Notes to Accounts of Mitshi India Ltd.

Mar 31, 2018

1. The debit and credit balances of the Parties are subject to confirmation from them.

2. As per the information available with the Company, there are no overdue principal and/or interest amounts payable to the Suppliers under the Micro Small and Medium Enterprises Development Act,2006 at the close of the financial year.

3. Contingent liabilities not provided for in the accounts: NIL

4. In the opinion of the Board the Current & Non-Current Assets are approximately of the value stated, if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

5. Disclosure of Segment Reporting (Ind AS 108):

The business segment has been considered as the primary segment. The Company is in primarily in the business trading in segment of fruits & vegetable products. There are no export sales.

6. Disclosure of Related party (Ind AS 24):

a) Relationship

(i) Subsidiary Company None

(ii) Associate Concern None

(iii) Key Person (Director) 1. Mr. Kumar V. Shah - Managing Director

(iv) Relative of Key Person Mr. Mitesh K. Shah-Son of Kumar V. Shah

b) Transaction

(i) Key Person (Director) 1. Remuneration

K.V.Shah - Rs.12,00,000/-( P. Y. Rs.9,22,500/-)

2. Unsecured Loan received as at year end.

K.V.Shah - Rs.68,53,260/-(P.Y.Rs.82,04,660/-)

(ii) Relative of Key Person 1. Remuneration

Mitesh K. Shah Rs. 2,00,000/- (PY Rs. NIL)

2. Salary Payable Rs. 1,35.000/- (PYRs. NIL)

7. Disclosure of Taxes on income (Ind AS 12):

No recognition of Net Deferred Tax Assets for significant losses available for set off under the provisions of Income Tax Act, ! 1961 have been made in the Account on prudence basis.

No provision for current tax has been made in the financial statements due to carried forward losses available for set off under the provisions of Income Tax Act, 1961.

8. Disclosure of Leases (ind AS 17):

The Company as a Lessee has taken a premises at Mumbai on operating lease for 11 months. The lease rent for the year

Rs. 560000 (PY Rs. 132000) has been recognized in the profit & loss account.. YV

12. Fair Value Measurements

i. Financial Instruments by Category

The management assessed that the carrying amount of the cash and cash equivalent, trade receivables, trade payables, borrowings and other financial assets and liabilities at amortised cost as disclosed in the financial statements approximate their fair value largely due to the contractual payment terms and short term maturities of these instruments.

ii. Fair Value Hierarchy I

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measure at fair value. To provide an indication about the reliability of the inputs used in determing fair value, the company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table:

iii. Fair value measurement

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 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 are not based on observable market data, the instrument is included in level 3. This is the case for unquoted equity shares.

There have been no transfers among Level 1, Level 2 and Level 3 during the period

iv. Valuation technique used to determine fair value

The fair value of unquoted equity instruments is not significantly different from their carrying value and hence the management has considered their carrying amount as fair value.

v. Valuation processes

The finance department performs the valuations of financial assets and liabilities required for financial reporting purposes, which reports to the audit committee. Discussions of valuation processes and results are held between them regularly in line with the company''s reporting periods.

8 Financial Risk Management

The company''s activity expose it to market risk, liquidity risk and credit risk. The senior Management of the Company overseas the management of these risks.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market priced with risk associated with commodity price risk. The Management monitors the Market prices on regular basis to mitigate the Market risk.

(B) Liquidity risk

Liquidity risk is the risk that a company may encounter difficulties in meeting its obligations associated, with financial liabilities that are settled by delivering cash or other financial assets.. The Company has liabilities of Trade payable and other payable excluding borrowing from a Director which are expected to mature within 12 months as on 31 st March,2018 Rs92,67,687/- against which the Company has current assets to the tune of Rs.1,81,22,591/- and hence the management monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs.

(A) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

i. Credit risk management

To manage the credit risk, Company periodically assesses the financial reliability of customers; taking into account factors such as credit track record in the market and past dealings with the company for extension of credit to Customer. Company monitors the payment track record of the customers, restrict credit limit, credit rating etc. Concentrations of credit risk are limited as majority of transactions are done on cash on delivery basis which mitigate the credit risk.

ii. Provision for expected credit losses-Trade Receivables

The company follows expected credit loss method ‘for recognition of loss allowance on Trade receivables. The Trade receivables of the Company are less than one year and hence no provision is required as the Management is estimating making provision @ 100% if the invoice is unrealized for more than 2 years from its due date.

9. Capital Management:

For the purpose of the company’s capital management, capital includes issued equity capital,, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company is not exposed to any externally imposed capital requirements. The Net worth of the Company as on 31st March,2018 is positive to the extent of Rs. 35,75,113/-,

10. The provisions of PF, ESI .Bonus and Gratuity Acts are not applicable to the Company as there are no employees covered under the said Acts.

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Mar 31, 2015

1. The debit and credit balances of the Parties including are subject to confirmation from them.

2. As per the information available with the Company, there are no overdue principal and/or interest amounts payable to the Suppliers under the Micro Small and Medium Enterprises Development Act, 2006 at the close of the financial year.

3. Contingent liabilities Rs.1,03,848/- not provided in the accounts in the absence of the order copy by cex department some Rs. 35,000/- paid by CMD from his personal account.

4. The accumulated losses as on 31st march. 2015 exceeds the Net Worth of the Company. The Company has incurred net cash losses during the current and the previous years and the liabilities exceeds the assets. However, the Accounts are prepared on the basis that the Company is a going concern as the Company has successfully relisted the Company on the Bombay Stock Exchange during the current financial year and have taken necessary steps to revive the business operations of the Company. The Company foresee its better future prospects.

5. In the opinion of the Board the Current Assets, Loans & Advances are approximately of the value stated. if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

6. Previous year figures are regrouped and re-arranged wherever necessary so as to make them comparable with those of the current year's figures.

7. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of Segment Reporting is required.

8. Disclosure of Related party (Accounting Standard 17):

a) Relationship

(i) Subsidiary Company None

(ii) Associate Concern None

(iii) Key Person (Director) 1. Mr. Kumar V. Shah - Managing Director

b) Transaction

(i) Key Persons (Director) 1. Remuneration M. D. K.V.Shah - Rs. 90000/- (P.Y. Rs. 90000/-)

9. Disclosure of Taxes on income ( Accounting Standard 22):

No recognition of Net Deferred Tax Assets over the Deferred tax liability have been made in the Account for the carried forward unabsorbed depreciation available for set off under the provisions of Income Tax Act, 1961 due to non existence of supporting evidence for availability of future taxable Income.

10. Disclosure of Leases ( Accounting Standard 19):

The Company as a Lessee had taken office premises at Andheri (w), Mumbai on operating lease for 11 months which expired during the year. The lease rent for the year Rs. 33000 (PY Rs. 66000) has been recognized in the profit & loss account.

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Mar 31, 2014

1. Terms/rights attached to equity shares

The company has only one class of equity shares having a face value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

2. The debit and credit balances of the Parties including are subject to confirmation from them.

3. The Company does not have a whole time secretary as required by the provisions of section 383-A of the Companies Act, 1956.

4. As per the information available with the Company, there are no overdue principal and/or interest amounts payable to the Suppliers under the Micro Small and Medium Enterprises Development Act, 2006 at the close of the financial year.

5. Contingent liabilities not provided for in the accounts: NIL

6. The accumulated losses as on 31st March 2014 exceeds the Net Worth of the Company; however, the Accounts are prepared on the basis that the Company is a going concern.

7. In the opinion of the Board the Current Assets, Loans & Advances are approximately of the value stated. if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

8. Previous year figures are regrouped and re-arranged wherever necessary so as to make them comparable with those of the current year''s figures.

9. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of Segment Reporting is required.

10. Disclosure of Taxes on income (Accounting Standard 22):

No recognition of Net Deferred Tax Assets have been made in the Account for the carried forward unabsorbed deprecation available for set off under the provisions of Income Tax Act, 1961 due to non existence of supporting evidence for availability of future taxable Income.

11. Disclosure of Leases (Accounting Standard 19):

The Company as a Lessee had taken office premises at Vile Parle, Mumbai on operating lease for 11 months which expired during the year. The lease rent for the year Rs.66000 (PY Rs.132000) has been recognized in the profit & loss account.

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Mar 31, 2013

1. The debit and credit balances of the Parties including debtors, creditors and loans & advances are subject to confirmation from them.

2. The Company does not have a whole time secretary as required by the provisions of section 383-Aof the Companies Act, 1956.

3. As per the information available with the Company, there are no principal and/or interest amounts payable to the Suppliers under the Micro Small and Medium Enterprises Development Act,2006 at the close of the financial year.

4. Contingent liabilities/assets not provided for in the accounts:

a) Claim of SICOM for recovery of loans with interest Rs. NIL (Previous year-Rs. 227 lacs) which was disputed by the Company.

b) The matter relating to grant of eligible benefits from the Eligible Certificate issued by Maharashtra State Government (SICOM) is pending before the Hon''ble Supreme Court of India which is admitted in Company''s favour and if the final order comes in Company''s favour then Company will be entitled to claim various benefits/damages/losses/interest from the Maharashtra State Government (SICOM) which is estimated at around Rs. 23.60 crores (Previous year Rs. 20 crores).

5. The accumulated losses as on 31 st March. 2013 exceeds the Net Worthof the Company; however, the Accounts are prepared on the basis that the Company is a going concern.

6. in the opinion of the Board the CurrentAssets, Loans &Advances are approximately of the value stated, if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

7. Previous year figures are regrouped and re-arranged wherever necessary so as to make them comparable with" those of the current year''s figures.

8. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of Segment Reporting is required.

9. Disclosure of Taxes on income (Accounting Standard 22):

No recognition of Net Deferred Tax Assets have been made in the Accounts related to carried forward losses available for set off under the provisions of Income Tax Act, 1961 due to non existence of virtual certainty supported by convincing evidence for availability of future taxable Income.

10. Disclosure of Leases (Accounting Standard 19):

The Company as a Lessee has taken office premises at Vile Parle, Mumbai on operating lease for 11 months. The lease rent for the year Rs.132000 (PY Rs.5500) has been recognized in the profit& loss account.

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Mar 31, 2012

Terms/rights attached to equity shares

The company has only one class of equity shares having a face value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

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.

1. The debit and credit balances of the Parties including are subject to confirmation from them.

2. The Company does not have a whole time secretary as required by the provisions of section 383-A of the Companies Act, 1956.

3. As per the information available with the Company, there are no principal and/or interest amounts payable to the Suppliers under the Micro Small and Medium Enterprises Development Act,2006 at the close of the financial year.

4. Contingent liabilities/assets not provided for in the accounts:

a) Claim of SICOM for recovery of loans with interest-Rs. 227 lacs which is disputed by the Company.

b) The matter relating to grant of eligible benefits from the Eligible Certificate issued by SICOM is pending before the Hon'ble Supreme Court of India which is admitted in Company's favour and if the final order comes in Company's favour then Company will be entitled to claim various benefits/damages/losses/Interest from the SIcOm which is estimated at around Rs. 20.0 crores.

5. The accumulated losses as on 31st March. 2012 exceeds the Net Worth of the Company; however, the Accounts are prepared on the basis that the Company is a going concern.

6. In the opinion of the Board the Current Assets, Loans & Advances are approximately of the value stated. if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

7. During the year ended 31 March, 2012, the revised Schedule VI notified under the Companies Act 1956, has become'' applicable to the Company for preparation and presentation of its financial statements. It has significant impact on presentation and disclosures made in the financial statements. Previous year figures are regrouped and re-arranged so as to make them comparable with those of the current year's figures as per the revised Schedule VI.

8. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of Segment Reporting is required.

9. Disclosure of Taxes on income ( Accounting Standard 22):

No recognition of Net Deferred Tax Assets have been made in the Accounts related to carried forward losses available for set off under the provisions of Income Tax Act, 1961 due to non existence of virtual certainty supporter y convincing evidence for availability of future taxable Income.

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Mar 31, 2011

1. In the opinion of the Board the Current Assets, Loans & Advances are approximately of the value stated. if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

2. The debit and credit balances of the Parties including secured and unsecured loans are subject to confirmation from them.

3. The Company has not constituted the Audit Committee as required by the provisions of Section 292A and does not have a whole time secretary as required by the provisions of section 383-A of the Companies Act, 1956.

4. No provision for taxation has been made in the absence of taxable income and c/f losses available for set- off under the Income-tax Act, 1961.

5. In the absence of information regarding status of Suppliers as defined under the Micro Small and Medium Enterprises Development Act,2006, the amounts overdue and remaining unpaid on account of principal and/or interest at the close of the financial year to the Suppliers could not be determined. Accordingly the disclosures of the amounts due to the Creditors belonging to Micro Small and Medium Enterprises Development Act,2006 as required under the amended Schedule VI to the Companies Act, 1956 have not been made.

6. Contingent liabilities/assets not provided for in the accounts:

a) Claim of SICOM for recovery of loans with interest-Rs. 227 lacs which is disputed by the Company.

b) The matter relating to grant of eligible benefits from the Eligible Certificate issued by SICOM is before the Hon'ble Supreme Court of India which is admitted in Company's favor and if the final order comes in Company's favor then Company will be entitle to claim various benefits/ damages / losses /Interest from the SICOM which is estimated at around Rs.17.0 crores.

7. The accumulated losses as on 31st March. 2011 exceeds the Net Worth of the Company; However, the Accounts are prepared on the basis that the Company is a going concern.

8. Previous year figures are regrouped and re-arranged wherever necessary so as to make them comparable with those of the current year.

9. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of Segment Reporting is required.

10. Disclosure of Taxes on income ( Accounting Standard 22):

No recognition of Net Deferred Tax Assets have been made in the Account in view of existence of huge carried forward and unabsorbed deprecation available for set off under the provisions of Income Tax Act, 1961 and non existence of supporting evidence for availability of future taxable Income.

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Mar 31, 2010

1. In the opinion of the Board the Current Assets, Loans & Advances are approximately of the value stated. if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.

2. The debit and credit balances of the Parties including secured and unsecured loans aresubject to confirmation from them.

3. The Company has not constituted the Audit Committee as required by the provisions of Section 292A and does not have a whole time secretary as required by the provisions of section 383-A of the Companies Act, 1956.

4. No provision for taxation has been made in the absence of taxable income and c/f losses available for set- off under the Income-tax Act, 1961.

5. In the absence of information regarding status of Suppliers as defined under the Micro Small and Medium Enterprises Development Act,2006, the amounts overdue and remaining unpaid on account of principal and/or interest at the close of the financial year to the Suppliers could not be determined. Accordingly the disclosures of the amounts due to the Creditors belonging to Micro Small and Medium Enterprises Development Act,2006 as required under the amended Schedule VI to the Companies Act, 1956 have not been made.

6. Contingent liabilities/assets not provided for in the accounts:

a) Claim of SICOM for recovery of loans with interest-Rs. 227 lacs which is disputed by the Company.

b) The matter relating to grant of eligible benefits from the Eligible Certificate issued by SICOM is before the Hon'ble Supreme Court of India which is admitted in Company's favor and if the final order comes in Company's favor then Company will be entitle to claim various benefits/ damages / losses /Interest from the SICOM which is estimated at around Rs.15.60 crores.

7. The accumulated losses as on 31st March. 2010 exceeds the Net Worth of the Company; However, the Accounts are prepared on the basis that the Company is a going concern.

8. Previous year figures are regrouped and re-arranged wherever necessary so as to make them comparable with those of the current year.

9. Disclosure of Segment Reporting (Accounting Standard 17):

The business segment has been considered as the primary segment. The main segment of the Company is manufacture and trading of Chemicals & Allied Products namely Paints, Thinners / industrial Solvents, Alkyed Resin & other Chemicals which is the only segment of the Company and hence no separate disclosure of ,

10. Disclosure of Taxes on income ( Accounting Standard 22):

No recognition of Net Deferred Tax Assets have been made in the Account in view of existence of huge carried forward and unabsorbed deprecation available for set off under the provisions of Income Tax Act, 1961 and non existence of supporting evidence for availability of future taxable Income.