Notes to Accounts of Simran Farms Ltd.

Mar 31, 2024

i. Provisions, Contingent Liabilities and Contingent Assets and Commitments

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

A disclosure for a contingent liability is made when there is possible obligation or an obligation that may, but probably will not require an outflow of resources embodying the economic benefits or the amount of such obligation cannot be measured reliably. When there is possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying the economic benefits is remote, no provision or disclosure is made.

Contingent assets are not recognized. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, and is recognized as an asset.

Commitments are future liabilities for contractual expenditure, classified and disclosed as estimated amount of contracts remaining to be extracted on capital account and not provided for.

j. Revenue recognition

Revenue is measured at the fair value of consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade discount or rebates. The Company recognizes revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the Company.

Revenue from Sale of goods

Revenues from sales of goods are recognized upon transfer of control of promised goods to customer, which are generally on dispatch of goods and the customer has accepted the products in accordance with the agreed terms. There is no continuing managerial involvement with the goods and the Company retains no effective control of goods transferred to a decree usually associated with ownership. Revenue from sales of goods is based on the price quoted in the market or price specified in the sales contracts.

k. Other Income

Other Income is comprised primarily of interest income, Rearing charges. Insurance Claim Received against loss of stock due to fire occurred in the Rented premises of M/s Early Bird Hatcheries in F.Y. 2021-22. Interest income is recognized on accrual basis. Rearing charges are recognized when right to receive is established.

l. Investments and other financial assets Classification

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

• those measured at amortized cost

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit and loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held.

Measurement

All financial assets are recognized initially at fair value. In the case of financial assets not recorded at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset are included in the value of financial assets. Transaction costs of financial assets carried at fair value through profit or loss are charged in Statement of Profit and Loss.

Derecognition of financial assets

A financial asset is derecognized only when

• The Company has transferred the rights to receive cash flows from the financial asset or

• Retains the contractual rights to receive the cash flows of the financial asset but assumes a contractual obligation to pay cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized. Where the Company has not transferred substantially all risks and rewards of ownership of financial asset, the financial asset is not derecognized. Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognized if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in the financial asset.

m. Borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as the effective interest rate amortization process.

Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included as finance cost in the statement of profit and loss.

n. Segment Reporting

An entity shall disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates.

Operating segments are reported in a manner consistent with the internal reporting provided to the management of the company.

The company has been primarily engaged in Poultry Breeding & Farming activities only. As such there is no identifiable operating segment, hence there is nothing to disclose under IND AS-108 ''Operating Segment''.

o. Code on Social Reporting

The Code on Social Security, 2020 (the ''Code'') relating to employee benefits during employment and post-employment benefits received the President''s assent on September 28, 2020. The Code has been published in the Gazette of India. The Ministry of Labour and Employment has released the draft Rules for the Code on November 13, 2020 and has invited suggestions from the stakeholders. However, the date on which the Code/Rules will come to effect has not been notified.

The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

p. Corporate Social Responsibility

Section 135 of the Companies Act, 2013 mandates every company having minimum threshold limit of net worth, turnover or net profit as prescribed to constitute a Corporate Social Responsibility Committee of the Board, formulation of a Corporate Social Responsibility Policy that shall indicate the activities to be undertaken by the Company as specified in Schedule VII to the Companies Act, 2013 and duly approved by the Board, fix the amount of expenditure to be incurred on the activities and monitor the CSR Policy from time to time.

In line with Companies Act,2013 Corporate Social Responsibility is not applicable to the company for the financial year 2023-24.

q. Financial Risk Management

Risk management framework-

The Company has in place a mechanism to inform the Board about the risk assessment and minimization procedures and periodical review to ensure that management controls risk through means of a properly defined framework. The Company has formulated and adopted Risk Management Policy to prescribe risk assessment, management, reporting and disclosure requirements of the Company.

The Company''s principal financial assets include investments in equity shares, loans, trade and other receivables, and cash and cash equivalents that the Company derives directly from its operations.

(A) Credit risk:

Trade and Other receivables:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s trade and other receivables. The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade receivables are derived from revenue earned from customers located in India. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Credit risk on cash and cash equivalents is assessed as low risk as the Company deposits cash surpluses with financial institutions of high quality and standing.

Summary of the Company''s exposure to credit risk by age of the outstanding from various customers is as follows:

(B) Liquidity Risk

The Company actively monitors its cash flows to ensure there is sufficient cash available to meet its working capital requirements. Due to the dynamic nature of the underlying businesses, the Company maintains flexibility in funding by maintaining availability under committed credit lines. Management

(C) Market Risk Interest Rate Risk

The Company is exposed to interest rate risk on its cash and cash equivalents, long-term loans and borrowings, which can have an impact on the cash flows of these instruments. The exposure to interest rate risk is managed through the Company''s Board by using counterparties that offers the best rates which enables the Company to maximize returns whilst minimizing risk.

(D) Maturities of Financial Liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.

(E) Interest Rate Risk Exposure

Company''s interest rate risk arises from borrowings. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows:

r. Long Term Contracts

The Group has a process whereby periodically all long-term contracts are assessed for material foreseeable losses. At the year-end, the Group has reviewed all such contracts and confirmed that no provision is required to be created under any law / accounting standard towards any foreseeable loss.

For: Khandelwal Kakani & Co.

Chartered Accountants

FRN. 001311C Harender Singh Bhatia Gurmeet Singh Bhatia

Managing Director Wholetime Director

DIN 00509426 DIN 00401697

CA V. K. Khandelwal Partner

M. No.: 070546 Mahesh Patidar Tanu Parmar

Place: Indore Chief Financial Officer Company Secretary

Date: 23r^d May, 2024 (M. No. 34769)

UDIN: 24070546BKEEJE5128

---

Mar 31, 2023

i. Provisions, Contingent Liabilities and Contingent Assets and Commitments

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

A disclosure for a contingent liability is made when there is possible obligation or an obligation that may, but probably will not require an outflow of resources embodying the economic benefits or the amount of such obligation cannot be measured reliably. When there is possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying the economic benefits is remote, no provision or disclosure is made.

Contingent assets are not recognized. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, and is recognized as an asset.

Commitments are future liabilities for contractual expenditure, classified and disclosed as estimated amount of contracts remaining to be extracted on capital account and not provided for.

j. Revenue recognition

Revenue is measured at the fair value of consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade discount or rebates. The Company recognizes revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the Company.

Revenue from Sale of goods

Revenues from sales of goods are recognized upon transfer of control of promised goods to customer, which are generally on dispatch of goods and the customer has accepted the products in accordance with the agreed terms. There is no continuing managerial involvement with the goods and the Company retains no effective control of goods transferred to a decree usually associated with ownership. Revenue from sales of goods is based on the price quoted in the market or price specified in the sales contracts.

k. Other Income

Other Income is comprised primarily of interest income, Rearing charges. Interest income is recognized on accrual basis. Rearing charges are recognized when right to receive is established.

l. Investments and other financial assets Classification

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

• those measured at amortized cost

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit and loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held.

Measurement

All financial assets are recognized initially at fair value. In the case of financial assets not recorded at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset are included in the value of financial assets. Transaction costs of financial assets carried at fair value through profit or loss are charged in Statement of Profit and Loss.

Derecognition of financial assets

A financial asset is derecognized only when

• The Company has transferred the rights to receive cash flows from the financial asset or

• Retains the contractual rights to receive the cash flows of the financial asset but assumes a contractual obligation to pay cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized. Where the Company has not transferred substantially all risks and rewards of ownership of financial asset, the financial asset is not derecognized.

Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognized if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in the financial asset.

m. Borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as the effective interest rate amortization process.

Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included as finance cost in the statement of profit and loss.

n. Segment Reporting

An entity shall disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates.

Operating segments are reported in a manner consistent with the internal reporting provided to the management of the company.

The company has been primarily engaged in Poultry Breeding & Farming activities only. As such there is no identifiable operating segment, hence there is nothing to disclose under IND AS-108 ''Operating Segment''.

o. Code on Social Reporting

The Code on Social Security, 2020 (the ''Code'') relating to employee benefits during employment and post-employment benefits received the President''s assent on September 28, 2020. The Code has been published in the Gazette of India. The Ministry of Labour and Employment has released the draft Rules for the Code on November 13, 2020 and has invited suggestions from the stakeholders. However, the date on which the Code/Rules will come to effect has not been notified.

The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

p. Corporate Social Responsibility

Section 135 of the Companies Act, 2013 mandates every company having minimum threshold limit of net worth, turnover or net profit as prescribed to constitute a Corporate Social Responsibility Committee of the Board, formulation of a Corporate Social Responsibility Policy that shall indicate the activities to be undertaken by the Company as specified in Schedule VII to the Companies Act, 2013 and duly approved by the Board, fix the amount of expenditure to be incurred on the activities and monitor the CSR Policy from time to time.

In line with Companies Act,2013 Corporate Social Responsibility is not applicable to the company for the financial year 2022-23.

q. Financial Risk Management

Risk management framework-

The Company has in place a mechanism to inform the Board about the risk assessment and minimization procedures and periodical review to ensure that management controls risk through means of a properly defined framework. The Company has formulated and adopted Risk Management

Policy to prescribe risk assessment, management, reporting and disclosure requirements of the Company.

The Company''s principal financial assets include investments in equity shares, loans, trade and other receivables, and cash and cash equivalents that the Company derives directly from its operations.

(A) Credit risk:

Trade and Other receivables:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s trade and other receivables. The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade receivables are derived from revenue earned from customers located in India. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Credit risk on cash and cash equivalents is assessed as low risk as the Company deposits cash surpluses with financial institutions of high quality and standing.

Summary of the Company''s exposure to credit risk by age of the outstanding from various customers is as follows:

(B) Liquidity Risk

The Company actively monitors its cash flows to ensure there is sufficient cash available to meet its working capital requirements. Due to the dynamic nature of the underlying businesses, the Company maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s cash and cash equivalents on the basis of expected cash flow.

(C) Market Risk Interest Rate Risk

The Company is exposed to interest rate risk on its cash and cash equivalents, long-term loans and borrowings, which can have an impact on the cash flows of these instruments. The exposure to interest rate risk is managed through the Company''s Board by using counterparties that offers the best rates which enables the Company to maximize returns whilst minimizing risk.

(D) Maturities of Financial Liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.

(E) Interest Rate Risk Exposure

Company''s interest rate risk arises from borrowings. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows:

r. Long Term Contracts

The Group has a process whereby periodically all long-term contracts are assessed for material foreseeable losses. At the year-end, the Group has reviewed all such contracts and confirmed that no provision is required to be created under any law / accounting standard towards any foreseeable loss.

For: Khandelwal Kakani & Co.

Chartered Accountants

FRN. 001311C H.S. Bhatia K.S. Bhatia

Managing Director Wholetime Director

DIN 00509426 DIN 00401827

CA V. K. Khandelwal Partner

M. No.: 070546 Mahesh Patidar Tanu Parmar

Place: Indore Chief Financial Officer Company Secretary

Date: 29^th May, 2023 (M. No. 34769)

UDIN: 23070546BGRNVL1872

---

Mar 31, 2015

1. Earning Per Share

Basic & Diluted earning per equity share have been worked out in accordance with AS-20 "Earnings Per Share". Basic and diluted earnings per equity share has been calculated by dividing Net profit of Rs. 77.47 lacs by 3791700 equity shares (Face Value of Rs. 10/- each)

NOTE

The Liability Provided as on 31.03.2015 is Rs. 59.51 lakhs as against Rs. 39.62 lakhs worked out above. The difference of Rs. 19.89 lacs is under process of reconciliation and shall be adjusted thereupon.

Compensated absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance sheet date.

2. Sales Offices

Company having following sales offices during the period in India: Bhopal, Anand, Chickli, Raipur, Bhilai, Bilaspur, Malegaon, Dhulia, Nashik, Amrawati, Sangamner, Narayangaon, Loharu, Barabanki, Jaipur, Ajmer, Nawalgarh, Palsana, Sonipat, Mohali, Pathankot, Kathua.

3. Disclosure Under Micro, Small & Medium Scale Enterprise Development Act, 2006

The Company has already initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act, 2006 but yet to finalise the process. In view of low number of suppliers and non receipt of critical inputs & response from such potential parties, the liability of interest if any, can not be reliably estimated. In the Management's view and past experience, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act, 2006.However during the year there were delayed payments due to financial crisis on which interest has been paid. There is no claim of interest unpaid to such entities at the year end.

4. In the opinion of the Board Of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realized in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of the amount which is reasonably necessary.

5. As per information given by the management, Excise Duty is Not applicable to the company.

6. All Balances of sundry debtors and creditors are subject to confirmation.

---

Mar 31, 2014

( in Lakhs )

Particulars As at 31st March, 2014 31st March, 2013

1A Contingent Liabilities and Commitments (To the extent not provided)

Claims against company not acknowledged as debt

Income tax matters in dispute 11.50 11.50

Non agriculture cases in dispute 0.00 0.00

Other demands in dispute 0.00 0.00

11.50 11.50

2. Earning Per Share

Basic & Diluted earning per equity share have been worked out in accordance with AS-20 "Earnings Per Share". Basic and diluted earnings per equity share has been calculated by dividing Net profit of Rs.62.54 lacs by 3791700 equity shares (Face Value of Rs.10/- each).

3. Related Darties disclosures :

1. Relationship (c) Relatives of key management personnel and their enterprises where transaction have taken place:

(a) Subsidiary Companies Mrs. Amarjeet Kaur Bhatia Puregene Biotech Ltd. Mr. Amarjeet Singh Bhatia (HUF) w.e.f. from 13/7/2002 Mr. Kawaljeet Singh Bhatia (HUF) [formerly Simran Breeders (P) Ltd.]

(b) Key Management Personnel: Simran Feed (P) Ltd.

Mr. Harendar Singh Bhatia Simran Poultry (Managing Director) Singh Poultry

Mr. Gurdeep Singh Bhatia Simran Hatcheries (Director) Simran Hatcheries (P) Ltd.

Mr. Kanwaljeet Singh Bhatia Early Bird Hatcheries (Whole Time Director) Simfa Labs Pvt.Ltd.

Mr. Gurmeet Singh Bhatia Simran Foods Pvt. Ltd (Vice President) Singh Hatcheries

Mr. Avneet Singh Bhatia Mrs. Simrath Kaur Bhatia (Vice President - Operation) Mrs. Kawaljeet Kaur Bhatia

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

Compensated absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance sheet date.

4. Sales Offices

Company having following sales offices during the period in India:

Bhopal, Anand, Chickli, Raipur, Bhilai, Bilaspur, Malegaon, Dhulia, Nashik, Sangamner, Narayangaon, Loharu, Jaipur, Ajmer, Nawalgarh, Palsana.

5. Disclosure Under Micro, Small & Medium Scale Enterprise Development Act, 2006

The Company has initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act, 2006. In view of low number of suppliers and non receipt of critical inputs & response from such potential parties, the liability of interest if any, can not be reliably estimated in the Management''s view and past experience, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act, 2006.However Company has paid Interest of 28.16 lacs towards late payment.

6. In the opinion of the Board Of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realized in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of the amount which is reasonably necessary.

7. As per information given by the management, Excise Duty is Not applicable to the company.

8. All Balances of sundry debtors and creditors are subject to confirmation.

9. STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT,1956RELATING TO SIMRAN BREEDERS PVT. LIMITED NOW W.E.F. 13/07/2002 KNOW AS PUREGENE BIOTECH LIMITED A SUBSIDIARY COMPANY.

1. The Company held 1196500 equity shares of Rs. 10 each fully paid up representing 82.71% paid up capital of subsidiary company.

2. There are no material changes between the financial year of subsidiary company ended on 31st March 2014 and the end of financial year of the company.

---

Mar 31, 2013

1. Sales Offices

Company having following sales offices during the period in India Bhopal, Anand, Chickli, Raipur, Bhilai, Bilaspur, Malegaon, Dhulia, Nashik, Amrawati, Sangamner, Narayangaon, Loharu, Barabanki, Jaipur, Ajmer, Nawalgarh, Palsana.

2. Disclosure Under Micro, Small & Medium Scale Enterprise Development Act, 2006

The Company has initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act, 2006. In view of low number of suppliers and non receipt of critical inputs & response from such potential parties, the liability of interest if any, can not be reliably estimated in the Management''s view and past experience, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act, 2006.

3. In the opinion of the Board Of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realized in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of the amount which is reasonably necessary.

4. As per information given by the management, Excise Duty is Not applicable to the company.

5. All Balances of sundry debtors and creditors are subject to confirmation.

---

Mar 31, 2012

Note: Out of above 2.00 Lakhs Equity Shares are allotted as fully paid by way of Bonus Shares in the year 1993-94

Note: During the year there is a creation of Deferred Tax Liability amounting to Rs. 5.99 lakhs and creation of Deferred Tax Asset amounting to Rs. 5.10 lakhs which has been recorded in the Profit & Loss A/c.

Note: The disputed outstanding Income Tax Demand pertaining to Assessment Year 1994-1995 to 1997-1998 of Rs..12.21 Lacs in respect of dis-allowances of claims u/s801 &80HHA has been confirmed against the company by the Income Tax Appellate Tribunal and accordingly the liability in respect of these years has been paid/provided in full in earlier years. The Company is litigating the matter before the Hon'ble High Court of M.P.

1. Earnings Per Share

Basic & Diluted earnings per equity share have been worked out in accordance with AS-20 "Earnings Per Share". Basic and diluted earnings per equity share has been calculated by dividing Net Profit after tax of Rs.67.64 lacs by 3791700 equity shares (Face Value of Rs.10/- each) .

NOTE :

1. Production/Purchase of Hatching Eggs is net off smashed and rejected.

2. Purchase and Production of Parent birds & Commercial Bird is net off Mortality/Adjustment

3. Figures shown in brackets below represents previous year figures.

2. DISCLOSURE UNDER MICRO, SMALL & MEDIUM SCALE ENTERPRISE DEVELOPMENT ACT, 2006

The Company has initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act, 2006. In view of large number of suppliers and non receipt of critical inputs & response from several such potential parties, the liability of interest if any, cannot be reliably estimated. In the Management's view, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act, 2006.

3. Previous year figures have been regrouped or rearranged wherever necessary and also reclassified to meet the requirements of classification of assets and liabilities and heads of Profit & Loss Account of the Revised Schedule VI.

4. In the opinion of the Board of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realized in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of amount which is reasonably necessary.

5. As per information given by the Management, Excise-Duty is not applicable to the Company.

STATEMENT PURSUANTTO SECTION 212 OFTHE COMPANIES ACT, 1956 RELATING TO SIMRAN BREEDERS PVT LIMITED NOWW.E.F. 13/07/2002 KNOW AS PUREGENE BIOTECH LIMITED A SUBSIDIARY COMPANY

1 The Company held 1196500 equity shares of Rs. 10 each fully paid up representing 82.71% paid up capital of subsidiary company.

2 The net aggregate of losses of the subsidiary company since its incorporation, not dealt with in the accounts of the Co.ofRs.15.01 Lacs.

3 There are no material changes between the financial year of subsidiary company ended on 31st March 2012 and the end of financial year of the company.

---

Mar 31, 2011

A) In the opinion of the Board of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realised in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of amount which is reasonably necessary.

B) The disputed outstanding Income Tax Demand pertaining to Assessment Year 1994-1995 to 1997-1998 of Rs.12.21 Lacs in respect of disallowances of claims u/s 80 I & 80HHA has been confirmed against the company by the Income Tax Appellate Tribunal and accordingly the liability in respect of these years has been paid/ provided in full earlier years. The Company is litigating the matter before the Hon'ble High Court of M.P.

C) As per information given by the Management, Excise-Duty is not applicable to the Company.

D) All Balances of Sundry Debtors and Creditors are subject to confirmation.

Note : During the year there is creation of Deferred Tax Liability amounting to Rs. 4.09 Lacs and reversal of DTA amounting to Rs. 12.24 Lacs totalling to Rs. 8.15 Lacs of DTA which has been recorded in Profit & Loss A/c.

F) Earning Per Share

Basic & Diluted earning per equity share have been worked out in accordance with AS-20 "Earnings Per Share". Basic and diluted earnings per equity share has been calculated by dividing Net Profit after tax of Rs. 398.99 lacs by 3791700 equity shares (Face value of Rs.10/- each)

G) Related parties disclosures : 1 Relationship

(a) Subsidiary Companies Puregene Biotech Ltd. w.e.f. 13/7/2002

(Formerly Simran Breeders (P) Ltd.)

(b) Key Management Personnel :

Mr. Harender Singh Bhatia Managing Director

Mr. Gurdeep Singh Bhatia Director

Mr. Kanwaljeet Singh Bhatia Executive Director Gurmeet Sing Bhatia (Vice President)

(c) Relatives of key management perssonnel and their enterprises where transaction have taken place : Mrs. Amarjeet Kaur Bhatia Mr. Amarjeet Singh Bhatia Mr. Kawaljeet Singh Bhatia (HUF)

Mr. Sumeet Singh Bhatia Simran Feeds (P) Ltd.

Simran Poultry Singh Poultry

Simran Hatcheries Simran Hatcheries (P) Ltd. Early Bird Hatcheries Simfa Labs Pvt. Ltd. Simran Foods Pvt. Ltd. Mr. Avneet Singh Bhatia Mrs. Simrath Kaur Bhatia Mrs. Kawaljeet Kaur Bhatia

Note : Related party relationship is as identified by the Company and relied upon by the Auditors.

I) DISCLOSURE UNDER MICRO, SMALL & MEDIUM SCALE ENTERPRISE DEVLOPMENT ACT, 2006

The Company has initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act, 2006. In view of large number of suppliers and non receipt of critical inputs & response from several such potential parties, the liability of interest if any, can not be reliably estimated. In the Management's view, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act, 2006

---

Mar 31, 2010

A) In the opinion of the Board of Directors, Fixed Assets, Current Assets, Loans & Advances are approximately of the value as stated, if realised in the ordinary course of business except otherwise specified. The provisions for all known liabilities are adequate and not in excess of amount which is reasonably necessary.

B) The disputed outstanding Income Tax Demand pertaining to Assessment Year 1994-1995to 1997-1998 of Rs. 1221 Lacs in respect of disallowances of claims u/s 80 I & 80HHA has been confirmed against the company by the Income Tax Appellate Tribunal and accordingly the liability in respect of these years has been paid/ provided in full in earlier years. The Company is litigating the matter before the Honble High Court of MP.

C) As per information given by the Management, Excise-Duty is not applicable to the Company.

D) All Balances of Sundry Debtors and Creditors are subject to confirmation.

F) Earning Per Share

Basic & Diluted earning per equity share have been worked out in accordance with AS-20 "Earnings Per Share". Basic and diluted earnings per equity share have been calculated by dividing Net Profit after tax of Rs. 348.34 lacs by 3791700 equity shares ( Face value of Rs.10/- each)

Basic & Diluted earning per share (Without adjustment for deferred tax)are calculated by dividing Rs. 110.09 lacs i.e.Net Profit after tax but before provision for deferred tax by 3791700 equity share (face value Rs.10/-each.)

G)1. Related parties disdisuress:

Key Management Personnel :

Mr. Kanwaljeet Singh Bhatia

Mr. Harender Singh Bhatia

Managing Director

Mr. Gurdeep Singh Bhatia Director

Mr.Kanwaljeet Singh Bhatia

Executive Director

Gurmeet Singh Bhatia

Vice President

(b) Relatives of key management perssonnel and their enterprises where transaction have taken place:

Mrs. Amarjeet Kaur Bhatia

Mr.Amarjeet Singh Bhatia (HUF)

Mr.Sumeet Singh Bhatia

Simran Feeds (P) Ltd.

Simran Politry

Singh Poultry

Simran Hatcheries

Simran Hatcheries Ltd.

Early Bird Hatcheries Ltd.

Simfa Labs Pvt Ltd.

Simran Foods Pvt. Ltd.

Mr. Avneet Singh Bhatia

Mrs. Simrath Kaur Bhatia

Mrs. Kawaljeet Kaur Bhatia

I) DISCLOSURE UNDER MICRO, SMALL & MEDIUM SCALE ENTERPRISE DEVLOPMENT ACT, 2006

The Company has initiated the process of identification Micro, Small & Medium Scale Enterprises covered under Micro, Small & Medium Enterprises Act,2006.In view of large number of suppliers and non receipt of critical inputs & response from several such pontential parties, the liability of interest if any, can not be reliably estimated. In the Managements view, the company will not be liable to pay interest as prescribed under the Micro, Small & medium Scale Enterprise development Act,2006.