Notes to Accounts of Prima Agro Ltd.

Mar 31, 2024

h. Provision -

Provisions are recognized when the Group has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of economic benefits will be required
to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognized 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. These estimates are reviewed at each
reporting date and adjusted to reflect the current best estimates.

i. Income Tax

i. Current Income Tax - Provision for current tax is made based on the liability computed in
accordance with the relevant tax rates and tax laws.

ii. Deferred Tax - Deferred tax is recognized on all timing differences between accounting
income and taxable income for the year, and quantified using the tax rates and laws
enacted or subsequently enacted as on the Balance Sheet date.

The deferred tax assets are recognized and carried forward to the extent that there is a
reasonable / virtual certainty as the case may be that sufficient taxable income will be
available against which such deferred tax assets can be realized.

j. Cash Flow Statement

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 receipt or payments and item of income or expense associated with investing
or financing cash-flows. The cash flow from operating, investing and financing activities of
the Company is segregated.

k. Reven ue Recognition

Revenue is measured at the fair value of the consideration received or receivable, and is
stated net of discounts and returns. The Company recognizes revenue when the amount of
revenue can be reliably measured; when it is probable that future economic benefits will flow
to the entity; and when specific criteria have been met for each of the Company''s activities,
as described below.

i. Sale of Goods - Sales are recognized when the significant risks and rewards of ownership
of the goods are transferred to the buyer as per terms of contract. Income and fees from
services are accounted as per terms of relevant contractual agreements/ arrangements.

ii. Rendering of Service- recognized based on agreements/arrangements with the customers
as the service is performed and there are no unfulfilled obligations

iii. Interest Income - Interest income is recognized on accrual basis.

l. Borrowing Cost

Borrowing costs consist of interest, ancillary and other costs that the Group incurs in
connection with the borrowing of funds and interest relating to other financial liabilities.
Borrowing costs directly attributable to the acquisition, construction or production of an
asset that necessarily takes a substantial period of time to get ready for its intended use or
sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in
the period in which they occur.

m. Exceptional Items

Exceptional items are disclosed separately in the financial statements where it is necessary
to do so to provide further understanding of the financial performance of the Company.

n. Earnings per Share

In accordance with Indian Accounting Standard (Ind AS) 33, ''Earnings per Share'' issued by
the Institute of Chartered Accountants of India, basic and diluted earnings per share is
computed using the weighted average number of equity shares outstanding during the
period.

o. Contingent Liabilities

Contingent liabilities exist 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 Group, or a present
obligation that arises from past events where it is either not probable that an outflow of
resources will be required or the amount cannot be reliably estimated. Contingent liabilities
are appropriately disclosed unless the possibility of an outflow of resources embodying
economic benefit is remote.

p. Contingent Assets

A contingent asset is a 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 entity. The Company does not recognize a
contingent asset.

q. Events after the Reporting Period

Adjusting events are events that provide further evidence of conditions that existed at the
end of the reporting period. The financial statements are adjusted for such events, if any,
before authorization for issue.

Non-adjusting events are events that are indicative of conditions that arose after the end of
the reporting period. Non-adjusting events after the reporting date, if any, are not accounted,
but disclosed.

ADDITIONAL NOTES FORMING PART OF ACCOUNTS

25. Information on dues to Small Scale Industrial Units.

i) No case of suppliers, who are covered under the "interest on delayed payments to
Small Scale and Ancillary Industrial Undertaking Act, 1933" has come to the notice of
the Company.

ii) The company has not received any intimation from its vendors regarding their status
under micro small and medium enterprises development Act, 2006 and hence
disclosures if any, required under any said Act have not been made.

26. Estimated amounts of contracts remaining to be executed on capital account and not
provided for - Nil

27. Closing stock is as valued and certified by the Management of the company.

28. Balances in the accounts of debtors, creditors, loans & advances, borrowings and that of
financial institutions are subject to confirmation.

29. During the year, cumulative preference dividend of 4 years- from Financial Year 2013-14 to
2016-17 at the rate of 10% was paid to Ayyappa Roller Flour Mills out of the profits and
reserves of the company and has been disclosed separately from ordinary receipts and
expenses due to its exceptional nature.

36. Litigations

Food Corporation of India (FCI) had filed suit before Honorable High Court of Kerala vide RFA
No. 100 of 2003 against the order of the Additional Sub Court, Kochi dated 20/03/2003 in OS
183/2001. The company has provided bank guarantee of Rs. 10,00,000/- (against FD) in
connection with the same. The Hon''ble High Court allowed the appeal filed by FCI against the
company vide order dated 08/12/2023 and the bank guarantee has been invoked
subsequently after the closure of the financial year.

37. Contingent Liabilities

Claims under adjudication not acknowledged as debts: Nil

38. The Company has appointed Company Secretary in accordance with the provisions of section
203 of the Companies Act, 2013.

39. Mutual fund transactions during the year

The company has accounted profit of Rs. 20,06,165/- on redemption of mutual fund and Rs.
4,10,53,821.44/- as gain on reinstatement of mutual funds at fair value during the year, in
accordance with the disclosure requirements as per Ind AS. The cost of investment in Mutual
fund as on 31/03/2024 amounts to Rs. 9,04,16,780/- as detailed below:

41. The Company has formed an audit committee in accordance with section 177 of Companies
Act, 2013.

42. The Company has entered into a lease agreement with Ayyappa Roller Flour Mills Limited
in connection with operation of weighbridge the charges and revenue against which is
disclosed under Note No. 40(ii) above.

44. Previous Year''s figures have been regrouped or restated wherever necessary to conform to
the current year''s presentation.

As per our report of even date attached
For PRIMA AGRO LIMITED For G R A N D M A R K & ASSOCIATES

CHARTERED ACCOUNTANTS
FRN:011317N

S K GUPTA SWATI GUPTA CA. BIBIN SAJAN FCA

Chairman & M.D Deputy Managing Director PARTNER

DIN: 00248760 DIN: 00249036 Membership No: 228064

Place : Cochin
Date : 30-05-2024

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Mar 31, 2015

1. Information on dues to Small Scale Industrial Units.

a. No case of suppliers, who are covered under the "interest on delayed payments to Small Scale and Ancillary Industrial Undertaking Act, 1933" has come to the notice of the Company

b. Amount outstanding for payments to SSI 's Rs 1,81,108.80.

c. Name of the SSI units to whom the Company owes any sum which is outstanding for more than 1 year:

(1) MBR Agro Ind. Rs 1, 81,108.80

c. The above information has been compiled to the extent to which the parties could be identified as Small Scale and ancillary undertakings on the basis of the information made available by the Company.

2. Closing stock of fire wood is as valued and certified by the Managing Director.

3. Value of imports calculated on C.I.F. basis during the year Raw Materials Rs. Nil (Previous Year - Nil)

There were no earnings in foreign currency during the year/previous year.

4. Balances in the accounts of debtors, creditors and financial institutions are subject to confirmation.

5. Related Party Transactions

a. List of Related parties with whom transactions have taken place and relationships

Name of Related Party Relationship

Sanjay Gupta Key Managerial Personnel Swati Gupta

Ayyappa Roller Flour Mills Ltd. Ayyappa Real Estate (P) Ltd PAPL Exim India Ltd Prima Alloys (P) Ltd Entity in which Key Managerial Prima Beverages (P) Ltd Personnel have significant Prima Credits Ltd influence Prima Industries Ltd

6. During the year 2000-01, a complaint was filed by Food Corporation of India, against the Company in the Hon'ble High Court of Kerala. At this time, it's not possible to predict the potential financial impact on the Company of an adverse decision. And in this concern the company has executed a bank guarantee of Rs 10,00,000.00 with State Bank of India, Commercial Branch, Cochin as per the order of Hon'ble High Court Of Kerala dated 07/04/2000 in C.M.P.18042/2000 in O.P No.10898/2000. Interest on such deposit has not been accounted in the books of accounts.

7. Mr. Sanjay Gupta, Managing Director of the company has been diagnosed on detailed medical examination and confirmed that he has been affected with Stage IV Adenocarcinoma of the GE junction with liver metastasis. The Board of Directors of the company on 27/06/2014 considered the complexity of the disease based on th e diagnostic result and realised that appropriate treatment for its complete cure is not available in India. Further the Board recorded his dedicated and honest effort from inception of the company for its prosperity and unanimously decided to meet the all expenses including medical, travelling and boarding for providing expert medical treatment anywhere in the world as his further contribution and effort is inevitable for the mere existence of the company. This is decided as commercial expediency too. During the year, the company has incurred an amount of Rs 90,98,649/- towards medical expenses and an amount of Rs 18,02,189/- towards travelling expenses in this regard.

8. Previous year figures have been regrouped or recast wherever necessary to suit current year's layout.

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Mar 31, 2014

1. Information on dues to Small Scale Industrial Units.

a. No case of suppliers, who are covered under the "interest on delayed payments to Small Scale and Ancillary Industrial Undertaking Act, 1933" has come to the notice of the Company

b. Amount outstanding for payments to SSI''s 1,81,108.80.

c. Name of the SSI units to whom the Company owes any sum which is outstanding for more than 1 year:

(l)MBR Agrolnd. 1,81,108.80

d. The above information has been compiled to the extent to which the parties could be identified as Small Scale and ancillary undertakings on the basis of the information made available by the Company

1. Closing stock of packing materials is as valued and certified by the Managing Director.

2. Packing materials consumption is net of recovery.

3. Value of imports calculated on C.I.F. basis during the year Raw Materials Rs. Nil (Previous Year - Nil)

There were no earnings in foreign currency during the year/previous year.

4. Balances in the accounts of debtors, creditors and financial institutions are subject to confirmation.

5. During the year 2000-01, a complaint was filed by Food Corporation of India, against the Company in the Hon''ble High Court of Kerala. At this time, it''s not possible to predict the potential financial impact on the Company of an adverse decision. And in this concern the company has executed a bank guarantee of Rs.10,00,000.00 with State Bank of India, Commercial Branch, Cochin as per the order of Hon''ble High Court Of Kerala dated 07/04/2000 in C.M.P.18042/2000 in O.P No.10898/2000. Interest on such deposit has not been accounted in the books of accounts.

6. The company has issued 60,00,00010% Cumulative Redeemable Preference Shares of Rs. 10 each on 12/04/2013. Dividend for the year has not been provided in the books of accounts and is in accordance with the terms of issue of such shares.

7. Previous year figures have been regrouped or recast wherever necessary to suit current year''s layout.

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Mar 31, 2013

1. Information on dues to Small Scale Industrial Units.

a.No case of suppliers, who are covered under the "interest on delayed payments to Small Scale and Ancillary Industrial Undertaking Act, 1933" has come to the notice of the Company

b. Amount outstanding for payments to SSI ''s Rs 1,81,108.80.

c. Name of the SSI units to whom the Company owes any sum which is outstanding for more than 1 year:

(1) MBR Agro Ind. 1, 81,108.80

d. The above information has been compiled to the extent to which the parties could be identified as Small Scale and ancillary undertakings on the basis of the information made available by the Company.

2. Claims against the company not acknowledged as debt – Nil

3. Closing stock of packing materials is as valued and certified by the Managing Director.

4. Packing materials consumption is net of recovery.

5. Value of imports calculated on C.I.F. basis during the year Raw Materials Rs. Nil (Previous Year – Nil)

There were no earnings in foreign currency during the year/previous year.

6. Balances in the accounts of debtors, creditors and financial institutions are subject to confirmation.

7. As per the Compromise Petition No. 2154/12 dated 24/08/2012 jointly submitted by the company and State Bank of India before the Honourable Debt Recovery Tribunal, Ernakulam, the company has paid the balance sum of Rs 4,65,00,000/- during the year out of total agreed settlement of Rs 5,10,00,000/-. The Honourable Tribunal vide its Order dated 27/08/2012 dismissed the Original Appeal No. 289 of 2005 as settled out of Tribunal. Accordingly the company has transferred an amount of Rs 12, 23, 62,017/- to Capital Reserve A/c being the balance outstanding in Loan a/c Rs 6, 78, 93,444/- and Interest on CC a/c 5, 44, 68,573/-, since the loan is acknowledged as a liability on Capital A/c and Interest on such loan subjected to disallowance for the purpose of Income Tax computation in earlier years.

8. Previous year figures have been regrouped or recast wherever necessary to suit current year''s layout.

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Mar 31, 2012

1. The loan outstanding with Bank of India is fully settled vide letter dated 29/09/2011 for an amount of Rs. 2,02,00,000. The original loan amount sanctioned was Rs. 4,14,00,000/- which became an NPA in the year 2002-03 on which date the outstanding amount was Rs. 4,77,28,000/-. The first OTS accepted by the bank in 2007 wasRs. 1,63,00,000/-against which an amount ofRs. 36,02,000/-was paid. Subsequently, in the current financial year, a new OTS was finally accepted for Rs. 2,02,00,000/- which was fully repaid.

2. Information on dues to Small Scale Industrial Units.

a. No case of suppliers, who are covered under the "interest on delayed payments to Small Scale and Ancillary Industrial Undertaking Act, 1933" has come to the notice of the Company

b. Amount outstanding for payments to SSI's Rs. 1,81,108.80.

c. Name of the SSI units to whom the Company owes any sum which is outstanding for more than 1 year:

(l)MBRAgrolnd. 1,81,108.80

d. The above information has been compiled to the extent to which the parties could be identified as Small Scale and ancillary undertakings on the basis of the information made available by the Company.

3. Interest @ 12% has been charged by the company during the year on the loan outstanding from State Bank of India. Confirmation from the bank is not received for balance outstanding in respect of the loan.

4. Closing stock of packing materials is as valued and certified by the Managing Director.

5. Packing materials consumption is net of recovery.

6. Value of imports calculated on C.I.F. basis during the year

Raw Materials Rs. Nil (Previous Year - Nil)

There were no earnings in foreign currency during the year/previous year.

7. Balances in the accounts of debtors, creditors and financial institutions are subject to confirmation.

8. Deferred revenue expenditure amounting to Rs. 34,19,344.15 has been fully written off during the year in accordance with the regulations laid down in AS - 26 "Intangible Assets'.

9. The Company has started job work for KSCSC from January 2002 onwards and for KSE Limited from June 2003 onwards.

10. Previous year figures have been regrouped or recast wherever necessary to suit current year's layout.

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Mar 31, 2010

1. The amount of borrowing costs capitalized during the year is Nil

2. Claims against the company not acknowledged as debt - Nil

3. Closing stock of raw materials is as valued and certified by the Managing Director.

4. Packing materials consumption is net of recovery.

5. Value of imports calculated on C.I.F. basis during the year Raw Materials Rs. Nil (Previous Year - Nil)

There were no earnings in foreign currency during the year/previous year.

6. Previous year figures have been regrouped or recasted wherever necessary to suit current years layout.

7. Balances in the accounts of debtors, creditors and financial institutions are subject to confirmation.

8. During the period deferred revenue expenditure has not been written off.

9. Investment includes investments in equity share of M/s. Prima Industries Limited amounting Rs 1,01,95,280/- (previous year Rs. 1,01,95,280/-)

10. ESI and EPF dues to be remitted as at 31-03-2010 are Rs 7,023.00 and Rs. 29,443.00 respectively.

11. Unsecured loans include security deposit from dealers.

12. Information on dues to Small Scale Industrial Units.

a. No case of suppliers, who are covered under the "interest on delayed payments to Small Scale and Ancillary Industrial Undertaking Act, 1933" has come to the notice of the Company

b. Amount outstanding for payments to SSIs Rs 2,96,961.51.

c. Name of the SSI units to whom the Company owes any sum which is outstanding for more than 1 year:

(l)MBRAgrolnd. 1,81,108.80

(2) MAK Solvent 1,15,852.71

d. The above information has been compiled to the extent to which the parties could be identified as Small Scale and ancillary undertakings on the basis of the information made available by the Company.

13. The One Time Settlement scheme of bank was not fulfilled by the company till date and the date has not been extended by the concerned bankers.

14. Interest @ 12% has been charged by the company during the year on the loan outstanding from State Bank of India and Bank of India. No interest has been charged on loan from Kerala Financial Corporation.

15. Contingent liabilities on account of Sales Tax appeals filed by the Company relating to the previous years 1989- 90 to 1999-00 ( both CST and KGST) amounting to Rs 4,74,22,157/-(Previous year Rs 4,74,22,157/-) are not provided for in the accounts

16. Contingent liabilities on account of a lease agreement with Kerala Financial Corporation towards the balance amount payable by the Company amounting to Rs. 42,51,226/- (previous year Rs.42,51,226/-) has not been provided for in the accounts. Kerala Financial Corporation holds a first charge on the fixed assets of Flour Mill Division of the company.

17. Segment Reporting

The entire operations of the company constitute only one segment, viz manufacturing, processing and trading of Agro based products and hence AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India has not been made applicable.

18. Taxation:

No Provisions has been made for current taxes as per the provisions of Minimum Alternate Tax (MAT) under the Income Tax Act, 1961 due to unabsorbed depreciation and carry forward business losses.

There was no material deferred tax liability at the beginning of the year as the timing differences, if any, were absorbed earlier to that date. Same is the case for the current year. Deferred tax asset is not created as a measure of prudence.

19. The Company has started job work for KSCSC from January 2002 onwards and for KSE Limited from June 2003 onwards.

20. Additional particulars with regard to Sundry Debtors:

a) Debts considered good and in respect of which company is fully secured Rs. Nil (Previous year - Nil)

b) Debts for which company holds no security other than debtors personal security Rs.45,58,365.90/-

(Previous year Rs. 39,58,636/-) of which debts considered good and outstanding for less than six months Rs. Nil (Previous year - Nil)

c) Debts considered doubtful or bad, exceeding six months Rs.45,58,365.90/- (Previous year Rs. 39,58,636/-)

d) Debts due by Directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or companies in respect of which any director is a partner or a director or member - Rs 2,97,67,557.05.

e) The maximum amount due by directors or other officers of the company at any time during the year Rs. Nil (Previous year Nil)