Notes to the Financial Statements for the Year Ended 31st March, 2015

Note -1

Significant Accounting Policies

a. Basis of Preparation :

The Financial Statements are brpared on Historical Cost Convention. Financial Statements are brpared in accordance with relevant brsentational requirements of the Companies Act, 2013 and applicable mandatory Accounting Standards as brscribed under section 133 of Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014.

b. Basis of Accounting :

The accounts are brpared on the historical cost convention following the accrual system of Accounting except leave encashment to the employees.

c. Revenue Recognition:

1. Sales are exclusive of sales tax/excise duty and net of returns and are taken into account on passing of the title of goods, Sales on consignment and expenses thereof are being accounted for in the year of receipt of Account Sales from respective consignees.

2. Other income and expenses are accounted for on accrual basis except mentioned above.

d. Fixed Assets:

All fixed assets are stated at cost including incidental expenses thereto. Revalued assets are stated at the values determined on revaluation.

e. Debrciation:

1. Debrciation on fixed assets including revalued assets have been provided based on useful life assigned to each asset brscribed in accordance with Part - "C" of \ Schedule-II of the Companies Act, 2013

2. Debrciation on additions/ deletions is being provided on pro-rata basis from the date of such additions/ deletions,

3. Debrciation on Revalued Assets is adjusted with Revaluation Reserve.

f. Impairment of Assets :

1. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their brsent value at the weighted average cost of capital.

2. After impairment, debrciation is provided on the revised carrying amount of the assets over its remaining useful life.

g. Investments:

Investments of long term in nature are stated at cost. No diminution in the value is recognized, if the same is not permanent in nature.

h. Valuation of Inventories :

> Finished Goods : Lower of cost or market realizable value

> Raw Materials : At cost  

>Packing Materials : At cost

> Stores & Spares : At cost

>Work in Process : At estimated cost (which includes Cost of Raw Materials, Labor & relevant overheads)

i. Retirement Benefits :

1. Definite Contribution:

The company contributes to Provident Fund and ESI which are charged to Profit & Loss Account.

2. Definite Benefit Obligation

Gratuity is not funded and is provided for in the accounts on the basis of actuarial valuation under projected accrued benefit method.

j. Income Taxes:

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

In situations where the company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

k. Earnings per Share :

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit/ loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

1. Provisions, Contingent Liabilities and Contingent Assets :

A provision is recognized when an enterprise has a brsent obligation as a result of past event; 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 best 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 best estimates.

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

Note No. 2

OTHER NOTES ON ACCOUNTS :-

i. Contingent Liabilities not provided for:

a) Demand under West Bengal Sales Tax Act for the year 2004-05 of Rs.82.38 Lacs is under appeal.

b) Custom Duty demand of Rs. 317296/- against import of Crude Palm Oil for the period from 05/12/2008 to 11/04/2010, as per order of Commissioner Central Excise (Appeals-I) against which Appeal is brferred before Appellate Tribunal.

ii. The company's Sales Tax dues amounting Rs.1,01,43,000/- was converted into a soft loan carrying interest @ 6.75% p.a. by the Government of West Bengal, which was repayable in eight equal installment commencing from 31/12/2000. The Principal and interest has not been paid by the Company, through the liability for interest has been accounted for as per agreement.

iii. FIXED ASSETS:

a) The Company has revalued its LAND and BUILDINGS by a Chartered Engineer as on 07thNovember,2014. The Difference between the Revalued cost and the book value of the respective assets as on 07th November , 2014 aggregating to RS 53,34,37,440 has been shown as addition during the year and a equal thereof has been credited to revaluation reserve account.

b) Debrciation for the year includes debrciation amounting to Rs.17,58,328/- on account of Revaluation which has been adjusted against revaluation reserve.

c) The Company has dismantled all the Plant and Machinery as it stood in its books as on 01STApril, 2014. The Company has sold the entire plant and Machinery so dismantled during the year.

d) No Debrciation on the Plant and Machinery for the year has been charged in the accounts as Per The Companies Act, 2013 as the entire block of Plant and Machinery has been dismantled for sale as on 01st April 2014.

e) The difference between the sale proceeds and the Book value of the Plant and Machinery has been debited to Loss on sale of Fixed Assets. The Balance lying to the credit in the Revaluation Reserve in respect of the Plant and machinery has been reversed and adjust with profit on sale of fixed assets.

f) The Management has discarded the entire Furniture and Fixture as it stood in the Books as on 01st April, 2014 amounting to Rs. 99,337 and the same is debited to profit and loss account.

iv. The Management has found that the entire stores and spares amounting to Rs. 3,27,988 as on 01st April , 2014 have become obsolete and have written off the same . The same has been included in the Consumption of Stores and spares.

v. The stock of Inventories amounting to RS 13,214 as on 01stApril, 2014 has become unfit for human consumption and has written off the same. The same has been included in the Increase/ [Decrease) in stock.

vi. The Company has consolidated its Authorised Share Capital by cancelling the Preference Share Capital and aggregating with Equity Share Capital.

vii. In the opinion of the management, the Company has provided the provisions for deferred tax assets on account of carry forward losses as well as on the timing differences for the period in which there is virtual certainty of sufficient future income for realisation in future years, in accordance with AS-22 " Accounting For Taxes On Income " issued by the Institute of Chartered Accountants of India.

viii. No provision for taxation has been made during the year since neither there is taxable income nor book profit was earned as per the provisions of section 115JB of The Income Tax Act, 1961.

ix. The Financial Statement and Notes on Account has been brpared as per Companies Act, 2013 with their Schedule as the same is effective from 1st April, 2014.

x. Effective from 1st April, 2014, the Company has charged debrciation based on the useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013. It has recomputed the debrciation on various fixed assets in accordance with and in the manner brscribed with Part C of Schedule II of the Companies Act, 2013. The aggregate difference between the debrciation so computed as per the companies Act, 2013 till 31st March, 2014 and the debrciation charged in the accounts till 31st March, 2014 has been debited to the opening balance of profit & Loss Account, if required.

xi. SEGMENT REPORTING:

a) The Company has discontinued its brsent operation i.e. manufacturing and trading in Vanaspati and Edible Oil and commodities. Thus there are now no reportable segments because of discontinued operation.

b) The Company is in the process of commencing Real Estate Business for which it is taking steps for completion of necessary formalities. It has incurred certain expenses and the same is shown as br-operative expense under project expenses.

Xii Project Expenses under capitalization is in respect of real Estate business which will be capitalized upon completion of project

xiii. No amount is due to Micro, Small and Medium Enterprises (identified on the basis of  information made available during the year by such enterprises to the company). No interest in ; terms of Micro, Small and Medium Enterprises Development Act, 2006 has been either paid or accrued during the year.

xiv. Regarding Impairment of Assets under AS-28 issued by the ICAI the Company has undertaken a systematic process to find out the realization value of the assets. Impairment if any, will be considered in the Accounts in the year in which it is ascertained.

xv. Regarding provision of contingent liabilities and assets under AS29 issued by the I.C.A.I the -company is in process to ascertain the value of contingent liabilities and assets and suitable provisions will be made as soon as figures are ascertained.

xvi. No provision for gratuity has been made in respect of existing employees as they have not put in completed year of service.

xix. No provision for leave salary has been made in the accounts as there are no leave to the credit of : the employees during the current financial year.

xvii. Figures of the current year have been regrouped/rearranged or reclassified where ever . considered necessary to conform to current year brsentation.

As per our report of even date

For Maroti & Associates

Chartered Accountants

Komal Surana

Partner

Membership No. 303583

Firm Registration No. 322770E -

Place : Kolkata

Date :26th Day of May, 2015