Notes to Accounts of Shervani Industrial Syndicate Ltd.

Mar 31, 2024

13.2 Rights, Preferences and restrictions attached to Shares:

The Company has Equity & Deferred Shares and all Equity & Deferred Shares rank equally with regard to dividend and share in the Company''s residual assets. The Shareholders are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder inluding deferred shareholder on a poll (not on show of hands) are in proportion to its share in the paid- up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. In the event of liquidation of the Company, the holders of shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

14(a) Capital Subsidy Reserve

Capital Subsidy Reserve, represents the subsidy received from the Government in respect of capital investment made under the Central/State Government Investment Scheme.

14(b) General Reserve

General Reserve is the free Reserve arising out of profit earned by the company after appropriation till date.

14(c) Capital Redemption Reserve

Capital Redemption Reserve represents amount of buy back of company''s own shares and redemption of preference shares by paying out of Securities Premium Account and General Reserve. This reserve can be utilised in accordance with the provision of Companies Act, 2013.

14(d) Capital Reserve on Revaluation on Land

Capital Reserve on revaluation of land was created at the time of revaluation of land (Stock in trade).This reserve is utilised at the time of sale of land.

14(e) Retained Earnings

Retained earnings represent the cumulative profits of the company and effect of re-measurement of defined benefit obligations. This reserve can be utilised in accordance with the Companies Act, 2013.

14(f) Other Comprehensive Income

Other comprehensive Income (OCI) represents fair value changes of specified items which will be classified to statement of profit and loss in future.

31.1 The Company is entitled for MAT Credit Entitlement (as per Income tax Return) amounting to Rs. 895 Lacs but was not adjusted in the books in the relevant previous years due to non probability of future taxable profit for utilising the MAT Credit Entitlement in the foreseeable future. Therefore, earlier years MAT Credit Entitlement has not been accounted for in the books in Current Year & will be adjusted in the Books in the year when it will utilised.

36 Loan Given (ICD)

No terms of repayment have been specified regarding loan granted to Farco Foods Private Limited, the wholly owned subsidiary of the Company, of Rs. 639.73 Lacs (Rs. 489.73 Lacs net of Provision) being 100 % of total loans and advances in the nature of Loan.

37 Balance of personal account of Trade Receivable, Trade Payable, Unsecured Loans, Loans and advances, Security Deposits and other has not been confirmed and are subject to confirmation by the parties.

38 The Company has not received the required information from its suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act could not be prepare.

39 Contingent Liabilities and Commitments				(Rs. In Lakhs)
	Particulars	As At 31st March, 2024		As At 31st March, 2023
(a)	In respect of Income Tax Demand for Assessment Year 2018-19 for which appeal
	is filed with Income Tax Department		2839.62*	2839.62
(b)	In respect of Income Tax Demand for Assessment Year 2010-11 for which appeal
	is filed with Income Tax Department		109.54	109.54
*Rs. 223.29 Lakh has been deposited against demand of A.Y. 2018-19.
COMMITMENT
Estimated amount of contracts remaining to be executed on capital account and not provided for			Nil	Nil
Other committement			Nil	Nil

40 Financial Instruments and Related Disclosures Capital Management:

The Company''s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations basically through internal accruals. The Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a going concern.

41 FINANCIAL RISK MANAGEMENT OBJECTIVES:

The Company''s has proper system of risk management policies and procedure and internal financial control aimed at ensuring early identification Evaluation and Management of key financial risks (Such as credit risk, liquidity risk and market risk) that may cause as a consequence of business of operation as well as its investing and financial activities. Risk management policies and systems are reviewed regularly to reflect changes in market condition and the Company''s activities.

The Company has exposure to the following risks arising from financial instruments:

- Credit Risk

- Liquidity Risk

- Market Risk Credit Risk :

The risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

The Company''s historical experience of collecting receivables and the level of default indicate credit risk is low. The Company established an allowance for impairment that represents its expected credit losses in respect of trade receivable, loans and other receivable. During the year based on specific assessment, the Company has not recognised any trade receivable, loans and other receivable as bad debts.

Liquidity Risk :

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Prudent The company''s approach to managing liquidity is to ensure, as far as possible, that the company will have sufficient liquidity to meets its liabilities when they are due under both normal and stressed conditions without incurring unacceptable loss or damage to the company''s goodwill/ reputation .

The company''s current assets aggregate to Rs. 17749.58 lacs, Rs. (22223.39) lacs against an aggregate current liability of Rs. 5561.05 lacs, Rs. (11,670.29) lacs. non current liability of Rs. 1865.50 lacs, Rs. (92.71) Lacs on the reporting date 31-03-2024 and Previous year ended (31.03.2023) respectively. Further, while the company''s total equity Rs. 13378.84 lacs, Rs. (12481.84) lacs. It has total Borrowings Rs. 3143.86 lacs, Rs. (50.18) lacs .

In above circumstances, liquidity risk or the risk that the company may not be able to settle or meet obligations as they become due does not exist.

Market Risk :

The risk that the fair value or future Cash Flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

The Company is not an active investor in equity markets. The Company invests in mutual fund schemes of leading fund houses. Such an investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments.

FAIR VALUE MEASUREMENT:

Fair Value Hierarchy:

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1:

Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A quoted price in an active market provides the most reliable evidence of fair value and shall be used without adjustment to measure fair value.

Level 2:

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3:

Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available.

The fair value of trade receivable, trade payable and current financial assets and liabilities is considered to be equal to the carrying amounts of these items due their short term nature.

42 The Government of India on September 20, 2019, vide the Taxation Law (Amendment) Ordinance 2019, inserted a new section 115BAA in the Income Tax Act, 1961 which provides domestic companies a non-reversible option to pay Corporate Tax at reduced rate effective, April 01,2019, subject to certain conditions. The Company is continuing to provide for income tax at old rates based on the available unutilised minimum alternative tax credit.

43 Previous year''s figures have been regrouped/reclassified and restated wherever necessary to correspond with the current year''s classification/ disclosure.

45 There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.

46 The Company has not entered in any Scheme of Arrangements and no Scheme of Arrangements has been approved by the Competent Authority in terms of section 230 to 237 of the Companies Act 2013.

47 The Company did not hold any Benami Properties and no proceedings has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibiton) Act, 1988 (45 of 1988) and rules made thereunder.

48 The Company is not declared willful defaulter by any bank or financial institution or any other lender.

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

50 All transactions have been recorded in the books of account and no unrecorded income has been disclosed during the year in the tax assessments under the Income-Tax Act, 1961. Moreover there are no unrecorded income and related assets pertaining to previous years.

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

52 The Company did not enter into any transactions with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956. There is no outstanding balances with struck off Companies.

54 The Company has not advanced or loaned or invested funds to any other persons or entities (intermediary) with the understanding that the intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner what so ever by or on behalf of the Company or shall provide guarantee, security or the like to or on behalf of the Company.

55 The Company has not received any fund from any other persons or entities (Funding Party) with the understanding that the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner what so ever by or on behalf of the Funding Party or shall provide guarantee, security or the like to or on behalf of the Funding Party.

58 Segment Reporting*

The Executive Management Committee being Board of Directors of the company examines the companies performance based on its products and has identified two reportable segments of its business:

a) Real Estate Business

b) Information Technology Business

Notes:

Revenue from single customer of more than 10% of company''s total revenue Real Estate Business : Nil

Information Techonology Business: Revenue of 1521.94 Lacs from Maulana Azad National Urdu University, Hyderabad ‘Segment Reporting is applicable from the Current Year and therefore previous year figures have not been disclosed.

59 Approval of Financial Statements

The Financial Statement were approved for publication by the Board of Directors on 24th May, 2024.

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Mar 31, 2023

1.10 Provisions, Contingent Liabilities & Contingent Assets

Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Where the time value of money is material, provisions are stated at the present value of the expenditure expected to settle the obligation.

All provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future uncertain events not wholly within the control of the company, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.

Contingent Assets are not recognised in the financial statements. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.

1.11 Earnings Per Share

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per shares is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per shares and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

1.12 Judgements, Estimates and Assumptions

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgements and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of financial statements and the amount of revenue and expenses during the reported period. Application of accounting policies involving complex and subjective judgements and the use of assumptions in these financial statements have been disclosed. Accounting estimates could change from period to period. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimate are recognised in the period in which the estimates are revised and, if material, their effects are disclosed in the notes to the financial statements.

1.12.1 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 recognised in the consolidated financial statements:

1.12.1.1 Formulation of Accounting Policies

Accounting policies are formulated in a manner that result in financial statements containing relevant and reliable information about the transactions, other events and conditions to which they apply. Those policies need not be applied when the effect of applying them is immaterial.

In the absence of an Ind AS that specifically applies to a transaction, other event or condition, management has used its judgement in developing and applying an accounting policy that results in information that is:

a) relevant to the economic decision-making needs of users and

b) reliable in that financial statements:

(i) represent faithfully the financial position, financial performance and cash flows of the entity;

(ii) reflect the economic substance of transactions, other events and conditions, and not merely the legal form;

(iii) are neutral, i.e. free from bias;

(iv) are prudent; and

(v) are complete in all material respects on a consistent basis.

In making the judgement management refers to, and considers the applicability of, the following sources in descending order:

(a) the requirements in Ind ASs dealing with similar and related issues; and

(b) the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the Framework.

In making the judgement, management considers the most recent pronouncements of International Accounting Standards Board and in absence thereof those of the other standard-setting bodies that use a similar conceptual framework to develop accounting standards, other accounting literature and accepted industry practices, to the extent that these do not conflict with the sources in above paragraph.

1.12.1.2 Materiality

Ind AS applies to items which are material. Management uses judgment in deciding whether individual items or groups of item are material in the financial statements.

Materiality is judged by reference to the size and nature of the item. The deciding factor is whether omission or misstatement could individually or collectively influence the economic decisions that users make on the basis of the financial statements. Management also uses judgement of materiality for determining the compliance requirement of the Ind AS. In particular circumstances either the nature or the amount of an item or aggregate of items could be the determining factor. Further an entity may also be required to present separately immaterial items when required by law.

1.12.2 Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

1.12.2.1 Impairment of Non-Financial Assets

There is an indication of impairment if, the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. Company considers individual PPE as separate cash generating units for the purpose of test of impairment. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

1.12.2.2 Taxes

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

1.12.2.3 Defined Benefit Plan

The cost of the defined benefit gratuity plan and other postemployment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations.

An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates.

Due to the complexities involved in the valuation and its longterm nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

1.12.2.4 Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

1.13 Recent Accounting Pronouncement

On 31st March, 2023, Ministry of Company Affairs has amended the Companies (Indian Accounting Standards) Amendment Rule, 2023, applicable from 1st April, 2023, as below:

Ind AS 103 - Business Combination

The amendment required the new disclosure in respect of date on which the transferee obtains the control of the transferor. The company does not expect the amendments to have any impact in its financials.

Ind AS 107- Financial Instruments Disclosure

The companies (Indian Accounting Standards) Amendment Rule 2023 has amended paragraph 21 and paragraph B5 of Ind AS 107, thereby requiring companies to disclose their Material Accounting Policy Disclosure rather than their significant accounting policy .The company does not expect the amendments to have any impact in its financials.

Ind AS 1 - Presentation of Financial Statements

The amendment states that:

- Companies should disclose the material accounting policies rather than the significant accounting policies.

- Clarifies that accounting policies relate to immaterial transactions, other events or conditions are themselves are immaterial and therefore need not to be disclosed. The company does not expect the amendments to have any impact in its financials.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendment rule 2023 inserted the definition of accounting estimate and omitted the change in accounting estimate. But the company does not expect the amendments to have any impact in its financials.

Ind AS 12 - Income Taxes

Amendment RULE 2023 have issued certain amendments to Ind AS 12 .The amendments have been Made to narrow the scope of initial recognition exemption, i.e., it no longer apply to transactions that, on initial recognition, give rise to equal taxable and deductible temporary difference. With effect from 1st April, 2023, the initial recognition exemption will be read as under:

- At the time of transaction, affect neither accounting profit nor taxable profit (tax loss);

- At the time of transaction, does not give rise to equal taxable and deductible temporary difference. the company does not expect the amendments to have any impact in its financials.

1.14 Abbreviation used

a. CGU Cash generating unit

b. DCF Discounted Cash Flow

c. FVTOCI Fair value through Other

Comprehensive Income

d. FVTPL Fair value through Profit & Loss

e. GAAP Generally accepted accounting

principal

f. Ind AS Indian Accounting Standards

g. OCI Other Comprehensive Income

h. P&L Profit and Loss

i. PPE Property, Plant and Equipment

j. SPPI Solely Payment of Principal and

Interest

14(a) Capital Subsidy Reserve

Capital Subsidy Reserve, represents the subsidy received from the Government in respect of capital investment made under the central/state Government Investment Scheme.

14(b) General Reserve

General Reserve is the free Reserve arising out of profit earned by the company after appropriation till date.

14(c) Capital Redemption Reserve

Capital Redemption Reserve represents the amount of buy back of Company''s own shares and redemption of Preference Shares by paying out of Securities Premium Account and General Reserve. This reserve can be utilised in accordance with the provision of Companies Act, 2013.

14(d) Capital Reserve on Revaluation on Land

Capital Reserve on Revaluation of Land was created at the time of Revaluation of Land (Stock in trade). This reserve is utilised at the time of sale of land.

14(e) Retained Earnings

Retained Earnings represent the cumulative profits of the company and effect of re-measurement of defined benefit obligations. This reserve can be utilised in accordance with the Companies Act , 2013.

14(f) Other Comprehensive Income

Other Comprehensive Income (OCI) represents fair value changes of specified items which will be classified to statement of profit and loss in future.

41 FINANCIAL RISK MANAGEMENT OBJECTIVES:

The Company''s has proper system of risk management policies and procedure and internal financial control aimed at ensuring early identification Evaluation and Management of key financial risks (Such as credit risk, liquidity risk and market risk)that may cause as a consequence of business of operation as well as its investing and financial activities. Risk management policies and systems are reviewed regularly to reflect changes in market condition and the Company''s activities.

The Company has exposure to the following risks arising from financial instruments:

- Credit Risk

- Liquidity Risk

- Market Risk Credit Risk :

The risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

The Company''s historical experience of collecting receivables and the level of default indicate credit risk is low. The company establish an allowance for impairment that represents its expected credit losses in respect of trade receivable, loans and other receivable. During the year based on specific assessment , the Company has not recognised any trade receivable, loans and other receivable as bad debts.

Liquidity Risk :

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Prudent the Company''s approach to managing liquidity is to ensure , as far as possible , that the Company will have sufficient liquidity to meets its liabilities when they are due under both normal and stressed conditions without incurring unacceptable loss or damage to the Company''s goodwill/reputation .

The Company''s Current Assets aggregate to Rs. 22,223.39 lakh against an aggregate Current Liability of Rs. 11,670.29 lakh. Non Current Liability of Rs.92.71 lakh on the reporting date (31-03-2023). Further, while the Company''s total Equity Rs. 12481.84 lakh. it has total borrowings Rs. 50.18 lakh.

In above circumstances , Liquidity Risk or the risk that the Company may not be able to settle or meet obligations as they become due does not exist.

Market Risk :

The risk that the fair value or future Cash Flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

The Company is not an active investor in equity markets. The Company invests in mutual fund schemes of leading fund houses. Such an investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments.

FAIR VALUE MEASUREMENT:

Fair Value Hierarchy:

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1:

Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A quoted price in an active market provides the most reliable evidence of fair value and shall be used without adjustment to measure fair value.

Level 2:

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3:

Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available.

The fair value of trade receivable, trade payable and current financial assets and liabilities is considered to be equal to the carrying amounts of these items due their short term nature.

42 The Government of India on September 20, 2019, vide the Taxation Law (Amendment) Ordinance 2019, inserted a new section 115BAA in the Income Tax Act, 1961 which provides domestic companies a non-reversible option to pay Corporate Tax at reduced rate effective, April 01,2019, subject to certain conditions. The Company is continuing to provide for income tax at old rates based on the available unutilised minimum alternative tax credit.

43 Previous year''s figures have been regrouped/reclassified and restated whereever necessary to correspond with the current year''s classfication/ disclosure.

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Mar 31, 2018

1. Balance of personal account of Debtors, Creditors, Unsecured Loans, Loans and advances Security Deposits and other had not been confirmed and are subject to confirmation by the parties.

2. Previous year''s figures have been regrouped/reclassified and restated wherever necessary to correspond with the current year''s classification/ disclosure.

3. The Company has not received the required information from Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act have not been made.

4. "Ind AS 101(First-Time Adoption of Indian Accounting Standards) provides a suitable point for accounting in accordance with Ind AS and is required to be mandatorily followed by first-time adopters. The Company has prepared the opening Balance Sheet as per Ind AS as of 1^st April,2016 (the transition date) by:"

(i) recognizing all assets and liabilities whose recognition is required by Ind AS.

(ii) not recognizing items of assets or liabilities which are not permitted by Ind AS.

(iii) reclassifying items from previous Generally Accepted Accounting Principles(GAAP) to Ind AS as required Under Ind AS, and

(iv) applying Ind AS in measurement of recognized assets and liabilities.

5. EVENTS AFTER THE REPORTING PERIOD:

After the reporting date, the following dividends are proposed by the Board of Directors and have not been recognised as liabilities and there are no tax consequences.

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Mar 31, 2015

1 Due to Closure of manufacturing operations all the employees have been retrenched except few employees in general administration of the Company. The Company has decided to make provision for retirement benefits on actual basis as on date of Balance Sheet instead of acturial valuation.

2 In view of uncertainty regarding availability of sufficient future taxable income, deferred tax assets arising out of timing difference of depreciation have not been considered in the accounts.

3 The useful life of fixed assets have been revised in accordance with Schedule II of the Companies Act, 2013. The assets whose useful life is already exhausted as on 01.04.2014, depreciation amounting to Rs. 10,87,044 has been adjusted to General Reserve.

Related Parties relationship as identified by the company and relied upon by the Auditors Following are the transactions with related parties as defined under Accounting Standared -18 issued by the Institute of Chartered Accountants of India

4 Contingent liabilities not provided for :

(a) Claims against the company not acknowledged as debts Amount indeterminate

(b) In respect of guarantee given by Company in favour of HDFC Bank Limited 1,00,00,000 1,00,00,000 on behalf of Shervani Hospitalities Limited, (an Associate Company) for credit facility extended to them

(c) In respect of guarantee given by Company in favour of Union Bank of India on 10,00,00,000 10,00,00,000 behalf of Omnitel Technologies Private Limited for credit facility extended to them

5 Based on the information available with the Company there are no dues payable to suppliers under the Micro Small and Medium Enterprises Development Act, 2006.

6 The figures of the previous year have been regrouped/rearranged wherever necessary.

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Mar 31, 2014

1 Due to Closure of manufacturing operations all the employees have been retrenched except few employees in general administration of the Company. The Company has decided to make provision for retirement benefits on actual basis as on date of Balance Sheet instead of actuarial valuation.

2 In view of uncertainty regarding availability of sufficient future taxable income, deferred lax assets arising out of timing difference of depreciation have not been considered in the accounts.

3 Contingent liabilities not provided for:

31.03.2014 31.03.2013 Rs. Rs.

(a) Claims against the Amount indeterminate company not acknowledged as debts

(b) In respect of guarantee given 1,00,00,000 1,00,00,000 by Company in favour of HDFC Bank Limited on behalf of Shervani Hospitalities Limited, (an Associate Company) for credit facility extended to them

(c) In respect of guarantee given 10,00,00,000 - by Company in favour of Union Bank of India on behalf of Omnitel Technologies Private Limited for credit facility extended to them

4 Based on the information available with the Company there are no dues payable to suppliers under the Micro Small and Medium Enterprises Development Act 2006.

5 The figures of the previous year have been regrouped/rearranged wherever necessary.

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Mar 31, 2013

1 Due to Closure of manufacturing operations all the employees have been retrenched except few employees in general administration of the Company. The Company has decided to make provision for retirement benefits on actual basis as on date of Balance Sheet instead of actuarial valuation.

2 In view of uncertainty regarding availability of sufficient future taxable income, deferred tax assets arising out of timing difference of depreciation have not been considered in the accounts.

3 Related Party Disclosures

Relationship A. Subsidiary Company Farco Foods Private Ltd.

B Associate Companies Shervani Sugar Syndicate Ltd.

Shervani Hospitalities Limited

Voungtronics India Private Limited .

C Key Management Personnel

Mr. S.l. Shervani Managing Director

Mr. Tahir Hasan Vice Chairman

and their relatives

Related Parties relationship as identified by the company and relied upon by the Auditors following are the transactions with related parties as defined under Accounting Standared -18 issued by the Institute of Chartered Accountants of India

4 Based on the information available with the Company there are no dues payable to suppliers under the Micro Small and Medium Enterprises Development Act 2006.

5 The figures of the previous year have been regrouped/rearranged wherever necessary.

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Mar 31, 2012

1 The Company has investment in 3,00,000 Equity Shares of Rs.10/- each, Preference Shares of Rs. 5,00,00,000, Unsecured Debentures of Rs. 5,00,00,000 and Loan of Rs. 19,55,64,000 in Shervani Sugar Syndicate Limited. The Company holds a provision of Rs. 4,00,00,000 for possible losses against said loan. Board for Industrial and Financial Reconstruction has sanctioned a Modified Rehabilitation Scheme for above Company on 14.09.2009. According to sanctioned scheme redemption of preference shares and repayment of Loans shall be made after rehabilitation period on interest free basis.

2 Due to Closure of manufacturing operations all the employees have been retrenched except few employees in General Administration of the Company. The Company has decided to make provision for retirement benefits on actual basis as on date of Balance Sheet instead of acturial valuation.

3 In view of uncertainty regarding availability of sufficient future taxable income, deferred tax assets arising out of timing difference of depreciation have not been considered in the accounts.

4 Contingent liabilities not provided for:

Year ended Year ended 31.03.2012 31.03.2011 Rs. Rs.

(a) Claims against the company not acknowledged as debts Amount indeterminate

(b) In respect of guarantee given by Company in favour ot HDFC Bank Limited 1,00,00,000 1,00,00,000 on behalf of Shervani Hospitalities Limited, (an Associate Company) for credit facility extended to them

5 Based on the information available with the Company there are no dues payable to suppliers under the Micro Small and Medium Enterprises Development Act 2006.

6 The figures of the previous year have been regrouped/rearranged wherever necessary.

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Mar 31, 2010

1 Contingent liabilities not provided for: As at 31.03.2010 As at 31.03. 2009 Claims against the company not acknowledged as debts Amount indeterminate

In respect of guarantee given by Company in favour of HDFC Bank Limited on behalf of Shervani Hospitalities Ltd. (a Associates Company) for Credit Facility extended to them Rs. 100,00,000.

2 Current Liabilities - "Sundry Creditors/other Liabilities" shown in Schedule 11 include Rs.52816 payable to Directors and Loans & Advances shown in Schedule 10 include Rs.45475 recoverable from Director. (Previous Year payable amount Rs.86230 & Rs. 43614 respectively)

3 The Company has investment in 300,000 Equity Shares of Rs. 10/-, Preference Shares of Rs. 50,000,000 Unsecured Debentures of Rs. 50,000,000 and Loan of Rs. 135, 564,000 in Shervani Sugar Syndicate Limited. The Company holds a provision of Rs. 40,000,000 for possible losses against said loan, Board for Industrial and Financial Reconstruction has sanctioned a Modified Rehabilitation Scheme for above Company on 14.09.2009. According to sanctioned scheme redemption of preferene shares and repayment of Loans ahall be made after rehabilitation period on interest free basis.

4. Due to Closure of manufacturing operations all the employees have been retrenched except few employees in General Administration of the Company. The Company has decided to make provision for retirement benefits on actual basis as on date of Balance Sheet instead of acturial valuation.

5. In view of uncertainty regarding availability of sufficient future taxable income, deferred tax assets arising out of timing difference of depreciation have not been considered in the accounts.

6. Related Party disclosures. Relationship

A Subsidiary Company

Farco Foods Pvt. Limited

B. Associate Companies

Shervani Sugar Syndicate Limited

Shervani Hospitalities Limited

Youngtronics India Private Limited

C Key Management Personnel

Mr. S.I. Shervani Managing Director

Mr. Tahir Hasan Vice Chairman

Mr. Raju Verghese Director and their relatives

7 Based on the information available with the Company there are no dues payable to suppliers under the Micro Small and Medium Enterprises Development Act 2006.

8 The figures of the previous year have been re grouped/rearranged wherever necessary.