Raj Oil Mills was started in 1943 with the production of mustard oil. The organization, since then, has brought into the market a number of quality products and enjoyed the trust of millions of consumers. Raj Oil Mills continues to remain a landmark organization for both its employees and dedicated customers.

Raj Oil Mills enjoys the support of not just its domestic customers, but has enhanced the taste of food in countries. The company has plans to further penetrate into the international markets and spread its product availability to customers who recognize our high quality brand values.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENT

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

3. The GDR raised had utilized towards Loans & Advances for general corporate purposes as per the object of the issue and the remaining amount is utilized for payment of statutory liabilities of the company. Relevant documents and confirmation of balances are yet to be obtained

4. The balance of sundry debtors, Creditors, Loans & advances, Banks are subject to their confirmation and reconciliation (if any). Bank balance subject to cheques on hand realization.

5. Debtors written off during the year are debtors which have consistently coming in books of account for more than 3 years and Management is of the opinion same is not recoverable even after regular follow up with the client.

6. The Company has not received any intimation from suppliers regarding their status under micro, Small and Medium Enterprises Development Act,2006 and hence disclosure if any in relation to amount unpaid as at the yearend as required under the said Act have not been furnished.

7. Segment Reporting:

As the Company's business activity falls within a single primary business segment "Edible Oil & Cakes" the disclosure requirement of Accounting Standard (AS) 17 "Segment Reporting" are not applicable.

8. "Advances to Employees" under "Short term Loan & Advance" head in the balance sheet includes loan to staff of the Company amounting to Rs. 1.44 Lacs (Previous Year: Rs. 3.30 Lacs).

9. In the opinion of the Board, current assets, loans and advances have a value at least equal to the amounts at which they are stated in the Balance Sheet, if realized in ordinary course of business.

11. As per accounting standard 22, issued by the Institute of Chartered Accountants of India, the Deferred Tax Liability of Rs.91.52 Lacs (P.Y.-NIL) has been recognized in the Profit & Loss Account. The reason for the same being the company has incurred a loss of Rs.850 Lacs (P.Y.- Rs. 29049 Lacs) after tax. The Deferred Tax Liability arises mainly due to the timing difference of brought forward losses and depreciation claimed as per the books of account and the depreciation claimed under the Income tax Act, 1961.

12. Public Deposits Accepted:

During the period Company has not accepted any fixed deposit from the public under the provision of Section 73 to 76 or any relevant provision of the companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 1975.

13. Contingent Liabilities

a. Income Tax

The Assistant Commissioner of Income Tax, Mumbai has passed an order u/s 143(3) w.r.t Section 153A of the Income Tax Act, 1961 for the Assessment Year 2005-06 to 2011-12 and u/s 143(3) of the Income Tax Act, 1961 for the Assessment Year 2011-12 and issued Notice of Demand u/s 156 of Income Tax Act, 1961 for sum of Rs. 241.25 crore. The company has preferred an appeal against the said order before the Commissioner Appeals of Income Tax, Mumbai and the case is pending. The Company has been legally advised that the demand is likely to be deleted or substantially reduced and accordingly no provision has been made in the books of accounts.

b. Sales Tax

The Assistant Commissioner of Sales Tax Investigation Branch, Mumbai has demanded a sum of Rs. 9.84 crore. The case is pending before the Assistant Commissioner of Sales Tax (Investigation), Mumbai.

14. Going Concern Assumption

During the financial period the Company has incurred loss of Rs. 850 Lacs and its 100% net worth is eroded. Lack of adequate working capital has also affected the operations, resulting in partial running or closure of plants (for a limited period). Company is in the process of restructuring its business; hive off non-core assets for reducing debt burden through some strategic alliance or introduce any potential investor which is in process. This would enable the Company to tide over its continuing financial burden and ensure smoother running of its plants. Under the circumstances, the financial statements have been prepared on Going Concern basis and in the opinion of the management no adjustments are considered necessary to the carrying value of its assets and liabilities.

15. Related Party Transactions

Parties are considered to be related if at any time during the year; one party has the ability to control the other party or to exercise significant influence over the other party in making financial and/or operating decision. As required by Accounting Standard (AS) -18 "Related Party Disclosure" issued by The Institute of Chartered Accountants of India, information in this respect is as follows:

I. Individual(s) having control with relatives and associate :

Mr. Shaukat S. Tharadra Mrs. Shahida S. Tharadra

II. Key-Management Personnel :

Name                               Designation

Shaukat S. Tharadra                Chairman & Managing Director (CMD)

AzamkhanF.Lohani                   Whole-time Director

Rashid I. Tharadra                 Whole-time Director

Abdulla K. Musla                   Whole-time Director

Saryu Vora                         Independent Director

Personnel or their relative and with whom Company has entered into transaction during the period under review:

Entities                                 Nature of Relationship

Raj Oil Mills                            Associate concern

Raj Builders                             Associate concern