Notes to Accounts of Karnimata Cold Storage Ltd.

Mar 31, 2024

2.9 Provisions, Contingent Liabilities and Contingent Assets

Based on the best estimate provisions are recognized when there is a present obligation (legal or
constructive) as a result of a past event and it is probable (“more likely than not”) that it is required to
settle the obligation, and a reliable estimate can be made of the amount of the obligation at reporting
date.

A contingent liability is a possible obligation that arises from a past event, with the resolution of the
contingency dependent on uncertain future events, or a present obligation where no outflow is
probable. Major contingent liabilities are disclosed in the financial statements unless the possibility of an
outflow of economic resources is remote.

Contingent assets are not recognized in the financial statements but disclosed, where an inflow of
economic benefit is probable.

Income and expenditure: Income and Expenditure are accounted for on accrual basis, wherever
ascertainable.

2.10 Employee benefits: Short-term employees'' benefits are recognized as an expense in the Statement of
Profit and Loss of the year in which the related service is rendered.

Regarding post employment benefits, the policy under LIC Group Gratuity scheme is in force. Provision
for gratuity is made in the accounts on the basis of valuation made by LIC and all the eligible employees
are covered by Provident Funds and Miscellaneous Provisions Act, 1952.

2.11 Foreign exchange transactions: Since the company did not have any foreign exchange transactions,
the provisions of AS -11 are not applicable to the company

2.12 Borrowing cost: Borrowings costs include interest, other costs incurred in connection with borrowing
to the extent that they are regarded as an adjustment to the interest cost.

2.13 Government grants: Government Grants related to fixed assets are adjusted with the value of fixed
assets/credited to capital reserve.

Govt. Grants related to revenue items are adjusted with the related expenditure/taken as income.

2.14 Provision for Income Tax & Deferred Tax Assets: 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 enacted in India and MAT credit entitlement if any, is adjusted against
current tax. 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.

2.15 Cash & Cash Equivalent: The company considers all highly liquid investments, which are readily
convertible into known amount of cash that are subject to an insignificant risk of change in value, to be
cash equivalents.

2.16 Statement of Compliance : These Financial Statements have been prepared in accordance with the Ind
AS as prescribed under sec. 133 of the companies Act, 2013 read with the Companies (Indian
Accounting Standards) Rules.

30.1 In the opinion of the Board of Directors, the current assets, loans & advances are
approximately of the value stated in accounts, if realized in ordinary course of business,
unless otherwise stated. The provision for all known liabilities is adequate and not in
excess/short of the amount considered reasonable/necessary.

30.2 Balances of some of the Trade receivables, Trade payables, Lenders, Loans and advances etc.
incorporated in the books are subject to confirmation from the respective party and
consequential adjustment arising from reconciliation, if any. The management however is of
the view that there will be no material discrepancies in this regard. Moreover the company is
in the process of receiving confirmation from the debtors and creditors. The confirmation so
far received has been reconciled. In view of all confirmations not having been received, the
balances are subject to reconciliation or adjustment, if any.

30.3 Employee Benefits (Ind AS 19)

a. Provision for Gratuity and Leave Encashment :

During the financial year ended 31st March, 2024, the Company has not made any provision
for gratuity or leave encashment in accordance with the requirements of Ind AS 19 -
Employee Benefits. The Company has also not obtained the actuarial valuation necessary to
determine the liability for these employee benefits as required under the standard.

b. Impact of Non-Compliance:

As a result, the liability for employee benefits has not been recognized in the financial
statements, and the impact of this non-recognition on the financial position and performance
of the Company has not been quantified. This non-compliance may result in a
understatement of liabilities and expenses in the financial statements.

c. M anagement’s Plan:

The management is in the process of engaging an actuary to perform the required valuation
and intends to comply with the requirements of Ind AS 19 in the subsequent financial year.

30.4 Provision for Doubtful Loans

a. Nature of Loans: "The Company has extended loans to farmers for coverage of more land
for potatoes farming by them as part of its operations related to cold storage services. These
loans were provided to support the farmers'' operational needs.

b. Provision for Doubtful Loans: As at 31st March, 2024, the Company has recognized a
provision for doubtful loans amounting to ^ 2553 thousands. This provision has been made in
accordance with Ind AS 109 - Financial Instruments, based on the assessment of expected
credit losses on these loans. The provision reflects management’s judgment regarding the
likelihood of default and the potential loss, taking into account historical recovery rates,
current economic conditions, and forward-looking information.

c. Basis for Determination: The provision has been calculated using the expected credit loss
model, which considers:

• Current economic conditions affecting the agricultural sector.

• Forward-looking estimates, including crop yield forecasts and market prices, which could
impact the farmers'' ability to repay the loans."

d. Impact on Financial Statements: The recognition of the provision for doubtful loans has
resulted in a charge to the profit and loss account of ^2553 thousands for the year ended
31st March, 2024. The carrying value of the loans after the provision is ^7658 thousands.

e. Significant Risks and Uncertainties: While the Company has made provisions based on
the best available information, there remain significant risks and uncertainties associated
with the recovery of these loans, particularly in light of the ongoing volatility in the
agricultural sector. The Company will continue to monitor these loans and adjust the
provision as necessary in future periods.

32 In the opinion of the board of directors, the current assets, loans and advances are
approximately of the realsiable value in the ordinary course of business unless otherwise
stated. The Provision for all known liabilites are adequate and are not in excess of the
amount reasonably necessary.

33 Based on the Information available with the company, there are no dues owed by the
company to Micro, Small & Medium Enterprise, which are outstanding for more than 45 days
during the year and as at 31st March 2024. As a result, no interest provision/ payments have
been made by the company to such creditors, and no disclosure thereof is required under
Micro, Small & Medium Enterprises Developement Act, 2006.

³⁴ Additional Regulatory Information

34.1 The Company does not Have any Benami Property, where any proceeding has been initiated
against the Group for holding any Benami Property.

34.2 The Company does not have any transactions during the year with companies struck off.

34.3 The Company does not have any charges or sarisfaction which is yet to be registered with
ROC beyond the Statutory Period.

34.4 The Company has not traded or invested in Crypto Currency or virtual Currency during the
financial year.

34.5 The Company does not have 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, 1961(such as, search or survey or any other relevent
provisions of The Income Tax Act, 1961.)

34.6 The Company have 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.

34.7 The Company have 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.

³⁵ Approval of Financial Statements

35.1 The Financial Statements were approved for issue by the Board of Directors on 30.05.2024.

35.2 Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond
with the current year''s disclosure.

As per our report of even date

F_or R.C.JHAWER & CO. For and on behalf of Board of Directors

(Chartere d Accountants)

Firm Registration No. : 310068E

Pradip Lodha Asha Ladia

R.C.JHAWER Managing Director Director

(Partner) DIN: 03006602 DIN: 03504170

Membership No: 017704

Place: Kolkata Aman Lodha Varsha Gupta

Dated: 30.05.2024 Chief Financial Officer Company Secretary

UDIN- 24017704BKEKRH6919

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Mar 31, 2015

1. Corporate Information:

Karnimata Cold Storage Limited was incorporated as a private limited company on 29th of April, 2011 later on converted into a public limited company w.e.f. 4th December, 2012 under the provisions of the Companies Act, 1956. The company is engaged in cold storage business. It initially set up during FY 2011-12, 18,000 M.T. Cold storage in Medinipur district (West Bengal) for preservation of potatoes and during the FY 2013-14 the capacity was increased by 7,500 M.T. The company came with Initial Public Offering (IPO) of Rs 303.6 Lakhs during the FY -13-14, and was listed on SME Platform BSE Limited on 18th March 2014.

2. Basis of preparation of financial statements:

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India & notified under the Companies (Accounting Standards) Rules 2006 as amended and the relevant provisions of the Companies Act, 2013. The financial statements are presented in Indian rupees.

3. Terms/Rights attached to Equity Shares

Equity Shares carry voting rights at the General Meeting of the Company and are entitled to dividend and to participate in surplus, if any, in the event of winding up.

* Secured by way of equitable mortgage of land,situated at Chekuasole, Goalture, Paschim Medinipur, 2 residential flats - one situated at paschim medinipur and one situated at kolkata, land & building at Salbony(paschim medinipur) fixed deposits of Rs. 65 lacs, SBI Life Insurance of Rs. 5 lacs and third party guarantee given by directors of the company.

Sactioned Rs. 6 crores on 18.11.2011 and now bears interest @ 12.80% p.a. repayable in 16 half yearly installments comprising of 1st 6 installments of Rs. 30 lacs each next 6 installments of Rs. 40 lacs each and last 4 installments of 'Rs.45 lacs each due on 30thJune and 31st December each year, starting from 30/06/2012.

Sactioned Rs.3 crores on 28.01.2014 and now bears interest @ 13.55% p.a. repayable in 16 half yearly installments comprising of 1st 4 installments of Rs. 10 lacs each next 8 installments of Rs.15 lacs each next 2 installments of Rs.30 lacs each and last 2 installments of Rs.40 lacs each due on 30th September and 31st March each year, starting from 30/09/2014.

* Bearing Intrerest @ 12.35% p.a. sanctioned on 30.01.2015, secured by way of assignment of receipts of potatoes stored.

** Secured against hypothecation of stocks, fuel, lubricants, book debts, rent receivables and other current assets of the company, bearing interest @ 13.50% p.a.

*** Without any Interest, Repayable on demand

4. Contingent liability 2,000,000 1,300,000

(For bank guarantee given in favor of WBSED CO.LTD.)

5. Deferred Tax Asset

On Carry forward of losses for the year under Income Tax Act in compliance with AS 22 and in consideration of prudence, no deferred tax asset has been created as there is no virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized. On the same grounds no deffered tax Assets has been created in respect of Preliminary expenses.

6. Government grants:

The Company has applied for state subsidy under The West Bengal State Support for Industries Scheme, 2008, but no capital subsidy received during the year.

Revenue subsidy, in the form of waiver of electricity duty Rs 122,847 received during the year and the same has been duly recognised in the statement of Profit and Loss vide Note No. 19

7. Related Party Disclosure

(Parties with whom transactions have taken place during t he year.)

Name of the related parties Short Name Relationship

(i) Pradeep Lodha PL Managing Director

(ii) Asha Ladia AL Director

(iii) Sushila Lodha SL Wife of PL

(iv) Supreme Lodha SPL CEO & Son of PL & SL

(v) Subrat Kumar Nayak SKN Company Secretary

(vi) Karunamoy Bandyopadhyay KB Manager

(vii) Nand Lal Lodha NLL Father of PL

(viii) Janu Infrastructure Private Limited JIPL Associates of the Company

(ix) Pratyush Mercantile Private Limited PMPL Associates of the Company

(x) SRG Trading Private Limited STPL Associates of the Company

8. In the opinion of the board of directors, the current assets, loans and advances are approximately of the realizable value in the ordinary course of business unless otherwise stated. The Provision for all known liabilities is adequate and is not in excess of the amount reasonably necessary.

9. Based on the Information available with the company, the balance due to micro, small and medium enterprises as defined under the "Micro, small & medium enterprises development Act, 2006" is NIL

10. Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's disclosure.

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Mar 31, 2014

1. Corporate Information:

Karnimata Cold Storage Limited was incorporated as a private limited company on 29th of April, 2011 later on converted into a public limited company w.e.f. 4th December, 2012 under the provisions of the Companies Act, 1956. The company is engaged in cold storage business. It initially set up during FY 2011-12, 18,000 M.T. Cold storage in Medinipur district (West Bengal) for preservation of potatoes and during the FY 2013-14 the capacity was increased by 7,500 M.T. The company came with Initial Public Offering (IPO) of Rs 303.6 Lakhs during the year and was listed on SME Platform BSE Limited on 18th March 2014.

2. Basis of preparation of financial statements:

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India & notified under the Companies (Accounting Standards) Rules 2006 as amended and the relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian rupees.

3. Terms/Rights attached to Equity Shares

Equity Shares carry voting rights at the General Meeting of the Company and are entitled to dividend and to participate in surplus, if any, in the event of winding up.

4. Secured by way of equitable mortgage of land,situated at Chekuasole, Goalture, Paschim Medinipur, 2 residential flats - one situated at paschim medinipur and one situated at kolkata, land & building at Salbony(paschim medinipur) fixed deposits of Rs. 65 lacs, SBI Life Insurance of Rs. 5 lacs and third party guarantee given by directors of the company.

Sactioned Rs. 6 crores on 18.11.2011 and now bears interest @ 12.95% p.a. repayable in 16 half yearly installments comprising of 1st 6 installments of Rs. 30 lacs each next 6 installments of Rs. 40 lacs each and last 4 installments of Rs.45 lacs each due on 30thJune and 31st December each year, starting from 30/06/2012.

Sactioned Rs.3 crores on 28.01.2014 and bears interest @ 13.70% p.a. repayable in 16 half yearly installments comprising of 1st 4 installments of Rs. 10 lacs each next 8 installments of Rs.15 lacs each next 2 installments of Rs.30 lacs each and last 2 installments of Rs.40 lacs each due on 30th September and 31st March each year, starting from 30/09/2014.

5. Extraordinary Items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the company and, therefore, are not expected to recur frequently or regularly. Rs. 4,38,753 treated as extraordinary item in the Statement of Profit & Loss pertains to loss due to robbery that took place in the previous year.

6. Contingent liability 1,300,000 1,300,000

(for bank guarantee given in favour of WBSED CO.LTD.)

7. Deferred Tax Asset

On Carry forward of losses for the year under Income Tax Act in compliance with AS 22 and in consideration of prudence, no deferred tax asset has been created as there is no virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized. On the same grounds no deferred tax Assets has been created in respect of Preliminary expenses.

Government grants: The Company has applied for state subsidy under The West Bengal State Support for Industries Scheme, 2008 but no subsidy received during the year.

8. In the opinion of the board of directors, the current assets, loans and advances are approximately of the realsiable value in the ordinary course of business unless otherwise stated. The Provision for all known liabilites are adequate and are not in excess of the amount reasonably necessary.

9. Based on the Information available with the company, the balance due to micro, small and medium enterprises as defined under the "Micro, small & medium enterprises development Act, 2006" is NIL

10. Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s disclosure.