Notes to Accounts of Morarka Finance Ltd.

Mar 31, 2025

2.7 Provisions and contingences

The Company recognises a provision when there is a present obligation 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 of the
amount of the obligation can be made. The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation.

In cases where the available information indicates that the loss on the contingency is reasonably possible but the amount
of loss cannot be reasonably estimated, a disclosure is made in the financial statements.

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

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
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 may arise from past events but probably will not require an outflow of
resources to settle the obligation.

When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resource is remote,
no provision or disclosure is made.

Contingent assets are neither recognised nor disclosed in the financial statements

2.8 Leases

Effective from 1^st April 2019, the company has adopted IND AS 116 - Lease and applied to lease contract existing on 1^st
April 2019 with Dwarikesh Sugar Industries Limited (DSIL) (Lessee).

As per requirement of IND AS 116, The Company (lessor) has recognised lease payment received from DSIL as an operating
lease on a straight-line-basis.

2.9 Goods and service tax paid on acquisition of assets or on incurring expenses

Expenses and assets are recognised net of the goods and services tax paid, except when the tax incurred on a purchase
of assets or services is not recoverable from the tax authority, in which case, the tax paid is recognised as part of the cost
of acquisition of the asset or as part of the expense item, as applicable.

The net amount of tax recoverable from, or payable to, the tax authority is included as part of receivables or payables,
respectively, in the balance sheet

2.10 Income tax

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Income-Tax Act, 1961 enacted in India. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively enacted, at the reporting date

A. Current tax

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax
Act, 1961 in respect of taxable income for the year and any adjustment to the tax payable or receivable in respect of
previous years.

B. Deferred tax

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

Deferred tax liabilities are recognised for all taxable temporary differences, except:

• Where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction that
is not a business combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit and loss.

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 utilised, except:

• When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit and loss.

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 reassessed 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 and loss is recognised outside profit and 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 tax
authority

2.11 Earning per share

The Company reports basic and diluted earnings per equity share. Basic earnings per equity share have been computed
by dividing net profit / loss attributable to the equity shareholders for the year by the weighted average number of equity
shares outstanding during the year.

Diluted earnings per equity share have been computed by dividing the net profit attributable to the equity shareholders
after giving impact of dilutive potential equity shares for the year by the weighted average number of equity shares and
dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive

2.12 Statement of cashflow

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income
or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing
activities of the Company are segregated.

3. Critical accounting estimates and judgements

In the process of applying the Company''s accounting policies, management has made the following estimates and
judgements, which have a material impact on the carrying amounts of assets and liabilities at each balance sheet date.

Fair value of financial instruments

Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes. Fair value is
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date regardless of whether that price is directly observable or estimated using another
valuation technique.

Fair value measurements under Ind-AS are categorised into Level 1,2, or 3 based on the degree to which the inputs to the
fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety,
which are described as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at
measurement date

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or
indirectly; and

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) that the
Company can access at measurement date

# The Company had participated in buyback of shares offered by Dwarikesh Sugar Industries Limited through open
market route/tender offer which was available to all eligible shareholders on identical terms including any promoter,
and it was done in accordance with the provisions of Section 68 of the Companies Act, 2013 and rules made
thereunder and as per approvals by Securities and Exchange Board of India (SEBI).

Accordingly, the buyback transactions with promoters does not constitute related party transactions and does not require
any approvals under Regulation 188 of the Companies Act, 2013 and Regulation 23 of Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and amendments thereof.

During the year, the Company received proceeds from Buyback of equity shares from Dwarikesh Sugar Industries
Limited. Since there is transfer of resources between related parties, the proceeds received have been disclosed as
Related Party Transaction for transparency purpose in accordance with IND AS 24

26 Other Statutory Information

(i) The Company does not own any benami property and no proceeding(s) has been initiated against the Company for
holding any benami property.

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

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

(iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(v) The Company has not given advance or loan 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

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

(a) directly or indirectly lend or invest in other person(s) or entity(ies) 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.

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

(viii) The Company is not declared willful defaulter by any banks or any other financial institution at any time during the
financial year.

(ix) All immovable properties are held in the name of the Company.

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Mar 31, 2024

2.7 Provisions and contingences

The Company recognises a provision when there is a present obligation 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 of the amount of the obligation can be made. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

In cases where the available information indicates that the loss on the contingency is reasonably possible but the amount of loss cannot be reasonably estimated, a disclosure is made in the financial statements.

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

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which 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 may arise from past events but probably will not require an outflow of resources to settle the obligation.

When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resource is remote, no provision or disclosure is made.

Contingent assets are neither recognised nor disclosed in the financial statements

2.8 Leases

Effective from 1^st April 2019, the company has adopted IND AS 116 - Lease and applied to lease contract existing on 1^st April 2019 with Dwarikesh Sugar Industries Limited (DSIL) (Lessee).

As per requirement of IND AS 116, The Company (lessor) has recognised lease payment received from DSIL as an operating lease on a straight-line-basis.

2.9 Goods and service tax paid on acquisition of assets or on incurring expenses

Expenses and assets are recognised net of the goods and services tax paid, except when the tax incurred on a purchase of assets or services is not recoverable from the tax authority, in which case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable.

The net amount of tax recoverable from, or payable to, the tax authority is included as part of receivables or payables, respectively, in the balance sheet

2.10 Income tax

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-Tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date

A. Current tax

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 in respect of taxable income for the year and any adjustment to the tax payable or receivable in respect of previous years.

B. Deferred tax

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

Deferred tax liabilities are recognised for all taxable temporary differences, except:

• Where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit and loss.

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 utilised, except:

• When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit and loss.

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 reassessed 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 and loss is recognised outside profit and 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 tax authority.

2.11 Earning per share

The Company reports basic and diluted earnings per equity share. Basic earnings per equity share have been computed by dividing net profit / loss attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

Diluted earnings per equity share have been computed by dividing the net profit attributable to the equity shareholders after giving impact of dilutive potential equity shares for the year by the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive

2.12 Statement of cashflow

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

2.13 Recent pronouncement

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1^st, 2022, as below:

Ind AS 16 - Proceed before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

Ind AS 37 - Onerous contract - Costs of fulfilling a contract

The amendments specify that that the ''cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 - Annual improvement to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ''10 percent'' test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements

3. Critical accounting estimates and judgements

In the process of applying the Company''s accounting policies, management has made the following estimates and judgements, which have a significant impact on the carrying amounts of assets and liabilities at each balance sheet date.

Fair value of financial instruments

Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date regardless of whether that price is directly observable or estimated using another valuation technique.

Fair value measurements under Ind-AS are categorised into Level 1,2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at measurement date

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) that the Company can access at measurement date

26 Other Statutory Information

(i) The Company does not own any benami property and no proceeding(s) has been initiated against the Company for holding any benami property.

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

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

period.

(iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(v) The Company has not given advance or loan 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

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

(a) directly or indirectly lend or invest in other person(s) or entity(ies) 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.

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

(viii) The Company is not declared willful defaulter by any banks or any other financial institution at any time during the financial year.

(ix) All immovable properties are held in the name of the Company.

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Mar 31, 2016

Note: Company is having investment in associate companies namely ‘Dwarikesh Informatics Limited’ and ‘Faridpur Sugars Limited’ and the accounts of these companies are required to be consolidated as per the section 129 (3) of the Companies Act, 2013. In view of the intention of the management to dispose the same in part or in full in the near future, the investment in these associates companies is considered temporary, and therefore, the consolidation of accounts with above mentioned companies is not required as enunciated in Accounting Standard AS-21 ‘Consolidated Financial Statement’ specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Company (Accounts) Rules, 2014.

20 Related party disclosures as required by Accounting Standard AS-18 for the year ended 31st March, 2016

a) Names of the related parties and description of relationship:

i) Enterprises over which key management Associate companies personnel are able to exercise significant influence -Dwarikesh Trading Company Limited

-Dwarikesh Informatics Limited -Faridpur Sugars Limited

ii) Key Management Personnel -Shri Pranay G. Morarka CEO And Vice

President

-Shri L.N. Heda CFO

-Shri HemalKumar Shah CS

iii) Relatives of Key Managerial Personnel

Shri Prany G. Morarka -Smt. Smriti G. Morarka ( Mother)

-Ms. Priyanka G. Morarka ( Sister)

-Shri G.R. Morarka (Father)

1. a) Provision for income tax has not been made in these accounts since the Company does not have taxable income.

b) The Company does not have taxable wealth and hence no provision for wealth tax has been made in these accounts.

2. The Board of Directors are of the opinion that with respect to the disclosure of investments in shares and debentures held by the Company for trade as at 31st March, 2016 as required under Companies Act, 2013, in view of the number of scripts bought and sold being large, it is not practicable to disclose the same individually.

3. Pursuant to the Accounting Standard 22 relating to “Accounting for Taxes on Income”, the Company has recognized net deferred Tax Assets to the extent of ''19, 84,184/- for the year. The same has been recognized since the management is virtually certain of realizing the same in due course within the statutory time frame of allow ability of the unabsorbed losses / allowances under the Income Tax Act, 1961, particularly in view of the income arising from financing activities in the subsequent period.

4. Earnings per Share:

In view of Accounting Standard 20 on “Earning per Share” issued by “The Institute of Chartered Accountants of India” and made mandatory w.e.f. 1^st April, 2001, the following are the disclosures in respect of the calculation of earnings per share for the year ended 31^st March, 2016.

5. Related Party Disclosures:

A. Name of the related party and nature of relationship where control exists

i. Associates & Group companies Dwarikesh Sugar Ind. Limited.

Dwarikesh Trading Company Limited Dwarikesh Informatics Limited Faridpur Sugars Limited.

ii. Key Management Personnel:

Name Designation

Shir HemalKumar Shah CS

Shri Pranay G. Morarka CEO and President

Shri L.N. Heda CFO

B. Transactions with related parties as per the books of account

Related parties have been identified by the management. This has been relied upon by the auditors.

C. No amounts have been written off / back in respect of the aforesaid related parties.

6. There are no Small Scale and Ancillary Industrial Undertakings to which the Company owes any sum for a period exceeding thirty days.

7. There are no amounts due and outstanding to be transferred to Investor Education & Protection Fund as on 31^st March, 2016

8. Notes to Balance Sheet of a Non-Banking Financial Company as required in terms of para 13 of Non-Banking Financial (Non-deposit accepting or holding) companies prudential norms (Reserve Bank) Directors, 2007 issued by Reserve Bank of India. is annexed.

Notes:

(1) For the purpose of preparation of consolidation financial statements, the group has considered unaudited financial statement.

(2) Significant influence has been determined as per Accounting Standard 23 “Accounting for Investments in Associates in Consolidated Financial Statements” specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(3) Share of audited Net worth based on share holding as on 31 March, 2016 of 46 % is Rs,18,83,627

(4) Share of audited Net worth based on share holding as on 31 March, 2016 of 20 % is Rs, 1,03,600

Notes:

1. As defined in Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in column (5) above.

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Mar 31, 2013

1 Related party disclosures as required by Accounting Standard AS-18 for the year ended 31st March, 2013 a) Names of the related parties and description of relationship:

i) Enterprises over which key management personnel - Associate companies are able to exercise significant influence - Dwarikesh Trading Company Limited

- Dwarikesh Informatics Limited

- Dwarikesh Agriculture Research Institute

- Faridpur Sugars Limited

ii) Key Management Personnel - Shri Gautam .R. Morarka Chairman

- Shri B.J.Maheshwari Director

- Miss Priyanka Gautam Morarka Director

- Mr. Vijay S. Banka Director

iii) Relatives of Key Managerial Personnel

Shri G.R.Morarka - Smt. Smriti G. Morarka ( Wife)

- Ms. Priyanka G. Morarka ( Daughter)

- Mr. Pranay G. Morarka (Son)

2. a) Provision for income tax has not been made in these accounts since the Company does not have taxable income.

b) The Company does not have taxable wealth and hence no provision for wealth tax has been made inthese accounts.

3. The Board of Directors are of the opinion that with respect to the disclosure of investments in shares anddebentures held by the Company for trade as at 31st March, 2013 as required by Part I of Schedule VI tothe Companies Act, 1956, in view of the number of scripts bought and sold being large, it is not practicable to disclose the same individually.

4. Pursuant to the Accounting Standard 22 relating to "Accounting for Taxes on Income", the Company hasrecognized net Deferred Tax Assets to the extent of Rs.2,125,196/- for the year. The same has beenrecognized since the management is virtually certain of realizing the same in due course within thestatutory time frame of allowability of the unabsorbed losses / allowances under the Income Tax Act,1961, particularly in view of the income arising from financing activities in the subsequent period.

5. Earning per Share:

In view of Accounting Standard 20 on "Earning per Share" issued by "The Institute of Chartered Accountants of India" and made mandatory w.e.f. 1st April, 2001, the following are the disclosures in respect of the calculation of earnings per share for the year ended 31st March, 2013.

6. Related Party Disclosures:

A. Name of the related party and nature of relationship where control exists

i. Associates Dwarikesh Sugar Industries Limited

Dwarikesh Trading Company Limited Dwarikesh Informatics Limited Faridpur Sugars Limited. ii. Key Management Personnel:

Name Designation

Shri G. R. Morarka Chairman

Miss Priyanka G. Morarka Director

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Mar 31, 2012

1. SHARE CAPITAL

A. Reconciliation of number of shares outstanding at the beginning and at the end of the reporting period:

There was no change in the paid up capital (Equity) of the company during the Financial Years 2010-2011 & 2011-2012

B. Rights & restrictions attached to various shares are as under:

Equity Shares:- The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed if any by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

2. Related party disclosures as required by Accounting Standard AS-18 for the year ended 31st March, 2012

a) Names of the related parties and description of relationship:

i) Enterprises over which key management personnel - Dwarikesh Sugar Ind. Ltd. are able to exercise significant influence - Dwarikesh Trading Company Limited (Associate Companies) - Dwarikesh Informatics Limited

- Dwarikesh Agriculture Research Institute

- Faridpur Sugars Limited

ii) Key Management Personnel - Shri Gautam .R. Morarka Chairman

- Shri B.J.Maheshwari Director

- Miss Priyanka Gautam Morarka Director

- Mr. Vijay S. Banka Director

iii) Relatives of Key Managerial Personnel

Shri G.R.Morarka - Smt. Smriti G. Morarka ( Wife)

- Ms. Priyanka G. Morarka ( Daughter) - Mr. Pranay G. Morarka (Son)

3. a) Provision for income tax has not been made in these accounts since the Company does not have taxable income.

b) The Company does not have taxable wealth and hence no provision for wealth tax has been made in these accounts.

4. The Board of Directors are of the opinion that with respect to the disclosure of investments in shares and debentures held by the Company for trade as at 31st March, 2012 as required by Part I of Schedule VI to the Companies Act, 1956, in view of the number of scripts bought and sold being large, it is not practicable to disclose the same individually.

5. Pursuant to the Accounting Standard 22 relating to "Accounting for Taxes on Income", the Company has recognized net Deferred Tax Assets to the extent of Rs. 1,741,202/- for the year. The same has been recognized since the management is virtually certain of realizing the same in due course within the statutory time frame of allow-ability of the unabsorbed losses/allowances under the Income Ta x Act,1961, particularly in view of the income arising from financing activities in the subsequent period.

6. Earning per Share:

In view of Accounting Standard 20 on "Earning per Share" issued by "The Institute of Chartered Accountants of India" and made mandatory w.e.f. 1st April, 2001, the following are the disclosures in respect of the calculation of earnings per share for the year ended 31st March, 2012.

7. Related Party Disclosures:

A. Name of the related party and nature of relationship where control exists

i. Associates Dwarikesh Sugar Industries Limited

Dwarikesh Trading Company Limited

Dwarikesh Informatics Limited

Faridpur Sugars Limited.

ii. Key Management Personnel:

Name Designation

Shri G. R. Morarka Chairman

Miss Priyanka G. Morarka Director

B. Transactions with related parties as per the books of account

8. Maximum amount Receivable at any time

Related parties have been identified by the management. This has been relied upon by the auditors.

- No amounts have been written off/back in respect of the aforesaid related parties.

- Additional information pursuant to the provision of Part II of the Schedule VI to the Companies Act, 1956 is not applicable to the Company for the year.

- There are no Small Scale and Ancillary Industrial Undertakings to which the Company owes any sum for a period exceeding thirty days.

- There are no amounts due and outstanding to be transferred to Investor Education & Protection Fund as on 31st March, 2012

- Schedule to Balance Sheet of a Non-Banking Financial Company as required in terms of paragraph 9 BB of Non Banking Financial Companies prudential norms (Reserve Bank) Directions, 1998 is annexed.

- Figures for the previous year have been regrouped, wherever necessary.

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Mar 31, 2011

1. a) Provision for income tax has not been made in these accounts since the Company does not have taxable income. b) The Company does not have taxable wealth and hence no provision for wealth tax has been made in these accounts.

2. The Board of Directors are of the opinion that with respect to the disclosure of investments in shares and debentures held by the Company for trade as at 31st March, 2011 as required by Part I of Schedule VI tothe Companies Act, 1956, in view of the number of scripts bought and sold being large, it is not practicable to disclose the same individually.

3. Pursuant to the Accounting Standard 22 relating to "Accounting for Taxes on Income", the Company has recognized net Deferred Tax Assets to the extent of Rs.1,277,059/- for the year. The same has been recognized since the management is virtually certain of realizing the same in due course within the statutory time frame of allowability of the unabsorbed losses / allowances under the Income Ta x Act, 1961, particularly in view of the income arising from financing activities in the subsequent period.

4. Contingent Liabilities in respect of :

PARTICULARS Amount [Rs. In Crores]

2010-2011 2009-2010

a) In respect of show cause notice from SEBI under Regulation 8(3) of SEBI take over code regulation 0.0175 0.0175

5. Related Party Disclosures:

A. Name of the related party and nature of relationship where control exists

i. Associates Dwarikesh Sugar Industries Limited

Dwarikesh Trading Company Limited

Dwarikesh Informatics Limited

Faridpur Sugars Limited.

ii. Key Management Personnel:

Name Designation

Shri G. R. Morarka Chairman

Miss Priyanka G. Director Morarka

C. No amounts have been written off / back in respect of the aforesaid related parties.

6. Additional information pursuant to the provision of Part II of the Schedule VI to the Companies Act, 1956 is not applicable to the Company for the year.

7. There are no Small Scale and Ancillary Industrial Undertakings to which the Company owes any sum for a period exceeding thirty days.

8. There are no amounts due and outstanding to be transferred to Investor Education & Protection Fund as on 31st March, 2011

9. Schedule to Balance Sheet of a Non-Banking Financial Company as required in terms of paragraph 9 BB of Non-Banking Financial Companies prudential norms (Reserve Bank) Directions, 1998 is annexed.

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Mar 31, 2010

1. a) Provision for income tax has not been made in these accounts since the Company does not have taxable income.

b) The Company does not have taxable wealth and hence no provision for wealth tax has been made in these accounts.

2. The Board of Directors are of the opinion that with respect to the disclosure of investments in shares and debentures held by the Company for trade as at 31st March, 2010 as required by Part I of Schedule VI to the Companies Act, 1956, in view of the number of scripts bought and sold being large, it is not practicable to disclose the same individually.

3. Pursuant to the Accounting Standard 22 relating to "Accounting for Taxes on Income", the Company has recognized net Deferred Tax Assets to the extent of Rs.11,19,687/- for the year. The same has been recognized since the management is virtually certain of realizing the same in due course within the statutory time frame of allowability of the unabsorbed losses / allowances under the Income Tax Act, 1961, particularly in view of the income arising from fnancing activities in the subsequent period.

4. Related party Disclosures:

A. Name of the related party and nature of relationship where control exists

i. Associates Dwarikesh Sugar Industries limited

Dwarikesh Trading Company limited

Dwarikesh Informatics limited

Faridpur Sugars limited.

ii. Key Management Personnel:

Name Designation

Shri G. R. Morarka Chairman

Miss Priyanka G. Morarka Director

C. No amounts have been written off / back in respect of the aforesaid related parties.

5. Additional information pursuant to the provision of Part II of the Schedule VI to the Companies Act, 1956 is not applicable to the Company for the year.

6. There are no Small Scale and Ancillary Industrial Undertakings to which the Company owes any sum for a period exceeding thirty days.

7. There are no amounts due and outstanding to be transferred to Investor Education & Protection Fund as on 31st March, 2010

8. Schedule to Balance Sheet of a Non-Banking Financial Company as required in terms of paragraph 9 BB of Non- Banking Financial Companies prudential norms (Reserve Bank) Directions, 1998 is annexed.

V Generic names of Three principal products / Services of Company (as per monetary terms)

Item Code No. NIl

product Description : Financial / leasing / Investments/Advisory Services etc.

9. Figures for the previous year have been regrouped, wherever necessary.