Notes to Accounts of KGN Enterprises Ltd.

Mar 31, 2015

1. In the opinion of the Board of Directors, Current Assets, Non-Current Assets approximate of the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business. Adequate provisions have been made for all known current and non-current liabilities and provisions are not in excess of the amount reasonably necessary.

2. The Revised Schedule VI as notified under the Companies Act, 2013 has become applicable to the company for the presentation of its Financial Statements for the year ending March 31, 2015. The adoption of Revise Schedule VI requirements has significantly modified the presentation of disclosure which have been within these Financial Statements. Previous year figures have been regrouped/rearranged wherever necessary to confirm to the current year grouping.

3. Contingent Liability is not provided for is ''NIL''.

26. All Debit and Credit balance and accounts squared up during the year are subject to confirmation from respective parties.

4. RELATED PARTY DISCLOSURES :

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below :

(i) List of Related Parties where control exists and Related Parties with whom transactions have been taken place and relationships :

No. Name of Related Party Relationship

1 KGN Greens Limited Subsidiary Company

2 KGN Proteins Limited Subsidiary Company

3 KGN Bio-Tech Limited Subsidiary Company

4 KGN Oil & Gas Private Limited Subsidiary Company

5 KGN Industries Limited Enterprise over which Key Managerial Personnel are able to exercise significant influence

6 Ismail Memon Chairman

7 Babulal J Hirani Managing Director

8 Mohsin Memon Director

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Mar 31, 2014

1 * Provision for Income Tax for the A.Y. 2000-01, 2001-02, 2002-03, 2003-04, 2009-10, 2010-11, 2011-12

2 *Includes TDS u/s 194J.

3 *Proposed dividend was cancelled by shareholders in AGM, hence transferred to Reserve & Surplus.

4. In the opinion of the Board of Directors, Current Assets, Non-Current Assets approximate of the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business. Adequate provisions have been made for all known current and non -current liabilities and provisions are not in excess of the amount reasonably necessary.

5. The Revised Schedule VI as notified under the Companies Act, 2013 has become applicable to the company for the presentation of its Financial Statements for the year ending March 31, 2014. The adoption of Revise Schedule VI requirements has significantly modified the presentation disclosure which have been within these Financial Statements. Previous year figures have been regrouped/rearranged wherever necessary to conform to the current year grouping.

6. Contingent Liability is not provided.

7. All Debit and Credit balance and accounts squared up during the year are subject to confirmation from respective parties.f

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Mar 31, 2013

1. In the opinion of the Board of Directors, Current Assets, Non-Current Assets approximate of the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business. Adequate provisions have been made for all known current and non-current liabilities and provisions are not in excess of the amount reasonably necessary.

2. The Revised Schedule VI as notified under the Companies Act, 1956 has become applicable to the company for the presentation of its Financial Statements for the year ending March 31, 2013. The adoption of Revise Schedule VI requirements has significantly modified the presentation of disclosure which have been within these Financial Statements. Previous year figures have been regrouped/rearranged wherever necessary to confirm to the current year grouping.

3. Contingent Liability is not provided for is ''NIL''.

4. All Debit and Credit balance and accounts squared up during the year are subject to confirmation from respective parties.

5. RELATED PARTY DISCLOSURES :

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below :

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Mar 31, 2012

1.1 * Authorised Capital of Company was increased from 21,20,00,000 to 21,50,00,000 in the year 2011-12.

2.1 *Provisions for Income tax for the A.Y. 2000-01, 2001-2, 2002-03, 2003-04.

3. In the opinion of the Board of Directors, Current Assets, Non-Current Assets approximate of the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business. Adequate provisions, have been made for all known current and non-current liabilities and provisions are not in excess of the amount reasonably necessary.

4. The Revised Schedule VI as notified under the Companies Act, 1956 has become applicable to the company for the presentation of its Financial Statements for the year ending March 31, 2012. The adoption of Revise Schedule VI requirements has significantly modified the presentation disclosure which have been with in these Financial Statements. Previous year figures have been regrouped/rearranged wherever necessary to conform to the current year grouping.

5. Contingent Liability is not provided for is ''NIL''.

6. All Debit and Credit balance and accounts squared up during the year are subject to confirmation from respective parties.

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Mar 31, 2011

1) Contingent Liabilities not provided for is Rs Nil.

2) All debit and credit balance and accounts squared up during the year are subject to confirmation from respective parties.

3) Figures in Balance Sheet have been regrouped and rearranged wherever necessary to make them comparative with current year''s figures.

4) Figures in Balance Sheet are rounded off to the nearest of the Rupees.

5) Balances of receivables, payables and loans and advances parties are subject to confirmations. These balances are therefore, subject to adjustments, if any, as may be required on settlement of these balances with the parties.

6. KGN Proteins Limited

7. KGN Oil & Gas Pvt. Ltd. Joint Venture Company Nil

Enterprise having Significant influence Nil

Fellow Subsidiaries Nil

Key Managerial Personnel/Relatives Mr. Ismail G. Memon

Of Key Managerial Personnel Mr. Babulal J Hirani

Mr Aftabahmed Isamiya Qadri Mr Dhaval Bhatt

Enterprise over which relatives of key Nil

Managerial Personnel having significant

Influence

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Mar 31, 2010

1) The Sanctioned Scheme by the Board of Industrial and Financial Reconstruction (BIFR) vide their order dated 26th March, 2010 envisages merger of Sailani Agro Tech Industries Ltd. (SATIL) with KGN Enterprises Ltd. (KGN). The amalgamation is an amalgamation in the nature of pooling of interest method as defined by Accounting Standard (AS)-14 ''Accounting for Amalgamations'' issued by the Institute of Chartered Accountants of India. Following effects have been given in terms of the BIFR order:

i. With effect from the Appointed date i.e., 1st April, 2008, all the assets and liabilities of SATIL are transferred to and recorded in the books of the Company at their book values.

ii. As per the BIFR order, all the reserves of SATIL have been transferred to reserves of KGN Enterprises Ltd. (KGN).

iii. Out of the total Secured liabilities of SATIL of Rs. 7,081 lacs, liabilities to the tune of Rs. 1,797 lacs have been paid directly by KGN on behalf of SATIL and the balance liability of Rs. 5,284 lacs have been waived off as receivable from SATIL. Out of the waiver, Rs. 4,660 lacs has been squared up against the debit balance of profit & loss account and Rs 624 lacs have been transferred to Capital Reserve Account as per BIFR scheme.

iv. All the respective accounting entries upon merger of SATIL with KGN has been passed in the books of account of the KGN Enterprises Limited in the current financial year.

2) The share capital of SATIL was wholly held by KGN before the effective date of the BIFR order, thus the same stands cancelled upon amalgamation of SATIL with KGN.

3) Contingent Liabilities not provided for is Rs. Nil.

4) All debit and credit balance and accounts squared up during the year are subject to confirmation from respective parties.

5) Figures in Balance Sheet have been regrouped and rearranged wherever necessary to make them comparative with current year''s figures.

6) Figures in Balance Sheet are rounded off to the nearest of the Rupees.

7) Balances of receivables, payables and loans and advances parties are subject to confirmations. These balances are therefore, subject to adjustments, if any, as may be required on settlement of these balances with the parties.

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Mar 31, 2009

1. Contingent liabilities not provided for Rs. NIL (Previous Year Rs. NIL)

2. Figures in Balance Sheet have been regrouped and rearranged wherever necessary so as to make them comparable with in the current year.

3. Figures in Balance Sheet are rounded off to the nearest of the Rupees.

4. The information / details given in the Audit Report are as per the books maintained and determined and information / details are compiled and furnished on the computer.

5. Sundry Debtors and Creditors balances are subject to confirmation from respective parties.

6. Current Assets, Loans & Advances have the value at least on realization.

7. Number of employees in respect of remuneration aggregating to Rs. 300000/- per annum or Rs. 25000/- or more per month, where the employee for a part of year. Employed throughout the year Nil

Employed for a part of the year Nil

Salary Nil

8. There is no amount due from Directors or Managers or Key Personnel

9. Related Party Disclosure

A Name of Related Parties and nature of relationship

a) Subsidiary Companies Nil

b) Joint Venture Companies Nil

c) Directors and their relatives Shri Babulal J Hirani

Shri Aftab Ahmed Kadari

d) Enterprises significantly influenced Nil by Directors and / or their relatives

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Mar 31, 2008

1. Contingent liabilities not provided for Rs. NIL (Previous Year Rs. NIL)

2. Figures in Balance Sheet have been regrouped and rearranged wherever necessary so as to make them comparable with in the current year.

3. Figures in Balance Sheet are rounded off to the nearest of the Rupees.

4. The information / details given in the Audit Report are as per the books maintained and determined and information / details are compiled and furnished on the computer.

5. Sundry Debtors and Creditors balances are subject to confirmation from respective parties.

6. Current Assets, Loans & Advances have the value at least on realization.

7. Number of employees in respect of remuneration aggregating to Rs. 300000/- per annum or Rs. 25000/- or more per month, where the employee for a part of year.

8. There is no amount due from Directors or Managers or Key Personnel

9. Information required as per para 4C & 4D are not applicable to the company hence not given.

10. Deferred Tax

There is no provision of deferred tax as the depreciation under SLM is higher than the depreciation under WDV method for income tax calculation.

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Mar 31, 2007

1. Contingent liabilities not provided for Rs. NIL (Previous Year Rs. NIL)

2. Figures in Balance Sheet have been regrouped and rearranged wherever necessary so as to make them comparable with in the current year.

3. Figures in Balance Sheet are rounded off to the nearest of the Rupees.

4. The information / details given in the Audit Report are as per the books maintained and determined and information / details are compiled and furnished on the computer.

5. Sundry Debtors and Creditors balances are subject to confirmation from respective parties.

6. Current Assets, Loans & Advances have the value at least on realization.

7. Number of employees in respect of remuneration aggregating to Rs. 300000/- per annum or Rs. 25000/- or more per month, where the employee for a part of year.

Employed throughout the year Nil

Employed for a part of the year Nil

Salary Nil

8. The company has not paid any managerial remuneration to any directors during the year.

9. There is no amount due from Directors or Managers or Key Personnel

10. Deferred Tax

There is no provision of deferred tax as the depreciation under SLM is higherthan the depreciation under WDV method for income tax calculation

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Mar 31, 2006

1. Contingent liabilities not provided for Rs. NIL (Previous Year Rs. NIL)

2. Figures in Balance Sheet have been regrouped and rearranged wherever necessary so as to make them comparable with in the current year.

3. Figures in Balance Sheet are rounded off to the nearest of the Rupees.

4. The information / details given in the Audit Report are as per the books maintained and determined and information / details are compiled and furnished on the computer.

5. Sundry Debtors and Creditors balances are subject to confirmation from respective parties.

6. Current Assets, Loans & Advances have the value at least on realization.

7. Number of employees in respect of remuneration aggregating to Rs. 300000/- per annum or Rs. 25000/- or more per month, where the employee for a part of year. Employed throughout the year Nil

Employed for a part of the year Nil

Salary Nil

8. There is no amount due from Directors or Managers or Key Personnel

9. Related Party Disclosure

A Name of Related Parties and nature of relationship

a) Subsidiary Companies Nil

b) Joint Venture Companies Nil

c) Directors and their relatives Shri Babulal J Hirani

Shri Aftab Ahmed Kadari

d) Enterprises significantly influenced Nil by Directors and / or their relatives