Notes to Accounts of Ajanta Soya Ltd.

Mar 31, 2025

xvi) PROVISIONS

A Provision is recognized when the company has a present 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.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

xvii) CONTINGENT LIABILITIES

A disclosure is made for a contingent liability when there is a:

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or
more uncertain future events, not fully within the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be
required to settle the obligation;

c) present obligation, where a reliable estimate cannot be made."

xviii) SEGMENT REPORTING
Basis of Segment Reprting

The company''s operating businesses are organized and managed separately according to the nature of
products and services provided, with each segment representing a strategic business unit that offers different
products and serves different markets.

Inter-segment Transfers

The Company generally accounts for inter-segment sales and transfers as if the sales or transfers were to third
parties at current market prices.

Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to
the total common costs.

Unallocated items

Other segment includes income and expense items which are not allocated to any business segment.

xix) CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and
short-term investments with an original maturity of three months or less. Non-cash transactions are excluded
from the cash flow statement.

As per our report of even date attached

For TAS ASSOCIATES For and on the Behalf of Board of Directors

Chartered Accountants

Firm Registration No: 010520N g^ g^_

Sushil Kumar Goyal Abhey Goyal

M_uk_esh Aa_rawal (Managing Director) (Whole Time Director)

_Partner ^a DIN:00125275 DIN:02321262

Membership Number-090582

Sd/- Sd/-

Place : New Delhi Jai Gopal Sharma Kapil

Date : 30^th May 2025 (Chief Financial Officer) (Company Secretary)

UDIN: 25090582BMMAFV8912 PAN:ANYPS9660D M.NO. 10992

---

Mar 31, 2024

xvi) PROVISIONS

A Provision is recognized when the company has a present 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.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

xvii) CONTINGENT LIABILITIES

A disclosure is made for a contingent liability when there is a:

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain future events, not fully within the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;

c) present obligation, where a reliable estimate cannot be made.

xviii) SEGMENT REPORTING Basis of Segment Reprting

The company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.

Inter-segment Transfers

The Company generally accounts for inter-segment sales and transfers as if the sales or transfers were to third parties at current market prices.

Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

Unallocated items

Other segment includes income and expense items which are not allocated to any business segment.

xix) CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less. Non-cash transactions are excluded from the cash flow statement.

Note : 39 Credit facilities:

i) The company has borrowings from bank on the basis of security of current assets.

ii) There is no material discrepencies in quarterly returns or statements of current assets filed by the company during the year with bank and books of account.

Note : 40 Fair value measurements:

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial assets, financial liability and equity instrument are disclosed in Note 1(Viii) to the financial statements.

42 Segment Reporting:

The only segment identified by the company during the year under report is Vanaspati and Refined oil segment, which forms the basis of review of operating performance by the management. In line with the practice and considering the nature of the materiality in operations, the dealing in shares/securities has not been reported as a separate segment. Accordingly the segmental information as required in accordance with the Ind AS-108 as specified in the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 is not given, as there is only one segment of the company.

43 Operating Lease:

Lease Payments:

a) The Company has entered into Lease transaction mainly for leasing of Office Premises. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation.

b) The operating lease payments recognized in Profit & Loss A/c Rs. 11.21 lacs (P.Y Rs.9.42 lacs) for the lease which commenced on or after April 01,2001.

c) General description of Lease terms:

i) Lease payments are made on the basis of agreed terms;

ii) The premises are taken on operating lease for a period of three years with a lock in period of one years from the date of conmencement.

44 Forward exchange Contracts entered into by the company and outstanding :

For hedging currency related risk:

Nominal amount of forward exchange contracts entered in to by the company and outstanding as at 31.03.2024 for Rs. Nil (P.Y. Rs. 2475.35 lacs) covered by financial hedge.

45 Contribution towards Corporate Social Responsibility

As per section 135 of the Companies Act 2013, a company, meeting the applicability threshold , needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities as specified in schedule VII of the act. The areas for CSR activities are food for everyone and Child Literacy with Mid-Day Meals, Udaan - An initiative by Be Kind Towards Women Empowerment, Distribution of Books and career counseling to female beneficiaries (Women empowerment), school and hospitals projects.

A CSR committee has been formed by the company as per the act. As informed by the chairman of the CSR committee, during the year the immediate preceding financial year the company''s turnover is more than Rs. 1,000 Crore hence CSR activities during the financial year2023-24 as per Section 135 ofthe companies act, 2013 is applicable. . .

46 Financial risk management

In the course of its business, the company is exposed primarily to fluctuations in foreign currency exchange rates, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The company has a risk management policy which not only covers the foreign exchange risks but also other risk associated with financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the Board of Directors. The risk management framework aims to:

(i) create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the company''s business plan.

(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in adance.

(A) Credit risk

The company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. Maximum exposure to credit risk of the company has been listed below:

i) Trade receivables

Customer credit risk managed by the company is through established policy and procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and generally carrying upto 21 days credit terms. The company has a detailed review machanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation. Trade receivables are consisting of a large number of customers. Where credit risk is high, trade receivables are backed by security deposits/bank guarantee.

(B) Liquidity risk

The company''s current assets aggregate Rs. 15,913.01 lacs (2023- Rs. 18,229.73 lacs) including inventories, current investments, cash and cash equivalents and other bank balances of Rs. 14,195.83 lacs (2023- Rs. 14,106.43 lacs) against aggregate current liability of Rs. 7,854.15 lacs (2023 Rs. 9,932.53 lacs). The balance of other non-curret liabilities are Rs. 720.94 lacs (2023- Rs. 679.28 lacs) on the reporting date.

Further, while the company''s total equity stands at Rs. 13,069.89 lacs (2023- Rs. 12,580.03 lacs), it has non-current borrowings of Rs. Nil (2023- Rs. Nil). In such circumstances, liquidity risk or the risk company may not settle or meet its obligations as they become due does not exist

(C) Foreign currency risk

The company deals with foreign currency trade payables and is therefore exposed to foreign exchange risk associated with exchange rate movement.

The company is exposed to foreign exchange risk through its purchases from overseas suppliers in foreign currencies.

Foreign currency risk exposure

The company''s exposure to foreign currency risk at the end of the reporting period expressed in INR (Foreign currency amount multiplied by closing rate) are as follows:

include implementing hedging strategies for foreign currency exposures, specification of transaction limits; identification of the personnel involved in executing, monitoring and controlling such transactions.

(D) Commodity Price Risk

The main raw material i.e. crude edible oil, which company procures is global commodity and their prices are to a great extent linked to the movement in global prices directly or indirectly.

The pricing policy of the Company final product is structured in such a way that any change in price of raw materials is passed on to the customers in the final product however, with a time lag which mitigates the raw materials price risk. 47 Disclosure required under Section 186(4) of the Companies Act, 2013

i). Details of Investment made are given in Note - 5 of Financial Statements.

48 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(viii) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

49 Previous year''s figures have been regrouped/reclassified, wherever considered necessary, to conform to current year''s classification.

>4s per our report of even date attached

For and on the Behalf of Board of Directors

For TAS ASSOCIATES

Chartered Accountants

^{|CA| Firm re}g^{istration number: 010520N} Sushil Kumar Goyal Abhey Goyal

(Managing Director) (Whole Time Director) DIN:00125275 DIN:02321262

Mukesh Agrawal

Partner

Membership number:090582

ed/- ed/-

Place : New Delhi Jai Gopal Sharma Kapil

Date : 30^th May, 2024 (Chief Financial Officer) (Company eecretary)

UDIN : 24090582BKDHEE7350 PAN:ANYPe9660D M.NO. 10992

---

Mar 31, 2023

The shareholders of the Company have through Postal Ballot on 23rd May, 2022 approved the sub-division of face value of the Equity Shares of the Company from Rs. 10/- (Rupees Ten only) to Rs. 2/- (Rupee Two only), Accordingly, the holder(s) of the Equity Shares of the Company have received “5" Equity Shares of face value of Rs. 2/- each in lieu of "1" Equity Share of face value of Rs. 10/- each and accordingly the number of equity shares in the paid up equity capital of the Company has been changed from the 17^th June, 2022 onwards.

Terms of Rights, preferences and restriction attached to shares

The Company has only one class of equity shares having a par value of Rs. 2 (31st March 2022: Rs. 10) per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed, if any, by the Board of Directors is subject to the approval of shareholders except in case of interim dividend. In event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amount in proportion of their shareholding.

The above loans are secured by way of:

i) First pari-passu charge including hypothecation of company''s entire current assets both present and future along with Standard chartered bank in consortium.

ii) Further secured by way of personal guarantee of managing director, four other directors & two relatives of directors of the company along with a corporate guarantee of another companies under the same management.

iii) Collaterally secured by way of first pari-passu charge with Standard chartered bank under consortium :-

a) On entire fixed assets of the company, including factory land & building but excluding leasehold one commercial flat at Bigjos Tower, wazirpur, Delhi.

b) On a commercial property belonging to relatives of directors/group company.

c) Lien on fixed deposit of Rs. 5 crore.

iv) The working capital limits are valid for twelve months and are renewable on year to year basis

Note: 32 Contingent Liabilities and commitments: I. Contingent Liabilities:			(Rs. in lacs)
	Particulars	2022-23	2021-22
	a) Claims against the company not acknowledged as Debt. b) Guarantees : i) In favour of Punjab State Co-op. Supply & Marketing Federation Ltd. (MARKFED) [Above are secured by way of lien marked fixed deposits of Rs. 2.35 lacs (inclusive of accrued Interest) (Refernote no.12) ii) In favour of Rajasthan Renewable Energy Corporation Limited (RREC) [Above are secured by way of lien marked fixed deposits of Rs. Nil ( 31st March 2022: 1.52 Lacs) (inclusive of accrued Interest) (Refer note no.12) c) Other Money for which the company is contingently liable : i) Demand raised by FSSAI : [Demand raised by FSSAI during F.Y. 2018-19 wide order dated 24.05.2018 pending under appeal with food safety appeallate tribunal. The company had deposited a sum of Rs. 2 lacs under protest which has been shown under the head other non current assets.](Refernote no. 8) ii) Custom duty [ Demand raised by Custom duty department in relation to AY 201718 on import of CPO. Appeal has been filed with CESTAT, Delhi against the demand. Demand comprises of custom duty of Rs. 105.18 lacs and penalty of Rs. 110.43 lacs. The company had deposited a sum of Rs. 7.89 lacs which has been shown under the head other non current assets.](Refer note no. 8) iii) Corporate Guarantee [Corporate guarantee in f/o banks, in lieu of such banks having extended various secured fund based & non-fund based credit facilities in favour of a related party. ]	15.00 4.00 215.62 8,910.00	15.00 10.00 4.00 215.62 4,910.00
II.	Commitments:		(Rs. in lacs)
	a) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advance) (Refer note no. 8)	435.00	435.00
	b) Other Commitments	-	-

Note :33 Disclosure for Employee Benefits:

The company has a defined benefit gratuity plan as employee long term benefits. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit Entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

38 Credit facilities:

i) The company has borrowings from bank on the basis of security of current assets.

ii) There is no material discrepencies in quarterly returns or statements of current assets filed by the company during the year with bank and books of account, except the following:

39 Fair value measurements:

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial assets, financial liability and equity instrument are disclosed in Note 1(Viii) to the financial statements.

41 Segment Reporting:

The only segment identified by the company during the year under report is Vanaspati and Refined oil segment, which forms the basis of review of operating performance by the management. In line with the practice and considering the nature of the materiality in operations, the dealing in shares/securities has not been reported as a separate segment. Accordingly the segmental information as required in accordance with the Ind AS-108 as specified in the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 is not given, as there is only one segment of the company.

42 Operating Lease:

Lease Payments:

a) The Company has entered into Lease transaction mainly for leasing of Office Premises. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation.

b) The operating lease payments recognized in Profit & Loss A/c Rs. 9.78 lacs (P.Y. Rs.6.24 lacs) for the lease which commenced on or after April 01,2001.

c) General description of Lease terms:

i) Lease payments are made on the basis of agreed terms;

ii) The premises are taken on operating lease for a period of five/ Six years with a lock in period of two years from the date of conmencement.

43 Forward exchange Contracts entered into by the company and outstanding :

For hedging currency related risk:

Nominal amount of forward exchange contracts entered in to by the company and outstanding as at 31.03.2023 for Rs. 2475.35 lacs (P.Y. Rs. 2011.39 lacs) covered by financial hedge.

44 Contribution towards Corporate Social Responsibility

As per section 135 of the Companies Act 2013, a company, meeting the applicability threshold , needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities as specified in schedule VII of the act. The areas for CSR activities are food for everyone and Child Literacy with Mid-Day Meals, Udaan - An initiative by Be Kind Towards Women Empowerment, Distribution of Books and career counseling to female beneficiaries (Women empowerment), school and hospitals projects.

A CSR committee has been formed by the company as per the act. As informed by the chairman of the CSR committee, during the year the immediate preceding financial year the company''s profit is more than Rs. 5 Crore hence CSR activities during the financial year 2022-23 as per Section 135 of the companies act, 2013 is applicable.

45 Financial risk management

In the course of its business, the company is exposed primarily to fluctuations in foreign currency exchange rates, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The company has a risk management policy which not only covers the foreign exchange risks but also other risk associated with financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the Board of Directors. The risk management framework aims to:

(i) create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the company''s business plan.

(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in adance.

(A) Credit risk

The company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. Maximum exposure to credit risk of the company has been listed below:

i) Trade receivables

Customer credit risk managed by the company is through established policy and procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and generally carrying upto 21 days credit terms. The company has a detailed review machanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation. Trade receivables are consisting of a large number of customers. Where credit risk is high, trade receivables are backed by security deposits.

(B) Liquidity risk

The company''s current assets aggregate Rs. 18,310.25 lacs (2022- Rs. 21,314.28 lacs) including inventories, current investments, cash and cash equivalents and other bank balances of Rs. 14,106.43 lacs (2022- Rs. 18,561.40 lacs) against aggregate current liability of Rs. 10,013.05 lacs (2022 Rs. 13,529.16 lacs). The balance of other non-curret liabilities are Rs. 679.28 lacs (2022- Rs. 606.16 lacs) on the reporting date.

Further, while the company''s total equity stands at Rs. 12,580.03 lacs (2022- Rs. 12,319.34 lacs), it has non-current borrowings of Rs. Nil ( 2022- Rs. Nil). In such circumstances, liquidity risk or the risk company may not settle or meet its obligations as they become due does not exist.

(C) Foreign currency risk

The company deals with foreign currency trade payables and is therefore exposed to foreign exchange risk associated with exchange rate movement.

The company is exposed to foreign exchange risk through its purchases from overseas suppliers in foreign currencies.

Foreign currency risk exposure

The company''s exposure to foreign currency risk at the end of the reporting period expressed in INR (Foreign currency amount multiplied by closing rate) are as follows:

Company manage risk on account of foreign currency fluctuations through limited hedging of specific transactions with its Bankers. Company''s risk management strategy is to identify risks they are exposed to, evaluate and measure those risks, decide on managing those risks, regular monitoring and reporting to management. The objective of company''s risk management policy is to minimize risk arising from adverse currency movements by managing the uncertainty and volatility of foreign exchange fluctuations by hedging the risk to achieve greater predictability and stability. Without venturing into the speculative aspects of dealing in currency derivatives, company''s aim to cover

foreseeable fluctuations with limited hedge cover so that moderate arbitrage efficiency is achieved against the existing borrowing rates of interest. Company''s risk management policies are approved by senior management and include implementing hedging strategies for foreign currency exposures, specification of transaction limits; identification of the personnel involved in executing, monitoring and controlling such transactions.

(D) Commodity Price Risk

The main raw material i.e. crude edible oil, which company procures is global commodity and their prices are to a great extent linked to the movement in global prices directly or indirectly.

The pricing policy of the Company final product is structured in such a way that any change in price of raw materials is passed on to the customers in the final product however, with a time lag which mitigates the raw materials price risk. 46 Disclosure required under Section 186(4) of the Companies Act, 2013

I). Details of Investment made are given in Note - 5 of Financial Statements.

ii) . Details of loans given are given in Note - 6 of Financial Statements.

iii) . Detail of Guarantee provided by the Company are as under:

47 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(viii) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

48 Previous year''s figures have been regrouped/reclassified, wherever considered necessary, to conform to current year''s classification.

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Mar 31, 2018

For transition as per Ind AS-101, first time adoption of Ind As, the carrying value of all Property, Plant and Equipments as at 1st April,2017 measured as per previous GAAP, is used as deemed cost of PPE.

* Buildings include Rs. 16.27 lacs (P.Y. Rs. 60.95 lacs) under Flat Buyer’s Agreement with physical possession pending Execution and Registration of Conveyance deed in the name of the Company.

** (1.i) Plant & Equipments having gross value of Rs. 14.37 crores were destroyed due to tire in the Factory premises during the year.

(1 .ii) Plant & Equipments having gross value of Rs. 6.20 crores were discarded/redundant due to technological advancement / new installation during the year.

(2) Plant & Equipments include Rs 67.95 lacs of borrowing cost capitalised during the year.

Notes :

(i) Investments in securities with intention to hold for long term and not held for sale are measured at FVTOCI and is charged/added to “Other Comprehensive Income”. Fair Valuation of unlisted securities is determined based on recent available audited financial results/published NAV''s and in case of listed securities the same is determined based on the prevailing market prices and published.

(ii) Securities other that (i) above are measured at FVTPL and is charged/added to “Statement of Profit & Loss account”.

Terms of Rights, preferences and restriction attached to shares

Note:

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed, if any, by the Board of Directors is subject to the approval of shareholders except in case of interim dividend. In event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amount in proportion of their shareholding.

Note:

1. The Shareholders at the AGM of the company held on 26th September 2017, by a special resolution, approved increase in authorised share capital from Rs. 15.50 crore to Rs. 16.10 crore consisting of equity shares of Rs.10/- each, thereby increasing the authorised equity share capital by 6 lakh equity shares of Rs. 10/- each.

2. The Board of directors at the board meeting held on 7th October 2017 alloted 6 lakh equity shares of Rs. 10/- each at an issue price of Rs. 53/- as preferential allotment, having lock in period upto 31st October 2018, to three persons being non promoters and unrelated to the directors.

NOTE: 1 TRANSITION TO IND AS

For the purposes of reporting as set out in Note 1, we have transitioned our basis of accounting from Indian generally accepted accounting principles (“IGAAP”) to Ind AS. The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended March 31, 2018. The comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (the “transition date”). In preparing our opening Ind AS balance sheet, we have made certain adjustments to amounts reported in financial statements prepared in accordance with IGAAP. An explanation of how the transition from IGAAP to Ind AS has affected our financial position and performance is set out in the following tables. On transition, we did not revise estimates previously made under IGAAP except where required by Ind AS.

A EXEMPTIONS AND EXCEPTIONS AVAILED

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Indian GAAP to Ind AS :

I Ind AS Exemptions :

i) Property, Plant and Equipments: The Company has elected to avail exemption under Ind AS 101 to use India GAAP carrying value as deemed cost at the date of transition for all items of property, plant and equipment & other intangible assets as per the statement of financial position prepared in accordance with previous GAAP.

ii) Derecognition of financial assets and financial liabilities: The Company has opted to apply the exemption available under Ind AS 101 to apply the derecognition criteria of Ind AS 109 prospectively for the transactions occurring on or after the date of transition to Ind AS.

II Ind AS mandatory exception

i) Estimates :The Company''s estimates in accordance with Ind ASs at the date of transition to Ind AS are consistent with estimates made for the same date in accordance with previous GAAP.

C. Notes on First time adoption:

1 Property, Plant & Equipment

As on the transition date to Ind AS i.e. April 1, 2016, the Company has valued its property, plant and equipment & other intangible assets at deemed cost at the date of transition.

2 Investments

(i) Investments in securities with intention to hold for long term, strategic investments and not held for sale are measured at FVTOCI and is charged/added to “Other Comprehensive Income”. Fair Valuation of unlisted securities is determined based on recent available audited financial results and in case of listed securities the same is determined based on the prevailing market prices.

(ii) Securities other that (i) above are measured at FVTPL and is charged/added to “Statement of Profit & Loss account”.

3 Employee Benefits

Both under Indian GAAP and Ind-AS, the company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit and loss. Under Ind-AS, remeasurements of defined benefit plans are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

4 Borrowing Costs

Ind AS 23, borrowing costs requires company to capitalise interest expenses incurred on qualifying assets at an effective interest rate, on the other hand there was no such requirement under Indian GAAP that the interest should be calculated as per effective interest method. The company capitalised the interest expense incurred on qualifying asset during the year calculated at the effective interest rate.

2. In the opinion of the Board, value on realisation of assets other than property, plant and equipments, intangible assets & non-current investments in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. Balances of debtors and creditors, on the Balance Sheet date are subject to reconciliation and confirmation from some of the parties. However the variation is not expected to substantially vary the results of the company for the year.

3. Disclosure for Employees Benefits:

The company has a defined benefit gratuity plan as employees long term benefits. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit Entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

4. Segment Reporting:

The only segment identified by the company during the year under report is Vanaspati and Refined oil segment, which forms the basis of review of operating performance by the management. In line with the practice and considering the nature of the materiality in operations, the dealing in shares/securities has not been reported as a separate segment. Accordingly the segmental information as required in accordance with the Ind AS-108 as specified in the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 is not given, as there is only one segment of the company.

5. Operating Lease:

Lease Payments:

a) The Company has entered into Lease transaction mainly for leasing of Office/Residential Premises including godown and company leased accommodation for its employees. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation.

b) The operating lease payments recognized in Profit & Loss A/c Rs. 11.43 lakh (P.Y. Rs.12.80 lakh) for the lease which commenced on or after April 01, 2001.

c) General description of Lease terms:

i) Lease payments are made on the basis of agreed terms;

ii) The premises are taken on operating lease for a period of five/ Six years with a lock in period of two years from the date of commencement.

6. Forward exchange Contracts entered into by the company and outstanding :

For hedging currency related risk:

Nominal amount of forward exchange contracts entered in to by the company and outstanding as at 31.03.2018 Rs.NIL P.Y. Rs.3,916.48 lakh.

7. Contribution towards Corporate Social Responsibility

As per section 135 of the Companies Act 2013, a company, meeting the applicability threshold , needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, health care, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects.

A CSR committee has been formed by the company as per the act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in schedule VII of the companies act, 2013. a) The gross amount required to be spent by the company during the year financial year is Rs.17.32 lakh {including previous year unspent contribution of Rs. (1.30 lakh)}

8. Previous year''s figures have been regrouped/reclassified, wherever considered necessary, to confirm to current year''s classification.

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Mar 31, 2016

1. Related Party Disclosures

The information given below is only in respect of the transactions entered into by the company during the year with the related parties.

A) Names of Related Parties and description of Relationship:

i) Enterprises in which Key managerial Personnel and their Relatives have significant influence

Dhruv Globals Limited

G.D. Ferro Alloys Private Limited

GDF Exports Pvt.Ltd

DG Estates Private Limited

Indian Vanaspati Producer Association

Ajanta Realtech Pvt. Ltd. (Formerly known as Swift Relocations Pvt. Ltd.)

Chander Prabhu Financial Services Ltd.

2. Segment Reporting:

The only segment identified by the company during the year under report is Vanaspati and Refined oil segment, which forms the basis of review of operating performance by the management. In line with the practice and considering the nature of the materiality in operations, the dealing in shares/securities has not been reported as a separate segment. Accordingly the segmental information as required in accordance with the Accounting Standard-17 as specified in the Companies Accounting Standards Rules, 2006 is not given, as there is only one segment of the company.

3. Operating Lease:

Lease Payments:

a) The Company has entered into Lease transaction mainly for leasing of Office/Residential Premises including godown and company leased accommodation for its employees. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation.

b) The operating lease payments recognized in Profit & Loss A/c Rs.12,26,090/- (P.Y.Rs.18,34,170/-) for the lease which commenced on or after April 01, 2001.

c) General description of Lease terms:

i) Lease payments are made on the basis of agreed terms;

ii) The premises are taken on operating lease for a period of six years.

4. Forward exchange Contracts entered into by the company and outstanding :

For hedging currency related risk:

Nominal amount of forward exchange contracts entered in to by the company and outstanding as at 31.03.2016 Rs.142,906,463/-P.Y. Rs.115,478,892/-.

5. Previous year’s figures have been regrouped/reclassified, wherever considered necessary, to conform to current year’s classification.

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Mar 31, 2015

1. In the opinion of the Board, value on realisation of assets other than fixed assets & non-current investments in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. Balances of debtors and creditors, on the Balance Sheet date are subject to reconciliation and confirmation from some of the parties. However the variation is not expected to substantially vary the results of the company for the year.

2. Disclosure for Employees Benefits:

The company has a defined benefit gratuity plan as employees long term benefits. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit Entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

3. Related Party Disclosures

The information given below is only in respect of the transactions entered into by the company during the year with the related parties.

A) Names of Related Parties and description of Relationship:

i) Enterprises in which Key managerial Personnel and their Relatives have significant influence

Dhruv Globals Limited G.D. Ferro Alloys Private Limited D.G. Estates Private Limited Indian Vanaspati Producer Association Ajanta Realtech Pvt. Ltd. (Formerly known as Swift Relocations Pvt. Ltd.) Chander Prabhu Financial Services Ltd.

ii) Key Managerial Personnel:

Sushil Goyal, Managing Director Abhey Goyal, Whole Time Director

4. Segment Reporting:

The only segment identified by the company during the year under report is Vanaspati and Refined oil segment, which forms the basis of review of operating performance by the management. In line with the practice and considering the nature of the materiality in operations, the dealing in shares/securities has not been reported as a separate segment. Accordingly the segmental information as required in accordance with the Accounting Standard-17 as specified in the Companies Accounting Standards Rules, 2006 is not given, as there is only one segment of the company.

5. Operating Lease:

Lease Payments:

a) The Company has entered into Lease transaction mainly for leasing of Office/Residential Premises including godown and company leased accommodation for its employees. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation.

b) The operating lease payments recognized in Profit & Loss A/c Rs.18,34,170/- (P.Y.Rs.18,55,650/-) for the lease which commenced on or after April 01, 2001.

c) General description of Lease terms:

i) Lease payments are made on the basis of agreed terms;

ii) The premises are taken on operating lease for a period of six years.

6. Forward exchange Contracts entered into by the company and outstanding :

For hedging currency related risk:

Nominal amount of forward exchange contracts entered in to by the company and outstanding as at 31.03.2015 Rs.115,478,892/ - P.Y. Rs. Nil.

7. Previous year's figures have been regrouped/reclassified, wherever considered necessary, to conform to current year's classification.

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Mar 31, 2014

1. Contingent Liabilities and commitments:

I. Contingent Liabilities:

a. Bank Guarantees / Letters of credit issued by the company in favour of 2013-2014 2012-2013

i) Foreign Letters of Credit against 770,613,990 316,820,868 import of Raw oil.

ii) Bank Guarantee issued in favour of Punjab State Co-op. Supplies & Marketing Federation Ltd 1,500,000 1,500,000

iii) Bills discounted with Company''s Bankers against their Bills Rediscounting Scheme and remaining outstanding as on 31st March 2014. However these bills are guaranteed by respective Commercial banks. 579,023,367 262,743,798

iv) Bank Guarantee issued in favour of Rajasthan State Polution Control Board, Jaipur - 240,000

v) Bank Guarantee issued in favour of Registrar, High Court of Punjab 700,000

TOTAL 1,351,837,357 581,304,666

Bank Guarantees / Foreign Letters of Credit are secured by way of lien marked Fixed Deposits (inclusive of Interest) and units of mutual funds under current investments Rs. 197016857/- (Previous year Rs. 94,226,000/-) (Refer note no. 15,18 & 20)

b Corporate guarantee given to a bank, in lieu of such bank having extended various secured fund based & non-fund based credit facilities, amounting in aggregate to Rs. 592,200,000/- (Previous year Rs. 467,200,000/-) to a related party.

c Demand of Rs.69.56/-lacs raised by Excise Department in financial year 2011-2012 pending under appeal. The company had deposited an amount of Rs.12 lacs under protest which has been shown under the head short term loans and advances.

d. Demand of Rs.7.69 lacs raised by Income Tax Department on Assessments against which are pending under appeals before commissioner appeals.

II. Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for in these accounts (Net of Advances) Rs. Nil (Previous Year Rs. Nil).

2. In the opinion of the Board, the current assets, loans & advances are recoverable at par in the ordinary course of business at a price at which they are stated in the Balance Sheet. Balances of debtors and creditors, on the Balance Sheet date are subject to reconciliation and confirmation from some of the parties. However the variation is not expected to substantially vary the results of the company for the year.

3. Disclosure for Gratuity and Leave Benefit Plans:

The company has a defined benefit gratuity plan. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit Entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

4. Related Party Disclosures

The information given below is only in respect of the transactions entered into by the company during the year with the related parties.

A) Names of Related Parties and description of Relationship:

i) Enterprises in which Key managerial Personnel and their Relatives have significant influence

Dhruv Globals Limited G.D. Ferro Alloys Private Limited D.G. Estates Private Limited Indian Vanaspati Producer Association Ajanta Realtech Pvt. Ltd. (Formerly known as Swift Relocations Pvt. Ltd.) Cosmic Alloys & Metal Works Pvt. Ltd. Chander Prabhu Financial Services Ltd.

ii) Key Managerial Personnel:

Sushil Goyal, Managing Director Abhey Goyal, Whole Time Director

5. Segment Reporting:

The only segment identified by the company during the year under report is Vanaspati and Refined oil segment. This business segregation forms the basis of review of operating performance by the management. In line with the practice and considering the nature of the materiality in operations, the dealing in shares/securities has not been reported as a separate segment. Accordingly the segmental information as required in accordance with the Accounting Standard-17 as specified in the Companies Accounting Standards Rules, 2006 is not given, as there is only one segment of the company.

6. The amount of Borrowing cost calculated in accordance with AS-16 and capatalized to fixed assets/cwip during the year is Rs. NIL (P.Y.Rs13,61,497).

7. Operating Lease:

Lease Payments:

a) The Company has entered into Lease transaction mainly for leasing of Office/Residential Premises including godown and company leased accommodation for its employees. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation.

b) The operating lease payments recognized in Profit & Loss A/c Rs.18,55,650/- (P.Y.Rs.1,680,732/-) for the lease which commenced on or after April 01, 2001.

c) General description of Lease terms:

i) Lease payments are made on the basis of agreed terms;

ii) The premises are taken on operating lease for a period of six years.

8. Previous year''s figures have been regrouped/reclassified, wherever considered necessary, to conform to current year''s classification.

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Mar 31, 2013

Bank Guarantees / Foreign Letters of Credit are secured by way of lien marked Fixed Deposits (inclusive of Interest) of Rs. 942,26,000 /- (Previous year Rs. 107,368,071/-) (Refer note no. 17 & 19) b Corporate guarantee given to a bank, in lieu of such bank having extended various secured fund based & non-fund based credit facilities, amounting in aggregate to Rs. 467,200,000/- (Previous year Rs. 702,700,000/-) to a related party. c Demand of Rs.69.56/-raised by Excise Department in financial year 2011-2012 pending under appeal. The company had deposited an amount of Rs.12 lacs under protest which has been shown under the head short term loans and advances.

II. Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for in these accounts (Net of Advances) Rs. Nil (Previous Year Rs. 99,82,202).

1 In the opinion of the Board, the current assets, loans & advances are recoverable at par in the ordinary course of business at a price at which they are stated in the Balance Sheet. Balances of debtors and creditors, on the Balance Sheet date are subject to reconciliation and confirmation from some of the parties. However the variation is not expected to substantially vary the results of the company for the year.

2 Disclosure for Gratuity and Leave Benefit Plans:

The company has a defined benefit gratuity plan. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit Entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

3 Related Party Disclosures

The information given below is only in respect of the transactions entered into by the company during the year with the related parties.

A) Names of Related Parties and description of Relationship:

i) Enterprises in which Key managerial Personnel and their Relatives have significant influence

Dhruv Globals Limited

G.D. Ferro Alloys Private Limited

D.G. Estates Private Limited

Indian Vanaspati Producer Association

Ajanta Realtech Pvt. Ltd. (Formerly known as Swift Relocations Pvt. Ltd.)

Cosmic Alloys & Metal Works Pvt. Ltd.

ii) Key Managerial Personnel:

Sushil Goyal, Managing Director Abhey Goyal, Whole Time Director

4 Segment Reporting:

The only segment identified by the company during the year under report is Vanaspati and Refined oil segment. This business segregation forms the basis of review of operating performance by the management. In line with the practice and considering the nature of the materiality in operations, the dealing in shares/securities has not been reported as a separate segment. Accordingly the segmental information as required in accordance with the Accounting Standard-17 as specified in the Companies Accounting Standards Rules, 2006 is not given, as there is only one segment of the company.

5 The amount of Borrowing cost calculated in accordance with AS-16 and capatalized to fixed assets/cwip during the year is Rs. 13,61,497/-, (P.Y.Rs1,196,290).

6 Operating Lease: Lease Payments:

a) The Company has entered into Lease transaction mainly for leasing of Office/Residential Premises including godown and company leased accommodation for its employees. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation.

b) The operating lease payments recognized in Profit & Loss A/c Rs.16,80,732/- (P.Y.Rs.1,605,955/-) for the lease which commenced on or after April 01, 2001.

c) General description of Lease terms:

i) Lease payments are made on the basis of agreed terms;

ii) The premises are taken on operating lease for a period of six years.

7 Previous year''s figures have been regrouped/reclassified, wherever considered necessary, to conform to current year''s classification.

---

Mar 31, 2012

1 Contingent Liabilities and commitments:

I. Contingent Liabilities:

a. Bank Guarantees / Letters of credit issued by the company in favour of

2011-2012 2010-2011

i) Foreign Letters of Credit against import of Raw oil. 140,661,805 28,552,000

ii) Bank Guarantee issued in favour of Joint commissioner, Sales Tax, Meerut. - 213000

iii) Bank Guarantee issued in favour of Punjab State Co-op. Supplies & Marketing Federation Ltd 1,500,000 -

iv) Bills discounted with Company's Bankers against their Bills Rediscounting Scheme and remaining outstanding as on 31st March 2012. However these bills are guaranteed by respective Commercial banks. 204,208,201 63375000

TOTAL 346,370,006 92,140,000

Bank Guarantees / Foreign Letters of Credit are secured by way of lien marked Fixed Deposits (inclusive of Interest) of Rs. 107,368,071/- (Previous year Rs. 23,241,249/-) (Refer note no. 17 & 19) b Corporate guarantee given to a bank, in lieu of such bank having extended various secured fund based & non-fund based credit facilities, amounting in aggregate to Rs. 702,700,000/- (Previous year Rs. 328,900,000/-) to a related party.

II. Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for in these accounts (Net of Advances) Rs. 99,82,202/- (Previous Year NIL).

2 In the opinion of the Board, the current assets, loans & advances are recoverable at par in the ordinary course of business at a price at which they are stated in the Balance Sheet. Balances of debtors and creditors, on the Balance Sheet date are subject to reconciliation and confirmation from some of the parties. However the variation is not expected to substantially vary the results of the company for the year.

3 Disclosure for Gratuity and Leave Benefit Plans:

The company has a defined benefit gratuity plan. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit Entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

4 Related Party Disclosures

The information given below is in respect of the transactions entered into by the company during the year with the related parties.

A) Names of Related Parties and description of Relationship:

i) Enterprises in which Key managerial Personnel and their Relatives have significant influence

Dhruv Globals Limited

G.D. Ferro Alloys Private Limited

D.G. Estates Private Limited

Blackstone Crushing Company Limited (Nigeria)

Indian Vanaspati Producer Association

Swift Relocations Pvt Ltd.

Phoenix Steel Mills Limited (Nigeria)

ii) Key Managerial Personnel:

Sushil Goyal, Managing Director

Abhey Goyal, Whole Time Director

5 Segment Reporting:

The Company has identified two reportable business segments viz. Vanaspati including refined oil segment and Rice. This business segregation forms the basis for review of operating performance by the management. In line with the practice and considering the nature of the materiality in operations, the dealing in shares/securities has not been reported as a separate segment. The accounting policies of the segments are the same, to the extent applicable, as those described in the summary of significant accounting policies as referred to in note no. 1 (xviii) to the financial statements along with the following additional policies:

i) Revenue & expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

ii) Segment assets and liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

6 The amount of Borrowing cost calculated as per the provisions of Accounting standard -16 and which has been capatalized under the head capital work in progress during the year is Rs. 1,196,290/-, (PY Nil).

7 Operating Lease:

Lease Payments:

a) The Company has entered into Lease transaction mainly for leasing of Office/Residential Premises including godown and company leased accommodation for its employees. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation.

8 These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956.

9 Previous year’s figures have been regrouped/reclassified, wherever considered necessary, to conform to current classification.

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Mar 31, 2010

1. Contingent Liabilities, not provided for:

a. Bank Guarantees / Letters of credit issued by the company in favour of (Rs. in Lacs)

S.No. Particulars 2009-2010 2008-2009

i) Foreign Letters of Credit against import of Raw oil. 749.42 1731.21

ii) Suit filed by one supplier to the tune of

Rs 1.14 Lacs, which is pending adjudication before Court of law. 1.14 1.14

TOTAL 750.56 1,732.35

Bank Guarantees / Foreign Letters of Credit are secured by way of lien marked Fixed Deposits (inclusive of Interest) of Rs. 170.79 Lacs (Previous year Rs. 265.87 Lacs).

b. Corporate guarantee given to a bank, in lieu of such bank having extended various secured fund based & non-fund based credit facilities, amounting in aggregate to Rs. 4154 Lacs (Previous year Rs. 4154 Lacs) to a related party.

c. Demand of Rs. 1.50 Lacs raised by Income tax department for A.Y. 2002-2003 which is disputed by the company and appeal has been preferred with Commissioner of Income Tax (Appeals). The Company has deposited a sum of Rs. 0.54 Lacs under protest, which has been classified as recoverable under the head loan and advances as per s.no. (viii) of part B of schedule ‘F to the Balance Sheet.

2 Estimated amount of contracts remaining to be executed on capital account and not provided for in these accounts (Net of Advances) Rs. NIL (Previous Year 38.95 Lacs)

3. In the opinion of the Board, the current assets, loans & advances are recoverable at par in the ordinary course of business at a price at which they are stated in the Balance Sheet. Balances of debtors and creditors, on the Balance Sheet date are subject to reconciliation and confirmation from some of the parties. However the variation is not expected to substantially vary the results of the company for the year.

4. Exchange rate adopted for conversion at the closing of financial year is taken at USD 1 = INR 45.00 (previous year Rs 50.95).

5. The value of Imports (Raw Oil) by the company on C.I.F. basis during the financial year is Rs. 4,011.21 Lacs; Previous Year Rs. 11,047.91 Lacs.

6. In these accounts, net gain of Rs. 161.76 Lacs (previous year, net Loss of Rs. 485.24 Lacs), on account of foreign exchange fluctuation arising during the year, has been recognized under the appropriate revenue items to which it relates.

7. Related Party Disclosures

The information given below is only in respect of the transactions entered into by the company during the year with the related parties.

A) Names of Related Parties and description of Relationship:

i) Enterprises in which Key managerial Personnel and their Relatives have significant influence

Pawansut Merchants Limited (Ceases w.e.f. 01/04/2009)

Dhruv Globals Limited

Phoenix Steel Mills Limited (Company incorporated in Nigeria)

Chander Prabhu Financial Services Limited

G.D. Ferro Alloys Private Limited

D.G. Estates Private Limited

ii) Key Managerial Personnel:

Sushil Goyal, Managing Director

Bishan Goyal, Whole Time Director (Resigned w.e.f. 25/08/2009)

Abhey Goyal, Whole Time Director

8. Segment Reporting:

The only operating segment identified by the company during the year under report is Vanaspati and refined oil segment. This business segregation forms the basis for review of operating performance by the management. In line with the practice and considering the nature of the materiality in operations, the dealing in shares/securities has not been reported as a separate segment. Accordingly the segmental information as required in accordance with the AS 17 as specified in the Companies (Accounting Standards) Rules, 2006 is not given as there is only one business segment of the company.

9. Operating Lease:

The Company has entered into Lease transaction mainly for leasing of Office/Residential Premises including godown and company leased accommodation for its employees. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation. The operating lease payment recognized in Profit & Loss A/c Rs. 4.77 Lacs (P.Y. Rs. 4.23 Lacs) for the lease which commenced on or after April 01, 2001.

10. The indications listed in paragraph 8 to 10 of Accounting Standard 28 on Impairment of Assets, as specified in the Companies (Accounting Standards) Rules, 2006, have been examined and on such examinations, an amount of Rs. 3.08 Lacs has been recognized in profit and loss account during the year.

11. Previous years figures have been regrouped/reclassified, wherever considered necessary, to conform to current years classification.

12. Information pursuant to Part - IV of the Schedule VI to the Companies Act, 1956 is given separately.

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Mar 31, 2009

1. Contingent Liabilities, not provided for:

a. Bank Guarantees / Letters of credit issued by the company in favour of

(Rs. In lacs)

2008-2009 2007-2008

i Foreign Letters of Credit against import of Raw oil. 1731.21 1720.49

ii Suit filed by one supplier to the tune of 1.14 Lacs during the year .Which is pending adjudication before Court 1.14 1.14

TOTAL 1732.35 1721.63

Bank Guarantees / Foreign Letters of Credit are seeded by way of lien marked Fixed Deposits (inclusive of Interest) of Rs. 265.87 Lacs (Previous year Rs. 299.29 Lacs.

b. Corporate guarantee given to a bank, in lieu of sue" Dank having extended various secured fund based & non-fund based credit facilities, amounting in aggregate to F.s. 4154 Lacs (Previous year Rs. 4165 Lacs) to a related party.

c. Demand of Rs. 3.64 Lacs has been raised by.lncc-ie tax authorities for A.Y. 2003-2004 which is disputed by the company under appeal and a sum of Rs. 1.00 Lacs ias been deposited under protest, which has been classified as recoverable under the head loan and advances in part B of schedule F to the Balance Sheet.

d. Demand Raised by Rajasthan State Industrial Development & Investment Corporation Limited (RIICO Ltd.) amounting to Rs. 21.11 Lacs on account of Service charges and Economic Rent out of which company has paid Rs. 2.53 Lacs and the balance amount of Rs 18.58 Lacs pendng for final settlement with Bhiwadi Jal Pardusan Niwaran & Anusandhan Samiti by the RIICO Ltd.

2 Estimated amount of contracts remaining to be executed on capital account and not provided for in these accounts (Net of Advances) Rs. 38.95 Lacs (Previous Year Nil)

3. In the opinion of the Board, the current assets, loans 4 advances are recoverable at par in the ordinary course of business at a price at which they are stated in the Balance Sheet. Balances of debtors, creditors, loans and advances on the Balance Sheet date are subject to reconciliation and confirmation from some of the parties. However the variation is not expected to substantially vary the results of the company for the year.

4. Company made an Investment of Rs. 13.57 Lacs in Profit Pius policy of Life insurance Corporation of India which has been issued in the name of Managing Director of the Company and assigned in favour of the company & therefore the same is shown as investment of the company.

5. Exchange rate adopted for conversion at the closing of financial year is taken at USD 1 = INR 50.95 (previous year Rs 39.97)

6. Disclosure for Gratuity and Leave Benefit Plans:

The company has a defined benefit gratuity p!a The present value of obligation is determined based on actuarial valuation using the proiected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit Entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

7. The value of Imports (Raw Oil) by the company on C.I.F. basis during (he financial year is Rs. 11047.91 Lacs; Previous Year Rs. 5157.58 Lacs.

8. In these accounts, net loss of Rs.485.24 Lacs (previous year, net profit of Rs. 76.40 Lacs), on account of foreign exchange fluctuation arising during the year, has been recognized under trie appropriate revenue items to which it relates.

9. Related Party Disclosures

The information given below is only in respect of the transactions entered into by the company during the year with the related parties.

A) Names of Related Parties and description of Relationship:

i) Associates:

Shree Siddivinayak Tor Pvt. Ltd. (Ceases w.e.f 09/09/2008) Shree Siddivinayak Forgings Pvt. Ltd (Ceases w.e.f 09/09/2008)

ii) Enterprises in which Key managerial Personnel and their Relatives have significant influence Pawansut Merchants Limited

Dhruv Globals Limited

Phoenix Steel Mills Ltd (Company ncorporated in Nigeria) Chander Prabhu financial Services Ltd G.D. Ferro Alloys (P) LTD

D.G. Estates Pvt. Ltd (w.e.f 03/07/2008)

Dhruv Global Infratech Pvt. Ltd. (Formerly Reliance Forms Pvt. Ltd.)

iii) Key Managerial Personnel:

Sushi/ Goyal. Managing Director

Bishan Goyal, Whole Time Director

Gagan Goyal, Whole Time Director (Resigned w.e.f 15/12/2008)

Abhey Goyal, Whole Time Director (Appointed w.e.f 15/12/2008)

10. Segment Reporting:

The only operating segment identified by the corroany during the year under report is Vanaspati and refined oil segment. This business segregation forms the basis for -eview of operatng performance by the ma-agement. In line with the practice and considering the nature of the maternity in operatio-s. the dealing in shares/securtes has not been reported as a separate segment. Accordingly the segmental information as required in accordance with the AS 17 as specified in the Companies (Accounting Standards) Rules, 2006 is not given as there is only one business segment of the company.

11. The indications listed in paragraph 8 to 10 of Accenting Standard 28 on Impairment of Assets, as specified in the Companies (Accounting Standards) Rules, 2006, ha.e been examir^ed and on such examinations, it has been found that none of the indicators are, prima face, present in the case of the company. A formal estimate of the recoverable amount has not been made, as there is no indication of a potential impaiment loss, as per the management.

12. Previous years figures have been regrouped/reclssified, wherever considered necessary, to conform to current years classification.

13. Information pursuant to Part - IV of the Schedule V its the Companes Act, 1956 is given separately.