Indo Gulf Industries Ltd. के अकाउंट के लिये नोट

Mar 31, 2024

3.8. Provisions Contingent Liabilities and contingent assets

a) Provisions are recognized when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.

b) The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows (when the effect of the
time value of money is material).

c) Contingent assets are disclosed in the Financial Statements by way of notes to accounts when an inflow
of economic benefits is probable. Contingent liabilities are disclosed in the Financial Statements by way
of notes to accounts, unless possibility of an outflow of resources embodying economic benefit is
remote. Contingent liabilities are disclosed on the basis of judgment of the management/ independent
experts. These are reviewed at each balance sheet date and are adjusted to reflect the current
management estimate.

3.9. Employee benefits

1. Provident fund

Provident fund is a defined contribution plan covering eligible employees. The Company and the
eligible employees make a monthly contribution to the provident fund maintained by the Regional
Provident Fund Commissioner equal to the specified percentage of the basic salary of the eligible
employees as per the scheme. The contributions to the provident fund are charged to the statement of
profit and loss for the year when the contributions are due. The Company has no obligation, other than
the contribution payable to the provident fund.

2. Leave encashment

Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short¬
term employee benefit for measurement purposes. The Company measures the expected cost of such
absences as the additional amount that it expects to pay as a result of the unused entitlement that has
accumulated at the reporting date.

The company treats accumulated leave as at the period ending 31^st December which subsequently gets
lapsed and are compensated for the aforesaid unavailed leaves. The Company presents the entire leave
encashment liability as a current liability in the balance sheet, since employee is entitled to avail leave at
the end of 9 months from the reporting date and does not have an unconditional right to defer its
settlement for twelve months after the reporting date.

Liabilities for salaries and wages, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employee render the services are recognized in
respect of employees’ services up to the end of the Balance Sheet date and are measured at the amounts
expected to be repaid when the liabilities are settled.

3.10. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

a) Financial assets

(i) Initial recognition and measurement

All financial assets are recognized initially at fair value plus adjustment, in the case of financial assets
not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition
of the financial assets.

The financial assets include cash and bank balances and loans and advances.

(ii) Subsequent measurement

For purposes of subsequent measurement, financial assets in the nature of debt are classified at
amortized cost.

Debt instruments at amortized cost

A ‘debt instrument’ is measured at the amortized cost if both the following conditions are met:

1) The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

2) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortized costis calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR.

(iii) De-recognition

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the
asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of
the asset.

b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at amortized cost.

All financial liabilities are recognized initially at fair value and, in the case of financial liabilities
classified at amortized at cost net of directly attributable transaction costs.

The financial liabilities include borrowings and other payables.

(ii) Subsequent measurement

Financial liabilities at amortized cost represented by borrowings, trade and other payables are initially
recognized at fair value, and subsequently carried at amortized cost.

Financial liabilities at amortized cost

After initial recognition, financial liabilities are subsequently measured at amortized cost using EIR
method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as
through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR.The EIR amortization is included as finance costs in the
statement of profit or loss.

(iii) De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the de-recognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognized in the statement of profit and
loss.

c) Offsetting of financial instruments

Financial assets and liabilities including derivative instruments are offset and the net amount is reported
in the Balance Sheet,if there is a currently enforceable legal right to offset the recognized amounts and
there is an intention to settle on a net basis(i.e., to realize the assets and settle the liabilities
simultaneously).

d) Share capital

An equity instrument is a contract that evidences residual interest in the assets of the company after
deducting all of its liabilities. Incremental costs directly attributable to the issuance of new equity shares
are recognized as a deduction from equity, net of any tax effects.

3.11. Impairment of Assets

a) Non-financial assets

An impairment loss is recognized for the amount by which the carrying amount of the asset exceeds its
recoverable amount.

The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units).

In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset.

In determining fair value less costs of disposal,recent market transactions are taken into account,if no
such transactions can be identified, an approximate valuation model is used.

These calculations are corroborated by valuation multiples,quoted share prices for publicly traded
companies or other available fair value indicators.

If at the Balance Sheet date there is an indication that a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the impairment losses previously recognized are
reversed such that the asset is recognized at its recoverable amount but not exceeding written down
value which would have been reported if the impairment losses had not been recognized initially.

b) Financial assets

The Company applies expected credit loss (ECL) model in accordance with Ind AS 109 for
measurement and recognition of impairment loss on the financial assets and credit risk exposure that are
debt instruments, and are measured at amortized cost.

The company follows ‘simplified approach’ for recognition of impairment loss allowance.

The application of simplified approach does not require the company to track changes in credit risk.
Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date right
from its initial recognition.

ECL impairment loss allowance (or reversal) during the period is recognized as income/expense in the
statement of profit and loss. The amount is reflected under the head ‘Other Expenses’ in the statement of
profit and loss.

3.12. Taxes

The Income tax expense comprises current tax and deferred tax and is recognized in the Statement of profit
or loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.

a) Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities using the tax rates and tax laws that are
enacted by the Balance Sheet date and applicable for the period.

Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate on
the basis of amounts expected to be paid to the tax authorities.

The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right
to set off the recognized amounts and where it intends either to settle on a net basis(i.e., to realize the
assets and liabilities simultaneously).

b) Deferred income tax

Deferred tax is provided using the liability method on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the Balance
Sheet date.

Deferred tax liabilities are recognized for all taxable temporary differences, except when the deferred tax
liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused
credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilized ,except when the deferred tax asset
relating to the deductible temporary difference arises from the initial recognition of an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.

The carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each Balance

Sheet date and are recognized to the extent that it has become probable that future taxable profits will
allow thedeferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled,based on tax rates(and tax laws) that have been
enacted or substantively enacted at the Balance Sheet Date.

Deferred tax assets and Deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
and the same taxation authority.

3.13. Government Grants

Government grants are recognized where there is reasonable assurance that the grant will be received, and all
attached conditions will be complied with.

3.14. Earnings Per Share

a) Basic Earnings Per Share are computed by dividing the net profit/(loss) after tax by the weighted
average number of equity shares outstanding during the year.

b) Diluted Earnings Per Share are computed by dividing the net profit/(loss) after tax by the weighted
average number of equity shares considered for deriving basic earnings per share and also the weighted
average number of equity shares which could be issued on the conversion of all dilutive potential equity
shares. Dilutive potential equity shares are determined as at the end of each period presented.Dilutive
potential equity shares are determined independently for each period presented.

The number of equity shares and potential dilutive equity shares are adjusted retrospectively for all
periods presented for any shares splits and bonus shares issues including for changes effected prior to the
approval of the financial statements by the Board of Directors.

3.15. Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise cash on hand, cheques on hand, balance with banks
on current accounts and short-term, highly liquid investments with an original maturity of three months or
less and which carry insignificant risk of changes in value.For the purpose of the statement of cash
flows,cash and cash equivalents consist of cash and short-term deposits,as defined above, net of outstanding
bank overdrafts as they are considered an integral part of the Company’s cash management.

3.16. Significant accounting judgments, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgments, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities at the date of financial statements.
Estimates and assumptions are continuously evaluated and are based on management’s experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances.
Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.

In particular, the Company has identified the following areas where significant judgments, estimates and
assumptions are required. Further information on each of these areas and how they impact the various
accounting policies are described below and also in the relevant notes to the financial statements. Changes in
estimates are accounted for prospectively.

Judgements

In the process of applying the Company’s accounting policies, management has made the following
judgments, which have the most significant effect on the amounts recognized in the financial statements:

a) Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the
Company, including legal, contractor, land access and other claims. By their nature, contingencies will
be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the
existence, and potential quantum, of contingencies inherently involves the exercise of significant
judgment and the use of estimates regarding the outcome of future events.

b) 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
change or circumstances arising beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.

3.17. Inventories

Inventories are valued at the lower of cost or net realizable value as per Ind AS 2.

Cost includes purchase price, duties, transport,handing costs and other costs directly attributable to
theacquisition and bringing the inventories to their presentlocation and condition.

The basis of determination of cost is as follows:

- Raw material, packing material and stock-in-tradevalued on moving weighted average basis;

- Stores and spares valued on weighted average basis;

- Work-in-progress valued at cost of input valued atmoving weighted average basis plus overheads up till
the stage of completion; and

- Finished goods valued at cost of input valued atmoving weighted average basis plus appropriate
overheads.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make the sale.

3.18. Foreign currency transactions and translation

1. Functional and presentation currency

The financial statements are presented in Indian rupee (?), which is also its functional currency.

2. Transactions and balances

Transactions in foreign currencies are recognized at the prevailing exchange rates on the transaction
dates. Realised gains and losses on settlement of foreign currency transactions are recognized in
statement of profit and loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange
rates and the resultant exchange differences are recognized in the statement of profit and loss.

11.1 Dy. Commisisioner of Sales Tax Baidhan Distt. Sidhi M.P. has issued recovery notice dated 2nd March, 2006 for INR 454.29 lakhs Recovery
Act, 1980. The Company has recognized the reduced liability of INR 308.38 lakhs pursuant to sanction of the Rehabilitation Scheme by the
Hon''ble Board for Industrial and Financial Reconstruction (BIFR), and the aforsaid loan is to be treated as interest free and to be repaid in 5
yearly installments after the restart of the Company''s explosive unit. However, the differential amount of INR 145.91 lakhs is yet to be waived
off by the department as per Rehabilitation Scheme.The provision for the 5th installment of Rs. 6,167,648 is made on 31st March, 2023.

11.2 11.2.1 Unsecured Loan from Ganesh Explosives Private Limited will be repayable after five years from commencement of business in ten equal
yearly instalments which will be applicable from FY 2023-24 and simple interest @8% p.a will be charged and repaid at the end of each
financial year. The Company has not repaid the unsecured loan in equal yearly instalments. However, owing to lack of financial resources the
Company has repaid the unsecured loan in varying amounts during the year.

11.2.2 Unsecured loans from Rajesh jain are interest free and will be repayable after five years from commencement of business i.e. from FY
2023-24 in ten equal yearly instalments. The Company has not repaid the unsecured loan in equal yearly instalments. However, owing to lack of
financial resources the Company has repaid the unsecured loan in varying amounts during the year.

(iii) The preference shares are non convertible in nature.

(iv) These preference shares carry dividend @ 0.001% per annum as declared from time to time. In the event of no declaration of dividend, coupon rate of 0.001% is not cumulated and

(v) The preference shareholder(s) shall have no voting rights, except as provided under the Companies Act, 2013 and rules made thereunder.

(vi) Each holder of preference shares is entitled to one vote per share only on resolution placed before the Company which directly affect the rights attached to preference shares.

(vii) The Company has neither issued any bonus shares nor has bought back preference shares in 5 years immediately preceding the balance sheet date.

(viii) The preference shares shall be redeemed at par, at the option of the Company at any time within a period not exceeding 20 years from the date of allotment i.e. 28th March, 2016 in

accordance with the provisions of theCompanies Act, 2013 or any such other applicable law, rules, regulations as may be applicable.

(a) EPFO Dwarka, New Delhi vide its notice dated 09.12.2015 initiated enquiry u/s 14B of EPF and MP Act, 1952 levying Rs. 5.59 Lakhs against damages.. IGIL
vide its letter dated 11.01.2016 has requested EPFO Dwarka, New Delhi to waive damages of Rs. 5.59 Lakhs. Final order from EPFO Dwarka, New Delhi is
awaited as on date. As the company have got the waiver of Rs. 54.48 lacs by CBT similary the company has taken up the matter with CBT for the waiver of
5.59 lacs.

(b) Sales Tax Department, Jhansi has issued various recovery certificates in year 2004 amounting to Rs. 201.00 Lakhs towards Sales Tax dues excluding interest
for not submitting the C, 3B & F forms related to A.Y. 1988-89 to 2000-01. As a result of same, IGIL Jhansi Explosive unit is under attachment of Sales Tax
Department. In the meantime, IGIL has collected several forms C, 3B and F, mainly form Coal India Limited and its subsidiaries. IGIL is to take up the matter
with Jhansi Sales Tax Dept. for adjusting the outstanding liability of IGIL against the collected “C” & “F” forms and simultaneously to re- assess the actual
liability based on the actual assessment. The company has deposited Rs. 8.81 lacs during the FY 2022-23.

(c) The Commercial Tax officer, Waidhan, Singrauli vide letter No. VAAK/Recovery/20222/159 dt. 25.08.2022 has advised us to deposit Rs. 30731801/-
regarding payment of demand acertain against Indo GulfIndustries Ltd . As per the order of BIFR dt. 24.06.2010, the company was to make the payment of Rs.
308.38 lacs to Sales Tax Dept. MP after restart of the plant over a period of 5 years, however, the Indo Gulf did not take the possession of its Waidhan plant as
it was already seized and auctioned by then Sales Tax authorities nd the entire position has been explained to the Sales Tax authorities at Waidhan & Indore
and the matter is under their consideration.

(d) Central Excise dept. District Sidhi, Waidhan, ( M.P.) vide its notice dated 17.02.2003 raised demand of Rs. 5.12 Lakhs towards Excise duty, interest and
penalty. IGIL is yet to retrieve further details of same from concerned department for taking necessary action. After the takeover of the company, we have not
received any communication from Central Exise Waidhan.

(e) State Sales Tax Authorities of Orissa, Madhya Pradesh & Chhattisgarh have also issued various Recovery Certificates for non- submission of C, F & 3B forms
in relation to various site mixing slurries (SMS) Explosive units located in these states. IGIL is yet to retrieve further details of same from concerned
department for taking necessary action. Sales Tax Authority of Orissa & M .P. issued R C for non submission of C,F & 3B forms. After the takeover of the
company, we have not received any communication from Central Exise Waidhan.

(f) Deputy Commissioner of Income Tax, New Delhi passed an order u/s 271(1) ( C ) of the I.T. Act 1961 on 29.04.2015 imposing penalty of Rs. 4.05 Lakhs for

A.Y. 2012-13. IGIL filed an Appeal on 27.05.2015 with Commissioner of Income Tax (Appeals), New Delhi challenging the DCIT order dated 29.04.2015.
Same is pending with Commissioner of Income Tax (Appeals), New Delhi as on date. The matter is pending with CIT, Appeals, New Delhi.

(g) Sachin Chemical filed suit No. 194 of 2003 in Tis Hazari Court, New Delhi for recovery of Rs. 1.69 lakhs towards non-payment of Chemical Supplies. Matter
is pending in the was declared "SINE DIE" by virtue of SICA. The matter is pending in the court.

(h) Simalin Chemicals filed Civil Suit No 194/2003 before Civil Judge, Vadodra for recovery of 7.02. Lakhs. Present status of the civil suit no. 194/2003 is not
known since year 2004.

(i) Scale Away has filed suit No. 35 of 2002 pending in Delhi Tis Hazari Court, New Delhi for recovery of Rs.1.34 Lakh. Same is pending as on date. Further
deatils and hearing date is still awaited

^(j) UPSIDC had alloted a land of 706.05 acres on lease to Indo Gulf Industries Limited in December 1984 for setting up the facilities for manufacturing of Slurry
Explosives out of which 50 acres was alloted for setting up the plant and remaining 656.05 acres for maintaining Safety Zones being an explosive plant as per
Explosive Act.

The Uttar Pradesh State Industrial Development Authority (UPSIDA) has raised a demand of Rs 769 Lakhs on 31st March 2022 vide letter No
RMJ/INDOGULF towards economic rent outstanding premium and interest their own for the closure period and also after our takeover period from 2017¬
2020.

Consistent efforts have been made by the new management after taking over the company with the UPSIDA and State Government for waiver of dues for the
closure period. The company is also prepared to remit 25% of the total settled dues as mutually agreed upon by the company and UPSIDA. It''s noted that first
tranche of 25% amounting to Rs. 50 lacs has been already paid via DD No. 840809 dated September 14, 2023 and the remaining tranche of 25% will be paid
by the end of Sept. 2024. The balance of 75% of the settled dues may be disbursed over the next two years from the settlement date in equal quarterly
installments.

5 The Hon''ble Appellate Authority for Industrial and Financial Reconstruction (AAIFR) at its hearing held on 14th June, 2016 has, inter-alia, discharged the
Company from the purview of The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), since the networth of the company turned positive.
Accordingly, the Company ceases to be a Sick Company.

6 Segment information

The Board of Directors has been identified as the Company''s chief operating decision-maker (CODM) as defined by Ind AS 108 - Operating Segments. The
Company is in the business of manufacturing of industrial explosive. Considering the core activities of the Company, the management is of the view that it is
a single reportable business segment and hence, information relating to primary segment is not required to be disclosed.

The information about secondary segment has not been furnished as there is no export revenue of the Company.

7 Disclosure pursuant to Indian Accounting Standard-12 "Income Taxes"

Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable
temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred income
tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor
taxable profits or loss at the time of the transaction.

Deferred income tax asset is recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences,and the carry forward of unused tax credits and unused tax losses can be utilized. Deferred income tax liabilities are recognized for all taxable
temporary differences. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

8 Disclosure pursuant to Indian Accounting Standard - 36 on "Impairment of Assets"

During the year no impairment loss has been recognized in respect of property, plant and equipment.

9 Disclosure pursuant to Indian Accounting Standard - 19 on "Employee Benefits"

During the year under review, no liability has accrued on account of long-term employee benefits payable by the Company. Hence, information as per the
requirements of Indian Accounting Standard - 19 on "Employee Benefits" is not required to be disclosed.

10 Expenditure on Corporate Social Responsibilities (CSR) Activities

As per Section 135 of the Companies Act, 2013, the Companyhas formed a corporate social responsibility (CSR) committee. The Company is liable to incur
CSR expense as per requirement of Section 135 of Companies Act, 2013. Accordingly, it has contributed Nil (Previous year - Nil) to the eligible trusts
specified in Schedule VII of the Companies Act, 2013.

(a) Gross amount to be spent as per section 135 of the Companies Act, 2013 : Rs. 6.11 lakhs (Previous year - Nil)

(b) Amount contributed during the year : Nil (Previous year - Nil)

(c) Amount spent during the year on :

(i) Construction / acquisition of any assets : Nil (Previous year - Nil)

(ii) On purpose other than (i) above : Nil (Previous year - Nil)

B. Valuation technique, methods and assumptions used to determine the fair values:

Fair value is a market-based measurement, not an entity-specific measurement. Under Ind AS, fair valuation of financial instruments is guided by

Ind AS 113 “Fair Value Measurement” (Ind AS - 113).

In terms of Ind AS 113, the Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

C. Fair Value Hierarchy

This section explains the judgements and estimates based in determining the fair values of the financial instruments that are

a) recognized and measured at fair value and

b) measured at amortized cost and for which fair value are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining the fair value, the Company has classified its financial assets and
liabilities into three levels prescribed under Ind AS.

14 Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and other equity attributable to the equity share-holders of the
Company. The Company’s objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide
returns for shareholders and benefits for other stake holders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March 2024 and 31st March 2023.

15 Transactions with struck off companies

During the year the company has not entered into any transactions with companies struck off u/s 248 of the Companies Act, 2013 or u/s 560 of the Companies
Act, 1956.

17 Previous year figures have been regrouped / reclassified wherever necessary.

As per our attached report of even date

FOR HEMANT ARORA & CO. LLP FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

CHARTERED ACCOUNTANTS INDO GULF INDUSTRIES LIMITED

Firm''s Registration No. 002141C/C400006

Kamal Nagpal Rajesh Jain Gaurav Kumar Saxena

Partner Director Managing Director

M. No. 408066 DIN: 01200520 DIN: 08063422

Place: Dehradun B.D. Aggarwal

Date: 30th May 2024 Chief Finance Officer

---

Mar 31, 2015

1. Contingent liabilities and commitments (to the extent not provided for) (Rs.)

As At As At Particulars 31st March, 2015 31st March, 2014

a) Contingent liabilities:

Claims against the Company not acknowledged as debts — —

b) Commitments : Estimated amount of Contracts remaining to be executed on Capital Account and not provided for — —

2. Based on the information / documents available with the Company, no amount (Previous year: Nil) is/was due to Micro, Small and Medium Enterprises as defined in the " Micro, Small and Medium Enterprises Development Act, 2006"

Hence, information as per the requirements of Section 22 of the aforesaid act is not required to be disclosed.

3. a) The Government of Uttar Pradesh has initiated recovery proceedings for recovery of Sales Tax dues related to Explosive unit at Jhansi, pursuant to which, the factory at Jhansi has been seized by the Government authorities. All the assets located at factory including records there at remain seized till the year end. Out of the above assets, certain assets pertaining to the said unit have been auctioned by the office of the labour commissioner, Jhansi, against which a sum of Rs. 8,03,000.00 (previous year: Rs. 8,03,000.00) is lying with them. Pending availability of relevant information, no adjustment in this respect has been carried out in these accounts.

b) The Company's net worth has been fully eroded as the accumulated losses of Rs. 3,21,63,639.91 exceeded its shareholders' fund of Rs. 95,67,270.00.

The Hon'ble Board for Industrial and Financial Reconstruction (BIFR) vide its order dated 07.01.2014 had permitted, transfer of 20% equity shares of the Company held by Balrampur Chini Mills Ltd. as well as induction of co-promoter / strategic investor in IGIL, under a Modified Draft Rehabilitation Scheme (MDRS) to be approved by the Hon'ble BIFR. However the Hon'ble BIFR vide its order dated 04.08.2014 reviewed its directions and directed the Operating Agency to submit its report after conducting due-diligence of co-promoter/ Strategic Investor and reserved its order for pronouncement.

The order in the subject matter was pronounced on 23.01.2015 whereby the Bench observed that induction of co-promoter/strategic investor was not in transparent manner and was not in accordance of the Law. The Hon'ble BIFR fixed the next date of hearing for further hearing in the matter. Aggrieved by the BIFR's order dated 23.01.2015, the Company has preferred an Appeal before the Hon'ble AAIFR which is pending adjudication before the Hon'ble AAIFR as on date. The Hon'ble AAIFR in the pending appeal has passed a direction vide its order dated 15.05.2015 directing circulation of MDRS to all concerned for their consideration. As envisaged in the MDRS to be circulated, after the said transfer of shares, the Company will cease to be a subsidiary of Balrampur Chini Mills Ltd and the Co-Promoter shall invest in terms of the provisions contained in the MDRS to meet the requirement of funds for the revival. Accordingly, .the Company has considered that it will be able to continue as a going concern entity.

4. Segment information as per Accounting Standard - 17 on 'Segment Reporting' :

The company is in the business of industrial explosive. Considering the core activities of the company, the management is of the view that it is a single reportable business segment and hence, information relating to primary segment is not required to be disclosed.

The information about secondary segment has not been furnished as there is no export revenue of the Company.

5. In accordance with Accounting Standard 22 "Accounting for taxes on Income Tax", the company has not accounted for deferred tax during the year.

Though, the Company has significant amount of carried forward losses and unabsorbed depreciation under the Income Tax Act, 1961. However, as a matter of prudence deferred tax assets have not been recognized.

6. Disclosure pursuant to AS - 28 on "Impairment of Assets"

Due to seizure of Company's explosive plant at Jhansi, the condition of the plant & machineries and other fixed assets there at and the impairment loss, if any, in respect thereof could not be determined, pending which no provision for such impairments, if any, could be made in the accounts.

7. Expenditure on Corporate Social Responsibilities (CSR) Activities

The provisions of Section 135 of the Companies Act, 2013 are not applicable to the Company.

8. There are no transactions which are required to be disclosed as prescribed under paragraph 5 (viii) to general instructions for preparation of Statement of Profit and Loss under Schedule III to the Companies Act, 2013.

9. Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary to make them comparable with those of the current year.

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Mar 31, 2014

NOTE : 1.1 Share Capital

(c) The Company has only one class of equity shares. The Company declares and pays dividend in Indian Rupees. The holders of equity shares are entitled to receive dividend as declared from time to time and are entitled to one vote per share.

(d) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

(e) 51,62,470 equity shares of par value Rs. 1/- each are held by Balrampur Chini Mills Ltd., the Holding Company.

(g) The company has not issued equity shares without payment being received in cash in 5 years immediately preceding the balance sheet date.

(h) The company has neither issued bonus shares nor has bought back equity shares in 5 years immediately preceding the balance sheet date.

NOTE : 1.2 - Other disclosures

1. Contingent liabilities and commitments (to the extent not provided for) (Rs.)

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

a) Contingent liabilities:

Claims against the Company not acknowledged as debts: - -

b) Commitments:

Estimated amount of Contracts remaining to be executed on Capital Account and not provided for - -

2. Based on the information / documents available with the Company, no amount (Previous year: Nil) is/was due to Micro, Small and Medium Enterprises as defined in the " Micro, Small and Medium Enterprises Development Act, 2006".

Hence, information as per the requirements of Section 22 of the aforesaid act is not required to be disclosed.

3. a) The Government of Uttar Pradesh has initiated recovery proceedings for recovery of Sales Tax dues related to Explosive unit at Jhansi, pursuant to which, the factory at Jhansi has been seized by the Government authorities. All the assets located at factory including records there at remain seized till the year end. Out of the above assets, certain assets pertaining to the said unit have been auctioned by the office of the labour commissioner, Jhansi, against which a sum of Rs. 8,03,000.00 (previous year: Rs. 8,03,000.00) is lying with them. Pending availability of relevant information, no adjustment in this respect has been carried out in these accounts.

b) The Company''s net worth has been fully eroded as the accumulated losses of Rs. 7,03,68,945.40 exceeded its shareholders'' fund of Rs. 95,67,270.00. During the year, the holding company has provided necessary funds for the operations.

The Hon''ble Board for Industrial and Financial Reconstruction (BIFR) has permitted, transfer of 20% equity shares of the Company held by Balrampur Chini Mills Ltd. as well as induction of co-promoter/strategic investor in IGIL, under a Modified Draft Rehabilitation Scheme (MDRS) to be approved by the Hon''ble BIFR. After the said transfer of shares, the Company will cease to be a subsidiary of Balrampur Chini Mills Ltd. The Co-Promoter, to invest in terms of the provisions contained in the MDRS and to meet the requirement of funds for the revival. Accordingly, the Company has considered that it will be able to continue as a going concern entity.

4. Segment information as per Accounting Standard - 17 on ''Segment Reporting'' :

The company is in the business of industrial explosive. Considering the core activities of the company, the management is of the view that it is a single reportable business segment and hence, information relating to primary segment is not required to be disclosed.

The information about secondary segment has not been furnished as there is no export revenue of the Company.

b) No provision has been made for the year in the books on account for interest on inter – corporate loan received from the holding company i.e. Balrampur Chini Mills Limited in terms of the provisions contained in the Modified Draft Rehabilitation Scheme (MDRS) which has been vetted by the Operating Agency (State Bank of India) as technically feasible and economically viable and is awaiting the final approval of the Hon''ble BIFR.

c) No amount has been written back / written off during the year in respect of due to / from related parties.

5. In accordance with Accounting Standard 22 "Accounting for taxes on Income Tax", as notified under the Companies (Accounting Standards) Rules, 2006, the company has not accounted for deferred tax during the year.

Though, the Company has significant amount of carried forward losses and unabsorbed depreciation under the Income Tax Act, 1961. However, as a matter of prudence deferred tax assets have not been recognized.

6. Disclosure pursuant to AS - 28 on "Impairment of Assets".

Due to seizure of Company''s explosive plant at Jhansi, the condition of the plant & machineries and other fixed assets there at and the impairment loss, if any, in respect thereof could not be determined, pending which no provision for such impairments, if any, could be made in the accounts.

It is not possible to estimate the timing / uncertainties relating to the utilisation /reversals from the provision for contingencies. Future cash outflow in respect of the above is determinable only upon disposal of appeals etc.

The Company does not expect any reimbursement in respect of the above provisions.

7. There are no transactions which are required to be disclosed as prescribed under paragraph 5 (viii) to general instructions for preparation of Statement of Profit and Loss under Schedule VI to the Companies Act, 1956.

8. Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary to make them comparable with those of the current year.

---

Mar 31, 2013

1. Based on the information / documents available with the Company, no amount (Previous year: Nil) is/was due to Micro, Small and Medium Enterprises as defined in the "Micro, Small and Medium Enterprises Development Act, 2006".

Hence, information as per the requirements of Section 22 of the aforesaid act is not required to be disclosed.

2. a) The Government of Uttar Pradesh has initiated recovery proceedings for recovery of Sales Tax dues related to Explosive unit at Jhansi, pursuant to which, the factory at Jhansi has been seized by the Government authorities. All the assets located at factory including records there at remain seized till the year end. Out of the above assets, certain assets pertaining to the said unit have been auctioned by the office of the labour commissioner, Jhansi, against which a sum of Rs. 8,03,000.00 (previous year: Rs. 8,03,000.00) is lying with them. Pending availability of relevant information, no adjustment in this respect has been carried out in these accounts.

b) The Company''s net worth has been fully eroded as the accumulated losses Rs. 6,90,94,799.99 exceeded its shareholders'' fund of Rs. 95,67,270.00. The holding company has provided the necessary funds for the operations. Accordingly, the Company has considered that i will be able to continue as a going concern entity.

3. Segment information as per Accounting Standard -17 on ''Segment Reporting'' :

The company is in the business of industrial explosive. Considering the core activities of the company, the management is of the view that it is a single reportable business segment and hence, information relating to primary segment is not required to be disclosed.

The information about secondary segment has not been furnished as there is no export revenue of the Company.

4. In accordance with Accounting Standard 22 "Accounting for taxes on Income Tax", as notified under the Companies (Accounting Standards) Rules, 2006, the company has not accounted for deferred tax during the year.

Though, the Company has significant amount of carried forward losses and unabso*ed depreciation under the Income Tax Act, 1961. However, as a matter of prudence deferred tax assets have not been recognized.

5. Disclosure pursuant to AS - 28 on "Impairment of Assets" Due to seizure of Company''s explosive plant at Jhansi, the condition of the plant & machineries and other fixed assets there at and the impairment loss, if any, in respect thereof could not be determined, pending which no provision for such impairments, if any, could be made in the accounts.

It is not possible to estimate the timing / uncertainties relating to the utilisation /reversals from the provision for contingencies. Future cash outflow in respect of the above is determinable only upon Court decision / out of Court settlement/disposal of appeals.

The Company does not expect any reimbursement in respect of the above provisions.

6. There are no transactions which are required to be disclosed as prescribed under paragraph 5 (viii) to general instructions for preparation of Statement of Profit and Loss under Schedule VI to the Companies Act, 1956.

7. Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary to make them comparable with those of the current year.

---

Mar 31, 2012

(a) The holders of equity shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the shareholders of the Company.

(b) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all the preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

(c) 51,62,470 Equity shares of par value Rs 1/- each are held by Balrampur Chini Mills Limited, the Holding Company.

(d) The company has not issued equity shares without payment being received in cash in 5 years immediately preceding the balance sheet date.

(i) The company has neither issued bonus shares nor has bought back equity shares in 5 years immediately preceding the balance sheet date.

1. Contingent liabilities and commitments (to the extent not provided for) (Rs)

As At As At

Particulars

31 st March, 31 st March, 2011 2011

a) Contingent liabilities :

Claims against the Company not acknowledged as debts :

i) Excise duty Demand - under appeal - -

ii) Sales Tax Demand-under appeal - -

iii) Others - under appeal/litigation - - b) Commitments :

Estimated amount of Contracts remaining to be executed on Capital Account and not provided for - -

2. Based on the information / documents available with the Company, no amount (Previous period: Nil) is/was due to Micro, Small and Medium Enterprises as defined in the " Micro, Small and Medium Enterprises Development Act, 2006" Hence, information as per the requirements of Section 22 of the aforesaid act is not required to be disclosed.

3. a) The Government of Uttar Pradesh has initiated recovery proceedings for recovery of Sales Tax dues related to Explosive unit at Jhansi, pursuant to which, the factory at Jhansi has been seized by the Government authorities. All the assets located at factory including records there at remain seized till the year end. Out of the above assets, certain assets pertaining to the said unit have been auctioned by the office of the labour commissioner, Jhansi, against which a sum of Rs 8,03,000.00 (previous period: Rs 8,03,000.00) is lying with them. Pending availability of relevant information, no adjustment in this respect has been carried out in these accounts.

b) The Company's net worth has been fully eroded as the accumulated losses Rs 6,34,20,606.35 exceeded its shareholders holder fund of Rs 95,67,270.00. It is felt that the status of the company will improve in the following years. Further, the holding company has provided the necessary funds for the operation. Accordingly, the Company has considered that it will be able to continue as a going concern entity.

4. Segment information as per Accounting Standard -17 on Segment Reporting :

The company is in the business of industrial explosive. Considering the core activities of the company, the management is of the view that it is a single reportable business segment and hence, information relating to primary segment is not required to be disclosed.

The information about secondary segment has not been furnished as there is no export revenue of the Company.

b) No amount has been written back / written off during the year in respect of due to / from related parties .

c) The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms.

d) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required

5. In accordance with Accounting Standard 22 "Accounting for taxes on Income Tax", as notified under the Companies (Accounting Standards) Rules, 2006, the company has not accounted for deferred tax during the period.

Though, the Company has significant amount of carried forward losses and unabsorbed depreciation under the Income Tax Act, 1961. However, as a matter of prudence deferred tax assets have not been recognized.

6. Disclosure pursuant to AS - 28 on Impairment of Assets

Due to seizure of Company's explosive plant at Jhansi, the condition of the plant & machineries and other fixed assets there at and the impairment loss, if any, in respect thereof could not be determined, pending which no provision for such impairments, if any, could be made in the accounts.

7. (a) Pursuant to sanction of the Rehabilitation Scheme containing the Scheme of Arrangement between the Company and Balrampur Chini Mills Limited (BCML) by the Hon'ble Board for Industrial and Financial Reconstruction (BIFR) vide its order dated 24.06.2010, the Sugar Unit of the Company hereinafter referred to as the Demerged Undertaking, as defined in Scheme, had been transferred to BCML (the Holding Company) with effect from the Appointed Date, 1st October, 2008.

(b) As per the Scheme, the Company has transferred from its books all the assets and liabilities pertaining to the Demerged Undertaking (except fixed assets which have been valued at Rs 74,04,27,696.10) at values as appearing in the books of Company as on the Appointed Date.

(c ) Pursuant to the aforesaid Rehabilitation Scheme, the existing equity share capital of the Company has also been restructured by reducing it by 90% whereby every equity share of Rs 10/- each has become equity share of Rs 1/- each fully paid up. Apart from above, certain assets and liabilities have been restructured and given affect to as per terms of the Rehabilitation Scheme.

(d) During the previous period demerger loss amounting to Rs 85,14,754.18 , Interest for 2008-09 Rs 14,81,609.38 and Sundry balances written back (Net) Rs 2,31,69,368.68 has been accounted for in the books as per the aforesaid BIFR scheme.

8. (a) Deferred sales tax loan are under reconciliation. Necessary adjustment, if any, will be made after reconciliation.

(b) The installments for payment of deferred sales tax converted into unsecured loan by sales tax department are overdue. The same has not been paid and the interest thereon, if any, has not been provided in the accounts , as the quantum thereof is not ascertainable.

9. a) Previous period's figures are for 18 months and hence not comparable with current year's figures which are for 12 months.

b) The previous period's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding period are included as an integral part of the current year's financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

---

Mar 31, 2011

1. (Note no. 3 of Schedule - 22)

Fixed Deposits with Banks include an amount of X Nil (PreviuosYear Rs. 155.26 Thousands) earmarked for construction of Molasses Storage Tank.

2. (Note no. 4 of Schedule -22)

The amount due to Micro Enterprises and Small Enterprises as defined in the The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro Enterprises and Small Enterprises as on 31st March, 2011 are as under:

3. (Note no. 5 of Schedule - 22) Excise Duty & Cess on Stock :

The amount of Excise Duty & Cess on Stock shown in Schedule -16 represents differential Excise Duty & Cess on Opening & Closing Stock of finished goods/by products.

4. (Note no. 7 of Schedule - 22)

Computation of Net Profit for the purpose of calculating Directors Renumeration has not been made as no renumaration is paid/payable to the Directors except Sitting Fees.

5. (Note no. 9 of Schedule - 22)

a) The Government of Uttar Pradesh has initiated recovery proceedings for recovery of Sales Tax dues related to Explosive unit at Jhansi, pursuant to which, the factory at Jhansi has been seized by the Government authorities. All the assets located at factory including records there at remain seized till the year end. Out of the above assets, certain assets pertaining to the said unit have been auctioned by the office of the labour commissioner, Jhansi, against which a sum of Rs. 803.00 Thousands is lying with them. Pending availability of relevant information, no adjustment in this respect has been carried out in these accounts.

b) The Companys net worth has been fully eroded as the accumulated losses Rs. 55910.53 Thousands exceeded its shareholders fund of Rs. 9567.27 Thousands. It was felt that the status of the company will improve in the following years. Further the holding compay has provided the necessary funds for the operation. Accordingly, the Company has considered that it will be able to continue as a going concern entity.

6. (Note no. 10 of Schedule - 22)

Pending final settlement, Interest on statutory liabilities outstanding for a long period has not been provided, as the quantum thereof is not ascertainable.

7. (Note no. 11 of Schedule - 22)

Employee Benefits: As per Accounting Standard - 15 the disclosure of "Employee Benefits" as defined in the Accounting Standard are as follows:

Defined Benefit Plan: Post employment and other long-term employee benefits in the forms of gratuity and leave encashment are considered as defined benefit obligation. As on 31st March, 2011, the compnay does not have any employees hence no acturial valuation is required.

8. (Note no. 12 of Schedule - 22)

Segment information as per Accounting Standard -17 on Segment Reporting:

The Company was operative in Single Primary Business Segment namely manufacture of Sugar. However after demerger of the sugar unit no separate disclosure is required to be made. The information about secondary segment has not been furnished as there is no export revenue of the Company.

b) No amount has been written back/ written off during the period in respect of due to / from related parties.

c) The transactions with related parties have been entered at an amount which are not materially different from that on normal commercial terms.

d) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

9. (Note no. 14 of Schedule -22)

Disclosure under clause 32 of the Listing Agreement:

There are no transactions other than transactions with Holding Company as given in Para 13 (a) (xi) which are required to be disclosed under clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are Listed.

10. (Note no. 16 of Schedule - 22)

In accordance with Accounting Standard 22 "Accounting for taxes on Income Tax", issued by The Institute of Chartered Accountants of India, the Company has not accounted for deferred tax during the year. The Company has significant amount of carried forward losses and unabsorbed depreciation under the Income Tax Act, 1961. However, as a matter of prudence deferred tax assets have not been recognized.

11. (Note no. 17 of Schedule - 22)

Disclosure pursuant to AS - 28 on "Impairment of Assets"

Due to seizure of Companys explosive plant at Jhansi, the condition of the plant & machineries and other fixed assets there at and the impairment loss, if any, in respect thereof could not be determined, pending which no provision for such impairments, if any, could be made in the accounts.

12. (Note no. 18 of Schedule - 22)

Disclosure in terms of Accounting Standard - 29 on Provisions, Contingent Liabilities and Contingent Assets:

a) Movement for Provision for Liabilities: (Rs. in thou:

b) The Liabilities mentioned above depends upon courts decision /out of court settlement / disposal of appeals etc.

c) No reimbursement is expected in the case of Contingent liabilities and liabilities shown respectively under SI. No. 2 & 18 (a) above.

13. (Note no. 19 of Schedule - 22)

a) Deferred Sales Tax Liabilities are under reconciliation. Necessary adjustment, if any, will be made after reconciliation.

b) The installments for payment of deferred Sales Tax converted into unsecured loan by Sales Tax department are overdue. The same has not been paid and the interest thereon, if any, has not been provided in the accounts , as the quantum thereof is not ascertainable.

14. (Note no. 20 of Schedule - 22)

Balances shown under Sundry Creditors and advances are subject to confirmation and reconciliation with the parties.

15. (Note no. 21 of Schedule - 22)

Lease Deed for 50 Acre of Land (Out of Total land of 705 acres) for Jhansi Plant has not been executed. In respect of some other land, the registration formalities are under process.

16. (Note no. 22 of Schedule - 22)

Fixed Assets of Sugar unit were revalued during the year at replacement value as per the report of S.K.Ahuja & Associates and the cost of respective assets aggregating to Rs. 764546.47 Thousands was substituted by the revalued amount of Thousands and the resultant increase was credited to Revaluation Reserve. The sugar unit was subsequently merged in Balrampur Chini Mills Ltd. pursuant to BIFR order date 24.06.2010.

17. (Note no. 23 of Schedule - 22)

(a) Pursuant to sanction of the Rehabilitation Scheme containing the Scheme of Arrangement between the Company and Balrampur Chini Mills Limited (BCML) by the Honble Board for Industrial and Financial Reconstruction (BIFR) vide its order dated 24.06.2010, the Sugar Unit of the Company hereinafter referred to as the "Demerged Undertaking", as defined in Scheme, has been transferred to BCML (the Holding Company) with effect from the Appointed Date, 1st October, 2008.

(b) The above scheme was effective from 1st October, 2008 and since the accounts for the period 01.10.2008 to30.09.2009 have already been audited and presented, the effect (including the period 01.10.08 to 30.09.09) of the said Scheme has been taken in the present final accounts made for the period of 18 months from 01.10.09 to 31.03.11 and thereby previous year figures have not been adjusted.

(c) As per the Scheme, the Company has transferred from its books all the assets and liabilities pertaining to the Demerged Undertaking (except fixed assets which have been valued at Rs. 74.04 crores) at values as appearing in the books of Company as on the Appointed Date.

(d) Pursuant to the aforesaid Rehabilitation Scheme, the existing equity share capital of the Company has also been restructured by reducing it by 90% whereby every equity share of Rs. 10/- each has become equity share of Rs. 1/- each fully paid up. Apart from above, certain assets and liabilities have been restructured and given affect to as per terms of the Rehabilitation Scheme.

(e) In consideration for the demerger of sugar unit as above, BCML shall pay to the company Rs. 75.00 lacs in cash and has already issued to the shareholders of the Company shares worth Rs. 85.15 lacs (including share premium) in the ratio of 1 equity share of Rs. 1/- each fully paid up in BCML for every 100 equity shares of Rs. 1/- held in Company.

(f) During the preiod demerger loss amounting to Rs. 8514.75 Thousands, Interest for 2008-09 Rs. 1481.61 Thousands and Sundry balances written back (Net) Rs. 23169.37 Thousands has been accounted for in the books as per the aforesaid BIFR scheme.

(g) The aforesaid Scheme of Arrangement has come in force on filing the certified copy of the order with the Registrar of Companies, Delhi and also with the Registrar of Companies, West Bengal on 21.07.2010.

(h) In view of the demerger as mentioned above, the Financial Statements for the period excludes the working results and the assets and liabilities of its Demerged Undertaking.

(i) In view of the demerger as mentioned above, figures for the previous period ended 30th September, 2009 are not comparable with the current periods figures. (j) The effect of various reliefs and concessions as envisaged in the Scheme will be given effect to as and when the requisite approvals are received.

---

Sep 30, 2009

1. (Note no. 3 of Schedule - 22) Fixed Deposits with Banks include an amount of Rs. 155.26 Thousands specifically earmarked for construction of Molasses Storage Tank.

2 (Note no. 5 of Schedule - 22) Excise Duty & Cess on Stock:

The amount of Excise Duty & Cess on Stock shown in Schedule -15 represents differential Excise Duty & Cess on Opening & Closing Stock of finished goods/by products.

3. (Note no. 7 of Schedule - 22)

Computation of Net Profit for the purpose of calculating Directors Renumeration has not been made as no renumaration is paid/payable to the Directors except Sitting Fees.

4 (Note no. 9 of Schedule - 22)

a) The Government of Uttar Pradesh has initiated recovery proceedings for recovery of Sales Tax dues related to Explosive unit at Jhansi, pursuant to which, the factory at Jhansi has been seized by the Government authorities. All the assets located at factory including records there at remain seized till the year end. Out of the above assets, certain assets pertaining to the said unit have been auctioned by the office of the labour commissioner, Jhansi, against which a sum of Rs. 803.00 Thousands is lying with them. Pending availability of relevant information, no adjustment in this respect has been carried out in these accounts.

b) Pursuant to recovery proceedings initiated by U.P. State Government for the recovery of pending dues of Cane Growers and for giving effect to the Recovery Certificates amounting to Rs. 156100.00 Thousands, all the moveable & immoveable assets of the sugar unit located at Maizapur, District Gonda (U.P.) were seized by the District Administration on August 12,2002. Towards the said recovery Certificate Distt. Administration sold the entire stocks belonging to the Company and deposited the sale proceeds amounting to Rs. 125041.00 Thousands with Registrar, Allahabad High Court. The Company has also deposited a sum of the Rs. 32331.00 Thousands with the Honble High Court towards the said recovery and other cane dues. Out of the said amount, Rs. 149331.00 Thousands had been released by the Court to the Cane Commissioner leaving a balance of Rs. 8041.25 Thousands in the Court, which is being reflected under the head "Loans and Advances". On the said balance with the Court, Interest Income is receivable for the current year which has been duly accounted for, on the basis of TDS Certificate (Form 16A) received from SBI High Court Branch Lucknow.

c) The Companys net worth has been fully eroded as the accumulated losses Rs. 896456.84 Thousands exceeded its shareholders holder fund of Rs. 440507.01 Thousands. The Company has been registered with the BIFR. The Operating Agency (i.e. State Bank of India) has submitted a draft rehabilitation Scheme to the BIFR. The rehabilitation strategy envisages reliefs and concessions from the Central Government, State Government and Other Agencies and also induction of fresh fund by the promoters/ associates to finance the cost of the scheme. At present, the sugar unit of the company is in operation. SBI / Holding Company is providing the Working Capital funds for its Operation. Accordingly, the Company has considered that it will be able to continue as a going concern entity.

5 (Note no. 10 of Schedule - 22)

The un-reconciled old bank balances amounting to Rs. 11516.03 Thousands have been considered doubtful and shown under the head Cash & Bank Balances. Provision for doubtful bank balances have been made in the books. The amount includes Rs. 1545.08 Thousands realized from the auction of molasses during the year 2002-03, kept with Gonda District Administration and Allahabad Bank, Gonda Branch in a no-lien account subject to disposal as per the order of Honble Allahabad High Court, Lucknow Bench, Lucknow do not seem to be recoverable hence provision for doubtful balances have been made in the accounts.

6 (Note no. 11 of Schedule - 22)

a) In the opinion of management, the "Loans and Advances" have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. Further, in respect of certain items which were long outstanding, necessary provision has been made.

b) (i) Rs. 11260.00 Thousands given as share application money and included in Loans and Advances against which shares are yet to be issued by the concerned companies are still considered to be good, there by no provision has been made for the same.

(ii) Loans and Advances includes Rs. 7135.53 Thouands paid under protest with Sales Tax Authorities towards Sales Tax dues, against which liability for Rs. 28967.63 Thousands have been provided.

7 (Note no. 12 of Schedule - 22)

Pending final settlement, Interest on statutory liabilities outstanding for a long period has not been provided, as the quantum thereof is not ascertainable.

8 (Note no. 13 of Schedule - 22)

Interest receivable (net of interest payable) on allotment money remaining unpaid in respect of Equity Shares issued on conversion of 12% Convertible Debentures will be accounted for on receipt basis.

9 (Note no. 14 of Schedule - 22)

As per Accounting Standard -15 the disclosure of "Employee Benefits" as defined in the Accounting Standard are as follows:

Defined Benefit Plan:

Post employment and other long-term employee benefits in the forms of gratuity and leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefit obligation recognised in the Accounts represent the present value of the obligation as adjusted for unrecognised past service cost.

10 (Note no. 15 of Schedule - 22)

Segment information as per Accounting Standard -17 on Segment Reporting:

The Company operates in Single Primary Business Segment namely manufacture of Sugar. Hence, no separate disclosure is required to be made. The information about secondary segment has not been furnished as there is no export revenue of the Company.

11 (Note no. 17 of Schedule - 22)

Disclosure under clause 32 of the Listing Agreement:

The are no transactions other than transactions with Holding Company as given in Para 16 (a) (xiii) which are required to be disclosed under clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are Listed.

12 (Note no. 19 of Schedule - 22)

In accordance with Accounting Standard 22

"Accounting for taxes on Income Tax", issued by The Institute of Chartered of Accountants of India, the Company has not accounted for deferred tax during the year. The Company has significant amount of carried forward losses and unabsorbed depreciation under the Income Tax Act, 1961. However, as a matter of prudence deferred tax assets have not been recognized.

13 (Note no. 20 of Schedule - 22)

Disclosure pursuant to AS - 28 on "Impairment of Assets"

Due to seizure of Companys explosive plant at Jhansi, the condition of the plant & machineries and other fixed assets there at and the impairment loss, if any, in respect thereof could not be determined, pending which no provision for such impairments, if any, could be made in the accounts. Further, for assets at Companys Sugar Unit, situated at Maizapur, U.P. impairment loss if any, are recognised in accordance with the accounting standard notified under The Companies (Accounting Standard) Rules, 2006.

14. (Note no. 22 of Schedule - 22)

a) Calls in arrears and deffered Sales Tax Liabilities are under reconciliation. Necessary adjustment, if any, will be made after reconciliation.

b) The installments for payment of deferred Sales Tax converted into unsecured loan by Sales Tax department are overdue. The same has not been paid and the interest thereon, if any, has not been provided in the accounts, as the quantum thereof is not ascertainable.

15. (Note no. 23 of Schedule - 22)

Balances shown under Sundry Creditors and advances are subject to confirmation and reconciliation with the parties.

16 (Note no. 24 of Schedule • 22)

Lease Deed for 50 Acre of Land (Out of Total land of 705 acres) for Jhansi Plant has not been executed. In respect of some other land, the registration formalities are under process.

17. (Note no. 25 of Schedule - 22)

The Board for Industrial & Financial Reconstruction had vide its Order dated 23rd October, 2008 declared Indo Gulf Industries Ltd (IGIL) a Sick Industrial Company in terms of Section 3(1)(o) of the Sick Industrial Company (Special Provisions) Act, 1985 and appointed State Bank of India (SBI) as Operating Agency under Section 17(3) of the Act to examine the viability of the Company and formulate a rehabilitation scheme, IGIL submitted a Draft Rehabilitation Scheme to SBI which is based on demerger of Sugar unit of the Company, situated at Maizapur.U.P and merger of the said sugar unit with the Holding Company Balrampur Chini Mills Ltd(BCML). The explosive unit of IGIL is proposed to be continued as the sole unit of IGIL. The State Bank of India after examining the viability of the Scheme has submitted the same to the BIFR for their approval.