Notes to Accounts of Sumuka Agro Industries Ltd.

Mar 31, 2025

29. Financial Instruments Financial risk management objective and policies

This section gives an overview of the significance of financial instruments for the Company and provides additional information on the balance sheet. Details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial assets and financial liabilities are disclosed in Note 2 (c).

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

• Cash and Cash Equivalents, Other Current Assets and Trade Payables:-

Approximate their carrying amounts largely due to the short-term maturities of these instruments.

• Loans Current & Non-Current and Other Current Liabilities: All the amounts given/taken as loans do not carry any interest obligation and it is not practicable to estimate the timing of repayment of this loan. Thus, it is considered as repayable/receivable on demand and the face value (i.e. amount payable on demand) of such asset is considered its fair value.

30. Critical Estimates and Judgements in applying Accounting Policies:

The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Information about estimates and judgments made in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are as follows:

i) Property, plant and equipment and useful life of property, plant and equipment and intangible assets

The carrying value of property, plant and equipment is arrived at by depreciating the assets over the useful life of assets. The estimate of useful life is reviewed at the end of each financial year and changes are accounted for prospectively.

ii) Provisions and Contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with the applicable Ind AS.A provision is recognized if, as a

result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows.

31. Segment Reporting

Business Segments:

As the Company''s business activity primarily falls within a single primary business segment, the disclosure requirements of IND AS 108 ''Operating Segments'' are not applicable.

Geographical Segments:

The company does not have operation outside India. Hence, disclosure of geographical segment does not arise.

32. Undisclosed Income

There are no transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

34. Details of Crypto Currency

Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

35. Capital Management

The Company''s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximize the shareholders'' value . The company''s overall strategy remains unchanged from previous year. The following table summarizes the capital of the company.

36. Additional Regulatory Information

i. Registration of Charges:

The company has availed credit facility of Rs. 6.76 lakhs as Term Loan from ICICI Bank against hypothecation of Motor Car. The loan amount is disbursed on 06.09.2022. ROC Charge on the said loan is not registered for the said loan since, the hypothecation agreement is not executed.

ii. Compliance with Number of Layers of Companies:

Since the Company does not have any holding/subsidiary, thus the clause is not applicable.

The company has also made loans/advances of Rs. 55.55 lakhs to M/s Reliable Paper (India) Limited (unlisted public company, declared earlier as defaulter by MCA), whose name has now been removed from the defaulters list by MCA, and the said company is under Corporate Insolvency Resolution Process.

iv. Wilful Defaulter:

Company is not declared wilful defaulter by any bank or financial Institution or other lender.

v. Compliance with approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

vi. Utilisation of Borrowed funds and share premium:

a. Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries the company.

b. Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

37. Exceptional Items FY 2024-25

Exceptional Item of Rs. 10.78 lakhs represents the impact of the profits of the company on accout of

i. the balance of Rs. 4.28 laksh written off oustanding from the party, the funds are irrecoverable and

ii. Rs. 6.50 lakhs represent the expenditure incurred by the company for the merger application submitted to the SEBI for Merger of Gujjubhai Food Products Private Limited

FY 2023-24

Exceptional Item of Rs. 148.34 lakhs represent the impact of the profits of the company on account of

i. the balance of Rs. 136.52 laksh written off outstanding from companies whose name has been struck off from the list of Registrar of companies and the funds are irrecoverable and

ii. Rs. 11.82 lakhs represent the expenditure incurred by the company for the merger application submitted to the SEBI for Merger of Gujjubhai Food Products Private Limited

38. GST Receivable

The Goods & Service Tax Credit taken in the books of Accounts have been verified with the Purchases made during the year, however the balances of GST Credit Brought Forward and GST Credit Carried Forward are subject to confirmation as annual return for GST and the GST Audit Report are finalized after the date of the Audit Report.

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Mar 31, 2024

VI. Disclosure Requirement for Sundry Creditors Covered Under MSME Act, 2006:

As informed by the management, the Company has circulated confirmation for the identification of suppliers registered under the Micro, Small and Medium Enterprises Development Act, 2006.

The company has disclosed the amounts unpaid, if any as at the yearend together with interest paid/payable relating to the suppliers from whom confirmation regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 is obtained.

V. Previous Year''s Figures:

Previous years'' figures have been recast so as to make them comparable with current year''s figures.

4 (ii) Title deeds of Immovable Properties not held in name of the Company

Company does not have any immovable asset as on the balance sheet date so disclosure is not applicable

4 (iii) Details of benami property

No procidings has been initiated / pending against the company for holdong any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

29. Financial Instruments Financial risk management objective and policies

This section gives an overview of the significance of financial instruments for the Company and provides additional information on the balance sheet. Details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial assets and financial liabilities are disclosed in Note 2 (c).

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

• Cash and Cash Equivalents, Other Current Assets and Trade Payables:-Approximate their carrying amounts largely due to the short-term maturities of these instruments.

• Loans Current & Non-Current and Other Current Liabilities: All the amounts given/taken as loans do not carry any interest obligation and it is not practicable to estimate the timing of repayment of this loan. Thus, it is considered as repayable/receivable on demand and the face value (i.e. amount payable on demand) of such asset is considered its fair value.

30. Critical Estimates and Judgements in applying Accounting Policies:

The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Information about estimates and judgments made in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are as follows:

i) Property, plant and equipment and useful life of property, plant and equipment and intangible assets

The carrying value of property, plant and equipment is arrived at by depreciating the assets over the useful life of assets. The estimate of useful life is reviewed at the end of each financial year and changes are accounted for prospectively.

ii) Provisions and Contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with the applicable Ind AS.A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows.

31. Segment Reporting

Business Segments:

As the Company''s business activity primarily falls within a single primary business segment, the disclosure requirements of IND AS 108 ''Operating Segments'' are not applicable.

Geographical Segments:

The company does not have operation outside India. Hence, disclosure of geographical segment does not arise.

32. Undisclosed Income

There are no transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

33. Corporate Social Responsibility

The company is not covered under section 135 of The Companies Act, 2013.

34. Details of Crypto Currency

Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

35. Capital Management

The Company''s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximize the shareholders'' value . The company''s overall strategy remains unchanged from previous year. The following table summarizes the capital of the company.

i. Registration of Charges:

The company has availed credit facility of Rs. 6.76 lakhs as Term Loan from ICICI Bank against hypothecation of Motor Car. The loan amount is disbursed on 06.09.2022. ROC Charge on the said loan is not registered for the said loan since, the hypothecation agreement is not executed.

ii. Compliance with Number of Layers of Companies:

Since the Company does not have any holding/subsidiary, thus the clause is not applicable.

The company has made loans/advances of Rs. 65.65 lakhs to M/s Nirzari Organisers Pvt. Ltd, Surat, Gujarat and Rs. 70.87 lakhs to M/s Treasure Chest Investments Pvt. Ltd., Surat, Gujarat. The names of both these companies are stricken-off from the list of registered companies by the Registrar of Companies, Gujarat, Ministry of Corporate Affairs (MCA). The amounts have been written off during the year since, same are non-recoverable. The company has also made loans/advances of Rs. 55.55 lakhs to M/s Reliable Paper (India) Limited (unlisted public company, declared earlier as defaulter by MCA), whose name has now been removed from the defaulters list by MCA, and the said company is under Corporate Insolvency Resolution Process.

iv. Wilful Defaulter:

Company is not declared wilful defaulter by any bank or financial Institution or other lender.

v. Compliance with approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

vi. Utilisation of Borrowed funds and share premium:

a. Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries the company.

b. Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

37. Exceptional Items

Exceptional Item of Rs. 148.34 lakhs represent the impact of the profits of the company on accout of

i. the balance of Rs. 136.52 laksh written off outstanding from companies whose name has been struck off from the list of Registrar of companies and the funds are irrecoverable and

ii. Rs. 11.82 lakhs represent the expenditure incurred by the company for the merger application submitted to the SEBI for Merger of Gujjubhai Food Products Private Limited

38. GST Receivable

The Goods & Service Tax Credit taken in the books of Accounts have been verified with the Purchases made during the year, however the balances of GST Credit Brought Forward and GST Credit Carried Forward are subject to confirmation as annual return for GST and the GST Audit Report are finalized after the date of the Audit Report.

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Mar 31, 2015

Notes:

(a) There are no reportable secondary segments.

(b) The primary segments have been identified & reported considering the nature of products & services, their risks and returns, the organisation structure and the internal management reporting system. Investment, interest and consulting activities are clubbed under 'finance Segment'.

(c) Due to changes in the primary segments, the previous year figures may not correlate with that of current years.

(d) Segmental information includes the respective amounts identifiable or allocable. Other amounts are reported at corporate level.

M. Retirement Benefits – The management of the Company is of the opinion that provisions for employees retirement benefits are not required to be made.

(*) Outstanding closing balances unless specified otherwise; (#) Amounts squared-up during the year; (@) Exercising 'significant influence (SI)' in business decisions in terms of clause 3(e) of Accounting Standard 18 or a 'related party' in terms of the applicable provisions of the Act.

Notes: (1) Pertains to call money received on partly paid shares. (2) Received Rs, 45000/- during the year. (3) No remuneration is paid during the year. (4) Repaid Rs, 750000 during the year. (5) Purchased of 180000 additional equity shares of Rs, 10 each during the year.

a. In respect of certain payments made for expenses or otherwise where, the payees' acknowledgements and/or other supporting evidences of payments were not available for our verification, the management confirms the propriety of the payments and of the debits given to the respective account heads. None of the revenue expenses are capitalised during the year or vice versa.

b. The balances of receivables and payables are subject to third party confirmations. The management has taken adequate steps to provide sufficiently for all known, anticipated or contingent liabilities. The liabilities including the Capital Reserve of Rs, 4940132/- and the current assets, loans, advances and others receivables, are approximately of the value stated in the accounts and payable or receivable in the ordinary course of business. Certain old debit accounts pertaining to Gujarat Electricity Board Deposit of Rs, Nil (Rs, 406230/-), Telephone Deposit of Rs, Nil (Rs, 29000/-) and Excise Duty Credits of Rs, Nil (Rs, 50885/-), were written off during the year and certain old credit accounts pertaining to Provisions Rs, Nil (Rs, 49635/-) and Creditors or Loans/Advances Rs, 2648328/- (Rs, 60000/-) were written back during the year, as in the opinion of the management of the Company, these have become fragile and do not appear to be of the value stated, in the ordinary course of business. The Company had received certain trade advances amounting Rs, 1,40,00,000/- which were outstanding for more than a year, and during the year however a repayment of Rs, 87,00,000/- was made, and the balance Rs, 53,00,000/- remaining unpaid, have been accounted as long term liabilities.

c. Prior Period Items – The Company follows the accrual system of accounting, but provision for expenses is made on the basis of the materially concept and where ever ascertainable.

d. In the opinion of the management, there are no outstanding dues towards suppliers as defined under the "Micro, Small & Medium Enterprises Development Act, 2006".

e. Managerial Remuneration – The management has been paid a remuneration of Rs, Nil (Rs, Nil) during the year.

f. Additional Information – Additional information pursuant to the applicable provisions of note 5 of Part II of Schedule III to the Act, to the extent not already reported elsewhere:

g. Previous year figures are regrouped or reclassified wherever necessary. Figures in brackets pertain to previous year. All figures have been rounded off to the nearest rupee.

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Mar 31, 2014

Note 1. Share Capital

A. The Company has only one class of equity shares of par value Rs. 10/- each. Each equity shareholder is entitled to one vote per share held, and on liquidation entitled to receive balance of net assets remaining after settlement of all debts, creditors & preferential amounts, proportionate to their respective shareholding. No dividend is proposed.

B. The Company had during the year 2011-12, transferred 1129400 equity shares from partly paid to fully paid equity shares of Rs. 10 each, since the Company received the balance amount of calls in arrears of Rs. 5, on these shares.

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Mar 31, 2013

1. The Company has only one class of equity shares of par value Rs. 10/- each. Each equity shareholder is entitled to one vote per share held, and on liquidation entitled to receive balance of net assets remaining after settlement of all debts, creditors & preferential amounts, proportionate to their respective shareholding. No dividend is proposed._

2. During the year 1129400 equity shares were transferred from partly paid to fully paid equity shares of Rs. 10 each, since the Company received the balance amount of calls in arrears of Rs. 5, on these shares.

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Mar 31, 2012

A. Foreign Currency Transactions - The Company has not entered into any foreign currency transactions during the year.

B. Prior Period Items - The Company follows the accrual system of accounting, but provision for expenses is made on the basis of the materially concept and where ever ascertainable.

C. Managerial Remuneration -The management has not been paid any remuneration during the year.

D. Contingencies & Subsequent Events - All disputed and/or contingent liabilities are either provided for or disclosed as such, on the basis of mutual acceptances or depending on the management''s perception of its potential outcome. Events occurring after the balance sheet date up to the date of adoption of the financial statements, having a material bearing are considered while preparing the financial statements.

E. In respect of certain payments made for expenses or otherwise where, the payees'' acknowledgements and/or other supporting evidences of payments were not available for our verification, the management confirms the propriety of the payments and of the debits given to the respective account heads. None of the revenue expenses are capitalized during the year or vice versa.

F. In the opinion of the management, there are no outstanding dues towards suppliers as defined underthe "Micro, Small & Medium Enterprises Development Act 2006".

G. The balances of receivables and payables are subject to third party confirmations. The management has taken adequate steps to provide sufficiently for all known, anticipated or contingent liabilities. The liabilities including the Capital Reserve of Rs.4940132/-, are of the value stated and payable in the ordinary course of business. Current assets, loans, advances and receivables including Gujarat Electricity Board Deposit of Rs. 406230/-, Telephone Deposit of Rs. 29000/- and Excise Duty Credits of Rs. 50885/-, are of the value stated, if realised in the ordinary course of business.

H. Previous year figures may be regrouped, recast or reclassified wherever necessary. Figures in brackets are pertaining to previous year. All figures are rounded off to the nearest rupee.

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Mar 31, 2011

A. Deferred Taxes The specification of details pursuant to Accounting Standard 22 - "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, is not applicable to the Company since there is no deferment of taxes arising on account of timing differences.

B. Prior Period Items The Company follows the accrual system of accounting, but provision for expenses is made on the basis of the materially concept and where ever ascertainable.

C. Managerial Remuneration The management has not been paid any remuneration during the year.

D. There are no outstanding dues towards suppliers as defined under the "Micro, Small & Medium Enterprises Development Act, 2006".

E. In respect of certain payments made for expenses or otherwise where, the payees'' acknowledgements and/or other supporting evidences of payments were not available for our verification, the management confirms the propriety of the payments and of the debits given to the respective account heads.

F. None of the revenue expenses are capitalized during the year or vies versa.

G. Third party confirmations of receivables and payables were not immediately available for our verification.

H. Previous year figures may be regrouped, recast or reclassified wherever necessary. Figures in brackets are pertaining to previous year. All figures are rounded off to the nearest rupee.

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Mar 31, 2010

Figures in brackets are pertaining to previous year. All figures are rounded off to the nearest rupee.

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Mar 31, 2009

1. The balance of Sundry Creditor is subject to confirmation. However, the directors have certified the respective balance.

2. No Managerial remuneration has been paid to Directors during the year or earlier year.

3. The company claims to have no contingent liabilities and hence not provided for.

4. Previous year figures have been regrouped, rearranged wherever necessary to confirm with current year figures.

5. Additional information pursuant to the provisions of paragraph 3, 4B, 4C, 4D of part II of the Schedule VI of the Companies Act, 1956.

b) Expenditure on employees in respect of remuneration of not less than Rs. 12,00,000/- for a year or Rs. 1,00,000/- p.m. when employed for the part of the year Rs. Nil. (Previous year Rs. Nil)

c) (i) Licensed Capacity/Installed Capacity Not Applicable

(ii) Production

The Company has not carried out any manufacturing activity during the year, hence no data related to production is available.

(iii) Raw Material (excluding stores):

The Company has not carried out any manufacturing activity during the year and hence there is no Consumption of Raw Material during the year.

d) Turnover:

The Company has not carried out any business activity during the year therefore no data related to turnover is available.

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Mar 31, 2008

1. The balance of Sundry Creditor is subject to confirmation. However, the directors have certified the respective balance.

2. No Managerial remuneration has been paid to Directors during the year or earlier year.

3. The company claims to have no contingent liabilities and hence not provided for.

4. Previous year figures have been regrouped, rearranged wherever necessary to confirm with current year figures.

5. Additional information pursuant to the provisions of paragraph 3, 4B, 4C, 4D of part II of the Schedule VI of the Companies Act, 1956.

b) Expenditure on employees in respect of remuneration of not less than Rs. 12,00,000/- for a year or Rs. 1,00,000/- p.m. when employed for the part of the year Rs. Nil. (Previous year Rs. Nil)

c) (i) Licensed Capacity/Installed Capacity Not Applicable

(ii) Production

The Company has not carried out any manufacturing activity during the year, hence no data related to production is available.

(iii) Raw Material (excluding stores):

The Company has not carried out any manufacturing activity during the year and hence there is no Consumption of Raw Material during the year.

d) Turnover:

The Company has not carried out any business activity during the year therefore no data related to turnover is available

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Mar 31, 2007

1. The balance of Sundry Creditor is subject to confirmation. However, the directors have certified the respective balance.

2. No Managerial remuneration has been paid to Directors during the year or earlier year.

3. The company claims to have no contingent liabilities and hence not provided for.

4. Previous year figures have been regrouped, rearranged wherever necessary to confirm with current year figures.

5. Additional information pursuant to the provisions of paragraph 3, 4B, 4C, 4D of part II of the Schedule VI of the Companies Act, 1956.

a) Auditor''s Remuneration and Expenses:

Particulars current Year Previous Year Rs. Rs.

As Auditor :- - Audit Fees 20,000 20,000 -

Service Tax 2,040 2,040

Total 22,040 22,040

b) Expenditure on employees in respect of remuneration of not less than Rs. 12,00,000/- for a year or Rs. 1,00,000/- p.m. when employed for the part of the year Rs. Nil. (Previous year Rs. Nil)

c) (i) Licensed Capacity/Installed Capacity Not Applicable

(ii) Production

The Company has not carried out any manufacturing activity during the year, hence no data related to production is available.

(iii) Raw Material (excluding stores):

The Company has not carried out any manufacturing activity during the year and hence there is no Consumption of Raw Material during the year.

d) Turnover:

The Company has not carried out any business activity during the year therefore no data related to turnover is available.

e) Value of Imports on CIF basis

f) Expenditure in Foreign Currency

g) Earning in Foreign Currency

As per our report of even date

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Mar 31, 2006

1. The balance of Sundry Creditor is subject to confirmation. However, the directors have certified the respective balance.

2. No Managerial remuneration has been paid to Directors during the year or earlier year.

3. The company claims to have no contingent liabilities and hence not provided for.

4. Previous year figures have been regrouped, rearranged wherever necessary to confirm with current year figures.

5. Additional information pursuant to the provisions of paragraph 3, 4B, 4C, 4D of part II of the Schedule VI of the Companies Act, 1956.

b) Expenditure on employees in respect of remuneration of not less than Rs. 12,00,000/- for a year or Rs. 1,00,000/- p.m. when employed for the part of the year Rs. Nil. (Previous year Rs. Nil)

c) (i) Licensed Capacity/Installed Capacity Not Applicable

(ii) Production

The Company has not carried out any manufacturing activity during the year, hence no data related to production is available.

(iii) Raw Material (excluding stores):

The Company has not carried out any manufacturing activity during the year and hence there is no Consumption of Raw Material during the year.