Notes to Accounts of Prima Industries Ltd.

Mar 31, 2025

m. Provisions and contigencies

The Company creates a provision when there is a present obligation as a result of a past event that probably requires
an outflow of resources and a reliable estimate can be made of the amount of the obligation.A disclosure for a
contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not,
require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions for onerous contracts i.e. contracts where the expected unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be received under it, are recognised when it is probable that an
outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an
obligating event, based on a reliable estimate of such obligation.

One Time Settlement with Banks

The interest waiver obtained on one time settlement with banks during the year 2011 - 12 and 2012 - 13 have been
credited to profit & loss account. The interest waiver obtained in earlier years has been reduced from the brought
forward losses and the principal amount waived were credited to the Capital Reserves.

The One Time Settlement amount for the Term Loan includes the value of Cumulative Redeemable Preference Shares
allotted to the Bank, against overdue interest upto 31/03/2012 and converting the outstanding Principal amount and
converting the present value of savings on account of reduction in rate on a restructuring . The One Time Settlement
amount net of the value of the Cumulative Preference shares is considered to be principal amount waiver and the entire
interest outstanding as per books is considered to be waived and has been reduced from the brought forward losses.

1 The Company has only one class of shares referred to as Equity Shares having a par value of Rs.10/- per share. Each holder of Equity Shares is entitled to one vote per
share.

2 The company declares and pays dividend in Indian Rupees. The dividend when proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. For the current year,no dividend is proposed by Board of Directors

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

4 During the year there was no change in the number of shares outstanding at the beginning and at the end of the year.

Equity shares movement during the 5 years preceding 31 March 2025

A. Equity shares allotted as fully paid-up pursuant to contract without payment being received in cash

No equity shares were issued in terms of scheme of amalagamation

B. Equity shares issued as bonus

No equity shares were alloted as fully paid up bonus shares by capitalisation of profits transferred from retained earnings pursuant to an ordinary resolution passed after taking the
consent of shareholders through postal ballot.

C. Equity shares extinguished on buy-back

No equity shares were bought back during the 5 preceding years as at 31st March 2025.

Preference share

(i) The Company has only one class of Preference Shares (non-convertible cumulative redeemable ) having a face value of Rs. 10/- per share.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights.

Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to
receive (i.e. All cash shortfalls) discounted at the original effective interest rate.

While estimating cash flows, Company considers all contractual terms of financial Instrument over the expected life of the financial instrument including cash flows from the sale
of collateral held that are integral to contractual terms.

The company follows ‘simplified approach’ for recognition of impairment loss allowance on:

- Trade receivables or contract revenue receivables; and

- impairment allowance based on lifetime ECL at each reporting date, right from its initial recognition.

No allowance has been made for ECL during the year (Previous year Nil) as the Management is of the opinion that all debtors other than those specifically provided for are
realisable in its entirety. This is evidenced by the fact that debtors position of the Company has substantially improved as compared to the previous financial year.

NOTE 32 :Operating segments

1 Primary Segment Information(By Business Segment)

The company''s primary segments have been identified as

(a) Cattle Feed Division

(b) Oil Cake Processing Division.

There are no reportable secondary segments.

NOTE 33 : General

1 Set off has been made to the extent debit balances could be linked with corresponding credit balances

2 The amounts in the financial statements are presented in rupees in hundereds

3 Personal balances are subject to confirmation

4 Previous year figures have been regrouped and reclassified wherever necessary to correspond to the current year’s classification/disclosure.

Other Statutory Information

1 The Company does not have any Immovable Property whose title deeds are not held in the name of the Company.

2 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

3 The Company has utilised funds raised from issue of securities or borrowings from banks and financial institutions for the specific purposes for which they were issued/taken.

4 The Company has not obtained any borrowings from banks or financial institutions on the basis of security of current assets.

The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the
end of reporting period but before the date when financial statements are approved.

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:

7 (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.

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

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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

9 The provisions of Corporate Social Responsibility under Section 135 of the Companies Act, 2013 are not applicable to the Company.

10 The Company does not have any transactions with struck-off companies.

T ^ The Company does not have any transaction which is not recorded in the books of accounts but 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).

12 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers)

¹³ Rules, 2017.

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

¹⁵ The company has failed to redeem preference shares issued on 24th July 2002 amounting to Rs 5,19,74,030 held by Ayyappa Roller Flour Mills Limited which were due for
redemption since July 2022, which is not in compliance with Section 55 of Companies Act, 2013. We are also informed that the Company have placed a petition with the Hon’ble
NCLT on 25th February 2025 for the redemption of the unredeemed preference shares and to issue further 51,97,403 cumulative redeemable preference shares of Rs 10 each to the
existing shareholder , for a term of 20 years from the date of issue on the same terms and conditions.

As per our report of even date attached For and on behalf of the Board of Directors

For G Joseph & Associates Prima Industries Limited

Chartered Accountants
(Reg. No.006310S)

P.RAJAGOPAL Swati Gupta Sajjan Kumar Gupta

Partner Director Managing Director

M.No.202134 DIN- 00249036 DIN- 00248760

Kushagra Gupta Malavika S Kumar

Place : Cochin (CFO) Company Secretary

Date : 27-05-2025

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Mar 31, 2024

Rights, Preferences and Restrictions attached to equity Shares

1 The Company has only one class of shares referred to as Equity Shares having a par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share.

2 The company declares and pays dividend in Indian Rupees. The dividend when proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. For the current year,no dividend is proposed by Board of Directors

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

4 During the year there was no change in the number of shares outstanding at the beginning and at the end of the year.

Equity shares movement during the 5 years preceding 31 March 2024

A. Equity shares allotted as fully paid-up pursuant to contract without payment being received in cash

No equity shares were issued in terms of scheme of amalgamation

B. Equity shares issued as bonus

No equity shares were alloted as fully paid up bonus shares by capitalisation of profits transferred from retained earnings pursuant to an ordinary resolution passed after taking the consent of shareholders through postal ballot.

C. Equity shares extinguished on buy-back

No equity shares were bought back during the 5 preceding years as at 31st March 2024.

Preference share

(i) The Company has only one class of Preference Shares (non-convertible cumulative redeemable ) having a face value of Rs.10/- per share.

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employees after completion of 5 years of service. The Gratuity liability has not been externally funded. Company makes provision of such gratuity liability in the books of accounts on the basis of company''s own valuation.

i. Term Loan for Vehicle

The Company has availed term loan from ICICI bank for purchase of vehicle on hypothecation of vehicle. The loan is for Rs.55,90,000 which carries an interest rate of 7.35% and repayable in 60 installments.

ii. ICICI Bank Loan

The Company has availed house loan from ICICI Bank for the construction of building. The loan is for Rs. 2,71,73,943 which carries floating interest rate and repayable in 240 monthly installments. As at Balance Sheet date the Company has not delayed the repayment, of principal and interest

(b) Performance obligations

(i) Sale of Refined oil

The Performance obligation is satisfied upon delivery of the good and payment is generally done on weekly basis.

(ii) Service Income

The Performance obligation is satisfied at the point in time and payment is generally due upon completion of installation or repair and acceptance of the customer

NOTE 28 : Contingent liabilities and Commitments
Particulars		As at March 31, 2024	As at March 31, 2023
a.	Claims against the company not acknowledged as debt;	Nil	Nil
b.	Guarantees;
	- Guarantees issued by the bank	Nil	Nil
c.	Other money for which the company is contingently liable	Nil	Nil
d.	Claims against the Company not acknowledged as debts
	- Sales Tax demand disputed by the Company	Nil	Nil
	- Central Sales Tax demand disputed by the Company	Nil	Nil
	- KGST demand disputed by the Company	Nil	Nil
	- Penalty disputed by the Company	Nil	Nil
e.	Estimated amount of contracts remaining to be executed on capital account and not provided for;	Nil	Nil
f.	Uncalled liability on shares and other investments partly paid	Nil	Nil
g.	Other commitments - Dividend on Cumulative Reedemable Preference Shares.	8,35,792	11,71,714
In view of the Carried forward loss and financial crunch of the Company it was not possible to propose dividend		in respect of 10% cumulative preference shares.

NOTE 31 : Financial Instruments and risk management

1 The Company has disclosed all the financial assets and liabilities at amortized cost.

2 The Company’s board of directors has overall responsibility for the establishment and oversight of the company’s risk management framework. The Company’s risk management policies are established to identify and analyze the risks faced by

the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company’s activities.

3 Expected credit loss

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance, lease receivables, trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 18, financial guarantee contracts which are not measured as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights.

Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. All cash shortfalls) discounted at the original effective interest rate.

While estimating cash flows, Company considers all contractual terms offinancial Instrument over the expected life of the financial instrument including cash flows from the sale of collateral held that are integral to contractual terms.

The company follows ‘simplified approach’ for recognition of impairment loss allowance on:

- Trade receivables or contract revenue receivables; and

- impairment allowance based on lifetime ECL at each reporting date, right from its initial recognition.

No allowance has been made for ECL during the year (Previous year Nil) as the Management is of the opinion that all debtors other than those specifically provided for are realisable in its entirety. This is evidenced by the fact that debtors position of the Company has substantially improved as compared to the previous financial year.

NOTE 32 :Operating segments

1 Primary Segment Information(By Business Segment)

The company''s primary segments have been identified as

(a) Cattle Feed Division

(b) Oil Cake Processing Division.

There are no reportable secondary segments.

NOTE 33 : General

1 Set off has been made to the extent debit balances could be linked with corresponding credit balances

2 The amounts in the financial statements are presented in rupees in hundereds

3 Personal balances are subject to confirmation

4 Previous year figures have been regrouped and reclassified wherever necessary to correspond to the current year’s dassification/disdosme.

Other Statutory Information

1 The Company does not have any Immovable Property whose title deeds are not held in the name of the Company.

2 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

The Company has utilised funds raised from issue of securities or borrowings from banks and financial institutions for the specific purposes for which they were issued/taken.

4 The Company has not obtained any borrowings from banks or financial institutions on the basis of security of current assets.

The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when financial statements are approved.

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:

7 (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.

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

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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

9 The provisions of Corporate Social Responsibility under Section 135 of the Companies Act, 2013 are not applicable to the Company.

10 The Company does not have any transactions with struck-off companies.

The Company does not have any transaction which is not recorded in the books of accounts but 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).

12 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

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

¹⁵ The company has failed to redeem preference shares issued on 24th July 2002 amounting to Rs 5,19,74,030 held by Ayyappa Roller Flour Mills Limited which were due for redemption since July 2022, which is not in compliance with Section 55 of Companies Act, 2013. We are also informed by the Board of Directors that a proposal to place a petition with the Hon’ble NCLT for the redemption of the unredeemed preference shares and to issue further 51,97,403 cumulative redeemable preference shares of Rs 10 each to the existing shareholder , for a term of 20 years from the date of issue on the same terms and conditions.

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Mar 31, 2015

Related party transactions

1 . Details of Related Parties:

Description of relationship Names of related parties

a. ) Key Management Personnel 1 . Mr. Sanjay Gupta (Managing Director)

2 . Mr. S.K. Gupta (Director)

b. ) Associates 1. Prima Agro Limited

2. Ayyappa Roller Flour Mills Limited

3. Prima Beverage Pvt Limited

4. Prima Credits Limited

2. Employee benefit plans 1 Gratuity plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employees after completion of 5 years of service. The Gratuity liability has not been externally funded. Company makes provision of such gratuity liability in the books of accounts on the basis of company's own valuation.

Particulars 31/03/2015 31/03/2014 (Rs.) (Rs.)

3. Contingent Liabilities

(a) Claims against the company not Nil Nil acknowledged as debt;

(b) Guarantees;

- Guarantees issued by the bank Nil Nil

(c) Other money for which the company is contingently liable

- Sales Tax demand disputed by the Company Nil Nil

- Central Sales Tax demand disputed by Nil Nil the Company

- KGST demand disputed by the Company 5,365,029 5,365,029

- Penalty disputed by the Company Nil Nil

4. Commitments

(a) Estimated amount of contracts Nil Nil remaining to be executed on capital

(b) Uncalled liability on shares and Nil Nil other investments partly paid

(c) Other commitments - Dividend on 11,197,403 11,197,403 Cumulative Reedemable Preference

5. Corporate information

Prima Industries Limited (the "Company"), Indian Company registered under the Indian Companies Act, 1956. The Company was promoted primarily for Solvent Extraction and also for the refining of Oil.

6. Basis of accounting and preparation of financial statements

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 ('the Act1). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and as sumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognised in the year in which they become known or materialises.

7. Use of estimates

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material ,their effects are disclosed in the notes to the financial statements.

8. The Working Capital Loans are secured by hypothecation of present and future goods, book debts and all other movable assets of the company and second charge on the fixed assets and further guaranteed by the Managing Director.

One Time Settlement with Banks

The interest waiver obtained on one time settlement with banks during the year 2011 - 12 and 2012 - 13 have been credited to profit & loss account. The interest waiver obtained in earlier years has been reduced from the brought forward losses and the principal amount waived were credited to the Capital Reserves. The OTS amount for the Term Loan includes the value of Cumulative Redeemable Preference Shares allotted to the Bank, against overdue interest upto 31/03/2012 and converting the outstanding Principal amount and converting the present value of savings on account of reduction in rate on a restructuring . The OTS amount net of the value of the Cumulative Preference shares is considered to be principal amount waiver and the entire interest outstanding as per books is considered to be waived and has been reduced from the brought forward losses.

9. In the opinion of the management, current assets, loans and advances will realise the values as stated in the Balance Sheet, if realised in the normal course of business.

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

11. As the company carries inventory of finished goods of various grade / quality, and the net realisable value of all such grade / quality are not available , the valuation is done based on the rates as certified by the Managing Director.

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Mar 31, 2014

1. Segment Reporting

Primary Segment Information(By Business Segment)

The company''s primary segment have been identified as

(a) Cattle Feed Division,

(b) Oil Cake Processing Division.

There are no reportable secondary segments.

2. Related party transactions

Description of relationship Names of related parties

a.) Key Management Personnel

1 . Mr. Sanjay Gupta (Managing Director)

2 . Mr. S.K. Gupta (Director)

b.) Associates

1. Prima Agro Limited

2. Ayyappa Roller Flour Mills Limited

3. Prima Beverage Pvt Limited

4. Prima Credits Limited

3. Employee benefit plans 1. Gratuity plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employees after completion of 5 years of service. The Gratuity liability has not been externally funded. Company makes provision of such gratuity liability in the books of accounts on the basis of company''s own valuation.

4. Contingent Liabilities and commitments (to the extent not provided for)

Particulars 31/03/2014 31/03/2013 (Rs.) (Rs.)

1. Contingent Liabilities

(a) Claims against the company not acknowledged as debt; Nil Nil

(b) Guarantees;

- Guarantees issued by the bank Nil Nil

(c) Other money for which the company is contingently liable

- Sales Tax demand disputed by the Company Nil Nil

- Central Sales Tax demand disputed by the Company Nil Nil

- KGST demand disputed by the Company 5,365,029 5,365,029

- Penalty disputed by the Company Nil Nil

Prima Industries Limited

No. V-679/C, Industrial Development Area, Muppathadam, Edayar, Cochin-683110

5 In the opinion of the management, current assets, loans and advances will realise the values as stated in the Balance Sheet, if realised in the normal course of business.

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

7 As the company carries inventory of finished goods of various grade / quality, and the net realisable value of all such grade / quality are not available, the valuation is done based on the rates as certified by the Managing Director.

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Mar 31, 2013

1 Employee benefit plans

Gratuity plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation.

The benefit vests on the employees after completion of 5 years of service. The Gratuity liability has not been externally funded. Company makes provision of such gratuity liability in the books of accounts on the basis of company''s own valuation.

2 Operating Lease

Operating Lease payments are recognised as expenses in the Profit & Loss Account for the year

3 Contingent Liabilities and commitments (to the extent not provided for)

1 Contingent Liabilities

(a)Claims against the company not acknowledged as debt; Nil Nil

(b)Guarantees;

- Guarantees issued by the bank Nil Nil

(c)Other money for which the company is contingently liable

- Sales Tax demand disputed by the Company Nil Nil

- Central Sales Tax demand disputed by the Company Nil Nil

- Penalty disputed by the Company Nil Nil

1 Corporate information

Prima Industries Limited (the "Company") , Indian Company registered under the Indian Companies Act, 1956. The Company was promoted primarily for Solvent Extraction and also for the refining of Oil.

4.1 Basis of accounting and preparation of financial statements

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 (‘the Act''). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognised in the year in which they become known or materialises.

4.2 Use of estimates

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material ,their effects are disclosed in the notes to the financial statements.

5 The Working Capital Loans are secured by hypothecation of present and future goods, book debts and all other movable assets of the company and second charge on the fixed assets and further guaranteed by the Managing Director.

One Time Settlement with Banks

The interest waiver obtained on one time settlement with banks during the year 2011 - 12 and 2012 - 13 have been credited to profit & loss account. The interest waiver obtained in earlier years has been reduced from the brought forward losses and the principal amount waived were credited to the Capital Reserves.

The OTS amount for the Term Loan includes the value of Cumulative Redeemable Preference Shares allotted to the Bank, against overdue interest upto 31/03/2012 and converting the outstanding Principal amount and converting the present value of savings on account of reduction in rate on a restructuring . The OTS amount net of the value of the Cumulative Preference shares is considered to be principal amount waiver and the entire interest outstanding as per books is considered to be waived and has been reduced from the brought forward losses.

6 In the opinion of the management, current assets, loans and advances will realise the values as stated in the Balance Sheet, if realised in the normal course of business.

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

8 As the company carries inventory of finished goods of various grade / quality, and the net realisable value of all such grade / quality are not available , the valuation is done based on the rates as certified by the Managing Director.

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Mar 31, 2012

I(a) The term loan from the Industrial Development Bank of India are secured by way of first charge on movable and immovable properties of the company and further guaranteed by the Managing Director of the Company.

(b) The Working Capital Loans are secured by hypothecation of present and future goods, book debts and all other movable assets of the company and second charge on the fixed assets and futher guaranteed by the Managing Director.

ii As per the One Time Settlement Scheme, Bank of India waived the loan amount of Rs. 9,500,000.00 and interest of Rs. 5,293,250.00 and IDBI waived an interest of Rs. 3,387,880.00.

iii Amount of current maturities disclosed under the head "Other Current Liabilities". (Refer Note 8)

1 Segment Reporting

Primary Segment lnformation(By Business Segment)

The company's primary segment have been identified as (a) Cattle Feed Division, (b) Oil Cake Processing Division.

There are no reportable secondary segments.

2 Employee benefit plans

1 Gratuity plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/ resignation. The benefit vests on the employees after completion of 5 years of service. The Gratuity liability has not been externally funded. Company makes provision of such gratuity liability in the books of accounts on the basis of company's own valuation.

3 Operating Lease

Operating Lease payments are recognised as expenses in the Profit & Loss Account for the year

4 Contingent Liabilities and commitments (to the extent not provided for)

1 Contingent Liabilities

(a)Claims against the company not acknowledged as debt; Nil Nil

(b)Guarantees;

- Guarantees issued by the bank Nil Nil

(c)Other money for which the company is contingently liable

- Sales Tax demand disputed by the Company Nil 147,557,419

- Central Sales Tax demand disputed by the Company Nil 7,165,039

- Penalty disputed by the Company Nil 2,994,080

2 Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for; Nil Nil

(b)Uncalled liability on shares and other investments partly paid Nil Nil

(c)Other commitments (specify nature). Nil Nil

5 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

Notes to financial statements for the year ended March 31, 2012

1 Corporate information Prima Industries Limited (the "Company"), Indian Company registered under the Indian Companies Act, 1956. The Company was promoted primarily for Solvent Extraction and also for the refining of Oil.

6.1 Basis of accounting and preparation of financial statements

The Financial Statements have been prepared on the historical cost convention. These statements have been prepared in accordance with the generally accepted accounting principles and the applicable Mandatory Accounting Standards and relevant requirements of The Companies Act, 1956 ('the Act'). The accounting policies have been consistently applied by the Company. The preparation required adoption of estimates and assumptions that can affect the reported amounts of revenue and expenditure and the assets and liabilities as well as the disclosure of contingent liabilities. Differences between the actual results and estimates are recognised in the year in which they become known or materialises.

6.2 Use of estimates

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material , their effects are disclosed in the notes to the financial statements.

7. The Working Capital Loans are secured by hypothecotion of present ond future goods, book debts and all other movable assets of the company and second charge on the fixed assets and further guaranteed by the Managing Director.

One Time Settlement with Banks

The interest amount waived by the banks as per the Scheme has been reduced from the brought forward losses and the principal amount waived were credited to the Capital Reserves.

The OTS amount for the Term Loan includes the value of Cumulative Redeemable Preference Shares allotted to the Bank, against overdue interest upto 31 /03/2012 and converting the outstanding Principal amount and converting the present value of savings on account of reduction in rate on a restructuring . The OTS amount net of the value of the Cumulative Preference shares is considered to be principal amount waiver and the entire interest outstanding as per books is considered to be waived and has been reduced from the brought forward losses.

8. In the opinion of the management, current assets, loans and advances will realise the values as stated in the Balance Sheet, if realised in the normal course of business.

9. All bank balances (except BOI.Canara Bank,ICICI-18031,IOB-l 12,Statebankof Travancore and State Bank of India) are subject to reconciliation and confirmation.

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

11. The working capital loans are subject to reconciliation and confirmation. Interest is provided on the outstanding loan amounts as per the OTS scheme.

12. As the company carries inventory of finished goods of various grade / quality, and the net realisable value of all such grade / quality are not available , the valuation is done based on the rates as certified by the Managing Director.

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Mar 31, 2010

1 Background

Prima Industries Limited (the "Company"), Indian Company registered under the Indian Companies Act, 1956. The Company was promoted primarily to manufacture Cattle Feed and also for the refining of Oil.

2 a) The term loans from the Industrial Development Bank of India are secured by way of first charge on the movable and immovable properties of the company and further guaranteed by the Managing Director of the Company.

b) The Working Capital Loans are secured by hypothecation of present and future goods, book debts and all other movable assets of the company and second charge on the fixed assets and further guaranteed by the Managing Director.

3 Companys offer for the settlement of dues to the Banks on One Time Settlement (OTS) have been approved by them.

One Time Settlement with Banks

The interest amount waived by the banks as per the Scheme has been reduced from the brought forward losses and the principal amount waived were credited to the Capital Reserves.

The OTS amount for the Term Loan includes the value of Cumulative Redeemable Preference Shares allotted to the Bank, against overdue interest upto 31/03/2001 and converting the outstanding Principal amount and converting the present value of savings on account of reduction in rate on a restructuring . The OTS amount net of the value of the Cumulative Preference shares is considered to be principal amount waiver and the entire interest outstanding as per books is considered to be waived and has been reduced from the brought forward losses.

4 Investments Rs. 1,00,000.00 represents 20 "IDBI growing interest Bond , 1998" of face value Rs. 5000/- each.

5 In the opinion of the management, current assets, loans and advances will realise the values as stated in the Balance Sheet, if realised in the normal course of business.

6. All bank balances (except federal Bank - II8402UUI5648,1C1C1-U262O5U0U292, Indian Overseas Bank A/c No 352 and State Bank of India) are subject to reconciliation and confirmation.

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

8 The term loans and working capital loans are subject to reconciliation and confirmation. Interest is provided on the outstanding loan amounts as per the OTS scheme.

As the company carries inventory or timsnea gooas oi various grade / quality, and me net realisable value ot an

9 such grade / quality are not available , the valuation is done based on the rates as certified by the Managing Director.

10 Contingent liabilities not provided for

2009-10 2008-09

a) - Sales Tax demand disputed by the Company 9,007,329 9,007,329

- Central Sales Tax demand disputed by the company 54,406 54,406

- Penalty disputed by the company 2,994,080 2,994,080

b) Estimated amount of contracts remaining to be executed on capital account and not provided for Nil Nil

15 Disclosure in respect of Related Parties pursuant to Accounting Standard 18

1 List of Related Parties

Parties where control exists - Nil

II. Other Related parties with whom the Company has entered into transactions during the year

i) Associates For details on the Related Party Transactions, Please Refer Annexure 2

ii) Key Managerial Personnel and Enterprises having common Key Management Personnel or their relatives : Key Managerial Personnel :

Shri Sanjay Gupta - Managing Director

Shri S K Gupta - Chairman

11 Additional information pursuant to the provision of part II of schedule VI to the Companies Act,1956.

I Licensed and Installed Capacity and Production (Previous Years Figures are in brackets) (Installed capacity being a technical matter is as certified by the Managing Director and accepted by the auditors)

Licensed N.A.

Installed Oil Extraction 500TPD

(500TPD) Refining 50TPD

(50TPD)

CPD 5TPD

(5TPD)

12 CIF value of imports Nil Nil

13 Taxation

1 Provision for Current Tax :

The company does not have any income tax liability during the year.

2 Deferred Taxation

The company has not recognised the Deferred Tax Asset as it is not anticipated to generate enough profits to set off the losses in the forseeable future. Consequently, the deferred tax liability for the year has also not been considered in the accounts as it would only set off a part of the unrecognised deferred tax asset.

14 Applicability of Accounting Standards

"The company is a Level 1 Enterprise as defined in the General instructions in respect of Accounting Standards notified under the Companies Act, 1956. Accordingly the company has complied with the Accounting Standards as applicable to a Level 1 Enterprise.

15 Previous years figures have been re-grouped/recast whereever necessary to suit current year layout.