Notes to Accounts of KMG Milk Food Ltd.

Mar 31, 2025

b. Rights, preferences and restrictions attached to equity shares

The company has a single 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. Accordingly, all equity shares rank equally with regard to dividends and share in the company’s residual assets. In the event of liquidation of the company, the holders of equity shares will be entitled to receive residual assets of the company, after distribution of all preferential amounts in proportion to the number of equity shares held.

Note-27: Lease

Operating lease: Company as lessee

The Company has not entered into any operating leases for office premises, rentals during for the year.

Operating lease: Company as lessor

At the inception of the lease the Company classifies each of its leases as either an operating leases or a finance lease. The Company recognises lease payments received under operating leases as income on a straight-line basis over lease term.

Lease income recognised in the statement of profit and loss duringthe period ended 31st March, 2025 is Rs.9600000 (March 31, 2024: Rs. 9300000 (Refer note no. 17)

Note-28: Corporate Social Responsibility

A company having: (i) a net worth of Rupees 500 crore or more; (ii) a turnover of Rupees 1000 crore or more; or (iii) a net profit of Rupees 5 crore or more, is required to comply with the CSR provisions specified under Section 135 of the Companies Act, 2013. As the company is not satisfying the requirements as prescribed under section 135, hence, the company is not liable to make any provision.

Note-30: Borrowings secured against current assets

The Company has borrowed a loan against Rent Receivables from HDFC Bank amounting Rs.6 Crore vide Sanction Letter dated 08/02/2024 against security of Rent Receivables during the year. The said charge has been Registered with Registrar of Companies vide Charge ID no. 100909601

Note-31: Loans or Advances disclosures

During the year company does not have granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

Note-32:Contigent Liabilities

a. No provision has been made in the account for doubtful debts and advances. These all are considered by the management as recoverable.

b. As per the VKS Scheme of the Government of Haryana through HLDB, Panchkula vide Notification No. 4250 (CFMS)-AH-4-2024/4746 dated 14.08.2024, the following liabilities were finalized:

Interest: ^1,27,89,609.00

Milk Cess: ^47,65,000.00

Total Payable: ^1,75,54,609.00

A provision amounting to ^1,37,91,250.00 had already been made in the books of accounts in respect of these dues.

In accordance with legal provisions, this provision was written off.

The remaining balance amount was settled by HDFC Bank, with:

50% paid on 10th September 2024 Remaining 50% paid on 11th November 2024

This adjustment resulted in a significant negative impact on the net profit of the entity for the financial year, primarily due to the difference between the provision made and the final liability paid.

(A) The pending court cases against and for the company is as under:

1. Company V/s Shree Ganesh Trading Co. Kurukshetra, Kurukshetra Court for Rs 128693 Interest Court cases for recovery u/s 138

1. Company vs. J Rai Milk Food Industry, Jalandhar in the Kurukshetra Court, Haryana for Rs. 2,04,00,000/-Cases under MSME

1) In the matter of Company vs. Rana Milk Food Pvt. Ltd., in the council Micro and Small Enterprises Facilitation Council (MSEFC) for recovery of due amount Rs. 21,10,000/

2) I n matter of Company vs. Creamy Dairy Industries Pvt. Ltd., in the council Micro and Small Enterprises Facilitation Council (MSEFC) for recovery of due amount Rs. 15,88,920/-.

Note-33 Other Statutory Compliance

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

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

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

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

(v) 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 I ike to or on behalf of the Ultimate Beneficiaries

(vi) 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 ofthe Ultimate Beneficiaries.

(vii) The Company have 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.

(viii) During the previous year ended 31st March, 2021 the Central Government has published The Code on Social Security, 2020 and Industrial Relations Code, 2020 ("the Codes") in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees related benefits including post employment. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes, if any, will be assessed and recognised post notification of the relevant provisions.

Note-34: There are no subsequent event observed after the reporting period which have the material impact on the company''s operations.

Note-35: Significant accounting policies and practices adopted by the Company are disclosed in the statement annexed to these financial statements as Annexure I.

Note-36: Previous year figures have been regrouped / reclassified, where necessary, to confirm to this year''s classification.

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Mar 31, 2024

Note-30: Borrowings secured against current assets

The Company has borrowed a loan against Rent Receivables from HDFC Bank amounting Rs.6 Crore vide Sanction Letter dated 08/02/2024 Out of which Rs. 30000000 has been disbursed upto 31.03.2024 against security of Rent Receivables during the year. The said charge has been Registered with Registrar of Companies vide Charge ID no. 100909601

Note-31: Loans or Advances disclosures

During the year company does not have granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

Note-32:Contigent Liabilities

a. No provision has been made in the account for doubtful debts and advances. These all are considered by the management as recoverable.

b. Company has received the notice from Semen Bank Officer/Haryana Live Stock Development Board (HLSD), Pehowa, Harayana dated 05.04.2018 regarding payment of cess of Rs. 71,3164397/- Including Interest of Rs 69,79,07,522/- for the period 09.09.2001 to 31.03.2018. Company has applied for OTS Scheme with Haryana Live Stock Development Board during the month of Nov. 2019 but as per the information received by the company HLSD Board has rejected the appliaction. However company has also filed the another application for waving off interest which is still is in consideration by the board.

(A) The pending court cases against and for the company is as under:

1. In the matter of Semen Bank Officer/Haryana Live Stock Development Board, Pehowa, Harayana(Milk Cess) vs. Company of Rs. 71,3164397/- Including Interest of Rs 69,79,07,522/-

2. In the matter of Company vs Hitkari Industries Ltd in the Karkadoma Court for Rs.185000 123671/-Delhi.

3. Company V/s Shree Ganesh Trading Co. Kurukshetra, Kurukshetra Court for Rs 128693 lnterest Court cases for recovery u/s 138

1. In the matter of Company vs. Baldev Bhui in the Karkadoma Court for Rs.1,30,000/- Delhi.

2. In the matter of Company vs. Prem Prakash in the Karkadoma Court for Rs.90,000 67,000/- Delhi.

3. Company vs. J Rai Milk Food Industry, Jalandhar in the Kurukshetra Court, Haryana for Rs. 2,04,00,000/-

Cases under MSME

1) In the matter of Company vs. Rana Milk Food Pvt. Ltd., in the council Micro and Small Enterprises Facilitation Council (MSEFC) for recovery of due amount Rs. 21,10,000/

2) 1 n matter of Company vs. Creamy Dairy Industries Pvt. Ltd., in the council Micro and Small Enterprises Facilitation Council (MSEFC) for recovery of due amount Rs. 15,88,920/-.

Note-33 Other Statutory Compliance

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

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

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

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

(v) 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 thelike to or on behalf of the Ultimate Beneficiaries

(vi) 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 ofthe Ultimate Beneficiaries.

(vii) The Company have 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.

(viii) During the previous year ended 31st March, 2021 the Central Government has published The Code on Social Security, 2020 and Industrial Relations Code, 2020 ("the Codes") in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees related benefits including post employment. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes, if any, will be assessed and recognised post notification ofthe relevant provisions.

Note-34: There are no subsequent event observed after the reporting period which have the material impact on the company''s operations.

Note-35: Significant accounting policies and practices adopted by the Company are disclosed in the statement annexed to these financial statements as Annexure I.

Note-36: Previous year figures have been regrouped / reclassified, where necessary, to confirm to this year''s classification.

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Mar 31, 2015

1 RELATED PARTY DISCLOURES: -

Particulars of transactions with related party The following is a summary of significant related party transaction List of the Parties with whom transaction have taken place and relationship:

A Company under same management

1 KMG Non-Ferrous Metal P Ltd( Nature- Unsecured Loan) - -

2 Lease

Permission given on operative lease Building and Plant & Machinery

The total future minimum lease rental receivable at the balance sheet date is as under:-

3 Contigent liabilities 1

No provision has been made in the account for doubtful debts and advances. These all are considered by the management as recoverable.

The pending court cases against and for the company is as under:

A 2

In the matter of M/s Goel Agencies Pvt. Ltd/M/s Fair Deal Agencies, Ludhiana vs. Company/ Shri Basudev Garg/Smt. Mithlesh Garg for Rs.6, 00,528.15 – Ludhiana

3 In the matter of Semen Bank Officer/Haryana Live Stock Development Board, Pehowa, Harayana(Milk Cess) vs. Company of Rs 35,01,14,839/ –as interest 1,57,59,375/- as principal.

4 In the matter of Company vs Hitkari Industries Ltd in the Karkadoma Court for Rs.185000 123671/- Delhi. Company V/s Shree Ganesh Trading Co. Kurukshetra, Kurukshetra Court for Rs 128693 Interest

5

B Court Cases for Recovery U/S 138

6 In the matter of Company vs. Baldev Bhui in the Karkadoma Court for Rs.1, 30,000/- Delhi.

7 In the matter of Company vs. Prem Prakash in the Karkadoma Court for Rs.90,000 67,000/- Delhi.

4 Previous year figures are regroupped/rearrange wherever necessary to conform to this year's classification.

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Mar 31, 2014

NOTE-1:SHARE CAPITAL

(b) Rights / preferences / restrictions attached to equity shares

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

Note-2 : Other Long Term Liabilies

(a) No interest is paid / payable during the year to any enterprise registered under the MSME.

(b) The above information has been determined to the extent such parties could be identified on the basis of the information available with the company regarding the status of suppliers under MSME.

3 RELATED PARTY DISCLOURES: -

Particulars of transactions with related party

The following is a summary of significant related party transaction

List of the Parties with whom transaction have taken place and relationship:

4 Lease

Permission given on operative lease Building and Plant & Machinery

5 Contigent liabilities

1 No provision has been made in the account for doubtful debts and advances. These all are considered by the management as recoverable.

A The pending court cases against and for the company is as under:

2 In the matter of M/ s Goel Agencies Pvt. Ltd/M/ s Fair Deal Agencies, Ludhiana vs. Company/ Shri Basudev Garg/Smt. Mithlesh Garg for Rs.6, 00,528.15 - Ludhiana

3 In the matter of Semen Bank Officer/Haryana Live Stock Development Board, Pehowa, Harayana(Milk Cess) vs. Company of Rs 26,04,15,499/ -as interest 1,57,59,375/- as principal.

4 In the matter of Company vs Hitkari Industries Ltd in the Karkadoma Court for Rs.123671/- Delhi.

5 Company V/s Shree Ganesh Trading Co. Kurukshetra, Kurukshetra Court for Rs 128693 Interest B Court Cases for Recovery

6 In the matter of Company vs. Baldev Bhui in the Karkadoma Court for Rs.1, 30,000/- Delhi.

7 In the matter of Company vs. Prem Prakash in the Karkadoma Court for Rs.90,000 67,000/- Delhi.

8 Company v/s Paradise Plastopack pvt ltd, Delhi, Pradeshik Cooperative diary Federation ltd, Lucknow,Gangol Sehkari Dugdh Utpadak Sangh ltd ( Meerut),and Herman Milk Food ltd,Pataila, in the Kurukhetra Court for Rs 275524 Interest

6 Previous year figures are regroupped/rearrange wherever necessary to conform to this year''s classification.

7 Significant accounting policies and practices adopted by the Company are disclosed in the statement annexed to these financial statements as Annexure I.

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Mar 31, 2013

1 CONTIGENT LIABILITIES

1 No provision has been made in the account for doubtful debts and advances. These all are considered by the management as recoverable.

A The pending court cases against and for the company is as under:

2 In the matter of M/s Goel Agencies Pvt. Ltd/M/s Fair Deal Agencies, Ludhiana vs. Company/ Shri Basudev Garg/Smt. Mithlesh Garg for Rs.6, 00,528.15 – Ludhiana

3 In the matter of Semen Bank Officer/Haryana Live Stock Development Board, Pehowa, Harayana(Milk Cess) vs. Company of Rs 20,21,22,314/ –as interest.

4 In the matter of Company vs Hitkari Industries Ltd in the Karkadoma Court for Rs.123671/- Delhi.

B Court Cases for Recovery

5 In the matter of Company vs. Baldev Bhui in the Karkadoma Court for Rs.1, 30,000/- Delhi.

6 In the matter of Company vs. Prem Prakash in the Karkadoma Court for Rs.90,000 67,000/- Delhi.

2 Previous year figures are regroupped/rearrange wherever necessary to conform to this year''s classification.

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Mar 31, 2012

(a) Rights/ preferences/ restrictions attached to equity shares

The company has only one class of equity shars having a par value of Rs. 10 per share Each holder of equity shares is entiltled to one vote per share.

Note : Debit balance of statement of profit and loss shall be shown as a negative figure under the head 'Surplus' Similarly, the balance of 'Reserves and Surplus', after adjusting negative balance of surplus, if any, shall be shown under the head 'Reserves and Surplus' even if the resulting figure is in the negative.

I DISCONTINUING OPERATIONS: -

The company has not discontinued operations during the Financial Year under review.

ii RELATED PARTY DISCLOURES: -

Particulars of transactions with related party

The following is a summary of significant related party transaction: -

iii CONTINGENT LIABILITIES

1. No provision has been made in the account for doubtful debts and advances. These all are considered by the management as recoverable.

2. The pending court cases against and for the company is as under:

A In the matter of M/s Goel Agencies Pvt. Ltd/M/s Fair Deal Agencies, Ludhiana vs. Company/ Shri Basudev Garg/ Smt. Mithlesh Garg for Rs.6, 00,528.15 - Ludhiana.

B In the matter of Semen Bank Officer/Haryana Live Stock Development Board, Pehowa, Harayana(Milk Cess) vs. Company for Rs.17,90,02,069/-(Including Interest of Rs 15,51,38,319/ - Chandigarh.

C In the matter of Company vs Hitkari Industries Ltd in the Karkadoma Court for Rs.1, 85, 000 123671/- Delhi.

D In the matter of Company vs. Paradise Plastopack Pvt ltd in the court of Kurukshetra, Haryana and Rohini, Delhi for Rs 2,75,524/-plus Interest.

Court Cases for Recovery

A In the matter of Company vs. Baldev Bhui in the Karkadoma Court for Rs.1, 30,000/- Delhi.

B In the matter of Company vs. Prem Prakash in the Karkadoma Court for Rs.90,000 67,000/- Delhi.

C In the matter of Company vs. Jindal Trading Co. in the Karkadoma Court for Rs.84000/- Delhi.

iV The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre- revised Schedule VI to the Companies Act,1956. Consequent to the notification under the Companies Act,1956, the financial statements for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.

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Mar 31, 2011

1. The previous year's figures have been regrouped, rearranged wherever necessary.

2. Information required under schedule VI to the Companies Act, 1956 has been given only to the extent applicable.

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Mar 31, 2010

1. RELATED PARTY DISCLOSURES: -

Particulars of transactions with related party The following is a summary of significant related party transaction: -

i) List of the Parties with whom transaction have taken place and relationship:

SI. No. Name of the Related Parties Relationship

Smt Mithlesh Garg Relative of the Director of the company

2. PARTICULARS OF MANAGERIAL REMUNERATION

No remuneration paid to managerial personnel during the financial year and Previous Year.

3. CONTINGENT LIABILITIES

A

1. No provision has been made in the account for doubtful debts and advances. These all are considered by the management as recoverable.

2. The pending court cases against and for the company is as under:

I. In the matter of State of Haryana/Company vs. Pawan Goel of siphoning of Rs.60/- Crores - Kururkshetra.

II. In the matter of State of Haryana/Company vs. Mohan Industries for Rs. 1, 50,000/- Kurukshetra,

III. In the matter of State of Haryana/Company vs. OM Bandar for Rs. 15, 00000/- Kurukshetra,

IV. In the matter of State of Haryana/Company vs. Sterling Agro Industries Ltd. for Rs. 12,00000/- Kurukshetra.

V. In the matter of M/s Haryana Agro Industries Corporation vs. Shri Basudev Grag/ Shri R.L.Gupta/Company for Rs. 12409123/- for buy of equity- Chandigarh.

VI. In the matter of M/s Goel Agencies Pvt. Ltd/M/s Fair Deal Agencies, Ludhiana vs. Company/ Shri Basudev Garg/Smt. Mithlesh Garg for Rs.6,00,528.15 -Ludhiana.

VII. In the matter of Semen Bank Officer/Haryana Live Stock Development Board, Pehowa, Harayana(Milk Cess) vs. Company for Rs.l0,97,59,975.25/ (Including Interest of Rs 8,80,23,100/- Chandigarh.

VIII. Company vs. Baldev Bhui in the Karkadoma Court for Rs.l, 30,000/- Delhi.

IX. Company vs. Prem Prakash in the Karkadoma Court for Rs.90, 000 67,000/- Delhi.

X. Company vs. Jindal Trading Co. in the Karkadoma Court for Rs.8400/- Delhi.

XI. Company vs Hitkari Industries Ltd in the Karkadoma Court for Rs.l, 85,000 123671/- Delhi.

XII. In the matter of M/s Parle Product Pvt. Ltd vs. Company in the District Bhuj Court for Rs.10,00,000/- Gujrat.

XIII. Company vs. Indian Feeds & Fodder in the Kamal Court for Rs 65000/- plus Interest, Kamal

XIV. Company vs. Paradise Plastopack Pvt ltd in the court of Kurukshetra, Haryana and Rohini, Delhi for Rs.2,75,524/-

3, The following Contingent Liabilities has been arisen in current year on account of Sale Tax. (a) In the matter of DETC, Kaithal vs Company for Rs.2,52,720/- Chandigarh Tribunal.

NOTES TO THE ACCOUNTS

1. The previous year's figures have been regrouped, rearranged wherever necessary.

2. Information required under schedule VI to the Companies Act, 3956 has been given only to the extent applicable.