Notes to Accounts of Saboo Sodium Chloro Ltd.

Mar 31, 2015

Note 1.: Sundry balances written off includes Debit Credit balance both. Dr. amount Rs.1440672 & Cr. Amt. Rs.18186

b. Commitments

There are no contracts remained to be executed on capital account

* Estimated amount involved in suits. The company has been advised that the demand is likely not to be raised or deleted substantially and as such no provision is considered necessary

** In AY 2008-09, a disallowance of brought forward depreciation was made totalling to Rs.168.39 lacs which stands confirmed by the first appellate authority. However, the company is advised that there is strong case in favor of the assessee and the Hon'ble ITAT may give a substantial relief in the matter. As such no provision is being made against the same

*** The guarantee given is in respect of Spectrum Foods Ltd. which is a associate concern of the assessed

Note 2: Financial & Derivative Instruments

The company has not entered into any long term contracts including derivative contracts during the year.

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Mar 31, 2014

1. Reserve and Surplus

The above amount of Rs.20,20,000 represents partly paid up money against allotment of shares which was received at the time of prefential allotement of Shares. As stated by the company, despite of full efforts, this amount remained unclaimed and till date the shares remained partly paid up. Hence, this amount is now charged to capital reserve.

2. Long Term Borrowings

1) SBI term Loan (Gandhidham) is secured against Building and Plant and Machinery (Gandhidham).

2) SBI Term Loan (Govindi) is secured against Gwar Gum Plant.

3) BMW Financial Services is secured against car.

4) Sidbi Term Loan is secured against Land at pipla Bharat Singh Ajmer Road Jaipur.

5) Kotak Prime Ltd. loan is secured against vehicles.

6)Terms of repayment are given below:

a) Term Loan taken from SBI (Gandhidham Plant) is repayable in monthly installments of Rs.21,00,000 each.

b)Term Loan taken from SBI is repayable in quarterly installments of Rs.18,75,000 each.

c)Loan Taken from BMW financial services is repayable in monthly EMI of Rs 135782.00 each.

d) Loan taken from SIDBI is repayable in monthly EMI ofRs. 1025000.00 each.

e) Loan taken from Kotak Prime is repayable in Monthlay EMI ofRs.245000.00 each.

3. Short Term Borrowings & Advances

a) Working Capital Loans are secured by first pari passu charge on present and future stock of raw materials, stock-in-process, finished goods, stores and spares, book debts, etc., and second pari passu charge on the Total Fixed Assets.

b) In case of Spectrum Foods Ltd the director of the company is having substantial shareholding above 10% Note 8.3 : Girdhar Gopal saboo is the Managing director of the company and have substantial shareholding of more than 10%.

c) The above short term borrowings (except banks) are explained to be in the nature of business advances, which are to be adjusted against the proposed sale of properties being developed by the company.

4. Liability Towards Employees

a) Out of the above amount, Rs. nil pertain to the Micro, Small and Medium Enterprises (MSME) as defined under " Micro, Small and Medium Enterprises Development Act, 2006” based on the information available with the Company. There is no interest payable to such parties as at March 31, 2014 (March 31, 2013 : Rs. NIL).

5. Short Term Provisions

a) Provision for taxation also includes MAT credit asset created in the preceding year which were to be set off against the regular tax liability of the company in the succeding years. However, no such set off could be made during the year under consideration and as such the provision for taxation is carried forward as such including fresh tax provision for the current year

6. Long Term Loans & Advances

a) The company has Rs.44.58 lacs as MAT credit entitlement as per the return filed for the AY 2012-13. Though, no tax is payable by the company during the year, as a matter of prudence, this MAT credit is continued to be shown as asset as per last year. Due to invisibility of net taxable profit no further MAT credit is accounted for.

7. Short Term Loan And Advances

a) Loans & advances also includes interest free advances made for purchase of shares or making of investments and these loans includes loans to the companies having common directors and shareholders, see note 32 Note 20.2: Out of advances for goods and expanses advances of 48.99 Lacs were due for more than six months.

b) There remains an inventory of self generated Renewal Energy Certificates (RECs) with the company however, the same is not accounted for as there remains uncertainly of realisation of such inventories and as such the same is accounted for as and when sold.

8. Even otherwise, there is negligible value of such inventory and therefore, there is no material impact due to non-accounting of such inventory (Cost basis).

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Mar 31, 2013

Note 1.1:

1) ICICI Loan is Secured against Car

2) SBI term Loan (Gandhidham) is secured against Building and Plant and Machinery (Gandhidham)

3) SBI Term Loan (Govindi) is secured against Gwar Gum Plant

4) BMW Financial Services is secured against car

5)Terms of repayment are given below:

a) Loan taken from ICICI Bank Ltd is repayable in monthly EMI of Rs. 55000.00 each.

b) Term Loan taken from SBI is repayable in quarterly installments of Rs.21,00,000 each.

c)Term Loan taken from SBI is repayable in quarterly installments of Rs. 18,75,000 each. c)Loan Taken from BMW financial services is repayable in monthly EMI ofRs 135782.00 each.

Note 1.2:- In case of Tiger Salts Pvt Ltd the company have Common Director.

Note 1.3;- In case of Saboo Damodar Rope ways Pvt ltd, in current it is shown under loans and advancesfassestsj

Note 2.1 : Working Capital Loans are secured by first pari passu charge on present and future stock of raw materials, stock-in-process, finished goods, stores and spares, book debts, etc., and second pari passu charge on the Total Fixed Assets

Note 2.2 : In case of Spectrum Foods Ltd the director of the company is having substantial shareholding above 10% Note 8.3 : Girdhar Gopal saboo is the Managing director of the company and have substantial shareholding of more than 10%

Note 3.1: Out of the above amount, Rs. nil pertain to the Micro, Small and Medium Enterprises (MSME) as defined under " Micro, Small and Medium Enterprises Development Act, 2006" based on the information available with the Company. There is no interest payable to such parties as at March 31, 2013 (March 31, 2012 : Rs. NIL)

Note 4.1: Provision for taxation also includes MAT credit asset created in the preceding year which were to be set off against the regular tax liability of the company in the succeeding years. However, no such set off could be made during the year under consideration and as such the provision for taxation is carried forward as such including fresh tax provision for the current year

Note:- Capital work in progress includes project of gaurgam and Solar power project at Nawa and kolayat.

Note 5.1: The company has Rs.44.58 lacs as MAT credit entitlement as per the return filed for the AY 2012-13. Last year, the company has accounted for MAT credit of Rs.36.97 lacs as assets in anticipation of set off this MAT credit with tax payable by the company. Though, no tax is payable by the company during the year, as a matter of prudence, this MAT credit is continued to shown as asset as per last year

Note 6.1: Loans & advances also includes interest free advances made for purchase of shares or making of investments and these loans includes loans to the companies having common directors and shareholders, also see note 32 Note 20.2: Out of advances for goods and expanses advances of Rs. 45.07 Lacs were due for more than six months.

Note:- Capital work in progress includes project of gaur gam and Solar power project at Nawa and koiayat.

Note 7.1: Balance written off includes both credit and debit balances against which no any amount is expected to be payable or receivable as per the management

Note 8: Related Party Disclosures

Key Management Personnel

Girdhar Gopal Saboo Bikas Kumar Lakhotia Pradeep Kumar Saxena Neeraj Kumar Agarwal Anagha Bangur

''Other Related Parties

Spectrum Foods Ltd.

Rajasthan Mega Developers P Ltd Nawa Salts P Ltd.

Tiger Salts P Ltd.

Saboo Oamodar Ropeways Private Limited Fortress Hotels and Resorts Private Limited Nawa Hotels and Resorts Private Limited

* on the basis of information provided by the management

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Mar 31, 2012

Note 1.1 : Working Capital Loans are secured by first pari passu charge on present and future stock of raw materials, stock-in-process, finished goods, stores and spares, book debts, etc., and seco nd pari passu charge on the Total Fixed Assets

Note 1.2 : In case of Spectrum Foods Ltd the director of the company is having substantial shareholding above 10%

Note 2.1 : Out of the above amount , Rs. nil pertain to the Micro, Small and Medium Enterprises (MSME) as defined under "Micro, Small and Medium Enterprises Development Act, 2006" based on the information available with the Company. There is no interest payable to such parties as at March 31, 2012 (March 31, 2011 : Rs. NIL)

Note 2.2: The company earlier provided for the contingent liability which coould arise against export made to Jercy Foodstuff in FY 2008-09. However, it is predicted by the management that no such liability coul d arise or exist now and a s such the provision made of Rs.24.38 lacs is reversed.

Note 3.1: The company has Rs.45.97 lacs as MAT credit entitlement. It is predicted that the company will be able to utilized this MAT credit entitlement as now the company has started paying tax at the normal rates. Therefore, as per the relevant guidance note issued by the ICAI, this MAT credit entitlement has been accounted for as an assets while creating provision for taxation with the similar amount. During the year, appx. Rs.9.00 lacs liabil ity would arise on account of tax payable by the company and the same is adjusted against the MAT credit entitlement

Note 4.1: The company is expected to receive Rs.75.00 lacs from the State Government of Gujarat towards Interest Subsidy. The subsidy pertains to the current financial year as well as preceding two years. As a matter of prudence, this subsidy on interest is accounted for as income in the current year itself. This amount of subsidy of Rs.75.00 lacs is being reduced from the interest paid during the year under consideration

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Mar 31, 2010

1. Contingent Liability Provided for: nil

Contingent liability not provided for: Guarantee given by bankers on behalf of the Company - Rs.17.72 lacs (previous year Rs.17.72 lacs).

2. Book debts, advances, creditors, deposits etc. have been taken at their book value awaiting respective confirmation and subject to reconciliation.

3. Loans and advances and debtors have been considered good in respect of which the Company holds no security other than the personal guarantee of the person concerned.

4. So far as the information received from the creditors/ suppliers and as explained by the management, there were no SSI undertakings to which the Company owes any amount together with interest outstanding for more than 30 days.

5. The company is in the process of setting up a new production unit at Gandhidham (Gujarat). The plant is yet to be commissioned and as such all the capital expenses related thereto has been capitalized and shown as capital work in progress.

6. Following the AS-16 on Borrowing Costs, interest incurred on term loan has been capitalized as reduced by the interest received on temporary parking of such borrowed funds

7. There is no expenditure incurred on employees who were in receipt of remuneration in the aggregate of not less than Rs. 24,00,000/- per annum, if employed throughout the year or Rs.2,00,000/- per month if employed for a part of the year.

8. The Company is engaged in manufacturing of salt, which, as per AS-17 "Segment Reporting" issued by the Institute of Chartered accountants of India, is considered the only reportable business segment of the Company.

9. Information pursuant to AS-18 related party disclosure is as under:

KEY MANAGEMENT PERSONNEL & RELATIVES:

1 Shri Girdhar Saboo Managing Director

2 Shri M.L. Saboo Father of Managing Director

3 Smt. Manjoo Saboo Relative of Managing Director

4 Shri C.S. Saboo —do—

5 Smt. Archana Saboo —do—

6 Pradeep Saxena Directors

10. Previous year figures have been regrouped and rearranged wherever it is necessary.

11. Figures have been round off to nearest rupee.