Notes to Accounts of Teesta Agro Industries Ltd.

Mar 31, 2014

1. Other Explanatory notes and Information

1.1 Sundry Debtors and advances (considered good) include certain overdue debts/ old advances aggregating to Rs.8 (Previous Year Rs.8) for which necessary steps are being taken for realisation and as such no provision there against is considered necessary in these accounts.

1.2 Balances of certain Sundry Debtors, Sundry Creditors, Loans and Advances and Other Liabilities are in process of confirmation/reconciliation . The management is of the opinion that adjustment if any arising out of such reconciliation would not be material.

1.3 Sales tax remission was granted to the company by State Government initially for a period of 9 (Nine) years which ended on 30.03.2010 . The management is of the opinion that as per the law the company is entitled for remission for 13 (thirteen) years i.e. up to 30.03.2014 and necessary legal steps are being taken in this regard. VAT remission for the year amounting to Rs.221 credited directly to Capital Reserve Ale and VAT liability under dispute since 31.03.2010 aggregating Rs.871 is shown under the head Contingent Liability.

1.4 Excise duty on sulphuric acid principally used for captive consumption of SSP (Finished Goods) has not been considered for valuation of stock of sulphuric acid consistently over the years . However , excise duty on fertilizers which is chargeable since 1st March, 2011 has been considered for valuation of fertilizer inventory as on 31.03.2014 as per AS-2 .

1.5 In the opinion of the Board the Current Assets , Loans and advances appearing in the company''s balance sheet as at.the yearend would have value on realization in the normal course of business at least equal to the respective amounts at which they are stated in the balance sheet.

1.6 Under the Micro, Small and Medium Enterprises Development Act , 2006, certain disclosures are required to be made relating to micro, small and medium enterprises but the information is not available.

1.7 (a) Estimated amount of Capital Commitments net of advances as at 31.03.2014, and not provided for is Rs. 50 (Previous year Rs. 500).

(b) Contingent Liabilities 2013-14 2012-13

(Not provided for) in respect of :-

- Letter of Credit Nil 468

- Bank Guarantees 127 95

- Sales Tax matters under dispute 871 650

- Income tax matters under appeals 108 108

1.8 Consumption of raw materials includes foreign exchange loss of Rs.64 (Previous year gain of Rs.70).

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Mar 31, 2013

1.1 Sundry Debtors and advances (considered good) include certain overdue debts/ old advances aggregating to Rs. 8 (Previous Year Rs. 12) for which necessary steps are being taken for realisation and as such no provision there against is considered necessary in these accounts.

1.2 Balances of certain Sundry Debtors, Sundry Creditors, Loans and Advances and Other Liabilities are in process of confirmation/reconciliation. The management is of the opinion that adjustment if any arising out of such reconciliation would not be material.

1.3 Sales tax remission was granted to the company by State Government initially for a period of 9 (Nine) years which ended on 30.03.2010. The management is of the opinion that as per the law the company is entitled for remission for 13 (thirteen) years i.e. up to 30.03.2014 and necessary legal steps are being taken in this regard. VAT remission for the year amounting to Rs. 275 credited directly to Capital Reserve A/c and VAT iiability under dispute since 31.03.2010 aggregating x 649 is shown under the head Contingent Liability.

1.4 Excise duty on sulphuric acid principally used for captive consumption of SSP (Finished Goods) has not been considered for valuation of stock of sulphuric acid consistently over the years. However, excise duty on fertilizers which is chargeable since 1st March, 2011 has been considered for valuation of fertilizer inventory as on 31.03.2013 as perAS-2

1.5 In the opinion of the Board the Current Assets, Loans and advances appearing in the company''s balance sheet as at the year end would have value on realization in the normal course of business at least equal to the respective amounts atwhich they balance are stated in the sheet.

1.6 Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to micro, small and medium enterpriseRs. the information is not available.

1.7 (a) Estimated amount of Capital Commitments net of advances as at 31.03.2013, and not provided for is Rs. 500 (Previous year ^ (Mil).

(b) Contingent Liabilities 2012-13 2011-12 (Not provided for) in respect of :-

- Letter of Credit 468 305

- Bank Guarantees 95 55 -Sales Tax matters under dispute 650 374 -Income tax matters under appeals 108 108

1.8 Consumption of raw materials includes foreign exchange gain of Rs. 70 (Previous year gain ofRs. 39).

1.9 Retirement Benefits

Defined Benefits Plan

The company has subscribed to group gratuity policy with the Life Insurance Corporation of India to cover its liability towards employees'' gratuity. Gratuity liability has been actuarially calculated and the same has been provided for as on the date of Balance Sheet. Summary of Gratuity Plan isqiven below:-.

The company extends the benefit of leave encashment to its employees while in service. Leave encashment benefits are accounted for on the basis of actual valuation as at year end.

Defined Contribution Plan

Contribution to Defined Contribution Plan i.e. contribution to Provident Fund amounting to X 22 (Previous year 18) has been recognized as expenses in the year and charged to revenue account. These contributions are made to the fund administered and managed by Regional Provident Fund Commissioner, Jalpaiguri.

1.10 Segment Information

The business segments have been identified on the basis of the products manufactured by the Company i.e. Fertilisers & Sulphuric Acid. Mainly Sulphuric Acid is captively used for production of SSP The company is managed organisationally as one unified entity, hence there are no separate geographical segments.

1.11 Deferred Tax Accounting:-

As per the Accounting Standard 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred tax credit for the year Rs. 3 has been recognised in the Profit and Loss Account for the year. Details of Deferred Tax Assets/(l_iabilities) as on 31.03.2013 are as follows:

Tax Assets/(Liabilities) as on 31.03.2013 are as follows: -

Items under Section 43B of IT Act Rs. - 4

- Depreciation Rs. -(170)

- Net Deferred Tax Assets/(Liabilities) Rs. -(166)

1.12 Management has evaluated value in use of its fixed assets as required by Accounting Standard 28. On evaluation, management is of the opinion that there is no impairment of the Company''s assets as on 31 st March, 2013 and hence no provision is required

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Mar 31, 2012

1.1 Sundry Debtors and advances (considered good) include certain overdue debts/ old advances aggregating to Rs.12 (Previous Year Rs.12) for which necessary steps are being taken for realisation and as such no provision there against is considered necessary in these accounts.

1.2 Balances of certain Sundry Debtors, Sundry Creditors, Loans and Advances and Other Liabilities are in process of confirmation/reconciliation. The management is of the opinion that adjustment if any arising out of such reconciliation would not be material.

1.3 Sales tax remission was granted to the company by State Government initially for a period of 9 years which ended on 30.03.2010. The management is of the opinion that as per the law the company is entitled for remission for 13 years i.e. up to 30.03.2014 and necessary legal steps are being taken in this regard. VAT remission for the year amounting to Rs. 241 credited directly to Capital Reserve A/c and VAT liability under dispute since 31.03.2010 aggregating Rs.374 is shown under the head Contingent Liability.

1.4 Excise duty on sulphuric acid principally used for captive consumption of SSP (Finished Goods) has not been considered for valuation of stock of sulphuric acid under AS-2 consistently over the years. However, excise duty on fertilizers which is chargeable since 1 st March, 2011 has been considered for valuation of fertilizer inventory as on 31.03.2012.

1.5 In the opinion of the Board the Current Assets, Loans and advances appearing in the company's balance sheet as at the year end would have value on realization in the normal course of business at least equal to the respective amounts at which they are stated in the balance sheet.

1.6 Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to micro, small and medium enterprises but the information is not available.

1.7 (a) Estimated amount of Capital Commitments net of advances as at 31.03.2012, and not provided for is Rs.Nil (Previous yearRs. Nil).

(b) Contingent Liabilities

(Not provided for) in respect of 2011 -12 2010-11

- Letter of Credit 305 900

- Bank Guarantees 55 83

- Sales Tax matters under dispute 374 133

- Income tax matters under appeals 108 108

1.8 Consumption of raw materials includes foreign exchange gain of Rs. 39 (Previous year loss of Rs.4).

The company extends the benefit of leave encashment to its employees while in service. Leave encashment benefits are accounted for on the basis of actual valuation as at year end.

Defined Contribution Plan

Contribution to Defined Contribution Plan i.e. contribution to Provident Fund amounting to Rs.18 (Previous year Rs. 17) has been recognized as expenses in the year and charged to revenue account. These contributions are made to the fund administered and managed by Regional Provident Fund Commissioner, Jalpaiguri.

1.9 Management has evaluated value in use of its fixed assets as required by Accounting Standard 28. On evaluation, management is of the opinion that there is no impairment of the Company's assets as on 31 st March, 2012 and hence no provision is required.

2.1 Terms.Rights, Preferences & Restrictions attached to Shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each share holder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in .the Annual general Meeting. In the event of liquidation of the Company, the equity share holders are eligible to receive remaining assets of tfie Company, after distribution of all Preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. During the year ended 31st March, 2012 the revised schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statement. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year's figures in accordance with the requirements applicable in the current year. In view of this reclassification certain figures of current year are not strictly comparable with those of the previous year.

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Mar 31, 2010

1. (a) Estimated amount of Capital Commitments net of advances as at 31.03.2010, and not provided for is Rs. Nil (Previous year Rs. Nil).

2. Information pursuant to the provisions of paragraphs 3,4C and 4D of Part II of Schedule VI to the Companies Act, 1956. a) The Company manufactures Single Super Phosphate (S.S.R), Granulated Single Super Phosphate (G.S.SP), Mixture Fertilisers (N:RK) and Sulphuric Acid (SA) and the relevant particulars thereof are as under :-(i) Installed Capacity (Annual) M.T. M.T.

3. Retirement Benefits Defined Benefits Plan

a) The company has subscribed to one group gratuity policy with the Life Insurance Corporation of India to cover part of its liability towards employees gratuity. Gratuity liability has not been actuarially calculated as per AS-15. However, the Gratuity liability has been provided for on estimated basis by the management.

b) The company extends the benefit of leave encashment to its employees while in service as well as on retirement Leave encashment benefits are accounted for on the basis of actual valuation as at year end.

Defined Contribution Plan Contribution to Defined Contribution Plan i.e. contribution to Provident Fund amounting to Rs.1536 (Previous year Rs. 1315) has been recognized as expenses in the year and charged to revenue account. These contributions are made to the fund administered and managed by Regional Provident Fund

4. SEGMENT INFORMATION

The business segments have been identified on the basis of the products manufactured by the Company i.e. Fertilisers & Sulphuric Acid. Mainly Sulphuric Acid is captively used for production of SSP. The company is managed organisationally as one unified entity, hence there are no separate geographical segments.

5. For the purpose of calculation of Earning Per Share in accordance with Accounting Standard 20 issued by ICAI, profit after tax Rs.5435 and 45,04,950 equity shares of Rs.10/- each fully paid up have been considered.

6. Deferred Tax Accounting:-

As per the Accounting Standard 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred tax credit for the year Rs. 1215 has been charged in the Profit and Loss Account for the year. Details of Deferred Tax Assets/(UabiIities) as on 31.03.2010 are as follows:

a. - Items under Section 43B of IT Act Rs. 497

b. - Depreciation Rs. (18757)

Net Deferred Tax Assets/(Liabilities) Rs. (18260)

7. Management has evaluated value in use of its fixed assets as required by Accounting Standard 28. On evaluation, management is of the opinion mat there is no impairment of the Companys assets as on 31st March, 2010 and hence no provision is required.

8. Figures in the Balance Sheet and Profit and Loss Account have been rounded off to the nearest thousands. 9. Previous years figures have been regrouped/rearranged wherever necessary.