1. Rights, Preferences and Restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ? 1/- per share. Each holder of equity shares is entitled to one vote per share. 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 amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. The Company has received disclosure from Amlika Mercantile Private Limited (Amlika) informing of amalgamation of Nagarjuna Corporation Limited (NCL) pursuant to a Scheme of Amalgamation approved by the Hon'ble High Court of Bombay at Mumbai on May 2, 2014 which was made effective on June 19, 2014.

3. Pursuant to the amalgamation, following shares in the Company held by NCL stand vested in Amlika.

Shares in the Company held by Nagarjuna Management Services Private Limited, Nagarjuna Holdings Private Limited, Baron Properties Private Limited and White Stream Properties Private Limited that stood vested in NCL pursuant to a Composite Scheme of Arrangement and Amalgamation approved by the Hon'ble High Court of Bombay at Mumbai on September 14,2012.

4. As at the year end, shares in the Company totalling to 13,02,39,652 shares i.e. 30.42% stand vested in Amlika.

5. Aggregate number of shares issued for consideration other than cash 42,81,81,821 Equity Shares of Rs. 1/- each (aggregating to Rs.4,281.81 Lakhs) were allotted as fully paid up pursuant to the Composite Scheme of Arrangement and Amalgamation during the year 2011-12.

6. The Company is in receipt of the advance from Nagarjuna Fertilizers and Chemicals Limited pursuant to the Composite Scheme of Arrangement and Amalgamation which was approved by jurisdictional High Courts in Mumbai and Andhra Pradesh in 2011-12. These advances, in the nature of Loan, are repayable when the company is able to manage its financial affairs and are interest free. The amount is treated as long term borrowings since repayment of the same may not occur in the next twelve months.

7. Represents amount borrowed from a body corporate and is repayable in one bullet repayment at the end of the tenure i.e., October 18, 2015. The loan carries an interest rate 12% p.a. As at the year end, the Company has defaulted in repayment of Principal of Rs.100.00 Lakhs for 166 days (Previous year Rs.Nil) and payment of interest of Rs.2.69 Lakhs, 2.72 Lakhs and 2.71 Lakhs for a period of 258 days, 166 days and 74 days respectively. (Previous year Rs.4.99 Lakhs for 74 days).

8. The Project undertaken by Nagarjuna Oil Corporation Limited (NOCL) is in Construction Stage. Project construction was substantially slowed down from the year 2012-13 due to delay in tying up of equity for a re-assessed cost and effect of 'Thane Cyclone'.

Considering the delay in the induction of a partner and consequently, achieving financial closure for a re-assessed cost of the project, the management, as a prudent measure, made a provision of Rs.40,000.00 Lakhs towards diminution in the value of investment in the year 2014-15. The Company's management's efforts to induct strategic investor/s have continued during the current year, and while the financial closure is yet to be achieved, meaningful discussions are going on with good prospective investors, which may culminate in the financial closure being achieved soon. Based on the progress made in tying up of equity, the management is of the opinion that the provision made in the value of the investment is adequate and needs no further provision.

Additional provision, if any, will be made as and when considered necessary.

9. The disclosure required under Accounting Standard 15 "Employee Benefits"

Defined Contribution Plans

The Company makes Provident Fund and Superannuation Fund contribution to defined contribution retirement benefit plans for qualifying employees including whole time directors. Under the schemes the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall if any, shall be provided for.

Contribution to these Defined Contribution Plans, charged off during

Defined Benefit Plans

The employees' gratuity fund scheme managed by Life Insurance Corporation of India (LIC) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligations and contribution to the Scheme are routed through Nagarjuna Employees Gratuity Trust which is monitoring the gratuity scheme through LIC. The Company has contributed Rs.1.35 Lakhs to the scheme during the year (Previous Year Rs.0.46 Lakhs)

a. Reconciliation of opening and closing balance of Defined Benefit Obligation

The estimate of rate of escalations in salary considered in actuarial valuation, takes in to account inflation, length of service and other relevant factors.

10. Contingent Liabilities and Commitments (Not provided for):

11. Contingent liabilities not provided for: Nil

12. Commitments:

13. Other Commitments:

i. Commitment on account of 'Sponsor undertaking' pursuant to the agreement with the lenders and other shareholders of Nagarjuna Oil Corporation Limited, an Associate Company, for funding of project cost overrun, if any, which as at the date of this Balance Sheet are not determinable.

ii. Commitment towards all contracts, deeds, bonds, insurance, Letters of Intent, undertakings, arrangements, policies, agreements (including erstwhile shareholders agreements and investor agreements) and other instruments, if any, relating to oil business undertaking executed by Nagarjuna Fertilizers and Chemicals Limited which stands transferred and vested pursuant to Composite Scheme of Arrangement and Amalgamation, which as at the date of this Balance Sheet are not determinable.

14. Related party transactions (Disclosures as required by "AS-18 Related Party Disclosures")

Names of related parties and description of relationship.

Associates

i. Nagarjuna Oil Corporation Limited

Key Management Personnel

i. Mr. K.S. Raju, Chairman

ii. Mr. K. Soma Raju, Manager

Relatives of Key Management Personnel

i. Mr. K. Rahul Raju, Director, Son of Mr. K S Raju

Enterprises under Significant influence of Key Management personnel or their relatives

i. Nagarjuna Fertilizers and Chemicals Limited

15. Tax Expense:

i) Provision for current tax does not arise since the company has no taxable profits.

ii) Deferred Tax asset (Net):

Deferred tax asset is not recognized on account of unabsorbed depreciation and unabsorbed Business Loss as a measure of prudence.

16. Balances in the accounts of various parties appearing in these statements are subject to confirmations and reconciliations.

17. The figures for the previous year have been restated / regrouped, wherever necessary, to conform to current year classification.