| 1. Terms / Rights attached to Equity Shares:
  
The Company has only one class of Equity Shares having par Value of
Rs.1/- per share. Each holder of Equity Shares is entitled to one vote
per share
  
In the event of liquidation of the Company the holder of Equity Share
will be entitled to receive remaining assets of the Company in
proportion to number of Equity Shares held.
  
2. Details of Shareholders holding more than 5% Equity Shares in
the Company:
  
* The above loans have been sanctioned by SBI against Hypothecation of
stocks and receivables, Plant and Machinery and equitable mortgage of
various properties and personal guarantee of director. Due to default
in repayment of dues by the company the bank has issued a notice on
15th November 2014 U/s 13 (2) of SARFAESI Act calling upon the company
to discharge entire liability within 60 days. The above amount has
become due for payment.
  
As per Bank Statement there were no entries / debits appeared pertains
to Interest on SLC Loan, Term Loans and Working Capital Loans. And it
is not possible to acertain to find out the exact interest to debit the
profit and loss account. The interest amounts will be taken into
account as and when the Bank debits to our above mentioned loans
accounts.
  
3. Contingent Liabilities and Commitments
  
The amount for which the Company is contingently liable is disclosed
below:
  
    
Name of The           Nature of       Amount         Period to which
Statute               Dues                             the Amount
                                                        Relates
   
The Central           Excise           37,39,962          2007-08,
Excise Act 1944       Duty and                            2008-09,
                      Penalty                             2009-10 &
                                                          2011-12
   
The Income Tax        Income         1,74,89,574          2008-09,
Act, 1961             Tax                                 2009-10 &
                                                          2010-11
   
AP VAT                VAT              23,84,775          2007-08,
Act, 2005             Audit Tax                           2008-09,
                                                          2009-10
   
Name of The                                           Forum Where
Statute                                                 Pending
 
   
The Central                                            Appellate
Excise Act 1944                                        Authority -
                                                       Commissioner
   
The Income Tax                                         CIT/Tribunals -
Act, 1961                                              Appeals
  
    
AP VAT                                                 Commercial Tax
Act, 2005                                              Office,
                                                       Hydernagar
                                                       Circle
4. Related party disclosures
 
List of Related Parties:
  
i) Subsidiaries : Farmax International FZE.(100%)
  
ii) Key Management Personnel : Mr. M. Srinivasa Reddy, Chairman &MD.
  
5. The Company operates in one major segment only. Hence the requirement
of giving segmental information as per the accounting standard AS - 1 7
'Segmental Reporting ' issued by ICAI is not applicable.
  
6. Deferred tax asset as per AS-22 "Accounting for Taxes on Income" has
not been provided since there is no virtual certainty of taxable income
in near future.
  
7. The Management is of the opinion that as on the Balance Sheet date,
there are no indications of a material impairment loss on Fixed Assets,
hence the need to provide for impairment loss as per AS-28 "Impairment
Of Assets" does not arise.
  
8. Imports on CIF Basis - Nil
  
9. a) The Company has made an application in Form A (Annexure 1) on
01-08-2013 for the registration as a sick unit under provision of Sick
Industrial Companies (Special provisions) Act, 1985 as the net worth of
the Company is completely eroded. The same has been registered in the
Board as Case No. 91/2013 as per order dated 17-12-2013 of the
Secretary, Board for Industrial and Financial Reconstruction. It is
pending for determination of sickness.
  
b) Previous year's figures have been regrouped wherever necessary to
confirm to the current year's classification  
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