Notes to Accounts of Aries Agro Ltd.

Mar 31, 2023

Aries Agro Care Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 5^th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry on the business in all branches of agro protection, agro care, etc. The Registered Office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043”.

Aries Agro Equipments Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 12^th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry on the business of manufacturing, repair, etc. of all types of rural and farm equipments, machinery, etc. The Registered Office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043”.

Mirabelle Agro Manufacturing Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 26^th December, 2019 with the Registrar of Companies, Maharashtra, Mumbai. to carry on the business of manufacturing, Producing and Dealing in Mineral Feed Supplements. The Registered Office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043”. During the Year the Company has acquired 24,90,000 Shares @ Rs. 10 each.

Golden Harvest Middle East FZC was incorporated on 31^st December, 2004 as a Free Zone Company with limited liability to carry on the activities of manufacturing Chemical Fertilizer and exporting all the necessary, material and acts related to its natural work or needed to the above mentioned works. In the year 2008 it became 75% subsidiary of the Company, Aries Agro Limited which increased to 88.14% upon conversion of Current Account Balance / Share Application Money to Capital Account.The Registered Office of the Company is located at “ SAIF Zone ( Emirates of Sharjah ) “UAE”. The licence has since been converted into a trading licence effective from 7th December, 2016.

During the Previous Year, the Share Application Money / Share Holders Current Account was converted into Share Capital resulting into increase of the Share Capital to AED 1,91,50,000 consisting of 1,91,500 Shares of AED 100 each.

Aries Agro Produce Pvt. Ltd. has been incorporated on 20^th June, 2008 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of all kinds of Farming, agriculture, horticulture etc. and to plant, grow, cultivate and in any other way deal in farming and agricultural produce. The registered office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai -400 043”.

Other Equity

Securities Premium Reserve : represents the amount received in excess of par value of securities i.e equity shares. Premium on redemption of securities is accounted in security premium available. Where security premium is not available, premium on redemption of securities is accounted in statement of profit and loss. Section 52 of Companies Act, 2013 specify restriction and utilisation of security premium.

General Reserve : represents the statutory reserve, this is in accordance with Indian Corporate law wherein a portion of profit is apportioned to general reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a Company can declare dividend, however under Companies Act, 2013 transfer of any amount to General reserve is at the discretion of the Company.

Retained Earnings : represent the undistributed profits of the Company

Other Comprehensive Income Reserve : represent the balance in equity for items to be accounted in Other Comprehensive Income. Other Comprehensive Income is classified into i) items that will not be reclassified to profit and loss, ii) items that will be reclassified to profit and loss.

All Permanent Employees having served from the 1st day of their employment are entitled to the benefits of the contribution to Provident Fund.

The Company contributes specified percentage of the salary paid to Employees to the Defined Fund.

Defined Benefit Plan

All Employees who have completed five years or more of service are entitled to benefits of Gratuity. The Company has the Employee''s Group Gratuity scheme managed by Life Insurance Corporation of India which is a Defined Benefit Plan. The Employees Leave Encashment scheme, which is a Defined Benefit Plan is unfunded.

Below table sets forth the changes in the projected benefit obligation and plan assets and amounts recognised in the Standalone Balance Sheet as at 31st March, 2023 and 31st March, 2022, being the respective measurement dates :

Sensitivity analysis is performed by varying a single parameter while keeping all other parameters unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the Projected Unit Credit method has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet. The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

40. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given / Bills discounting Rs. 1,167.47 Lakhs..

b) Claims against company not acknowledged as debts Rs. 4,900.42 Lakhs which includes tax dues disputed as Rs. 23.55 Lakhs towards sales Tax, Rs. 717.82 Lakhs towards Income Tax, Rs. 4,152.09 Lakhs towards central excise & customs and Rs. 6.97 Lakhs pertaining to pending suits regarding quality issue.

c) 1) The Commissioner of CGST & Central Excise, Navi Mumbai, had passed an order confirming demand of Rs. 4.79 Crores and interest on the said amount on account of Central Excise duty on the classification of micronutrient fertilizers products relating to the Mumbai Factory against which the Company filed an appeal before the Central Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai and the same is pending before CESTAT Mumbai.

2 (a). The Commissioner of Central Excise, Ahmedabad - II, had passed an order confirming demand of Rs. 3.81 Crores on account of Central Excise duty, interest on the said amount and penalty of like amount i.e. Rs.3.81 Crores on the classification of micronutrient fertilizers relating to the Sanand facility against which the Company has filed an appeal before the Central Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad and the same is pending before CESTAT, Ahmedabad.

2 (b). The Commissioner of Central GST & Central Excise, Ahmedabad, had passed an order confirming demand of Rs. 13.84 Crores on account of Central Excise duty, penalty on the said amount of Rs. 13.84 Crores on the classification nine micronutrient fertilizers products relating to the Chhatral factory against which the Company has filed an appeal before the Central Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad.

The Central Board of Excise and Customs vide their Circular No. 1022/10/2016/CX dated 06/04/2016 have clarified that Micronutrients are not classifiable as Plant Growth Regulators and hence are not classifiable under Chapter Heading No. 38.08 of the Central Excise Act.

In view of legal pronouncement and the above referred Circular, the Show Cause-Cum-Demand Notices are liable to be dropped.

3(a). The Company has been classifying Sulphur Bentonite under Chapter Heading No. 25030090 as other forms of Sulphur. However, the Customs authorities classified Sulphur Bentonite imported under Chapter Heading No. 25030010 “as recovered byproduct in refining of crude oil”. The Additional Commissioner of Customs, Nhava Sheva confirmed the classification under Chapter Heading No. 25030010 and demanded an amount of Rs. 29.91 Lakhs, in addition penalty of like amount i.e. Rs. 29.91 Lakhs along with fine and penalty of Rs. 7.00 Lakhs each on the Chairman & Managing Director and Purchase Manager of the Company.

The Company preferred an appeal before the Commissioner (Appeals) who vide order dated 19/02/2016 while upholding the Department''s contention of classifying the product under Chapter Heading No. 25030010 set aside the fine and penalty imposed upon the Company, the Chairman & Managing Director and the Purchase Manager. The Commissioner Appeals also directed to grant benefit vide Sr. No. 60 under Notification No. 21/2002/CUS. The Company has preferred an appeal against the said order to the Customs, Central Excise and Service Tax Tribunal, Mumbai on 19/05/2016 contesting the classification of Sulphur Bentotonite under Chapter Heading No. 25030010.

3(b). The Company has been classifying Zn-EDTA & Fe-EDTA under Chapter Heading No. 31059090 as other Fertiliser for Mumbai Factory. However, the Customs authorities classified imported under Chapter Heading No. 29224990 “as Organic Chemical. The Commissioner of Customs, Nhava Sheva confirmed the classification under Chapter Heading No. 29224990 and pass order and demanded an amount of Rs. 81.84 Lakhs, on account of Custom Duty with Interest against which the Company has filed an appeal before the Customs, Excise & Service Tax Appellate Tribunal Mumbai.

41. Segmental Reporting as per Ind AS - 108

The Company has only One business Segment “ Agri Inputs “as its primary segment and hence disclosure of segment-wise information is not required under Ind AS 108 ‘Operating Segments'' notified pursuant to the Companies (Indian Accounting Standard) Rules, 2016 (as amended).

The Company has no transaction with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956

Previous Years figures have been regrouped and rearranged wherever necessary so as to make them comparable with the curren year.

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Mar 31, 2018

1. Corporate Information

Aries Agro Limited(‘Aries'' or the ‘Company'') was incorporated at Mumbai in 1969 for manufacturing of small range of mineral feed additives for animals & birds and then diversified into mineral additives for the agriculture use and currently is into business of manufacturing micronutrients and other nutritional products for plants and animals.

In January, 2007 the Company incorporated Aries Agro Care Private Limited as a Wholly Owned Subsidiary for carrying business in the Branch of agro protection, seeds etc.

In January, 2007 the Company incorporated Aries Agro Equipments Private Limited as a Wholly Owned Subsidiary for carrying business in all type of farm equipments, machinery etc.

In 2008 the Company acquired 75% Shares in Golden Harvest Middle East FZC, Sharjah, UAE, by virtue of which the said Golden Harvest Middle East FZC has become a Subsidiary of the Company. Golden Harvest Middle East FZC is in the business of manufacturing chelated micronutrients.

In June, 2008 the Company incorporated Aries Agro Produce Private Limited as a Subsidiary for carrying business in all kinds of farming etc. and the Company ceased to be a Subsidiary on and from 3^rd April, 2017.

In the year 2010 the Company''s Overseas Subsidiary viz M/S Golden Harvest Middle East FZC acquired 75% Shares of M/S Amarak Chemicals FZC based in Fujairah Free Zone, UAE by virtue of which M/S Amarak Chemicals FZC has become a Step Down Subsidiary of Aries Agro Limited.

Aries Agro Limited is an Indian Multinational Company that offers the widest range of products in the primary, secondary and microfertilizer sector, ranging from individual elements to mixed specialty plant nutrient fertilizers. Since 1969, Aries has pioneered several innovative concepts of farming to Indian agriculturists, including the wonder of Chelation Technology, bio-degradable complexes of plant nutrients, water soluble NPK fertilizers, value added secondary nutrients, natural and biological products and water treatment formulations.

2. Basis of Preparation

These Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the Historical Cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act 2013 (the Act) (to the extent notified) and guidelines issued by Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under section 133 of the Act read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

Effective April 1, 2016, the Company has adoped all the Ind AS Standards and the adoption was carried out in accordance with the Ind AS 101 First Time Adoption of Indian Accounting Standards, with April 1, 2015 as the transition date. The transition was carried out from Indian Accouting Principles generally accepted in India as prescribed under section 133 of the Act, read with rule 7 of the Companies (Account) Rules, 2014 ( IGAAP), which was the previous GAAP.

Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing Accounting Standard requires a change in the Accounting Policy hitherto in use.

1.1 Statement of Compliance

The Comparative Standalone Financial Statements comprising Balance Sheet, Statement of Profit and Loss, Statement of Changes in Equity, Cash Flow Statement, together with the Notes to accounts along with a summary of the significant accounting policies and other explanatory information for the year ended 31^st March 2017 have been prepared in accordance with the Ind AS as notified above.

1.2 Basis of Measurement - Historic Cost Convention

These Standalone Financial statements have been prepared on a historical cost basis, except for the following:

- certain financial assets and liabilities that is measured at fair value (refer accounting policy regarding financial instruments);

- Defined benefit plans - plan assets measured at fair value

All assets and liabilities has been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.

2.3 Functional and Presentation Currency

Items included in the Financial Statements of the entity are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). Indian Rupee is the Functional currency of the Company.

The Financial statements are presented in Indian Rupees, which is the Company''s presentation currency.

1.4 Use of Estimates:

The preparation of Financial Statements in accordance with Ind AS requires use of estimates and assumptions for some items, which might have an effect on their recognition and measurement in the Balance Sheet and Statement of Profit and Loss. The actual amounts realized may differ from these estimates. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized and, if material, their effects are disclosed in the notes to the Financial Statements.

Estimates and assumptions are required in particular for :

(i) Determination of the estimated useful life of tangible assets and the assessment as to which components of the cost may be capitalized :

Useful life of tangible assets is based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful life is different from that prescribed in Schedule II, it is based on technical advice, taking into account the nature of the asset, estimated usage and operating conditions of the asset, past history of replacement and maintenance support. An assumption also needs to be made, when the Company assesses, whether an asset may be capitalized and which components of the cost of the asset may be capitalized.

(ii) Recognition and measurement of defined benefit obligations :

The obligation arising from the defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation and vested future benefits and life expectancy. The discount rate is determined with reference to market yields at the end of the reporting period on the government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations.

(iii) Recognition of deferred tax assets :

A Deferred tax asset is recognized for all the deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. The management assumes that taxable profits will be available while recognizing deferred tax assets.

(iv) Recognition and measurement of other provisions :

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances known at the balance sheet date. The actual outflow of resources at a future date may therefore vary from the figure included in other provisions.

(v) Discounting of long-term financial liabilities :

All financial liabilities are required to be measured at fair value on initial recognition. In case of financial liabilities, which are required to be subsequently measured at amortized cost, interest is accrued using the effective interest method.

(vi) Determining whether an arrangement contains a lease :

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease. At the inception or on reassessment of an arrangement that contains a lease, the Company separates payments and other consideration required by the arrangement into those for the lease and those for the other elements based on their relative fair values. If the Company concludes for a finance lease that, it is impracticable to separate the payments reliably, then an asset and a liability are recognized at an amount equal to the fair value of the underlying asset; subsequently, the liability is reduced as payments are made and an imputed finance cost on the liability is recognized using the Company''s incremental borrowing rate. In case of operating lease, the Company treats all payments under the arrangement as lease payments.

3. Standards Issued and effective from 1^st April, 2018:

Ind AS 115 “Revenue from Contract with Customers : The MCA had notified Ind - AS 115 “Revenue from Contract with Customers” in February, 2015. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to the customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.

4. Current Versus Non-Current Classification :

(i) The assets and liabilities in the Balance Sheet are based on current/ non - current classification. An asset as current when it is:

1. Expected to be realized or intended to be sold or consumed in normal operating cycle.

2. Held primarily for the purpose of trading.

3. Expected to be realized within twelve months after the reporting period, or

4. Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non - current.

(ii) A liability is current when it is:

1. Expected to be settled in normal operating cycle

2. Held primarily for the purpose of trading

3. Due to be settled within twelve months after the reporting period, or

4. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period All other liabilities are treated as non - current.

Deferred tax assets and liabilities are classified as non - current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents

5. Aries Agro Care Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 5^th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry on the business in all branches of agro protection, agro care, etc. The Registered Office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043”.

6. Aries Agro Equipments Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 12^th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry on the business of manufacturing, repair, etc. of all types of rural and farm equipments, machinery, etc. The Registered Office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043”.

7. Golden Harvest Middle East FZC was incorporated on 31^st December, 2004 as a Free Zone Company with limited liability to carry on the activities of manufacturing Chemical Fertilizer and exporting all the necessities, material and acts related to its natural work or needed to the above mentioned works. In the year 2008 it became 75% subsidiary of the Company, Aries Agro Limited.The Registered Office of the Company is located at “ SAIF Zone ( Emirates of Sharjah )”. The licence has since been converted into a trading licence effective from 7th December, 2016.

8 Aries Agro Produce Pvt. Ltd. has been incorporated on 20^th June, 2008 as 75% owned subsidiary with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of all kinds of Farming, agriculture, horticulture etc. and to plant, grow, cultivate and in any other way deal in farming and agricultural produce. The registered office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043”.

9. The Company sold majority of shareholding in its subsidiary Aries Agro Produce Private Limited on 3rd April,2017. Hence Aries Agro Produce Private Limited has ceased to be a subsidiary of the Company w.e.f. 3rd April, 2017.

10 Nature of Reserves

11. Securities Premium Reserve : represents the amount received in excess of par value of securities i.e equity shares. Premium on redemption of securities is accounted in security premium available. Where security premium is not available, premium on redemption of securities is accounted in statement of profit and loss. Section 52 of Companies Act, 2013 specify restriction and utilisation of security premium.

12. General Reserve : represents the statutory reserve, this is in accordance with Indian Corporate law wherein a portion of profit is apportioned to general reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a Company can declare dividend, however under Companies Act, 2013 transfer of any amount to General reserve is at the discretion of the Company.

13. Retained Earnings : represent the undistributed profits of the Company

14. Other Comprehensive Income Reserve : represent the balance in equity for items to be accounted in Other Comprehensive Income. Othe Comprehensice Income is classified into i) items that will not be reclassified to profit and loss, ii) items that will be reclassified to profit and loss.

15. Working Capital Facilities from Banks are secured by way of Charge on Company''s Inventory, Book Debts, Charge on Land, Building, Plant & Machinery and all other movable fixed assets of the Company and guaranteed by Directors.

15. There are no Micro and Small Enterprises to whom Company owes dues, which are outstanding for more than 45 days as at 31st March, 2018. 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.

16. All Trade Payables are non-interest bearing and payable or settled within normal operating cycle of the Company.

17. Un-Secured Term Loans from Banks included in Current Maturities of Long Term Debt to the extent of Rs. 1,50,42,729/- (31st March, 2017, Rs. 1,34,03,229/-) are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

18. Unclaimed Dividend do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

19. Statutory Dues includes Indirect Taxes, Tax Deducted at Source, Tax Collected at Source, ESIC, Provident Fund and Profession Tax.

20. Other Payables includes mainly Staff Expense Claims and Provision for Expenses.

All Permanent Employees having served from the 1st day of their employment are entitled to the benefits of the contribution to Provident Fund.

The Company contributes specified percentage of the salary paid to Employees to the Defined Fund.

Defined Benefit Plan

All Employees who have completed five years or more of service are entitled to benefits of Gratuity. The Company has the Employee''s Group Gratuity scheme managed by Life Insurance Corporation of India which is a Defined Benefit Plan. The Employees Leave Encashment scheme, which is a Defined Benefit Plan is unfunded.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.

Sensitivity analysis is performed by varying a single parameter while keeping all other parameters unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the Projected Unit Credit method has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet. The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

21. OPERATING LEASE COMMITMENTS ( Company is a Lessee )

The Company''s significant leasing arrangements are in respect of Operating Leases for Vehicles. These leasing arrangements which are not non-cancellable range upto 60 months generally and are renewable by mutual consent on mutually agreeable terms. The aggregate Lease Rentals payable are charged as “RENT” in Other Administrative Expenses under Note 34.

22. General description of Lease terms :

(a) Lease Rentals are charged on the basis of agreed terms.

(b) Assets are taken on Lease for a period upto 60 months.

38. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given / Bills discounting Rs.1,624.77 Lakhs.

b) Standby letter of credit for Overseas Subsidiary Golden Harvest Middle East FZC

-Axis Bank Rs. 1,042.56 Lakhs

Rs. 1,042.56 Lakhs

c) Claims against company not acknowledged as debts Rs. 1,292.18 Lakhs which includes tax dues disputed as Rs. 10.47 Lakhs towards sales Tax, Rs. 480.27 Lakhs towards Income Tax, Rs. 792.01 Lakhs towards central excise & customs and Rs. 9.43 Lakhs pertaining to pending suits regarding quality issue.

d) 1 (a). The Commissioner of Central Excise, Hyderabad had issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients by proposing to classify the same as Plant Growth Regulators under Chapter Heading No. 38.08 of Central Excise Act and thereafter vide his order dated 30th November, 2005 upheld the classification of Micronutrients under chapter heading no 3105 as Fertilizers and consequently cancelled the demand. The Department had preferred appeals against the said orders before CESTAT, Hyderabad. The total amount demanded was to the tune of Rs. 356.40 Lakhs. CESTAT, Hyderabad vide their order bearing no A/30767-30768/2017 dated 19.06.2017 confirmed the classification of Micronutrients as Fertilizers under chapter heading no 3105 of the Central Excise Tarrif and dismissed the appeal filed by the Central Excise authorities.

1 (b).The Commissioner of Central Excise, Mumbai had issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients by proposing to classify the same as Plant Growth Regulators under Chapter Heading No. 38.08 of Central Excise Act and thereafter vide his order dated 27th November, 2006 upheld the classification of Micronutrients under chapter heading no 3105 as Fertilizers and consequently cancelled the demand. The Department had preferred appeals against the said orders before CESTAT, Mumbai and the same is pending before them. The total amount demanded was to the tune of Rs. 725.60 Lakhs and the appeals are pending before CESTAT, Mumbai.

2. Commissioner of Central Excise, Ahmedabad - II, has passed an order confirming demand of Rs. 3.81 Crores on account of Central Excise duty, interest on the said amount and penalty of like amount i.e. Rs. 3.81 Crores against which the Company has preferred an appeal before the Central Excise and Service Tax Appellate Tribunal, Ahmedabad and the same is pending before CESTAT, Ahmedabad.

The Central Board of Excise and Customs vide their Circular No. 1022/10/2016/CX dated 06/04/2016 has clarified that Micronutrients are not classifiable as Plant Growth Regulators and hence are not classifiable under Chapter Heading No. 38.08 of the Central Excise Act.

Under the circumstances, and in view of legal pronouncements that the Excise Authorities cannot go beyond the Show Cause Notice, the Show Cause-Cum-Demand Notices are liable to be dropped in view of the Circular referred to above.

3. The Company has been classifying Sulphur Bentonite under Chapter Heading No. 25030090 as other forms of Sulphur. However, the Customs authorities classified Sulphur Bentonite imported under Chapter Heading No. 25030010 “as recovered byproduct in refining of crude oil”. The Additional Commissioner of Customs, Nhava Sheva confirmed the classification under Chapter Heading No. 25030010 and demanded an amount of Rs. 29.91 Lakhs, in addition penalty of like amount i.e. Rs. 29.91 Lakhs along with fine and penalty of Rs. 7.00 Lakhs each on the Chairman & Managing Director and Purchase Manager of the Company.

The Company preferred an appeal before the Commissioner, Appeals, who vide order dated 19/02/2016 while upholding the Department''s contention of classifying the product under Chapter Heading No. 25030010 set aside the fine and penalty imposed upon the Company, the Chairman & Managing Director and the Purchase Manager. The Commissioner Appeals also directed to grant benefit vide Sr. No. 60 under Notification No. 21/2002/CUS. The Company has preferred an appeal against the said order to the Customs, Central Excise and Service Tax Tribunal, Mumbai on 19/05/2016 contesting the classification of Sulphur Bentotonite under Chapter Heading No. 25030010.

23. Segmental Reporting as per Ind AS - 108

The Company has only One business Segment “ Agri Inputs “as its primary segment and hence disclosure of segment-wise information is not required under Ind AS 108 ‘Operating Segments'' notified pursuant to the Companies (Indian Accounting Standard) Rules, 2016 (as amended).

24. Events Occurring after Balance Sheet

25. The Company has acquired a vehicle in the name of the Director which is yet to be in the name of the Company. The Company has all the ownership rights and Depreciation thereon has been charged at the rates prescribed in the Schedule II to the Companies Act, 2013.

26. Previous Years figures have been regrouped and rearranged wherever necessary so as to make them comparable with the current year.

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Mar 31, 2016

1. 66,00,700 Equity Shares out of the Issued, Subscribed and Paidup Share Capital were allotted as fully paidup Bonus Shares since incorporation by capitalization of Rs. 4.90 Crores from Revaluation Reserve, Rs. 0.91 Crores from Securities Premium Account and Rs. 0.79 Crores from Statement of Profit and Loss.

2. 17,00,700 Equity Shares out of the Issued, Subscribed and Paidup Share Capital were allotted as fully paid Bonus Shares during the Financial Year 2006-07 by capitalization of Rs. 0.91 Crores from Securities Premium Account and Rs. 0.79 Crores from Statement of Profit and Loss.

3. Un-Secured Term Loans from Banks are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

4. Working Capital Facilities from Banks are secured by way of Charge on Company''s Inventory, Book Debts, Charge on Land, Building, Plant & Machinery and all other movable fixed assets of the Company and guaranteed by Directors.

5. There are no Micro and Small Enterprises to whom Company owes dues, which are outstanding for more than 45 days as at 31st March, 2016. 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.

6. Un-Secured Term Loans from Banks included in Current Maturities of Long Term Debt to the extent of Rs. 96,39,499/- are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

7. Unclaimed Dividend do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

8. Statutory Dues includes Indirect Taxes, Tax Deducted at Source, Bonus, ESIC, Provident Fund and Profession Tax.

9. The Gross Block of Fixed Assets includes Rs. 17,60,00,000/- ( Previous Year Rs. 17,60,00,000/-) on account of revaluation of Building carried out in F Y 1994-95.

10. Capital Work in Progress represents Advance for Existing Office Building renovation. On completion the Capital Work in Progress will be allocated to relavent Assets.

11. Aries Agro Care Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 5th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business in all branches of agro protection, agro care, etc. The Registered Office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043”.

12. Aries Agro Equipments Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 12th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of manufacturing, repair, etc. of all types of rural and farm equipments, machinery, etc. The Registered Office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043”.

13. Golden Harvest Middle East FZC was incorporated on 31st December, 2004 as a Free Zone Company with limited liability to carry on the activities of manufacturing Chemical Fertilizer and exporting all the necessities, material and acts related to its natural work or needed to the above mentioned works. In the year 2008 it became 75% subsidiary of the Company, Aries Agro Limited.The Registered Office of the Company is located at “ SAIF Zone ( Emirates of Sharjah )”. The said Company has no accumulated losses as at 31st March, 2016.

14. Aries Agro Produce Pvt. Ltd. has been incorporated on 20th June, 2008 as 75% owned subsidiary with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of all kinds of Farming, agriculture, horticulture etc. and to plant, grow, cultivate and in any other way deal in farming and agricultural produce. The registered office of the Company is located at “Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043”.

15. Balance with Banks includes Unclaimed Dividend of Rs. 25.59 Lacs (Previous Year Rs. 23.63 Lacs).

16. The Fixed Deposits are kept as Margin against various Credit Limits / Guarantees.

a) All the above Loans and Advances are interest free loans except Loan granted to Golden Harvest Middle East FZC through ICICI Bank Ltd, Bahrain which has been repaid during the year.

b) Receipt of the principal amount of the above loans are regular.

c) Other terms and conditions on which such loans and advances are given to the Companies are not prejudicial to the interest of the Company.

17. OPERATING LEASE COMMITMENTS ( Company is a Lessee )

The Company''s significant leasing arrangements are in respect of Operating Leases for Vehicles. These leasing arrangements which are not non-cancellable range up to 60 months generally and are renewable by mutual consent on mutually agreeable terms. The aggregate Lease Rentals payable are charged as “RENT” in Other Administrative Expenses under Note 24.

18. General description of Lease terms :

(a) Lease Rentals are charged on the basis of agreed terms.

(b) Assets are taken on Lease for a period up to 60 months.

19. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation

20. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given / Bills discounting Rs. 1,314.32 Lacs.

b) Standby letter of credit for Overseas Subsidiary Golden Harvest Middle East FZC

- Axis Bank Rs. 3,597.37 Lacs

- HDFC Bank Rs. 531.99 Lacs

Rs. 4,129.36 Lacs

b) Claims against company not acknowledged as debts Rs. 1,057.56 Lacs which includes tax dues disputed as Rs. 2.68 Lacs towards sales Tax, Rs. 249.57 Lacs towards Income Tax, Rs. 792.01 towards central excise & customs and includes Rs. 13.30 Lacs pertaining to pending suits regarding quality issue.

d) 1. The Commissioner of Central Excise, Mumbai and Hyderabad had issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients by classifying the same as Plant Growth Regulators under Chapter Heading No. 38.08 of Central Excise Act. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November, 2005 had cancelled these demands in respect of clearance up to June, 2006. The Department has preferred appeals against the said orders. The Department has also issued periodical Show Cause Notices of about Rs. 108.20 crores to the Company in respect of clearances thereafter and the Company has replied to all such notices. In view of the Orders referred to above on the pending appeals and submissions, no action has been taken.

21. Commissioner of Central Excise, Ahmedabad - II, has passed an order confirming demand of Rs.3.81 Crores on account of Central Excise duty, interest on the said amount and penalty of like amount i.e. Rs. 3.81 Crores against which the Company has preferred an appeal before the Central Excise and Service Tax Appellate Tribunal, Ahmedabad.

The Central Board of Excise and Customs vide their Circular No. 1022/10/2016/CX dated 06/04/2016 has clarified that Micronutrients are not classifiable as Plant Growth Regulators under Chapter Heading No. 38.08 of the Central Excise Act.

Under the circumstances, and in view of legal pronouncements that the Excise Authorities cannot go beyond the Show Cause Notice, the Show Cause-Cum-Demand Notices are liable to be dropped in view of the Circular referred to above.

22. The Company has been classifying Sulphur Bentonite under Chapter Heading No. 25030090 as other forms of Sulphur. However, the Customs authorities classified Sulphur Bentonite imported under Chapter Heading No. 25030010 “as recovered byproduct in refining of crude oil”. The Additional Commissioner of Customs, Nhava Sheva confirmed the classification under Chapter Heading No. 25030010 and demanded an amount of Rs. 29.91 Lakhs, in addition penalty of like amount i.e. Rs. 29.91 Lakhs along with fine and penalty of Rs.7/- Lakhs each on the Chairman & Managing Director and Purchase Manager of the Company.

The Company preferred an appeal before the Commissioner, Appeals, who vide order dated 19/02/2016 while upholding the Department''s contention of classifying the product under Chapter Heading No. 25030010 set aside the fine and penalty imposed upon the Company, the Chairman & Managing Director and the Purchase Manager. The Commissioner Appeals also directed to grant benefit vide Sr. No. 60 under Notification No. 21/2002/CUS. The Company has preferred an appeal against the said order to the Customs, Central Excise and Service Tax Tribunal, Mumbai on 19/05/2016 contesting the classification of Sulphur Bentotonite under Chapter Heading No. 25030010.

23. Segmental Reporting as per Accounting Standard - 17

The Company has only One business Segment “ Agro Inputs “as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 ‘Segmental Information'' notified pursuant to the Companies (Accounting Standard) Rules, 2006 (as amended).

24. Derivative Instrument

The Company has entered into hedging contract in respect of Interest rate on ECB Loans. The profit and loss arising on account of such hedging contract is accounted as and when payment of interest falls due.

25. The The Company has acquired a vehicle in the name of the Director which is yet to be transferred in the name of the Company. The Company has all the ownership rights and Depreciation thereon has been charged at the rates prescribed in the Schedule II to the Companies Act, 2013.

26. Previous Years figures have been regrouped wherever necessary so as to make them comparable with the current year.

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Mar 31, 2015

1. 66,00,700 Equity Shares out of the Issued, Subscribed and Paidup Share Capital were allotted as fully paidup Bonus Shares since incorporation by capitalization of Rs. 4.90 Crores from Revaluation Reserve, Rs. 0.91 Crores from Securities Premium Account and Rs. 0.79 Crores from Statement of Profit and Loss.

2. 17,00,700 Equity Shares out of the Issued, Subscribed and Paidup Share Capital were allotted as fully paid Bonus Shares during the Financial Year 2006-07 by capitalization of Rs. 0.91 Crores from Securities Premium Account and Rs. 0.79 Crores from Statement of Profit and Loss.

3. There are no Micro and Small Enterprises to whom Company owes dues, which are outstanding for more than 45 days as at 31st March, 2015. 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.

4. Working Capital Facilities from Banks are secured by way of Charge on Company's Inventory, Book Debts, Charge on Land, Building, Plant & Machinery and all other movable fixed assets of the Company and guaranteed by Directors.

5. Un-Secured Term Loans from Banks included in Current Maturities of Long Term Debt to the extent of Rs. 85,54,564/- are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

6. Unclaimed Dividend do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

7. Statutory Dues includes Indirect Taxes, Tax Deducted at Source, Bonus, ESIC, Provident Fund and Profession Tax.

8. Aries Agro Care Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 5th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business in all branches of agro protection, agro care, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

9. Aries Agro Equipments Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 12th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of manufacturing, repair, etc. of all types of rural and farm equipments, machinery, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

11. Golden Harvest Middle East FZC was incorporated on 31st December, 2004 as a Free Zone Company with limited liability to carry on the activities of manufacturing Chemical Fertilizer and exporting all the necessities, material and acts related to its natural work or needed to the above mentioned works. In the year 2008 it became 75% subsidiary of the Company, Aries Agro Limited. The Registered Office of the Company is located at " SAIF Zone ( Emirates of Sharjah )". The said Company has no accumulated losses as at 31st March, 2015.

12. Aries Agro Produce Pvt. Ltd. has been incorporated on 20th June, 2008 as 75% owned subsidiary with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of all kinds of Farming, agriculture, horticulture etc. and to plant, grow, cultivate and in any other way deal in farming and agricultural produce. The registered office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

13. Balance with Banks includes Unclaimed Dividend of Rs. 23.63 Lacs and Unclaimed Share Application Money of Rs. NIL Lacs (Previous Year Unclaimed Dividend Rs. 19.77 Lacs and Unclaimed Share Application Money Rs. 5.81 Lacs).

14. The Fixed Deposits are kept as Margin against various Credit Limits / Guarantees.

a) All the above Loans and Advances are interest free loans except Loan granted to Golden Harvest Middle East FZC.

b) Receipt of the principal amount of the above loans are regular.

c) Other terms and conditions on which such loans and advances are given to the Companies are not prejudicial to the interest of the Company.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company's policy for plan assets management.

15. The Company's significant leasing arrangements are in respect of Operating Leases for Vehicles. These leasing arrangements which are not non-cancellable range up to 60 month's generally and are renewable by mutual consent on mutually agreeable terms. The aggregate Lease Rentals payable are charged as "RENT" in Other Administrative Expenses under Note 24.

16. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

17. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given / Bills discounting Rs. 5,392.48 Lacs

b) Claims against company not acknowledged as debts Rs. 78.55 Lacs which includes tax dues disputed as Rs. 2.68 Lacs towards sales Tax Rs. 62.78 Lacs towards Income Tax and includes Rs. 13.09 Lacs pertaining to pending suits regarding quality issue.

c) The Commissioners of Central Excise, Mumbai and Hyderabad had issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands in respect of clearance up to June, 2006. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

18. Derivative Instrument

The Company has entered into hedging contract in respect of Interest rate on ECB Loans. The profit and loss arising on account of such hedging contract is accounted as and when payment of interest falls due. The Company recovers such costs from its Subsidiary and hence there is no effect on profit and loss of the Company.

19. The Company has acquired a vehicle in the name of the Director which is yet to be transferred in the name of the Company. The Company has all the ownership rights and Depreciation thereon has been charged at the rates prescribed in the Schedule II to the Companies Act, 2013.

20. Previous Years figures have been regrouped wherever necessary so as to make them comparable with the current year.

---

Mar 31, 2014

1. Corporate Information

Aries Agro Limited(''Aries'' or the ''Company'') was incorporated at Mumbai in 1969 for manufacturing of small range of mineral feed additives for animals & birds and then diversified into mineral additives for the agriculture use and currently is into business of manufacturing micronutrients and other nutritional products for plants and animals.

In January, 2007 the Company incorporated Aries Agro Care Private Limited as a Wholly Owned Subsidiary for carrying business in the Branch of agro protection, seeds etc.

In January, 2007 the Company incorporated Aries Agro Equipments Private Limited as a Wholly Owned Subsidiary for carrying business in all type of farm equipments, machinery etc.

In 2008 the Company acquired 75% Shares in Golden Harvest Middle East FZC, Sharjah, UAE, by virtue of which the said Golden Harvest Middle East FZC has become a Subsidiary of the Company. Golden Harvest Middle East FZC is in the business of manufacturing chelated micronutrients.

In June, 2008 the Company incorporated Aries Agro Produce Private Limited as a Subsidiary for carrying business in all kinds of farming etc.

In the year 2010 the Company''s Overseas Subsidiary viz M/S Golden Harvest Middle East FZC acquired 75% Shares of M/S Amarak Chemicals FZC based in Fujairah Free Zone, UAE by virtue of which M/S Amarak Chemicals FZC has become a Step Down Subsidiary of Aries Agro Limited.

Aries Agro Limited is an Indian Multinational Company that offers the widest range of products in the primary, secondary and micro- fertilizer sector, ranging from individual elements to mixed specialty plant nutrient fertilizers. Since 1969, Aries has pioneered several innovative concepts of farming to Indian agriculturists, including the wonder of Chelation Technology, bio-degradable complexes of plant nutrients, water soluble NPK fertilizers, value added secondary nutrients, natural and biological products and water treatment formulations.

2. Basis of preparation

The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards, notified by the Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention except in case of assets for which provision for impairment is made and revaluation is carried out.

3. Un-Secured Term Loans from Banks included in Current Maturities of Long Term Debt to the extent of Rs. 75,91,742/- are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

4. Unclaimed Dividend do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

5. Unclaimed Share Application Money do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

6. Statutory Dues includes Indirect Taxes, Tax Deducted at Source, Bonus, ESIC, Provident Fund and Profession Tax.

7. Other Payables includes Book Overdrafts and advance received against sale of KW.

8. Aries Agro Care Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 5th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business in all branches of agro protection, agro care, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

9. Aries Agro Equipments Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 12th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of manufacturing, repair, etc. of all types of rural and farm equipments, machinery, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

10. Golden Harvest Middle East FZC was incorporated on 31st December, 2004 as a Free Zone Company with limited liability to carry on the activities of manufacturing Chemical Fertilizer and exporting all the necessities, material and acts related to its natural work or needed to the above mentioned works. In the year 2008 it became 75% subsidiary of the Company, Aries Agro Limited. The Registered Office of the Company is located at " SAIF Zone ( Emirates of Sharjah )". The said Company has no accumulated losses as at 31st March, 2014.

11. Aries Agro Produce Pvt. Ltd. has been incorporated on 20th June, 2008 as 75% owned subsidiary with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of all kinds of Farming, agriculture, horticulture etc. and to plant, grow, cultivate and in any other way deal in farming and agricultural produce. The registered office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

12. Balance with Banks includes Unclaimed Dividend of Rs. 19.77 Lacs and Unclaimed Share Application Money of Rs. 5.81 Lacs (Previous Year Unclaimed Dividend Rs. 14.13 Lacs and Unclaimed Share Application Money Rs. 5.81 Lacs).

13. The Fixed Deposits are kept as Margin against various Credit Limits / Guarantees.

14. Fixed Deposits with Banks includes Rs. 2,30,000/- being the amount of Fixed Deposits for issue of Bank Guarantees on behalf of Subsidiaries / Associates.

15. The Company''s significant leasing arrangements are in respect of Operating Leases for Vehicles. These leasing arrangements which are not non-cancellable range upto 36 months generally and are renewable by mutual consent on mutually agreeable terms. The aggregate Lease Rentals payable are charged as "RENT" in Other Administrative Expenses under Note 24.

16. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

17. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given to Banks Rs. 4,464.20 Lacs

b) Bills discounting with Banks Rs. 1,000/- Lacs.

c) Claims against company not acknowledged as debts Rs. 87.13 Lacs which includes tax dues disputed as Rs. 2.68 Lacs towards sales Tax, Rs. 54.56 Lacs towards Income Tax and includes Rs. 29.88 Lacs pertaining to pending suits regarding quality issue.

d) The Commissioners of Central Excise, Mumbai and Hyderabad had issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands in respect of clearance upto June, 2006. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

18. Segmental Reporting as per Accounting Standard - 17

The Company has only One business Segment "Agro Inputs "as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 ''Segmental Information'' notified pursuant to the Companies (Accounting Standard) Rules, 2006 (as amended).

19. Derivative Instrument

The Company has entered into hedging contract in respect of Interest rate on ECB Loans. The profit and loss arising on account of such hedging contract is accounted as and when payment of interest falls due. The Company recovers such costs from its Subsidiary and hence there is no effect on profit and loss of the Company.

20. The Company has acquired a vehicle in the name of the Director which is yet to be transferred in the name of the Company. The Company has all the ownership rights and Depreciation thereon has been charged at the rates prescribed in the Schedule XIV to the Companies Act, 1956.

21. Previous Years figures have been regrouped wherever necessary so as to make them comparable with the current year.

---

Mar 31, 2013

1. Corporate Information

Aries Agro Limited(''Aries'' or the ''Company'') was incorporated at Mumbai in 1969 for manufacturing of small range of mineral feed additives for animals & birds and then diversifi ed into mineral additives for the agriculture use and currently is into business of manufacturing micronutrients and other nutritional products for plants and animals.

In January, 2007 the Company incorporated Aries Agro Care Private Limited as a Wholly Owned Subsidiary for carrying business in the Branch of agro protection, seeds etc.

In January, 2007 the Company incorporated Aries Agro Equipments Private Limited as a Wholly Owned Subsidiary for carrying business in all type of farm equipments, machinery etc.

In 2008 the Company acquired 75% Shares in Golden Harvest Middle East FZC, Sharjah, UAE, by virtue of which the said Golden Harvest Middle East FZC has become a Subsidiary of the Company. Golden Harvest Middle East FZC is in the business of manufacturing chelated micronutrients.

In June, 2008 the Company incorporated Aries Agro Produce Private Limited as a Subsidiary for carrying business in all kinds of farming etc.

In the year 2010 the Company''s Overseas Subsidiary viz M/S Golden Harvest Middle East FZC acquired 75% Shares of M/S Amarak Chemicals FZC based in Fujairah Free Zone, UAE by virtue of which M/S Amarak Chemicals FZC has become a Step Down Subsidiary of Aries Agro Limited.

Aries Agro Limited is an Indian Multinational Company that offers the widest range of products in the primary, secondary and micro-fertilizer sector, ranging from individual elements to mixed specialty plant nutrient fertilizers. Since 1969, Aries has pioneered several innovative concepts of farming to Indian agriculturists, including the wonder of Chelation Technology, bio-degradable complexes of plant nutrients, water soluble NPK fertilizers, value added secondary nutrients, natural and biological products and water treatment formulations.

2. Basis of preparation

i) The fi nancial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these fi nancial statements to comply in all material respects with the Accounting Standards, notifi ed by the Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The fi nancial statements have been prepared on an accrual basis and under the historical cost convention except in case of assets for which provision for impairment is made and revaluation is carried out.

ii) The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year except for change in accounting policy as explained in 2.1(A) (i) below.

3.1 General description of Lease terms :

(a) Lease Rentals are charged on the basis of agreed terms.

(b) Assets are taken on Lease for a period of 36 months.

4. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confi rmation.

5. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given to Banks Rs. 5,856.25 Lakhs

b) Bills discounting with Banks Rs. 1,000.00 Lakhs.

c) Claims against company not acknowledged as debts Rs. 88.97 Lakhs which includes tax dues disputed as Rs. 2.68 Lakhs towards sales Tax, Rs. 54.56 Lakhs towards Income Tax and includes Rs. 31.73 Lakhs pertaining to pending suits regarding quality issue.

d) The Commissioners of Central Excise, Mumbai and Hyderabad had issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands in respect of clearance upto June, 2006. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

6. Segmental Reporting as per Accounting Standard - 17

The Company has only One business Segment " Agro Inputs "as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 ''Segmental Information'' notifi ed pursuant to the Companies (Accounting Standard) Rules, 2006 (as amended).

7. Derivative Instrument

The Company has entered into hedging contract in respect of Interest rate on ECB Loans. The profi t and loss arising on account of such hedging contract is accounted as and when payment of interest falls due. The Company recovers such costs from its Subsidiary and hence there is no effect on profi t and loss of the Company.

8. Previous Years fi gures have been regrouped wherever necessary so as to make them comparable with the current year.

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Mar 31, 2012

1. Corporate Information

Aries Agro Limited('Aries' or the 'Company') was incorporated at Mumbai in 1969 for manufacturing of small range of mineral feed additives for animals & birds and then diversified into mineral additives for the agriculture use and currently is into business of manufacturing micronutrients and other nutritional products for plants and animals.

In January, 2007 the Company incorporated Aries Agro Care Private Limited as a Wholly Owned Subsidiary for carrying business in the Branches of agro protection, agro and seeds etc.

In January, 2007 the Company incorporated Aries Agro Equipments Private Limited as a Wholly Owned Subsidiary for carrying business in all type of farm equipments, machinery etc.

In 2008 the Company acquired 75% Shares in Golden Harvest Middle East FZC, Sharjah, UAE, by virtue of which the said Golden Harvest Middle East FZC has become a Subsidiary of the Company. Golden Harvest Middle East FZC is in the business of manufacturing chelated Micronutrients.

In June, 2008 the Company incorporated Aries Agro Produce Private Limited as a Subsidiary for carrying business in all kinds of farming etc.

In the year 2010 the Company's Overseas Subsidiary viz M/S Golden Harvest Middle East FZC acquired 75% Shares of M/S Amarak Chemicals FZC based in Fujairah Free Zone, UAE by virtue of which M/S Amarak Chemicals FZC has become a Step Down Subsidiary of Aries Agro Limited.

Aries Agro Limited is an Indian Multinational Company that offers the widest range of products in the primary, secondary and micro- fertilizer sector, ranging from individual elements to mixed specialty plant nutrient fertilizers. Since 1969, Aries has pioneered several innovative concepts of farming to Indian agriculturists, including the wonder of Chelation Technology, bio-degradable complexes of plant nutrients, water soluble NPK fertilizers, value added secondary nutrients, natural and biological products and water treatment formulations.

2. Basis of preparation

i) The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards, notified by the Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention except in case of assets for which provision for impairment is made and revaluation is carried out.

ii) The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year except for change in accounting policy as explained in 2.1(A) (i) below.

3.1 6,600,700 Equity Shares out of the Issued, Subscribed and Paidup Share Capital were allotted as fully paidup Bonus Shares since incorporation by capitalisation of Rs. 4.90 Crores from Revaluation Reserve, Rs. 0.91 Crores from Securities Premium Account and Rs. 0.79 Crores from the Statement of Profit and Loss.

3.2 17,00,700 Equity Shares out of the Issued, Subscribed and Paidup Share Capital were allotted as fully paid Bonus Shares in the last five years i.e.during the Financial Year 2006-07 by capitalisation of Rs. 91.46 Lacs from Securities Premium Account and Rs. 78.61 Lacs from the Statement of Profit and Loss..

4.1 Secured Term Loans from Banks referred above to the extent of :

(a) Rupees 8,900,285/- are secured by way of Charge on the Company's Motor Vehicles.

(b) Rupees 118,301,455/- is a Foreign Currency Term Loan which is secured by way of Equitable Mortgage of Land and Building and personal guarantee of Directors.

(c) Rupees 15,593,693/- are secured to Axis Bank Ltd by way of Primary Charge on all Fixed Assets at Mouje Rajpur, Gujarat and personal guarantee of Directors.

4.2 Secured Term Loans from Companies are secured by way of Charge on the Company's Motor Vehicles.

4.3 Un-Secured Term Loans from Banks are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

4.4 Maturity Profile of Secured Term Loans are as set out below :

5.1 Working Capital Facilities from Banks are secured by way of Charge on Company's Inventory, Book Debts, Charge on Land, Building, Plant & Machinery and all other movable fixed assets of the Company and guaranteed by Directors.

6.1 There are no Micro and Small Enterprises to whom Company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. 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 identifed on the basis of information available with the Company.

7.1 Current Maturities of Long Term Debt includes amount repayable within one year of :

(a) Secured Term Loans from Banks Rs. 115,905,516/-.

(b) Secured Term Loans from Companies Rs. 82,368/-.

(c) Un-Secured Term Loans from Banks Rs. 2,911,006/-.

7.2 Secured Term Loans from Banks included in Current Maturities of Long Term Debt to the extent of :

(a) Rupees 6,576,118/- are secured by way of Charge on the Company's Motor Vehicles.

(b) Rupees 105,730,854/- is a Foreign Currency Term Loan which is secured by way of Equitable Mortgage of Land and Building and personal guarantee of Directors.

(c) Rupees 3,598,544/- are secured to Axis Bank Ltd by way of Primary Charge on all Fixed Assets at Mouje Rajpur, Gujarat and personal guarantee of Directors.

7.3 Secured Term Loans from Companies included in Current Maturities of Long Term Debt to the extent of Rs. 82,368/- are secured by way of Charge on the Company's Motor Vehicles.

7.4 Un-Secured Term Loans from Banks included in Current Maturities of Long Term Debt to the extent of Rs. 2,911,006/- are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

7.5 Statutory Dues includes Indirect Taxes, Provident Fund, Employees State Insurance and Profession Tax.

7.6 Other Payables includes Book Overdrafts.

8.1 The Gross Block of Fixed Assets includes Rs. 176,000,000/- ( Previous Year Rs. 176,000,000/-) on account of revaluation of Building carried out in F Y 1994-95. Consequent to the said revaluation there is an additional charge of depreciation of Rs. 2,804,433/- ( Previous Year Rs. 2,804,433/-) and an equivalent amount has been debited to Revaluation Reserve and Credited to Accumulated Depreciation on Buildings. This has no impact on Profit or Loss for the year.

8.2 Capital Work in Progress represents Advance for Existing Office Building renovation and Expenditure incurred in connection with Project Africa and Chhatral (Gujarat). On completion the Capital Work in Progress will be allocated to relavent Assets.

9.1 Aries Agro Care Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 5th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business in all branches of agro protection, agro care, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

9.2 Aries Agro Equipments Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 12th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of manufacturing, repair, etc. of all types of rural and farm equipments, machinery, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

9.3 Golden Harvest Middle East FZC was incorporated on 31st December, 2004 as a Free Zone Company with limited liability to carry on the activities of manufacturing Chemical Fertilizer and exporting all the necessities, material and acts related to its natural work or needed to the above mentioned works. In the year 2008 it became 75% subsidiary of the Company, Aries Agro Limited.The Registered Office of the Company is located at " SAIF Zone ( Emirates of Sharjah )". The said Company has no accumulated losses as at 31st March, 2012.

9.4 Aries Agro Produce Pvt. Ltd. has been incorporated on 20th June, 2008 as 75% owned subsidiary with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of all kinds of Farming, agriculture, horticulture etc. and to plant, grow, cultivate and in any other way deal in farming and agricultural produce. The registered office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

10.1 The Fixed Deposits are kept as Margin against various Credit Limits / Guarantees.

10.2 Fixed Deposits with Banks includes Rs. 295,000/- being the amount of Fixed Deposits for issue of Bank Guarantees on behalf of Subsidiaries / Associates.

a) All the above Loans and Advances are interest free loans except Loan granted to Golden Harvest Middle East FZC.

b) Receipt of the principal amount of the above loans are regular.

c) Other terms and conditions on which such loans and advances are given to the Companies are not prejudicial to the interest of the Company.

All Employees having served from the 1st day of their employment are entitled to the benefits of the contribution to Provident Fund.

The Company contributes specified percentage of the salary paid to Employees to the Defined Fund.

Defined Benefit Plan

All Employees who have completed five years or more of service are entitled to benefits of Gratuity. The Company has the Employee's Gratuity scheme managed by Life Insurance Corporation of India which is a Defined Benefits Plan. The present value of obligation is determined based on actuarial valuation. The obligation for Leave Encashment is recognised in the same manner as Gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company's policy for plan assets management.

The Company had not provided in Leave Salary upto 31st March, 2011 of Rs. 4,482,314/-. During the current year the Company has provided the same and includes the obligations in respect of earlier year.

11.1 The Company's signifcant leasing arrangements are in respect of Operating Leases for Vehicles. These leasing arrangements which are not non-cancellable range upto 36 months generally and are renewable by mutual consent on mutually agreeable terms. The aggregate Lease Rentals payable are charged as "RENT" in Other Administrative Expenses under Note 24.

11.2 General description of Lease terms :

(a) Lease Rentals are charged on the basis of agreed terms.

(b) Assets are taken on Lease for a period of 36 months.

13. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

14. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given to Banks Rs. 4,135.11 lakhs

b) Bills discounting with Banks Rs. 1,700.76 lakhs

c) Claims against company not acknowledged as debts Rs. 86.50 lakhs which includes tax dues disputed as Rs. 5.12 lakhs towards sales Tax, Rs. 54.56 lakhs towards Income Tax and includes Rs. 25.73 lakhs pertaining to pending suits regarding quality issue.

d) The Commissioners of Central Excise, Mumbai and Hyderabad has issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands in respect of clearance upto June, 2006. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

e) Estimated amount of Contracts remaining to be executed on capital account and not provided for (Net of Advances) is Rs 697/- Lakhs.

f) Claim made under Workmen's Compensation Act by ex-contract labourer at Bangalore of Rs. 20/- Lakhs.

15. Segmental Reporting as per Accounting Standard - 17

The Company has only One business Segment " Agro Inputs "as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 'Segmental Information' notified pursuant to the Companies (Accounting Standard) Rules, 2006 (as amended).

16. Derivative Instrument

The Company has entered into hedging contract in respect of Interest rate on ECB Loans. The profit and loss arising on account of such hedging contract is accounted as and when payment of interest falls due. The Company recovers such costs from its Subsidiary and hence there is no effect on profit and loss of the Company.

17. Previous years figures have been regrouped wherever necessary so as to make them comparable with the current year.

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Mar 31, 2011

1. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confrmation.

2. Gratuity

The Company has opted for Life Insurance Corporation of India's group gratuity scheme for its employees. The scheme offered by the Life Insurance Corporation of India permits the company for payment of arrears in five yearly installments commencing from 1st December, 2005. The total contribution payable including arrears as per life insurance corporation of india as on 31/03/11 is Rs 33,881,684/-. During the year the company has paid Rs 17,807,357/- (Previous year Rs 3,879,534/-) towards gratuity fund. The unprovided liability as on 31/03/2011 is Rs Nil/- ( Previous year Rs Nil ). The details of contribution to gratuity fund are as under:

a) Present value of obligations as on 31/03/2011 is Rs 33,881,684/ (Previous Year Rs 25,900,077/-).

b) Fair value of plan assets as on 31/03/2011 is Rs 26,826,802/- (Previous Year Rs 9,850,079/-).

c) Provisions made (fully) as on 31/03/2011 is Rs 7,054,882/- (Previous Year Rs 16,049,998/-).

3. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given to Banks Rs 5,715.01 lakhs

b) Bills discounting with Banks Rs 2,214.05 lakhs

c) Claims against company not acknowledged as debts Rs 86.50 lakhs which includes tax dues disputed as Rs 5.12 lakhs towards sales Tax, Rs 54.56 lakhs towards Income Tax and includes Rs 25.73 lakhs pertaining to pending suits regarding quality issue.

d) The Commissioners of Central Excise, Mumbai and Hyderabad has issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands in respect of clearance upto June, 2006. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

e) Estimated amount of Contracts remaining to be executed on capital account and not provided for (Net of Advances) is Rs 140 Lacs.

4. Income Tax

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred Tax Assets and Liabilities are recognized for the future tax consequences attributable to timing differences that result between the profit offered for Income Tax and profit as per financial statements.

Deferred Tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted on the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date.

Assumption:

All the expenses claimed (but allowable on the condition of payment U/s 43B) will be paid on or before "due date".

5. Segmental Reporting as per Accounting Standard - 17

The Company has only One Reportable Segment in terms of Accounting Standard 17 issued by ICAI

6. Remuneration to Directors

Remuneration paid to Chairman & Managing Director and Executive Director is within the limits laid down under Schedule XIII to the Companies Act, 1956 and included in the profit and Loss Account, as Directors Remuneration.

7. Micro and Small Scale Business Entities

There are no micro and small Enterprises to whom 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 identifed on the basis of information available with the company.

8. (A) Additional information required under Part II of Schedule VI of the Companies Act, 1956 is as under:

(As certifed by the management and relied upon by the Auditor)

Licensed Capacity : Not Applicable

Installed Capacity : 84,600 Metric Tonnes

(84,600 Metric Tonnes)

(B) Actual Production : 39,577 Metric Tonnes

(35,647 Metric Tonnes)

9. Term Loans from HDFC (classifed as unsecured) is secured against the personal assets of the directors.

10. Management Fees receivables on management of Farmer's Loan from HDFC Bank will be accounted for on raising of invoices / accrual basis.

11. Loans & Advances includes the Custom Duty Refund awaited Rs 2,493,152/-.

12. Margin for Bank Guarantees includes 295,000/- being the amount of Fixed Deposits for issue of Bank Guarantees on behalf of Subsidiaries / Associates.

13. Previous years fgures have been regrouped wherever necessary so as to make them comparable with the current year.

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Mar 31, 2010

1. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

2. Gratuity

The Company has opted for Life insurance corporation of india’s group gratuity scheme for its employees. The scheme offered by the life insurance corporation of india permits the company for payment of arrears in five yearly installments commencing from 1st December, 2005. The total contribution payable including arrears as per life insurance corporation of india as on 31/03/2010 is Rs. 25,900,077/-. During the year the company has paid Rs 3,879,534/- (Previous year Rs.1,037,662/-) towards gratuity fund. The unprovided liability as on 31/03/2010 is Rs.Nil (Previous year Rs. 13,211,626/-). The details of contribution to gratuity fund are as under:

a) Present value of obligations as on 31/03/2010 is Rs. 25,900,077/-.

b) Fair value of plan assets as on 31/03/2010 is Rs. 9,850,079/-.

c) Provisions made (fully) as on 31/03/2010 is Rs. 16,049,998/-.

3. Leave Encashment

As per the policy of the company, only managerial staff is entitled to encash their annual leave. The same is accounted for on cash basis. The liability is unascertainable.

4. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantee Rs. 634.90 lakhs

b) Claims against company not acknowledged as debts Rs. 51.84 lakhs which includes tax dues disputed as Rs 10.51 lakhs towards sales Tax, Rs. 14.73 lakhs towards Income Tax and includes Rs. 25.51 lakhs pertaining to pending suits regarding quality issue.

c) The Commissioners of Central Excise, Mumbai and Hyderabad had issued Show Cause-Cum- Demand Notices for levy of Excise Duty on clearances of Micronutrients amounting to Rs.8.02 Crores. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

d) Estimated amount of Contracts remaining to be executed on capital account and not provided for (Net of Advances) is Rs 420.38 Lakhs.

5. Income Tax

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred Tax Assets and Liabilities are recognized for the future tax consequences attributable to timing differences that result between the profit offered for Income Tax and profit as per financial statements.

Deferred Tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted on the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date.

6. Outstanding Dues of SSI Units

The Company has no information as to whether any of its suppliers constitute small scale/ancillary undertakings and therefore the claims from suppliers and other related data under the “Interest on Delayed Payments to Small and Ancillary unit Act, 1993 “ could not be ascertained.

7. (A) Additional information required under Part II of Schedule VI of the Companies Act, 1956 is as under:

(As certified by the management and relied upon by the Auditor)

Licensed Capacity : Not Applicable

Installed Capacity : 84,600 Metric Tonnes

(84,600 Metric Tonnes)

(B) Actual Production : 35,647 Metric Tonnes

(16,907 Metric Tonnes)

8. Term Loans from HDFC (classified as unsecured) is secured against the personal assets of the directors.

9. Loans & Advances includes the Custom Duty Refund awaited Rs. 2,493,152/-.

10. Margin for Bank Guarantees includes Rs. 2.95 Lacs being the amount of Fixed Deposits for issue of Bank Guarantees on behalf of Subsidiaries / Associates.

11. Previous years figures have been regrouped wherever necessary so as to make them comparable with the current year.