Notes to Accounts of N K Industries Ltd.

Mar 31, 2024

(m) Provision for liabilities and charges, Contingent liabilities and contingent assets

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with the applicable Ind AS.

Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the statement of profit and loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

Contingent assets are not recognized but disclosed in the financial statements when an inflow of economic benefits is probable.

Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts. Contingent Liabilities are disclosed in case of a present obligation from past events (a) when it is not probable that an outflow of resources will be required to settle the obligation; (b) when no reliable estimate is possible; (c) unless the probability of outflow of resources is remote.

(n) Earnings per share

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 for the effects of all dilutive potential equity shares.

(o) Investments

Investment in Subsidiary Companies are valued at Original Cost. Investment in NSC and investments in unquoted equity shares are stated at cost. Investment in quoted equity shares are stated at Fair Value through statement of Profit and loss account.

(p) Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 "Statement of Cash Flows", whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

(q) Related Party Transactions:

A related party is a person or entity that is related to the reporting entity preparing its financial statements

(a) A person or a close member of that person''s family is related to a reporting entity if that person; has control or joint control of the reporting entity; (ii) has significant influence over the reporting entity; or (iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

(b) An entity is related to a reporting entity if any of the following conditions applies; (i) the entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others); (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member); (iii) Both entities are joint ventures of the same third party; (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity; (vi) The entity is controlled or jointly controlled by a person identified in (a); (vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); (viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity.

A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.

Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.

Compensation includes all employee benefits i.e. all forms of consideration paid, payable or provided by the entity, or on behalf of the entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the entity in respect of the entity.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.

Disclosure of related party transactions as required by the accounting standard is furnished in the Notes on Financial Statements.

(r) Current and Non-Current Classification:

The Normal Operating Cycle for the Company has been assumed to be of twelve months for classification of its various assets and liabilities into "Current" and "Non-Current".

The Company presents assets and liabilities in the balance sheet based on current and non-current classification.

An asset is current when it is (a) expected to be realised or intended to be sold or consumed in normal operating cycle; (b) held primarily for the purpose of trading; (c) expected to be realised within twelve months after the reporting period; (d) Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.

A liability is current when (a) it is expected to be settled in normal operating cycle; (b) it is held primarily for the purpose of trading; (c) it is due to be discharged within twelve months after the reporting period; (d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.

(s) Critical Accounting Judgments, Assumptions and Key Sources of Estimation Uncertainty

The preparation of the Standalone Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities at the date of the financial statements. Estimates and assumptions are continuously evaluated and are based on management''s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

a) Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the standalone financial statements:

(i) Determination of Functional Currency

Currency of the primary economic environment in which the Company operates ("the functional currency") is Indian Rupee (?) in which the company primarily generates and expends cash. Accordingly, the Management has assessed its functional currency to be Indian Rupee ('').-i.e. Rupees in lakhs

(ii) Evaluation of Indicators for Impairment of Property, Plant and Equipment

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline asset''s value, significant changes in the technological, market, economic or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage of an asset, poor economic performance of the asset etc.) which could result in significant change in recoverable amount of the Property, Plant and Equipment.

b) Assumptions and Estimation Uncertainties

Information about estimates and assumptions that have the significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may differ from these estimates.

(i) Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

The Company has '' 2307.28 lakhs (P.Y '' 2347.71 lakhs) of tax losses carried forward on which deferred tax asset is created, based on probability that future profits will be available against which the deductible temporary difference can be realized.

(ii) Useful lives of Property, Plant and Equipment/Intangible Assets

Property, Plant and Equipment/ Intangible Assets are depreciated/amortised over their estimated useful lives, after taking into account estimated residual value. The useful lives and residual values are based on the Company''s historical experience with similar assets and taking into account anticipated technological changes or commercial obsolescence. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation/amortisation to be recorded during any reporting period. The depreciation/amortisation for future periods is revised, if there are significant changes from previous estimates and accordingly, the unamortized/depreciable amount is charged over the remaining useful life of the assets.

(iii) Contingent Liabilities

In the normal course of business, Contingent Liabilities may arise from litigation and other claims against the Group. Potential liabilities that are possible but not probable of crystallizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the Notes but are not recognized. Potential liabilities that are remote are neither recognized nor disclosed as contingent liability. The management decides whether the matters need to be classified as ''remote'', ''possible'' or ''probable'' based on expert advice, past judgements, experiences etc.

(iv) Evaluation of Indicators for Impairment of Property, Plant and Equipment

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline in asset''s value, economic or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage of an asset, poor economic performance of the idle assets etc.) which could result in significant change in recoverable amount of the Property, Plant and Equipment and such assessment is based on estimates, future plans as envisaged by the Company.

(v) Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

Note : Purpose of Reserves

a) General Reserve : Under the erstwhile Indian Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act, 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn though the Company may transfer such percentage of its profits for the financial year as it may consider appropriate. Declaration of dividend out of such reserve shall not be made except in accordance with rules prescribed in this behalf under the Act.

b) Security Premium : Securities premium is used to record premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

c) Capital Reserve : The Company recognises profit and loss on purchase, sale, issue or cancellation of the Company''s own equity instruments to capital reserve.

d) Revaluation Reserve : Amount of reserve created by company when fair market value of assets increase as compared to book value then the difference of profit is transferred to revaluation reserve and if value of any assets decreases then this reserve is used by company for balancing the losses.

e) Retained Earnings : Retained Earnings are the profits and gains that the Company has earned till date, less any transfer to general reserve, dividends or other distributions paid to shareholders.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis the present value of the projected benefit obligation has been calculated using the unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognized in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

(F) RISK ANALYSIS

Gratuity is a defined benefit plan and company is exposed to the Following Risks:

Interest Rate risk

A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision.

Salary Risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Asset Liability Matching Risk

The plan faces the ALM risk as to the matching cash flow. Company has to manage pay-out based on pay as you go basis from own funds.

Mortality Risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

The above data is taken on the basis of actuariy report of K.A. Pandit Consultants and Actuaries.

B Capital Commitments

Estimated amount of contracts remaining to be executed on capital account [net of advances] and not provided for '' NIL (P.Y '' NIL).

Note:

a) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/ authorities.

b) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

29 The Previous year''s figures have been regrouped reworked, rearranged and reclassified wherever necessary to make them comparable with current year figures.

30 A Search & Seizure action U/S 132 of the Income Tax Act took place on 24.2.99. The Income Tax department had raised demand of '' 3312 lakhs vide the block assessment Order dt. 30.4.2001. In case of the company, the Hon''ble Income Tax Appellate Tribunal (ITAT), Ahmedabad has subsequently given partial relief to the extent of '' 2884 lakhs. The company had preferred an appeal before the Hon''ble High Court of Gujarat against the order of Hon''ble ITAT, Ahmedabad. The Hon''ble Gujarat High Court vide its order dated 20th June,2016 had given partial relief on some of the grounds and had also dismissed some of the grounds of the company. Against the grounds dismissed by Hon''ble High Court of Gujarat, the company had further preferred an appeal before Hon''ble Supreme Court of India, and the Hon''ble Supreme Court of India vide order dated 16th January,2017 had dismissed the appeal of the Company. The Company had already provided an amount of '' 288 lakh against the grounds dismissed by Hon''ble ITAT, Ahmedabad during F.Y 2002-03 as well as '' 127 lakh was provided in the books of accounts for the Assessment year in question for the interest payable up to 31-03-2005 during F.Y 2004-05. However, in view of the management and on the basis of the Judgment of the Hon''ble Gujarat High Court, the amount provided/paid by the company towards total demand shall result in refund to the company. Pending effect of the various orders of adjudicating authorities by the Income Tax Department, the Company is yet to provide final entries in its books of accounts even during the year under review.

31 a. No provision is made during the year for interest receivable on various advances amounting to '' 3001.21 Lakhs (P.Y?

3001.21 Lakhs ) as the same are considered doubtful.

b. The Company has obtained a legal opinion from an expert and in view of the said opinion as the money has been given as loans and advances prior to the commencement of Companies Act, 2013,the provisions of Section 186(7) of the Companies Act, 2013 is not applicable. Further, based on the said legal opinion,the Company has not provided any interest on the outstanding loans and advances of NK Oil Mills Pvt Ltd up to financial year 2017. This being a technical matter, Auditors have relied upon the opinion of the expert.

32 The company,s operation falls under single segment namely "Refined Caster oil and its derivatives" and hence segment information as required by INDAS 108 "Operating Segment is not applicable. All assets are located in the company''s country of domicile.Company''s significant revenues is derived from major 1 entitiy. The total revenue from such entities amounted to '' 240.00 lakhs ( P.Y '' 240 Lakhs).

33 The company is having accumulated losses (after taking into account the balance of reserves) of '' 34864.94 lakhs as at 31.03.2024 and the net worth of the company is negative However, as per the business plan and future cash flow projections submitted by the management to us and accepted by us, The Company is making sincere efforts for the revival of the Business & the management is confident to recover the losses through improved profitability in foreseeable future. Therefore, no provision for the impairment has been made and accounts for the year have been prepared on "going concern basis." Further the above projections also contains business plan/ projected cash flow prepared by the management and accepted by us with respect to the subsidiaries company i.e. Banpal Oil Chem Private limited and NK OIL Mills Private limited, (Except Tirupati Retail India Pvt ltd where proper provision of Impairment has been done ) the management is confident to also revive the operations of the loss making subsidiary companies, hence no provision for impairment in the fair value of the investment made in the said subsidiary companies has been made in the books of accounts.

34 In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated, if realized, in the ordinary course of the business. The provisions for depreciation and all known liabilities are adequate. There are no contingent liabilities other than stated.

35 As per a guidance note to schedule II of the Companies Act 2013, Company has not transferred the amount equivalent to the additional depreciation on account of upward revaluation to general reserve, the whole amount will be transferred at the time of sale or disposal of the assets.

36 The Company had entered into financial arrangement with National Spot Exchange Ltd (NSEL) through trading and Clearing Member, N.K. Proteins Private Ltd (erstwhile N. K. Proteins Limited (NKPL) (Group Company) by way of purchase and sales of various goods up to financial year 2012-13. The trade payables and trade receivables arising out of the said transactions through National Spot Exchange Limited (NSEL) from the concerns other than the group concerns are subject to confirmations by the respective parties/NSEL and reconciliations/adjustments, if any. Further, NSEL has suspended the trading on 31.07.2013, as per the directions issued by the Government of India, Ministry of Consumer Affairs. NSEL has initiated recovery proceedings against the group company NKPL and also against the company by filing a civil suit in the Hon''ble High Court of Mumbai for an alleged amount of around ''937 crores plus interest .and the said proceedings are pending as on date. Further, the Home department, Government of Maharashtra has issued a notification under the Maharashtra Protection of Interest of Depositors (in financial establishments)-Act, 1999 (MPID Act) attaching the Land, Building & Plant & Machinery of the company located at Kadi, Gujarat. The company had challenged the notification

issued by Home department of Maharashtra before Hon''ble Gujarat High Court which was disposed off vides its order dated 29th March 2017. The company preferred a Special Leave Petition before the Hon''ble Supreme Court of India against the order of Hon''ble Gujarat High Court and The Hon''ble Supreme Court of India had disposed off the Special Leave Petition on 17th April, 2017 with a observation to file an application before Hon''ble Bombay High Court, Mumbai, and as informed by the management, the company has filed petition before the Hon''ble Bombay High Court in June 2017 which is pending .Besides the above, the company has also filed its objections against the attachment notification before the Designated Special MPID Court, Mumbai.

37 The Directorate of Enforcement, Government of India has initiated proceedings against the company under section 5(1) of the prevention of Money Laundering Act, 2002, along with group company NKPL, and by virtue of the provisional attachment order dated 10/03/2015, attached the assets of the company comprising of Land, building, plant and machinery situated at Survey Nos.719, 720, 721, 732/1, 732/2, 733, 741, 743, 744, 745, Kadi Thol Road, Village Kadi Kasba, taluka- Kadi, District Mehsana-382715 Gujarat. As explained to us, The Company has preferred an appeal before the Hon''ble Appellate Tribunal under the Prevention of Money laundering Act, 2002 against the order of Adjudicating Authority. Further,the Director of Enforcement (hereinafter referred to as ED), Government of India had initiated proceedings of search/seizure on 30.05.2018 on the group company NKPL, the promoters of the company late Shri Nilesh Patel and Shri Nimish Patel, one of the family member as well as on the company and thereafter on 29.06.2018, the ED, Government of India, had preferred an application u/s 17(4) of the Prevention of Money Laundering Act, 2002 before the Adjudicating Authority, New Delhi, vide it''s Application No. OA/236 of 2018 against the company as well as group company NKPL and the promoters for retention of the seized properties and for continuation of order of freezing the properties, till finalization of the proceedings, of the properties mentioned in the application u/s 17(4) of the PMLA Act, 2002. The company along with Group Company and promoters challenged the show cause notice issued by the adjudicating authority New Delhi, before the Hon''ble High Court of Delhi and the Hon''ble High Court has set aside the said show cause notice. The Director of Enforcement has attached assets of the company, group company NKPL and the promoters of the company by issuing a fresh show cause notice dated 30/08/2018 and the company has filed an appeal before PMLA Appellate Tribunal, Delhi.

38 The Government of Maharashtra, (at the instance of Economic wing offence Mumbai), has filed supplementary Charge sheet dated 25th December, 2018 under the various sections of IPC AND MPID Act. against the company and its chairman Shri Nimish Patel. Further MPID Court on the basis of above supplementary charge sheet has issued summons dated 19th March,2019 against the company asking them to remain present on 26th April 2019. The Company has complied with the said summons and the matter was adjourned to 7th November,2019 and further adjourned to various dates and now the matter is further adjourned 18th June 2024. Thus, in view of the fact that the said criminal proceedings which have been initiated, inter alia, against the company and its Chairman Shri Nimish Patel are pending.

39 The Income Tax Department had carried out survey u/s 133 of the Income tax Act, 1961(the IT Act) on the company along with other group companies during FY 2013-14 and had ordered a special audit of the books of the company u/s 142(2A) of the IT Act, 1961, for AY 2011-12 & A.Y 12-13. The department had raised a demand of '' 86.00 lakhs A.Y2014-15 on the company for the aforesaid assessment years and the said demand has been disputed by the company and the company has initiated appellate proceedings before appropriate authorities. The said amount has been shown as contingent liability in the notes forming part of standalone financial statements. Further,Income tax department has passed an attachment order on 22.04.2015 & 14.08.2015 by which it has attached properties of the company in pursuant to a demand, the details of the properties attached which are in the name of company is as under:

1. 803, Manas Complex, Opp Star Bazaar, Nr Jodhpur Cross road, Satellite, Ahmedabad 380015.

2. 603 Manas Complex, Opp Star Bazaar, Nr Jodhpur Cross road, Satellite, Ahmedabad 380015.

3. Land, situated at Survey Nos.719, 720, 721, 732/1, 732/2, 733, 741, 743, 744, 745, kadi Thol Road, Village Kadi Kasba, Taluka- Kadi, District Mehsana-382715.

4. Factory Building Situated at Survey No 745, Kadi Thol Road, Village Kadi Kasba, Taluka- Kadi, District Mehsana-382715.

40 The company has received a notice from Income tax department for the attachment of its registered office at 7th Floor, Popular House, opp Sales India, Ashram Road, Ahmedabad 380009 with respect to demand raised by them as detailed in note 39 of the financial statements.

41 Sales Tax Department has completed the assessment proceedings for various assessment years and raised demand of '' 3314.22 lakhs (net of recovery) for the earlier financial years. The company has not made any provision for the above demand raised by the sales tax authority in its books of accounts as in view of the Management, the said demand shall not withstand before the Appellate Authorities and the company has already preferred an appeal before the appellate authority which is still pending.

42 As per the information obtained from the website of the Ministry of Corporate Affairs (MCA), a suit has been filed against the company and its officers u/s 383A(1A), 372A(9), 58A(6)(A)(I) of the Companies Act, 1956 for the year 2016. As informed by the management, the company is having basic information about such suit filed as reflected on the website of the MCA. However, the company does not have any communication of such proceedings against the company and its officers.

(c) Performance obligations

The performance obligation is satisfied upon delivery of the finished goods and payment is generally due within 1 to 3 months from delivery. The performance obligation to deliver the finished goods is started after receiving of sales order. The customer can pay the transaction price upon delivery of the finished goods within the credit period, as mentioned in the contract with respective customer.

49 The financial statements were authorized for issue by the directors on 2^nd May, 2024.

50 The Company NKIL has entered into an Dry Lease agreement to give its facility/factory located at Kadi, Gujarat on lease to its group company namely N.K. Proteins Pvt ltd (NKPPL) for crushing castor seeds. As per the said agreement entered into between both the parties all expenses for running and maintaining the factory including existing plant and machinery shall be the responsibility of NKPPL. This is purely a temporary commercial decision keeping in view the current market scenario and also with a view to restructure/reorganize the business of the company and at a same time it is also worth while that a factory as well as Plant and Machinery shall not remain idle in the process, had it been so it may have huge impact on commercial ecisions which it will be able to take based on running facility. Thus, the company has temporarily given on lease its factory.

(a) Capital Management

The company''s objective when managing capital is to:

- Safeguard its ability to continue as A going concern so that the Company is able to provide maximum return to stakeholders and benefits for other shareholders.

- Maintain an optimal capital structure to reduce the cost of capital.

The company''s board of director''s review the capital structure on regular basis. As part of this review the board considers the cost of capital risk associated with each class of capital requirenments and maintanance of adequate liquidity Disclosures. This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain finanical instruiments.

(ii) Fair Value Measurement

This note provides information about how the Company determines fair values of various financial assets.

Fair Value of financial assets and liabilities that are not measured at fair value (but fair value disclosures are required).

Management considers that the carrying amounts of financial assets and financial liabilities recognized in the financial statements approximate their fair values.

(iii) Financial Risk Management Objectives

While ensuring liquidity is sufficient to meet Company''s operational requirements, the Company''s financial management committee also monitors and manages key financial risks relating to the operations of the Company by analysing exposures by degree and magnitude of risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.

Market Risk

Market risk is the risk of uncertainity arising from possible market price movements and their impact on the future performance of a business. The major components of market risk are commodity price risk.

Liquidity Risk

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due. Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

51 During the earlier year, the management has imparied the invesment of '' 1.00 lakh made in Subsidiary Company Tirupati Retail India Pvt ltd . The impairment has been made as in view of management there is significant doubt about the going concern assumption.

52 Eligibility of Corporate Social Responsibility

Based on the average net profits of the Company after computation of Net Profit as per Section 198 of the Companies Act, 2013 for the preceding three financial years, the Company is not required to spend any amount on CSR activities during the financial year 2023-24.

53 Undisclosed Transactions

As stated & confirmed by the Board of Directors, The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

54 Benami Transactions

As stated & confirmed by the Board of Directors ,The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

55 Loan or Investment to Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

56 Loan or Investment from Ultimate Beneficiaries

(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

57 As stated & Confirmed by the Board of Directors ,The company has not been sanctioned any term loan during the year not there is outstanding term loans as at 31st March 2024.

58 Working Capital

As stated & Confirmed by the board of Directors, the Company has not been sanctioned working capital limits from a bank on the basis of security of the current assets.

59 As stated & confirmed by the board of Directors ,the company has not revalued its Property, Plant and Equipment and intangible assets during the year under review.

60 Willful Defaulter

As stated & Confirmed by the Board of Directors ,The company has not been declerated willful defaulter by the bank during the year under review.

61 Transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The company has not under taken any transactions nor has outstanding balance with the company Struck Off either under section 248 of the Actor under Section 560 of Companies act 1956.

62 Crypto Currency

As stated & Confirmed by the Board of Directors ,The Company has not traded or invested in Crypto Currency or Virtual Currency.

63 Compliance with approved Schemes of Arrangement

The Company has not applied for any scheme of Arrangements under sections 230 to 237 of the Companies Act 2013.

64 The Company has assessed internal and external information upto the date of approval of the audited financial statements while reviewing the recoverability of assets, adequacy of financial resources, Performance of contractual obligations, ability to service the debt and liabilities etc. Based on such assessment, the company expects to fully recover the carrying amounts of the assets and comfortably discharge its debts and obligations. Hence the management does not envisage any material impact on the audited financial statements of the company for the year ended on 31st March 2024.

As per our report of even date attached. for and on behalf of the Board of Directors of N K Industries Limited

for, PANKAJ R. SHAH & ASSOCIATES Nimish K. Patel Hasmukh K. Patel

Chartered Accountants Chairman & Managing Director Whole time Director

Firm''s Registration Number:107361W Din-00240621 Din -06587284

UDIN: 24107414BJZXCF7552

CA Nilesh R Shah Ashwin P. Patel Ms. Jelin Dodiya

Partner Chief Financial Officer Company Secretary

Membership No.107414

Ahmedabad Ahmedabad

May 2, 2024 May 2, 2024

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Mar 31, 2014

1. Terms/rights attached to equity shares

The company has two class of shares i.e. equity shares having a par value of Rs.10 per share and preference shares of Rs.100 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends, if any, in indian rupees. The dividened, if proposed, by the Board of Directors is subject to the approval of the share holders in the ensuing Annual General meeting. The Preference Share holders are also entitled to each share of voting rights to the extent of outstanding preference shares. The company has not issued any preference share during the financial year. In th 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

2 Other details to Balance Sheet

Contingent Liabilities and Commitments

As at As at Particulars 31-Mar-2014 31-Mar-2013 Contingent Liabilities (Rs In Lacs) (Rs In Lacs)

a. Claims against the Company, not acknowledged as debts (including interest and penalty)

- Sales tax 5554.43 5423.55

- Other Claims 1333.31 1333.31 (without considering interest liability)

- Income tax 332.24 327.91

b. Winding up petition pending against the company filed by Vemag Engg. Pvt. Ltd. for recovery 17.38 17.38 of dues

c. Storage Rent in respect of earlier year for storage of Oil Not Not Ascertainable Ascertainable

d. Income tax interest on demand of Rs.4.28Crores for the Not Not period 01-04-2005 to 31-03-2014 Ascertainable Ascertainable (refer note no 27)

Commitments

Capital Commitments

Other Commitments

3. The Company has been declared as a Sick Industrial Company by the BIFR under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985,On having settled all the compromise dues of the banks and IDBI, the BIFR has disposed off the first reference Case no. 35/1999 of the Company. It has, however, registered the companies subsequent references and appointed Canara Bank as an Operating Agency vide its order dated 1st March,2012 to prepare a Draft Rehabilitation Scheme (DRS) for its consideration. Last BIFR hearing fixed on 15th May, 2014 could not take place. The next date of hearing is still awaited. In the meanwhile, the Operating Agency (Canara Bank) has called for certain clarifications/details which are under finalisation stage.

4. There was a Search & Seizure action U/S 132 of the Income Tax Act on 24.2.99. The Income Tax department had raised demand of Rs 33.12 Crores in the block assessment Order DT. 30.4.2001. In case of company Subsequently, ITAT has given relief to the extent of Rs 28.84 Crores. The company''s appeal before Hon. Gujarat High Court against addition confirmed by ITAT of Rs 4.28 Crores is admitted. Pending the disposal of appeal by Hon''ble High Court the provision for Income Tax of Rs 2.88 Crores on addition confirmed by ITAT was made during F.Y.2002-03 and provision of Rs 1.27 crore of interest payable up to 31.03.2005 is made in the accounts. Adhoc payments made against the outstanding demands are adjusted against principal amounts. No provision is made for the interest payable, if any, on the outstanding demand for the period from 1st April, 2005 till date as the company is hopeful of getting favorable order from the High Court.

5. No provision is made during the year for interest receivable on various advances amounting to Rs 2920.25 Lacs (P.Y. Rs 1171.60 lacs) as the same are considered doubtful.

6. The Company is engaged in the business of manufacturing and selling the Refined Castor Oil and its derivatives. Thus there is solitary business segment of Oils. Therefore, segment wise information as required by AS-17 on "Segment Reporting" is not applicable.

7. The Company is making sincere efforts for the revival of the Business,& management is hopeful to recover the losses through more profitable business activities. Therefore accounts for the year have been prepared are going concern basis

8. The Company has entered into financial arrangement with National Spot Exchange Ltd (NSEL) through trading and Clearing Member, N.K.Proteins Ltd (Group Company) by way of purchase and sales of various goods. Thus the company has purchased goods amounting to Rs Nil (P.Y. Rs 5255.73 Crores) and has sold goods amounting to Rs Nil (P.Y. Rs 5065.05 Crore) through National Spot Exchange Ltd without physical delivery of goods. Therefore the net loss from the said transactions (including transaction charges levied by NSEL) has been shown as Trading Loss in the profit & loss accounts of the respective financial years. Out of the transactions entered in to at National Spot Exchange Ltd., the company has shown an amount of Rs 474.17.Crores as at 31.03.2014 as long term creditors. However, the liability of NSEL could not be ascertained due to the difference between the balance as per the books of the company and balance due as per the demand of NSEL through the trading and clearing member N.K.Proteins Ltd. Further NSEL suspended the trading on 31st July 2013 and has moved an arbitration petition in the Hon''ble Mumbai High Court for recovery of outstanding amount from N.K. Proteins Limited, and has made the company a Respondent The matter is pending with Hon''ble Bombay High Court.

9. Trade payables of Rs 677.41 Crores (Rs P.Y 1718.14 Crores) include Rs 474.17Crores (P.Y. Rs 1625.03 Crores) payable to third parties as elaborated vide note no 31 above, and trade receivables of Rs 133.68 Crores (Rs P.Y 1057.25 Crores) include receivable from third parties of Rs NIL (P.Y. Rs 347.65 Crore) towards transactions through National Spot Exchange Ltd (NSEL). The said balances as on date are subject to confirmation by respective parties and reconciliation/adjustments if any.The Balance amount of trade payables and receivables and other loans and advances are also subject to confirmation.

10. The, Income tax Department had carried out survey under section 133A on the company along with other group companies.

Further, the investigation by Economic Offence Wing of Mumbai Police (EOW) is also in progress. against trading and clearing member N.K.Proteins Ltd relating to this issue.

11. As per the order of the Hon''ble High Court of Gujarat the company has deposited an amount of Rs 231 Lacs towards disputed land matter in the case of Banpal Oilchem Pvt. Ltd. Total outstanding amount as at 31.03.2014 of Rs 1407.70 Lacs and is classified as "Long term loans and advances" in the accounts for the year under review.

12. Sales Tax Department has completed the assessment for various assessment years and raised demand of Rs 5423.55 lacs for the earlier previous years and further an amount of Rs 130.88 Lacs for the year under review making total demand of Rs 5554.43 Lacs. The company has not made any provision for the above demand raised by the sales tax authority in view of the fact that that the company had preferred an appeal before the appellate authority. Had the provision for sales tax would have been made for the earlier years as well as for the year under review, the loss for the current year would have been higher by Rs 130.77 Lacs and loss for the earlier year would have been higher by Rs 5423.55 Lacs and Liabilities would have been higher by Rs 5554.43 Lacs

13. The company had entered into a joint venture arrangement by taking 50% Equity stake in AWN Agro Pvt. Ltd (JV Entity/ Company) and made an investment of Rs 2500.50 Lacs towards Equity Share Capital. As informed to us, because of huge loss incurred by the said entity, the said joint venture has been ended during the year under review. The company has shown an amount of Rs 2500.50 Lacs invested in the share capital/application money in the said joint venture company and Rs 1748.65 Lacs as loans and advances to the said JV entity aggregating to Rs 4249.15 lacs. The Company has made provision for doubtful debts of the entire amount of investment/ Loans and Advances of Rs 4249.15 Lacs in its books of accounts for the year ending on 31st March, 2014. However, the reconciliation /confirmation of the outstanding loans & advances amount is not made by the Company. The disclosure of Joint Venture investment as per AS-27 are as under.

14. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated, if realized, in the ordinary course of the business. The provisions for depreciation and all known liabilities are adequate. There are no contingent liabilities other than stated.

15. Micro, Small & Medium Enterprises

In the absence of information available with the Company about enterprises which are qualifying under the definition of Medium and Small Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006, no disclosure is made as required under the Companies Act in respect of the following.

a) Total outstanding dues of Micro enterprises and Small enterprises - Rs Nil

b) Total outstanding dues of the Creditors other than Micro enterprises and Small enterprises Rs Nil (Prev. Yr Nil)

16. No provision for Differed Tax assets has been made as there is no virtual certainty of Setting the same in near future.

17. Previous years comparatives

In view of the fact that the plant of the company was leased during the year ending on 31.03.2013 to the joint venture entity and in the current fiscal year, the company has changed the arrangement and commenced crushing activities, the figures for the previous years are not comparable with that of the current year.

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Mar 31, 2013

Contingencies and provisions

1 The Company has paid off the entire principal outstanding amount to The Visnagar Nagrik Sahkari Bank Ltd. (Under Liqui-dation) as per the Hon''ble High Court of Gujarat and Hon''bie Session Court''s orders. As regards the payment of interest, application was considered by the Expert Committee appointed by the High Power Committee in terms of the OTS scheme to the Government of Gujarat for Co-operative Banks under liquidation. The Expert Committee erroneously considered the cut off date for Non Performing Asset of our N.K.Group of Accounts. The Company therefore filed a Special Civil Application (SCA) No.2714 of 2012. The High Court then appointed Chartered Accountant who had submitted their report to the High Court specifying NPA date as on 31-Mar-1998. The High Court therefore directed that both the sides to settle there accounts in terms of NPA date 31-Mar-1998. Based on this, The Bank has settled all the accounts and refunded the total amount of Rs. 1,73,47,601/- on 21-Dec-2012 inclusive of the share linking amount of Rs. 134.59 Lacs. Thus, dispute with the Bank is now fully settled.

2 The amount of sale proceeds of the finished goods sold by the Consortium Bank, Bank of Baroda was deposited in the Central Bank of India by way of the Fixed Deposit as per the DRT''s Order. The value of the sale proceeds was Rs. 2,29,62,260/- which became Rs. 4,49,39,812/- on account of addition of interest. The Company having settled all the banks'' dues, filed an appeal in DRT to release the money deposited in the Central Bank of India. On due consideration, the Hon''ble DRT ordered the Central Bank of India to release the said FDR with interest. The Company has since received the amount of Rs.4,49,39,812/- from the Central Bank of India. Accordingly, the entire interest amount of Rs.2,19,77,552/- is credited to profit and loss account under other income in note no. 16.

3 On having settled all the compromise dues of the banks and IDBI, the BIFR has disposed off our first reference Case no. 35/1999. It has, however, registered our subsequent references and appointed Canara Bank as an Operating Agent vide its order dated 1st March,2012 to make a Draft Rehabilitation Scheme for its consideration, which is -pending.

4 There was a Search & Seizure action U/S 132 of the Income Tax Act on 24.2.99. The Income Tax department had raised demand of Rs. 33.12crores in the block assessment Order DT. 30.4.01. Subsequently, ITAT has given relief to the extent of Rs. 28.84 crores. The company''s appeal before Hon. Gujarat High Court against addition confirmed by ITAT of Rs. 4.28 crores is admitted. Pending the disposal of appeal by Hon''ble High Court the provision for Income Tax of Rs.2.88 Crores on addition confirmed by ITAT was made during F.Y.2002-03 and provision of Rs. 1.27 crore of interest payable up to 31.03.2005 is made in the accounts. Adhoc payments made against the outstanding demands are adjusted against principal amounts. No provision is made for the interest payable, if any, on the outstanding demand for the period from 1 st April, 2005 till date as the company is hopeful of getting favorable order from the High Court.

5 The company has revalued assets on 31 -03-2012 to reflect fair value of assets in books. The amount of revaluation of Rs.194.47crore credited to Revaluation Reserve and debited to respective assets.

6 No provision is made during the year for interest receivable on various advances amounting to Rs. 1171.60 Lacs (P.Y. Rs.1011.98) as the same are considered doubtful.

7 The Company is engaged in the business of manufacturing and selling the Refined Castor Oil and its derivatives. Thus there is solitary business segment of Oils. Therefore, segment wise information as required by AS-17 on Segment Reporting" is not applicable.

8 The Company is making sincere efforts to recover the losses through more profitable business activities. Therefore accounts for the year have been prepared are going concern basis.

9 in the opinion of the management, there is no indication, internal or external, which could have the effect of impairing the value of assets to any material extent as at the balance sheet date requiring recognition in term of AS -28.

10 In the opinion of the Board, Current Assets including short term Loans and Advances are approximately of the value stated, if realized, in the ordinary course of the business. The provisions for depreciation and all known liabilities are adequate. There are no contingent liabilities other than stated.

11 Trade payables of Rs. 1718.14 Crore (Rs.964.90Crores) includes Rs.1625.03Crores (P.Y. Rs.Nil) payable to third parties and Rs.Nil Crore (P.Y.Rs950.18Crore) payable to group concerns and trade receivables of Rs.1050.75 Crore (Rs.662.88 Crore) includes receivable from third parties of Rs.319.19Crores (P.Y.Rs.506.06Crore) and Rs.695.18 Crore (P.Y. Rs. 127.30 Crore) receivable from group concerns towards transactions through National Spot Exchange Ltd (NSEL). The said balances as on date are subject to confirmation by respective parties and reconciliation/adjustments if any. The Balance amount of trade payables and receivables and other loans and advances are also subject to confirmation.

12 Prior period adjustment of Rs. 104.54 Crores is on account of certain purchase returns which were wrongly accounted during last financial year. Further, it also includes certain wrong recovery of expenses made from the customers (though it was not recoverable contractually) which were shown as sales during last financial year. This mistakes have been rectified during the year and the net difference has been debited to profit & loss account.

13 A Company has been buying and selling the goods on National Spot Exchange Limited (NSEL) through trading and clearing member, N.K. Proteins Limited (Group Company). NSEL suspended the trading on 31st July 2013 and has referred the matter for arbitration for recovery of outstanding amount from N.K. Proteins Limited, this company and other clients. The matter is pending with Bombay High Court.

Further, income tax department carried out survey under section 133A on the company along with other group companies for investigating the transactions with NSEL. The investigation is pending with Income Tax Department.

Further, the investigation by EOW is also in progress.

14 The Company entered into financial arrangement with NSEL through a broker, N.K.Proteins Ltd. by way of purchase and sales of various goods. Thus the company has purchased goods amounting to Rs.5255.73 Crore (P.Y. Rs. 5580.85 Crore) and has sold goods amounting to Rs.5065.05Crore (P.Y.Rs.5531,53Crore) through National Spot Exchange Ltd without physical delivery of goods. Therefore the net loss from the said transactions (including transaction charges levied by NSEL) has been shown as Trading Loss in the profit & loss accounts.

15 The Company has entered in to Joint Venture by equity investment in AWN Agro Pvt Ltd of 50% . The disclosure of Joint Venture investment as per AS-27 are as under. The Figures are given based on unaudited accounts.

16 Micro, Small & Medium Enterprises In the absence of information available with the Company about enterprises which are qualifying under the definition of Medium and Small Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006, no disclosure is made as required under the Companies Act in respect of the following.

a) Total outstanding dues of Micro enterprises and Small enterprises-Rs. Nil

Total outstanding dues of the Creditors other than Micro enterprises and Small enterprises Rs.Nil (Prev.

b) Yr 4.36 Lacs)

17 Prior period comparatives

The company has prepared financial statement as per revised schedule VI to the Companies Act 1956 and accordingly, the assets, liability Income and Expenditure of the previous year is regrouped/ reclassified to conform to the current year''s presentation.

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Mar 31, 2012

1 Other details to Balance Sheet

a. Contingent Liabilities and Commitments

Particulars As at As at 31-Mar-2012 31-Mar-2011 Contingent Liabilities (Rs. In Lacs) (Rs. In Lacs)

a. Claims against the Company, not acknowledged as debts (including interest and penalty)

- Sales tax 5423.55 5285.83

- Other Claims (without considering 1333.31 1333.31 interest liability)

- Income tax 327.91 25.93

- Various Suits filed by banks Please See Please See and others Note No.(d) Note No.(d) below below

b. Winding up petition pending against 17.38 17.38 the company filed by Vemag Engg. Pvt. Ltd. for recovery of dues

c. Storage Rent in respect of earlier Not Not year for storage of Oil Ascertainable Ascertainable

Commitments

Capital Commitments

Other Commitments b. The Company has paid off the entire principal outstanding amount to The Visnagar Nagrik Sahkari Bank Ltd. (Under Liquidation) as per the Hon''bie High Court of Gujarat and Hon''ble Session Court''s orders. As regards the payment of interest, our application was considered by the Expert Committee appointed by the High Power Committee in terms of the OTS scheme ot the Government of Gujarat for Co-oprative Banks under liquidation. The Expert Committee erroneously considered the cut off date for Non Performing Asset of our N.K.Group of Accounts. The Company has therefore filed a miscellaneous application in the Hon''ble High court against the Liquidator, Visnagar Nagarik Sahakari Bank Ltd which ^ is pending. In the meanwhile, the Company has paid the entire amount of interest calculated @6% p.a.as per its working. The Bank has demanded interest @ 21% p.a. as per original sanction letter. Since matter is pending with Highcourt/Government, No provision is considered necessary for differential interest amount.

c. The amount of sale proccesds of the fininished goods sold by the Consortium Bank, Bank of Baroda was deposited in the Central Bank of India by way of the Fixed Deposit as per the DRT''s Order. The value of the sale proceeds was Rs.2,29,62,260/- which became Rs. 4,49,39,812/- on account of addition of interest. The Company having settled all the banks'' dues, filed an appeal in DRT to release the money deposited in the Central Bank of India on due consideration, the Hon''ble DRT ordered the Central Bank of India to release the said FDR with interest. The Company has since received the amount of Rs.4,49,39,812/- from the Central Bank of India. Accordigly, entire interest amount of Rs.2,19,77,552/- is credited to profit and loss account.

d. On having settled all the compromise dues of the banks and IDBi, the BIFR has disposed off our first '' reference Case no. 35/1999. If has, however, registered our subsequent references and appointed Canara Bank as an Oprating Agent vide its order dated 1 st March,2012 to make a Draft rehabilitation scheme for its consideration.

e. There was a Search & Seizure action U/S 132 of the Income Tax Act on 24.2.99. The Income Tax department had raised demand of Rs. 33.12 crores in the block assessment Order DT. 30.4.01. Subsequently, ITAT has given relief to the extent of Rs. 28.84 crores. The company''s appeal before Hon. Gujarat High Court against addition confirmed by ITAT of Rs. 4.28 crores is admitted. Pending the disposal of appeal by Hon''ble High Court the provision for Income Tax of Rs.2.88 Crores on addition confirmed by ITAT was made during F.Y.2002-03 and provision of Rs. 1.27 crore of interest payable up to 31.03.2005 is made in the accounts. Adhoc payments made against outstanding demands are adjusted against principal amounts. No provision is made for the interest payable if any, on the outstanding demand for the period from 1st April, 2005 till date as company is hopeful of getting favorable order from the High Court.

f. The company has revalued assets on 31-03-2012 to reflect fair value of assets in books. The amount of revaluation of Rs.l94.47crore credited to Revaluation Reserve and debited to respective assets.

g. No provision is made during the year for interest receivable on various advances amounting to Rs. 1171.60 Lacs (P.Y. Rs.1011.98) as the same are considered doubtful.

h. The Company is engaged in the business of manufacturing and selling the Refined Castor Oil and its derivatives. Thus there is solitary business segment of Oils. Therefore, segment wise information as required by AS-17 on "Segment Reporting" is not applicable. i. Balances of Sundry Debtors, Creditors and Loans & Advances are subject to Confirmation by them & reconciliation if any.

j. In the opinion of the management, there is no indication, internal or external, which could have the effect of impairing the value of assets to any material extent as at the balance sheet date requiring recognition in term of AS -28.

k. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated, if realized, in the ordinary course of the business. The provisions for depreciation and all known liabilities are adequate. There are no contingent liabilities other than stated.

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Mar 31, 2010

1 The company has made various payments to Visnagar Nagrik Sahkari Bank Ltd. towards the liability ot NK Group of Companies and accounted in the books as their own. As against the same, Visnagar Nagrik Sahkari Bank Ltd. has appropriated the receipts in different companies. As a result, balance with Visnagar Nagrik Sahkari Bank Ltd. does not reconcile. However, balances of the NK Group of Companies are reconciled

2 The finished goods lying in Hindustan Organics Pvt Ltd (H.O.R) tanks at Kandla Port were disposed of by the lead bank, Bank of Baroda as per the courts order. The sale proceeds of Rs 2, 29, 62,260 were deposited in the Central Bank of India in view of H.O.Rs Claim on the said amount on account of rent. This deposit was renewed from time to time, last renewed on 27th October, 2008 for two years by Bank of Baroda for Rs. 3,59,95,900. No interest is provided in view of counter claim of H.O.R Since the consortium banks have been paid of fully, the company is entitled to the said amount subject to H.O.Rs claim for which an appeal is filed by the company in DRT for a quick judgment.

3 The Company was declared a Sick Industrial unit by BIFR by an order dated 09.07.1999. Later on, Letters of Patent was filed in the Division Bench of the Gujarat High Court. While granting stay of AAlFRs order, it directed BIFR to submit whether the management of the company committed any malfeasance or misfeasance as per section 24 of SICA. During the proceedings, the company entered into the compromise settlements with all the secured creditors and paid off their dues leaving apart M/s. Kotak Mahindra Bank Limited whom the monthly installments are being paid as per the consent terms. The last installment is due in August-2011. In view of the above factual position, the Gujarat High Court permitted us to withdraw the above LPA Interim orders/ directions passed in the Appeal stands vacated. BIFR was informed of the above development and it has, therefore, stopped hearings under section 24 of SICA. Our first reference No. 35/1999 has been disposed off. However, further pending references are now to be considered by BIFR in its next hearing on 12.07.2010 to consider registration of the company as a sick industrial unit.

4 There was a Search S Seizure action U/S 132 of the Income Tax Act on 24.2.99. The Income Tax department had raised demand of Rs. 33.12 crores in the block assessment Order DT 30.4.01. Subsequently, ITAThas given relief to the extent of Rs. 28.84 crores.The companys appeal before Hon. Gujarat High Court for addition confirmed by IW of Rs. 4.28 crores is admitted. Pending the disposal of appeal by Honble High Court the provision for Income Tax of Rs.2.88 Crores on addition confirmed by HAT was made during RY.2002-03 and provision of Rs. 1.27 crore of interest payable upto 31.03.2005 is made in the accounts. Adhoc payments made against outstanding demands are adjusted against principal amounts. No provision is made for the interest payable il any, on the outstanding demand for the period from 1st April, 2005 till date as company is hopeful of getting favorable order from the High Court.

5 No provision is made during the year tor interest receivable on various advances amounting to Rs.821.65 Lacs (P.Y. Rs.897.16) as the same are considered doubtful.

6 The Company is engaged in the business of manufacturing and selling the Refined Castor Oil and its derivatives. Thus there is solitary business segment of Oils. Therefore, segment wise information as required by AS-17 on "Segment Reporting" is not applicable.

7 Related Party Disclosure as per AS-18 is,

Associate firm / Company

N.K.Proteins Ltd. Shanti Stock Holdings P.Ltd.

N.K.Roadways Pvt.Ltd. N.K.lnfraventures P.Ltd

N.K.Oil Mills Pvt.Ltd. N.K.Corporation

Tirupati Proteins Pvt.Ltd. N.K Flour Mills Ltd.

Tirupati Retails Pvt. Ltd. Adrenal Advertising & Promotions Pvt. Ltd.

Key Managerial personnel

Nimish K. Patel Ashwin P. Patii

Nilesh K. Patel Rajiv M.Todi, Manager

Relatives of Key Managerial personnel

Sonal N. Patel Neela A. Patel

Ashita N. Patel Suchita R.Todi

8 The Accounting Standard -15 "Employee Benefits" is issued under Companies (Accounting Standards) Rule, 2006. In accordance with the above standard, the obligations of the company, on account of employee benefits, based on independent actuarial valuation, is accounted for in the books of account. The company has classified the various benefits provided to employees as under:

I. Defined Contribution Plans:

(a) Provident Fund / Employees Pension Fund

During the year, the company has recognized the following amounts in the Profit & Loss Account:

Rs. in Lacs

Employers Contribution to Provident Fund / Employees Pension Fund 11,69

The above amounts are included in Contribution to Provident and Other Funds and (Schedule - 18)

II. Defined Benefit Plans:

(a) Provision for Gratuity Liability

(b) Provision for Leave Encashment

In accordance with Accounting Standard-15, relevant disclosures are as under:

9 In the opinion of the management, there is no indication, internal or external, which could have the effect of impairing the value of assets to any material extent as at the balance sheet date requiring recognition in term of AS -28.

10 Balances of Financial Institution, Sundry Debtors, Creditors and Loans & Advances are subject to Confirmation by them & reconciliation if any.

11 Advances include Rs. 912.84 lacs ( P.Y. Rs.673.14 lacs ) due from companies and other Parties in which directors are interested/related.

12 Micro, Small & Medium Enterprises

In the absence of information available with the Company about enterprises which are qualifying under the definition of Medium and Small Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006, no disclosure is made as required under the Companies Act in respect of the following.

a) Total outstanding dues of Micro enterprises and Small enterprises - Rs. Nil

b) Total outstanding dues of the Creditors other than Micro enterprises and Small enterprises Rs.4.36Lacs

13 In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated, if realized, in the ordinary course of the business. The provisions for depreciation and all known liabilities are adequate. There are no contingent liabilities other than stated.

14 Prior period comparatives

Previous year figures have been regrouped/ rearranged wherever necessary to conform to current years presentation.

15 Quantitative Details as required by Part II to Schedule VI to the Companies Act, 1956 areas under: