Notes to Accounts of Vadilal Dairy International Ltd.

Mar 31, 2014

Note 1 - Contingent Liabilities

1. Contingent Liabilities are not recognised but are disclosed in financial statements. Provision involving substantial degree of estimation in measurement is recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilitieare not recognized but are disclosed in the notes.

2. Contingent liabilities and commitments 2014 2013 (to the extent not provided for) Rs. Rs.

Contingent liabilities

(a) Claims against the Company not acknowledged as debt (Excluding interest claimed by the parties) 7,601,886 7,601,886

(b) Claims from Creditors/Stockiest whose credit balance have been assigned to a customer of the company 18,880,734 18,880,734

(c) Interest on VAT, as per Order of Additional Commissioner of Sales Tax for the Period April 2007 to March 2012 Challenged by company with BIFR 31,526,630 23,318,001

(d) Water Charges not acknowledged - 2,876,675

(e) Difference in Rate of VAT contested before Maharashtra VAT Tribunal for the period

Feb 2006 to January 2008 14,019,268 14,019,268

Interest for above period 11,080,125 -

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Mar 31, 2013

Particulars 2013 2012 (Rs.) (Rs.)

Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not acknowledged as debt 7,601,886 7,601,886 (Excluding interest claimed by the parties )

(b) Claims from Creditors/Stockiest whose credit balance have 18,880,734 18,880,734 been assigned to a customer of the company

(c) Income Tax demand for earlier years 2,701,112 2,701,112

(d) Interest on VAT, as per Order of Additional Commissioner of 23,318,001 23,318,001

Sales Tax for the Period April 2007 to March 2012 Challenged by company with BIFR

(e) Water Charges not acknowledged 2,876,675 2,876,675

(f) Difference in Rate of VAT contested before Maharashtra VAT Tribunal for the period Feb 2006 to January 2008 14,019,268 14,019,268

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Mar 31, 2012

1.1.1 Contingent Liabilities are not recognised but are disclosed in financial statements. Provision involving substantial degree of estimation in measurement is recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources.

Note Particulars 2012 2011 (Rs.) (Rs.)

1.2.1 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not acknowledged as 7,601,886 7,601,886 debt (Excluding interest claimed by the parties)

(b) Claims from Creditors/Stockiest whose credit balance 18,880,734 18,880,734 have been assigned to a customer of the company

(c) Income Tax demand for earlier years 2,701,112 2,701,112

(d) Interest on VAT, as per Order of Additional 23,318,001 - Commissioner of Sales Tax for the Period April 2007 to March 2012 Challenged by company with BIFR

(e) Water Charges not acknowledged 2,876,675 2,876,675

(f) Difference in Rate of VAT contested before 14,019,268 14,019,268 Maharashtra VAT Tribunal for the period Feb 2006 to January 2008

1.3.1 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

1.4.1 Previous year figures are regrouped wherever necessary to make them comparable with the figures of the current year.

1.4.2 Balances of loans/advances/ sundry creditors and debtors are subject to confirmation and adjustment if any.

1.4.3 In the opinion of Board of Directors the Current Assets, Loans and advances are stated not above the realization value in the ordinary course of business.

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Mar 31, 2009

1. CONTINGENT LIABILITIES :

CURRENT YEAR PREVIOUS YEAR

( As certified by management and relied upon by toe Auditors) (RUPEES) (RUPEES)

i) €laims lodged against me company not acknowledged as debts 7.601.886 7.601.886 ( Excluding interest claimed by the parties )

ii) Claims from Creditors/Stockiest whose credit balance have 18.880.734 18,880,734 been assigned to a customer of the company

iii) Income Tax demand for earlier years 2.701.112 2,701,112

iv) Water Charges not acknowledged 2.876,675 2,876,675

v) Difference in Rate of VAT contested before Maharashtra VAT Authorities for the period

Feb 2006 to January 2008 14,019,268 14,019,268

Geographical Segment

Since the Companys entire business is conducted within India, there are no separate reportable geographical segments.

2. Related party Disclosures :

a. List of and relationship with related parties with whom transactions have taken place during the year:

Name of the Related Party: Nature of the Relationship

Vadilal Industries Limited Associates

Vadilal Chemicals Limited Associates

Bela Investment & Finance Company Ltd Associates

Shree Jay Ambe Company Associates

Shri S.R. Gandhi Key Management Personnel

3. Deferred tax recognisation on timing difference, being the difference between taxable income & accounting income that originate in one period & are capable of reversal in one or more subsequent periods. The deferred tax charge or credit is recognised using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Deferred Tax Liability for the year is Rs. 1,827,719/- (P. Y. Rs.2,071,450) and Deferred Tax Asset for the year is Rs.23,695,696/- (P. Y.25,972,984/-).

4. The balances of Sundry Debtors, Creditors and advances are subject to confirmation. Adjustment including provision/write off if any, required in accounts will be made on final reconciliation and/or settlement.

5. In the absence of adequate information regarding the SSI Creditors, the Company is unable to give full particulars as required by Notification No. GSR - 376 (E) dated 22nd May 2002 issued by the Department of Company Affairs, Ministry of Law & Justice and Company Affairs.

6. Aggregate Managerial Remuneration under Section 198 of the Companies Act, 1956 paid or provided for during the year to the Managing Director and other directors is Rs 1,083,000/- (RY. Rs.944,549/-).

7. Unclaimed dividends are subject to reconciliation.

8. Unless otherwise stated, in the opinion of the Board of Directors, the current assets, loans & advances are approximately of the value if realised in the ordinary course of business. The provisions for all known liabilities made are adequate and are neither short nor in excess of the amount reasonably necessary.

9. Balances amounting to Rs. 143,922/- (RY. 1,43,922/-) with various banks are subject to confirmation and reconciliation (if any).

10. Figures in Brackets in the Notes forming part of the accounts relate to the previous year.

13. Previous year figures have been re-grouped/re-arranged wherever necessary to make them comparable with current year figures.

11. In view of Companies past brought forward losses and unabsorbed depreciation, company has not made any Provision for Taxation.