Notes to Financial Statements:

1 Corporate Information:

Swojas Energy Foods Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is listed on BSE, however, currently the trading is suspended by BSE due to non-compliance with the Listing Agreement after commencement of liquidation proceedings.

Mr Vishal Dedhia, Mr Ketan Kataria and Mr Amar Kakaria (collectively called as "New Promoters") had taken over majority stake in the Company from M/s Parmalat SpA, Italy by making necessary compliance under various applicable regulations including Open Offer under SEBI Takeover code during the financial year 2013-14 with an intention to revive the Company. The Open Offer process had got duly completed under the supervision of Sebi in June 2014 and thereafter, Parmalat's stake was transferred to New Promoters in July 2014 after remitting money to them. Since then, New Promoters had taken various measures to revive the Company in consultation with the Liquidator. The Company had successfully initiated a process to revoke its voluntary winding up status by passing a special Resolution in Extra Ordinary General Meeting held on 20th April, 2015 convened by the Liquidator under the Company Court Rules, 1959 and thereafter, by filing necessary forms with the Ministry of Corporate Affairs in the same month. During the said meeting, the Liquidator had brsented the certified financial statements by following Generally Accepted Accounting Principles (GAAP) as on 30th Nov, 2014 and the shareholders approved the same by passing a special resolution.

Based on the corporate filing and rebrsentations made, the MCA changed the status of Company from "Under Liquidation" to "Active" and also brought it out of liquidation on 15th August 2015.

The company was originally engaged in the business of Production of dairy food products and subsequently, the shareholders passed a special resolution to enter into food grains & related products during the Extra Ordinary General Meeting held on 20th April, 2015 which was convened by the Liquidator under the Company Court Rules, 1959

2 Significant Accounting Policies:

2.1 Basis of brparation:

During the period under Liquidation, the Company was not following basic assumption of "Going Concern" while brparing financial statements and accounting was done by using cash method instead of accrual method. Instead of financial statements in the form of Profit & Loss A/c and Balance Sheet at the end of every fiscal year, the Liquidator used to brpare Liquidators' Statement of Accounts every year on 31st August i.e. 12 months from the date of appointment of the Liquidator. The Liquidator had brpared last statement of accounts as on 31st August 2014 before revival of the Company.

Since the Ministry of Corporate Affairs has approved the forms and brought the Company out of liquidation, the Financial Statements for the financial year 2014-15 have been brpared in accordance with the generally accepted accounting principles ('GAAP') applicable in India. The Company has brpared these financial statements to comply in all material respects with the provisions of the Companies Act, 2013 ('the Act') and accounting standards notified under Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014. The financial statements have been brpared on an accrual basis and under the historical cost convention. The financial statements are brsented in Indian Rupees. All Assets and Liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013.

Due to differential set of accounting principles and policies adopted after the commencement of winding up process, the financial statements using GAAP could not be brpared for historical period.

2.2 Use of Estimates:

The brparation of Financial Statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made by management that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

2.3 Revenue Recognition:

Income and expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from sales transaction is recognized as and when the significant risk and reward attached to ownership in goods is transferred to the buyer. However leave with wages and bonus is accounted on cash basis.

Prompt payment rebate and overdue charges are determined and accounted for on termination of the contracts.

2.4 Fixed Assets and Debrciation:

During the course of liquidation, the Liquidator had realized all the assets and used the proceeds to make payment towards liabilities and cost of liquidation.

As on date, the Company does not have any intangible fixed assets and hence, no debrciation has been provided. On getting custody of records from the Liquidator, careful analysis would be done to assess whether the Company had got any intangible assets in the past.

2.5 Investments

Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made are classified as current investments in accordance with the RBI guidelines and Accounting Standard 13 on 'Accounting for Investments' as notified under the Companies (Accounting Standards) Rules, 2006. Current investments also include current maturities of long- term investments. All other investments are classified as non- current investments. Current investments are carried at lower of cost and market price determined category- wise. All non - current investments are carried at cost.

2.6 Impairment:

Since the Company did not have fixed assets during the financial year under review, the provision related to impairment of assets would not be applicable.

2.7 Borrowing Costs:

The Company was under liquidation since 31st August 2000 and after the appointment of Liquidator, the Company had not taken any loans from any bank / third party. Further, the Liquidator had realized different assets and used the proceeds to repay loans / liabilities.

Since, the Company has not taken any loans, there was no expenditure towards borrowing costs during the financial year 2014-15.

2.8 Cash Flow Statement:

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.9 Employee Benefits:

The operations of the Company was managed by the Liquidator and there were no employees on the payroll of the Company during the period under review.

2.10 Taxation:

Current tax is determined as the amount of tax payable in respect of taxable income for the year computed in accordance with relevant provisions of Income Tax Act, 1961.

In accordance with the guidance note issued by the Institute of Chartered Accountants of India ('ICAI') on accounting for credit available in respect of Minimum Alternate Tax (MAT) under the Income Tax Act, 1961,

2.11 Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized only when there is a brsent obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent Liability are not recognized in the financial statements. Contingent Assets are not recognized in the financial statements.

2.12 Earnings per Share:

The basic earnings per share are computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

2.13 Segment Reporting:

The Company used to originally sell milk and dairy products, however, its operations stopped completely after the commencement of winding up proceedings after 31st August 2000. Since the operations of the Company were continued to be managed by the Liquidator during the financial year 2014-15, no segmental reporting was done.