1. Contingent Liabilities and commitments: Contingent Liabilities not acknowledged as debts:

a) regarding excise duty on unbranded French fries Rs.0.59lacs (previous Rs.0.59) - Matters under appeal hence interest on such demand not provided for.

b) regarding Income Tax approx. Rs. 129.84 lacs (Previous Year Rs. 129.84 Lacs)

2. The confirmation, reconciliation and adjustment of balances pertaining to trade receivables and payables, loans and advances and capital advances is an ongoing process. As regards the outstanding trade receivables, loans and advances and capital advances, the significant portion of these are independently verified and the company is of the opinion that the same are fully recoverable and consequential adjustments and provisioning, if any, are not likely to be material given the naturead size of its operation.

3. In the absence of any possibility of taxable profits in the near future, the company has not provided for Deferred Tax Asset as per AS-22. The company is not recognizing deferred tax assets in respect of huge unabsorbed depreciation and carried forward losses and other deferred tax assets as there is no certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

4. The company had raised invoice claims on Lamb Weston Inc. amounting to Rs.12.17 lacs during earlier years towards renting of cold storage, testing charges, custom duty and freight charges which are outstanding as at March 31,2015 . These amounts are recoverable in foreign currency and are doubtful of recovery. Accordingly, provision for these amounts had already been made in these accounts in 1997-98.

5. The company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act. 2006. There are no micro and small enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2015. The above information pertaining to micro and small enterprises has been determined to the extent such parties have been identified on the basis of the information available with the Company. This has been relied upon by the auditors.

6. In respect of Accounting Standard 17 on "Segment Reporting", the Company is a single segment Company dealing in fresh, frozen and canned foods in accordance with the criteria for identification of reportable segment specified in the said standard.

7. Interest on secured term loans (IDBI Bank and IFCI Ltd.) with the secured lenders have not been provided for in the books of accounts as the company had entered into negotiated settlement with the Secured Lenders - Financial Institutions in 2009-10. The company made a payment of Rs. 1 crore towards thesaid settlement in earlier years as part of the settlement but defaulted in the payment of further installments. Both of the secured lenders have revoked the negotiated settlement but the company has approached them again for resettlement of the matter and is hopeful of settlement in the near future. Current provision of Interest of Rs. 28.99 crs. due to the secured lenders along with Principal amount of Rs. 3.40 crs. as per Books of Accounts is more than the settlement amount discussed with these lenders and in view of this, there is no fresh provision of interest made for the year under review in the Books of Accounts.

8. The company has entered into One Time Settlement with one of its secured creditors- International Asset Reconstruction Company Pvt. Ltd. (assigned byStandard Chartered Bank) for Rs.40 Lacs and has completelysatisfied their charge. The interest on term loan provided but not paid amountingto Rs.1.08 Crs has been written backand isshown underthe head- Extra-Ordinary Items.

9. The net worth of the company is negative as at the Balance Sheet date. However accounts of the company have been prepared on going concern basis since the company is taking necessary steps for its revival. In case the company is unable to continue as going concern in future, the resultantadjustments,ifanyarepresentlynot ascertainable.

10. Liabilities recognized in the Balance Sheet as on 31st March, 2015 with respect to gratuity is Rs. 9.39 Lacs (Previous year Rs. 8.77 lacs) and with respect to leave encashment/ entitlements Rs. 0.87 Lacs (Previous Year Rs. 1.19 lacs) as per the Actuarial Valuation. The following table set out the status of the Gratuity plan as required under AS-15. Reconciliation of the opening and closing value of the defined benefit obligation.

11. The cold store building had suffered damages due to earthquake in March, 1999. The building requires major repairs in insulation and RCC works has to be repaired and substantial insulation will have to be re-done. The company had filed insurance claim with the National Insurance Co. in 2001 which remains unsettled till date.

12. The Company suffered loss on account of deterioration of stocks arising out of break down in Generating set and earthquake damages to the cold store building. Company had filed insurance claim with National Insurance Co. in 2001 for deterioration of stocks, machinery break down, for generator set and cold store building which are all pending till date.

13. The company has filed a case in Delhi High Court in 2004 for losses on account of damages to the cold store, deterioration of stocks, machinery breakdown. The case has been admitted and the evidences are being taken up.

14. The company has been served with a statutory notice under section 13 (2) of Securitization and Reconstruction of the Financial assets and Enforcement of Securities Interest Act, 2002, by IDBI Bank Ltd. in 2007.

15. The access to the factory is through the land owned by third party. A case has been filed and admitted in the local courts of Rudrapur in earlier year denying the access to the Factory through the land under control of third Party.

16. Exceptional Items include interest of Rs.3.44 lacs u/s 7Q and damages of Rs. 6.60 lacs u/s 14B levied on non deposit of Provident fund for the period July, 2007 to December, 2010 under the Employees' Provident Fund and Misc. Provisions Act, 1952.

17. Related Party Disclosure-As per AS 18, the disclosure of transactions with the related partiesare given below:

a. List of Related Parties where control exists and related parties with whom transactions have taken place and relationship: Sr.No. Name of the Related Party Relationship

1. Mr.G.S.Sandhu- Key Management Personnel

2. Dr. Ram Pyare Singh Key Management Personnel

3. KiranSandhu Relative of Key Managerial Person

4. Suraiya Exports Pvt. Ltd. } Company in which Key

5. Tarai Farmlands Pvt. Ltd. } Managerial Person are Directors

b. Detailsoftransactionsduringtheyearwithrelatedparties:

Nature of transactions Key Managerial Personnels (KMP)

(Rs.In Lacs)

18.Previous year's figures have been regrouped/ reclassified where vernecessary to correspond with the current year's classification/ disclosure.