B. Nature and purpose of reserves

(a) Capital Reserve: Capital Subsidies received by the company is treated as capital reserve.

(b) Securities Premium Reserve: The amount received in excess of face value of the equity shares is recognized in Securities Premium Reserve.

(c) General Reserve: The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve e pursuant to the earlier provisions of Companies Act. 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

(d) Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

C. Capital Management

Equity share capital and other equity arc considered for the purpose of Company’s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders. The capital structure of the Company is based on management’s judgment of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market

The management and the board of directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

Secured borrowings and assets pledged as

a. Term Loans are secured by First pari passu charge over the entire fixed assets of the company at Aponte sahib (H.P.) and Mehsana (Gujarat), with Joint Lending Forum comprising SBI, Corporation Bank, Bank of Baroda and Brim Bank along with personal guarantees of the Directors and Promoters.

b. All working capital limits are secured by first pari passu charge over the entire current assets of the company, along with personal guarantees of promoters.

c. All vehicle loans are secured against the vehicle and personal guarantee of the CMD, Mr. Man Mohan Malik, taken from BMW Financial Services and Mahindra Finance

d Post Retirement Metical Benefits

There is no post-retirement medical benefit in the company e Retirement Benefits

At the time of superannuation, employees are entitled for reimbursement of expenses towards travel, transportation of personal effects from their place of retirement to the new location up to certain limits depending on the designation of the employee at the time and one month's salary as settling allowance.

d Details of dues to Micro and Small Tljiterprise s as per MS MED Act, 20U6

The classification of the suppliers under MSMFD Act. 2006 is made on the basis of information made available to the Company. The Company has neither paid any interest in the terms of section 16 of the above said act nor any interest remains unpaid and no payments were made beyond the "appointed date” to such enterprises during the year ended 31.03.2018. Amount outstanding to these enterprises to the year ended 31.03.2018 is Rs. Nil (previous year Rs Ml).

The Company had invested in 50% shareholding of Himalya Simplot Private Limited (the "joint venture") which was managed by the JV partner. Simp lot India LLC

The Company has access to the audited accounts of the joint venture for the financial year ended 31 March 2014. Audited financial statements for subsequent years have not been made available to the Company. Based on information available with the Company that the operations of the joint venture have ceased, the Management, as a measure of abundant prudence provision for diminution in the value of the investment made in the entity in the financial year ended 31

Consequently accounts of Jointly held entity are not consolidated with the company's accounts.

The Company as well Simp lot India LLC have preferred counter claims against each other.

a. Simp lot India LLC has invoked arbitration at Singapore which the Company has challenged on grounds of jurisdiction. The Company has been legally advised that the claim of Simplot India LLC is untenable and liable to be rejected or substantially diluted, and accordingly, no provision is considered necessary.

b. The Company has filed ease against Simplot India LLC before the Hon'ble Delhi High Court, which has been directed 10 Delhi High Court arbitration center.

h There are no material prior year items included in the Statement of Profit and Loss except to the apocopate place in the Notes. except to the extent disclosed at the

i During the year there is no Liability to pay MAT as there is carried fond business loss, j Transfer pricing

U particularly on its

k Previous Year Comparatives

Previous year ., figures have been regrouped / rearranged where may to confound to current year's presentation.