Notes to Accounts of Natraj Proteins Ltd.

Mar 31, 2024

15. provisions and contingencies

Provisions are recognized when :

1) The Company has a present legal or constructive obligation as a result of past event

2) it is probable that outflow or economic benefits will be required to settle the obligation, and

3) A reliable estimate can be made of the amount of the obligation.

A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by the
occurrence or non- occurrence of one or more uncertain future events beyond the control of the company or a
present obligation that is not recognized because it is not probable than an outflow of resources will be required to
settle the obligation. It also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its
existence in the financial statements.

Contingent Assets are possible asset that arises from past events and whose existence will be confirmed only by
the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the
Company. The contingent assets are not recognized in the financial statements since this may result in the
recognition of income that may never be realized.

As and when additional information becomes available to the company, estimates are revised and adjusted
periodically to reflect the current best estimate.

16. Foreign Exchange Transaction:

The company''s financial statements is presented in INR, which is also its functional currency. Transactions in
foreign currency are initially recorded by the company at its functional currency spot rate prevailing on the date of
the transaction. Year end receivables and payables are translated at year end rate of exchange. With effect from
April 2011 gain/ loss on account of fluctuations in exchange rates pertaining to long term foreign currency
borrowings to the extent they are related to acquisition of depreciable property, plant & equipments is adjusted to
the cost of asset and in case of other long term foreign currency borrowings, the same is amortized over the life of
such long term borrowings.

In all other cases, the difference on account of fluctuation in the rate of exchange is recognized in the statement of
profit and loss.

17. Segment Reporting Policies:

Identification of Segments: The Company''s operating business are organized and managed separately
according to the nature of product with each segment representing a strategic business unit that offer different
products and serves different markets.

Assets, liabilities, revenue and expenditure identified to each segment are taken as segment related transaction.
Common assets, liabilities and expenses are not allocated to segments.

Information about each identifiable operating segment is required to be disclosed separately and aggregated
operating segments if it exceeds the quantitative thresholds.

Operating Segment:

a) Processing of oil ( soya) seeds and refining of soya crude oil for edible use. The Company also produces oil
meal, food products from soya and value added products from downstream and upstream processing is
principal business activity of the company. Other revenue which are traded goods and selling of agriculture
equipments does not form part of a reportable segment as per Ind AS 108 on “ Operating Segment”.

b) The company has a single geographical segment as factory of the company is situated within the country.

c) The company is domiciled in India. Revenue from external customers is NIL ( Previous Year: NIL)

18. Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of shares outstanding during the period.

For the purpose of calculated diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.

20) OTHER NOTES:

1. Trade Receivables, Trade and other payables are subject to confirmation and reconciliation adjustments
there of if any and the same are under progress.

2. The figures of previous year have been reclassified and /or regrouped wherever necessary to confirm to
current year classification or group.

3. The reconciliation of GST paid and receivable during the financial year 2023-24 is under progress.

A. Defined Contribution Plans:

The Company has certain defined contribution plans. Contributions are made to provident fund in India for
employees at the specified rate as per regulations. The contributions are made to registered provident fund
administered by the Government of India. The obligation of the Company is limited to the amount contributed and
Company has no further contractual or any constructive obligation. The Company has recognized Rs. 2.10 Lakhs
towards contribution to Provident Fund during the year (FY 2022-2023- Rs.2.11 Lakhs).

B. Defined Benefit Plan:
a) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/ termination/resignation is paid as per the provisions of the Payment of Gratuity Act, 1972. The gratuity
plan is a funded plan and Company makes annual contributions to the Group Gratuity cum Life Assurance
Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. The most
recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were
carried out as at March 31, 2024 The present value of the defined benefit obligations and the related current
service cost and past service cost, were measured using the Projected Unit Credit Method.

11. Details of Benami Property held:

As per the requirement of Schedule - III, where any proceeding has been initiated or pending against the company
for holding any benami property under the Benami Transactions ( Prohibition) Act, 1988 ( 45 of 1988) and rules
made there under, the company shall disclose certain information about the property. The company is not holding
any Benami Property as on date 31/03/2024.

12. Wilful Defaulter:

As per requirement of Schedule-III, where a company is declared willful defaulter by any bank or financial
institution or other lender, certain disclosure regarding date of declaration as willful defaulter and details of defaults
(amount and nature of defaults) has to be disclosed in the financial statement. Company has never been declared
willful defaulter by any Bank or Financial Institutions.

13. Utilization of borrowed funds and share premium

The company has not advanced ( other than advances given or received in the ordinary course of business ie
advance to employees, advance to customers or suppliers against provision of goods or services etc) or loaned or
invested funds( either borrowed funds or share premium or any other sources or kind of funds) to any other
person(s) or entity (ies), including foreign entities ( intermediaries ) with the understanding ( Whether recorded in
writing or otherwise) that the intermediary shall

I. Directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by on
behalf of the company ultimate beneficiaries) or

II. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
Hence disclosure is not required under this head.

14. The company has complied the number of layers prescribed under Clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

15. No scheme of arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013 during the current as well as the previous year.

16. The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year as well as
in the previous financial year.

17. The company has not made any contribution in the current financial year and an amount of Rs. 2,51,000
contributed to political party- Bharatiya Janata Party made during the previous financial year 2022-2023.

As per our report of even date FOR AND BEHALF OF BOARD OF DIRECTORS

For Bhutoria Ganesan & Co. Kailash Chand Sharma Sharad Kumar Jain

Chartered Accountants (Managing Director) (Whole Time Director)

Firm Registration No. 004465c DIN 00012900 DIN 02757935

CA R.Gokulakrishnan Pooja Agrawal Abhinandan Prajapati

Partner (Company Secretary) Chief Financial Officer

Membership No : 402792 Place: Itarsi

Place: Bhopal Date: 27/05/2024

Date : 27/05/2024
UDIN: 24402792BKHHOH6472

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Mar 31, 2015

NOTE 1

Borrowings From Andhra Bank

The working capital facilities from Andhra Bank in following facilities Export Packing Credit, Open Cash Credit, Bank Guarantee and Inland letter of Credit payable on demand. Open cash credit is bifurcated to peak and non peak limits with sublimit for book debts. Rate of Interest on Open cash credit is 13.00% and on Export Packing Credit there is concessional rate of interest. Primary security is hypothecation of stocks meant for export in case of Export Packing Credit, hypothecation of stocks and receivables in case of Open cash credit facilities, counter guarantee in case of bank guarantee and stocks proecured under Letter of Credit in case of LC facilities. Short Term loan against pledge of ware house receipt for procurement of soya seed. Rate of interest is 11.00% and primary security is pledge of warehouse receipts/storage receipts with lien noted in favour of Bank. The repayment is bullet payment with interest on due date i.e.. at the end of tenur of each disbursement.

All above working capital borrowings including short term loan against pledge of ware house receipts are collaterally secured by :

a) by way of first charge on the company''s entire fixed asset excluding assets created out of TL Andhra Bank (and out of TL from MPFC. And against Equitable Mortgage of Factory Land (Free Hold) admeasuring 17.93 Acres)

b) by way of Extension of EM of house property in name of Shri Kailash Chand Sharma, Managing Director situated at Nirupam Royal Palm Villa, Bhopal and EM of residential plot at village Jatkhedi, Bhopal.

c) Lien on FDR of principle amount Rs. 1.54 Cr. With present value of Rs. 2.08 Cr. As on 31.03.2015

d) Personal Guarantees of 3 Director (a), (b), © and (d) also collateal for term loan borrowings Note No. 3.1

On Borrowing From IDBI Bank

1. Short term Loan against pledge of Ware House Receipt for procurement of Agri Commodities Rate of Interest 10.75% and Primary security of Ware House Receipts with Lien Mark in favour of Bank.

2. Repayment period minimum One Month and Maximum 12 Months.

3. Collatoral Security as Personnel Guarantee of Managing Director of Company

Note 2

2.1 Other Bank Balances includes FDR with Central Bank of India Rs.1,315,603 previous Year Rs. 1,240,888 having original maturity period more than 12 months.

2.2 Margin Money:

Margin money deposits amounting to Rs. 3,44,25,512/-( previous year Rs. 3,17,40,872/-) are lying with Bank against Bank Guarantee & Security against borrowings of Working Capital

(i) Lien Marked against FDR with Andhra Bank RS. 34425512/-, for the Bank Guarantee, Letter of Credit & other collateral security for the working Capital Borrowings.

(ii) Lien marked against FDR with Axis Bank Rs. 404480. The FDR given as security deposit with Agriculture Produce Market Committee- Krishi Upaj Mandi Samiti.

(iii) Lien Mkarked FDR of Rs.17000000/- with RBL Bank for Corporate Guarantee against Crop Loan to Farmers/

Agregators. Previous year Nil

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Mar 31, 2013

CONTINGENT LIABILITIES

1. (a) Estimated amount of capital commitments on contracts to be executed net of advances is fis. Nil lacs

(Previous year Rs. NIL). Bank guarantees issued on behalf of the company Rs. 21.39 lacs (Previous year Rs. 19.26 lacs)

behalf of the company Rs. 21.39 lacs (Previous year Rs. 19.26 lacs)

(b) Income Tax Rs.15.90 Lacs (Previous year Rs.15.90 Lacs): In respect of demand from the Income Tax department, the case is before the Settlement Commission. The company has already remitted tax of Rs.39.80 lacs urtder protest and shown under advances. As per the legal opinion obtained by the company, there will not be any demand and the entire amount is likely to be refunded. However tax on income surrendered before the Commission amounts to Rs.15.90 lacs is shown as contingent liability. The company has filed petition in Honorable High court of M.P for granting stay for referring the case back to the Commissioner Income Tax. The Honorable High Court granted the stay in favour of the company. Further details in this case is awaited.

(c) In respect of demand from the Commercial tax department, the company filed appeal with the Appellate commissioner, Commercial Tax, Bhopal.

The amount of Entry Tax demanded in the notice is Rs.0.53 lacs related to the year 2006-07.

d) In respect of demand Rs. 6,32,244 from the commercial tax department for the period 01 -04-2006 to 31-03- 2007, the company filed an appeal with the M.P Commercial Tax Appellate Board, Bhopal. Against the demand the company already deposited Rs.127000.

2. Sundry Debtors and Sundry Creditors balances are subject to confirmation.

3. The figures of previous year have been reclassified and/or regrouped wherever necessary to confirm current year classification or group.

4. WIND MILL POWER PROJECT:

In respect of Wind Mill Generator at NavneetaKrishnaPuram, Tirunelveli District Tamil Nadu.

5. Sale of Generated power during the year 2012-13 is 1488720 units. (Previous Year: 11,77,116 Units).

6. Related Party Disclosure (As identified by the Management) Related party Relationships

a) Where control exists :: Kailash Chand Sharma, J.P.Agrawal, Sharad Kumar Jain,

b) Key Management Personnel:: Shri.Kailash Chand Sharma, Managing Director

c) Relatives of Key Management Personnel: Mr. Ritesh Sharma related to Managing Director

In respect of above parties, there is no provision for doubtful debts as on 31 - March 2013 and no amount has been written off or written back during the year in respect of debts due from/to them.

7. In accordance with the revised accounting standard-15 are given below which is certified by the actuary and relied upon by the auditors. The following tables summarize the components of net benefit expenses recognized in the profit and loss account and the unfunded liability status and amounts recognized in the balance sheet for the gratuity.

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Mar 31, 2012

1. (a)Estimated amount of capital commitments on contracts to be executed net of advances is Rs. Nil lacs (Previous year Rs. NIL. Bank guarantees issued on behalf of the company Rs. 19.26 lacs (Previous year Rs. 18.00 lacs) 1

1.(b) In respect of demand from the Income Tax department, the case is before the Settlement Commission. The company has already remitted tax of Rs.39.80 lacs under protest and shown under advances. As per the legal opinion obtained by the company, there will not be any demand and the entire amount is likely to be refunded. However tax on income surrendered before the Commission amounts to Rs. 15.90 lacs is shown as contingent liability. The company has filed petition in Honorable High court of M.P for granting stay for referring the case back to the Commissioner Income Tax. The Honorable High Court granted the stay in favour of the company. Further details in this case is awaited.

1. (C) In respect of demand from the Commercial tax department, the company filed appeal with the Appellate commissioner, Commercial Tax, Bhopal. The amount of Entry Tax demanded in the notice is Rs.0.53 lacs related to the year 2006-07.

1. (d) In respect of demand Rs. 6,32,244 from the commercial tax department for the period 01-04-2006 to 31-03-2007, the company filed an appeal with the M.P Commercial Tax Appellate Board, Bhopal. Against the demand the company already deposited Rs.127000.

2. Sundry Debtors and Sundry Creditors balances are subject to confirmation.

3. The figures of previous year have been reclassified and /or regrouped wherever necessary to confirm to current year classification or group.

4. During the year 2011-12 the company received of Rs. 1657408 as VAT refund. An excess provision on VAT account Rs. 15,14,Qfg used for estimating VAT payable as on 31-03-2012

5. WIND MILL POWER PROJECT:

In respect of Wind Mill peneratorat NavneetaKrfehrtSPuram, Tirunelveli Distlfet Tamil Nadu.

6. Sale of Generated power during the year 2011.-12 is 11,77,116 units. (Previous Year: 1398312 Units).

7. Income tax provisiih account has not been:iai£bnciled /adjusted with thfitax paid and accounted for under Advance Tax a/c for the years asessment is complete.

8. Related Party Disclosure (As identified by the Management)

Related party Relationships

a) Where control exists:Kailash Chandra Sharma,J.P.Agarwal, Sharad Kumar jain.

b) Key Management Personnel: Shri Kailash Chandra Sharma,Managing Director

c) Relatives of Key Management Rffsonnel: Mr Sharma related to Managing Director

(d) Other Related Parties M/S Saurabh Traders, Itarsl

The parties listed under (d) above not related parties as per require ment Accounting Standard 18. However, as an abundant caution, they are being included for making financial statement more transparent. In respect of above parties, there is no provision for doubtful debts as on 31st March 2012 and no amount has been written back during the year in respect of debets due from to them.

9. In accordance withr the revised accounting standard -15 are given bjfow which is certified by the actuary and relied upon auditors. The, following components of net benefit expenses recognized in the profit and loss account unfunded liabilty status and amounts recognized in the balance sheet for the gratuity.

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Mar 31, 2010

A) OTHER NOTES : CONTINGENT LIABILITIES

1. (a) Estimated amount of capital commitments on contracts to be executed net of advances is Rs. Nil lacs (Previous year Rs. NIL. Bank guarantees issued on behalf of the company Rs. 18.00 lacs (Previous year Rs. 21.05 lacs).

(b) In respect of demand from the Income Tax department, the case is before the Settlement Commission. The company has already remitted tax of Rs.39.80 lacs under protest and shown under advances. As per the legal opinion obtained by the company, there will not be any demand and the entire amount is likely to be refunded. However tax on income surrendered before the Commission amounts to Rs. 15.90 lacs is shown as contingent liability. The company has filed petition in Honorable High court of M.P for granting stay for referring the case back to the Commissioner Income Tax. The Honorable High Court granted the stay in favour of the company. Further details in this case is awaited.

(c) In respect of demand from the Commercial tax department, the company filed appeal with the Appellate commissioner, Commercial Tax, Bhopal. The amount of Entry Tax demanded in the notice is Rs.0.86 lacs related to the year 2006-07.

(d) In respect of demand Rs. 7,03,244 from the commercial tax department for the period 01-04-2006 to 31-03- 2007, the company filed an appeal with the M.P Commercial Tax Appellate Board, Bhopal. Against the demand the company already deposited Rs.71000.

2. Sundry Debtors and Sundry Creditors balances are subject to confirmation.

3. The previous year figures have been regrouped wherever necessary.

4. The share capital as shown in the accounts and as per share transfer agents is under reconciliation.

5. Dues to SSI Units as on 31.03.09 Rs. 85199 (Previous year Rs.2,81,815) and no interest is applicable.

6. During the year 2009-10 the company written back Rs. 33,95,279 as excess provision on VAT account. The amount written back due to change in assumption used for estimating VAT payable as on 31-03-2009.

7. Information on status, amount due as well as period of outstanding as 31.03.2010 in case of Micro , Small and Medium Enterprises as required to be disclose under The Micro , Small and Medium Enterprises Development Act, 2006 isRs.85199.

8. WIND MILL POWER PROJECT :

In respect of Wind Mill Generator at Navneeta Krishna Puram, Tirunelveli District Tamil Nadu Sale of Generated power during the year 2009-10 is 16,70,196 units, (previous Year: 1,50,432 Units).

9. Income tax provision account has not been reconciled /adjusted with the tax paid and accounted for under Advance Tax a/c for the years assessment is complete.

10. Related Party Disclosure (As identified by the Management) Related party Relationships

(a) Where control exists : Kailash Chand Sharma, J.P.Agrawal, Surender Singh Arora.

(b) Key Management Personnel : Shri.Kailash Chand Sharma, Managing Director

(c) Relatives of Key Management Personnel : Mr. Ritesh Sharma related to Managing Director

(d) Other Related Parties : M/S Saurabh Traders, Itarsi

The parties listed under (d) above are not related parties as per requirement of Accounting Standard 18. However, as an abundant caution, they are being included for making financial statement more transparent. In respect of above parties, there is no provision for doubtful debts as on 31 March 2010 and no amount has been written off or written back during the year in respect of debts due from/to them.

11. In accordance with the revised accounting standard -

12 Are given below which is certified by the actuary and relied upon by the auditors. The following tables summarize the components of net benefit expenses recognized in the profit and loss account and the unfunded liability status and amounts recognized in the balance sheet for the gratuity.

NOTE: The defined benefit obligation as on 31-03-2010 is Rs. 9,79,577 as per the independent actuarial valuation which is lesser then the closing balance of the fund Rs.9.93,758,hence no additional liability has been provided in the books during the year 2009-2010.

Transactions with related parties during the year:

J.P.Agrawal Managerial remuneration paid Rs.6.00 lacs

K.C. Sharma Managerial remuneration paid Rs.6.00 lacs

Surendra Singh Arora Managerial remuneration paid Rs.3.00 lacs, (from April 2009 to September 2009)

Rithesh Sharma, Related to Managing Director - Remuneration paid during the year Rs. 5.94 lacs.

M/s. Saurabh Traders, Itarsi - Purchase of soya bean from Saurabh Traders Rs.2593.00 Lacs.

13. Additional information required under Schedule VI of the Companies Act 1956.