Notes to Accounts of Evexia Lifecare Ltd.

Mar 31, 2024

N. Provisions and Contingencies:

a) Provisions are recognized based on the best estimate of probable outflow of resources which would be required to settle obligations arising out of past events.

b) Contingent liabilities not provided for as per (a) above are disclosed in notes forming part of the Financial Statements If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

c) Contingent Assets are disclosed, where the inflow of economic benefits is probable.

O. Earnings per Share:

a) Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding during the period.

b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

P. Leases:

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

(A) Lease Liability

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments shall be discounted using incremental borrowing rate.

(B) Right-of-use assets

Initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives.

Subsequent measurement

(A) Lease Liability

Company measure the lease liability by (a) increasing the carrying amount to reflect interest on the lease liability; (b) reducing the carrying amount to reflect the lease payments made; and (c) remeasuring the carrying amount to reflect any reassessment or lease modifications.

(B) Right-of-use assets

Subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated from the commencement date on a straight line basis over the shorter of the lease term and useful life of the under lying asset.

Impairment

Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

Short term Lease

Short term lease is that, at the commencement date, has a lease term of 12 months or less. A lease that contains a purchase option is not a short-term lease. If the company elected to apply short term lease, the lessee shall recognise the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis. The lessee shall apply another systematic basis if that basis is more representative of the pattern of the lessee''s benefit.

As a lessor

Leases for which the company is a lessor is classified as a finance or operating lease. Whenever, the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

Lease income is recognised in the statement of profit and loss on straight line basis over the lease term.

Q. Exceptional items:

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements.

2. USE OF JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

While preparing financial statements in conformity with Ind AS, the management has made certain estimates and assumptions that require subjective and complex judgments. These judgments affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses, disclosure of contingent liabilities at the statement of financial position date and the reported amount of income and expenses for the reporting period. Financial reporting results rely on the management estimate of the effect of certain matters that are inherently uncertain. Future events rarely develop exactly as forecasted and the best estimates require adjustments, as actual results may differ from these estimates under different assumptions or conditions. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively.

Judgment, estimates and assumptions are required in particular for:

a) Determination of the estimated useful life of tangible assets

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 are different from that prescribed in Schedule II, they are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers'' warranties and maintenance support.

b) Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations. Due to complexities involved in the valuation and its long-term nature, defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting period.

c) Recognition of deferred tax liabilities

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carryforwards and tax credits. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carryforwards and unused tax credits could be utilized.

d) Discounting of financial assets / liabilities

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

As per records of the company, including its register of Shareholders / Members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

Rights as to Dividend

The Equity shareholders have right dividend when declared by the Board of Directors subject to approval in the ensuing Annual General Meeting.

Right pertaining to repayment of Capital

In the event of liquidation of the company, the holders of equity share will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be according to the shareholders rights and interest in the company.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis.

35 IMPAIRMENT

. The Company has not found any indication of impairment of the assets as per Ind AS 38 and accordingly no further exercise for calculating impairment loss has been undertaken.

36 FINANCIAL RISK MANAGEMENT

The company''s activities expose it to market risk, liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company''s risk management established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company''s activities. The Company, through its training, standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

(i) Trade receivables

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. However, based on historical data, there were no significant bad debts written off nor provision for doubful debts had been created. In determination of allowances for credit losses on trade receivables, the Company has used a practical expedience by computing the expected credit losses based on ageing matrix, which has taken into account historical credit loss experience and adjusted for forward looking information.

(ii) Cash and cash equivalents

As at the year end, the Company held cash and cash equivalents of '' 38.80 Lakhs (31.03.2023''7.21 Lakhs). The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

(iii) Loans and advances

In the case of loans to employees, the same is managed by establishing limits. (Which in turn based on the employees salaries and number of years of service put in by the concern employee)

(iv) Other Financials Assets

Others Financial Assets are considered to be of good quality and there is no significant increase in credit risk.

(B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are not exposed to market risk primarily related to foreign exchange rate risk.

(D) CAPITAL MANAGEMENT

For the purpose of Company''s Capital Management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the share holders and make adjustments to it in light of changes in economic conditions or its business requirements. The Company''s objective is to safe guard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to share holders through continuing growth and maximise the shareholders value. The Company funds its operations through internal accruals and long term borrowings competitive rate. The Management and Board of Directors monitor the return of capital as well as the level of dividend to share holders.

37 Employee benefits

[a] Defined benefit plan:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.The scheme is funded. The following tables summaries the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity plan.

40 Disclosures related to the Micro, Small and Medium Enterprises.

The Company has not received information from vendors regarding their status under the Micro, Small & Medium Enterprises Development Act,2006 and hence disclosure relating to amount unpaid at the year end together with interest paid/paybale under the Act have not been given.

41 Segment Reporting

Ind AS 108 Operating Segments requires Management to determine the reportable segments for the purpose of disclosure in financial statements based on the internal reporting reviewed by Chief Operating Decision Maker (CODM) to assess performance and allocate resources.

Operating segments are defined as ''Business Units'' of the Company about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker or decision making group in deciding how to allocate resources and in assessing performance.

The Comapany operate in Trading of Chemical products segment. The management considers that these business units have similar economic characteristic nature of the product, nature of the regulatory environment etc. Based on the management analysis, the Company has only one operating segment, so no seperate segment report is given. The principle geographical areas in which company the Company operates is India.

43 The Company has granted Interest free loans to associates concern and others of INR 4480.13 Lakhs, the terms and conditions including repayment thereof have not been stipulated by the Company., out of them Loans receivables of INR 1470.96 lakhs, which have significant increase in credit risk, in respect of which the Company has not made any assessment for expected credit loss, in accordance with the requirements of ''Ind AS 109: Financial instruments'', as the management considers such balances as good and recoverable in future. In the absence of such assessment for expected credit loss by the Management and any other evidence to corroborate the Management''s assessment, we are unable to comment on the recoverability of these balances and the consequent impact, if any, on the provision thereon and the loss reported in the financial results.

44 The Company has Trade Receivable amounting to INR 4164.51/- , the same are pertains to the outstanding for more than one and two years which have significant increase in credit risk, in respect of which the Company has not made any assessment for expected credit loss, in accordance with the requirements of ''Ind AS 109: Financial instruments'', as the management considers such balances as good and recoverable in future. In the absence of such assessment for expected credit loss by the Management and any other evidence to corroborate the Management''s assessment, we are unable to comment on the recoverability of these balances and the consequent impact, if any, on the provision thereon and the loss reported in the financial results.

45 The company has made investments in unquoted equity shares of the companies amounting to INR 87.39/- Lakhs for which company is unable to determine fair valuation of its investments.

46 As of 31st March, 2024 company has exposure to its subisdiary âKavit Edible Oil Limitedâ of Rs.119.22 Lakhs towards investment 6 in Equity and Unsecured Loan. âKavit Edible Oil Limitedâ has suspended its manufacturing operations in March, 2019 and has negative networth as of 31st March, 2024. These conditions raised substantial doubt about its ability as going concern.

47 Confirmation of parties for amount due from them as per accounts of the Company are not obtained. Amount due from customers include amounts due / with held on account of various claims. The Claims will be verified and necessary adjustments, if any, shall be made in the year of settlement. Subject to this, company is confident of recovering the dues and accordingly they have been classified as âdebt considered goodâ and therefore no provision is considered necessary there against.

48 The Company has not recognised the financial liabilities of Foreign Currency Convertible Bonds amounting to INR 68,836.11/- Lacs at amortised cost as per the Ind AS 109 Financial instruments. Had this amortisation is followed as per Ind AS 109, Profit after tax for the year and consequently Retained Earnings as at 31st March 2024 would have been lower by INR 3882.52/- Lakhs.

49 The Company has not restated its financial liablities of Foreign Currency Convertible Bonds as per Ind AS 21 âThe Effects of Changes in Foreign Exchange Ratesâ. Had this restatement was done as per Ind AS 21, Profit after tax for the Year and consequently Retained Earnings as at March 31st, 2024, would have been lower by Rs.1171.82/-Lakhs.

50 The company has recognised revenue for Designing & installation of Solar Rs. 150.00/- Lakhs,But the corresponding expenses for the project is not accounted for the year ended March 31, 2024. The Management has not recieved the details of invoices from sub-Contractor.

51 In case of Loans granted by the Company and loans taken by the Company, the terms of repayment has not been specified and hence it falls under the repayable on demand. On the basis of the same we have classified the entire Borrowings as Current Liabilities and Loans as Current Assets.

52 In the opinion of the Board of Directors, Current Assets, Loans & Advances have value at which they are stated in the Balance Sheet, if realized in the ordinary course of business. The provision for depreciation and for all know liabilities is adequate and not in excess of the amount reasonably necessary.

53 The Company do not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

54 Relationship with Struck off companies

Where the company has any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the following details, namely

55 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

56 The Company have not traded or invested in Crypto currency or Virtual Currency during the year.

57 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

58 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

60 The company holds all the title deeds of immovable property in its name.

61 There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

62 The company is notdeclared as wilful defaulter by any bank or financial Institution or other lender.

63 The Previous year''s figures, wherever necessary, have been regrouped/reclassified to conform to the current year''s presentation.

As per our report of even date For and on behalf of the Board of Directors

Evexia Lifecare Limited

For Tejas K Soni & Company Jayesh Thakkar Kartik Mistry

Chartered Accountants Managing Director Director

Firm Registration No: 135093W DIN : 01631093 DIN: 07791008

Proprietor (Tejas Soni) Bhavin Desai

Membership No.: 150418 Chief Financial Officer

UDIN : 24150418BKAIZX1177

Place :Vadodara

Date : 06th May, 2024

Mar 31, 2023

The Company has only one class of equity shares having a par value of Rs. 1 per share. Each holder of equity shares is entitled!) one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

Pursuant to the approval of the shareholders at the Extra Ordinary Annual General Meeting of the Company held on April 11,2022 each!quity share of face value of Rs. 2/- per share was sub-divided into two equity shares of face value of Re. 1/- per share, with effect from the record date.

Pursuant to the approval of the shareholders at the Extra Ordinary Annual General Meeting of the Company held

on April 11,2022 , Increase the Authorized share capital of the company from Rs.66,45,00,000/-divided into 33,22,50,000/-

Equity shares of Rs 2/- each to Rs.86,45,00,000/-divided into 86,45,00,000 Equity Shares of 1/- each.

Pursuant to the applicable provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and pursuant to receipt of notice for conversion of FCCBs, for a principle value USD 11,00,000,(11 Bonds @1,00,000 USD) the Company during the current financial year, issued and allotted 4,51,00,000 (Four Crore Fifty One Lakhs ) Fully Paid Equity shares of face value INR 1/-each, at a conversion price of INR 2 /-each (including a premium of INR 1/-each) per Equity Share for 4,51,00,000 Equity Shares under FCCB.

14.3 Terms/ right attached to equity shares

The Company has only one class of equity shares of par value of ^ 1 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

Rights as to Dividend

The Equity shareholders have right dividend when declared by the Board of Directors subject to approval in the ensuring Annual General Meeting.

Right pertaining to repayment of Capital

Pursuant to the approval of the Management Committee of the Board of Directors dated 29th April 2022, the Company has issued 1.50% Listed FCCBs of USD 1000/- Lakhs to GLobal Focus Fund (Republic of Mauritius) Regulated by Financial Service Commission, Mauritius as on 3rd February 2023, with a maturity period of 37 Months which has outstanding amount 68,887.47 Lakhs (March 2022 : Nil Lakhs). The subscriber can exercise the conversion option at any time on or after 1 Week from the date of issue and up to the maturity date. Interest is payable on annual basis. The Price at which shares will be issued upon Conversion of the bonds (the"Conversion Price") will be at a price Calculated as per the 6 Months Average or 15 Days Average ,Whichever is higher in line with euity issue price Guidelines for new Allotment of equity shares Defined by Securities Exchange board of india (SEBI). conversion of FCCBs, for a principle value USD 11,00,000,(11 Bonds @1,00,000 USD) the Company during the current financial year, issued and allotted 4,51,00,000 (Four Crore Fifty One Lakh ) Fully Paid Equity shares of face value INR 1/- each, at a conversion price of INR 2 /-each (including a premium of INR 1/-each) per Equity Share for 4,51,00,000 Equity Shares under FCCB.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation

techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If

all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis.

All of the resulting fair value estimates are included in level 1 or 2 except for unlisted equity securities where the fair values have been determined based on present values and the discount rates used were adjusted for counter party or own credit risk.

The carrying amounts of trade receivables, electricity deposit, employee advances, cash and cash equivalents and other short term receivables, trade payables, unclaimed dividend, borrowings, and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

(A)	Contingent Liabilities and Capital Commitments		t in Lakhs
	Particulars	As at 31 March,	As at 31 March,
	Particulars	2023	2022
	(a) Contingent Liabilities (i) Claims against the Company not acknowledge as debts (on account
	of outstanding law suits) (ii) Guarantees given by Banks to third parties on behalf of the company (b) No provision has been made for following demands raised by the authorities since the company has reason to believe that it would get relief at the appellate stage as the said demand are excessive and erroneous
	(i) Disputed Income Tax Liability	2,218.24	2,183.83
	(ii) Disputed VAT Tax Liability* *Against Which amount already paid As at March 31, 2023 ^ 26.15 lakhs (As at March 31, 2022 ^ 26.15 Lakhs)	270.98	270.98
	(c) Commitments Estimated amount of contracts remaining to be executed on capital account & not provided for (Net of Advances)	-	-

36 FINANCIAL RISK MANAGEMENT

The company''s activities expose it to market risk, liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

(A) Credit risk

(i) Trade receivables

(ii) Cash and cash equivalents

As at the year end, the Company held cash and cash equivalents of ^ 7.21 Lakhs (31.03.2022 ^112.52 Lakhs). The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

(iii) Loans and advances

In the case of loans to employees, the same is managed by establishing limits. (Which in turn based on the employees salaries and number of years of service put in by the concern employee)

(iv) Other Financials Assets

Others Financial Assets are considered to be of good quality and there is no significant increase in credit risk.

(B) Liquidity risk

Maturities of financial liabilities

The tables herewith analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(D) CAPITAL MANAGEMENT

37 Employee benefits

[a] Defined benefit plan:

Note 1: Discount rate is determinied by reference to market yields at the balance sheet date on Government bonds, where the currency and terms of the Government bonds are consistent with the currency and estimated terms for the benefit obligation.

Note 2: The estimate of future salary increases taken into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Note 3: The gratuity provision as described above is not invested or funded in any Investments options.

40 Disclosures related to the Micro, Small and Medium Enterprises.

41 Segment Reporting

43 The Company has granted Interest free loans to associates concern and others of INR 4156.85 Lakhs, the terms and conditions including repayment thereof have not been stipulated by the Company., out of them Loans receivables of INR 1449.32 lakhs, which have significant increase in credit risk, in respect of which the Company has not made any assessment for expected credit loss, in accordance with the requirements of ''Ind AS 109: Financial instruments'', as the management considers such balances as good and recoverable in future. In the absence of such assessment for expected credit loss by the Management and any other evidence to corroborate the Management''s assessment, we are unable to comment on the recoverability of these balances and the consequent impact, if any, on the provision thereon and the loss reported in the financial results.

44 The Company has Trade Receivable amounting to INR 4301.85/-, the same are pertains to the outstanding for more than one and two years. The Company has not either created and ECL provision or impaired the balances of these Trade Receivables in accordance with the requirements of ''Ind AS 109: Financial instruments'', as the management considers such balances as good and recoverable in future.

45 The company has made investments in unquoted equity shares of the companies amounting to INR 87.39/-Lakhs for which company is unable to determine fair valuation of its investments.

46 As of 31st March, 2023 company has exposure to its subisdiary "Kavit Edible Oil Limited" of Rs.123.98 Lakhs towards investment 6 in Equity and Unsccurcd Loan. âKavit Edible Oil Limited" has suspended its manufacturing operations in March, 2019 and has negative networth as of 31st March, 2023. These conditions raised substantial doubt about its ability as going concern.

47 Confirmation of parties for amount due from them as per accounts of the Company are not obtained. Amount due from customers include amounts due / with held on account of various claims. The Claims will be verified and necessary adjustments, if any, shall be made in the year of settlement. Subject to this, company is confident of recovering the dues and accordingly they have been classified as "debt considered good" and therefore no provision is considered necessary there against.

48 The Company has not recognised the financial liabilities of Foreign Currency Convertible Bonds amounting to INR 68,887.47 Lacs atamortised cost as per the Ind AS 109 Financial instruments. Had this amortisation is followed as per Ind AS 109, Profit after tax for the year and consequently Retained Earnings as at 31st March 2023 would have been lower by INR 5.85 Lakhs.

49 In case of Loans granted by the Company and loans taken by the Company, the terms of repayment has not been specified and hence it falls under the repayable on demand. On the basis of the same we have classified the entire Borrowings as Current Liabilities and Loans as Current Assets.

50 In the opinion of the Board of Directors, Current Assets, Loans & Advances have value at which they are stated in the Balance Sheet, if realized in the ordinary course of business. The provision for depreciation and for all know liabilities is adequate and not in excess of the amount reasonably necessary.

51 The Company do not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

52 Relationship with Struck off companies

53 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

54 The Company have not traded or invested in Crypto currency or Virtual Currency during the year.

55 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

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

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

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

58 The company holds all the title deeds of immovable property in its name.

59 There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

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

61 The Previous year''s figures, wherever necessary, have been regrouped/reclassified to conform to the current year''s presentation.

Mar 31, 2021

* In the year 2014-2015, the Company has increased its authorised capital to ? 4650 Lakhs and made allotment of shares at premium of ? 5 per shares. The Company in its Annual General Meeting dated 25th September 2015 increased authorised capital from ? 4650 Laksh to ? 6645 Lakhs but the same is not being implemented by filling form SH - 7 (form for Increase in Authorised Capital) with ROC. Moreover, the Company has issued Bonus Shares of ? 15.48 Lakhs during the year 2015-2016 resultantly, the paid up capital of the Company increased to ? 6193 Lakhs but authorised capital is remained the same. The Company is in the process of filling the Form and rectifying the difference in the Authorised capital and paid up capital. The stamp duty and late filling fees would be amounting Rs. 30 Lakhs which the Company has not provided for the same in the Books of Account.

15.3 Terms/ right attached to equity shares

The Company has only one class of equity shares of par value of ? 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

Rights as to Dividend

The Equity shareholders have right dividend when declared by the Board of Directors subject to approval in the ensuring Annual General Meeting.

Right pertaining to repayment of Capital

Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

IMPAIRMENT

The Company has not found any indication of impairment of the assets as per Ind AS 38 and accordingly no further exercise for calculating impairment loss has been undertaken.

Fair value hierarchy

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis.

37 FINANCIAL RISK MANAGEMENT

The company''s activities expose it to market risk, liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

(A) Credit risk

(i) Trade receivables

(ii) Cash and cash equivalents

As at the year end, the Company held cash and cash equivalents of ? 22.37 Lacs (31.03.2017 ? 33.80 Lakhs). The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

(iii) Loans and advances

In the case of loans to employees, the same is managed by establishing limits. (Which in turn based on the employees salaries and number of years of service put in by the concern employee)

(iv) Other Financials Assets

Others Financial Assets are considered to be of good quality and there is no significant increase in credit risk.

(B) Liquidity risk

possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Maturities of financial liabilities

The tables herewith analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

Market risk

Capital Management

ployee benefits Defined benefit plan:

The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at March 31,2021.

Note 2: The estimate of future salary increases taken into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Note 3: The gratuity provision as described above is not invested or funded in any Investments options.

Disclosures related to the Micro, Small and Medium Enterprises.

Segment Reporting

The Comapany operate in Trading of Edible Oil, Some agricultural products and chemical products segment. The management considers that these business units have similar economic characteristic nature of the product, nature of the regulatory environment etc. Based on the management analysis, the Company has only one operating segment, so no seperate segment report is given. The principle geographical areas in which company the Company operates is India.

The Company has idetified list of the Trade Receivables amounting to Rs. 7440.86/- Lacs and Trade Payables amounting to Rs. 7233.52/-Lacs, the credit of the parties have been impaired and balances which are either receivable or payable to the parties are written off during the year, the impact of the same is either debited or credited to Profit & Loss Account under the Other Income/Expenses head, had the same was not done the profit of the Company would have been higher by the Rs. 207.33/- Lakhs.

Also, the Company has entered into debt settlement agreement with one of the Trade Payable to whom company was indebted Rs. 1167.80 Lakhs. As per this agreement the Company needs to pay Rs. 1000.00 Lakhs only and the balance would be waieved off, and one of the condition to the agreement was to settle the payment obligation upto March 2020. Due to Covid 19 outbreak, the Company has not been able to settle the payment obligation and the same is pending to be paid. The Company is in the process of negotiating and revising the payment obligation schedule.

The Company has granted interest free loans, the terms and conditions including repayment thereof have not be stipulated by the Company, to the Associates and other parties of INR 6015.41, out of the same loans amounting to Rs. 569.59 Lakhs are pertaining to the Company''s whose names are strike off by the MCA. The Company has not impaired the balances of these loans in accordance with the requirements of ''Ind AS 109: Financial instruments'', as the management considers such balances as good and recoverable in future.

During the year, the Company has executed agreement in which loan granted by the Company to other companies to the tune of INR 1467.58 Lakhs has been settled through non cash transactions. In these transaction, the counter party has transferred investment held by them in thier Company name based on the valuation report taking base as Book value per share. Due to Covid pandamic, Out of these investments, the Company has sold investment worth INR 1380.46 Lakhs, for which payment has not been received till date. The Management is in the process of recovering the same and they are confidnet to recover the same by the next financial year.

Confirmation of parties for amount due from them as per accounts of the Company are not obtained. Amount due from customers include amounts due / with held on account of various claims. The Claims will be verified and necessary adjustments, if any, shall be made in the year of settlement. Subject to this, company is confident of recovering the dues and accordingly they have been classified as "debt considered good" and therefore no provision is considered necessary there against.

In case of Loans granted by the Company and loans taken by the Company, the terms of repayment has not been specified and hence it falls under the repayable on demand. On the basis of the same we have classified the entire Borrowings as Current Liabilities and Loans as Current Assets.

In the opinion of the Board of Directors, Current Assets, Loans & Advances have value at which they are stated in the Balance Sheet, if realized in the ordinary course of business. The provision for depreciation and for all know liabilities is adequate and not in excess of the amount reasonably necessary.

The Previous year''s figures, wherever necessary, have been regrouped/reclassified to conform to the current year''s presentation.

Mar 31, 2018

35 Disclosure under accounting standard (a ) Employee benefits

[A] Defined contribution plans:

Liability in respect of Provident Fund is provided on actual contribution basis.

[B] Defined benefit plan:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded. The following tables summaries the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity plan.

The following table sets out the status of the gratuity plan and the amounts recognized in the Company''s financial statements as at March 31, 2018. (Amt in lakhs)

Note 1: Discount rate is determined by reference to market yields at the balance sheet date on Government bonds, where the currency and terms of the Government bonds are consistent with the currency and estimated terms for the benefit obligation.

Note 2: The estimate of future salary increases taken into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Note 3: 100% of the plan assets are invested in group gratuity scheme offered by LIC of India.

(B) The Company declares and pays dividend in Indian Rupees. The dividend recommended by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. For the year ended 31st March 2018,the amount per share of Rs. Nil each a dividend distribution to equity Shareholders is recommended at Rs Nil (31st March 2017: Rs. Nil)

37 Other Disclosures :

(A) Disclosures related to the Micro, Small and Medium Enterprises.

The Company has not received information from vendors regarding their status under the

The details relating to Micro, Small and medium enterprise is disclosed as under :

38 Disclosure as required by Ind AS 101 first time adoption of Indian Accounting Standards Transition to Ind AS:

These are the Company''s first Standalone Financial Statements prepared in accordance with Ind AS.

The accounting standards notified u/s 133 of the Companies Act, 2013 and the Accounting policies set out in note 1.2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (The Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Explanation of transition to Ind AS

In preparing the financial statement, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

A.1 Ind AS optional exemptions

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant and Equipment (PPE) as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company as elected to measure all of its PPE ,Intangible assets at their previous GAAP carrying value.

A.1.2 Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at Fair Value through Other Comprehensive Income (FVOCI) on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.

A.2 Ind AS Mandatory Exceptions A.2.1

Estimates

An entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVOCI.

A.2.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

A.2.3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C Notes to reconciliations:-

1 Investments at Fair value through Other Comprehensive Income

Under the previous GAAP, the application of the relevant accounting standard resulted in all these investments being carried at cost less diminution in the value which is other then temporary. In accordance with Ind AS, financial assets representing investment in equity shares of entities have been fair valued. The company has designated investments as at fair value through other comprehensive income as permitted by Ind AS 109 resulting in increase in carrying amount by Nil lakhs as at 31 March 2017 and by Nil lakhs as at 1 Anril 701 6.

2 Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable

4 Retained Earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS adjustments.

5 Other Comprehensive Income

Under Ind AS, all items of income and expense recognized in a period should be included in Statement of Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expenes that are not recognized in Statement of Profit and Loss but are shown in the Statement of Profit and Loss as "Other Comprehensive Incomeâ, includes remeasurement of Employee Benefit obligation and fair valuation of Equity Instruments through OCI and Income tax relating to these items. The concept did not exist under the previous GAAP.

6 Actuarial Gain / Loss

Under the previous GAAP, actuarial gains and losses were recognized in Statement of Profit and Loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit of liability / asset which is recognized in Other Comprehensive Income. Consequently, the tax effect of the same has also been recognised in Other Comprehensive Income under Ind AS instead of Profit and Los. The actuarial loss for the year ended 31 March 2017, were Nil Lakhs and the tax effect thereon Nil Lakhs. 39

1. The standalone financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on___May, 2018. The financial statements as approved by the Board of Directors are subject to final approval by its Shareholders.

2. The figures as on the transition date and previous year have been re-arranged and regrouped wherever necessary to make them comparable with those of the current year.

The accompanying notes (1 to 38) are an integral part of the financial statements.

39 Related Party Disclosure 39.1 Key Managerial Person

39.1.1 Jayesh R Thakkar

39.1.2 Bhavesh Desai

39.1.3 Jyoti Gohil

Mar 31, 2016

(w) Related party disclosures :

a. List of related parties with whom transaction have taken place.

1. The company has only one class of equity shares having a par value of Rs..10/- per share. Each Holder of equity shares is entitled to vote per share. The company declares and of pays dividends in Indian rupees. The dividend proposed, if any, by the Board Directors is Meeting. During the year ended 31st March subject to the approval of the shareholders in the ensuing Annual General 2016, was Rs.. Nil (Previous Year Rs..Nil)the amount of per share dividend recognized as distributions to equity shareholders

2. The Company has issued 4,00,00,000 warrant fully convertible into equity shares of Rs..15 each including premium of Rs..5 during the FY 201415 but has not increased its authorized share capital which is against the provision of Companies Act,2013.

3. The Company has issued 15483333 Bonus Shares in the ration of 1:3 equity shares of Rs.10 each during the current financial year without increasing it Authorized Capital.

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

4. Trade payables are for goods purchased and services taken during the normal course of business.

5. The Company has not received information from vendors regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid at the year end together with interest paid/payable under the Act have not been given.

6. Statutory dues includes VAT, Excise Duty, TDS, service tax & other statutory payables.

7. Other Current liabilities includes rent payable , interest payable and staff dues.

8. Provision for employee benefits includes provision of Gratuity, Bonus & leave encashment payable within 12 month

9. Others includes salary and other expense payable to staff

10. Investment in shares includes investments in various corportes & private limited companies. Investment are stated at cost.

11. Trading Purchase includes purchase of equity shares & Garments and Other Items for Trading.

12. Investment in shares includes investments in various corporates & private limited companies. Investments are stated at cost.

Note:

1 During the current financial year the Manufacturing Division of the Company has stoped its Operation so the Goning Concern of the Manufacturing Division of the Company is no more.

2 As the Going concern of the Manufacturing Division is no more management has decided not to charge depreciation on Plant & Machinery of the Manufacturing Division.

3 Due to Rescheduling of Fixed Assets as per Companies Act,2013 the effect of Depreciation due to Companies Act,2013 is Rs.4,62,499.51 has been provided.

Mar 31, 2015

Not Available.

Mar 31, 2014

1. General Information

Kavit Industries Limited (Formerly known as Atreya Petrochem Limited) is Public Limited Company incorporated in India under the provisions of the Companies Act, 1956. The Company''s strength lies in the business process of manufacturing of various Petrochemical Downstream Products such as Specialty Oils, Petroleum Sulphonates, Solvents, etc. for Industrial Applications such as Rubber, Leather, Ink and Paint Industries. It is well recognized as a ''Partner of Choice'' by leading Companies across the country.

Terms/rights attached to equity shares :

2. The company has only one class of equity shares having a par value of Rs. 10/- per share. Each Holder of equity shares is entitled to vote per share. The company declares and of pays dividends in Indian rupees. The dividend proposed, if any, by the Board Directors is Meeting. During the year ended 31st March subject to the approval of the shareholders in the ensuing Annual General 2014, was Rs. Nil (Previous Year Rs. Nil)the amount of per share dividend recognized as distributions to equity shareholders

3. The Company has issued 4,00,00,000 warrant fully convertible into equity shares of Rs. 15 each including premium of Rs. 5 during the current year.

4. The company has received Rs. 485275000 as share application money against 4,00,00,000 warrant Convertible issued.

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

5. The Management is of the Opinion that none of the employees falls within the provision of Gratuity, PF, ESIC and others, so no provision has been done.

6. The Company has not received information from vendors regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid at the year-end together with interest paid/payable under the Act have not been given.

7. Trade Payable having scheduled payment beyond 12 months after reporting date Rs. Nil (Previous Year . Nil)

8. Statutory dues includes VAT, Excise Duty, TDS, service tax & other statutory payables.

9. Advances received from customer includes advances against future Sales to be held in next 12 Months

*Provision for employee benefits includes provision of Gratuity, Bonus & leave encashment payable within 12 month

# Others includes salary and other expense payable to staff.

10. Investment in shares includes investments in various corporates & private limited companies. Investment are stated at cost.

Mar 31, 2013

A. Depreciation:

Company has been provided depreciation only for the 9 month period as production plant has been under maintenance and modification.

B. Trade Receivables:

In respect of Receivable for Sundry Debtors (Incl. Receivable on Sale of Investments) of Rs. 421.72 Lacs and Other Trade receivable, the amount of Bad & Doubtful Debts are is not ascertainable on account of non- receipt of confirmation from the party.

C. In terms of the reporting requirements of section 372A of the Companies Act, 1956, we state that the Company has made aggregate Inter-Corporate Loan of Rs. 343.65 Lacs and investment of Rs. 40.62 Lacs.

D. The Company has given loan of Rs. 127.01 Lacs to directors, Firms and to the Companies in which Director/ relative are/were interested as director / partner / proprietor and the same is not prejudicial to the Company.

E. In respect of loan and advances, the amount of bad and doubtful debts is not ascertainable on account of non- receipt of confirmation from the party.

F. In the opinion of the Directors, Current Assets, Loans & Advances have values at which they are stated in the Balance Sheet, if realized in the ordinary course of business. The provision for depreciation and all known liabilities is adequate.

G. Sundry Creditors, Unsecured loans, other liabilities, loans and advances, sundry debtors, and other current assets are subject to confirmation.

H. Micro Small & Medium Enterprise: The Company is in the process of compiling the relevant information. Dues to Micro and small enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by us.

I. In the opinion of the Management, the Provident Fund and ESI act are not applicable, hence no provision have been made for the same.

J. Earning & Expenditure in Foreign Currency :Nil (P.Y. Â Nil)

K. Directors Remuneration: Nil (P.Y. Â Nil)

L. Auditors Remuneration : 60000/- & Taxes (P.Y.60000)

Mar 31, 2012

In the absence of the necessary information with the company relating to the registration status of the suppliers under Micro, Small and Medium Enterprise Development Act, 2006, the information required under the said Act could not be complied and disclosed.

J. Claims, Demands and Contingencies :

Details of disputed and/ or contingent Liabilities are as follows:

As on As on 31.03.2012 30.06.2011

Bank Guarantee - Expired (Not Claimed by District Supply Office) 78,345 78,345

Motor Spirit Tax-Disputed (Remanded) 92,50,463 92,50,463

Income Tax Demanded-Disputed 1,66,66,195 1,66,66,195

Excise Duty - Disputed 8,87,65,288 8,87,65,288

K. In the opinion of the Management, the Provident Fund and ESI act are not applicable, hence no provision have been made for the same.

L. Earning & Expenditure in Foreign Currency :Nil (P.Y. - Nil)

M. Where no external evidence is available, the directors have approved all such transactions.

N. Directors Remuneration: Nil (P.Y. - Nil)

O. Auditors Remuneration : 40000/- & Taxes (P.Y.40000)

Mar 31, 2010

1) Provision for Current and Deferred Tax

a) In view of unabsorbed losses and in absence of Taxable income under the provisions of the Income Tax Act 1961 in the current year the company believes that there will be no tax liability no provision has been made for the same

b) The company has unabsorbed depreciation and carry forward losses under the Income Tax Act 1961 .In the absence of virtual certainty of sufficient future taxable income deferred tax assets are not recognized in the account

2) Claims Demands and contingencies

Details of disputed and / or contingent Liabilities are as follows

3) Inter Corporate Loan / Advances

The company has granted and taken Loans to /from various parties in past year which required to be covered in the register u/s 301 of the Act are as under

In absences of any covenants as to recovery in respect of above Loans we are unable to comment on overdue statues and no steps taken for the recovery of the principal and interest

No provision has been made for the interest of above loans,

In absences of any covenants as to repayment in respect of above Loans we are unable to comment on overdue status and steps taken for the payment of the principal and interest

4) Earnings & expenditure in foreign Currency Nil P.Y - Nil

5) Non renewal of MST and other license manufacturing activity of the company remains suspended since February 2000

6) Sundry Creditors Unsecured loans other liabilities loans and advances sundry debtors and other current assets are subject to confirmation and no exercise carried out to determine bad amount .If any

7) In respect of advances given in past year there are no efforts made for the recovery .No provision has been made for Bad & Doubtful Advances and interest there on

8) Accounts of Debtors are unconfirmed and no amount realize since F.Y 1999-2000 .No provision has been made for Bad & Doubtful Depts

9) Where no external evidence is available the directors have approved all such transaction

10)Directors Remuneration : Nil ( P.Y.-Nil)

11) Authors Remuneration : 25,000/- & taxes ( P.Y.15000 )

12) In the opinion of the Director Current Assets Lonans & Advances have value at which they are stated in the balance sheet if realized in the ordinary course of business .The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonable necessary

13) Quantities information

14)Related party disclosures

a) List of related parties with whom transaction have taken place

b) Significant transaction during the past year and current year with related parties

15)Previous year figures have been regrouped rearranged and reclassified wherever necessary.

Mar 31, 2008

1) Provision for Current and Deferred Tax :

a) In view of unabsorbed losses and in absence of Taxable income under the Provisions of the Income Tax Act, 1961 in the current year, the company believes that there will be no tax liability, no provision has been made the same.

b) The company has unabsorbed depreciation and carry former losses under the Income Tax Act, 1961. In the absence of Virtual certainty of sufficient future taxable income, deferred tax assets are not recognized in the account.

2. Claims, Demands and contingencies :

Details of disputed and / or contingent Liabilities are as follows ;

2007-08 2006-07

Bank Guarantee- Expired 78,345 78,345 (Not Claimed by District supply office)

Motor spirit Tax- Disputed 92,50,463 92,50,463

Income Tax Demanded-Disputed 1,66,66,195 1,66,66,195

Excise Duty-Disputed 8,87,65,288 8,87,65,288

3) Earning & Expenditure in Foreign Currency : Nil (P.Y. - Nil)

4) Non renewal of MST and other licenses manufacturing activity of the company remains suspended since February, 2000.

5) Sundry creditors, Unsecured loans, other liabilities, loans and advances, sundry debtors, and other current assets are subject to confirmation and no exercise carried out to determine bad amount. if any.

6) In respect of advances given in past years, there are no efforts made for the recovery. No provision has been made for Bad & Doubtful Advances and interest there on.

7) Accounts of Debtors are unconfirmed and no amount realize since F.Y. 1999-2000. No provision has been made for Bad & Doubtful Debts.

8) Where no external evidence is available, the directors have approved all such transactions.

9) Directors Remuneration: Nil (P.Y. - Nil)

10) Auditors Remuneration : 15,000/- & Taxes (P.Y.15000)

11) In the opinion of the Director, current Assets, Loans & Advances have value at which they are stated in the Balance sheet, if realized in the ordinary course of business. The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

12) Additional information as required by para 3,4 and 4-A to 4-D of part-II of schedule VI to the companies Act, 1956 is not required as there was no manufacturing activity during the year.

13) Previous years figures have been regrouped, rearranged and reclassified wherever necessary.

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