M/s Apis India Limited ("the Company") is a public limited Company domiciled in India and is listed on Bombay Stock Exchange (BSE). The Company is a market leader in the honey processing business having unit at Roorkee (Uttarakhand). The Company has its presence in domestic as well as in International market. The company has also presence in food retail business.

1. DEFERRED TAX LIABILITY

1. Short Term Borrowings from CANARA BANK (Working Capital Facilities) are secured by way of hypothecation and/or pledge of current assets namely Finished Goods, Raw Material, Work in Progress, Consumable Stores and spares, Book Debts, Bill Receivables and the collaterals offered by promoter directors.

2. Short Term Working Capital Credit Facilities from Kotak Mahindra Bank and Yes Bank is secured by the personal guarantee and collateral offered by Promoters Directors.

2. LONG TERM LOANS AND ADVANCES

Amongst Security Deposits a sum of Rs. 70.00 lakhs (previous year Rs. 70.00 lakhs) against rent is held with one of the Directors and relative of the director.

3. TRADE RECEIVABLES

Trade receivables include a sum of Rs NIL (Last year Rs. NIL) due by directors or other officers of the company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member.

4. CASH AND CASH EQUIVALENTS

Note:- Deposits with original maturity of more than 12 months have been clubbed under Other Non-Current Assets.

5. ACCOUNTING NOTES

A) All the income and expenditure having material impact on financial statements are accounted for on accrual basis except VKUY Licenses receivable from DGFT towards export performance incentives.

B) Contingent Liabilities not provided for in respect of Guarantees given by bank on behalf of the Company: Rs. 63.00 Lacs.

C) In the opinion of Board, current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and provision for depreciation and all known liabilities are adequate and not excess of the amount reasonable necessary.

D) Sundry Debtors, Creditors & Unsecured Loans are subject to confirmation.

E) There is no Micro, Small & Medium Enterprises under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act) to whom the company owes a sum exceeding Rs. 1.00 lakh for more than 30 days.

F) (i) Secured Loans

a) Working Capital Facilities/Borrowings from Canara Bank are secured by way of first charge on stock of raw material, stock in process, stores and spares, books debts, finished goods and mortgage of collateral securities offered by promoter directors.

b) Term Loan facilities from IDBI Bank are secured by way of first charge on Factory Building and Block of Plant & Machinery located at Roorkee (Uttarakhand).

c) A vehicle loan for ICICI Bank is secured by hypothecation of financed vehicle.

(ii) Unsecured Loans

Short Term Working Capital Loans from Kotak Mahindra Bank Limited and Yes Bank are secured by way of mortgage of immovable property as securities offered by promoter directors.

G) During the year, the Company has paid Director's Remuneration to the tune of Rs. 58.44 Lacs.

6. SEGMENT REPORTING

In accordance with AS-17 "Segment Reporting" the unit operates in Segments Honey and Food reportable segment. Further, segregation of capital employed could not be allocated to either of the segments and thus its segment wise segregation has not been provided.

7. RELATED PARTY DISCLOSURE (AS CERTIFIED BY DIRECTORS) - AS-18

A) Names of related parties and description of relationship

a) Key Management Personnel

Mr. Vimal Anand, Managing Director

Mr. Amit Anand, Joint Managing Director Mr. Deepak Anand, Chairman

b) Relatives of Key Management Personnel

Mrs. Manisha Anand (Wife of Mr. Vimal Anand), Marketing - Head

Mrs. Sakshi Anand (Wife of Mr. Amit Anand), Administration - Head

d) Enterprises over which Key Management Personnel exercise significant influence:

None

8. DEFERRED TAX:

a) The Company has accounted for deferred tax in accordance with the Accounting Standard 22 "Accounting for taxes on income" issued by Council of ICAI. Accordingly, deferred tax for the year is recognized on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

b) Deferred Tax Assets and Liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

c) Tax on income for the current period is determined on the basis of taxable income and applicable tax rate computed in accordance with the provisions of the Income Tax Act, 1961.

d) Deferred Tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of its realization.

9. DISCONTINUING OPERATION:

There is no discontinuance of any division of the company during the Financial Year 2013-14.

10. Previous year figures are regrouped, rearranged, and recast wherever considered necessary to make them comparable with current year figures.