Borrowing Cost capitalised during the year on funds attributable to constuction/ set-up of new project at Dewas Rs. NIL (previous year 1,00,91,106/-) and included under capital work inprogress Rs. NIL(previous year Rs. NIL)

9 Related Party Disclosure

(A) Relationships

(a) Associate/ Joint Venture

Mahakosh Property Developers (a firm where company is a partner)

(b) Key Management Personnel & their relatives

1. Shri Suresh Chandra Shahra : Managing Director

2. Shri Manish Shahra : Jt. Managing Director

3. Shri Ashok Trivedi : Whole Time Director

(c) Other parties where Key Management Personnel and/or their relatives have significant influence.

(i) Shahra Securities Pvt Ltd (ii) Mahadeo Shahra Sukrat Trust

(iii) Mahakosh Family Trust

Note : Related party relationships is as identified by the Company and relied upon by the auditor.

10 The Company has provided Rs. 1,01,500/- (previous year Rs. 97,000/-) towards wealth tax liability, which is included in Rates&Taxes.

11 Leases(Where company is lessee)

The Company has taken various premises under operating leases with no restrictions and are renewable / cancelable at the option of either parties. There is no escalation clause in the lease agreement. There are no sub-leases. There are no restrictions imposed by lease arrangements. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs.80.70 lacs (Pre. Year Rs.185.01 lacs). The company has not recognized any contingent rent as expense in the statement of profit and loss.

12 The financial statements have been prepared inline with the requirements of Revised ScheduleVI ofCompaniesAct, 1956 as introduced by the Ministry of Corporate Affairs from the financial year ended on 31st March 2012. Accordingly, assets and liabilities are classified between current and non-current considering 12 month period as operating cycle. Consequently, the Company has re-classified previous year figures to confirm to this year’s classification.

13 Company Information, Significant Accounting policies and practices adopted by the Company are disclosed in the statement annexed tothese financial statements as"AnnexureA."

GENERALINFORMATION

Anik Industries Limited (Formerly known as Madhya Pradesh Glychem Industries Limited) was incorporated as a Limited Company on February 10th,1976.

The Company's manufacturing units of dairy business are situated at Dewas & Bhopal in M.P. and at Etah in U.P. The Company's products i.e. Ghee, SMP, Milk etc. are marketed in all over the country under leading brands ANIK and SOURABH, which are assuranceofbest quality.

Companyis also having presence in Housing and Property Development, Merchant Trading, Wind Power Generation and Mining activities.

The sharesofthe Company are listedatthe Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).


Mar 31, 2011

2010-11 2009-10

PARTICULARS (Rupees) (Rupees)

1 Contingent Liabilities Not provided for :

a) Outstanding Bank Guarantees 4,38,18,777 1,99,96,877

b) Estimated amount of contracts remaining to be executed on capital account (Net of advances) 5,48,000 49,34,092

c) Income Tax / Sales tax/ Excise Duty demand disputed in appeal [Net of Advance paid Rs. 2,74,85,565 (Previous year Rs. 2,65,10,565 ) against disputed demand] 3,94,93,357 3,76,11,580

d) Estimated liability of Customs Duty, which may arise if export obligation/ commitment is not fulfilled 1,17,93,819 1,33,22,039

e) Letter of Credit opened on behalf of others 5,52,00,000 --

f) Guarantee issued by bank for and on behalf of third party 21,46,500 1,61,95,100 against, lien on fixed deposit

g) Corporate Guarantee given on behalf of others 60,00,00,000 --

h) Claims against the company not acknowledged as debt 42,40,483 8,01,302

i) Bills Discounting with Banks 35,97,43,177 28,47,98,825

2 Sundry Creditors includes bills payable for purchases of material Rs.1,10,93,03,660/- (Pre. Year Rs. 1,02,45,00,931/-)

3 Sales includes loss Rs. 45,34,976/- (Pre.Year Rs. 1,05,06,175/-) and purchase includes gain Rs.3,99,23,739/- (Pre. Year Rs. 18,21,54,175/-) respectively towards difference arising on account of fluctuation in the rate of exchange, consequent to recording the transactions as per revised Accounting Standard No. 11 issued by the Institute of Chartered Accountants of India.

4 During the year company has availed buyers credit, the said facility is outstanding as on 31st March, 2011 was Rs. 6,254 Lacs (Prev. Yr. Rs. 18,282 Lacs) is guaranteed by the bank against pledge of fixed deposit receipts with them. In the Balance Sheet (Schedule 4) the said amount of buyers credit is included in unsecured loans from Banks and the fixed deposit of Rs. 6,501 Lacs (Prev. year Rs. 18,610 Lacs) are included under bank balances with scheduled banks in "deposit accounts" (Schedule 9).

5 There is no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days 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. This has been relied upon by the Auditors.

6 In the opinion of the Board of Directors, current assets, loans and advances have 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 that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated hereinabove.

7 The lease deed in respect of the land at Jaisalmer on which the Wind Mill is installed, is yet to be executed.

8 Related Party Disclosur e:

(A) Relationships (Related parties with whom transactions have taken place during the year)

(a) Associate/ Joint Ventur e

Mahakosh Property Developers (a firm where company is a partner)

(b) Key Management Personnel & their relatives

1 Shri Suresh Chandra Shahra : Managing Director

2 Shri Manish Shahra : Jt. Managing Director

3 Shri Deepakk Goyal : Executive Director (resigned on 07.02.11)

4 Shri Ashok Trivedi : Whole Time Director

(c) Other parties wher e Key Management Personnel and/or their relatives have significant influence. (i) Shahra Securities Pvt. Ltd.

(ii) Mahadeo Shahra Sukrat Trust

Note : Related party r elationships is as identified by the company and relied upon by the auditor .

9 The Company has provided Rs. 1,01,500/- (Previous Year Rs. 97,000/-) towards wealth tax liability.

10 Leases (Where company is lessee)

Operating Leases : The Company has taken various commercial premises & residential premises under cancellable operating leases. These lease agreement are normally renewed on expiry.

11 From the current year with effect from 1st April , 2010 following implemention of SAP transactions system, inventories are valued at lower of cost arrived at on Moving Average Price ( MAP ) method or Net Realisable Value (NRV) . Hitherto cost was arrived at on FIFO method . The impact of the change in method of stock valuation on the profit for the year is however not determinable.

12 Previous year's figures have been re-grouped/rearranged or recast whereever necessary.

13 Additional information required in terms of Part-IV of Schedule VI to the Companies Act,1956 is attached herewith.


Mar 31, 2010

PARTICULARS 2009-10 2008-09

(Rs.) (Rs.)

1 Contingent Liabilities Not provided for :



a) Outstanding Bank Guarantees 1,99,96,877 1,45,57,877

b) Estimated amount of contracts remaining to be executed

on capital account (Net of advances) 49,34,092 9,21,77,730

c) Income Tax / Sales tax/ Excise Duty demand disputed in appeal [Net of amount paid Rs. 26510565(Previous year Rs. 26370565 )

against disputed demand] 3,76,11,580 5,80,99,726

d) Estimated liability of Customs Duty, which may arise if export

obligation/ commitment is Not fulfilled 1,33,22,039 27,98,235

e) Letter of Credit opened on behalf of others - 51,31,68,324

f) Guarantee issued by bank for and on behalf of third party

against, lien on fixed deposit 1,61,95,100 1,80,80,100

g) Claims against the company Not acknowledged as debt 8,01,302 8,01,302 h) Bills Discounting with Banks 28,47,98,825 40,41,24,543





2 Sundry Creditors includes bills payable for purchases of material Rs. 1,02,45,00,931 (Prev. YearRs. 63,29,16,530)

3 Sales and purchases includes Rs. 1,05,06,175 (Prev. Year Rs. 4,02,769) and Rs. 18,21,54,175 (Prev. Year Rs. 33,76,52,050) respectively towards difference arising on account of fluctuation in the rate of exchange, consequent to recording the transactions as per revised Accounting Standard No. 11 issued by the Institute of Chartered Accountants of India.

4 During the year company has availed Buyers Credit, the said facility is outstanding as on 31 st March, 2010 was Rs. 18,282 Lacs (Prev. year Rs. 2,409 Lacs) is guaranteed by the bank against pledge of Fixed Deposit Receipts with them. In the Balance Sheet (schedule 4) the said amount is shown as unsecured Loans from Banks and the fixed deposit of Rs. 18,610 Lacs (Prev. year Rs. 2,415 Lacs) are included under bank balances with Scheduled Banks in "Deposit Accounts" (schedule 9).

5 There is no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 3 0 days as at 31 st March, 2010. 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. This has been relied upon by the Auditors.

6 Balances of creditors, debtors, deposits and advances are partly confirmed.

7 In the opinion of the Board of Directors, current assets, Loans and advances have 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 that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated hereinabove.

8 The lease deed in respect of the land at Jaisalmer on which the Wind Mill is installed, is yet to be executed.

9 Related Party Disclosure:

(A) Relationships (Related parties with whom transactions have taken place during the year) (a) Subsidiary Companies:

(i) Anik Energy Pvt. Ltd. (w.e.f. 31.03.2010) (ii) Anik Ferro-Alloys Pvt. Ltd. (w.e.f. 31.03.2010)

(b ) Associate/ Joint Venture

Mahakosh Property Developers (a firm where company is a partner)

(cj Key Management Personnel & their relatives

1. Mr. Suresh Chandra Shahra : Managing Director

2. Mr. Manish Shahra : Jt. Managing Director

3. Mr. Deepakk Goyal : Whole Time Director

4. Mr. Ashok Trivedi : Whole Time Director

5. Mr. Ashok Phadnis : Whole Time Director (Mr. Ashok Phadnis resigned on 10.03.10)



(d) Other parties where Key Management Personnel and/or their relatives have significant influence.

(i) Gloryshine Property Developers Pvt Ltd (ii) Anik Precious Metals Pvt. Ltd.

(iii) Mahadeo Shahra Sukrat Trust (iv) Shahra Securities Pvt Ltd

(v) Shahra Estate Pvt. Ltd. (vi) Shahra Brothers Pvt Ltd

(vii) Nestor Securities Pvt. Ltd. (viii) Ruchi Realty Holdings Ltd.

(ix) Nirvana Housing Pvt. Ltd.

10 The Company has provided Rs. 97,000 /- (Previous Year Rs. 1,23,000/-) towards Wealth Tax liability.

11 Leases (Where company is lessee)

Operating Leases : The Company has taken various commercial premises & residential premises under cancellable operating leases. These lease agreement are normally renewed on expiry.

12 Sales of Power Generated by wind turbines includes 18,09,281 units of Rs. 47,00,188/- (Prev. Yr. units 18,89,419 of Rs.52,93,326/-) used for captive consumption.

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