Notes to Accounts of RCL Foods Ltd.

Mar 31, 2015

A) Terms / rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs.10. Each holder of equity shares is entitled to one vote per share held..

None of the shareholders hold more than 5% of the aggregate shares of the company as on 31st March, 2015.

1. Segment reporting

The Company is engaged in a business of manufacturing and trading of food and processed foods and the operations primarily cater to the needs of the domestic market. Accordingly there are no separate reportable segments according to AS 17 'Segment Reporting' issued under the Companies (Accounting Standards) Rules, 2006.

2. Micro, Small and Medium Enterprises Development Act, 2006

The management has not identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, it is not feasible to furnish the disclosure in respect of the amount payable to such enterprises as at 31 March, 2015.

Based on actuarial valuation necessary provision has been created in the books to meet the liability as per Accounting Standard 15 (R).

The following table sets out the status of the gratuity plan as required under AS 15 (Revised 2005). Reconciliation of opening and closing balances of the present value of the defined benefit obligation.

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Mar 31, 2014

1) Terms / rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs.10. Each holder of equity shares is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Company declares dividend in Indian rupees and pays dividend to shareholders outside India in foreign currency based on the rates prevailing on the date of such remittances, with respect to other shareholders, dividend is paid in Indian rupees.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. During the year ended March 31, 2014, the Company has not declared any dividend.

2 Contingent Liabilities And Commitments: As at As at i) Contingent Liabilites 31-Mar-14 31-Mar-13

Claims against the company not acknowledged as debts - -

ii) Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for 825,315 680,992

3 Segment reporting

The Company is engaged into only one business namely manufacturing and trading of food and processed foods and the operations primarily cater to the needs of the domestic market. Accordingly there are no separate reportable segments according to AS 17 ''Segment Reporting'' issued under the Companies (Accounting Standards) Rules, 2006.

4 Micro, Small and Medium Enterprises Development Act, 2006

The management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amount payable to such enterprises as at 31 March, 2014 has been made in the financial statements based on information received and available with the Company, to the extent identified by the management and relied upon by the auditors. The details of overdue amount and interest payable are set out

5 Previous years figures have been regrouped/rearranged wherever necessary.

6 Background

RCL Foods Limited was originally Incorporated on 02.11.1992 in the State of Orissa in the name and style of ''Passari cellulose

Private Limited'' which was subsequently changed to "RCL Foods Limited" on 04.08.2010 having its registered office in Chennai. The Company is engaged in the business of manufacturing and trading of food and processed foods.

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Mar 31, 2013

1 Segment reporting

The Company is engaged into only one business namely manufacturing and trading of food and processed foods and the operations primarily cater to the needs of the domestic market. Accordingly there are no separate reportable segments according to AS 17 ''Segment Reporting'' issued under the Companies (Accounting Standards) Rules, 2006.

2 Micro, Small and Medium Enterprises Development Act, 2006

The management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amount payable to such enterprises as at 31 March, 2013 has been made in the financial statements based on information received and available with the Company, to the extent identified by the management and relied upon by the auditors. The details of overdue amount and interest payable are set out below.

3 Background

RCL Foods Limited was originally Incorporated on 02.11.1992 in the State of Orissa in the name and style of ''Passari cellulose Private Limited'' which was subsequently changed to "RCL Foods Limited" on 04.08.2010 having its registered office in Chennai. The Company is engaged in the business of manufacturing and trading of food and processed foods.

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Mar 31, 2012

The estimate of future salary escalantion considered in the acturial valuation has taken into account inflation rate, security, promotion and other relevant factors such as supply and demand in the employee market.

Previous years figures have been regrouped/rearranged wherever necessary.

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Mar 31, 2011

1. Related Party Disclosures under AS 18:

(a) The list of related parties as identified by the management are as under: Key management personnel of the company

Director Mr. Nitesh Lodha

2.Contingent Liabilities:

(a) Estimated amt of contracts remaining to be executed on capital account NIL Nil

3. The Company has not received intimation from the Suppliers regarding SSI Status and status under Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures , if any, relating to the amounts unpaid as at the year end together with interest paid/payable as required under the Act not furnished.

4. In the opinion of the Board, Current Assets, Loans & Advances have value on realization in the ordinary course of business approximately the same at which these are stated in the Balance Sheet and provision for all known liabilities have been made and the same are not in excess of the amount reasonably necessary.

5. Employee benefits Obligations:

Defined contribution plans:

The company is yet to devise a scheme/fund for defined contribution plan towards Provident and other Funds.

Defined Benefit Plans:

The company offers its employees defined benefit plans in the form of gratuity (a lump sum amount). Benefits under the defined benefit plans are based on years of service and the employees last drawn salary immediately before exit. The gratuity scheme covers substantially all regular employees. However the company has not created any fund in accordance with the scheme. Commitments are actuarially determined at year end. On adoption of the revised Accounting Standard (AS 15) on “Employee Benefits” notified under the Companies (Accounting Standards) Rules, 2006, actuarial valuation is done based on "Projected Unit Credit Method". Gains and loss of changed actuarial assumptions are charged to Profit & Loss Account.

The Institute of Chartered Accountants of India, in May 2007 released its Guidance on the implementation of the Revised Accounting Standard on "Employee Benefits" (AS 15 Revised 2005). The present value of the obligation, Actuarial assumptions and its charge to the Profit & Loss Account and has been adopted by the company in the financial year.

6. Previous Years figures have been regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2010

1.Fixed Assets :

(a) The Company has during the year fully written off the depreciated value of the assets which are not in working conditions and nil residual value at Orissa Plant in terms of Accounting Standards 28.

(b) The Company has also disposed off the remaining fixed assets pertaining to Orissa Plant as the Company has not been carrying on any manufacturing activity since February, 2004.

(c) The Company has incurred Loss of Rs.14,181.87 on account of disposal of the undertaking and to that extent loss of the company is increased during the year.

(d) However the disposal of assets at Orissa Plant has not affected its going concern status, since the Company has switched over to different manufacturing activity.

2. Inventories:

(a) Raw materials and stores are valued at cost. Cost includes sales tax and all other charges up to the point of receipts but net of tax credit recoverable from tax authorities, wherever applicable. Finished goods are valued at lower of market value or estimated cost of production.

(b) The stock of raw materials and Finished goods of Rs.3.76 lakhs at Orissa Plant has been determined by the Management after verification as unusable, and declared as Obsolete stock, with no residual value and hence written off during the year.

3.Contingent Liabilities:

(a) Estimated amt of contracts remaining to be executed on capital account NIL Nil

4. The Company has not received intimation from the Suppliers regarding SSI Status and status under Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures , if any, relating to the amounts unpaid as at the year end together with interest paid/payable as required under the Act not furnished.

5. In the opinion of the Board, Current Assets, Loans & Advances have value on realization in the ordinary course of business approximately the same at which these are stated in the Balance Sheet and provision for all known liabilities have been made and the same are not in excess of the amount reasonably necessary.

scheme. Commitments are actuarially determined at year end. On adoption of the revised Accounting Standard (AS 15) on "Employee Benefits" notified under the Companies (Accounting Standards) Rules, 2006, actuarial valuation is done based on "Projected Unit Credit Method". Gains and loss of changed actuarial assumptions are charged to Profit & Loss Account.

The Institute of Chartered Accountants of India, in May 2007 released its Guidance on the implementation of the Revised Accounting Standard on Employee Benefits" (AS 15 Revised 2005). The present value of the obligation, Actuarial assumptions and its charge to the Profit & Loss Account and has been adopted by the company in the financial year.

6.Previous Years figures have been regrouped , rearranged and reclassified wherever necessary.