10. Provisions, Contingent Liabilities and Contingent assets:

Provision is made based on a reliable estimate when it is probable that an outflow of
resources embodying economic benefits will be required to settle an obligation.
Contingent liabilities are disclosed in the notes to accounts and are determined based
on the management perception that these liabilities are not likely to materialize.
Contingent assets are not recognized or disclosed in the financial statements.

Note 22: ADDITIONAL NOTES TO FINANCIAL STATEMENTS

1. 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 nature ad size of its
operation.

2. In the absence of any possibility of taxable profits in the near future, the company has
not provided for Deferred Tax Asset as per Ind AS-12. 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.

3. 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, 2024. 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. Disclosure pursuant to Ind AS-37: Rs. In lacs

Provisions for doubtful debts Debtors Loans and Advances

Opening balance as on 01.04.23 5.47 6.71

Provided/Utilised/Reversed during the year NIL NIL

Closing balance as on 31.03.2024 5.47 6.71

6. The company has not received any intimation from all the suppliers regarding their
status under the Micro, Small and Medium Enterprises Act. 2006. There is a micro and
small enterprises to whom the Company owes dues, which is outstanding for more than
45 days as at 31st March, 2024. 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.

7. In respect of Ind AS 108 on "Operating Segments", 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.

8. The company was regularly approaching the bank and financial institution for one time
settlement of the loan accounts held with them. During the year, OTS offer was
approved by both the lenders and company successfully paid the settlement offer
amount within due time. Both the lenders have also issued No Dues Certificate to the
company.

10. 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 resultant adjustments, if any are presently not
ascertainable.

12. 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.

13. 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.

14. 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 break down. The case has
been admitted and the evidences are being taken up.

15. 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.

17. 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 Rudrapurin earlier year denying the access to the
Factory through the land under control of third Party.

18. Extraordinary Items include interest payable on long term borrowings written back on
account of One Time Settlement with the lenders.

19. The company was declared a sick industrial company by the hon'ble BIFR under the
provisions of SICA in the hearing held on 31.07.2002 and IDBI was appointed as the
Operating Agency u/s 17(3) of the Sick Industrial Companies (Special Provisions) Act,
1985 to examine the viability of the company and formulate a rehabilitation scheme
based on the company's proposal for revival. The company was a sick company from
year 2001 to 2012 and it is still a loss making entity.

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