Notes to Accounts of Ashiana Agro Industries Ltd.

Mar 31, 2015

1. The rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital

The company has one class of equity shares having par value of Rs.10 per share and one class of preference shares(not yet issued & subscribed). Each holder of the equity share is entitled to vote. The dividend, if any, proposed by the board is subject to the approval ofthe shareholders in ensuring Annual General Meeting.

In the event of liquidation of the company, the holder of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2013

1. The Company has given unsecured loan of Rs.2,27,00,000 in September 2009 to M/s Diadem Enterprises Private Limited and this is in excess of the limit prescribed in Section 372A of the Companies Act, 1956. Since this is a non compliance to the requirements of section 372A, it has no specific effect in the financial statements.

AS -1: Disclosure of accounting policies

The accounts are prepared on accrual basis as a going concern. But since the company has sold entire Plant & machinery and other ancillary equipments pertaining to its edible vegetable oil refinery plant and has not manufactured any product for the past 3 financial years, the company''s ability to continue as a going concern is doubted in the foreseeable future.

AS -2: Valuation of Inventories

The Company does not deal with inventories.

AS - 3: Cash flow Statements

The Company has complied with AS-3 and prepared Cash flow statements, as attached in Annexure I.

AS - 4: Events occurring after the Balance Sheet Date

No significant event has occurred after the Balance Sheet Date.

AS - 5: Net profit or loss for the period, prior period items and changes in accounting policies:

No change in accounting polices during the year.

AS - 6: Depreciation Accounting

Depreciation is provided on Straight Line Method, at the rates specified in Schedule XIV to the Companies Act, 1956.

AS- 7: Construction Contracts

This Accounting Standard is not applicable.

AS - 8: Research & Development

This Accounting Standard has been withdrawn.

AS - 9: Revenue Recognition

Income from Loan Interest and Fixed deposit Interest is accounted as they are accrued.

AS -10: Accounting for Fixed Assets

Fixed assets are valued at cost including expenditure incurred in bringing them to usable condition less depreciation.

AS - 11: Accounting for effects of changes in foreign exchange rates

No Forex transactions in the current year.

AS -12: Accounting for Government Grants

The Company has not received any grants.

AS -13: Accounting for Investments

The company has not made any investments during the current year and does not have any investments as on 31.03.2013

AS - 14: Accounting for amalgamations

No amalgamation during the year.

AS -15: Accounting for Employee Benefits

This accounting standard is applicable and the same is followed in an consistent manner.

AS -16: Borrowing Cost

During the year, the Company has not dealt with any borrowings.

AS - 17: Segment reporting

(a) Business segment: The Company has considered business segment as the primary segment for disclosure. As reported the Company has sold its entire plant & machinery and other ancillary equipments pertaining to its edible vegetable oil refinery plant, The Company has not undertaken manufacturing activity during the year. The Company is presently engaged in financing activity. The Company is in the process of identifying new trading business venture. Hence there is no distinguishable component of any product or services that can be report.

(b) Geographical Segment: The conditions prevailing in India being uniform, no separate geographical segment disclosure is considered necessary.

As - 22: Accounting for taxes on Income

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s). On evaluation of reasonable certainty and as per the AS -22, deferred tax liabilities / assets are nil as the company believes that such liabilities / assets are not likely to be reversed in the future years.

AS -23: Accounting for investments in associates

This standard is not applicable to the Company.

AS-24: Discontinuing Operation

During the year the Company has not discontinued any of its operations.

AS - 25: Interim Financial Reporting

This standard is not applicable to the Company.

AS - 26: Accounting for Intangible Assets

This standard is not applicable to the company.

AS - 27: Financial reporting of interests in Joint Venture

This standard is not applicable to the Company.

AS - 28: Impairment of Assets

As on the Balance Sheet date, the carrying amounts of the assets are considered not less than the recoverable amount of those

assets. Hence, no impairment loss is considered.

AS - 29: Provisions, Contingent Liabilities and Contingent Assets

No contingent Liabilities or assets exists for the company.

Other Notes to Accounts

a) The Company has extended an unsecured loan to Daidem Enterprises Private Limited for Rs. 2,27,00,000 at an interest rate of 10 % . TDS is deducted on such interest received. There is no loan agreement for the loan given to M/s Diadem Enterprises Private Limited, but there are various communications with M/s Diadem Enterprises Private Limited to confirm the loan.

b) Lending money with or without interest or security to any person as is specified in the Memorandum of Association under the ancillary objects clause and not under the main objects clause.

c) The Company has sold its entire plant & machinery and other ancillary equipments pertaining to its edible vegetable oil refinery plant. The Company has not undertaken manufacturing activity during the year and hence additional information pursuant to part II of Schedule VI to the Companies Act are not applicable to the Company.

d) The accounts have been prepared on going concern assumption. However in view of the sale of entire plant & machinery, other ancillary equipments pertaining to its edible vegetable oil refinery plant and land & building, the company has not undertaken manufacturing activity during the year. The company has so far not made any plans to replace the fixed assets that have been sold. These factors raise substantial doubt about the companies ability to continue as a going concern in the foreseeable future.

f) As per the information available with the Company, there is no amount due to the Enterprises mentioned in the Micro Small Medium Enterprises Development Act, 2006 as on the date of Balance Sheet.

g) Previous year''s figures have been regrouped wherever necessary to conform to current year''s classification.

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Mar 31, 2012

1. Payments to Auditors : 2011-2012 2010-2011 Audit fees (including service tax) 16,836 16,836

2. Payments against supplies from small scale and ancillary undertakings have been made in accordance with the agreed credit terms and to the extent ascertainable from available information, there was no amount overdue as on 31st March, 2012 in this regard.

3. In the opinion of the Board of Directors all the current assets, loans & advances have value on realization at least of an amount equal to the amount at which they are stated in the Balance Sheet.

4. The Company has sold its entire Plant & Machinery and other ancillary equipments. The Company has not undertaken any manufacturing activities during the year. Since no manufacturing activities had been undertaken, additional information's pursuant to the Part- II of Schedule VI to the Companies Act, 1956 are not applicable to the Company.

5. The Accounts have been prepared on the going concern assumption. However, in view of the sale of entire Plant & Machinery, other ancillary equipment's pertaining to its edible vegetable oil refinery plant and land & building during earlier year and company has been left with no manufacturing activities. The company has so far not made any plans to replace the fixed assets that have been sold. These factors raise substantial doubt about the company's ability to continue as a going concern in the foreseeable future.

6. Segment Reporting :

(a) Business Segment: The Company has considered business segment as the primary segment for disclosure. As reported above the Company has sold its entire Plant & Machinery and other ancillary equipment's pertaining to its edible vegetable oil refinery plant. The Company has not undertaken any manufacturing activities during the year. The Company is presently primarily engaged in financing activities, i.e. investing its surplus funds pending its final decision of starting any new business venture. Hence there is no distinguishable component of any product or services that can be reported. Interest generated on loans & advances given during the year, which in the context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India can be considered the only business Segment.

(b) Geographical Segment: The Conditions prevailing in India being uniform, no separate geographical segment disclosure is considered necessary.

7. Deferred Tax :

In compliance with the Accounting Standard-22 " Accounting for taxes on income "issued by the Institute of Chartered Accountants of India, which has become mandatory. The Company has not created deferred tax liabilities /assets since it believes that such liabilities / assets are not likely to be reversed in future years.

8. Related Part Disclosure :

Information relating to Related Party Transaction as per Accounting Standard –18 issued by the Institute of Chartered Accountants of India is given below:

A.Name of the Related Party Relationship

Serengeti Holdings Private Limited. Associate Company

Mr. Radesh Rangarajan Director

Mr. Pavan Kr. Reddy Whole Time Director

Mr. Nirmal Kumar Das Director

Mr. Shankar Venkatakrishnan Additional Director

B. Transactions during the year

Name of the Related Party Nature of Transaction

Mr. Radesh Rangarajan 1,250.00 Sitting Fees

Mr. Pavan Kumar Reddy 6,45,000.00 Salary & Allowance

1,750.00 Sitting Fees

Mr. Nirmal Kumar Das 1,750.00 Sitting Fees

Mr. Shankar Venkatakrishnan 1,250.00 Sitting Fees

9. Previous year's figures have been re-grouped wherever necessary

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Mar 31, 2010

1. Payments against supplies from small scale and ancillary undertakings have been made in accordance with the agreed credit terms and to the extent ascertainable from available information, there was no amount overdue as on 31st March, 2010 in this regard.

2. In the opinion of the Board of Directors all the current assets, loans & advances have value on realization at least of an amount equal to the amount at which they are stated in the Balance Sheet.

3. The Company has sold its entire Plant & Machinery and other ancillary equipments. The Company has not undertaken any manufacturing activities during the year. Since no manufacturing activities had been undertaken, additional informations pursuant to the paragraphs 3 and 4 of Part- II of Schedule VI to the Companies Act, 1956 are not applicable to the Company.

4. The Accounts have been prepared on the going concern assumption. However, in view of the sale of entire Plant & Machinery, other ancillary equipments pertaining to its edible vegetable oil refinery plant and land & building during earlier year and company has been left with no manufacturing activities. The company has so far not made any plans to replace the fixed assets that have been sold. These factors raise substantial doubt about the companys ability to continue as a going concern in the foreseeable future.

5. Segment Reporting :

(a) Business Segment: The Company has considered business segment as the primary segment for disclosure. As reported above the Company has sold its entire Plant & Machinery and other ancillary equipments pertaining to its edible vegetable oil refinery plant. The Company has not undertaken any manufacturing activities during the year. The Company is presently primarily engaged in financing activities, i.e. investing its surplus funds pending its final decision of starting any new business venture. Hence there is no distinguishable component of any product or services that can be reported. Interest generated on loans & advances given during the year, which in the context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India can be considered the only business Segment.

(b) Geographical Segment: The Conditions prevailing in India being uniform, no separate geographical segment disclosure is considered necessary.

6. Deferred Tax :

In compliance with the Accounting Standard-22" Accounting for taxes on income "issued by the Institute of Chartered Accountants of India, which has become mandatory. The Company has not created deferred tax liabilities /assets since it believes that such liabilities / assets are not likely to be reversed in future years.

7. Related Part Disclosure :

Information relating to Related Party Transaction as per Accounting Standard-18 issued by the Institute of Chartered Accountants of India is given below:

A. Name of the Related Party Relationship

Serengeti Holdings Private Limited. Associate Company

Mr. Radesh Rangarajan Director

Mr. Pavan Kr. Reddy Director

Mr. Nirmal Kumar Das Director

8. Previous years figures have been re-grouped wherever necessary.