Notes to Accounts of Milkfood Ltd.

Mar 31, 2025

(K) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured
at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, 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.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no
longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

(L) Taxation

(i) Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted, at the reporting date. Current income tax relating to gain on equity
instruments (not held for trading) are recognised either in other comprehensive income or in equity.
Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and adjust provisions accordingly where ever
appropriate.

(ii) Deferred tax

Deferred tax is recognised on temporary differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except when it is probable
that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable
that taxable profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and
are recognised to the extent that it has become probable that future taxable profits will allow the deferred
tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either
in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
and the same taxation authority.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits
in the form of adjustment to future income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in
the Balance Sheet when it is probable that future economic benefit associated with it will flow to the
Company.

(M) Employee Benefits

(i) Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as
short term employee benefits. Benefits such as salaries and performance incentives, are charged to
standalone statement of profit and loss on an undiscounted, accrual basis during the period of service
rendered by the employees in the financial year.

(ii) Defined Contribution Plans:

Contributions to defined contribution schemes such as employees’ state insurance, labour welfare fund,
superannuation scheme, employee pension scheme etc. are charged as an expense based on the amount
of contribution required to be made as and when services are rendered by the employees. The above
benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations
beyond the monthly contributions.

(iii) Defined benefit plans

Company has an obligation towards gratuity a defined benefit retirement plan covering all employees.
The plan provides for a lumpsum payment to employees at retirement/determination of service on the
basis of 15 days terminal salary for each completed year of service subject to maximum amount of Rs.
20 Lacs.

Company’s liability towards gratuity and compensated absences is determined using the projected unit
credit method, with actuarial valuations being carried out at the end of each annual reporting period by
independent actuary. Remeasurement, comprising actuarial gains and losses, the effect of the changes,
is reflected immediately in the balance sheet with a charge or credit recognized in other comprehensive
income (OCI) in the period in which they occur. Remeasurement recognized in the other comprehensive
income is reflected immediately in retained earnings and is not reclassified to profit or loss.

(N) Revenue Recognition
Sale of Products/Services

Revenue from sale of goods is recognised when control of the products being sold is transferred to customer
and when there are no longer any unfulfilled obligations. The Performance Obligations in contracts are fulfilled
at the time of dispatch, delivery or upon formal customer acceptance depending on terms with customers.

Revenue is measured on the basis of contracted price, after deduction of any trade discounts, volume rebates
and any taxes or duties collected on behalf of the Government such as Goods and Services Tax, etc. Revenue
is only recognised to the extent that it is highly probable a significant reversal will not occur.

Specific recognition criteria described below must also be met before revenue is recognized.

(a) Conversion charges are recognized on completion of jobs.

(b) Interest Income is recorded on time proportion basis using the effective rate of Interest (EIR).

(c) Carbon Credits are recognized on realization basis.

O) Earning per shares

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares.

Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the Company by
the weighted average number of equity shares outstanding during the period.

Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders and the weighted
average number of equity shares outstanding that could have been issued upon conversion of all dilutive
potential equity shares Dilutive potential equity shares are deemed converted as of the beginning of the
period, unless issued at a later date. Dilutive potential equity shares are determined independently for each
period presented.

P) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The Company’s Managing Director assesses the financial performance and position
of the Company, and makes strategic decision and has been identified as the chief operating decision maker.
The Company’s primary business segment is reflected based on principal business activities carried on by the
Company. The company is operating under a single segment i.e., “Dairy Products - comprising Ghee, Milk
Powder, Whey powder and Dairy whitener” and therefore there are no reportable segments as per IND AS-
108 “Operating Segments” issued under section 133 of Companies Act 2013 read with Companies (Indian
Accounting Standards) Rules 2015.

Q) Contingent liabilities

A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the Company; or a present obligation that arises from past events but is not recognized because it is not
probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
the amount of the obligation cannot be measured with sufficient reliability. Therefore, in order to determine the
amount to be recognised as a liability or to be disclosed as a contingent liability, in each case, is inherently
subjective, and needs careful evaluation and judgement to be applied by the management.

In case of provision for litigations, the judgements involved are with respect to the potential exposure of each
litigation and the likelihood and/or timing of cash outflows from the company, and requires interpretation of
laws and past legal rulings. The Company does not recognize a contingent liability but discloses its existence
in the standalone Ind AS financial statements.

R) Use of Key Accounting estimates and judgments

The preparation of financial statements requires management to make estimates, judgements and assumptions
in the application of accounting policy that affect the reported amount of assets and liabilities on the date of
financial statements and the reported amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period in which it is known/materialised.
Continuous evaluation is done on the estimation and judgements based on historical experience and other
factors, including expectations of future events that are believed to be reasonable. Revisions to accounting
estimates are recognised prospectively

In particular, information about significant areas of estimation, uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amounts recognized in the financial statements
are included in the following notes:

(i) Property, Plant and Equipment - Note 3A

(ii) Indefinite useful life of Intangible Assets - Note 3C

(iii) Recognition of deferred tax assets/liabilities - Note 31D

(iv) Measurement of defined benefit obligation - Note 35

(v) Measurement and likelihood of occurrence of provisions and contingencies - Note 34

(vi) Measurement of Right of Use Asset and Lease liabilities - Note 3D, 16A and 16B.

Footnotes:

i) In view of insignificant amount of bad debts and timely recovery in earlier years, allowance for expected credit loss is made
on the simplified approach of provisions based in earlier years.

ii) Includes receivables of Rs 47 Lakhs (net of write off/ provisions of Rs 22 Lakhs) from an entity facing an insolvency petition
before the NCLT against a claim of Rs 78 Lakhs including interest of Rs 9 lakhs filed before the Resolution Professional.
The Company is of the view that it has good chance to recover the amount of claim. As a matter of abundant caution,the
amount of Rs 22 Lakhs as stated above has been written off/ provided in the books. Against Rs 53 Lakhs outstanding
(unconfirmed) for more than one year no provision is made as company hopes to recover the same in the near future.

iii) No trade receivables are due from directors or other officers of the company or any of them either severally or jointly with
any other person, or from firms or private companies in which any director is a partner, a director or a member. Refer note
36 (b) for information about credit risk .

Footnotes:

(i) Securities Premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium. Where the Company
issues shares at premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received
on those shares is transferred to “Securities Premium account”. The company may issue fully paid-up bonus shares to its
members out of balance lying in the securities premium account and the company can also use the premium for buy-back
of shares. During the year, Company has utilised the amount of Rs 609 lakhs by issue of bonus shares in the ratio of 1:1
to the existing shareholders.

(ii) Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or
other distributions paid to shareholders. It also Includes revaluation reserve of Rs. 5,081 lakhs (PY Rs. 5,122 lakhs) [Net
of increase in value of Land & Building of Rs 8,530 Lakhs and decrease in the value of Plant & Machinery of Rs 3,080
Lakhs as at 01.04.2016 after adjusting accumulated depreciation of Rs. 369 Lakhs (PY Rs. 328 lakhs) on revalued figure.

(iii) Share Option Outstanding Account

The fair value of the equity-settled share based payment transactions is recognised in standalone statement of profit and
loss with corresponding credit to Employee Stock Options Outstanding Account.

As per the NRC resolution dated 28.05.2025 ESOP Scheme 2024 has been cancelled/withdrawn on the request of the
employees. Bombay Stock Exchange has been informed of the same.

(iv) Capital Reserve has been created in pursuance of scheme of amalgamation between Triputi Infrastructure Pvt Ltd (Transferor
Company) with Milkfood Ltd (Transferee Company) duly approved by NCLT Chandigarh Bench.

(v) The disaggregation of changes in each type of reserve, retained earnings and other comprehensive income are disclosed
in Statement of Changes in Equity.

(ii) Figures in bracket relates to the previous year. Interest rate above represent prevailing rates.

(iii) a) SBI Term Loan of Rs 1000 Lakhs was primarily secured on 1st pari pasu basis of entire current assets including stocks

of raw materials, stores, spares, Stock in Progress, Finished Goods, including goods in transit, book debts (etc.) and
collaterally secured by 1st pari passu charge through equitable mortgage of factory land and building located at
Bahadurgarh Patiala, hypothecation of Movable fixed assets of the company excluding vehicles and assets financed
by other lenders and charge over company’s Brand. Further the loan is guaranteed by the two promoters.

b) GECL-2.0 and as extended (WCTL) of SBI are secured by way of extension of 2nd charge over the existing primary
and collateral securities including mortgages created in favour of the consortium banks on pari passu basis. Refer
Note 19(i)

c) GECL 2.0 and as extended (WCTL) of Canara Bank are secured by 1st Pari passu Charge on entire Current Assets
of the Company including Receivables and collaterally secured by pari pasu charge on equitable mortgage of Factory
land and building located at Bahadurgarh, Patiala. Refer Note 19(i).

d) Canara Bank Term Loan of Rs 1000 Lakhs was primarily secured by 1 st pari passu charge on entire current assets of
the Company including receivables and collaterally secured through pari pasu charge on equitable mortgage of factory
land and building located at Bahadurgarh Patiala - Punjab and hypothecation of Plant and Machinery.

(iv) Date of agreement: 08.08.2022, tenure 10 years, rate of interest 10.25% p.a

(v) The company has utilised the borrowings from banks and financial institutions for the specific purposes for which it was
taken.

(vi) There has been no default in respect of repayment of borrowings and interest. Company has not been declared as wilful
defaulter by any bank or financial institution or any other lender.

(vii) Represents the Loan from directors of the erstwhile company merged in accordance with the scheme of amalgamation
between Trupati Infrastructure Pvt Ltd (Transferor Company) with Milkfood Ltd (Transferee Company) duly approved by
NCLT Chandigarh Bench.

(i) No amounts have been written off / provided for or written back during the year in respect of amounts receivable from or
payable to related parties. There have been no guarantee provided or received to/ from related party in respect of any debt/
obligation of the related party or of Company except personal guarantee given by promoters in respect of secured loans
from banks.

(ii) Related parties have been identified by the management.

(iii) Rent (lease liability including interest) is certified by the the management as per prevalent market rates and for business
purposes of the group.

(iv) As the defined benefit plans and compensated absences are provided on actuarial basis for the group as a whole, the
amount pertaining to Key Managerial Personnel are not included above.

(v) Related parties transactions are done in the ordinary course of business and are at arms length. Outstanding balances at
the year end are unsecured .Refer note 16(iv) for Terms and conditions of loans taken from related party.

(vi) Figures in bracket relates to the previous year.

(i) *The company is contesting these demands and the management, based on advise of its advisors, believes that its
position will likely be upheld in the appellate process. No expense has accrued in the standalone financial statements for
these demands raised. The management believes that the ultimate outcome of these proceedings will not have a material
adverse effect on the company’s financial position and results of operations. The company does not expect any
reimbursements in respect of the above contingent liabilities.

(ii) In addition, the company is subject to legal proceedings claims, which have arisen in the ordinary course of business. The
company’s management reasonably does not expect that outcome of these legal proceeding etc, when ultimately concluded
and determined, will have adverse material effect on the company’s results of operations or financial condition.

NntP Fmnlru/oo honofitc

The company’s principal financial liabilities comprise borrowings, Security Deposits Received, trade and other payables etc.
The main purpose of these financial liabilities is to finance the company’s operations. The company’s principal financial assets
include , trade and other receivables, cash and cash equivalents and security deposits that are out of regular business operations.

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. In order to manage the
aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and
responding to each risk factors. The company’s senior management oversees the management of these risks.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes
in market prices. Market risk comprises three types of risk i.e. interest rate risk, currency risk and other price risk, such as
commodity risk. The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate
because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rate
relates primarily to the company’s borrowings with floating interest rates.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings
affected. With all other variables held constant, the company’s profit before tax is affected through the impact on
floating rate borrowings, as follows:

The impact of increase of 1% in rate of interest shall be mitigated by the increase in the volume based turnover.Further
there is a huge related party borrowings on long term basis, there would be no difficulty in negotiating the lower rate if
the situation so demands.

ii. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. There does not seem to be any significant risk as transaction in foreign currency
are not there.

As there is no significant foreign currency risk, sensitivity analysis showing impact on profit is not calculated.

iii. Commodity price risk

The Prices of the raw material mainly loose ghee keep fluctuating frequently due to volatility in the prices of Raw Milk.
and the company tries to pass the same to the customers through appropriate adjustment to selling prices. The major
players both on supply chain of loose ghee and market chain of FG are in unorganised sector and at times the
company has to pay more for supply and receive less for sales. Company is trying to work on seamless chain of supply
and sales at most reasonable prices.

(b) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations.
The company’s exposure to credit risk arises majorly from trade and other receivables. Other financial assets like security
deposits and bank deposits are mostly with government authorities and nationalised banks and hence, the company does
not expect any credit risk with respect to these financial assets. In majority of cases of Trade receivables are collected in
time. The trade receivables are subject to monthly review. Expected Credit Loss is too low considering the past record and
management does not foresee any significant change in near future. In view of insignificant credit risk sensitivity analysis
showing impact on profit is not calculated

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the
return to shareholders through the optimisation of the debt and equity. For the purpose of the company’s capital management,
capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders.

The company monitors capital using a gearing ratio, which is net debt divided by total capital. The company includes within net
debt, all non-current and current borrowings reduced by cash and cash equivalents and other bank balances. The Company
manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of
the financials covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payments to
shareholders, return capital to shareholders or issue new shares. The capital structure is monitored on the basis of net debt to
equity and maturity profile of the overall debt portfolio of the Company.

In order to achieve this overall objective, the company’s capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. The breaches
in meeting the financial covenants would permit the bank to immediately call borrowings. There have been no breaches in the
financial covenants of any interest-bearing borrowings in the current year.

No significant changes were made in the objectives, policies or processes for managing capital during the years ended March
31,2025 and March 31,2024.

Note 38. Fair value measurement

(i) All the financial assets and financial liabilities of the company are carried at amortised cost.

(ii) The management assessed that the carrying values of trade and other receivables, deposit, cash and short term deposits,
other assets, borrowings, trade and other payables reasonably approximate their fair values because these instruments
have short-term maturities.

(iii) It is view of the management that fair value impact of long term security deposits/loan paid or payable would not be
material.

Note 39: Interim Dividend on Equity Shares

The Board of Directors in the meeting held on 25.06.2024 declared an interim dividend of 2.50/- per equity share valuing at Rs
153 Lakhs and accordingly Rs 132 Lakhs (net of TDS of Rs 14 Lakhs) has been paid as tabulated below:

Note 40: Corporate social responsibility (CSR)

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 defined in schedule VII of the Companies Act which inter- alia includes contribution to the Prime
Minister National Relief Fund, PM Cares Fund or any other fund set up by the Central Government for socio economic development
and relief and welfare of the scheduled castes, the scheduled tribes, other backward classes, minorities and women. A CSR
committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these
activities which are specified in Schedule VII of the Companies Act, 2013.

Note 43: Relevant Additional Regulatory Information: (Other than disclosed in the respective notes)

(i) The operating cycle of the company is assumed to be of twelve months in absence of clearly identifiable normal operating
cycle and accordingly assets/ liabilities have been classified as current/ non current.

(ii) No proceedings have been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(iii) The Company has not done any transaction with struck off companies during the year.

(iv) There is no charge or satisfaction of any charge which is not registered with ROC beyond the statutory period.

(v) The company has not granted any loans or advances in the nature of loans to promoters, directors, KMP and the related
parties either severally or jointly with any other person which is either repayable on demand or without specifying any
terms or period of demand and therefore requirement of disclosure of such loan/ advance is not applicable.

(vi) The company has complied with the number of layers prescribed under clause (87) of section 2 of the act read with
companies (restriction on number of layers) rules 2017.

(vii) Company has not applied any accounting policy retrospectively or has made a restatement of items in FS or has reclassified
items in the FS.

(viii) 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

(ix) 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.

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

(xi) The Company have not made 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)

Note 44: Previous year figures have been reclassified / regrouped wherever necessary to confirm with
those of current year figures.

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Mar 31, 2024

(i) In compliance with the scheme of Amalgamation between Triputi Infrastructure Pvt Ltd (Transferor Company) with Milkfood Ltd (Transferee Company) duly approved by NCLT vide its order dated 16th April 2024 u/s 230 to 232 and other applicable provisions of the Companies Act, 2013 with effect from appointed date i.e. 01.04.2023, the company is required to allot 9,66,960 equity shares in lieu of acquisition of the assets (including brand) and liabilities of the transferor company at a fair value in accordance with Ind AS 103- Business Combinations (acquisition method). The accounting entries have been made w.e.f 01.04.2023 and therefore previous year figures to the extent are not comparable.

(i) For details of Property, plant and equipment charged as security of borrowings. Refer Note 16(iii) & Note 19(i).

(ii) Title deeds of all immovable properties are held by bank in the name of Company.

(iii) Estimated amount of capital contracts remaining to be executed is not acertained as the relevant project report is under compilation. ( PY Rs. Nil )

(iv) * includes office equipment.

(i) Trees and plants are considered biological Assets as per Ind AS 41. During the year company has sold timber for a total consideration of Rs. 30 lakhs ( PY: Rs. Nil ) and has capitalised Rs. 8 lakhs (P.Y Rs. 5 lakhs) towards lease rentals of land. Company has obtained the certificate of Agricultural Scientist with regard to fair valuation at the reporting date and has accounted the gain of Rs. 84 lakhs on reinstatement.

i) In view of insignificant amount of bad debts and timely recovery in earlier years, allowance for expected credit loss is made on the simplified approach of provisions based in earlier years.

ii) Represents receivables (net of write off/ provisions of Rs 22 Lakhs) from an entity facing an insolvency petition before the NCLT, a claim of Rs. 78 Lakhs including interest of Rs 9 lakhs has been filed before the Resolution Professional. The Company is of the view that it has good chance to recover the amount of claim. As a matter of abundant caution,the amount of Rs 22 Lakhs as stated above has been written off/ provided in the books.

iii) No trade receivables are due from directors or other officers of the company or any of them either severally or jointly with any other person, or from firms or private companies in which any director is a partner, a director or a member. Refer note 37 (b) for information about credit risk .

(i) Deposits with Sales Tax Authorities amounting to Rs. 72 Lakhs represent the amount deposited as a pre-condition for preferring appeal. Appellate Authority-1 Jaipur, CTO vide order Dated 22.12.2021 has determined tax liability of Rs 72 Lakhs against which the appeals for the years 2002-03 and 2003-04 are pending before the Rajasthan Tax Board, Ajmer. The next date fixed for hearing is 29.08.2024. Company is of the view that the Appeal would be decided in its favour and hence no provision has been made. (Refer Note 35a)

(ii) During the year, MAT credit has been recognized for Rs 285 Lakhs including Rs 100 Lakhs for earlier years.

(iii) Represents the amount recoverable from earlier years.The management is of the view that thesame will be received/ adjusted in the subsequent financial year. However, as a matter of abundant caution,a provision of Rs 8 lakhs has been done in the books.

(i) Includes non moving / slow moving stocks of packing material of Rs 29 lakhs (P.Y. Rs.33 lakhs) Management is of the view that the same will be utilised in the financial year 2024-25. Adjustment if any shall be made in the subsequent year.

(ii) For details of inventories provided as security for borrowings. Refer Note 19(i)

(iii) The mode of valuation of inventories has been described in Note 2.14.

(i) Represent job work executed pending dispatch.

(ii) In line with circular no.04/ 2015 issued by MCA dated 10-3-2015, loans given to employees as per the Company’s policy are not considered for the purpose of disclosure under section 186 (4) of the Companies Act,2013.

(i) Represent GST input credit (net).

(ii) The Goods and Services Tax Department had visited the premises of the company on 24.08.2020 to verify the transactions of the company with certain dealers who had supplied the raw materials to the company. The case was subsequently transferred to CGST Commissionerate at Meerut and CGST Commissionerate at Ludhiana. The CGST Commissionerate at Meerut issued a Show-Cause Notice amounting to Rs. 2551 lakhs for transactions in Moradabad Plant. During proceedings at Meerut the Additional Commissioner CGST was pleased to reduce the demand from Rs.2551 lakhs to Rs.1291 lakhs with an equivalent amount of penalty against which the company had filed an appeal before Commissioner CGST Appeals. The entire demand alongwith penalty has been set aside by the Commissioner CGST Appeals vide order dated 07.06.2024. CGST Commissionerate at Ludhiana has issued Show Cause Notice for Rs. 7404 lakhs for transactions in Patiala Plant and CGST Commissionerate at Delhi issued Show cause notice of Rs.41 lakhs and Jaipur CGST Commissionerate issued SCN of Rs.2 lakhs The Company is confident that the Show Cause Notices at Ludhiana, Delhi and Jaipur will also be vacated as the case is in parity with Meerut.

(i) During the year, company has reclassified the assets (previously classified as held for sale) into Property Plant and equipment at a carrying amount of Rs 143 Lakhs (WDV) and has disposed off equipment of Rs 100 Lakhs . Balance equipment which is held for sale is expected to be disposed off in the next financial year.

(i) The Company has only one class of equity shares having a par value of Re. 10 per share. Each holder of equity share is eligible for one vote per share.

(ii) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(iii) Board of Director at its meeeting held on 23/10/2023 alloted 2,44,000 numbers of equity shares of Rs. 10 each to the eligible employees/ directors of the company on the exercise of the option by them under the Milkfood Limited stock option plan-2022.

(iv) Details of shares held by each shareholder holding more than 5% shares:

(i) Securities Premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium. Where the Company issues shares at premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares is transferred to “Securities Premium account”. The company may issue fully paid-up bonus shares to its members out of balance lying in the securities premium account and the company can also use the premium for buy-back of shares. Also refer footnote 3C(i) in connection with the scheme of arrangement of business combination.

(ii) Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. It also Includes revaluation reserve of Rs. 5,122 lakhs (PY Rs. 5,163 lakhs) [Net of increase in value of Land & Building of Rs 8,530 Lakhs and decrease in the value of Plant & Machinery of Rs 3,080 Lakhs as at 01.04.2016 after adjusting accumulated depreciation of Rs. 328 Lakhs (PY Rs. 287 lakhs) on revalued figure.

(iii) Share Option Outstanding Account

The fair value of the equity-settled share based payment transactions is recognised in standalone statement of profit and loss with corresponding credit to Employee Stock Options Outstanding Account.

(iv) Capital Reserve has been created in pursuance of scheme of amalgamation between Triputi Infrastructure Pvt Ltd (Transferor Company) with Milkfood Ltd (Transferee Company) duly approved by NCLT Chandigarh Bench.

(v) The disaggregation of changes in each type of reserve, retained earnings and other comprehensive income are disclosed in Statement of Changes in Equity.

(ii) Figures in bracket relates to the previous year. Interest rate above represent prevailing rates.

(iii) a) SBI Term Loan of Rs 1000 Lakhs was primarily secured on 1st pari pasu basis by hypothecation of entire current

assets including stocks of raw materials, stores, spares, SIP, FG, including goods in transit, book debts (etc.) and collaterally secured by 1st pari passu charge through equitable mortgage of factory land and building located at Bahadurgarh Patiala , Moradabad, hypothecation of Movable fixed assets of the company excluding vehicles and assets financed by other lenders on first pari pasu basis. Further the loan is guaranteed by the two promoters.

b) GECL-2.0 and as extended (WCTL) of SBI are secured by way of extension of 2nd charge over the existing primary and collateral securities including mortgages created in favour of the consortium banks on pari passu basis. Refer Note 19(i)

c) GECL 2.0 and as extended (WCTL) of Canara Bank are secured by 1st Pari passu Charge on entire Current Assets of the Company including Receivables and collaterally secured by pari pasu charge on equitable mortgage of Factory land and building located at Bahadurgarh, Patiala and Moradabad. Refer Note 19(i).

d) Canara Bank Term Loan of Rs 1000 Lakhs was primarily secured by 1st pari passu charge on entire current assets of the Company including receivables and collaterally secured through pari pasu charge on equitable mortgage of factory land and building located at Bahadurgarh Patiala - Punjab and at Moradabad and hypothecation of Plant and Machinery.

(iv) Date of agreement: 08.08.2022, tenure 10 years, rate of interest 10.25% p.a

(v) The company has utilised the borrowings from banks and financial institutions for the specific purposes for which it was taken.

(vi) There has been no default in respect of repayment of borrowings and interest. Company has not been declared as wilful defaulter by any bank or financial institution or any other lender.

(vii) Represents the Loan from directors of the erstwhile company merged (refer note 3C.1) in accordance with the scheme of amalgamation between Triputi Infrastructure Pvt Ltd (Transferor Company) with Milkfood Ltd (Transferee Company) duly approved by NCLT Chandigarh Bench.

(i) Cash Credit limit sanctioned by State Bank of India/Canara Bank are secured by hypothecation on pari passu basis on all present & future current assets including stocks and book debts and extension of charge on pari-passu basis on the fixed assets (excluding vehicles) of the company and exclusive charge on the Brand “MILKFOOD”. Refer Note 16(iii).

(ii) The company has utilised the borrowings from banks and financial institutions for the specific purposes for which it was taken.

(iii) Company has not been declared as wilful defaulter by any bank or financial institution or any other lender.

(i) No amounts have been written off / provided for or written back during the year in respect of amounts receivable from or payable to related parties. There have been no guarantee provided or received to/ from related party in respect of any debt/ obligation of the related party or of Company except personal guarantee given by promoters in respect of secured loans from banks

(ii) Related parties have been identified by the management.

(iii) Rent (lease liability including interest) is certified by the the management as per prevalent market rates and for business purposes of the company.

(iv) As the defined benefit plans and compensated absences are provided on actuarial basis for the company as a whole, the amount pertaining to Key Managerial Personnel are not included above.

(v) Related parties transactions are done in the ordinary course of business and are at arms length. Outstanding balances at the year end are unsecured and settled in cash.Refer note 16(iv) for Terms and conditions of loans taken from related party.

(vi) Figures in bracket relates to the previous year.

Note 35. Contingent liabilities
Particulars	As at	As at
	31 March, 2024	31 March, 2023
	(Rs. in Lakhs)	(Rs. in Lakhs)
Claims against the company not acknowledged as debts* (a) Sales tax Refer Note no.8(i)	71	71
(b) Penalty under Khaad Suraksha and manak Adhinium 2006	-	2
(c) Others	7	-
(d) Goods and Service Tax (refer footnote (iii) and note 12(ii))	-	-
Total	78	73

Footnote

(i) *The company is contesting these demands and the management, based on advise of its advisors, believes that its position will likely be upheld in the appellate process. No expense has accrued in the standalone financial statements for these demands raised. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company’s financial position and results of operations. The company does not expect any reimbursements in respect of the above contingent liabilities.

(ii) In addition, the company is subject to legal proceedings claims, which have arisen in the ordinary course of business. The company’s management reasonably does not expect that outcome of these legal proceeding etc, when ultimately concluded and determined, will have adverse material effect on the company’s results of operations or financial condition.

(iii) In the financial results published on 30.05.2024, the demand of ITC of IGST of Rs 1291 Lakhs created with an equivalent amount of penalty aggregating to Rs 2582 Lakhs under sec 74(1) r.w sec 122(i)(vii) of CGST Act, 2017 in respect of Moradabad plant was disclosed as contingent liability pursuant to the order of Additional Commissioner CGST (Meerut) dtd 13.03.2024. The Company had preferred an appeal against the said demand before CGST Appeals Meerut who vide order dtd 07.06.2024, has set aside the entire demand along with penalty. Therefore, the financial statements have been revised to that extent vide resolution of the Board dtd 25.06.2024 and the amount is shown as Nil.

The company’s principal financial liabilities comprise borrowings, Security Deposits Received trade and other payables. The main purpose of these financial liabilities is to finance the company’s operations. The company’s principal financial assets include, trade and other receivables, cash and cash equivalents and security deposits that are out of regular business operations.

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factors. The company’s senior management oversees the management of these risks.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes in market prices. Market risk comprises three types of risk i.e. interest rate risk, currency risk and other price risk, such as commodity risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rate relates primarily to the company’s borrowings with floating interest rates.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings affected. With all other variables held constant, the company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

ii. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. There does not seem to be any significant risk as transaction in foreign currency are not there.

As there is no significant foreign currency risk, sensitivity analysis showing impact on profit is not calculated.

iii. Commodity price risk

The Prices of the raw material keep fluctuating frequently and the company passes the same to the customers through appropriate adjustment to selling prices. During the year, fall in the selling prices of the finished goods was more than the fall in the prices of the raw material due to severe competitive conditions.

(b) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. The company’s exposure to credit risk arises majorly from trade and other receivables. Other financial assets like security deposits and bank deposits are mostly with government authorities and nationalised banks and hence, the company does not expect any credit risk with respect to these financial assets. In majority of cases of Trade receivables are collected in time. The trade receivables are subject to monthly review. Expected Credit Loss is too low considering the past record and management does not foresee any significant change in near future. In view of insignificant credit risk sensitivity analysis showing impact on profit is not calculated

(c) Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions. During the year, company has borrowed the funds from a group entity to meet the working capital requirements The table below summarises the maturity profile of the company’s financial liabilities:

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to shareholders through the optimisation of the debt and equity. For the purpose of the company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders.

The company monitors capital using a gearing ratio, which is net debt divided by total capital. The company includes within net debt, all non-current and current borrowings reduced by cash and cash equivalents and other bank balances. The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of the financials covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payments to shareholders, return capital to shareholders or issue new shares. The capital structure is monitored on the basis of net debt to equity and maturity profile of the overall debt portfolio of the Company.

In order to achieve this overall objective, the company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. The breaches in meeting the financial covenants would permit the bank to immediately call borrowings. There have been no breaches in the financial covenants of any interest-bearing borrowings in the current year.

No significant changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2024 and March 31,2023.

Note 39. Fair value measurement

(i) All the financial assets and financial liabilities of the company are carried at amortised cost.

(ii) The management assessed that the carrying values of trade and other receivables, deposit, cash and short term deposits, other assets, borrowings, trade and other payables reasonably approximate their fair values because these instruments have short-term maturities.

(iii) It is view of the management that fair value impact of long term security deposits/loan paid or payable would not be material.

Note 40: Interim Dividend on Equity Shares

The Board of Directors (in the meeting held on 16.11.2023) declared an interim dividend of Rs 2.50/- per equity share. The Company has charged Rs 128 Lakhs to SOCIE and has paid Rs 56 Lakhs net of TDS. The remaining substantial amount has been paid subsequent to the end of the financial year. The interim dividend declared in the previous year was Rs 2.50/- per equity share.

41. Corporate social responsibility (CSR)

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 defined in schedule VII of the Companies Act which inter- alia includes contribution to the Prime Minister National Relief Fund, PM Cares Fund or any other fund set up by the Central Government for socio economic development and relief and welfare of the scheduled castes, the scheduled tribes, other backward classes, minorities and women. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

Note 44: Relevant Additional Regulatory Information: (Other than disclosed in the respective notes)

(i) The operating cycle of the company is assumed to be of twelve months in absence of clearly identifiable normal operating cycle and accordingly assets/ liabilities have been classified as current/ non current.

(ii) No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(iii) The company has not revalued its PPE(including ROU asset) and hence disclosure regarding basis of revaluation is not applicable.

(iv) The Company has not done any transaction with struck off companies during the year.

(v) There is no charge or satisfaction of any charge which is not registered with ROC beyond the statutory period.

(vi) The company has not granted any loans or advances in the nature of loans to promoters, directors, KMP and the related parties either severally or jointly with any other person which is either repayable on demand or without specifying any terms or period of demand and therefore requirement of disclosure of such loan/ advance is not applicable.

(vii) The company has complied with the number of layers prescribed under clause (87) of section 2 of the act read with companies (restriction on number of layers) rules 2017.

(viii) Company has not applied any accounting policy retrospectively or has made a restatement of items in FS or has reclassified items in the FS.

(ix) 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

(x) 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.

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

(xii) The Company have not made 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)

Note 45: Previous year figures have been reclassified / regrouped wherever necessary to confirm with

those of current year figures.

---

Mar 31, 2018

1. Corporate information

Milkfood Limited (“the Company”) is a public limited company domiciled in India and incorporated under the provisions of the Indian Companies Act. The registered office of the Company is located at P.O. Bahadurgarh-147021 Distt. Patiala (Punjab), India. Its shares are listed on Bombay Stock Exchange (BSE). The Company is primarily engaged in the manufacture and sale of dairy products. The company has two manufacturing locations, one in the state of Punjab at Patiala and one in the state of Uttar Pradesh at Moradabad.

Footnote:

(i) For details of Property, plant and equipment charged as security of borrowings refer Note 16.

(ii) The company has elected measure item of property, plant and equipment and intangible assets at its carrying value at the transition date except for certain class of assets which are measured at fair value as deemed cost. As a result accumulated depreciation on 01.04.2016 is shown at NIL.

(iii) Estimated amount of capital contracts remaining to be executed is Rs. 8 Lacs (Year 2017 Rs. 20 Lacs, Year 2016 Rs 18 Lacs)

(iv) * includes office equipment.

(v) Casien Plant has remained inactive for the last few years but maintenance is being incurred. Company decided to hold all the assets and machinery of the casein plant asinvestment for strategic alliance in financial year 2017. In current year company considered casein plant as normal PPE due to non disposal off, and charged normal depreciation including for financial year 2016-2017.

Footnotes:

(i) In view of insignifcant amount of bad debts in earlier years, no allowance for expected credit loss is made.

(ii) Considered good by the management. Adjustment in respect of dues from canteen stores Department (Govt.), if any, shall be made in financial year 2018-19.

(iii) No trade receivables are due from directors and other officers of the Company either severally or jointly with any other person. Nor any trade receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

(i) Includes non moving stock of Rs. 46 lakhs (P.Y. 45 Lakhs). Managament is of the opinion that the same will be disposed off during financial year 2018-19 and will realise at a value not less than carrying amount.

(ii) In accordance with guidance note issued by the Institute of Chartered Accountants of India, (ICAI) Certified Emission Reduction (CER) units obtained under Clean Development Mechanism (CDM) are treated as inventory on credit by the United Nations Framework Convention on Climate Change (UNFCCC). CER''s are valued at lower of cost or Net Realisable Value (NRV) as per IND AS-2 .

(iii) The mode of valuation of inventories has been stated in Note 2.12

(iv) For details of inventories provided as security for borrowings Refer Note 19.

(i) Advance to Suppliers include an amount of Rs. 284 Lacs due from supplier on account of extinguishment of banks liability of supplier obtained against supplies to the company. Amount is confirmed by the supplier and will be adjusted in the F.Y. 2018-19. Further a sum of Rs. 129 Lacs due from suppliers are confirmed and in the opinion of managment will be adjusted/ recovered in F.Y. 2018-19.

(ii) Includes Rs. 126.51 Lacs( P.YRs. Nil ) GST receivable as on 31.03.2018.

(iii) Represents the realizable value of 97000 CER''s (PY 97000 Units) as certified by the consultant. The receivable is classified as short term as company is of the view that the units are likely to be sold in the FY 2018-19.

(i) The Company has only one class of equity shares having a par value of Re. 10 per share. Each holder of equity share is eligible for one vote per share.

(ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(iii) Details of shares held by each shareholder holding more than 5% shares:

Footnotes:

(i) Where the Company issues shares at premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to “Securities Premium account”. The company may issue fully paid-up bonus shares to its members out of balance lying in the securites premium account and the Company can also use this reserve for buy-back of shares.

(ii) Includes revaluation reseve of Rs. 8443 Lacs (Rs. 7890 as on 31.03.2017 and Rs. 7990 Lacs as on 01.04.2016). Also refer to footnote (i) of Note 40.

(iii) The disaggregation of changes in each type of reserve, retained earnings and other comprehensive income are disclosed in Statement of Changes in Equity.

Footnotes:-

(i) (a) Rupee Loan from Canara Bank of Rs. 586 Lacs at interest rate of 12% p.a is payable in monthly installments fromDec''2016 to Jan''2022 (Refer Note No.21)

(b) The Loan of Canara Bank is secured by an exclusive charge on fixed assets to the extent of Rs.19.50 Crores and on pari-passu basis with State Bank of India on balance fixed assets. As per MCA 21 charge registered with Canara bank is of Rs. 20 Crores.

(ii) Rupee Loan from State Bank of India of Rs. 836 Lacs at interest rate 11.95% p.a is payable in monthly installment by June,2021 is secured against Fixed Assets as mentioned in (i)(b) above. (Refer Note 21).

(iii) Vehicle loans are secured against hypothecation of respective vehicles. (Refer Note 21)

(a) Vehicle Loans of Rs.138 Lacs from Kotak Mahindra Prime Limited are repayable in monthly instalments of varied amounts and repayable by Mar'' 2021 and carry interest rate of 8.39% to 10.76% p.a .

(b) Vehicle Loans of Rs. 182 Lacs from Kotak Mahindra Prime Limited are repayable by Aug''2019 and carry interest of 14.50% .

(c) Total No.of vehicles financed by Kotak Mahindra Prime Limited: 22.

(iv) Term Loans from Kotak Mahindra Bank Ltd are detailed as under (Refer Note 21) :-

(a) Rupee Loan of Rs. 139 Lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Jan ‘2020.

(v) Term Loan from NBFCs are detaled as under (Refer Note 9) :-

(a) Rupee Loan from Magma Fincorp Ltd of Rs. 13 Lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct ‘2018.

(b) Rupee Loan from Bajaj Finance Ltd of Rs. 5 Lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct ‘2018.

(c) Rupee Loan from Tata Capital Financial Services Ltd of Rs. 20 Lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct ‘2019.

(d) Rupee Loan from Capital First Ltd of Rs. 17 Lacs at interest rate of 15.00% p.a is payable at monthly rests to be paid by June ‘2019.

(vi) Interest free intercorporate deposit of Rs. 50 Lacs from S J Finance and Holding (P) Ltd not payable before 31.03.2019 ascertified by the Management.

Footnote:

(i) Includes amount of Rs.Nil (PY Rs. 8 Lacs) interest on Income Tax refund.

(ii) Includes amount of Rs. 0.40 lacs ( P.Y. Rs. 34 Lacs) towards Misc. balance written back, Insurance claim of Rs. Nil ( P.Y. 2 Lacs) and input tax credit of excise duty on packing material of Rs. 11 Lacs (P.Y. Nil) on closing stock as on transtion date of Goods and Service Tax Act.

Footnote:

(i) No amounts have been written off / provided for or written back during the year in respect of amounts receivable from or payable to related parties.

(ii) Related parties have been identified by the management.

(iii) Figures in bracket relates to the previous year.

* The Company is contesting these demands and the management, based on advise of its advisors, believes that its position will likely be upheld in the appellate process. No expense has been accrued in the standalone financial statements for these demands raised. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company''s financial position and results of operations. The Company does not expect any reimbursements in respect of the above contingent liabilities.

In addition, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Company''s management reasonably does not expect that these legal actions, when ultimately concluded and determined, will have material effect on the Company''s results of operations or financial condition.

(B) Defined Benefit Plans

The Company operates one defined benefit plans i.e., gratuity fund for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.

Note: 2. Financial risk management objectives and policies

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include , trade and other receivables, cash and cash equivalents, bank balances and security deposits that are out of regular business operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes in market prices. Market risk comprises three types of risk i.e. interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include borrowings, trade payables.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rate relates primarily to the Company''s borrowings with floating interest rates.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

ii. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. There does not seem to be any significant risk as transaction in foreign currency are very few.

As there is no significant foreign currency risk, sensitivity analysis showing impact on profit is not calculated.

iii. Commodity price risk

The company does not have significant risk in raw material price variations. In case of any variation in price, the same is passed on to customers through appropriate adjustment to selling prices.

(b) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. The Company''s exposure to credit risk arises majorly from trade and other receivables. Other financial assets like security deposits and bank deposits are mostly with government authorities and nationalised banks and hence, the Company does not expect any credit risk with respect to these financial assets. Trade receivables in respect of sale of Ghee , in majority of cases payment is received in Advance and with respect to SMP, the sale is institutional and expected credit loss is too low considering the past record.

(c) Liquidity risk

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank borrowings and security from consignment agents. The table below summarises the maturity profile of the Company''s financial liabilities:

Note: 3. Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders. The primary objective of the Company''s capital management is to ensure that it maintains a good credit rating and capital ratios in order to support its business and maximise shareholder value. The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company includes within net debt, all non-current and current borrowings reduced by cash and cash equivalents and other bank balances.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. The breaches in meeting the financial covenants would permit the bank to immediately call borrowings. There have been no breaches in the financial covenants of any interest-bearing borrowings in the current year.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.

Note 4. Fair value

Fair value measurement:

(i) All the financial assets and financial liabilities of the company are carried at amortised cost.

(ii) The management assessed that the carrying values of trade and other receivables, deposit, cash and short term deposits, other assets, borrowings, trade and other payables reasonably approximate their fair values because these instruments have short-term maturities.

(iii) It is view of the management that fair value impact of long term security deposits/loan paid or payable would not be material.

Note 5. First time adoption of Ind AS

The Company has prepared financial statements which comply with Ind AS applicable for period ending on 31 March, 2018, together with the comparative period data as at end for the year ended 31 March, 2017 as described in summary of significant accounting policies. In preparing these financial statement the Company''s opening balance sheet was prepared as per Ind AS as of 1 April, 2016 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets and liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognized assets and liabilities. However, this principle is subject to certain exceptions and certain optional exemptions availed by the Company (as per Ind AS 101) as detailed below:

(a) Mandatory exceptions:

(i) Accounting estimates:

The Company''s estimates in accordance with Ind AS at the date of transition are consistent with previous GAAP (after adjustments to reflect any difference in accounting policies) or are required under Ind AS but not under previous GAAP.

(ii) De-recognition of financial assets and financial liabilities:

The Company has applied the de-recognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after 1 April, 2016 (the transition date)

(iii) Classification and measurement of financial assets:

The Company has determined the classification and measurement of financial assets in terms of whether they meet the amortised cost criteria or the fair value criteria or the fair value criteria based on the facts and circumstances that existed as on the transition date and considering the material impact.

(b) Optional Exemptions:

(i) Deemed cost for property, plant and equipment and intangible assets:

Ind AS 101 permits a first-time adopter to elect to measure fair value of property, plant and equipment and use that its deemed cost at the date of transition to Ind AS.

(ii) When an entity prepares separate financial statements, Ind AS 27 requires it to account for its investments in subsidiaries, joint ventures and associates either at cost or in accordance with Ind AS 109. A first-time adopter may choose either fair value at the entity''s date of transition to Ind AS in its separate financial statements or Previous GAAP carrying amount at that date, to measure its investment in subsidiary that it elects to measure using a deemed cost. Accordingly, the Company has elected to measure its investment in subsidiary using the Previous GAAP carrying amount as deemed cost.

The note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April, 2016 and the financial statements as at and for the year ended 31 March, 2017.

(i) Under previous GAAP, PPE was shown at historical cost. Ind AS 101 permits a first-time adopter to elect to continue with the carrying value of its property, plant and equipment under previous GAAP and use that as its deemed cost or to measure fair value of class assets of its property, plant and equipment as on the date of transition to Ind AS, and use that as its deemed cost as at the date of transition.

The company has elected to measure item of property, plant and equipmentand intangible assets at its carrying value at the transition date except for certain class of assets which are measured at fair value as deemed cost.

As a result amount of Rs. 5450/- Lacs {for value refer Note 3 (ii)} towards revaluation and amount of Rs. 148/- Lacs towards reduction in deferred tax liabilities aggregating to Rs. 5598 Lacs was credited to retained earnings on 01.04.2016. The net impact on PPE as at 31.03.2017 of Rs. 5621 Lacs (inclusive of Rs 5450/- Lacs as on 01.04.2016) is due to reduction in depreciation amount of Rs. 173 Lacs on account of scaling down of value of plant & machinery (significant amount pertain to casin plant).

(ii) Under previous GAAP, there is no concept of other Comprehensive Income ( OCI). Under Ind AS specified items of income expenses, gain and loss are required to be presented in OCI.

Both under Previous GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Previous GAAP, the entire cost, including actuarial gains and losses, were charged to profit or loss. Under Ind AS, re-measurement (comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and return on plan assets excluding amounts included in net interest on the net defined benefit liability) are recognised immediately in the balance sheet with corresponding debit or credit to retained earnings through other comprehensive income. Thus, employee benefit cost for the year ended March 31, 2017 have been reduced by Rs. 21 Lakhs and re-measurement losses of Rs. 14 Lakhs (net of tax of Rs. 7 Lakhs), on defined benefit plans has been recognised in the other comprehensive income. Net impact during the F.Y.2017-18 is reduction in total comprehensive income by Rs. 25 lakhs.

(iii) Indain GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profit and accounting profit for the period Ind AS 12 requires accounting for deferred taxes using the balance sheet approach, which focuses on temporary difference between the carrying amount of an asset or liabilities in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transition adjustment lead to temporary differences and the Company has accounted for such differences. Deferred tax adjustment are recognised in correlation to the underlying transaction either in retained earnings or a separate component in equity.

Due to transition to Ind AS from previous GAAP, following adjustment were made to deferred tax assets (net) as on 31 March, 2017 and 1 April 2016.

Reduction in liability of deferred tax of Rs. 148 Lacs is on account of reduction in value of PPE (other than land & building which was increased by Rs. 8530 Lacs as refer note 3 (ii) substantial portion belonging to case in plant. Deferred tax has been computed in r/o Plant & Machinery representing temprorydiffrences. Charges to statement of profit & loss of31.03.2017, of Rs. 92 lakhs represent the amounts to confirm the figure computed as per Ind AS 12.

(iv) The transition from Previous GAAP to Ind AS did not have a material impact on statement of cash flows.

Note 6.

Standards issued but yet not effective

Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was notified on 28 March 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1 April 2018. The Company will adopt the new standard on the required effective date using the modified retrospective method. The Company has established an implementation team to implement Ind AS 115 related to the recognition of revenue from contracts with customers and it continues to evaluate the changes to accounting system and processes, and additional disclosure requirements that may be necessary. A reliable estimate of the quantitative impact of Ind AS 115 on the financial statements will only be possible once the implementation project has been completed.

Note 7.

The comparative financial information of the company for the year ended 31 March, 2017 prepared in accordance with Ind AS included in this Financial Statements is based on Financial Statements audited under Indian GAAP by the predecessor auditor Madan& Associates, Chartered accountants vide their report dated 30 May, 2017.

Previous GAAP figures have been reclassified/regrouped wherever necessary to confirm with Financial Statements prepared under Ind AS.

---

Mar 31, 2016

(B) ADDITIONAL NOTES TO ACCOUNTS

i. Contingent liabilities:

Claims not acknowledged as debts Rs.99 Lac (Previous year Rs.95Lac) and guarantee / obligations of Rs.400 Lac. (Previous year 400 Lac ).

ii. Estimated amount of contracts remaining to be executed on capital account is Rs.18 Lac and not provided for (Net of Advances) (Previous year Rs. 5 Lac).

(vi) Related Party Disclosers:

A. Details of related parties with whom the Company had transactions during the year.

Description of relationship Names of related parties

(a) Enterprises over which KMP, major shareholder Jagatjit Industries Ltd.

is able to exercise significant influence MFL Trading Private Ltd (Wholly Owned Subsidiary)

(b) Key Management Personnel Ms Roshini Sanah Jaiswal (CEO/ Directors and their relatives) Mr. Sudhir Avasthi

Ms Asha Gadi Mr. Anil Girotra Mr. Amarjeet Kapoor Mr. K. K. Kohli Mr. Sanjeev Kothiala Mr. Rakesh Thakur

Note: Figures in bracket relates to the previous year

No amounts have been written off / provided for or written back during the year in respect of amounts receivable from or payable to related parties.

(vii) Segment Reporting

The company is operating under a single segment i.e., “Dairy Products- comprising Ghee, Milk Powder, Casein, Whey powder and Dairy whitener” and therefore there are no reportable segments as per AS-17"Segment Reporting” issued by The Institute of Chartered Accountants of India.

Notes:-

Term Loans From Banks:

1 (a) Rupee Loan from Canara Bank of Rs.955 lacs at interest rate of 13.65% and 13.70% p.a is payable at monthly rests as

detailed hereunder :-

Rs.800 lacs (From April''2016 to January ‘2022) Refer Note No.9.1 (a)

Rs.155 lacs (From April''2016 to Nov''2016)

(b) This Loans sanctioned by Canara Bank are secured by the exclusive charge on fixed assets to the extent of Rs.19.50 Crores and exclusive charge on plant and machineries purchased for the fresh loan of Rs.8.00 Cr and pari-passu 1st charge with State Bank of Patiala on balance fixed assets. As per MCA 21charge registered with Canara bank is of Rs.20 Crores.

2 Vehicle Loan of Rs.4 Lac from ICICI Bank Ltd is repayable in monthly instalments by May''2017 and carry interest of 10.50%. Refer Note no. 9.1 (b).

3 Vehicle Loans of Rs. 61 Lac (Two in number) from HDFC Bank Limited is repayable in monthly instalments by Dec''2017 and carry interest of 10.25%. (Refer note no. 9 (a).

4 Rupee Loan from State Bank of Patiala of Rs. 1313 lacs at interest rate 11.95% p.a is payable at monthly installment by July, 2021

5 Vehicle loans are secured against hypothecation of respective vehicles.

(a) Vehicle Loans of Rs.187 Lac from Kotak Mahindra Prime Limited are repayable in monthly instalments of varied amounts and repayable by June'' 2017 and carry interest rate of 14.15% p.a . Refer Note No.9.1(b)

(b) Vehicle Loans of Rs.253 Lac from Kotak Mahindra Prime Limited are repayable in monthly instalments of varied amounts and repayable by Mar ‘ 2019 and carry interest rate of 9.95% to 11.89% p.a . Refer Note No.9.1(b)

(c) Vehicle Loans of Rs.38 Lac from Kotak Mahindra Prime Limited are repayable by Feb''2017 and carry interest of 14.91% . (Refer note no. 9.1(b)).

(d) Total No.of vehicles financed by Kotak Mahindra Prime Limited: 64.

6 Term Loans from Kotak Mahindra Bank Ltd as detail hereunder :-

(a) Rupee Loan from Kotak Mahindra Bank Ltd of Rs.154 lacs at interest rate of 15.25% p.a is payable at monthly rests and to be paid by Feb''2018. Refer note no.9.1(c).

(b) Rupee Loan from Kotak Mahindra Bank Ltd of Rs.73 lacs at interest rate of 15.25% p.a is payable at monthly rests and to be paid by Aug ‘2017. Refer note no.9.1(c).

(c) Rupee Loan from Kotak Mahindra Bank Ltd of Rs.99 lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Feb ‘2017. Refer note no.9.1(c).

7 Unsecured Loans

(a) Rupee Loan from Magma Fincorp Ltd of Rs.84 lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct ‘2018. Refer note no.9.1(c)

(b) Rupee Loan from Bajaj Finance Ltd of Rs.33 lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct ‘2018. Refer note no.9.1(c)

(c) Rupee Loan from Tata Capital Financial Service Ltd of Rs.33 lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct ‘2018. Refer note no.9.1(c)

8 During the year intercorporate deposit of Rs. 325 lakh from Win win traders (P) Ltd has been transferred to security deposit

account and Rs.175 Lac has been adjusted in supplier account. Refer note 5.1.

9 Public deposits matured but unclaimed amounting to Rs 19 lacs (Previous Year 10 lacs).

Footnote:

10 Security Deposits are confirmed by Suppliers payable after 31.03.2017 and have been accordingly classified.

11 (a) Security Deposits are confirmed by Consignees payable after 31.03.2017 and have been accordingly classified.

(b) Includes sum of Rs.79 Lacs which is repayable beyond twelve months from the reporting date, as certified by the

management.

12 Includes Rs 9 Lac towards Public Deposit interest payable (to be transferred to investor education fund in future years) and Rs. 1 lac payable to ex-employee pending final decision of court.

13 Provision for Gratuity and leave encashment has been made in terms of AS-15 (Revised). For Gratuity Liability has been determined as on 31.03.2016 and for Leave Encashment Liability it is determined on calender year basis. Also Refer Note No.10.

14 Cash Credit sanctioned by state Bank of Patiala/Canara Bank are secured by charge on pari passu basis on all present & future Current Assets (excluding vehicles) but including stocks and book debts and extension of charge on pari-passu basis on the fixed assets of the company, equitable mortgage of Land & Building at Gurgoan owned by Ispace Developers Private Limited and exclusive charge on company''s Brand “MILKFOOD”.

The State Bank of Patiala has also extended supplier''s line of credit to the extent of Rs.400 Lac covered in the charge created by the company in its overall limits. Refer Note 4.1(b).

Note:-

15. As per information available with the company there is no party registered under Micro, Small and Medium Enterprises Development Act, 2006.

16.(A) (i) There is no impairment of assets as per AS 28 of ICAI as the company has a composite plant with production facilities capable of interchangeable use for manufacture of casein and milk powder. All assets had been put to use for manufacture of milk powder.

(ii) Includes intangible assets of Rs. 597 lacs written down value of Rs. 173 lacs. In accordance with AS-26 expenses incurred on Intangible Asset and is amortized over a period of 10 years. The amount amortized during the year is Rs. 60 lacs ( Previous Year Rs.60 lacs).

(iii) Company has capitalized the opening work in progress and the additions made during the year at the close of the year at patiala unit and accordingly charged the depreciation.

(iv) In respect of Plant & Machinery, company is consistently following the policy of charging depreciation over 20 years for assets purchased before 01.04.2014 on the basis of certificate given by Govt. approved valuer (Chartered Engineer) of the useful life of more than 35 years. Similarly for additions in Plant & Machinery after 01.04.2014, company has estimated useful life of 20 years (as against 15 years specified in schedule II of the companies Act 2013) based upon the certificate of suppliers/manufacturers of Plant & Machinery.

(v) Interest of Rs 6.64 Lacs incurred prior to assets are put to use is capitalized in Plant & Machinery (PY Rs.38 Lac) as per AS -16.

17. (B) (a) Estimated amount of capital contracts remaining to be executed is Rs.18 Lac (PY Rs.5.08Lac).

(b) Includes Rs.148 Lac for Plant & Machinery & Rs.7 Lac for building.

Note:-

18. Pledged with Government Authorities towards fulfillment of statutory obligations.

19. Advances, security deposits and advances to employees are considered good for recovery as certified by the Management.(Refer Note No 18a). During the year company has realised Rs.15 lakh from non moving advances of earlier years. Amount is being realised as stipulated.

20. Deposit with Sales Tax Authorities represents the amount deposited as a condition for the appeal and considered good for recovery as certified by the management.

21. Pertains to earlier years and reconcilation is in process.

Notes:-

22. Includes Rs. 7 lakh due from government departments outstanding for a period exceeding 3 Years. Management certifies that these are good for recovery. Necessary adjustment, if any, will be effected in FY 2016-17

23. Reclassified as inventory (Refer Note 15.2)

24. Company has incurred Rs. 951.44 Lacs on advertisement of dairy creamer which has been launched during the year. This amount is being amortized in four years and accordingly Rs. 237.86 Lacs has been amortized during the year. An amount of Rs. 733.81 is being carried forward to subsequent years, out of which Rs. 237.86 Lacs has been shown as current and Rs 475.72 Lacs as non current assets.

Note:-

25. In accordance with guidance note issued by the Institute of Chartered Accountants of India, (ICAI) Certified Emission

Reduction (CER) units obtained under Clean Development Mechanism (CDM) are treated as inventory on credit by the United Nations Framework Convention on Climate Change (UNFCCC). CER''s are valued at lower of cost or Net Realisable Value (NRV- certified by the consultant) as per AS-2 of ICAI. Total cost incurred is Rs. 25.82 Lacs (Nil in current year) for CDM project being lower than NRV of 128919 CER Units. Company is confident of sale of these CER units in the FY 2016-17.

26. During the year company has accounted for income for Rs. 67.67 Lacs under exceptional item''s representing cost of trees and Plantations on account of expenses incurred on Power & Fuel and labour for irrigation of the plants in earlier years. In Absence of separate identifiable cost attributable to irrigation, the same has been estimated on the basis of opinion taken from the Agriculture Scientist. Further Expert has given an opinion that these trees have acquired sufficient growth for sale as at 31.03.2016. Based upon the opinion, company has classified the expenses under inventory.

Footnote:-

27.. Classified as Short Term loans as certified by the Management.

28. (1) Amortized on account advertisement expenses incurred on the launch of new product “Dairy Whitener”.

29.A (2) Includes amounts written back on account of expenses incurred in earlier years on trees & plantation (Refer Note 15.2), security deposit and other balances written back which are no longer payable, as certified by the management. (Refer Note 5.1)

30.(a) Provision for Gratuity and Leave encashment has been made during the year in terms of AS-15 (Revised).

(b) Includes provision of minimum bonus of Rs. 14.25 lacs ( Previous year Rs.6.33 lacs) under the payment of Bonus Act 1965.

(c) Includes Rs.156 Lac paid to related party subject to approval by the shareholders in the AGM.

(d) Includes Rs 11.45 Lacs reimbursed to Ex- MD of the company towards medical expenses.

31 Interest of Rs 6.64 Lacs (PY Rs.38 Lac) capitalized towards Plant & Machinery installed during the year. (Refer Note 11 A (v)).

32 (a) Includes reimbursement of Rs 2.39 Lacs to Ex-MD of the company.

(b) Includes Rs 195 Lacs of Carbon Credit written off based on the opinion of the consultant.

33. While computing the Deferred tax liability /assets, benefit of brought forward losses has been taken on the basis of returned income (loss) instead of assessed income (loss) with regards to matters preferred in appeal (s).

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Mar 31, 2015

1. Related Party Disclosers:

A. Details of related parties with whom the Company had transactions during the year.

Description of relationship Names of related parties

(a) Enterprises over which KMP, Jagatjit Industries Ltd. major shareholder is able to MFL Trading Private Ltd exercise significant influence (Wholly Owned Subsidiary) Triputi Infrastructure Private Ltd

(b) Key Management Personnel Ms Roshini Sanah Jaiswal (CEO/ Directors and their Mr. Sudhir Avasthi relatives) Ms Asha Gadi Mr. Suresh Alipuria Mr. Anil Girotra Mr. Amarjeet Kapoor Mr. K. K. Kohli Mr. Sanjeev Kothiala Ms. Rishbha Ahluwalia Mr. Rakesh Thakur

2. Term Loans From Banks:

i. Rupee Loan from Canara Bank of Rs.395 lacs at interest rate of 13.70% p.a is payable at monthly rests in equal instalments of Rs.20 Lac each, detailed hereunder:-

Rs.240 lacs ( From April'2015 to March'2016) Refer Note No.9(a)

Rs.155 lacs ( From April'2016 to Nov'2016)

ii. Term Loans sanctioned by Canara Bank are secured by the exclusive charge on fixed assets to the extent of Rs.19.50 Crores and pari-passu 1st charge with State Bank of Patiala on balance fixed assets.As per MCA 21charge registered with Canara bank is of Rs.27 Crores. Company has vide letter dated 20.02.2015 written to the bank for satisfaction of charge of Rs.15 Crores which is pending.

3. Vehicle loans are secured against hypothecation of respective vehicles.

i. Vehicle Loans of Rs.315 Lac from Kotak Mahindra Prime Limited are repayable in monthly instalments of varied amounts and repayable by June' 2017 and carry interest rate of 14.15% p.a . Refer Note No.9(b)

ii. Vehicle Loans of Rs.117 Lac from Kotak Mahindra Prime Limited are repayable in monthly instalments of varied amounts and repayable by Sep' 2018 and carry interest rate of 9.95% to 11.38% p.a . Refer Note No.9(b)

iii. Vehicle Loans of Rs.201Lac from Kotak Mahindra Prime Limited are repayable by Feb'2017 and carry interest of 14.91% .(Refer note no. 9 (b))

(a)Total No.of vehicles financed by Kotak Mahindra Prime Limited: 47.

iv. Vehicle Loan of Rs.8 Lac from ICICI Bank Ltd is repayable in monthly instalments by June'2017 and carry interest of 10.50%. Refer Note no. 9 (b).

5. Vehicle Loans of Rs.94 Lac (Two in number) from HDFC Bank Limited is repayable in monthly instalments by Dec'2017 and carry interest of 10.25%. (Refer note no. 9 (a).

6. Vehicle loan of Rs.4 Lac from Magma Fincorp Ltd is repayable in monthly instalments by Jan'2016 and carry interest of 12.33%. (Refer note no. 9 ( b).

4. Rupee Loan from Kotak Mahindra Bank Ltd of Rs.193 lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Feb'2017. Refer note no. 7 b (1.2)

5. Inter Corporate Deposit of Rs.500 Lac from M/S Win Win Traders P Ltd is payable by 31st March'2017 as certified by the Management.

6. Public Deposits:-

i. Public deposits are repayable as under:

(a) Rs.331 lacs Payable by March 2016 and carry interest of 11% to 11.5%.(Refer note no. 9 (c))

(b) Rs.225 lacs Payable by March 2017 and carry interest of 11% to 11.5%

ii. Public deposits guaranteed by Directors Rs.183 lacs/-

iii. Public deposits matured but unclaimed amounting to Rs 10 lacs (Previous Year 9 lacs ).

7. Security Deposits are confirmed by suppliers payable after 31.03.2016 and have been accordingly classified.

a. Includes Rs.2542 Lac as security deposit from the consignees and payable after 31.03.2016 as certified.

b. Includes sum of Rs.650 Lac which is repayable beyond twelve months from the reporting date, as certified by the management.

c. Includes Rs 6 Lac towards Public Deposit interest payable (to be transferred to investor education fund in future years) and Rs. 1 lac payable to ex-employee pending final decision of court.

8.a Cash Credit sanctioned by State Bank of Patiala/Canara Bank are secured by charge on pari passu basis on all present & future Current Assets (excluding vehicles) but including stocks and book debts and extension of charge on pari-passu basis on the fixed assets of the company, equitable mortgage of Land & Building at Gurgoan owned by Ispace Developers Private Limited and exclusive charge on company's Brand "MILKFOOD".

The State Bank of Patiala has also extended supplier's line of credit to the extent of Rs.400 Lac covered in the charge created by the company in its overall limits. Refer Note 1.2 of Note 4.

b. Rupee Loan from Kotak Mahindra Bank Ltd of Rs.193 lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Feb'2017. (Refer Note no. 4 (3)

9.(i) There is no impairment of assets as per AS 28 of ICAI as the company has a composite plant with production facilities capable of interchangeable use for manufacture of casein and milk powder. All assets had been put to use for manufacture of milk powder.

(ii) Includes intangible assets of Rs. 597 lacs written down value of Rs. 233 lacs. In accordance with AS-26 expenses incurred on Intangible Asset and is amortized over a period of 10 years . The amount amortized during the year is Rs. 60 lacs ( Previous Year Rs.60 lacs).

a. Company has capitalized the opening work in progress and the additions made during the year at the close of the year and accordingly charged the depreciation.

b. In accordance with Schedule II of the Companies Act 2013, the management has reassessed the remaining useful life of Plant & Machinery with effect from 1st April 2014. As a result of the above, depreciation of Rs.26.64 Lac has been charged to Statement of Profit & Loss Account and Rs.3.36 Lac has been adjusted with opening retained earnings (i.r.o.assets of which useful life is exhausted.) for twelve months ended 31st March, 2015. In respect of Plant & Machinery, company is consistently following the policy of charging depreciation over 20 years , notwithstanding certification by the Govt. approved valuer (Chartered Engineer) of the useful life of Plant & Machinery is more than 35 years. This is in pursuance of proviso to sub clause (i) of clause 3 of Schedule ii of Companies Act 2013. Similarly for additions of Plant & Machinery during the year company has estimated the useful life of 20 years (as against 15 years specified in schedule ii) based upon the certificate of suppliers/ manufacturers of Plant & Machinery.

c. Interest of Rs.38 Lac have been capitalized in Plant & Machinery in accordance with As-16 as certified by the management.

10. In accordance with guidance note issued by the Institute of Chartered Accountants of India, (ICAI) Certified Emission Reduction (CER) units obtained under Clean Development Mechanism (CDM) are treated as inventory on credit by the United Nations Framework Convention on Climate Change (UNFCCC). CER's are valued at lower of cost or Net Realisable Value (NRV- certified by the consultant) as per AS-2 of ICAI. Total cost incurred is Rs.25.82 Lac. (Rs.21.90 Lac pertaing to earlier years and Rs.3.92 Lac of current year) for CDM project being lower than NRV of 128,919 CER units.

11.i) Classified as Short Term loans as certified by the Management.

ii. Includes Rs.700 Lac due from a Promoter company towards the sale of Milkfood brand ( ealier year ) pending no objection from the lending bank who hold the charge. Amount is recoverable within one year from the reporting date as certified by the Management.

iii. Represents the realizable value of 97000 CER's (PY 97000 Units) as certified by the consultant. The amount has been accounted for as income in ealier years and is classified as short term as company is of the view that the units are likely to be sold in the FY 2015-16. Adjustments if any shall be effected on disposal of the units.

12. Expenses are net of interest received of Rs.91 Lac from M/S Triputi Infrastructure Private Ltd. (P Y Nil). Further interest of Rs.38 Lac (P Y Nil) has been capitalized in Plant & Machinery installed during the year on the premise that the Plant & Machinery was put to use beyond one year of its acquisition.

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Mar 31, 2014

I. The Contingent liabilities:

Claims not acknowledged as debts Rs.152 Lac. (Previous year Rs.516 Lac).

ii. Estimated amount of contracts remaining to be executed on capital account is Rs.23 Lac and not provided for (Net of Advances) (Previous year Nil).

iii. Exceptional items represents Profit/(Loss) on Carbon Credits written off, Security deposit written off, Abnormal wastage of Husk and Packing material, provision for gratuity and leave encashment including prior period and on sale of vehicles.

Notes:-

1 Term Loans From Banks:

(1.1) Rupee Loan from Canara Bank of Rs.188 lacs at interest rate of 15.00% p.a is payable in quarterly instalments as follows:-

Rs.188 lacs (From April''2014 to June''2014) Refer Note No.9(a)

(1.2) Rupee Loan from Canara Bank of Rs.635 lacs at interest rate of 13.70% p.a is payable at monthly rests,the details are as follows:-

Rs.240 lacs (From April''2014 to March''2015) Refer Note No.9(a)

Rs.395 lacs (From April''2015 to Nov''2016)

(1.3) Term Loans sanctioned by Canara Bank are secured by the exclusive charge on fixed assets to the extent of Rs.19.50 Crores and rank pari-passu with State Bank of Patiala on all present and future current assets(excluding vehicles) and fixed assets including Plant & Machinery/ immovable properties situated at Bahadurgarh & Moradabad together with all Building and structures thereon, equitable mortgage of Land & Building at Gurgaon in the name of Ispace Developers Pvt Ltd and exclusive charge on Company''s Brand "MILKFOOD".

2. Vehicle loans are secured against hypothecation of respective vehicles.

(2.1) Vehicle Loans of Rs.426 Lac (Twenty Nine in number) from Kotak Mahindra Prime Limited are repayable in monthly instalments of varied amounts and repayable by June'' 2017 and carry interest rate of 14.15% p.a. Refer Note No.9(b)

(2.2) Vehicle Loans of Rs.74 Lac (Nine in number) from Kotak Mahindra Prime Limited are repayable in monthly instalments of varied amounts and repayable by Sep'' 2018 and carry interest rate of 9.95% to 11.38% p.a. Refer Note No.9(a)

(2.3) Vehicle Loans of Rs.6 Lac from Volkswagen Finance Private Limited are repayable in monthly instalments by May'' 2016 and carry interest of 10.50%. (Refer note no. 9 (b)).

(2.4) Vehicle Loans of Rs.47 Lac from HDFC Bank Limited is repayable in monthly instalments by April'' 2016 and carry interest of 10.25%. (Refer note no. 9 (a)).

(2.5) Vehicle Loan of Rs.8.22 Lac from Magma Fincorp Ltd is repayable in monthly instalments by January'' 2016 and carry interest of 12.33%. (Refer note no. 9 (a)).

3. Intercorporate Deposits are repayable by September2015 and carry interest @14% on net basis.

4. Public Deposits:-

(4.1) Public deposits are repayable as under:

(a) Rs. 535 lacs Payable by March 2015 and carry interest of 10.50% to 11.5%.(Refer note no. 9 (c)).

(b) Rs. 553 lacs Payable by March 2016 & 2017 and carry interest of 11% to 11.5%

(4.2) Public deposits guaranteed by Directors Rs. 290 lacs.

(4.3) Public deposits matured but unclaimed amounting to Rs. 9 lacs (Previous Year 9 lacs).

5.Note:-

1. Security Deposits are confirmed by suppliers payable after 31.03.2015 and have been accordingly classified.

2. (i) Includes a sum of Rs. 961 lacs which is repayable beyond twelve months from the reporting date, as certified by the management.

(ii) Includes Rs.2176 lacs confirmed by the creditors payable after 12 months from the reporting date.Including Rs.83 lacs due to customer on account of sales return. Amount will be adjusted after expiry of limitation period.

3. Includes Rs. 4 lacs towards Public Deposit interest payable (to be transferred to investor education fund in future years) and Rs. 1 lacs payable to ex-employee pending final decision of court.

6. Provision of Rs.173 lacs has been made towards gratuity and leave encashment in terms of AS-15 (Revised). Refer Note No.10 and 21.3

Note:-

7 Cash Credit sanctioned by State Bank of Patiala/Canara Bank are secured by first charge on pari passu basis on all present & future current assets (excluding vehicles) and fixed assets including Plant & Machinery/ immovable properties situated at Bahadurgarh & Moradabad together with all Building and structures thereon, equitable mortgage of Land & Building at Gurgoan in the name of Ispace Developers Pvt Ltd and exclusive charge on company''s Brand "MILKFOOD". The State Bank of Patiala has also extended supplier''s line of credit to the extent of Rs.400 Lac covered in the charge created by the company in its overall limits. Refer Note 1.3 of Note 4.

8 Rupee Loan from Kotak Mahindra Bank Ltd of Rs.168 lacs at interest rate of 16.00% p.a is payable at monthly rests and to be paid by Jan''2015.

Note:

9 (a) As per information available with the company there is no amount due to any party registered under Micro, Small and Medium Enterprises Development Act, 2006.

(b) Refer Note 5(1).

10 Notes:-

1 (i) There is no impairment of assets as per AS 28 of ICAI as the company has a composite plant with production facilities capable of interchangeable use for manufacture of casein and milk powder. All assets had been put to use for manufacture of milk powder for domestic and exports owing to better realization.

(ii) Includes intangible assets of Rs. 597 lacs written down value of Rs. 292 lacs. In accordance with AS-26 expenses incurred on Intangible Asset and is amortized over a period of 10 years . The amount amortized during the year is Rs. 60 lacs ( Previous Year Rs.60 lacs).

2. The company has computed depreciation in respect of plant & machinery as per the prescribed rates under schedule XIV of the Company''s Act 1956 on straight line method since 1.4.1988 and prior to that as per section 205 and other applicable provisions of the Company''s Act 1956. This has resulted into an excess depreciation of Rs.252 Lac at Patiala unit and Rs.48 Lac in Moradabad unit. The excess depreciation charged of Rs.300 Lac as certified by management is shown net of short depreciation charged of Rs.83 Lac in the previous FY 2012-13.

3. Company has capitalized the opening work in progress and the additions made during the year (including substantial renovation) at the close of the year and accordingly charged the depreciation.

11 Note:

1. Due to closure of business of the investee company the entire amount is written off and charged to extra ordinary items - Refer Note No.21.3

2. Pledged with Government Authorities towards fulfillment of statutory obligations.

12 Notes:

1. Advances, security deposits and advances to employees are considered good for recovery as certified by the Management. Refer Note No. 19 b

1.1 Deposit with Sales Tax Authorities represents the amount deposited as a condition for the appeal and considered good for recovery as certified by the management.

13 Notes:

1. Excludes Rs 4.89 lacs on account of issue of cheques (stale) against payment of interest.

14 Note:

1 (i) Includes Rs.700 Lac due from a Promoter company towards the sale of Milkfood brand pending no objection from the lending bank who hold the charge.

(ii) Includes Rs.468 Lac due from suppliers of Milk. Management is of the view that the same will be recovered within 12 months from the reporting date.

2. Represents the realizable value of Carbon credits as certified by the consultant. During the year company has charged off Rs.225 Lac against Extra ordinary income. (Refer Note 21.3). It is certified by the management that the amount would be realized within a year from the reporting date.

15 Note:

(a) Provision for Gratuity and Leave encashment of Rs.173 Lac has been made during the year in terms of AS-15 (Revised) and charged of as exceptional items. (Refer Note No. 21.3)

(b) Includes provision of minimum bonus of Rs. 7.41 lacs (Previous year Rs.10 lacs) under the payment of Bonus Act 1965.

1. Excludes Rs.13.51 Lac capitalized in Tangible Assets.

2. Excludes Rs. 162 Lac (Refer Note No. 21.3)

3. Excludes Rs. 104 Lac (Refer Note No. 21.3)

4. Includes Prior period expenses of Rs.7.15 Lac, Misc balances written off Rs.18.15 Lac and income Tax on perquisites Rs.13.35 Lac.

16 Note:

While computing the Deferred tax liability /assets , benefit of brought forward losses has been taken on the basis of returned income(loss) instead of assessed income (loss) with regards to matters preferred in appeal (s).

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Mar 31, 2013

I. Contingent liabilities:

Claims not acknowledged as debts Rs.516 Lacs net of tax u/s 115 JB Rs.415 Lacs. (Previous year Rs.594 Lacs net of tax u/s 115 JB Rs.476 Lacs).

ii. Estimated amount of contracts remaining to be executed on capital account is nil and not provided for (Net of Advances) (Previous year Rs.212 Lacs).

iii. Exceptional items represents Proft/(Loss) on sale of vehicle.

Note: Figures in bracket relates to the previous year

No amounts have been written off / provided for or written back during the year in respect of amounts receivable from or payable to related parties.

Term Loans From Banks:

(1.1) Rupee Loan from Canara Bank of Rs.875 lacs at interest rate of 15.00% p.a is payable in quarterly instalments as follows:- (a) Rs.688 lacs ( From April''2013 to March''2014) Refer Note No.9(a)

(b) Rs.188 lacs ( From April''2014 to June 2014).

(1.2) Cash Credit and Term Loans sanctioned by State Bank of Patiala/Canara Bank are secured by frst and exclusive charge on all present and future current assets (excluding vehicles) and fxed assets including Plant & Machinery/ immovable properties situated at Bahadurgarh & Moradabad together with all Building and structures thereon, equitable mortgage of Land & Building at Gurgaon in the Name of Ispace Developers Pvt Ltd and exclusive charge on company''s Brand "MILKFOOD". The State bank of Patiala has also extended supplier''s line of credit to the extent of Rs. 400 lacs covered in the charge created by the company in its overall limits.

2. Vehicle loans are secured against hypothecation of respective vehicles.

(2.1) Vehicle Loans (fve in number) from ICICI Bank are repayable in monthly instalments of varied amount and repayable by February 2015 and carry interest rate of 10.49% to 12% p.a based upon terms & conditions of respective Loans.

(2.2) Vehicle loan from BMW Financial Services is payable in 5 years monthly instalments and is repayable by September 2016 and carry interest rate of 12% p.a. (Refer note no. 9 (a))

(2.3) Vehicle Loans (fve in number) from Kotak Mahindra Prime Ltd are repayable in monthly instalments of varied amount and are repayable by December 2015 and carry different rates of interest in range of 10.55% to 11.94%. (Refer note no. 9 (a))

3. Loan from Religare Finvest limited carry foating rate of Interest of 16% in respect of both the loan of Rs. 700 lacs & of Rs.1500 lacs. Both the loans are on equated monthly of Rs. 11 lacs and Rs.17 lacs respectively and are repayable by 1st March 2018. (Refer note no. 9 (a))

4. Intercorporate Deposits are repayable by September 2014 and carry interest @ 14% p.a. on net basis.

5. Public Deposits:-

(5.1) Public deposits are repayable as under:

(a) Rs. 539 lacs Payable by March 2014 and carry interest of 10.50% to 11.50%. (Refer note no. 9 (a))

(b) Rs. 555 lacs Payable by March 2015 & 2016 and carry interest of 11% to 11.50% (5.2) Public deposits guaranteed by Directors Rs.281 lacs/- (5.3) Public deposits matured but unclaimed amount to Rs. 9 lacs (Previous Year 10 lacs).

1. Addition represents stamp duty/ charges paid on registration of Moradabad land in favour of the company.

2 (i) Operations of Casein Plant (Patiala) remained suspended till December''2012 because of ban on export of casein, which had been partially lifted in August''

2012. Company obtained the license during the year and has manufactured and exported 140 MT and 119 MT respectively. Company is very optimistic about the future and has made the projections of cash fow of 5 years considering that it will be able to manufacture and sell 1200MT of casein during the FY2013-14 based upon the orders in hand of 544 MT.and at incremental growth @5% for subsequent years. . In confrmity with Accounting Standard AS- 28 issued by the ICAI, the total carrying amount of assets including intangible Assets is Rs.3432 lacs of Casien Plant. and the present value of the future cash fow discounted @ 12% is Rs3467 lacs. Since present value of Rs 3467 lacs exceeds the carrying amount , no impairment of Asset is recognised.

(ii) Includes intangible assets of Rs. 597 lacs written down value of Rs. 352 lacs. In accordance with AS-26 expenses incurred on development/defning the manufacturing process of any product to meet the required standard is recognized as Intangible Asset and is amortized over a period of 10 years. The amount amortized during the year is Rs. 60 lacs ( Previous Year Rs.60 lacs).

3 Assets at Gurgaon:

(a) Plant and Machinery and furniture and fxtures held for disposal have been depreciated at the rates prescribed under Schedule XIV of the Companies Act. The aggregate written down value of such assets is Rs.17.75 Lacs (Previous year Rs.21.09 lacs). Plant and Machinery and furniture and fxtures held for disposal have been depreciated at the rates prescribed under Schedule XIV of the Companies Act. The aggregate written down value of such assets is Rs.15 lacs under Schedule XIV of the Companies Act. The aggregate written down value of such assets is Rs.15 lacs (Previous year Rs.18 lacs).

4 (i) Based upon technical evaluation about life of assets Company has charged depreciation on Plant & Machinery at the rate 3.17% instead at 4.75% prescribed in schedule XIV of the Companies Act 1956.As a result depreciation charged is less by Rs.84 lacs during the year. Company has made an application for approval of lower rates than prescribed in schedule XIV of the Companies Act 1956. Approval from Ministry of Corporate Affairs is awaited.

(ii) Addition to plant and machinery at Patiala Unit of Rs 870 lacs includes expenses of Rs 100 lacs being proportionate overheads capitalized at the close of the year and depreciation provided accordingly.

5. Company has capitalized the opening work in progress and the additions made during the year (including substantial renovation) at the close of the year and accordingly charged the depreciation.

1. In the earlier years company had invested Rs.425 lacs in the preference share capital of M/s Grand Regency Hospitalities (P) Ltd. The investee company had stopped the business due to termination of lease of premises. More than 50% of net worth of investee company is eroded due to losses. However Company is of the view that there is no need for creating any provision for diminution in the value of investments considering the estimated fair value of the Brand of investee company.

2. Pledged with Government Authorities towards fulfllment of statutory obligations.

1. (a) Stocks on consignment of Rs.31 lacs (Previous year Rs 25 lacs ) remains unconfrmed at the year end.

(b) Includes stock of Whey Powder (By-product) of Rs. 27 lacs (previous year Rs 69 lacs).

(c). Includes Rs.35 lacs towards unutilized Input Credit . Management is of the opinion that the same will be utilized in the next fnancial year.

1 Include Rs.200 lacs paid by the company to the respondents on the directions of Hon''ble Supreme Court for admitting the Special Leave Petition against the order of High Court of Patna confrming the payment of Rs.328 lacs (Shown as Contingent Liability) Hon''ble supreme court has ruled that Delhi High court holds the jurisdiction . Management believes that the matter will be decided within 12 months of the reporting date.

2. Represents amount deposited in earlier years on a demand raised by the authorities. Identical matter is pending in appeal before Supreme Court. Management believes that the same is likely to be decided in the coming year.

3. Includes Rs.19 lacs pertaining to earlier years for disputed matters pending in appeals.

4. Represents balance due on account of VCS certifcates at the close of the year. In the opinion of management and as certifed by the consultant that in view of the improved international prices the remaining VCS certifcates will be sold by next fnancial year and the amount realized will not be less than the amount recorded in books.

1 Based upon technical evaluation about life of assets Company has charged depreciation on Plant & Machinery at the rate 3.17% instead at 4.75% prescribed in schedule XIV of the Companies Act 1956. As a result depreciation charged is less by Rs.84 lacs during the year. Company has made an application for approval of lower rates than prescribed in schedule XIV of the Company Act 1956. Approval from Ministry of Corporate affairs is awaited.

2. Refer note 3 of Note 11 A

1 While computing the Deferred tax liability /assets , beneft of brought forward losses has been taken on the basis of returned income(loss) instead of assessed income (loss) with regards to matters preferred in appeal (s).

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Mar 31, 2012

I. Contingent liabilities:

Claims not acknowledged as debts Rs.594.43 lacs net of tax u/s 115 JB Rs.475.50 Lacs. (Previous year Rs.766.56 lacs net of tax Rs.613.98 lacs).

ii. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances) Rs.211.82 lacs (Previous year Rs. 58.87 lacs).

iii. Exceptional items represents Profit/(Loss) on sale of vehicles.

iv. Extra ordinary items represent miscellaneous income arising on account of recovery made from contractual obligations of earlier years.

Note:- Figures in bracket relates to the previous year

No amounts have been written off / provided for or written back during the year in respect of amounts receivable from or payable to related parties.

Notes:-

1 Term Loans From Banks:

(1.1) Rupee Loan from Canara Bank of Rs.1500 lacs at interest rate of 15.50% p.a is payable in quateriy instalments as follows:-

(a) Rs. 62.50 lacs from September 2011 to June 2012

(b) Rs. 125.00 lacs from September 2012 to June 2013

(c) Rs. 187.50 lacs from September 2013 to June 2014.

(1.2) Rupees Loan from State Bank of Patiala are repayable in equated monthly instalments of Rs.35.90 lacs and Rs. 8.50 lacs upto a period of 5 years from the date of respective loan. Loan is repayable by 30th August, 2012 and carry interest of 15.25% & 15.75% p.a.

(1.3) Cash Credit and Term Loans sanctioned by state Bank of Patiala/Canara Bank are secured by first and exclusive charge on all present and future current assets and fixed assets including Plant & Machinary/ immovable properties situated at Bahadurgarh & Moradabad together with all Building and structures thereon, equitable mortagage of Land & Building at Gurgaon in the Name of Ispace Developers Pvt Ltd and exclusive charge on company's Brand “MILKFOOD’. The State bank of Patiala has also extended supply line of credit to the extent of Rs. 8 crore against which company has created a charge on its immovable assets.

2. Vehicle loans are secured against hypothecation of respective vehicles.

(2.1) Term Loans (Vehicle) from ICICI Bank are repayable in monthly instalments of varied amount and repayable by February 2015 and carry interest rate of 6.66% to 12% p.a based upon terms & conditions of respective Loans.

(2.2) Vehicle loan from BMW Financial Services is payable in 5 years monthly instalments and is repayable by September 2016 and carry interest rate of 12% p.a.

(2.3) Vehicle Loans (thirty three in number) from Kotak Mahindra Prime Ltd are repayable in monthly instalments of varied amount and are repayable by March 2013 and carry different rates of interest.

3. Loan from Religare Finvest limited carry floating rate of Interest of 15.5 to 16% (in respect of loan of Rs.7.00 crores & of Rs.15.00 crores). Loan of Rs.7 crores is repayable in equaled monthly instalment of Rs. 10,45,176/- and repayable by 1.11.2021. Similarly loan of Rs.15 crore is payable in Equal monthly instalements of Rs.16,50,461/- is repayable by 1st March 2021.

4. Intercorporate Deposits are repayable by September 2014 and carry interest @ 12% p.a. on net basis.

5. Public Deposits:-

(5.1) Public deposits are repayable as under:

(a) Rs. 4,31,40,000 Payable by March 2013 and carry interest of 10-11.50%

(b) Rs .3,64,16,000 Payable by march 2014 & 2015 and carry interest of 10-11.5%

(5.2) Public deposits guaranteed by Directors Rs.1,26,58,000/-

(5.3) Public deposits matured but unclaimed amount to Rs 9.78 lacs (Previous Year 5.38 lacs).

Note:-

1. No provision for Gratuity liability as on 31st March, 2012 amounting to Rs.196.59 lacs (Previous year Rs. 220.57 lacs) calculated in accordance with acturial valuation as per AS-15 (Revised), of which (Rs.23.98 lacs) relates to current year (Previous year Rs.35.85 lacs) has been made in these accounts.

Notes:-

1. Land purchased at Moradabad includes Land valued at Rs.85.09 lacs (previous year Rs.85.09 lacs) for which agreement to purchase has been entered and steps are being taken to register the land in the name of the company. The company is in full control and possession of the land and the same is used for the business purposes.

2. (i) Operations of Casein Plant (Patiala) remained suspended during the year under Audit due to ban on export of casein, which has been partially lifted with condition of obtaining licence from DGFT. Company is in the process of making an application for obtaining licence. Total carrying amount of fixed assets including intangible assets is Rs. 3632 lacs (Previous Year Rs. 3787 Lacs) as at close of the year. Interest of Rs. 75.41 lacs has been debited to Plant & Machinery Casein Plant. In pursuance of requirement of AS-28 Company is in the process of computing the projections of cash flow and present value, considering the global economic scenario. Management has utilized portion of Assets of Casein plant for its dairy business considering the facts as stated. Management is of view that there is no impairment of Assets within the meaning of AS-28 and hence no provision as such is made during the year.

(ii) Includes intangible assets of Rs. 59677 (thousands) written down value of Rs. 41207 (thousand). In accordance with AS-26 - expenses incurred on development/defining the manufacturing process of any product to meet the required standards is recognized as Intangible Asset and is amortized over a period of 10 years. The amount amortized during the year is Rs.59.67 lacs (Previous Year Rs. 59.67 Lacs).

3. Assets at Gurgaon:

Plant and Machinery and furniture and fixtures held for disposal have been depreciated at the rates prescribed under Schedule XIV of the Companies Act. The aggregate written down value of such assets is Rs.17.75 lacs (Previous year Rs. 21.09 lacs).

Note:-

1. Includes Rs. 47993 thousands capitalised during the year in respect of expenses incurred in earlier years through erstwhile subsidiary company. No depreciation has been charged during the year under audit.

Notes:-

1. In the earlier years company had invested Rs. 425 lacs in the preference share capital of M/s Grand Regency Hospitalities (P) Ltd. The investee company had stopped the business due to termination of lease of premises. More than 50% of net worth of investee company is eroded due to losses. However Company is of the view that there is no need for creating any provision for dimunition in the value of investments considering the estimated fair value of the Brand of investee company.

2. Pledged with Government Authorities towards fulfilment of statutory obligations.

Notes:-

1. Refer Note 19(4).

2. Is receivable in three financial years i.e by 2014-15

3. Refer Note No. 19(2).

4. Refer Note No. 19(3).

Note:-

1. (a) Stocks on consignment of Rs.24.83 lacs (Rs.200 lacs ) remains unconfirmed at the year end.

(b) Closing stocks includes stock of Whey Powder (By-product) of Rs. 68.87 lacs (previous year Rs. 425 lacs). Net realizable value of Rs.100/- per kg is estimated by the Management on the basis of net realizable value of the final product.

Notes:-

1. Loans & Advances include Rs. 2.00 crores paid by the company to the respondents on the directions of Hon'ble Supreme Court for admitting the Special Leave Petition against the order of high Court of Patna confirming the payment of Rs. 3,28,35,000/-. As the matter is subjudice no amount has been charged to Statement of Profit & Loss .

2. Loans and advances includes Rs. 59.27 lacs deposited in earlier years against the demand raised by the Punjab State Electricity Board. Identical matter in third party case is pending before the Supreme Court hearing of which is fixed in the last week of October, 2012. Company is reasonably hopeful that the matter will be decided against PSEB and Company will be entitled to refund from PSEB. Therefore amount is retained as recoverable till the matter is finally decided by the Supreme Court. Keeping in view the facts as stated the amount is expected to be realized with in 12 months.

3. Balance with sales tax authorites is considered to be realizable within a period of 12 months as it is pending appeals will be decided in favour of company with in 12 months of reporting date.

4. Under United Nation Framework Convention on Climate Change (UNFCCC) Company's project for 1.60MW Bundled Rice Husk Based co-generation plant at factory premises Patiala & Moradabad has been approved by the Host Country. As per certificate of consultant 69683 VCS Per Year have been approved and same have been registered with VCS Registry NYSE BLUE. Similarly the CDM project of company has been registered w.e.f 14.02.2012 with UNFCCC after due validation process Carbon reduction (CER's) are 69692 per annum and applicable till 23.02.2022. Further consultant has certified that on conservative basis company must realise a minimum of Rs. 818 lacs by sale of carbon credits that company has earned for two calender years 2009-10 and for a period up to 31.05.2011.

1. A sum of Rs.4.00 lacs has been charged to Statement of Profit and Loss on account of reduction in estimated realizable value in respect of general stores of Rs.32.79 lacs (previous year Rs.36.79 lacs)

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Mar 31, 2011

1. Contingent liabilities:

Claims not acknowledged as debts Rs.766.56 Lacs net of tax u/s 115 JB Rs.613.98 Lacs. (Previous year Rs.755.93 Lacs net of tax Rs.627.46 lacs).

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances) Rs.58.87 Lacs (Previous year Rs. 1.51 Lacs)

3. Equity shares capital include 30,10,225 Equity Shares (Previous year 30,10,225) allotted by way of Bonus Shares by capitalisation of General Reserve/Share Premium Account.

4 (i) Cash Credit, Term Loan and other term loans sanctioned by State Bank of Patiala/Canara Bank are secured by first and exclusive charge on all present and future current assets and fixed assets including Plant & Machinery/immovable properties situated at Bahadurgarh & Moradabad together with all Buildings and structures thereon, equitable mortgage of land & building at Gurgaon in the name of Ispace Developers Pvt Ltd and exclusive charge on company's Brand 'milkfood'. The State Bank of Patiala has also extended supply line of credit to the extent of Rs.8 Crores against which company has created a charge on its immovable assets.

(ii) Vehicles Loans are secured against hypothecation of vehicles.

(iii) Term Loans payable within one year are Rs.1169.15 Lacs (Previous Year 859.00 Lacs).

5. Schedule 3 Unsecured Loans include deposits of Rs.5.38 Lacs (Previous year - Rs.3.13 Lacs) matured but not claimed. Deposits for Rs.3.68 Lacs have since been renewed/repaid.

6a. Schedule 9 - Loans and advances includes amount due from Directors of the Company as at 31st March, 2011 Rs.0.22 Lacs (Previous Year Rs.0.24 lacs). Maximum amount due at any time during the year Rs.3.68 lacs (Previous year Rs.4.07 lacs).

6b. Schedule - 10 Current Liabilities includes Rs.0.06 lacs due to directors of the Company (Previous Year Rs.0.11 lacs). Maximum amount due during the year Rs.0.11 lacs.

7. No provision for gratuity liability as on 31st March, 2011 amounting to Rs.220.57 Lacs (Previous year Rs. 184.72 Lacs) calculated in accordance with actuarial valuation as per AS-15 (Revised), of which Rs.35.85 Lacs relates to current year (Previous year Rs.NIL Lacs) has been made in these accounts.

8. Schedule 9 - Loans and advances include Rs.498 Lacs recognized in current year (For Previous Year Rs.320 Lacs) pending registration and sale of carbon credits, is based on UNFCCC validator's report.

9. There is no amount due to any party under Micro, Small and Medium Enterprises Development Act, 2007.

10. Land at Moradabad of Rs.85.09 Lacs (previous year Rs.85.09 Lacs) purchased through an Associate Company, for which steps have been taken to register the same in the name of the company. The company is in full control and possession of the land and the same is used for the business purposes.

11. Assets at Gurgaon:

(a) Plant and Machinery and furniture and fixtures held for disposal have been depreciated at the rates prescribed under Schedule XIV of the Companies Act. The aggregate written down value of such assets is Rs.21.09 Lacs (Previous year Rs.26.44 Lacs).

(b) A sum of Rs.4.00 Lacs has been charged to Profit and Loss Account on account of reduction in estimated realizable value in respect of general stores of Rs.36.79 Lacs (previous year Rs.40.79 Lacs).

12. The Company had invested Rs.425 lacs in the preference share capital of M/s Grand Regency Hospitality Private Ltd. The investee company has stopped the business as the lease of the premises occupied by it could not be renewed. The investee company is finalizing new lease and other options to carry on the business. Considering the estimated fair value of the brand of the investee company and other net realizable value of the assets, the company is of the view that no provision is required in this year as the diminution in the value of investment due to suspension of business by the investee company is temporary in nature.

13. (i) Stocks on consignment of Rs.2 Crores is pending comfirmation at the year end.

(ii) Miscellaneous receipts includes Rs.66.08 Lakhs representing differential amount on account of revision of rates of export sales.

14. In conformity with Accounting Standard AS-28 issued by the ICAI, the total carrying amount of assets including intangible assets is Rs. 3787 Lacs. In pursuance of projections made for the financial year 2010-11. Company has registered sale of casein (including Whey Powder of Rs.1223 Lacs) against projected sales of Rs.3948 Lacs. At present, export of Casein is banned. However, Management is hopeful that the ban will be lifted in the near future. Considering the entire current and likely economic scenario (Global & domestic) Company has revised projections and has estimated the present value at Rs.4241.00 Lacs. Projections of 10 years includes sale of Whey Powder in domestic market. While making the projections, Management has duly considered the factors in the past and consciously has made the projection on most conservative basis. Therefore in the opinion of Management there is no impairment of assets within the meaning of AS-28.

15. Loans & Advances include Rs.8.75 Lacs recoverable on account of Sales Tax of earlier years which are outstanding from earlier years:

16. During the year M/S Ispace Developers Pvt. Ltd. has ceased to be the subsidiary of the company. M/S MFL Trading Private Limited has become the wholly owned subsidiary of the company.

17. Related Party Disclosures

In accordance with the requirements of Accounting Standard 18 on the Related Party Disclosures, the transactions and Related Parties with whom transactions have taken place during the year are as follows:

(A) Related parties and transactions with them as identified by the management are given below:

List of related parties with whom transactions have taken place.

(a) Enterprises over which Major shareholders, Key Management Personnel and their relatives have significant influence -

- Jagatjit Industries Ltd. (Associate Concern)

- Ispace Developers Pvt. Ltd. (Wholly owned subsidiary)

(b) Key Management Personnel (Directors) and their relatives

(a) Mr. Umesh Saxena (Managing Director)

(b) Ms. Asha Gadi

(c) Mr. Suresh Alipuria

(d) Mr. Amarjeet Kapoor

(e) Mr. K.K. Kohli

(f) Mr. Nitin Saxena (son of Mr. Umesh N. Saxena)

(g) Mr. Udit Saxena (son of Mr. Umesh N. Saxena)

22. Capacities, production, sales, opening and closing stocks

*A As per Notification No.477 (E) dated 25-07-91 issued under the Industries (Development and Regulation) Act, 1951.

*B Installed capacity, being a technical matter, is as certified by Management on which Auditors have relied upon.

*C This comprises Weaning Food, Milk Powder, Infant Milkfood, Condensed Milk and Cheese.

*D The products are manufactured in integrated plant; hence, installed capacity cannot be given.

*E Captive consumption is not included.

18. Previous Years figures have been recast /regrouped where ever necessary in order to conform to the current years' presentation.

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Mar 31, 2010

1. Contingent liabilities:

Claims not acknowledged as debts Rs. 755.93 lacs net of tax Rs. 670.28 lacs (Previous year Rs. 736.68 lacs net of tax Rs. 653.21 lacs).

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances) Rs. 1.51 lacs (Previous year Rs. 39.52 lacs)

3. Equity shares capital include 30,10,225 Equity Shares (Previous year 30,10,225) allotted by way of Bonus Shares by capitalisation of General Reserve/Share Premium Account.

4 (i) Cash Credit, Term Loan and other term loans sanctioned by State Bank of Patiala is secured by first and exclusive charge on all present and future current assets and fixed assets including Plant & Machinery/immovable properties situated at Bahadurgarh & Moradabad together with all Buildings and structures thereon, equitable mortgage of land & building at Gurgaon in the name of Ispace Developers Pvt Ltd and exclusive charge on companys Brand milkfood. The Bank has also extended supply line of credit to the extent of Rs. 8 crores against which company has created a charge on its immovable assets.

(ii) Vehicles Loans are secured against hypothecation of vehicles.

(iii) Term Loans payable within one year are Rs. 859 lacs (Previous Year 1016.27 lacs).

5. Unsecured Loans (Schedule 3) include deposits of Rs. 3.13 lacs (Previous year - Rs. 0.70 lacs) matured but not claimed. Deposits for Rs. 2.23 lac have since been renewed.

6. Loans and advances (Schedule 9) includes amount due from Directors of the Company as at 31st March, 2010 Rs. 0.24 lacs (Previous Year Rs. 1.39 lacs). Maximum amount due at any time during the year Rs. 4.07 lacs (Previous year Rs. 3.95 lacs). Current Liabilities (Schedule 10) includes Rs. 0.11 lacs due to directors of the Company (Previous Year Rs. 1.20 lacs). Maximum amount due during the year Rs. 0.11 lacs.

7. Loans and Advances/sales include Rs. 3.20 crores towards sale of Carbon credits under clean development mechanism (CDM) of Kyoto Protocol pending final registration with UNFCCC and actual sales in the International market.

8. No provision for gratuity liability as on 31st March, 2010 amounting to Rs. 184.72 lacs (Previous year Rs. 213.67 lacs) calculated in accordance with actuarial valuation as per AS-15 (Revised), of which Rs. NIL relates to current year (Previous year Rs. 46.03 lacs) has been made in these accounts. Above calculations are based upon the limit of Gratuity of Rs. 3.5 lakhs instead of revised limit of Rs. 10.00 lakhs per employee under the payment of Gratuity Act, 1972.

9. As per information available with the company there is no amount due to any party under Micro, Small and Medium Enterprises Development Act, 2007.

10. Land purchased at Moradabad includes Land valued at Rs. 85.09 lacs (previous year Rs. 85.09 lacs) for which agreement to purchase has been entered and steps are being taken to register the land in the name of the company.

11. Assets at Gurgaon:

(a) Plant and Machinery and furniture and fixtures held for disposal have been depreciated at the rates prescribed under Schedule XIV of the Companies Act. The aggregate written down value of such assets is Rs. 26.44 lacs (Previous year Rs. 31.78 lacs).

(b) A sum of Rs. 4.00 lacs has been charged to Profit and Loss Account on account of reduction in estimated realizable value in respect of general stores of Rs. 40.79 lacs (previous year Rs. 44.79 lacs).

12. The Company had invested Rs. 425 lacs in the preference share capital of M/s Grand Regency Hospitality Pvt Ltd. The investee company has stopped the business as the lease of the premises occupied by it could not be renewed. The investee company is finalizing new lease and other options to carry on the business. Considering the estimated fair value of the brand of the investee company and other net realizable value of the assets, the company is of the view that no provision is required in this year as the dimunition in the value of investment due to suspension of business by the investee company is temporary in nature.

13. (i) Stocks on consignment of Rs. 1.08 crores remains unconfirmed at the year end.

(ii) Miscellaneous receipts includes Rs. 17.70 lacs representing differential amount on account of revision of rates of sales.

14. In conformity with Accounting Standard AS-28 issued by the ICAI, the total carrying amount of assets including intangible assets is Rs. 4027 lacs of Casein Plant. The Company in the year 2008-09 had projected the future cash inflow of 4 years from the said plant and calculated the present value @12% of Rs. 5646 lacs. Company has made sales of Rs. 6.77 crores during the financial year 2009-10 against the projected sales of Rs. 35.17 crores. Company has reprojected the future cash flow of 10 years based upon the current and likely economic scenario and has recalculated the present value @ 12% of Rs. 4844 lacs against the carrying amount of Rs. 4027 lacs. Therefore in the opinion of Management there is no impairement of assets within the meaning of AS-28.

15. Current Liabilities includes Rs. 9.00 crores received from a Company as interest free deposit for short term purposes.

16. Loans & Advances include Rs. 8.75 lacs recoverable on account of Sales Tax of earlier years which are outstanding from earlier years: -

17. Deferred Tax

As per Accounting Standard (AS-22), "Accounting for Taxes on Income" issued by the ICAI, Deferred Tax Asset (Net) for the year has been accounted for at Rs. 121.42 lacs as income (Previous Year Rs. 223.91 Lacs as income) in the Profit & Loss Account.

Deferred Tax Liability (Net) as at 31st March 2010 is net of deferred tax asset in respect of unabsorbed depreciation of Rs. 2620.47 lacs (Previous Year Rs. 1844.01 lacs). Deferred Tax Asset has been recognized in cases where the company has been allowed relief in first appeal in respect of addition/disallowances made in assessment proceedings of Income Tax.

18. Related Party Disclosures

In accordance with the requirements of Accounting Standard 18 on the Related Party Disclosures, the transactions and Related Parties with whom transactions have taken place during the year are as follows:

(A) Related parties and transactions with them as identified by the management are given below:

List of related parties with whom transactions have taken place.

(a) Enterprises over which Major shareholders, Key Management Personnel and their relatives have significant influence-

- Jagatjit Industries Ltd. (Associate Concern)

- Ispace Developers Pvt. Ltd. (Wholly owned subsidiary)

(b) Key Management Personnel (Directors) and their relatives Dr. Umesh N. Saxena

Ms. Asha Gadi

Mr. Suresh Alipuria

Mr. Amarjeet Kapoor

Mr. K.K. Kohli

Mr. Nitin Saxena (son of Dr. Umesh N. Saxena)

Mr. Udit Saxena (son of Dr. Umesh N. Saxena)

26. Previous Years figures have been recast /regrouped where ever necessary in order to conform to the current years presentation.