Notes to Accounts of Lake Shore Realty Ltd.

Mar 31, 2025

d) Rights, prefrences and restrictions attached to Shares Equity Shares:

The Company has only one class of equity shares having a par value of Rs.10 per share. Each Shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company.

Some of balance of debtors, creditors and loans and advances are subject to confirmation from respective parties. No significant impact is expected on the Profit and loss account on this account. The effect of the same if any which is not likely to be material will be adjusted at the time of confirmation.

a) Defined Contribution Plans :

The Company charged Rs.NIL (Previous year Rs. 0) for provident fund contribution to the profit and loss account. The contributions towards these schemes by the Company are at rates specified in the rules of the schemes.

b) Defined Benefit Plans :

i Liability for Gratuity and Privilege leaves is determined on actuarial basis.as per guidelines issued under IND AS-19(AS-15)

ii Gratuity Scheme provides for a lump sum payment to vested employees at retirement, death while service, except death while in employment.

The estimate of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotions and other relevant factors such as demand and supply in the employment market.

Note- 31 Related Party Disclosures as per Accounting Standard 18 and IND AS 24.

Names of related party and nature of related party relationship:

Associates

Ace International LLP., Alpha Overseas., Mahaan Milk Foods Ltd., Ever Bright Estates Pvt Ltd

Key Management Personnel: Mr. Sanjeev Goyal, Managing Director and Mrs. Saloni Goyal, Director

Key Management Personnel''s relatives: Mr. AmarNath Goyal ( Father of Mr. Sanjeev Goyal),

Sanya Goyal (Daughter of Mr. Sanjeev Goyal), Aditya Goyal (Son of Sanjeev Goyal)

Note: Goods manufactured for others:

B. Licensed Capacity:

Not applicable, as per notification No. 477(E) dated 25.7.91 issued under the Industries (Development & Regulation) Act, 1956.

C. Installed Capacity:

Not Applicable.Company has not done manufacturing activity during the year.

Note 34 General

a. Figures have been rounded off to nearest rupee.

b. Previous year''s figures have been regrouped and/or rearranged wherever considered necessary.

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Mar 31, 2024

g. Contingent liability

Contingent liability is not provided for in the accounts and is recognized by way of notes.

2. Other accounting policies

i. Borrowing costs

Borrowing cost directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the
respective asset. All other borrowing costs are expensed in the period they occur.

ii. Inventories

Finished and semi-finished products produced and purchased by the Company are carried at lower of cost and
net realizable value. Raw materials purchased are carried at cost. Store and spare parts are carried at cost. Cost
has been determined by using the FIFO method.

iii. Revenue Recognition

(i) Sale of goods: Revenue from sale of goods is recognized net of rebates and discounts on transfer of
significant risks and rewards of ownership to the buyer.

(ii) Income from Services: Revenue from services is accounted for in accordance with the terms of contracts, as
and when these services are rendered.

(iii) Interest: Revenue is recognized on a time proportion basis taking into account the amount outstanding and
the rate applicable.

(iv) Dividend: Dividend Income is recognized when right to receive is established.

iv. Balance confirmation

Balances of debtors creditors and loans and advances are subject to confirmation from respective parties.

v. Tax Expenses

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and
Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which
case, the tax is also recognized in other comprehensive income or equity.

vi. Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet
date.

vii. Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and
assets are reviewed at the end of each reporting period.

viii. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

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

ix. Financial Instruments
i) Financial Assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value
through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets
are recognised using trade date accounting.

B. Subsequent measurement

a) Financial assets carried at amortized cost (AC)

A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

c) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

C. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit
and Loss, except for those equity investments for which the Company has elected to present the value changes in
Other Comprehensive Income’.

D. Impairment of financial assets

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating
impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instrument that are possible within 12 months after the reporting date); or

Full lifetime expected credit losses (expected credit losses that result from all possible default events over the
life of the financial instrument)

For trade receivables Company applies ‘simplified approach’ which requires expected lifetime losses to be
recognised from initial recognition of the receivables. The Company uses historical default rates to determine
impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are
reviewed and changes in the forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant
increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of
recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due
to the short maturity of these instruments.

a) Exemptions from retrospective application

(i) Business combination exemption

The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103,
“Business Combinations” to business combinations consummated prior to April 1, 2015 (the “Transition
Date”), pursuant to which Goodwill / capital reserve arising from a business combination has been stated at the
carrying amount prior to the date of transition under Indian GAAP. The Company has also applied the
exemption for past business combinations to acquisitions of investments in subsidiaries / associates / joint
ventures consummated prior to the Transition Date.

(ii) Share-based payment transactions

Ind AS 101 encourages, but does not require, first time adopters to apply Ind AS 102 Share based Payment to
equity instruments that were vested before the date of transition to Ind AS. The Company has elected not to
apply Ind AS 102to options that vested prior to April 1, 2015.

(iii) Fair value as deemed cost exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its
carrying value at the transition date except for certain class of assets which are measured at fair value as deemed
cost.

(iv) Decommissioning liabilities

The Company has elected to apply the transitional provision with respect to recognition of Decommissioning,
Restoration and Similar Liabilities.

x. The Company has security deposits of Rs. 55,838.22/- (figure in hundred), this amount stands before
the family settlement, therefore there are no supporting document available.

xi. Indusind Bank & State Bank of Patiala Both bank accounts need to be written off as Indusind
bank amount has been transferred to RBI and SBOP Bombay- There are no such documents and
balance stands from 1/4/2008 onwards.

xii. Interest receivable on FDR’s is unreconciled to the tune of Rs. 906.12/- (figure in hundred) .

xiii. To make comparable Rs. 8,138.91/- (figure in hundred) transfers from "Other Current Liabilities" to
"Trade Payables " in current year.

VI. Details of Benami Property held

The company didn’t have any Benami Property.

VII. Where the Company has borrowings from banks or financial institutions on the basis of current assets:

(a) whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions
are in agreement with the books of accounts.

(b) if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately disclosed
The Company didn’t have any borrowings from banks or financial institutions on the basis of Current Assets.

VIII. Willful Defaulter:

a. Date of declaration as willful defaulter,

b. Details of defaults (amount and nature of defaults),

The Company is not declared a willful defaulter during the year.

IX. 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: -

The company didn’t have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

X. Registration of charges or satisfaction with Registrar of Companies:

Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period,
details and reasons thereof shall be disclosed.

As informed by company there is no any charge or satisfaction yet to be registered with Registrar of
companies.

XI. Compliance with number of layers of companies:

Where the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond
the specified layers and the relationship/extent of holding of the company in such downstream companies shall be
disclosed.

As informed by the company it has complied with.

XII. Compliance with approved Scheme(s) of Arrangements:

Where any Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237
of the Companies Act, 2013, the Company shall disclose that the effect of such Scheme of Arrangements have been
accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with
accounting standards and deviation in this regard shall be explained

Note: For further clarifications, please refer Note XV of "NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR
ENDED 31ST MARCH, 2024" annexed with Financial Statement for the Financial year 2023-2024.

As per our report of even date

For R.C. SHARMA & ASSOCIATES For and on behalf of the Board of Directors of

Chartered Accountants Mahaan Foods Limited

Firm Registration. No. 021847N

CA R.C.Sharma Sanjeev Goyal Saloni Goyal Jitender Singh Bisht

(Partner) (Managing Director) (Director) (CFO)

FCA DIN: 00221099 DIN: 00400832 PAN: BDRPB0631F

Membership No. 83543

Place: New Delhi Ritika Aggarwal

Date: 29/05/2024 Company Secretary & Compliance Officer

M.No.: A69712

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Mar 31, 2015

Note 1. Overview

Mahaan Foods Limited (MFL) is an ISO 9001/2000 & HACCUP certified company which was incorporated in 1987. The Company is engaged in manufacturing of dairy products and pharma nutritional products.

Note 2. Share Capital

a) Rights, preferences and restrictions attached to Shares

Equity Shares:

The Company has only one class of equity shares having a par value of Rs.10 per share. Each Shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company

Note 3 Contingent Liabilities:

Particulars As at 31st As at 31st March, 2015 March, 2014

Sales Tax 53,17,872 53,17,872

Entry tax 5,31,614 5,31,614

Note 4

Some of balance of debtors, creditors and loans and advances are subject to confirmation from" respective parties. No significant impact is expected on the Profit and loss account on this account." The effect of the same if any which is not likely to be material will be adjusted at the time of confirmation."

Note- 5 Employee Benefit's :

Defined Contribution Plans :

The Company charged Rs.NIL (Previous year Rs. 2,15,447.00) for provident fund contribution to the profit and loss account. The contributions towards these schemes by the Company are at rates specified in the rules of the schemes.

Defined Benefit Plans :

Liability for Gratuity and Privilege leaves is determined on actuarial basis.

Gratuity Scheme provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service, except death while in employment.

The basis for determination of liability is as under :

Note- 6 Related Party Disclosures as per Accounting Standard 18.

Names of related party and nature of related party relationship:

Associates

Zeon Life sciences Ltd (Previously known as Mahaan Dairies Ltd)., Mahaan Proteins Ltd., Lactomalt Foods Pvt., Ace International. Healthy India Nutritional Products Pvt. Ltd. Best Milk Foods Pvt. Ltd.

Key Management Personnel: Mr. Sanjeev Goyal, Managing Director and Mrs. Saloni Goyal, Director

Key Management Personnel's relatives: M/s Rajiv Goyal HUF (HUF of Mr. Rajiv Goyal), Mr. Amar Nath Goyal ( Father of Mr. Sanjeev Goyal), M/s A N Goyal HUF( HUF of father of Mr. Sanjeev Goyal), Mr.Rajiv Goyal ( Brother of Mr. Sanjeev Goyal), Mrs. Shashi Goyal (Mother of Mr. Sanjeev Goyal), Mr.Suresh Garg, Mr.Dalip Chand Garg (Father of Mr. Suresh Garg), Mr.Dalip Chand Garg HUF (HUF of Mr. Suresh Garg's Father),Rani Garg (wife of Mr. Suresh Garg)

The following transactions were carried out with the related parties in the ordinary course of business :

Note 7 Exceptional Item (Transfer of Assets & Liabilities under family settlement )

Mahaan group company initially started the business in the year 1987 with equal contribution and participation of Mr. A.N. Goyal and Mr. Suresh Garg.Mr. Rajeev Goyal(son of Mr. A.N. Goyal), Mr. Sanjeev Goyal (son of Mr. A.N. Goyal) and the member of the family thereafter jointly established and promoted the Mahaan Group constituting the various companies referred to as

(a) Mahaan Proteins Ltd.

(b) Zeon Life science Ltd.

(c ) Mahaan food Ltd. (Consisting further 2 unites Mahaan Bioysis and Mahaan Nutritions)

(d) Ace International

And the promoters groups are reffered to as

(a) Mr. A N Goyal as ANG Group

(b) Mr. Suresh Garg as Garg Group

(c) Mr. Saneev Goyal as SG Group

(d) Mr. Rajeev Goyal as RG Group

All the parties enjoyed good relationship and jointly carried on the business of the Mahaan group for more than 2 decades. However with the passage of time, certain disputed and differences arose between the parties and in order to resolve these disputes and differences, The parties decided to re- arrange the ownership of the companies and to divide the assets and liabilities of the Mahaan Group In order to give effect to the family settlement they entered in to the Memorandum of Family Settlement (MOFS) dated 31.08.2010

Broad settlement amongst the groups is as under:-

(a) The Ownership, Management and control of Zeon Lifesience Ltd. and Mahaan Biosys & Mahaan Nutrition both unit of MFL has been decided to be accorded to Mr. Suresh Garg( Garg Group)

(b) The Ownership, Management and control of Mahaan Proteins Ltd has been decided to be accorded to Mr. Rajeev Goyal (RG Group)

(c) The Ownership, Management and control of ACE International and Dairy division of MFL has been decided to be accorded to Mr, Sanjeev Goyal (SG Group)

(d) Payment of 6.8 Crore by Mr. Suresh Garg to other promoters group.

(e) Mr. A.N. Goyal Expressed his desire to retire from active business.

(f) Transfer of Loan liabilities (All secured liabilities towards loans and interests outstanding) of Mahaan Food Ltd. by Garg Group

(g) Transfer of 1 /4th share of property at Greater Kailash by Garg Group in favour of SG Group

(h) Exchange of Shareholding inter se.

Till November 2011 nothing could be executed amongst the groups due to disagreements on various issues in the settlement. Finally application under Section 9 of Arbitration and Conciliatrion Act 1996 was moved by SG Group before the Hon'ble Delhi High Court for expeditious execution of MOFS.

Obligation completed during Financial Year 2012-13

In terms of court order dated 30-5-2012 following compliances were made

1. Garg Group made a part payment of Rs 145 lacs to RG Group

2. Garg Group made payment of Rs. 200 lacs to ANG Group

3. Garg Group , RG Group & ANG Group exchange their respective shareholdings.

Obligation completed during Financial Year 2013-14

In terms of court order dated 10-5-2013 one compliance was made i.e.

1. Garg Group acquired two units of Mahaan Foods Limited namely MB and MN along with assets and liabilities

Pending obligations as on 31.03.2014

Obligation mentioned at serial no. (d), (g), (h) above are pending as on date

Pending obligations as on 31.03.2015

Obligation mentioned at serial no. (d), (g), (h) above are pending as on date

The net difference between the book balances relating to various assets and loans/liabilities taken over by Garg Group and its assumed agreed values has been shown as "Exceptional Item". In previous year. Few book balances are yet to be squared up in view of obligations ransactions which are pending under MOFS as on the date of Balance Sheet.

Note - 8 segment reporting

There are no reportable segments as per Accounting standard standard 17 on segment reporting

Note - 9 Additional information pursuant to the provision of part-ll of Schedule III to the Companies Act, 2013 (Figures in brackets are in respect of previous year.)

Note: Goods manufactured for others:

Complan: The production during the year was NIL MT (Previous Year 899 MT )

B. Licensed Capacity:

Not applicable, as per notification No. 477(E) dated 25.7.91 issued under the Industries (Development & Regulation) Act, 1956.

C. Installed Capacity:

The products are manufactured in integrated plant, hence product wise installed capacity cannot be given. However, as certified by the Management, the installed capacity is 3,900 MT (Previous year 3,900 MT) for Base Proteins/ Maltodextrine and 6600 MT (Previous year 6,600 MT) for Energy Drinks.

The products viz. Dairy Creamer and Pure Ghee are manufactured in an integrated plant taken on lease, hence product wise installed capacity cannot be given. However, as certified by the Management, the installed capacity is 5000 MT (Previous year 5000 MT) per annum for various types of Milk powders, 2000 MT (Previous year 2000) per annum for Ghee.

Note 10 General

a. Figures have been rounded off to nearest rupee.

b. Previous year's figures have been regrouped and/or rearranged wherever considered necessary.

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Mar 31, 2014

1. Overview

Mahaan Foods Limited (MFL) is an ISO 9001/2000 & HACCUP certified company which was incorporated in 1987. The Company is engaged in manufacturing of dairy products and pharma nutritional products.

2. Rights, prefrences and restrictions attached to shares

Equity Shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each Shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company

3. Vehicle finance loans are secured by hypothecation of vehicles amounting to Rs.19,00,269.00 (Previous year Rs. 26,05,747.00) shown under fixed assets.

**Advances recoverable in cash or in kind or for value to be received includes Rs. 16,24,963.00 (P.Y. 69,85,653.00) due from two parties who were holding office of Directorship in the company during earlier years. Maximum amount due during the year Rs.69,85,653 (P.Y. 69,85,653.00).

** The company generally enters into cancelable operating leases for machinery, office and godown premises and residence to its employees, normally renewable on expiry are and cancelable at its option.

** Lease rent charged to the profit and loss account relating to operating leases are Rs. 1,64,817.00 (Previous year - Rs. 1,95,06,332.00).

Note 4 Contingent Liabilities:

Particular As at As at 31st March, 2014 31st March 2013

Sales Tax 53,17,872 53,17,872

Entry tax 5,31,614 5,31,614

The Company has filed appeal against these liabilities and has been advised that there will not be any liabilities on this account and consequently no provision has been made in the books of accounts.

Note 5

Some of balance of debtors, creditors and loans and advances are subject to confirmation from espective parties. No significant impact is expected on the Profit and loss account on this account. The effect of the same if any which is not likely to be material will be adjusted at the time of confirmation.

Note- 6 Employee Benifites :

a) Defined Contribution Plans :

The Company charged Rs. 2,15,447.00 (Previous year Rs. 8,97,287.00) for provident fund contribution to the profit and loss account. The contributions towards these schemes by the Company are at rates specified in the rules of the schemes.

b) Defined Benefit Plans :

i Liability for Gratuity and Privilege leaves is determined on actuarial basis.

ii Gratuity Scheme provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service, except death while in employment.

The estimate of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotions and other relevant factors such as demand and supply in the employment

Note- 7 Related Party Disclosures as per Accounting Standard 18.

Names of related party and nature of related party relationship:

Associates

Zeon Lifesciences Ltd (Previously known as Mahaan Dairies Ltd)., Mahaan Proteins Ltd., Lactomalt Foods Pvt. Ltd.,

Ace International. Healthy India Nutritional Products Pvt. Ltd. Best Milk Foods Pvt. Ltd.

Key Management Personnel: Mr. Sanjeev Goyal, Managing Director and Mrs. Saloni Goyal, Director Key Management Personnel''s relatives: M/s Rajiv Goyal HUF (HUF of Mr. Rajiv Goyal), Mr. Amar Nath Goyal (Father of Mr. Sanjeev Goyal), M/s A N Goyal HUF( HUF of father of Mr. Sanjeev Goyal), Mr. Rajiv Goyal (Brother of Mr. Sanjeev Goyal), Mrs. Shashi Goyal (Mother of Mr. Sanjeev Goyal), Mr. Suresh Garg, Mr. Dalip Chand Garg (Father of Mr. Suresh Garg), Mr. Dalip Chand Garg HUF (HUF of Mr. Suresh Garg''s Father), Rani Garg (wife of Mr. Suresh Garg)

Note 8 Exceptional Item:-

Mahaan group company initially started the business in the year 1987 with Mr. A.N. Goyal and Mr. Suresh Garg. Mr. Rajiv Goyal (son of Mr. A.N. Goyal), Mr. Sanjeev Goyal (son of Mr. A.N. Goyal) Running it jointly established and promoted the Mahaan Group constituting the various companies referred to as

(a) Mahaan Proteins Ltd.

(b) Zeon Lifescience Ltd.

(c ) Mahaan food Ltd. (Consisting further 2 unites Mahaan Bioysis and Mahaan Nutritions)

(d) Ace International

And the promoters groups are referred to as

(a) Mr. A N Goyal as ANG Group

(b) Mr. Suresh Garg as Garg Group

(c ) Mr. Saneev Goyal as SG Group

(d) Mr. RajIv Goyal as RG Group

All the parties enjoyed good relationship and jointly carried on the business of the Mahaan group for more than 2 decades.

However with the passage of time,

The parties decided to re- arrange the ownership of the companies and entered into a Memorandum of Family Settlement dated 31st August, 2010 taken on record by the Hon''ble Company Law Board, New Delhi via order dated 3rd September, 2010.

Broad settlement amongst the groups is as under:-

(a) The Ownership, Management and control of Zeon Lifescience Ltd. and Mahaan Biosys & Mahaan Nutrition both unit of MFL has been decided to be accorded to Mr. Suresh Garg (Garg Group)

(b) The Ownership, Management and control of Mahaan Proteins Ltd has been decided to be accorded to Mr. Rajiv Goyal (RG Group)

(c) The Ownership, Management of the Dairy division of MFL has been decided to be accorded to Mr. Sanjeev Goyal (SG Group)

(d) Payment of 6.8 Crore by Mr. Suresh Garg to other promoters group.

(e) Mr. A.N. Goyal Expressed his desire to retire from active business.

(f) Transfer of Loan liabilities (All secured liabilities towards loans and interests outstanding) of Mahaan Food Ltd. to be taken over by Garg Group

(g) Transfer of 1/4th share of property at Greater Kailash by Garg Group in favour of SG Group

(h) Exchange of Shareholding.

Till November 2011 nothing could be executed amongst the groups due to disagreements on various issues in the settlement. Finally application under Section 9 of Arbitration and Conciliation Act 1996 was moved by SG Group before the Hon''ble Delhi High Court for expeditious execution of MOFS.

Obligation completed during Financial Year 2012-13

In terms of court order dated 30-5-2012 following compliances were made

1. Garg Group made a part payment of Rs 145 lacs to RG Group

2. Garg Group made payment of Rs. 200 lacs to ANG Group

3. Garg Group , RG Group & ANG Group exchange their respective shareholdings.

4. AN Group also transferred his shares to SG Group

Obligation completed during Financial Year 2013-14

In terms of court order dated 10-5-2013 one compliance was made i.e.

1. Garg Group acquired two units of Mahaan Foods Limited namely MB and MN along with assets and liabilities alongwith the loan liability including interest of State Bank of Patiala and Himachal Pradesh Financial Corporation.

Pending obligations as on 31.03.2014

Obligation mentioned at serial no. (d), (g), (h) above are pending as on date

The net difference between the book balances relating to various assets and loans/liabilities taken over by Garg Group and its assumed agreed values has been shown as "Exceptional Item". Few book balances are yet to be squared up in view of obligationstransactions which are pending under MOFS as on the date of Balance Sheet.

Note 9 Segment reporting

Business Segments

Based on the guiding principles given in Accounting Standard (AS 17) "Segment Reporting" issued by the Institute of Chartered Accountants of india, the Company''s business segments are Dairy (comprising milk powders and Ghee), Non-dairy (comprising maltridexin and base protein) and Energy Drinks. The accounting policies for segment reporting are in line with the accounting policies followed by the company.

Note: Goods manufactured for others:

Complan: The production during the year was 899 MT (Previous Year 1763 MT)

B. Licensed Capacity:

Not applicable, as per notification No. 477(E) dated 25.7.91 issued under the Industries (Development & Regulation) Act, 1956.

C. Installed Capacity:

The products are manufactured in integrated plant, hence product wise installed capacity cannot be given. However, as certified by the Management, the installed capacity is 3,900 MT (Previous year 3,900 MT) for Base Proteins/Maltodextrine and 6600 MT (Previous year 6,600 MT) for Energy Drinks.

The products viz. Dairy Creamer and Pure Ghee are manufactured in an integrated plant taken on lease, hence product wise installed capacity cannot be given. However, as certified by the Management, the installed capacity is 5000 MT (Previous year 5000 MT) per annum for various types of Milk powders, 2000 MT (Previous year 2000) per annum for Ghee.

Note 10 General

a. Figures have been rounded off to nearest rupee.

b. Previous year''s figures have been regrouped and/or rearranged wherever considered necessary.

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Mar 31, 2012

1. Secured Loans

Secured loans from Financial Institutions and Banks are secured by a mortgage of all the Company''s immovable properties both present and future ranking pari-passu inter-se and a charge by way of hypothecation of all the Company''s movable properties including stocks of raw materials, semi-finished, finished goods, consumable stores and book debts and other specified movable and also guaranteed by some of the directors of the company. Vehicle finance loans are secured by hypothecation of vehicles amounting to Rs. 25,53,879 (Previous year Rs. 20,83,297.) shown under fixed assets.

The Company has filed appeal against these liabilities and has been advised that there will not be any liabilities on this account and consequently no provision has been made in the books of accounts.

2. The Company has not received any confirmation from the suppliers regarding their status of registration under Micro, Small and Medium Enterprises Development Act, 2006, which came into effect from October 2, 2006 and hence disclosure required under the said Act has not been given.

Based upon the information available with the Company, the balance due to the Micro and Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil (Previous year Rs. Nil). Further, no interest during the year has been paid or payable under the terms of the said Act.

3. Sundry Creditors includes Rs. 2,90,320 (P.Y. Rs. 14,27,029.00 ) due to a Director.

4. Advances recoverable in cash or in kind or for value to be received includes Rs. 69,85,653 (P.Y. 69,60,653) due from two parties who were holding office of Directorship in the company during earlier years . Maximum amount due during the year Rs.69,85,653 (P.Y. 69,60,653).

5. Some of balance of debtors, creditors and loans and advances are subject to confirmation from respective parties. No significant impact is expected on the Profit and loss account on this account. The effect of the same if any which is not likely to be material will be adjusted at the time of confirmation.

6. Operating Lease

i) The company generally enters into cancelable operating leases for machinery, office and godown premises and residence to its employees, normally renewable on expiry are and cancelable at its option.

ii) Lease rent charged to the profit and loss account relating to operating leases are Rs. 1,34,07,720 (Previous year – Rs. 94,67,536).

7 Employee Benefits :

a) Defined Contribution Plans :

The Company charged Rs.11,75,809 (Previous year Rs. 10,06,440) for provident fund contribution to the profit and loss account. The contributions towards these schemes by the Company are at rates specified in the rules of the schemes.

b) Defined Benefit Plans :

i Liability for Gratuity and Privilege leaves is determined on actuarial basis.

ii Gratuity Scheme provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment.Vesting occurs upon completion of five years of service, except death while in employment.

iii The basis for determination of liability is as under :

8 Related Party Disclosures as per Accounting Standard 18.

Names of related party and nature of related party relationship:

Associates

Zeon Lifesciences Ltd (Previously known as Mahaan Dairies Ltd)., Mahaan Proteins Ltd., Lactomalt Foods Pvt.

Ltd., Ace International. Healthy India Nutritional Products Pvt. Ltd. Best Milk Foods Pvt. Ltd.

Key Management Personnel: Mr. Sanjeev Goyal, Managing Director and Mrs. Saloni Goyal, Director

Key Management Personnel''s relatives: M/s Rajiv Goyal HUF (HUF of Mr. Rajiv Goyal), Mr. Amar Nath Goyal ( Father of Mr. Sanjeev Goyal), M/s A N Goyal HUF( HUF of father of Mr. Sanjeev Goyal), Mr.Rajiv Goyal ( Brother of Mr. Sanjeev Goyal), Mrs. Shashi Goyal (Mother of Mr. Sanjeev Goyal), Mr.Suresh Garg, Mr.Dalip Chand Garg (Father of Mr. Suresh Garg), Mr.Dalip Chand Garg HUF (HUF of Mr. Suresh Garg''s Father),Rani Garg (wife of Mr. Suresh Garg)

9 Segment reporting

Business Segments

Based on the guiding principles given in Accounting Standard (AS 17) "Segment Reporting" issued by the Institute of Chartered Accountants of india, the Company''s business segments are Dairy (comprising milk powders and Ghee), Non-dairy (comprising maltridexin and base protein) and Energy Drinks. The accounting policies for segment reporting are in line with the accounting policies followed by the company.

Note: Goods manufactured for others:

Glucon - D: The production during the year was NIL MT (Previous year 1219 MT). Complan: The production during the year was 1482 MT (Previous Year NIL)

B. Licensed Capacity:

Not applicable, as per notification No. 477(E) dated 25.7.91 issued under the Industries (Development & Regulation) Act, 1956.

C. Installed Capacity:

The products are manufactured in integrated plant, hence product wise installed capacity cannot be given. However, as certified by the Management, the installed capacity is 3,900 MT (Previous year 3,900 MT) for Base Proteins/ Maltodextrine and 6600 MT (Previous year 6,600 MT) for Energy Drinks.

The products viz. Dairy Creamer and Pure Ghee are manufactured in an integrated plant taken on lease, hence product wise installed capacity cannot be given. However, as certified by the Management, the installed capacity is 5000 MT (Previous year 5000 MT) per annum for various types of Milk powders, 2000 MT (Previous year 2000) per annum for Ghee.

10 General

a. Figures have been rounded off to nearest rupee.

b. Previous year''s figures have been regrouped and/or rearranged wherever considered necessary.

c. Note 1 to 22 form an integral parts of the Accounts and have been duly authenticated.

---

Mar 31, 2011

1. Secured Loans

Secured loans from Financial Institutions and Banks are secured by a mortgage of all the Company's immovable properties both present and future ranking pari-passu inter-se and a charge by way of hypothecation of all the Company's movable properties including stocks of raw materials, semi-finished, finished goods, consumable stores and book debts and other specified movable and also guaranteed by some of the directors of the company. Vehicle finance loans are secured by hypothecation of vehicles amounting to Rs. 20,83,297 (Previous year Rs.19,24,276) shown under fixed assets.

2. Contingent Liabilities:

Sales Tax 531.79.737 5.31.79.737

Entry tax 5,31,614 5,31,614

The Company has filed appeal against these liabilities and has been advised that there will not be any liabilities on this account and consequently no provision has been made in the books of accounts.

3. The Company has not received any confirmation from the suppliers regarding their status of registration under Micro, Small and Medium Enterprises Development Act, 2006, which came into effect from October 2, 2006 and hence disclosure required under the said Act has not been given.

Based upon the information available with the Company, the balance due to the Micro and Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil (Previous year Rs. Nil). Further, no interest during the year has been paid or payable under the terms of the said Act.

4. Sundry Creditors include Rs. 14,27,029 (P.Y. Rs. 2,21,050) due to Directors.

5. Advances recoverable in cash or in kind or for value to be received includes Rs. 69,60,653 (P.Y. 62,90,460) due from two Directors. Maximum amount due during the year Rs.69,60,653 (P.Y. 62,90,460).

6. Some of balance of debtors, creditors and loans and advances are subject to confirmation from respective parties. No significant impact in expected on the Profit and loss account on this account. The effect of the same if any which is not likely to be material will be adjusted at the time of confirmation.

7. Operating Lease

i) The company generally entered into cancelable operating leases for machinery, office and go down premises and residence to its employees, normally renewable on expiry and cancelable at its option.

ii) Lease rent charged to the profit and loss account relating to operating leases are Rs. 94,67,536 (Previous year- Rs. 1,14,87,118).

8 The carrying amount of Deferred Tax Liabilities /( Assets ) at each Balance Sheet date is arrived at as follows in accordance with Accounting Standard 22 as issued by The Institute of Chartered Accountants of India :

Note: Computation of net profit under section 198 of the Companies Act. 1956 for the purpose of the payment of managerial remuneration has not been enumerated as no commission is payable.

9 Employee Benefits :

a) Defined Contribution Plans :

The Company charged Rs.10,06.440 (Previous year Rs. 10,79,641) for provident fund contribution to the profit and loss account. The contributions towards these schemes by the Company are at rates specified in the rules of the schemes.

b) Defined Benefit Plans :

i Liability for Gratuity and Privilege leaves is determined on actuarial basis.

ii Gratuity Scheme provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service, except death while in employment.

The estimate of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotions and other relevant factors such as demand and supply in the employment market.

10 Related Party Disclosures as per Accounting Standard 18.

Names of related party and nature of related party relationship:

Associates

Zeon Life sciences Ltd (Previously known as Mahaan Dairies Ltd)., Mahaan Proteins Ltd., Lacto malt Foods Pvt.

Ltd.. Ace International. Healthy India Nutritional Products Pvt. Ltd. Best Milk Foods Pvt. Ltd.

Key Management Personnel: Mr. Sanjeev Goyal, Managing Director and Mrs. Saloni Goyal, Director

Key Management Personnel's relatives: M/s Rajiv Goyal HUF (HUF of Mr. Rajiv Goyal), Mr. Amar Nath Goyal ( Father of Mr. Sanjeev Goyal), M/s A N Goyal HUF( HUF of father of Mr. Sanjeev Goyal), Mr.Rajiv Goyal ( Brother of Mr. Sanjeev Goyal), Mrs. Shashi Goyal (Mother of Mr. Sanjeev Goyal), Mr.Suresh Garg.Mr.Dalip Chand Garg (Father of Suresh Garg). Mr.Dalip Chand Garg HUF (HUF of Mr. Suresh Garg's Father),Rani Garg (wife of Mr. Suresh Garg)

11 Segment reporting

Business Segments

Based on the guiding principles given in Accounting Standard (AS 17) "Segment Reporting" issued by the Institute of Chartered Accountants of india. the Company's business segments are Dairy (comprising milk powders and Ghee), Non-dairy (comprising maltridexin and base protein) and Energy Drinks. The accounting policies for segment reporting are in line with the accounting policies followed by the company.

Note: Goods manufactured for others:

Glucon - A: The production during the year was 1219 MT (Previous year 4875 MT).

B. Licensed Capacity:

Not applicable, as per notification No. 477(E) dated 25.7.91 issued under the Industries (Development & Regulation) Act, 1956.

C. Installed Capacity:

The products are manufactured in integrated plant, hence product wise installed capacity cannot be given. However, as certified by the Management, the installed capacity is 3.900 MT (Previous year 3,900 MT) for Base Proteins/ Maltodextrine and 6600 MT (Previous year 6,600 MT) for Energy Drinks.

The products viz. Dairy Creamer and Pure Ghee are manufactured in an integrated plant taken on lease, hence product wise installed capacity cannot be given. However, as certified by the Management, the installed capacity is 5000 MT (Previous year 5000 MT) per annum for various types of Milk powders. 2000 MT (Previous year 2000) per annum for Ghee. - 17 General

a. Figures have been rounded off to nearest rupee.

b. Previous year's figures have been regrouped and/or rearranged wherever considered necessary.

c. Schedules A to O form an integral parts of the Accounts and have been duly authenticated.

---

Mar 31, 2010

1. Secured Loans

Secured loans from Financial Institutions and Banks are secured by a mortgage of all the Companys immovable properties both present and future ranking pari-passu inter-se and a charge by way of hypothecation of all the Companys movable properties including stocks of raw materials, semi-finished, finished goods, consumable stores and book debts and other specified movable and also guaranteed by some of the directors of the company. Vehicle finance loans are secured by hypothecation of vehicles amounting to Rs. 21,68,207 (Previous year Rs. 16,59,853) shown under fixed assets.

2. Contingent Liabilities:

Sales Tax 51,80,203 43,30,759

The Company has filed appeal against these liabilities and has been advised that there will not be any liabilities on this account and consequently no provision has been made in the books of accounts.

3. The Company has not received any confirmation from the suppliers regarding their status of registration under Micro, Small and Medium Enterprises Development Act, 2006, which came into effect from October 2, 2006 and hence disclosure required under the said Act has not been given.

Based upon the information available with the Company, the balance due to the Micro and Small Enterprises as defined under the Micro, Small and Medium Enterprises

Development Act, 2006 is Rs. Nil (Previous year Rs. Nil). Further, no interest during the year has been paid or payable under the terms of the said Act.

4. Unsecured Loans includes Rs. Nil (P.Y. RS. 6,83,409) due to a Director. Sundry Creditors includes Rs. 1,50,000 (P.Y. Rs. 2,83,790) due to a Director.

5. Advances recoverable in cash or in kind or for value to be received includes Rs. 49,44,381 (P.Y. 9,72,536) due from Directors. Maximum amount due during the year Rs. 50,22,142 (P.Y. 10,36,312).

6. Some of balance of debtors, creditors and loans and advances are subject to reconciliation / confirmation from respective parties. No significant impact in expected on the Profit and loss account on this account.

7. Operating Lease

i) The company generally entered into cancelable operating leases for machinery, office and godown premises and residence to its employees, normally renewable on expiry and cancelable at its option.

ii) Lease rent charged to the profit and loss account relating to operating leases are Rs. 1,52,38,414 (FY 2007-08 - Rs. 1,12,41,129)

12 Employee Benefits :

a) Defined Contribution Plans :

The Company charged Rs.11,36,623 (Previous year Rs. 858390) for provident fund contribution to the profit and loss account. The contributions towards these schemes by the Company are at rates specified in the rules of the schemes.

b) Defined Benefit Plans :

i Liability for Gratuity and Privilege leaves is determined on actuarial basis.

ii Gratuity Scheme provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service, except death while in employment.

13 Related Party Disclosures as per Accounting Standard 18.

Names of related party and nature of related party relationship:

Associates:

Zeon Lifesciences Ltd (Previously known as Mahaan Dairies Ltd)., Mahaan Proteins Ltd., Lactomalt Foods Pvt. Ltd., Ace International, Best Milk Foods Pvt. Ltd.

Key Management Personnel:

Mr. Rajiv Goyal, Managing Director and Mr. Suresh Garg, Director

Key Management Personnels relatives:

M/s Rajiv Goyal HUF (HUF of Mr. Rajiv Goyal), Mr. Amar Nath Goyal ( Father of Mr. Rajiv Goyal), M/s A N Goyal HUF( HUF of father of Mr. Rajiv Goyal), Mr. Sanjeev Goyal (Brother of Mr. Rajiv Goyal), Mrs. Shashi Goyal (Mother of Mr. Rajiv Goyal), Mr. Dalip Chand Garg (father of Suresh garg), Mr. Dalip chand garg HUF (HUF of Mr. Suresh Gargs father), Rani Garg (wife of Mr. Suresh Garg)