Notes to Accounts of Sarveshwar Foods Ltd.

Mar 31, 2025

(viii) Provisions

Provisions are recognised in the balance sheet when the Company has a present obligation (legal or constructive) as a
result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be
reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present
obligation at the balance sheet date.

Constructive obligation is an obligation that derives from an entity''s actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has
indicated to other parties that it will accept certain responsibilities; and

(b) As a result, the entity has created a valid expectation on the part of those other parties that it will discharge those
responsibilities.

(ix) Income taxes

Tax expense for the year comprises current and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years
and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated
using tax rates and tax laws enacted in the country. Applicable Tax rates for calculating current year income tax
provision & deferred tax include Health & Education Cess which has been held to be deductible expense as per various
judicial pronouncements. Accordingly, provision for income tax of current year has been worked out after considering
the deductible health & education cess paid during the year.

Deferred tax is the tax expected to be payable or recoverable on 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, and is
accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable
temporary differences. In contrast, deferred tax assets are only recognised to the extent that it is probable that future
taxable profits will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that
it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income
in the years in which the temporary differences are expected to be recovered or settled.

Current and deferred lax are recognised as an expense or income in the statement of profit and loss, except when they
relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also
recognised in other comprehensive income or directly in equity.

(x) Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with banks, remittances in
transit and other short term highly liquid investments that are readily convertible to know amounts of cash and which are
subject to an insignificant risk of changes in value where original maturity is three months or less.

(xi) Leases

Company has adopted Ind AS 116 "Leases" Starling April 01.2021, with initial date of application being April 01. 2021.
Accounting policy upto March 31, 2021:

The Company determines whether an arrangement contains a lease by assessing whether the fulfillment of a transaction is
dependent on the use of a specific asset and whether the transaction conveys the right to use that asset to the Company in
return for payment. Where this occurs, the arrangement is deemed to include a lease and is accounted for either as
finance or operating lease. Leases are classified as finance leases where the terms of the lease transfers substantially all
the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Rentals payable under operating leases are charged to the statement of profit and loss on a straight line basis over the
term of the relevant lease unless another systematic basis is more representative of the time pattern in which economic
benefits from the leased asset are consumed.

Accounting policy w.c.f. April 1)1,2021

The Company applied Ind AS 116 using the modified retrospective approach with a date of initial application of April
01, 2021 and accordingly the comparative figures have not been restated. Moreover, there was no impact of initial
application on the balance of retained earnings as of April 01, 2021.

The revised accounting policy of the Company on adoption of Ind AS 116 is detailed below.

The Company as a lessee

At inception of a contract the Company assess whether a contract is. or contain a lease. A contract is, or contains, a lease
if contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company recognises a right of use asset and a lease liability at the lease commencement date. The right of use asset
is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives
received.

The right of use asset is subsequently depreciated using the straight-line method from the commencement date to the
earlier of the end of the useful life of the right of use asset or the end of the lease term. The estimated useful lives of right
of use assets are determined on the same basis as those of property, plant and equipment.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or if that rate cannot be readily determined, the Company''s
incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease
liability is measured at amortised cost using the effective interest method.

The Company as a lessor

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating
lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of
the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease;
if not. then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether
the lease is for the major part of the economic life of the asset.

Rental income from assets held under operating leases is recognized on straight line basis.

(It) Defined Contribution Plan
Provident fund and pension

In accordance with the Employee''s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to receive benefits in
respect of provident fund, a defined contribution plan, in which both employees and ihe Company make monthly contributions at a specified percentage of the
covered employees'' salary. The contributions, as specified under the law, are made to the employee provident fund organization (EPFO).

The total expenses recognised in the statement of profit and loss during the year on account of defined contribution plans amounted to Rs. 6.67 Lakhs (PY: Rs. 6.91
Lakhs)

Note - 33: Capital management

The Company''s capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth.

The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met mostly through internal
accruals and some short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the
Company.

In all the financial years presented in these financial statements Company has negative net debts and has met its capital requirements through internal accruals and equity shares issued
through IPO during FY 2021-22. For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves. Net debt includes short-term
borrowings as reduced by cash and cash equivalents, fixed deposits held with bank and margin money held with banks.

Note - 34: Impairment of Assets

In accordance with the Indian Accounting Standard (IndAS-36)on "Impairment of Assets” the Company has. during the year, carried out an exercise of identifying the assets that may
have been impaired in respect of cash generating unit in accordance with the said Indian Accounting Standard. Based on the exercise, no impairment loss is required as at March 31,
2025.

Note -35: Financial Instruments

This note gives an overview of die significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.
The significant accounting policy in relation to financial instruments is contained in Note l(E)(v).

a) Financial assets and liabilities

file following tables presents the carrying value and fair value of each category of financial assets and liabilities as at March 31. 2025 and March 31. 2024.

(b) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level I to Level 3. as described below:

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices in active markets for identical assets or
liabilities. Company does not hold any asset liability that fall into this category. This level of hierarchy includes Company’s investment in quotes equity shares,

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e.. as prices) or indirectly (i.e.. derived from prices).Company does not hold any asset/Iiability that fall into this
category.

Valuation techniques with significant unobservable* inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on
observable market data (unobservable inputs). Company does not hold any asset/Iiability that fall into this category.

40 Other Notes

(i) In the opinion of the Board of Directors and Management, all the assets other than. Property. Plant and Equipment. Intangible
assets and non-current investments have a value on realisation in the ordinary course of business which is at least equal to the
amount at which they are stated.

(ll) Figures for the previous year have been re-grouped/ rearranged/ restated wherever necessary to make them comparable with

those of the current year.

(iii) The Company does not have any immovable property whose title deed is not held in name of the company.

(iv) The company does not have any Benami property, where any proceeding has been initiated or pending against the company
for holding any Benami property.

(v) The company have borrowings from the bank or financial institutions and company is regular in submitting monthly returns
or statement of current assets to be filed with such bank/financial institution.

(vi) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act,

2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve
Bank of India,

(vii) The company has not done any transactions with companies struck off under section 248 of the companies Act 2013 or
section 560 of companies Act 1956.

(viii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(ix) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87)
of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

(x) Company has not advanced or loaned or invested tunds to any other person(s) or entity(is), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b) provide any
guarantee, security or lire like to or on behalf of the Ultimate Beneficiaries.

(xi) The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(xii) The Company does not have any transaction which is 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 surveyor any
other relevant provisions of the Income Tax Act, 1961.

(xiii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

As per our report of even date For & on Behalf of Board of Director''s of

For KRA & Co. S A RYES H''VAR FOODS LIMITED

Chartered Accountants
Firm Regd. No.020266N

Gunjan Arora Anil Sharma Seema Rani

Partner Managing Director Director

M.No. 529042 DIN: 07417538 DIN: 08385581

IIDIN :25529042 BMIANK3004

Place: Jammu Vishal Narchal Sadhvi Shartna

Date: 30th May, 2025 Chief Finance Officer Company Secretary

_PAN: AF.GPN4283A_PAN: DTPPS6287G_

---

Mar 31, 2024

(viii) Provisions

Provisions arc recognised in the balance sheet when the Company has a present obligation (legal or constructive) as a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

Constructive obligation is an obligation that derives from an entity’s actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities; and

(b) As a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease liability is measured at amortised cost using the effective interest method.

The Company as a lessor

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of tire underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

Rental income from assets held under operating leases is recognized on straight line basis.

(xii) Investment properties

Property that is held for long term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at cost, including related transaction cost and where applicable borrowing costs. Subsequent expenditure is capitalized in the assets carrying amount only when it is probable that future economic benefit associated with the expenditure will How to the Company and cost of the items can be reliably measured. All other repair and maintenance cost are expensed when incurred.

Investment property are depreciated using written down value basis over the useful life as prescribed in Schedule II of the Companies Act, 2013 unless otherwise specified.

I hc defined benefit plan operated by the Company is as below:

Retiring gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The gratuity plan of the Company is funded. The information in the note is for disclosure purpose.

The defined benefit plans expose the Company to a number of actuarial risks as

(a) Interest risk: A decrease in the bond interest rate will increase the plan liability.

(b) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

(c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan’s liability.

(H) Defined ( ontribution Plan Provident fund und pension

In accordance with the Kniploycc''s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company art entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company mala monthly contributions at a specified percentage of the covered employees'' salary. The contributions, as specified under the law. are madi to the employee provident fund organisation (KPF''O).

Tlic total expenses recognised in the statement of profit and loss during the year on account of defined contribution plans amounted to Rs 6.91 Lakhs (PY: Rs. 5.91 Lakhs)

Note - 34: Capital management

The Company''s capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth.

The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met mostly through internal accruals and some short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

In all the financial years presented in these financial statements Company has negative net debts and has met its capital requirements through internal accruals and equity shares issued through 11*0 during FY 2021-22. For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves. Net debt includes short-term borrowings as reduced by cash and cash equivalents, fixed deposits field with bank and margin money held with banks.

Note - 35: Impairment of Assets

In accordance with the Indian Accounting Standard (IndAS-36)on ''impairment of Assets" the Company has, during the year, carried out an exercise of identifying the assets that may have been impaired in respect of cash generating unit in accordance with the said Indian Accounting Standard Based on the exorcise, no impairment loss is required as at March 31. 2024

Note - 36: Financial Instruments

This note gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The significant accounting policy in relation to financial instruments is contained in Note l(EXv).

a) Financial assets and liabilities

The following tables presents the currying value and fair value of each category of financial assets and liabilities us at March 31. 2024. March 31. 2023 and April 01, 2022,

• The lair value of all Other financial asset and liability carried at amortize cost is equal to their carrying value as at balance sheet dates (b) Fair value hierarchy

The following table provides an analysis of financial instruments that arc measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an activ e market (Level I): This level of hierarchy includes financial assets that arc measured by reference to quoted prices in active markets for identical assets or liabilities. Company does not hold any asset/liability that fall into this category. This level of hierarchy includes Company’s investment in quotes equity shares.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.c., as prices) or indirectly (i.e.. derived from prices).Company does not hold any asset liability that lal! into this category.

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that arc not based on observable market data (unobservable inputs). Company does not hold any asset/liability that fall into this category.

41 Oilier Note*

(i) In the opinion of the Board of Directors and Management, all the assets other than. Properly. Pbnt and Equipment. Intangible assets and non-current investments haw a value on realisation in the ordinary course of business which is at least equal to the amount at which they arc stated.

(ii) Figures for the previous year have been re-grouped rearranged, restated wherever necessary to make them comparable w ith those of the current year.

(iii) The Company docs not have any immovable property whose title deed is not held in name of the company

(iv) The company docs not haw any Hcnanu property, where any proceeding has been initiated or pending against the company for holding any Bcnami property.

(v) The company liave borrowings from the bank or fuianctal institutions and company is regular in submitting monthly returns or statement of current assets to be filed with such bank financial institution.

(vi) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act. 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(vii) The company has not done any transactions with companies struck off under section 248 of the companies Act 2013 or section 560 of companies Act 1956.

(viii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(ix) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act. 2013 read with the Companies (Restriction on number of Layers) Rules. 2017.

(x) Company has not advanced or baned or invested funds to any other pcrson(s) or entity*is), including foreign entities (1 ritermcduities) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b ) provide any guarantee, security or the like to or on behalf of the Ultimate Bene lieinrics.

(xi) The Company has not received any fund from any person!s) or entity!is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guunintcv. security or the like on behalf of the Ultimate Bene lie laries

(xii) The Company docs not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the war in the lax assessments under the Income Tax Act. 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act. 1961.

(xiii) The Company lias not traded or invested in Crypto currency or Virtual Currency during the financial year

Ai per our report of even date For & on Brhalf of Hoard of Directors of

For KRA & Co. SARVESHWAR FOODS LIMITED

Chartered Accountants Firm Regd. No.020266N

Anil Sharma Srcntu Rani

Cunjan Arora Managing Director Director

Partner DIN: 07417538 DIN: 08385581

M.No. 529042

I DIN: 24529042BKAMI 05090

Place: Jammu Vishal Narclial Sadhvi Sharma

Date: 16th May 2024 Chief Finance Officer Company Secretary

---

Mar 31, 2023

The defined benefit plan operated by the Company is as below:

Retiring gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The gratuity plan of the Company is funded. The information in the note is for disclosure purpose.

The defined benefit plans expose the Company to a number of actuarial risks as below:

(a) Interest risk: A decrease in the bond interest rate will increase the plan liability.

(b) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

(c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Provident fund and pension

In accordance with the Employee''s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary. The contributions, as specified under the law, are made to the employee provident fund organization (EPFO).

The total expenses recognised in the statement of profit and loss during the year on account of defined contribution plans amounted to Rs. 3.88 Lakhs (PY: Rs. 3.76 Lakhs)

Note - 31: Segment Reporting

Based on guiding principles given in IND AS-108 "Operating Segments", the business segment has been considered as the primary segment and the geographic segment has been considered as the secondary segment. As the processing and trading of rice is the only business segment, the disclosure requirement for primary business segment is not applicable.

The Company''s capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth.

The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met mostly through internal accruals and some short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

In all the financial years presented in these financial statements Company has negative net debts and has met its capital requirements through internal accruals and equity shares issued through IPO during FY 2021-22. For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves. Net debt includes short-term borrowings as reduced by cash and cash equivalents, fixed deposits held with bank and margin money held with banks.

Note - 35: Impairment of Assets

In accordance with the Indian Accounting Standard (lndAS-36)on "Impairment of Assets" the Company has, during the year, carried out an exercise of identifying the assets that may have been impaired in respect of cash generating unit in accordance with the said Indian Accounting Standard. Based on the exercise, no impairment loss is required as at March 31, 2023.

Note - 36: Financial Instruments

This note gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The significant accounting policy in relation to financial instruments is contained in Note l(E)(v).

a) Financial assets and liabilities

The following tables presents the carrying value and fair value of each category of financial assets and liabilities as at March 31, 2023, March 31, 2022 and April 01, 2021.

• The fair value of all other financial asset and liability carried at amortize cost is equal to their carrying value as at balance sheet dates

(b) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices in active markets for identical assets or liabilities. Company does not hold any asset/liability that fall into this category. This level of hierarchy includes Company''s investment in quotes equity shares.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).Company does not hold any asset/liability that fail into this category.

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Company does not hold any asset/liability that fall into this category.

Note - 37: Adoption of Indian Accounting Standard (Ind AS)

A Mandatory exceptions to retrospective application

The Company has applied the following exceptions to the retrospective application of Ind AS as mandatorily required under Ind AS 101 “First Time Adoption of Indian Accounting Standards".

W Estimates

On assessment of estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise such estimates under Ind AS. as there is no objective evidence of an error in those estimates.

^ Classification and measurement of financial assets

The classification of financial assets to be measured at amortised cost or fair value through other comprehensive income is made on the basis of facts and circumstances that existed on the date of transition to Ind AS.

(iii) Derecognition of financial assets and financial liabilities

Derecognition requirement for Ind AS 109 has been applied prospectively

_B Optional exemptions from retrospective application

Ind AS 101 “First time Adoption of Indian Accounting Standards" permits Companies adopting Ind AS for the first time to take certain exemptions from the full retrospective application of Ind AS during the transition. The Company has accordingly on transition to Ind AS availed the following key exemptions:

(i) Property, plant and equipment:

The company has elected to take the carrying value of its property, plant & equipment and intangible assets as per previous GAAP ( I GAAP ) as its deemed cost for Ind AS as at 1st April, 2021.

(ii) Foreign Currency Transactions and Advance Consideration

As per Para D 36 of Ind AS 101, the Company is not applying Appendix B of Ind AS 21 to assets initially recognized before 01.04.2021

Notes to reconciliation of total equity and total comprehensive income:

(i) Financial instruments

{i) Under previous IGAAP, current investments were stated at lower of cost and fair value. Under Ind AS (Ind AS 109 "Financial Instruments"), these financial assets have been classified as FVTPL on the date of transition and fair value changes after the date of transition has been recognized in profit and loss

(ii) Under previous IGAAP, non-current investments were stated at cost. Under Ind AS (Ind AS 109"Financial Instruments"), these financial assets have been classified as Fair Value through Other Comprehensive Income (FVTOCI) on the date of transition and fair value changes after the date of transition has been recognized in Other Comprehensive Income

(iii) Under previous IGAAP, some financial assets are carried at books value. Under Ind AS (Ind AS 109"Financial Instruments"), these financial assets have been classified as Amortized cost on the date of transition and are carried at amortized cost using EIR .

(ii) Deferred taxes

Deferred taxes includes defererd tax impact on financial instruments recognized as per Ind AS 109 "Financial Instruments"

(iii) Other comprehensive Income

Under Ind AS, all items of income and expense recognised during the year are included in the profit or loss for the year, unless Ind AS requires or permits otherwise. Items that are not recognised in profit or loss but are shown in the statement of profit and loss and other comprehensive income include re-measurement gains or losses on defined benefit plans, fair value changes on equity instrument recognized as FVTOCI.

The concept of other comprehensive Income did not exist under the Previous GAAP.

4 Other Notes

(i) In the opinion of the Board of Directors and Management, all the assets other than, Property, Plant and Equipment, Intangible assets and non-current investments have a value on realisation in the ordinary course of business which is at least equal to the amount at which they are stated.

(ii) Figures for the previous year have been re-grouped/ rearranged/ restated wherever necessary to make them comparable with those of the current year.

(iii) The Company does not have any immovable property whose title deed is not held in name of the company.

(iv) The company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

(v) The company have borrowings from the bank or financial institutions and company is regular in submitting monthly returns or statement of current assets to be filed with such bank/financial institution.

(vi) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(vii) The company has not done any transactions with companies struck off under section 248 of the companies Act 2013 or section 560 of companies Act 1956.

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Mar 31, 2018

Notes to Accounts

25 Related party disclosures:
Nature and name of related parties
Holding Company	NIL
Key Management Person	Rohit Gupta
Relative of Key Management Person	Suraj Prakash Gupta
	Radha Rani
	Pooja Gupta
Associate Concerns	Sarveshwar Logistics
	Radhika Overseas
	Sarveshwar International
	Himalayan Ancient Foods P Ltd
	Radhika Pest Control
Subsidiary Companies	Sarveshwar Overseas Ltd
	Himalayan Bio Organic foods p Ltd
	Natural Global Food DMCC
Enterprises Owned or controlled by Key Management
Personnel or their relatives	Shree Jee Trading
Joint Ventures	NIL

Transactions with related parties during the year:

(Rs. In Lakhs)
Name of related party	Nature of transaction	Transaction during the year
		31st March 2018	31st March 2017
Rohit Gupta	Rent	72.00	72.00
Rohit Gupta	Salary	30.00	30.00
Sarveshwar Logistics	Freight	62.76	50.37
Suraj Prakash Gupta	Rent	12.00	12.00
Radha Rani	Rent	30.00	30.00
Himalayan Bio Organic Foods P Ltd	Purchases	668.08	-
Himalayan Bio Organic Foods P Ltd	Sales	2,553.00	-
Sarveshwar International	Sales	164.95	-
Sarveshwar Overseas Ltd	Purchases	1,078.52	-
Radhika Overseas	Purchases	-	57.52
Pooja Gupta	Rent	3.00	12.00

Outstanding with related parties as at balance sheet date:

(Rs. In Lakhs)
Name of related party	Nature of transaction	Closing Balance
		31st March 2018	31st March 2017
Sarveshwar International	Sales	32.87	(88.28)
Himalayan Bio Organic Foods P Ltd	Purchases	2,029.45	1.20
Sarveshwar Overseas Ltd	Purchases	59.53	(31.68)
Radhika Overseas	Purchases	-	(43.10)
Rohit Gupta	Salary	-	(9.00)
Rohit Gupta	Rent	-	(26.80)
Radha Rani	Rent	-	(7.29)
Pooja Gupta	Rent	-	(5.27)

26 Expenditure and earnings in foreign currency (on accrual basis)

(Rs. In Lakhs)
Particulars	31st March 2018	31st March 2017
Expenditure
Trade fair	4.71	.
Professonal fee	0.41	-
Registration Fee	2.78	-
Commission on Exports	5.16	14.91
Earnings Sale of finished goods	2,692.16	3,876.64

27 The Company does not have any operating Lease

28 Unheged foreign currency exposures as at the balance sheet date

(Rs. In Lakhs)
Particulars	31st March 2018				31st March 2017
	in USD	inJPY	Exchange rate	in?	in USD	in JPY	Exchange rate	in Rs
NIL				-				-

29 The balances of receivables, payables, security deposit given are subject to confirmation & reconciliation, if any.

30 Gratuity plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on separation at 15 days salary (last drawn salary) for each completed year of service.

The principle assumptions in determining the obligation for the Company''s plan are shown below:

(Rs. In Lakhs)

Particulars	31st March 2018	31st March 2017
Monthly rate	LIC (2006-08) Ultimate	LIC (2006-08) Ultimate
Withdrawl rate	1% to 3% Depending on Age	1% to 3% Depending on Age
Discount rate	7.5	8
Future Salary Increase	7	7

Results of Valuation (Rs. In Lakhs)
Particulars	31st March 2018	31st March 2017
PV of Past Service Benefit	15.56	7.95
Current Service Cost	1.76	1.37
Total Service Gratuity	67.59	63.64
Accrued Gratuity	17.69	12.98
LCSA	37.59	40.85
LC Premium	0.11	0.09
Accrued Liability	0.02	NA

The estimates of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors on long term basis.

31	Details of secured short term borrowings as on March 31, 2018 (Rs. In Lakhs)
	Name of the lenders	Facility Type	Interest rate	Loan Currency	Sanctioned Amount in Lakhs	Tenure	Outstanding Loan as on 31st March 2018 in INR in Lakhs	Security as per the loan agreement
	J&K Bank	CC	MCLR 1%	INR	7500	Renewal Done Every Year	4967.10	Various Immovable Properties and Stocks & Debtors
	J&K Bank PCFC	SUB Limit CC	Libor 2%	USD		Renewal Done Every Year	519.13	Various Immovable Properties and Stocks & Debtors
	J&K Bank PSFC	SUB Limit CC	Libor 2%	USD		Renewal Done Every Year	0.00	Various Immovable Properties and Stocks & Debtors
	J&K Bank PSL004	LC/NON LC BACKED	7.45% & Libor 2%	INR\USD		Renewal Done Every Year	60.30	Various Immovable Properties and Stocks & Debtors
	State bank of patiala	Pledge Limits	10.65%	INR	2500	Renewal Done Every Year	-1.15	Various Immovable Properties and Stocks & Debtors
	Oriental Bank Pledge Account	Pledge Limits	MCLR 1%	INR	500		473.06	Various Immovable Properties and Stocks & Debtors
	Total				10,500.00		6,018.44

32 The Company has reclassified previous year figures to conform with this year''s classification. As per our report of even date

For KRA & Co	For and behalf of the Board of Directors
Firm Registration No: 020266N
Chartered Accountants
Rajat Goyal	Rohit Gupta	Anil Sharma
Partner	Managing Director	Director
Membership No. 5031 50	DIN:02715232	DIN:07417538
Place: New Delhi	Place: Jammu	Place: Jammu
Date: 26.05.2018	Date: 26.05.2018	Date: 26.05.2018