Notes to Accounts of Simran Farms Ltd.

Mar 31, 2015

1. Earning Per Share

Basic & Diluted earning per equity share have been worked out in accordance with AS-20 "Earnings Per Share". Basic and diluted earnings per equity share has been calculated by dividing Net profit of Rs. 77.47 lacs by 3791700 equity shares (Face Value of Rs. 10/- each)

NOTE

The Liability Provided as on 31.03.2015 is Rs. 59.51 lakhs as against Rs. 39.62 lakhs worked out above. The difference of Rs. 19.89 lacs is under process of reconciliation and shall be adjusted thereupon.

Compensated absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance sheet date.

2. Sales Offices

Company having following sales offices during the period in India: Bhopal, Anand, Chickli, Raipur, Bhilai, Bilaspur, Malegaon, Dhulia, Nashik, Amrawati, Sangamner, Narayangaon, Loharu, Barabanki, Jaipur, Ajmer, Nawalgarh, Palsana, Sonipat, Mohali, Pathankot, Kathua.

3. Disclosure Under Micro, Small & Medium Scale Enterprise Development Act, 2006

The Company has already initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act, 2006 but yet to finalise the process. In view of low number of suppliers and non receipt of critical inputs & response from such potential parties, the liability of interest if any, can not be reliably estimated. In the Management's view and past experience, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act, 2006.However during the year there were delayed payments due to financial crisis on which interest has been paid. There is no claim of interest unpaid to such entities at the year end.

4. In the opinion of the Board Of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realized in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of the amount which is reasonably necessary.

5. As per information given by the management, Excise Duty is Not applicable to the company.

6. All Balances of sundry debtors and creditors are subject to confirmation.

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Mar 31, 2014

( in Lakhs )

Particulars As at 31st March, 2014 31st March, 2013

1A Contingent Liabilities and Commitments (To the extent not provided)

Claims against company not acknowledged as debt

Income tax matters in dispute 11.50 11.50

Non agriculture cases in dispute 0.00 0.00

Other demands in dispute 0.00 0.00

11.50 11.50

2. Earning Per Share

Basic & Diluted earning per equity share have been worked out in accordance with AS-20 "Earnings Per Share". Basic and diluted earnings per equity share has been calculated by dividing Net profit of Rs.62.54 lacs by 3791700 equity shares (Face Value of Rs.10/- each).

3. Related Darties disclosures :

1. Relationship (c) Relatives of key management personnel and their enterprises where transaction have taken place:

(a) Subsidiary Companies Mrs. Amarjeet Kaur Bhatia Puregene Biotech Ltd. Mr. Amarjeet Singh Bhatia (HUF) w.e.f. from 13/7/2002 Mr. Kawaljeet Singh Bhatia (HUF) [formerly Simran Breeders (P) Ltd.]

(b) Key Management Personnel: Simran Feed (P) Ltd.

Mr. Harendar Singh Bhatia Simran Poultry (Managing Director) Singh Poultry

Mr. Gurdeep Singh Bhatia Simran Hatcheries (Director) Simran Hatcheries (P) Ltd.

Mr. Kanwaljeet Singh Bhatia Early Bird Hatcheries (Whole Time Director) Simfa Labs Pvt.Ltd.

Mr. Gurmeet Singh Bhatia Simran Foods Pvt. Ltd (Vice President) Singh Hatcheries

Mr. Avneet Singh Bhatia Mrs. Simrath Kaur Bhatia (Vice President - Operation) Mrs. Kawaljeet Kaur Bhatia

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

Compensated absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance sheet date.

4. Sales Offices

Company having following sales offices during the period in India:

Bhopal, Anand, Chickli, Raipur, Bhilai, Bilaspur, Malegaon, Dhulia, Nashik, Sangamner, Narayangaon, Loharu, Jaipur, Ajmer, Nawalgarh, Palsana.

5. Disclosure Under Micro, Small & Medium Scale Enterprise Development Act, 2006

The Company has initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act, 2006. In view of low number of suppliers and non receipt of critical inputs & response from such potential parties, the liability of interest if any, can not be reliably estimated in the Management''s view and past experience, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act, 2006.However Company has paid Interest of 28.16 lacs towards late payment.

6. In the opinion of the Board Of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realized in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of the amount which is reasonably necessary.

7. As per information given by the management, Excise Duty is Not applicable to the company.

8. All Balances of sundry debtors and creditors are subject to confirmation.

9. STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT,1956RELATING TO SIMRAN BREEDERS PVT. LIMITED NOW W.E.F. 13/07/2002 KNOW AS PUREGENE BIOTECH LIMITED A SUBSIDIARY COMPANY.

1. The Company held 1196500 equity shares of Rs. 10 each fully paid up representing 82.71% paid up capital of subsidiary company.

2. There are no material changes between the financial year of subsidiary company ended on 31st March 2014 and the end of financial year of the company.

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Mar 31, 2013

1. Sales Offices

Company having following sales offices during the period in India Bhopal, Anand, Chickli, Raipur, Bhilai, Bilaspur, Malegaon, Dhulia, Nashik, Amrawati, Sangamner, Narayangaon, Loharu, Barabanki, Jaipur, Ajmer, Nawalgarh, Palsana.

2. Disclosure Under Micro, Small & Medium Scale Enterprise Development Act, 2006

The Company has initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act, 2006. In view of low number of suppliers and non receipt of critical inputs & response from such potential parties, the liability of interest if any, can not be reliably estimated in the Management''s view and past experience, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act, 2006.

3. In the opinion of the Board Of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realized in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of the amount which is reasonably necessary.

4. As per information given by the management, Excise Duty is Not applicable to the company.

5. All Balances of sundry debtors and creditors are subject to confirmation.

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Mar 31, 2012

Note: Out of above 2.00 Lakhs Equity Shares are allotted as fully paid by way of Bonus Shares in the year 1993-94

Note: During the year there is a creation of Deferred Tax Liability amounting to Rs. 5.99 lakhs and creation of Deferred Tax Asset amounting to Rs. 5.10 lakhs which has been recorded in the Profit & Loss A/c.

Note: The disputed outstanding Income Tax Demand pertaining to Assessment Year 1994-1995 to 1997-1998 of Rs..12.21 Lacs in respect of dis-allowances of claims u/s801 &80HHA has been confirmed against the company by the Income Tax Appellate Tribunal and accordingly the liability in respect of these years has been paid/provided in full in earlier years. The Company is litigating the matter before the Hon'ble High Court of M.P.

1. Earnings Per Share

Basic & Diluted earnings per equity share have been worked out in accordance with AS-20 "Earnings Per Share". Basic and diluted earnings per equity share has been calculated by dividing Net Profit after tax of Rs.67.64 lacs by 3791700 equity shares (Face Value of Rs.10/- each) .

NOTE :

1. Production/Purchase of Hatching Eggs is net off smashed and rejected.

2. Purchase and Production of Parent birds & Commercial Bird is net off Mortality/Adjustment

3. Figures shown in brackets below represents previous year figures.

2. DISCLOSURE UNDER MICRO, SMALL & MEDIUM SCALE ENTERPRISE DEVELOPMENT ACT, 2006

The Company has initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act, 2006. In view of large number of suppliers and non receipt of critical inputs & response from several such potential parties, the liability of interest if any, cannot be reliably estimated. In the Management's view, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act, 2006.

3. Previous year figures have been regrouped or rearranged wherever necessary and also reclassified to meet the requirements of classification of assets and liabilities and heads of Profit & Loss Account of the Revised Schedule VI.

4. In the opinion of the Board of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realized in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of amount which is reasonably necessary.

5. As per information given by the Management, Excise-Duty is not applicable to the Company.

STATEMENT PURSUANTTO SECTION 212 OFTHE COMPANIES ACT, 1956 RELATING TO SIMRAN BREEDERS PVT LIMITED NOWW.E.F. 13/07/2002 KNOW AS PUREGENE BIOTECH LIMITED A SUBSIDIARY COMPANY

1 The Company held 1196500 equity shares of Rs. 10 each fully paid up representing 82.71% paid up capital of subsidiary company.

2 The net aggregate of losses of the subsidiary company since its incorporation, not dealt with in the accounts of the Co.ofRs.15.01 Lacs.

3 There are no material changes between the financial year of subsidiary company ended on 31st March 2012 and the end of financial year of the company.

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Mar 31, 2011

A) In the opinion of the Board of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realised in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of amount which is reasonably necessary.

B) The disputed outstanding Income Tax Demand pertaining to Assessment Year 1994-1995 to 1997-1998 of Rs.12.21 Lacs in respect of disallowances of claims u/s 80 I & 80HHA has been confirmed against the company by the Income Tax Appellate Tribunal and accordingly the liability in respect of these years has been paid/ provided in full earlier years. The Company is litigating the matter before the Hon'ble High Court of M.P.

C) As per information given by the Management, Excise-Duty is not applicable to the Company.

D) All Balances of Sundry Debtors and Creditors are subject to confirmation.

Note : During the year there is creation of Deferred Tax Liability amounting to Rs. 4.09 Lacs and reversal of DTA amounting to Rs. 12.24 Lacs totalling to Rs. 8.15 Lacs of DTA which has been recorded in Profit & Loss A/c.

F) Earning Per Share

Basic & Diluted earning per equity share have been worked out in accordance with AS-20 "Earnings Per Share". Basic and diluted earnings per equity share has been calculated by dividing Net Profit after tax of Rs. 398.99 lacs by 3791700 equity shares (Face value of Rs.10/- each)

G) Related parties disclosures : 1 Relationship

(a) Subsidiary Companies Puregene Biotech Ltd. w.e.f. 13/7/2002

(Formerly Simran Breeders (P) Ltd.)

(b) Key Management Personnel :

Mr. Harender Singh Bhatia Managing Director

Mr. Gurdeep Singh Bhatia Director

Mr. Kanwaljeet Singh Bhatia Executive Director Gurmeet Sing Bhatia (Vice President)

(c) Relatives of key management perssonnel and their enterprises where transaction have taken place : Mrs. Amarjeet Kaur Bhatia Mr. Amarjeet Singh Bhatia Mr. Kawaljeet Singh Bhatia (HUF)

Mr. Sumeet Singh Bhatia Simran Feeds (P) Ltd.

Simran Poultry Singh Poultry

Simran Hatcheries Simran Hatcheries (P) Ltd. Early Bird Hatcheries Simfa Labs Pvt. Ltd. Simran Foods Pvt. Ltd. Mr. Avneet Singh Bhatia Mrs. Simrath Kaur Bhatia Mrs. Kawaljeet Kaur Bhatia

Note : Related party relationship is as identified by the Company and relied upon by the Auditors.

I) DISCLOSURE UNDER MICRO, SMALL & MEDIUM SCALE ENTERPRISE DEVLOPMENT ACT, 2006

The Company has initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act, 2006. In view of large number of suppliers and non receipt of critical inputs & response from several such potential parties, the liability of interest if any, can not be reliably estimated. In the Management's view, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act, 2006

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Mar 31, 2010

A) In the opinion of the Board of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realised in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of amount which is reasonably necessary.

B) The disputed outstanding Income Tax Demand pertaining to Assessment Year 1994-1995to 1997-1998 of Rs. 1221 Lacs in respect of disallowances of claims u/s 80 I & 80HHA has been confirmed against the company by the Income Tax Appellate Tribunal and accordingly the liability in respect of these years has been paid/ provided in full in earlier years. The Company is litigating the matter before the Honble High Court of MP.

C) As per information given by the Management, Excise-Duty is not applicable to the Company.

D) All Balances of Sundry Debtors and Creditors are subject to confirmation.

F) Earning Per Share

Basic & Diluted earning per equity share have been worked out in accordance with AS-20 "Earnings Per Share". Basic and diluted earnings per equity share have been calculated by dividing Net Profit after tax of Rs. 348.34 lacs by 3791700 equity shares ( Face value of Rs.10/- each)

Basic & Diluted earning per share (Without adjustment for deferred tax)are calculated by dividing Rs. 110.09 lacs i.e.Net Profit after tax but before provision for deferred tax by 3791700 equity share (face value Rs.10/-each.)

G)1. Related parties disdisuress:

Key Management Personnel :

Mr. Kanwaljeet Singh Bhatia

Mr. Harender Singh Bhatia

Managing Director

Mr. Gurdeep Singh Bhatia Director

Mr.Kanwaljeet Singh Bhatia

Executive Director

Gurmeet Singh Bhatia

Vice President

(b) Relatives of key management perssonnel and their enterprises where transaction have taken place:

Mrs. Amarjeet Kaur Bhatia

Mr.Amarjeet Singh Bhatia (HUF)

Mr.Sumeet Singh Bhatia

Simran Feeds (P) Ltd.

Simran Politry

Singh Poultry

Simran Hatcheries

Simran Hatcheries Ltd.

Early Bird Hatcheries Ltd.

Simfa Labs Pvt Ltd.

Simran Foods Pvt. Ltd.

Mr. Avneet Singh Bhatia

Mrs. Simrath Kaur Bhatia

Mrs. Kawaljeet Kaur Bhatia

I) DISCLOSURE UNDER MICRO, SMALL & MEDIUM SCALE ENTERPRISE DEVLOPMENT ACT, 2006

The Company has initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act,2006.In view of large number of suppliers and non receipt of critical inputs & response from several such pontential parties, the liability of interest if any, can not be reliably estimated. In the Managements view, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act,2006.