Notes to Accounts of Paos Industries Ltd.

Mar 31, 2025

K. Provisions and contingencies

"Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a

reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.

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 recognised as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within
the control of the Company or a present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent Assets are only disclosed when it is probable that the economic benefits will flow to the entity."

L. Foreign Currency Transactions

"The Company''s financial statements are presented in INR, which is also it''s functional currency.

Transactions in foreign currencies are initially recorded by the Company at their respective functional currency spot
rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of
exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are
recognised in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency
are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on
translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on
the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognised in
OCI or profit or loss are also recognised in OCI or profit or loss, respectively)."

M. Retirement and Other Employee Benefits

"Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation,
other than the contribution payable to the provident fund. The Company recognizes contribution payable to the
provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the
scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to
the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid
exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset
to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.

Gratuity

The Gratuity plan is governed by Payment of Gratuity act, 1972. Under the act, employee who has completed five years
of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and
salary at retirement age. The entity has defined benefit gratuity plan in India (unfunded). The entity''s defined benefit
gratuity plan is a final salary plan for employees. The cost of providing benefits under the defined benefit plan is
determined using the projected unit credit method."

N. Financial instruments

"A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial
recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for
managing them. With the exception of trade receivables that do not contain a significant financing component or for
which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value
plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do
not contain a significant financing component or for which the Company has applied the practical expedient are
measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in section (c) Revenue
from contracts with customers.

The Company''s business model for managing financial assets refers to how it manages its financial assets in order to
generate cash flows. The business model determines whether cash flows will result from collecting contractual cash
flows, selling the financial assets, or both. Financial assets classified and measured at fair value are held within a
business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets
classified and measured at fair value through OCI are held within a business model with the objective of both holding to
collect contractual cash flows and selling.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or
convention in the marketplace (regular way trades) are recognised on the trade date, i.e., the date that the Company
commits to purchase or sell the asset. "

O. Impairment of assets

"The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s
recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value
less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset
does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the
carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount."

Other Accounting Policies

P. Fair value measurement

"The Company measures financial instruments at fair value which is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair
value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place
either:

? In the principal market for the asset or liability, or

? In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use."
"The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:

? Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

? Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable

? Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company''s management determines the policies and procedures for both recurring fair value measurement, such
as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement,
such as assets held for sale in discontinued operations. "

"For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of
the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant
notes.

? Disclosures for valuation methods, significant estimates and assumptions (notes 42, 45)

? Contingent consideration - no Consideration is due

? Quantitative disclosures of fair value measurement hierarchy (note 44)

? Investment in unquoted equity shares (discontinued operations)

? Property, plant and equipment under revaluation model (note 3)

? Investment properties

? Financial instruments (including those carried at amortised cost) (note 43)"

Q. Government Grants

"Government grants are recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with.

When the grant, if any, relates to an expense item, it is recognised as income on a systematic basis over the periods that
the related costs, for which it is intended to compensate, are expensed.

When the grant, if any, relates to an asset, it is recognised as income in equal amounts over the expected useful life of
the related asset.

When the Company receives grants, if any, of non-monetary assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the
underlying asset i.e. by equal annual instalments.

When loans or similar assistance are provided by governments or related institutions, with an interest rate below the
current applicable market rate, the effect of this favorable interest is regarded as a government grant. The loan or
assistance is initially recognised and measured at fair value and the government grant is measured as the difference
between the initial carrying value of the loan and the proceeds received. The loan is subsequently measured as per the
accounting policy applicable to financial liabilities."

14.4 Other notes

- The Company has not reserved any shares for issue under options and contracts/ commitments for the sale of shares/ disinvestments as at balance sheet
date,

-No shares issued for consideration other than cash during the preceding five years,

- The company has neither issued bonus shares nor has bought back any shares during last 5 years.

-No Securities convertible into Equity/ Preference shares have been issued by the Company during the year,

-No calls are unpaid by any director or officer of the Company during the year,

-Details ofsharesheld by holding company or its ultimate holding company ortheir subsidiaries or associates :-
''There is no holding / ultimate holding company of the company.

45 Financial risk management objectives and policies

The Company’s principal financ ial liabilities comprise borrowings, lease liabilities, trade payables and other payables. The main purpose of these financial
liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade receivables, security deposits and cash and cash
equivalents that derive directly from its operations.

The Company is exposed to various risks in relation to these financial instruments. The main types of financial risks are market risk, credit risk and liquidity
risk. The Company’s senior management oversees the management of these risks. It is the Company’s policy that no trading in derivatives for speculative
purposes may be undertaken. The policies for managing each of these risks are summarised below.

A) Market risk

Market risk is the risk that the fair value of the future cash flows of a financial instrument may fluctuate due to change in market price. The value of a
financial instruments may change as result of change in interest rates, foreign currency exchange rates and other market changes that affect market risk
sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables, payables, deposits,
loans & borrowings.

The Company manages its market risk through a treasury department, which evaluate and exercise independent control over process of market risk
management. This department recommends risk management objective & policies, which are approved by the management. The activities of this
department, includes management of cash resources, borrowing strategies and ensuring compliance with market risk limits and policies.

B) Interest rate risk

Interest rate risk is the risk the fair value or future cash flows of financial instrument will fluctuate because of changes in market interest rates. The
Company''s exposure to the risk of changes in market interest rates is primarily related to the company''s long term & short term debt obligations with
floating and fixed interest rates.

The Company manages its interest rate risk by having a portfolio of fixed and variable rate loans and borrowings. In order to optimize the Company''s
position with regards to interest income and interest expense. The company performs a comprehensive interest rate risk by proportion to fixed and floating
rate as well as by using different types of economic products of floating rates of borrowings in its total portfolio.

For reporting of Inventory

i} The difference in Inventory is due to the cost of inventories included in financial statements on account of sales not considered, for the risk and rewards
not transferred in view of compliance of Ind AS 115.

ii) Overhead cost is not arriving in books, while in stock statement its taken manually. Stock lying at production floor ( In System at different location ),
service items doesn’t taken up while submission of stock statement

For reporting of Debtors

i) Difference due to rebate and discount Invoices booked after submission of stock statement

ii) The amount excluded from financial statements on account of sales not considered for the risk and rewards not transferred in view of compliance of Ind
AS 115

For reporting of Creditors

Difference due to account for of invoices, provisions taken in the books after submission of stock statement. Buyer credit (non fund based limit) is
considered for stock statement which was alloted by bank on reporting date but pending for availment.

47 Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and ail 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 monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company’s policy is to keep
the gearing ratio between 0% and 15%. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents,
excluding discontinued operations.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants
attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit
the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in
the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and 31 March 2024.

48 Other Statu to ry in forma tiou

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Beuaini
property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act,
1956 except as presented in the financial statements wherever applicable.

(iii) There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency duiing the year.

(v) The Company has 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.

(ii) There are no transactions which are not recorded in the books of accounts 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).

(vii) The Company is not a wilful defaulter as declared by any bank or financial Institution or any other lender.

(viii) All the borrowings of the company are used for the specific purpose for which it was taken.

(ix) Dui ing the year, the Company has entered into business transfer agreement (BTA) on 16 July 2024 with M/s National Soap Mills (a related party) for
acquisition of business undertaking (i.e. Assets, Liabilities, Movable Property, Licenses and Employees) of M/s National Soap Mills. The Purchase
consideration w^ras discharged through issue of 8% Non convertible debentures by the company. Details of the net assets and liabilities acquired as on the

(x) During tlie year the company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of
funds) to any other person or entity including foreign entities (intermediaries} with the understanding (whether recorded in writing or otherwise) that the
intermediary shall (i) directly or indirectly lend or invest in other person or entities identified in any maimer whatsoever by or on behalf of company
(ultimate beneficiaries) or (ii) provide any guarantee, security or the like to or behalf of the ultimate beneficiaries

(xi) The Company has not received any fund horn any person(s) or entity(ies) including foreign entities (funding party) with the understanding (whether
recorded in writing or otherwise) that the Company shall (i) directly or indirectly lender invest in any manner whatsoever by or on behalf of the funding
party (ultimate beneficiaries) or (ii) provide any guarantee, security or the to or behalf of the (ultimate beneficiaries) or (iii) provide any guarantee, security
or the like to or on behalf of the ultimate beneficiaries.

49 Maintenance of Books of accounts under Section 128 of the Companies Act, 2013

The Company has defined process to take daily back-up of books of account maintained electronically (a) an accounting application does not support
maintenance of logs of backups taken on the daily basis; (b) there has been no instances where there are delays in taking backup in accounting application.
The management is in the proc ess of taking necessary steps to configure systems to ensure the logs of daily backup for books of account is maintained in
order to ensure compliance with the requirements of the applicable statute

50. There was no significant adjusting events that occurrred subsequent to the reporting period other than the events disclosed the relevent notes.

51 The information as at and for the year ended March 31, 2024, has been reclassified from the financial statements previously presented to confirm to the
presentation of the financial statements for the year ended March 31, 2025.

52. There was no significant adjusting events that occurrred subsequent to the reporting period other than the events disclosed the
relevent notes.

In terms of our report attached. For and on behalf of the Board of Directors

For Rakshit Khosla & Associates
Chartered Accountants

FirmRegn. No. 017151N SanjeevBansal RamaBansal

Managing Director Director

DIN : 00057485 DIN : 08156375

Pooja Sharma Place: Ludhiana Place: Ludhiana

Partner Date: 29 May, 2025 Date: 29 May, 2025

Membership No. 562557

UDIN:- 25562557BMKOHG6671

Daljeet Singh Varinder Kumar

Place: Ludhiana Company Secretary CFO

Date: 29May, 2025 Membership No.: 42211

Place: Ludhiana Place: Ludhiana

Date : 29 May, 2025 Date : 29 May, 2025

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Mar 31, 2024

(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends on shares in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Company lias not proposed any dividend during the year.

In the event of liquidation of the Company, the holders of equity shares will be entiled to receive any of the remaining assests of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

(a) Financial Instrument

300000 10% Redeemable Non cumulative participative prefeience shares of Face value Rs.100/- eadi issued to promoters of the companies. The preference shares shall be redeemable at the option of die Company but in any case not later than 20 rears from die date of issue i.e. 200000 Shares on 13.03.2009 and 100000 Shares on 20.03.2009. The instrument is financial instrument.

(*) These unsecured loans are not public deposits but interest tree loans by the promoter directors and initially die loan was provided by die promoter directors pursuant to stipulations imposed by die company bankers and upon slippage of company''s bank accounts into Non Performing Asset (NPA); the part of bank liabilities have been paid by obtaining diese loans from promoter directors. The company is obliged to pay off diese unsecured interest free loans and is expected to repay the same widnn the time period as decided by board.

These borrowings from dnectois are interest free and presently die exact date of dieu repayment is not certain because die company is not carrying on any commercial or business activity and does not have any operating assets as on date to repay it, hence its classification as per Lid AS is not presendy feasible. However, diese loans are financial liability and have been presented and disclosed under Non-Current Borrowings considering diem to be not being paid within One year.

300000 10% Redeemable Non-cumulative Participative Preference Shares of Rs.100/- each issued pursuant to Special Resolution dated 30.09.2008 out of which 200000 Shares issued on 13.03.2009 and 100000 Shares issued on 20.03.2009.

Terms of Preference Shares

1 Tire said Preference Shares shall carry a right to fixed preferential dividend of 10% per annum in relation to the capital paid thereon.

2 Hie holders of die said shares shall have a right to attend dieir class meetings and shall be entitled to vote on resolutions affecting their right direcdy.

3 Hie preference shares shall rank in pnonty to die equity share holders for payment of dividend or arrears of dividend.

4 111 winding up the preference shares shall rank in pnonty to the equity shareholders for repayment of capital and payment of arrears of dividend and shall also have a right to participate in die surplus assets of die Company.

5 Hie preference shares shall be redeemable at die option of the Company but in any case not later dian 20 years from the date of issue.

6 All die preference shares may be redeemed simultaneously or in parts issued to die preference share holders on pro-rata basis.

22 Risk Management 22A Capital Risk

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity it stives attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of capital.

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 return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted).

22B Financial Instruments

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income & expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are as disclosed in Note no. 3 to the financial statements.

The management considers that the carrying amount of financials assets & financial liabilities recognised in the financial statement approximate their fair^- values.

Tire Company has ceased to be a Partner in M/s Paos Productions w.e.f 01.10.2023. Hence, there is no investment in Joint Venture as on 31.03.2024.

22C Financial Risk management objectives and policies

Tire Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

Tire Company’s financial liabilities comprise of borrowings, trade payable and other liabilities to manage its operation and financial assets includes trade receivables and other receivables etc. that arise from its operation.

Tire Company has instituted a self governed Risk Management framework based on identification of potential risk areas, evaluation of risk intensity, and dearcut risk mitigation policies, plans and procedures both at the enterprise and operating levels. The framework seeks to facilitate a common organisational understanding of the exposure to various risks and uncertainties at an early stage, followed by timely and effective mitigation. The Audit Committee of the Board reviews the risk management framework at periodic intervals. Out risk management procedures ensure that the management controls various business related risks through means of a properly defined framework

22D Market Risk

Market Risk is the risk that changes in market prices such as foreign exchange rates will effect groups income or value of its holding financial assets/ instruments. Tire company does not have significant foreign exchange risk

22~R Credit risk

Credit risk refers to the risk of default on its obligation by die customer / counter party resulting in a financial loss. Hie maximum exposure to die credit risk at die reporting date is carrying value of respective financial assets. Tlie company lias very insignificant credit risk as no major financial assets as at balance sheet date.

22F Liquidity Risk

Hie Company’s principle sources of liquidity are cash and cash equivalents and current investments. Hie Company 23 Segment Information

The Company had entered into a Joint Venture by becoming a Partner in a Partnership Firm namely ^£tPAOS Productions” which is engaged in the business of laundry soap, toilet soap and detergents powders formulations without manufacturing of LABSA facility. However, it has withdrawn its Parternship in the said Joint Venture with effect from 01-10-2023. Now the company is no more partner and member of Jomt Venture with effect from 01-10-2023. The Company was earlier operating in only one business segment viz. “Manufacturing of Vanaspati & refining of Oils”, which was the reportable segment in accordance with die requirements of Ind AS -108 on “Operating Segments”, prescribed by Companies (Indian Accounting Standards) Rules 2015. Since the Company is not into direct operations, hence the requirement of giving geographical segment note is not applicable to the company.

28 Contingent liabilities and contingent assets : NIL

29 Micro, Small and Medium Enterprises

As tlie company is not into commercial operations as such it lias no trade cr editors, therefore, the company is not required to obtain intimation from the suppliers regarding status under the Micro, Small and Medium Enterprises Development Act, 2006 (the ''Act’) and hence disclosure regarding following lias not been provided.

1. Amount due and outstanding to suppliers as at die end of the accounting year.

2 Interest paid during die year.

3. Interest payable at the end of the accounting year.

4. Interest accrued and unpaid at die end of the accounting year.

30 The Previous Year''s figures have been regrouped/reclassified, wherever necessary to conform to die current period presentation ADDITIONAL REGULATORY DISCLOSURES AS PER SCHEDULE III OF COMPANIES ACT, 2013

(i) In respect of die Title deeds of die immovable properties : - The Company does not have any Immovable property.

(ii) As per die Company''s accounting policy, Property, Plant and Equipment and intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence die revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to die Companies Act, is not applicable.

(iii) The Company has not granted Loans or Advances in die nature of loan to any promoters, Directors, KMFs and die related parties (As per Companies Act, 2013), which are repayable on demand or widiout specifying any terms or period of repayments.

(iv) There is no capital work in progress.

(vi) No proceedings have been initiated or pending against the Company for holding any Benami property under die Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(vii) The Company does not have any sanctioned facility from any Bank or Financial Institutions.

(vm) The Company lias not been declared as wilful defaulter by any bank or tinanaal institution or government or any government authority.

(is) There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 or Section 560 of the Companies Act, 1956 duruig the year ended 31st March 2024.

(s) As the company does not have any sanctioned facilities from any bank or financial institutions disclosure relating to registration or satisfaction of charges is not applicable.

(si) The Company lias complied with the number of layers prescnbed under clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restnction on number of Layers) Rules, 2017.

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Mar 31, 2010

1. CONTINGENT LIABILITIES NOT PROVIDED FOR;

i) Letter of Credit outstanding Rs. 607.00 Lacs (Previous Year Rs. 1133.76 Lacs).

ii) Claims against the company not acknowledged as debt are:

- Sales Tax pending in appeals Rs.2.23 Lacs (Previous Year Rs. 2.23 lacs)

2. The Gratuity is being charged to profit & loss account in the year in which it is paid. The liability for gratuity as on 31/03/2010 is Rs.16.71,664/- (Previous year Rs. 12,04,923/-).

3. Sundry Debtors, Loans and Advances include a sum of Rs. 17,92,532/- recoverable as claim from certain parties which are considered doubtful, against which the management is taking effective steps for recovery.

4. In the opinion of the Board of Directors, the Current Assets, Loans and Advances have the value on realisation in the ordinary course of business at least equal to the amount at which they are stated except as expressly stated otherwise.

5. There are no Micro and Small Enterprises under The Micro, Small and Medium Enterprises Development Act, 2006 to whom the Company owes dues. The above information and that given in Sundry Liabilities - Schedule 11 regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

6. Amounts Paid to Auditors:

i Statutory Auditors

Audit Fees Rs.33,090/-

Taxation/Other Matters Rs. 16.5457-

Total:- Rs.49.635/-

ii) Cost Audit Fees Rs.14.000/-

Others Matters Rs. 2.500/-

Rs.16.500/-

7. Segmental Information:

The Company is a single segment company engaged in manufacturing of hydrogenated vegetable oils and the related products like Vanaspati and Refined oils. Accordingly the disclosure requirement as prescribed in the Accounting Standard 17 on "Segment Reporting" issued by The Institute of Chartered Accountants of India is not applicable.

8. Deferred Income Tax: The company has considered deferred tax adjustments in accordance with Accounting Standard-22 on "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India, after reviewing the status of the same as at the end of the accounting year, necessary differential adjustments has been reflected in profit & loss a/c for the current year.

9. Remuneration paid to Whole time directors) is Rs. 15,38,951/- (P.Y. 12,34,800/-).

10. Debit and credit balances, on whatever account, are subject to confirmation from the respective parties.

11. The previous year figures have been regrouped and recasted wherever necessary to make them comparable with the current year figures.

12. Additional information pursuant to para 3 & 4 of Part- II of schedule VI to the Companies Act, 1956 (to the extent applicable) is attached herewith.

13. Information pursuant to part IV of schedule VI to the Companies Act, 1956 is attached herewith.

14. Annexure from "1" to "22" including statement on Significant Accounting Policies form an integral part of the Balance Sheet and Profit & loss Account.