Notes to the Financial Statements as at 31.03.2015 23rd annual report 2014-2015

Note 1 SIGNIFICANT ACCOUNTING POLICIES

a) ACCOUNTING CONVENTION

The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India under the historical cost convention on accrual basis. Pursuant to Section 133 of the Companies Act, 2013 ("the Act"), read with Rule 7 of the Companies(Accounts) Rules 2014, till the standards of accounting or any addendum thereto are brscribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been brpared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 (Companies (Accounting Standards) Rules, 2006, as amended) and other relevant provisions of the Companies Act, 2013.

b) RECOGNITION OF INCOME AND EXPENDITURE

Revenues/Incomes and Cost/Expenditures are accounted on accrual as they are earned or incurred in accordance with the generally accepted accounting principles, Accounting Standard and provisions of the Companies Act, 1956. The service charges are recognised at gross amount received / receivable on completion of performance or receipt, whichever is earlier.

c) RETIREMENT AND PENSION BENEFITS

i) Retirement benefits in the form of Provident fund and Family Pension fund is a defined contribution scheme and the contributions are charged to the profit and loss account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

ii) Gratuity is a defined benefit obligation. Gratuity liability is accrued and provided for on the basis of an actuarial valuation on the projected unit credit method made at the end of the financial year.

iii) Long term compensated balances in the form of leave encashment are provided for based on actuarial valuation at the end of the financial year. The actuarial valuation is done as per projected unit credit method.

iv) Actuarial gains/losses are debited to profit and loss account and are not deferred.

d) FIXED ASSETS

i) Fixed Assets are stated at cost, less accumulated debrciation other than 'Leasehold Land', where no amortization is made. The cost includes taxes, duties, freight and other incidental expenses related to acquisition, installation and commissioning.

ii) Capital subsidies, if any, on acquisition of specified fixed assets are reduced from the original cost and the net amount are adopted as the historical cost of gross block and debrciated accordingly.

iii) Capital work in progress is capitalized as fixed assets on the date of commissioning of the asset.

e) METHOD OF DEbrCIATION AND AMORTISATION:

i) Debrciation on Fixed Assets is provided to the extent of debrciable amount on the Straight Line Method (SLM).Debrciation is provided based on useful life of the assets as brscribed in the Schedule II of the Companies Act,2013.

ii) An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

f) VALUATION OF INVENTORIES :

i) Raw Material, Packing Material- At cost

ii) Finished Goods (Including Goods in Transit)- At cost or net realisable value

iii) Stock in Process- At cost

iv) By Products- At net realisable value

v) Loose Tools- At cost and charged off when discarded

In the above, cost is arrived at by weighted average cost method and in case of Finished Goods and Stock in Process it also includes manufacturing & related establishment overheads, interest and debrciation.

g) INCOME TAX

Provision for current Income Tax is made on the basis of estimated taxable income after taking into consideration, estimates of benefits admissible under the provisions of Income Tax, 1961. The company provides for deferred tax liability (after netting off deferred tax assets), based on the tax effect of timing difference resulting from the recognition of items in the financial statements. Deferred tax assets (after, netting of deferred tax liabilities), are generally not recognized unless there is strong circumstances exists for its adjustment/realization in near future.

h) SEGMENT REPORTING:

The segment reporting, if any & to the extent identified, is made in accordance with the company's accounting policies as enumerated above unless otherwise separately stated along with the segment results.

i) PROVISIONS AND CONTINGENT LIABILITIES:

i) A provision is recognized when the company has a brsent obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its brsent value and are determined based on management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

ii) The disclosure is made for all possible or brsent obligations that may but probably will not required outflow of resources, as contingent liability in the financial statements.

Note 2 In the opinion of the board, the current assets, loans & advances have a value on realisation in the ordinary course of business at least equal to the amount at which these are stated in the balance sheet as at 31.03.2015.

Note 3 The balances of some of the Sundry Creditors, Loans & Advances are subject to letters of confirmations without expecting any major deviations to affect materiality of these accounts.

Note 4 Upto the end of the brvious reporting periods, the Company had two business segments viz. (i) Manufacturing of Vanaspati; (ii) Liquor, identified as discontinued operations. During the brvious year, the discontinued operations were completed and the remaining assets or liabilities which continue after the discontinued operations are completed, have been eliminated from the disclosures of Discontinued operations. After the completion of said discontinued operations were completed, the company has not yet commenced any new sustainable business activity and therefore these accounts have been brpared on the same basis without following the going concern assumption as in the brvious years. In view of these facts, the company has not identified any separate business segment for its review and disclosures. The intermittent trading operations, if any, which may be non-recurring and casual in nature, has not been considered as a separate business segment for the purpose of reviewing its operations.

Note 5 The company has a defined benefit gratuity plan & leave encashment as long term benefits to employees. In view of the limited number of employees left on discontinued operations of the company, the actuarial valuation has not been carried out during the year for such long term benefits. However, in compliance of AS-15, a reasonable estimate of company's liability towards such long term benefits to all the employees, has been made on the brsumption as if all are retiring on the balance sheet date.

Note 6 There are no amount due to small scale Industrial undertaking suppliers,covered under Micro, Small and Medium Enterprises Development Act, 2006.

Note 7 PROVISION FOR INCOME TAX

The provision for the current Income Tax is not considered necessary for the financial year 2014-2015 in view of the brought forward business loss, unabsorbed debrciation allowance, other deductions and benefits under the provisions of Income Tax Act, 1961.

Note 8 Expenditure in Foreign Currency during the year- Nil (Previous Year Nil)

Note 9 Value of Imports on CIF Basis- Nil (Previous Year Nil)

Note 10 Value of imported and indigenous raw materials, stores, spare parts and components consumed -Nil

Note 11 The brvious year's figures have been re-classified/re-grouped wherever required to conform with the current year's figures.

For Satendra Rawat & Co

Chartered Accountants

FRN- 008298C

(CA. Satendra Rawat)

Partner

Membership No.- 074126

For and on behalf of the Board of Directors

Narendra Singh (Director) DIN: 01881694

Bisht J K Jain  (Director) DIN: 00120204

Bhanumati Ramachandran (Company Secretary)

Date : 29.05.2015

Place : New Delhi