1. PROVISION FOR TAXATION

Provision for current tax has been made as per provisions of the Income Tax Act, 1961, after considering deduction/exemptions, if any, available to the Company under the said Act.

2. The Balances of Debtors, Creditors, Loans & Advances and other parties are subject to confirmation and reconciliation, if any. Some of the Debtors have raised various claims against the company on account of rate difference, delayed delivery and quality issues. The company is in the process of settlement of the said claims and that the necessary effect, if any, in respect of the same, shall be given in the books of account as and when the settlement is made. In some of these cases, the company has issued legal notices and in case of failure of the customers to settle/ pay the dues, the company will initiate appropriate legal proceedings against the debtors.

3. Inventories as at the end of year comprising stock of paddy and rice is inclusive of certain quantities of paddy wherein there had been substantial deterioration in quality due to fungal development and other bacterial infection and high moisture content. Part of such inventory has been sold at substantial lower value during the subsequent quarter, as compared to the valuation (at cost) considered as on the Balance Sheet date. However, the financial impact of the same has been considered during the ensuing quarter when the same was actually sold. Had the financial impact of the same inventory loss of Rs. 11,719.32 Lakh would have been considered as on 31.03.2016, the accumulated losses of the company would have been higher by Rs. 11,719.32 Lakh and as a result the net worth of the company would have been eroded fully.

4. In the opinion of the Board, the Assets (other than fixed assets & non current investments) are approximately of the value stated if realized in the ordinary course of business and the provisions of all known liabilities are adequate.

5. FOREIGN EXCHANGE FLUCTUATION

The Company has opted for accounting the exchange differences arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standard) Amendment Rules 2009 relating to Accounting Standard 11(AS-11) notified by Government of India on 31st March, 2009. Accordingly the effect of exchange differences on foreign currency loans of the company is accounted by addition or deduction to the cost of the assets so far it relates to the depreciable capital assets. The total amount of foreign exchange fluctuation profit/ (loss) of Rs. (701.95 ) Lakhs P.Y. (265.57) Lakhs has been reduced/added from CWIP/pre operative expenses account/ fixed assets during the year.

6. All lenders of the company, in a meeting of Joint Lenders Forum (JLF) held on 13th May 2016, have agreed for a Strategic Debt Restructuring (SDR) Scheme for the better financial health of the company. In the said meeting the reference date to be considered was decided at 13th May 2016, in terms of the Reserve Bank of India guidelines. At present the Strategic Debt Restructuring (SDR) Scheme is still in the process of finalization

7. CFSITInc, USA has filed Wingding Up Petition (Petition No. 376 of 2016)under section 433,434 and 439 of the companies act 1956 (Equivalent of Section 272 & others of the companies act,2013) before Hon'ble Bombay High Court against the company for outstanding dues of Rs. 6548.14 Lakhs ($10 Million)with the interest @12% as per the advance payment and supply contract. Company has received the intimation from their consultant Cyril AmarchandManagaldas Advocates and Solicitors and the proceeding of the petition is pending before Hon'ble Bombay High Court.

8. PT Bank Maybank Indonesia TbkMumbai has filed Winding up petition under section 433 and 434 of the companies act 1956 (Equivalent of Section 272 & others of the companies act, 2013) before Hon'ble Bombay High Court against the company. Company has received the intimation from their consultant M/s Kanga and Co. and the proceeding of the petition is pending before Hon'ble Bombay High Court.

9. Axis bank has imposed Penal charges amounting to Rs. 70.45 lakh. However such expenditure has not been expensed out in the statement of profit and loss and the same is adjusted against short term borrowing from bank. As per management opinion, bank has debited without intimation to the company and matter is under discussion with bank and same will be reveres in future.

10. The management has initiated the process of identifying enterprises which have provided goods and services to the company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. The company has not received any intimation from its vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006. Further in the view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

11. Previous Year figures has been regrouped/ reclassified, wherever necessary to correspond with the current period classification/ disclosure