TARAI FOODS LIMITED

-_,

ITarai

24rhANNUAL REPORT

201 3-2014

Tarai Foods Limited'-'-' ' -,-

TARAI FOODS LIMITED

Mr. GurPrit Singh Sandhu (Managing Director)(Director)

lExecutive whole time Director)(Directo0(Director)(Additional Director)

Audit Committee, Investors

dievances committeee & Remuneration

& Recruitment Committee

Auditors

Board ol Directors

Bankers

Regd. Oflice

Head Oftice(Plant)

Share Transfer Agent

Mrs. Kiran SandhuDr. R.P SinghMr, Viiay JollYMr. M.S. GarewalMr. Hakam Singh

Mrs Kiran SandhuMr. Viiay JollYMr. M.S. GarewalMr. Hakam Singh

Rattan Anil & Co,

A-90, Gali No.6, lst Floor'

Madhu Vihar Market'Patpargani Bus DePot,

Delhi

Axis Bank Ltd.8-6, LajPat Nagar-ll,New Delhi-1 10024

13, Hanuman Road'Connaught PlaceNew Delhi-110001

Village FazilPur MeharolaRudraPurDistt. Udham Singh Nagar,

Uttrakhand

Beetal Financial & Computer Services (P)

99, Madangir, Beetal House

Behind Local ShoPPing Centre

Near Dada Harsukhdas Mandir

New Qelhi-110062Iel.-.29961241/2

rNE906C01016

IN DEXContents........... . . . . ... Page No'

Notrce .......... ...... " " 1

Attendance Slip . 6

Directors Report. .... 7

Auditors Report. ... .. 17

Balance Sheet . .... " 20

Profit & Loss Account 21

Note 'f io '22' . . ... " " 21'28

Cash Flow Statement 29

Proxy Form .. . .. .... " " 30

lSlN No

Tarai Foods LimitedCIN: 115142D11990P1C039291

Regd. Officer 13, Han!man Road, Connaught Place, New Delhi 110001phone: 011,32629838Fax:011 23341697, Websit€: wwwtaraiioods.com, Emait lD: taraifoods@gmait.com

NOTICENotice is herebygiven thatthe 24 AnnualGenefalMeetingofthe Mem bers of Ta rai Foods Limitedwtltbe hetd on Ntonday,the 29hdayofseptember,2014at0930A.MatElcinaHouse,422,OkhlaIndustrialEstat€,Phaselll,NewD€lh!110020totransactthefo owinsb!sinesses:ASOROINARYEUSINESS:

1. To receive, consider and adopt the Balance she€t as on 31" March, 2014 and the profit and Loss Account for the year ended on rhat dateandthe Reportsof the Directors and Auditorsthereon."RESowEDTHATthe audited BalanceSheet as at 31st March 2014 andthe Profit and LossAcco!ntforthe Financiatyear efded 31st March 2014togethefwith the D irectors' Report and Audltors' Re po rt th e reon be and are hereby feceived, considered and adopted.,,

2 ToappointaDirectorinplaceoiMs.KiranSandhu,whoretiresbyrotationandbeingeligtble,offershersetfforreappoi.tment."RESOLV€D THAT Ms Kitan sandhu (DlN: 000s3876) who retires by rotation, and beins elisible, offers h mse f for re,appointment be ano rshe reby re,a p po inted as Director".

3 To appoint statutory Auditors of the company who shall hold office from the conclusion of this Annua cenerat Meetng untrt thecon€l!sion ofthe nextAnnualGeneralMeetingand to authorizethe Board of Directorstoflxthetr rem!rneratton and in this regard to consrderand, ifthoughtfit,to passwith orwithout modification(s), thefo owing resotution as an OrdinaryResotution:"RESOLVED THAI pursuant to the provisions of section 139 of the Companies Act, 2013 read with section 141 ofthe Companies Act, 2013 &othe.appli€able provisions, ifany, M/s. RATTAN ANIL & co, chartefed Accou nta nts, 4,90, calt No.6,1" Ftoor, Madhu vihar Mark€t, parpar canjBus Depot-, NewDelhi, Chartered Accountants, the retiring StatutoryAuditors ofthe Company be and are hereby re appointed ds StatutoryAuditors ofthe companylorthefinancialyear2o14-15to hold office from the conclusion ofthis Annua ceneralMeetinguntiltheconctusionofth€ next Annual Genera I Meeting of the Companyon such renruneration as may beflxed byth€ Board ofDirectors oftheCompanv.,,

ASSPECIALBUSINESSI

4. Appointment of M r. Hakam Singh as Director ol th€ Compa nylToconslderand ifthoughtfit, to pass, with orwitho!t modification(s),thefollowing reso ution as an ordinaryresotution:"RESOLVEDfHATMT HakamSingh (DlN i 06786586) who was appointed as anAdditionalDirectorofthe companywith effect from 13" lafuarv,2014 bv the Board of Directors pursuant to Section 161of the Companies Act, 2013 and who holds offjce upto the date of this AnnuatcererdMeeting, and jn respect of whom the company h:s received a notice alongwith the req!ired deposit amount, from htmself proposins nrscandidatute for the offic€ of Director under section 150 of the Companies Act, 2013, be and is hereby appointed as Dtrector of the Compdnv,liableto r€tire by rotation."

5. Appointm€nt of M r. Viiay Jolly as a n Independent Oirector of the Company.Toconsiderand, ifthoughtfit,to pass, with orwithout modification(s), thefollowing resolution asan Ordinary Resolutionl"RESOLVED THAT Mr' Vijay loliy (OlN:00080354), an Independent Director of the Company pursuant to Clause 49 of the Ls(n8agreerne.lt entered into wth the Stock Exchanges and whose term of office was liable to be determined by retirement of dtrector ovfotation, be and is hereby appointed as an Independent Director of the Company pursuant to Sections 149, 152 and other appticab eprovisions, if any, ofthe Companies Act,2013 & Schedule lV read wlth relevant ru es made thereunder, with effect from lsr ADrit2014 ior aperiod of five years, who sha ll not liableto retke by rotation.,,

5. Appointment of Mr. Melvinder Singh Garewal as an Independent Director of th€ Compa ny.To consider and, ifthoughtfit, to pass,with orwithout modiflcation{s),thefollowlng reso ution as an OrdinaryResotutionl"RESOLVEoTHAT Mr MelvinderSingh Ga rewal (DlN:06525533), an Independent Directorofthecompanypurs!antto ctause49 ofthe ListingAgreement entered into with the Stock Exchanges and whoseterm ofofiice was liable to be determined by retirement ofdirector by rotation, oeand is her€by appointed as an lndependent Director of the Company pursuanttosections 149,152 and other appticabte provisions, ifany, oftheCompanies Act,2013 & Schedule 1V read with reievant rules madethereunder, with effectfrom lstApril2Ol4for a period offive years, who sh.tlnotliableto retire by rotation."

7. Appointm€nt of M r. Hakam Singh as an Independent Director ot the Company.Toco.sider and, ifthoughtfit,to pass, with orwithout modification(s), thefollowing resolution asan Ordinary Resotution:"RESOLVED THAT Mr Hakam sinsh (DlN: 05786586), an ndependent Director of the company purslant to clause 49 of the LrsirngAgreement enter€d into with the Stock Exchanges and whose term of office was liable to be determined by retirenrent of director byrotation, be and is hereby appointed as an Independent Director of the Company p!rsuant to Sections 149, 152 and other apptic.bteprovisions, if any, of the companies Act, 2013 & Schedule lV read with relevant rules made thereunder, with effect from 1st Apri 2014 for aperiod of five yea15,whoshall not liableto retire byrotation."

8. To a pprove th e remuneration ofthe Cost Auditors for the fina nciat yea r 2014,15:Toconsiderand ifthoughtfit, to pass,with ofwithout modification(s),thefollowing resolution as an OrdinaryResotution:"RESOLVED THAT pursuant to the provisions of Section 148 and all other applicable provisions of the Companies Act, 2013, tf any, and tneCompanies(AudtandAuditors)Rules,2014(includinganystatutorymodificatlonG)orre-enactmentthereolforthe mebeinsinforce),thecost Auditors M/s Neerai Sharma & Co., Cost Accountants (FRN: 100466) appointed by the Board of Directors of theCompany, to conduct the audit of the cost records of the Company for the financial year 2014,15, be paid the remuneration orRs. 20,000/' (R! pees Twenty Thousa nd O n ly).""REsoLvED FURTHER THAT the Board of Directo6 ofthe company b€ and is hereby author sed to do al acts and take attsuch steps as may benecessary prop€rorexpedientto give effecttothi5 reso ution."

9. Sell or otherwise d ispose of the underra kint:To conside. a nd, f tho ught fit, to pass, with or wit ho ut modlfication{s), th e followln g reso ution as a Specia I Resolution :

-r

(11

Tarai Foods Limited

,Tl,qY"r"-tT],r*:::::::::ll:l'l:I"*:l,on 180(1)(a)read with section 110 orthe compan,es act,2013 (as amended or re enacted:::,i:'::::lI:Il:1li:::tF,1"o:"yo''*'i"nvtheapprovarorthememo";;'in;;;;";;"";;i:;il#5rffffi:,:l:fi:fl;,:i'j:j:,::yl:".1:i::::1li:lyl"":'f:yntialythe.whoreoftheu"a";*;;;;:;#;;;;;"'#::[ffiJffi;:i:I::::i?l:-':i:nT:::'j:::"':1"^:::9.Y'11'I'i"wtaeora.vsuct'una"tJ;;i;i;;;'#;:;;;"i'"'"l:,:'j;li;i'l"".il:Hl:::::.ffl"il*ffi::;:tl:"::::'::j:::T":1.:.'-1Jh€nca as;s,ance rrom;;'iffi;;;;;;;;;..,""';;il:jffl"l1l";:determined bythe EoardofDirecrors in the interests otthe Comoanv.,,"REsotvED FURTHER THAT the Eoard be and.is herebv authorized to do att such acrs, deeds and thrngs, to execure a1 such documents,instruments and writings as maybe requiredtogiveeffecrtothis Resotution.,,

Datet 14loal2014

NOTES:

1. A MEMEER ENTITTED TO ATTEND AND VOTE IS ENTITLED TO APPOINT A PROXY, OR, WHERE THAT IS ALTOWED, OI{E OR MOREPROXIES, TO ATTEND AND VOTE INSTEAD OF HIMSEL' ANO TH€ PROXY :TO NOT AT I MEMAER. THE PROXIES TO SE EFFECTIVEsHoutD aE DEPoslfEDArrHE REG'STERE D oFFrcE ott"rcoroltnt "or,arin

IHAN 48 Hot,Rs BEF.R€ THE coMMEN.EMENT oF TH€MEETING.

A PERSON CAN ACTASAPROXYON AEHALFOF MEMBERS NOTEXCEEDING 50AND HOLDING IN THEAGGREGATE NOTMORETHAN 10%OFTHETOTATSHARE CAPITAL oF THE CoMPANYCARRYING VOTING RlGHTs. A Me[aar^ "orotNg

t,lOntIHAN TEN PERCENT oF THE ToTALSHARE cAPITALoFTHEcoMPANYcARRYTNG votNG RTGHTs MAyApporNTAsrtrsir pgnsoruas pnoxyANDsucH pERsoN sHALLNorAcrASAPROXYFORANYOTHER PERSON ORSHAREHOLDER.2 ln terms ofsection 102(1)(a)and (b), none ofthe Dkectors, Kev Manageriatpersons or their reratives have any concefn, financiaror otnerwrse

il:#j]i* "* "t -nrlict or interest in rtem No. 4 ro rtem No. e except whe,e irexpressed under e"J;,r,'",;";.;;;;";;""-yt

*::ilHfitents in respect of items (includins the ones for items of speciat Business under section 102 of the companies Acr, 2013) are

4 Members who hold shares in dematerialized fofm ar€ requested to bring their Dp tD and ctient lD numbers for easy identification ofanendsnce atthe meetinS_5 ln case ofioant holders aftendingthe Meeting, onlysuch ajoint holderwho is higher inthe orderofnameswil be entitled tovote.6 corporate members intending to send their authorized representativ; to atrend the Meeting are requested to send to thecompanva certifi€d copvofthe Soard Resolution authorisingthekrepresentativeto attend and voteon their behatfatthe Meeting.7' For the convenience of the M€mbers, attendance slip is enclosei elsewhere in the Annuar Report. Memb€rs/proxy Holders/AutnonzeoRepresentatives are requested to fillin and affix theirsignatures atthe space providedther€rn and surrenderthe same atthevenue oftheAGM.Proxv/A!th orDed Representatlves of a m em be r5 ho u ta state on ttr e atten aa nce stip as 'proxy or Auth orized Re pres€ntative' a s th e case may be.8 TheDirectors Report, Alrditors' Re po rt a nd A!dited Ealancesheerasat3lst March 2o14and the profitand LossAccountforthefinancrary€ar

end€d on that dateare enclosed.9' In terms ofthe a.ticles ofAssociation ofthe company, read with section 152 ofthe companies act,2o13, Ms. Kiran sandhu, Director, retire byrotstion at the ensuins Annual GeneralMeeting 3nd being eligible, offer h e rse tf for ;e-a ppointment. The Board of Directors of the cotr,panyco"mends her respective re-appointment. The relevant details as required by ctause 49 ofthe Listing Agreements entered into with the stock_ -

Excha nges of pe rso n seek ing re-a p po intmenr as orrector urder ttem No. 2 are annexed he rewrrn.lO. Relevant documents referred to in ttcompanyona,workinsda"*,-*";;.ffi:ili:?ff#:ff ili""i,L::::Hi:.J::,::,*

members at the Resistered office or the

11 The Register of Members and share Transfer Eooks of the company wirl l" .rorua r.orn srtrraay, 27," september, 2014 to Monday, 29,^september, 2014 (both daYs inclusive) in connection wiih the ensuing Annuat Generat Meeting and for purpose of determining theentitlement ofdividend, if any, dectared bythe Companv.12 The company has desisnated an exclusive e-mail lD called grvnces.tft@gmait.com for redressat of sharehotders'/investors, comptaints/srievances. rn caseyou haveanyqueries/comptaint, o,g,i"ur"L.,,t

"n prii"*,,i"i" *

""."u*. "maitaddress.13 t!4embers holding shares in electronic form nray ptease notethatthe bank ac€ount detaits and 9 digit MtcR code oftheiraankers, as noted In therecords oftheir deposjtorv, shall be used forthe purpose of remittance ofd;vidend throuBh Er€ctronic ctearing service (Ecs), orfor printing ondividend warrants wherever applicable. Members are therefore requested to update their bank accoun, p"ni.rrr^, .i'jr" "i"iJr"., "*oth er cleta ils with their respective De pository Pa nicipa nts for sh ares hetd in d emai mode a nd to the Regist.u,

"na sr,"." r.*L, oc"*

"|-shares held in phvsicatfornr.

14' The securities and Exchange Board of lndia (sEBl) has mandated the submission ot permaneot Account Number {pAN) by everyoarticipant in securities market Members holding shares in electronic form are, theretore, requested to submit rhe pAN to (nerrDepositorv Panicipants with whom they are maintainingtheir DematAccounts. Members hordrng shares in physicatfofm can submittherr pANdetaits tothe Cornoanv.

t2't

Eyord€rofthe BoardFor Ta.ai Foods Limiredsd/-Dr R.P. Singh, Executive Whole Time OirectorDIN:03515102Address: l/3/3 Phoolbash pant Naaar, Udha m Singh Nagar, 26314s, Utta rakhand.

Tarai Foods Limited

15. Members hotding shares in physical form may nominate a person in respect of all the shsres held by them whether singly or jointlv

Members who hotd shafes in individualna.ne are advised to availofthe nornination facility by filing Form No 2BV in theirown interest. Blank

form can be had from Beetat Financial & computer Sciences (P) Ltd. on request. Menrberc holding shares in dematerialized form mav contact

theif respective DP's for registration ofnominaiion16. Members hotding physicatshares tn mutt pte folios in identical name are requested to send their share certificates to Company's Registrar and

ShareTransferAgent, M/s BeetalFinancialand ComputerServices (PiLtd forconsolidation

u. Ihe copies ofthe AnnuatReports wiil not be distributed atthe AnnualGeneral Meeting. Members are requested to bring their copies to the

meeting18. jn case of any query, Members are requested ro send the $me to the company secretary atleast 10 days before the date of th€ meetans

so thatinformation can be made availableatthe meetrng.

19. Members are requested to notethat noGlFTwillbe dhtrib!ted atthe meetinc

ZO. Members who have not registered thek e-mail address so far are requested to register their e r.ail addr€ss for receiving all

communication inciudingAnnualReport, Notices, circulars etc from the Co mpa ny electronica lly'

21. The entire annualReport ls 2lso available attheCompanY sWebsitewww.taraifoods-com.

22. As p€r s€ction 101(1) read with Rule 18 of the companies (Manasement and Administration) Rules, 2014 on Green initiative, the

Cornpanvwi send AnnualReport stong with orher documents though emailsto allmembec, who have registered their emailaddress with the

depositoryand physicathard copies willbe dispatched toothe|s.In case any memberdesifestogethard copyofAnnualReport,they€an writeto

Company at reghtered office:ddress oremail at grvnces.tfl@gmail com.

23. ]n term5 of the provisions of section 108 of the companies Act, 2013 (the Act) read with Rule 20 of the companies (Management and

ad m inistratio n) Ru les, 2014 (the Ru les), the ltems of B! siness given in AG M Notice m ay be tra n sacted th rough electron ic voting system an.l the

company is providing e,votinsfacititytothe members who arethe members as on 22/Aa/2014lEnd ol Day) being the "Record Date" flxed fotthe

pr.r.pose, to exe rcise their right to vote at the 24th AGM by electronic means through the e voung platform provided bv centGl Depository

seruices India Ltd. (CDsL).

24. The processofe votingshallbe asfollows:

The instructions for members for votinB ele.lronically ate as underr(i) The votng period begins on 23" September, 2014 at 10:00A.M. and ends on 25'" September, 2014 at 6:00P.M. During this period

shareholders of the company, hotding shares either in physical form or in dematefiallzed fofm, as on th€ cut off date tecord date) of

2 2/08/2 014, may ca st t heir vote electronica lly. The e-voung mod u le shall be d isa bled by CDSL fo r voting thereafteL

IV'(vi)

The shareholders should log on tothe e-voungwebsite wwwevotingindia com

Clickon "Shafeholders" tab-

Now Enteryour User lD

a. For CDSL: 16 diSits beneficiary lD,

b. Fo r NSDL: 8 Character DP lD followed by 8 Digits Client lD,

c. Members holdingshares in PhysicalForm should ent€rFoiio Numberresisteredwith theCompanv'

Nextenterthe lmageVerification as displayed and Clickon Login

tf you ar€ hotdingshares in dematform and had togged on to wwwevotingindia.com andvoted on 3n earliervotingofanv€ompanv/ then your

existing password isto be used.

(vli) lfyou are. flrsttime userfollowthe steps given belowl

(ii)

(iii)(iv)

For Members holdina shares in Demat Fo.m ancl Phvsical Form

Enter your 1O dagit alpha nume.ic *PAN issued bv Income Tax Depa.tment(Applicable for both demat shareholders as wellas phvsicalshareholders)

. In case the sequence number is less than a diBits enter theapplicable number of o's before th€ number after the fir5t twocharacters of the nam€ in CAPTTAI l€tters Eg lf vour name isRamesh Kumar with sequence number l then ent€r RAOOOOOOO1 in

rhe PAN field-ooe I e^t". t|.," oate ot einh 5s re:;rded in vour d"-at .-"""t oi i" tr'"

company records for the said demat account or folio an ddlmm/vvvvformat-

. Members who have not updated their PAN with thecompany/Depository Participant are requested to use the first twoletters oftheir name and the a diCits ofthe sequence nuhber in the

Enter the Dividend Bank Details as recorded in vour demat account or in

rhe company records for the said demat account or folio

. Please enter the DoB or Dividend Bank Details in order to loein lt

the details are dot recorded with the depositorv or companv please

enter the mehber id / folio number in the Dividend Bank details

Tarai Foods Limited

(viil) Afterenterinethesedeta lsappropriately,clickon',5UBMtT,,rab.(xl) Members holdingshares in physicalform wilthen rea€h directlytheCompanyselection screen. However, members

(x)

(xi)

(xii)

(xiii)(xiv)

(xv)

(xvi)

(lvii)

holding shares in demat fornr will now reach 'Password creation' menu whefein they are required to mandatofily enter their loginpassword in the new password field. Kindly note that this password is to be also !sed by the demat holders forvotin8 for resolutions of anyother company on which they are elitible to vote, provided that company opts for e-voting through CDSL platform. lt k stronglyrecommended not to shareyo!r password with any otherperson andtake utmostcareto keepyourpassword confidentiat.Fof Memberc holdingshares in physicalform, the details can be used onlyfore-votingonthe resolutions contained inthis Notice.Click on the EVSN forthe felevantTaraiFoods Limited on which you choosetovote.Onth€ voting page, yo! wil see"RESOLUTlONDESCRlPTtON"andagainstthesametheoptjon,,yES/NO,,forvoting.Selectthe opt on YEs or NO as desired. The option YES implies thatyou assenttothe Resolution and option NO impliesthatyou dissent to the

Clickonthe "RESOLUT|ONS FILE LtNK" ifyou wishtoviewthe entire Reso ution details.Afterselecting the resolution you have decided tovote on, click on "5UBMlT". A confirmation boxwillbe dlsplayed.lfyou wishto confirm vourvote, clickon "OK', e se to change your vote, clickon "CANCEf'and accordinglymodifyyourvote.Once you "CONFlRM" yourvoteon the resolution,you willnot be allowed to modifvvourvote.Yo! can a sotak€ out print ofthevotlngdone byyou byc ickingon "Cllck hereto print,,option onthe Voting pa8e.lf Demat account holder has forgotten the changed password rhen Enter the user lD and the image verification code and click on ForgotPassword &enterth€ detai s as prompted bythe system.Notefor Non Individual Shareholders&Custodiaf si. nstitutiona shareho ders (i.e. other than ndivlduals, HUF, NRI etc.) are requhed to los

registerthemse ves as Corporates.. They should submit a scanned copy of the Registration Fofm bearing the

he pdesk.evoting@cdslindia.com.. Aitefreceivingthelogindetailstheyhavetocreateauserwhowoudbeabletolinktheaccount(s)whichtheywishtovoteon.

' The list of accounts sho(]ld be mailed to he pdesk.evoting@cdslindia.com and on approval of the accounts they would be able to

' They should up oad a scanned copy of the Boafd Resolution and Power of Attorney (POA) wh ch they heve ksued in favour of theCustodian, ifany, in PDFformat in thesystemforthe scrutinizertoverifythe same.

In case you have any queries or issues regarding e'votin8, yo! may refef the Frequently Asked Questions ("FAQS") and e-voting manualavai able atwww.evotinglndia.com underhelp section orwritean emailto helpdesk.evoting@cdsl ndia.comThe Company has appointed Mr Saftosh Kumar Pradhan, Pract cing Company Secr€taries as the Scrutinizer for conducting the e-votingprocess, postalballotand the process of Pollin theAnnua GenerallVeeting in a fair and transparent manner.The Poll Papers will be diskibuted at the venue of the AGM for voting by those members who have not vot€d through E-voring. Furrher,please note that ltem No. 9 of the attached Notice is a compuJsory item for Postal Ballot and hence the item No.9 shalt not b€consldered for Pol in theAnnua General MeetinB.fhe results ofvoting sha I be declared by the Chaifman ofthe meeting on or afterthe AGM ofthe Company. The results declared along withtheScrltinizer'sReportshalbeplacedontheCompany!websitewwwtaraifoods.comandwilibecommunicatedtotheBsE&NsEandalsoonthe webslte ofCDSLPursuant to Cleuse 49 (lv) {G) of the Listin8 Agr€ement the details of Directors seeking appointment/re-appointment in the AnnualGenera I M eeting sched uled on Monday S€ptember 29'", 2014 a r€ as b€low:Brief profile of Ms. Kiran Sandhu, Direclor, recommend€d tor re-a ppointment:Ms. Kiran Sandhu, aged 65 years has vast experience ln the food business ofthe Company and she has been associated with the Companvformorethan a decade. She byqualification isg|ad!ate inTexti esand Designingfrom Delhipolytechnic.Ms. Ki.an Safdhu is on the Board of Tarai Farmlands Pvt. Ltd. and suraiya Exports Pvt. Ltd. She k the member of Audit Committee,Remuneraiion &recruitmentCommitteeandlnvestors'/Shareholders crievanceCommitteeoftheCompanvNon€ ofthe dlrectors except lVs. Ki|an Sandhu is interested in proposed resolutions. However, Mr. G. S. Sandhu, Dir€ctor ofthe Companvbeing related to her may a lso be deemed to be interested in the proposed re a ppointment.Brief profile ot M r. Hakam Singh, recomm€nd€d for appointment as Director & fixint the term as lndepend€nt Director:He has rich experlence ofover 30 years in the refrigeration systems like Air Conditioning Equipment, KC 72 & Kc-Series Cornpressing, ChillintP ant, Eoi!e6, FrickIndiarefrlge€tionsystemandalltypeofCumminsEngine,D.G.set,FrenchFry&FruitsVegetablespro€essingFreezingtineProd!ction lncluding Mushroom growing, including compost, pasteurization, spawning all activity in growing foom, quality control ofMr.rshroom & its canning, vegetable processingof5now Pea, Peas, Sweet corn, BabyCorn,5trawberry Spinach, cauliflower, Carrot etc by Le.F.system, q!alityconirol of raw material &f inished product.He is holding NlLshares ofthe Company.Ariefprofileof Mr. Vijaylollyto beappointedasan IndependentDirectorofth€ Company:lvlr. Vijay lo ly is a retired Naval Officer from ihe Ex€cutive Branch of Indian Navy. He has fich experience in running Holiday Resort and is:ssoclated w th varlous oroiects in the field ofElectronics.Mr Vijay iolly is on the Board of obex lndia Pvt. Ltd. and TVJ Steels Private Limited. He is the member ofAudit committee, Remuneration &recruitmeftCommittee:nd Investors / Shareholders'crievance Cornmittee ofthe Companv.HeisholdingN L shares ofthe Cornpany.

(/avii)

on to httpsr//wwwevoiingindia.com and

stamp and sign of the entity to

(xix)

27.

\4)

Tarai Foods Limited

d. 8ri€f profile of M r. Melvinder singh Garewal to be a ppointed as an Independent Dircctor of the company:

Mn Melvindersingh Garewalis retired wingcommandor Air Force and has reached experience in farm ng

He is holdingNlL sharesof theCompany

gy order of the Eoard

ForTarai f oods l-imitedsdl-Dr. R.P, Slngh, ExecutlvewholeTime DtectorDIN:03615102Address; l/3/3 Phoolbagh Pa nt Natar, Udham Singh Nagar, 263145, t,ttara khand '

Plac€:RudraPurDate:14/08/2014

ANNEXURE TO NOTICE

EXPLANATORYSTATEMENT UNDER SECTIOiI102 OF THE COMPANIES ACI,2013.

ITEM NO.4lThe Board ofDirectorsofthe companyappointed Mr Hakam Singh asan Additional DirectoroftheCompanywefl3'January,20l4inthecapacityof

the tndependent directof as perthe clause 49 ofrhe Listing agreement.In accofdance with the provkions ofsection 161ofth€ compani€s Act,2013)

read with Arttcte of Articles of Association of the company, Mr. Hakarn 5ingh holds office up to the date of this Annual Gene|al Meeting of the

your goard considersthat his continued asso€iation with theCompanywould beofimmense benefitttothe Com pany. In view th ereof, your Board ha\

re€ommended him to be appointed as the Directorofthe company. The company has received a notice in writingfrom himselfalongwith the deposit

of requisite amount undersection 160 ofthe Act proposingth€ ratificarion of Mr Hakam singh as Director in the annualGeneralMeeting ofihe

The orooosed resotution does not relate ro or affect the business interest of any other companY in which the Promotef, Directot Manager or Key

Managela oelsonnel have subsrant,.l i.terestNone;frhe Directors, Key Manageriatpersonnel& Retativesofthese personsexcept Mr Hakam singh is interested in the proposed resolution,

Thedirectors recommend the said tesolutionforthe approvalofthe members oftheCompany

|TEM NO.5,5&71The Board of Directors olthe company compnsesthree independent directors Mr vijaylolly, Mr. lvlelvinder Singh Garewal, Mr Hakam Slngh who

were appotnted pursuant to clause 49 ofthe Listing Agreement entered into with the Stock Exchanges. Section 149(4) ofthe companies Act, 2013

states that every lisled pubtic company shall have at l;ast one-third of the totalnumbef ofdirectors as Independent Dircctors. section 149(5)also

providesthat ev;rycompany existingon orbefore the date ofcommencementofthisActshall,within one vearfrom such comm€ncement orfromthe

date ofnotification ofthe rules in this regard as may be applicable; comply with the requirements ofthe provisions ofsub_section (4). section 149 {10l

ofthe companiesAct,2ol3, intefalia, providesthat 5ubjecttothe provisions ofSection 152, an Independent Director shailhold office for a term upto

five consecutive years on the Board of a company. tt is further clarified in the provlso to sub-sectlons (10)and (11)of section 149 ofthe Act that, any

tenureofan Indeoendent oirectoronthedate ofcommencementofthisActshallnot becounted asaterm underthose sub'sectlons (10)and (11)'

your Board is of the opinion that the above mentioned 3 lndependent Directors fulfill the conditlons spe€ified in the Act for appointment as

tndependent Directo|s ofthe Company and the proposed Directors are independent ofthe t!'lsnagement ofthe company and fulfills the conditions

specified tn the Act and rules made thereunder Details in respect of these three Directofs, who are ptoposed to be appoint€d as Independent

Directors, are furnished in the Note No. 29 of this Notice. A1l the three directors are eminent personalities in their respective fields Your Board

consideG that their continued association with the company would be of immense benefit t to the company ln view thereol youf Board has

recom men d€d t hem to be classified as lnde pendent D irectors

Accordingly, yoLr r Board has recommended forapprovatofthe shareholders byway ofordinary resol!tion, undef item nos. Sto 7 ofthe accompanyrng

notice, the classtftcarion ofthe aforementioned Directols also as an Independent Dire€tors pursuantto Section 149 ofthe Companies Act, 2013 read

with Rules madethereunder, withtheir respectivetefm ofofflceto befors period offive yearswjth effectfrom 1stApril2014.

The Company has received notices in writinB from themselves/members' alongwith the deposit of requisite amount under Section 160 of the Act

proposing the crndidature of dlrectors Mr viiay Jolly, Mr Melvinder singh Garewal, Mr. Hakam Singh for their respectiv€ appointment as an

[X'J""i,nT.:il::f:,"Jt]:iiIlilt"*",0'.*-, rr. vijayrory, Mr. Melvindersinsh Garewar, Mr Hakam sinsh asan Independent Directorsettins

outthe terms and conditions i! availableforinspection by members arthe Registered office ofthe company.ThisStatementmav also be regarded as a

disclosure underc ause49of the ListingAsreementwiththe Stock Exchanges

The orooosed resotutton does not retate to or affect the business intefest of any other compaoy in which the Ptomoter, Directof, Manager or Kev

Managerial Pe6onnel have substahtiai interestMr. Vijaylo y, Mr MetvlnderSingh carewal, & Mr Hakam singh andtheir relatives ar€ interested in the resolutionsset out respectivelv at ltem Nos

5to/ ofthe Non.e * rl. rega'ototheir re(oect'veappoirtments

save as the above, none ofthe oth€r Directofs/ Key managerial Personnel ofthe companY/ their relatives are, in anY wav, concetned of Interesleo,

financiallyorotherwise, in these resolutlons.

Thedirectors fecomnrendthe said resolution fortheapprovalofthe nembers ofthe company

ITEM NO,8.The Board, on the recommendation orthe Audit committee, has approved the appointment and remuneration ofthe cost Auditors- M/s Neerai

sharma & co., conAccountants {FRNr10O455)ro conductthe auditofthe cost recordsofthe companyforthefinancialvearendingMarch 31,2015 at

an Annual Fee of Rs. 20,000/ (RupeesTwentvThousandOnlv)

tn accordance with the provisions ot Section 148 ofthe Act read with the companies (Audit and Auditorr) Rules,2014, the remuneratlon payable to

the CostA!ditot5hasto b€ ratified bYthe shareholdersof the

Tarai Foods Limited

Accordingly, consent of the members is sought for passing an Ordinary Resolution as set out at ltem No. 8 of the Notice for tatification of the

remuneration payabletotheConAuditorsforthefinancial year2014 15

The proposed resolution does not relate to or affectthe business interest of any otherCompany in which th€ Promoter, Director, Manage. or Xey

M a naserial Pe rson nel have su bstantia I interest.None ofthe Directors/ Key ManagerialPersonnelofthe Company/their.elativesare, in any way, concerned or interested, financially orothelwise, in

The Board recommendsthe ordinaryResolutionset outat ltem No.8ofthe Notice for approva I by the sha reh olders.

ITEM NO.9:The section 180(1)(a)ofthe companies Act, 2013 provides the powerto the Eoard of Dkectors ofthe Company to sell, iease orotherwise dispose ofthe whole or substantially the whole ofthe undertakinS including slump sale bythe Company. Further, the assistances from the institutions / banks

provided / agreed to be provided to the Company have to be secured by the morttage and charge ofthe assets ofthe Company, both present and

future and thewholeof the undertakincof the cornpany.The Company therefore requires the approvalofthe Member5 ofthe Companyto s€llwhole or partoflhe undertaking ofthe CompanyunderSection180(1)(a) of thecompaniesAct, 2013.

The proposed resolution does not relate to or affect the business interest of any other Company in which the Promotet Director, Manager or Key

Managerial Personnel have subgtantrar intFrFst.

None ofthe Directors / Key Ma nageria I Personne I of the Company/their relatives are, in any way/ concerned orinterested, finan€iallyor otherwise, rn

thesaid resolution.The goa rd recom mends the sa id Resolutio n for approva I of the shareholders by way of Specia I Resolution th rough Postal Ballot.

Byorderotth€8oardFor Tara i Foods Limited

Da/f-tr4/OAl2OL4 sdl'Dr. R.P.singhExecutive Whole Time DiractorDIN:03515102Address: l/3/3 Phoolbagh Pent Nagar, Udh.m singh NaFr,253145,Uttarakhand.

Tarai Foods timitedClt'l: 115142011990P1C039291

Regd. Office: 13, Hanuman Road, Connaught Plac€, New Delhi_ 110001Phom: 011_32629838

Fax:011-23341697, Webslter wwwtaraifoods.com, tmail lD: taralfoods@gmail.com

ATTENDANCE SLIPPlease fill attendance slip and hand it over at the entrance o{ the meeting hall. Joint shareholdersmay obtain additional Slip on request.

Master Folio No. No- of Shares helcl

Name of Shareholder

Address

I hereby record my presence at the 24th Annual General Meeting ol the Company held on Monday,29th September, 2014, at 9.30 A.M. at Elcina House, 422, Okhla Industrial Estate,New Delhi-11OO2O

(Signature of the Shareholder or Proxy')

' Strike out whichever is not applicable.

IMPORTANT

Shareholders may please note that No Coupons / Gilts will be-distributed at or betore lhe Meetlng.

{6t

,i"TLHl;;IjHl"*ctorspresentthe24'hAnnu",^"'"Hffi;HffitedFinanciaiAccountsrortheyearended3l,'March,2014.

REVIEWOFOPERANON:

The company has in€urred the net loss of Rs. 57 tacs as compared to the toss of Rs. 35 Lacs in(revenueorthecompanvhasincreasedtoRs.le6LacsascomparedtoRs.168L".,'";;;;,#::i;jlrtll"",i#ili,Xiili;llI""TJ;.,Tffito prev ol]syears sale but Frozen peasturnovershowed improvement.In the vear under feviewthe companv has dive',ifled into Mushroom growing rn anifrciaryconrroIed temperature setting. Thisyeartheaompany hasprocessed s6ronnesof Fro2en peas, processed smal quantiles of F;ozen s;"",."r";;:;;;i;orexpandinstheMushroo.;0";*il";;;;,,."tonea.rvltonadavandar-***."",",]il,""'Ji]l:T:,i'Ji::T"';""*ctorsarehoperul

UANAGEMENT DISCUSSION & ANALYSIS REPORT, REVIEW OF OPERATIONS DURING fHE YEAR & FUTURE PLANSI Industry structu r€ and developments,Indian food processing industry is widelY recognized as a_sunrise industrv, having huge potentiat for uplifting agricu ltu ra I economy, creatjng oflargescale piocess€d food manufacturingand foo-d chain facilitiesand theresutta'n,cJ"J*,r"

".n',ot.r."nt and exportearn,ngs.Indian foodindustry is expect€d to grow to uss 280 billion bv 2015 andgenerate an addirio n" r

"irpioun''" * a'.

"op-"im atery 8.2 miIion peopte. The Indianfood industrywhich pr€senttystands atcloseto.uss 13s S,rr,on *,,1" *Cn"ilo p",'

"'",.'i o *o**o a.*h usS 200 bilion by201s. rhefoodprocesens Industry in India attracted foreign direct investments (FDr)worth uss s,793is milion during ," p"ri"a oor,izo,jo rvr"r.ilo,oaccordinstodata pubtished by Deparrment of lndu stria I poticy and promotion lDtppl.Mushroom farming is practiced in more than 100 countri;s and ir, p'oa*ion'," in.r.producton ormushroom.sover2s mirrion tons as pe,craims orchineseAsso.",,"".r;i;[t lT::[ii"ilillil;1T.1'3iill];Yi#utilizesthe verticalspace and is reBarded as the highest protein producer per unit

"r"u "njfi." armostl00timesmorethantheconventionalagricult!re and animal husbandrv This hign tech horticulture venture has a promising scope to meet the food shortages without unduepressureonland lnlndia,mlshroomproductionshotupfromnear5000tonsinlgg2ov;1ractonsin2010. Indiaproducesabout600miliontons of agricultu ra I waste annuallv and a major part of it are left out to decompo."

"",ri"iiyto., urr,..t&/. This can effectivery be utilDed toproduce hishlv nutritive food unlike mushrooms and spent mushroom rd;;;-;;;" ."""""ed into orsanic manure for fierd crops.

HH",J,f,;:[,H:l:hrv rabow oriented venture and two ractors,

'.", *,'r"o'r',L.

"i **.ateriar and rabour make mush,oom srowing

on the export front also, for the first time durin81994 India not only figured in the us imports but emerged as the nd largest exporter ofrhecanned mushrooms replacingTaiwan Now a few comrn ercia I mush roo-m unitt ",;;";;;:;r"""""",rshroomsto the Americans, Europeanand othercountrjes regularly.

ii. Opportunitiesandfhreats.

Foodsandvegetabtes fastgfowingsectorFruits and veSetables are one ofthe most importantand fast growing sub-sectors ofthefood processinS industry overthe last fewyears, the,enas been a Positive growth io readv to-serve beverages, fruitjuices and putps, dehydrated and frozenf.i,,

"na u"*","tr" proar'.ii io.u,o

I-o.lu(ts prches convenience ve8 spice pastes, processed mushrooms and curried vesetabtes. The demand has increased because of rheracto,' lile consumption bv nudearfamiles, wo*ingwomen, studentsand singr"

". pi"v"*

","v'"g ","ne. There are abundant oppoftunitiesin expanding the expon market because ofsood internationaldemand for cei"i" rrritr

""0 *g",rrr products. The Indian food processinsindustry k pr marilv export oriented lndia's geographical situation gives it ih" uniqr"

"a*nt"g" of connectivity to Europe, the Middle Ea+lapan,singapor€, Thaitand, Malavsia and Korea_ urupc, ure rMroore ta-.,Macro_economic as wellas industrvspeciflc (FMcG and Packaged Food) indications point to endunng buoyancy in the domestjc market, whitethe internation a I geogra p hjes inwhich yourCompanyoperatesare titetyto be statte asweit.chansing demosraphics (voung, higher disposable iocome, experimentat, urbanization, wilingness to spend) further fueJted by trends tike agreaterawareness of health and nutrition oopporrunitv

n one hand and more hedonism (especiallythe new 'afflue nt' ge neraiion ) is rapidiy enlarging tie

fr"*""a.. -ro,

tt "

p"rioa una"a For the perlod ended

I7)

Tara i Foods Limited

Devetopmenttrends of Mushfoom industry is based on the increasing consumer consciousness and demand for nutritiou5 quality and organic

products in domestic and international ma rket. lncreasing interest in protection ofenvironnrentfrom the industria I pollution and environment

friendty progress tn mushroom pfoduction and p rocessing tech n ologies resulting in tremendous gfowth inthe productivity and production of

mushrooms.

Strength:-Mushrooms aregrownseasona!ty aswerlasstate-of-artenvironmentcontrolled croproom in the com mercial units lt is high ly labou r oriented

ventureand tabour availabitity is noconstraint in the vicinlty of Tarai Foods and two factorsthath availabilities of raw materials and labourmakc

mushroom growing economica y profitabte in this region. Moreover, Tarai toods Ltd. Rudrapur is located in the bowl of raw materials like

Wheat straw, sugarcane Bagasse & chlcken Manure required for compostinB. Besides,the moderate climate ofthefarairegion iswellsuited to

mushroom production astemperature doesnot as high alike other partsofthecountry'

Awa re ness a bout food a n d med rcrn a I va tues of mushrooms increasing q ua ntitative use of m ush toom s in the countrv thus creating better ma rket

for a Droduct tike fresh and proc€ssed mushrooms. There k increasing market for post harvest products like pickles or soup powder of

mushfooms.Threats. Uncontrolled Pice stuctute

When there is a glut in the market, rhe price ofcertainfood items falls down considerablybut asthed€mand increases orthere is shortage of

those food items in the market the pflce rises up with a vast vafiation. Thus there is always an uncertainty in mafket prices of moet ofthe food

Items which reduces the amount of ner profit and this discourages the manufacturers/ producers of these food items This problem gets

agg|avated during peakproduction months, also becausethere is no minimum support pticefromthe Govt

. Highttonspottotioncharges:AlihouSh, agro and aniriatwastes are avaitable tn plenty in lndia but their availa bility are not evenly distributed. Due to diversified climate and

topography of land, different kinds of crops are raised in different parts of the Country and production/ manufacture have to pav heavY

transportcharges.The hike in d iesel/petrol p rices from time totimeagg€vatesthis problem

. Connercial rate of electricity toriff:

Simitafty, both small and big production/ manufacture have to pay electricity charges al commerciai rate, although mushroom farming is an

agricu ltu ra I activity. tt has been hightighted by the concerned scientific communitydurinE scientific gath erings, seminars, me€tings etc manY

times, but no reLief has been given. This has ted to high cost of production du€ to increased capital as well as recurring expendit'rre on

production/ manufacturlngaffecting itscompetitiveness in worrd markets

. Competition: eg Availa bility of ca n ned Ch inese m ush room a ower pr ce'

. H tgh cost of e nergy tarifi for year rou nd p roduction though the mushrooms have been included as one of th e agricultura I crops.

. unorganized production and sate panicularty byseasonalfarmers resultingin glutin marketduringwinter months.This results in price cutin the

. Lack of modern fac ities to prod uce qua lity com post, casing mate ria I spawn a nd p rocessed p foducts. TFL is going to irn prove its facilities in th is

regard. To addr€ss these risks, the Cornpany has a single point source supplier of Frozen/lOF {lndividuallv Quick Frozen products to the

customers as pertheir requirementswith high qualityproducts at a lowercost.Though the cornpetition isfietce, the goodwilland the quality of

the prodrcts offered by rhe company are great plus factors and the company expects to overcome the competition. The company had

expanded its productline both horizontallyas well as vertically

iii. Product-wise performa nce.

Proc€ss€dfoods. Fresh Mushroomi ' Fro2ensw€etcorn

Prcduct-wise performance sal€ of Finish€d Goods

DescriPhon

iieitr vusnioomi

Cufr€ntOty. (inMTs) Value(inRs rnlacs) OtY (inMTs) Value (in Rs

88.12 96.91 . ll5 116 30

The company has completely diversified in Mushroom growing in artificially controlled ternperature settinS. lt has been suc.esdul in creatinC

.apacitie5 ol l, ron a day'or Mushroo'r and:s l"opetJrofetprnding it to I ror a ddv ra nea'furr'F

The overa cunent yeais producnon and realizations in Frozen vegetable category have improved in the current y€ar as compared to th€

p'eviousvedr, bul Compdny,lhopefu to.ortin.rew'rhtheinc'Fasingtrendqis Outlook

Food processinB Industry is of enormous signtficance for India's d€velopment because of the vital linkages and synergies that it promotes

between thetwo pillars ofthe economy, namely Industryand Agriculture.The growth pote ntia I of th is sector i5 €normou s and it isexpe€ted that

the food prod uctio n wi d ou ble in the next 5 years an d the consumption of value added food prod ucts will also grow at a fast pace This growth of

the Food processing Industrywillbe ofimmense benefitstothe economy, raking agricu ltura I yields, meeting productivity, creatingemploYment

and raising the standard ofvery targe number of people thfoughout the Countfy, specially, in the ruralareas Economic liberalization and rising

cons!merprosperitY is opening up new opportunitiesfordjversificatlon infood processingsector

. (8)

' FrorenPeas . Mushroomspawn

Tarai Foods [imited

Th€ nature ofthe lndianiood processrng marketand rheexperiences of successful Indian and MNc plave15 lndicate thatthissectorwillgrow

substantiallyin future because of thefollowing reasons :

1. Effective d istributro n network a no su pply chain 3 5u perior processln g tech nologv

2. Producttangethatiscustomizedtosuitlocalmarketrequirements' 4 Brandbuildingandmarketrng

vanagement isconsktentty keepingctosewatch onthechanging marketscenarioandthe busin€ssstratesvis review€d regularlYfor achievins a

consisientgrowth bymeetingthe tough internationa I competition successfullv

v. Risks and concerns.

Eve ry bu siness has in herent risks invorved in it ope rations, which may be eithe r extern a l ot inte rna I The external factors a re ma tket co m petitio n'

availabitity of cheap€r substitut€ produ;ts, covernnreni policies regarding pow€r tariffs and ongoing political and economic changes in the

importingcountryTheLompanymaynothavemuchcontro|oversuchfactors;howevelitisimportanttoaddresstheserisks&concernrtomittgatetheiroverallimpacton the business. FofmalrGk assessment and Management approach alongwith the regularmonitoring mechanrsm

in tt"" comp"ny ensurestt atthese risks are duly addressed and wellmanaged. High focus on safety ofplant, its premises and peopl€ continuitv

and proactive Management of retated bustne;environment are essentialfor the rhk management in the overellsupplY chain and business in

vi. Internal control systems a nd their adequacy

The company has an adequate system ofiniernalcontrolsto ensurethat allactivities are monitofed and controlled aswellastranssct ons are

.lthorized, recorded and reported *rr".irv rn" company ensures adherence to all internat control policies and procedufes as well as

comp iancewith allretulatorvguidelines,which are supplemented byinternalaudit regularly'

The Auditcommitteeofthe Board meerson quarterly basisand reviewsthe jnternalcontrolsYstemsaswellasfinancialstatements

vii. Okcu tsion on financial perio.mance with respect to operational performa nce'

Th€ company has diversified its operations inio Mushroom growing in artificiallycontrolled ternperature settlng and offers a wlde range Frozen

and eF {tndividua y euick Frozen} product range of peas, fruits/ veg€tables as perthe requirements ofthe customers, meetlng strict qualitY &

hygiene standards. cannea o"rr," *.,"r..t "p* "nd siies are atso avaitatte as perthe customer requirement. The companY is a sintle point

source of supplierof Frozen, lQF, productstothe customers 3s perthelrrequrremenrs-

viii. Materiat d€vetopments in Human Resources/ Industrial Relations lront, including numberolp€oPle emPloYed'

TheCompany|aysdueemphas15onsoundHumanResoUrceMsnagementpracticesandapprajsalsystemswithfocusoncordiaIemp|oyeere|ationstoensurehi8her|evelofproductivityandoperationaIefficiency'Adequateeffortshavebeenmadetostrengthenanddeve|op|tshuman r€sourcesasa keystrengtntnrough continuousiraininginputs and focused development plan. As on 31st March 2014, the totalnumbers

of permanentemployeesin theCompanvwere 15

The beIef thar'great peopre creare great organtzations' has been at the core ofthe company s approach to its people We continuedto make

signific.ntinvestmentsfortrainingrntheare;sofmarketingexcellence,customerserviceandbuildinccapabilitiesfororganlzedretailtrade-STATU5 OF MAIOR LITIGATION:

Duringthey€alunderreviewIFc|Ltd'hasfi|€dwindinguppetitioninDe|hiHighcourtu/5433(e)and434ofthecompaniesAct,1956whichi5being€ontestedbYthecompanyAcounterclaimofRs5533croteshasbeenfiledbythecornpanvagainstlFclLtdorvlDEl'lo:ThecomDanyha5incur.edIossesduringtheyearUnderreviewandnodiVidendistecommendedfordec|arationfortheyealended3l,'March,2014'AUDITORS:

M/s. RattanAnrt& co, chartered Accountants, A 90, caliNo.6,1"Floor, Madhuvihaf Market, PatparcanjBus Depot., Delhi, chartered accountants'

auaitorsofthecompanyretireattheconcIusionoftheensu]ngAnnuaIGene€lMeetingandoffeIthemseIvesforre-appointment'The compsny has receiveo

" *n,,"n

"onr"n,,o r., as the au;itorand certificatefrom the Auditors to the effectthat their reappointment, ifmade'

would be in accordancewiththe provisions ofsection 141ofthe CompaniesAct' 2013

DIRECTORs COMMENTON AUDITOR'5 QUALIFICATION:

Audiror,s Responsibitity Stat€me reao with clause 12 0n Note 22: The €ompany has been repaiting the plant on regular basis depending on the

liquidity position as perthe *"a "ran"

**.i",""rt";epairs are msdetothe plantand plant & mschineries everyyea.The companvhas alsofiled 3

casewith the High Co!n on Insurance Companytowardsthisclaim-

Auditor,sresponsibititystatem€ntreadwithciauseg on Note22:The companyhad entered into settlementwith secut€d lenders and part paYments

havea]readybe€nmad€totheseIendersasperthetermsofthesettIementintheearl!eryears'AItho!gha||the5ecuredIend€15haveaIreadyreVokedthe sanctioned set ement. But the compan; has appfoached them aSain and is hopefutto clearthe default as per the negotiated settlerl1ent As per

the discussionson the sentements, tne rnteiestare not payabletothem on the original liability and cLrrrent provision oflnterest due to the +'rred

|€nder5 a|ong with PrincipaI amount due to them at Rs' 4,26,3!4,a2gl (afteI taking into consideration the paYment made toward5 the negot|ated

settlement}asperBooksofAccountsismorethanthesettIementamoUntdiscussedwiththeselendelsandinViewofthis,thereisnolreshprovrs!onofinterestmadefoItheyearUnderreuewintheEooksofAccounts'comp|etedetai|5havebeenprovidedinthec|aUse09onnote22whi.h]sseji

auditor,sresponsibilitystatementreadwithclause loon Note 22:The company hasapproached the secured lendersforresettlementand pavment

ofRs'2,05,70,000/.wasmadeinearl|eryearstothesesecuted|enderstowardsthenegotiatedsett|ementwhichstandrevokedasondale'onfU||ysett|ingtheduesofih€5e.,,"arena"rsa,pertr'"sett|ement,thecompanywil|beab|etocomeoutofthenegativenetworthandakoreviveitsoperations fuly.The company hasatso oiverified inthe field ofMushroom growing in artificiallv controlledtemperature and is hopefulof revivalofits

operationsfullYPoint No. 9 to the Annexu re to the Auditor's Report:

ri" "olnp""v

r,". a"i*r,"d in deposiringthe d;es with the provident Fund Authortties due to the adverse financial conditlon but it has spproacneo

the provident Fund authorities to work outthe plans sothat the payments.an be made to them in inrtallments' lt has akeady started maklne the

paymentto clearthe Provldent Fund dues ThecompanYishop€fultocleartheentireduesinihenearruture

(91

Tarai Foods Limited

The company has outstdnding dues of around Rs. 8.18 lacs towards the sales tax liabilities (exclud'ng those with have been appealed against), out ofwhich sales tax demand of Rs.7.30lacs has been raised on account of late issue of Form F bythe VATAuthorities at the branch. The €ompany has tak€nupthe stepsto approachthe relevantAuthorities (includingfilingofappeal)forcancellation ofthis demand. Rest ofthe SalesTaxdemand ofRs- 3.26lacshas not been paid dueto adverse liquidity position.Thecompany is hopefultoclearthedues soon.Otherpointsareself explanatoryasgiven invariousclauseson Note22.COSTAUOITORS:

The Board of Dkectors of the company has appointed M/s. N€erajSharma & co., Cost Accountants having FRN 100465 in place of M/s. VK. Dubey &Company, Cost Accountants, as the CostAuditorfor conducting the Cost Audit ofthe Companyforthe financialyear 2014 15. The Audjt Committ€e ofthe company have recommended fortheir appointment in a€cordance with Cost Audit Rules 2011and relevant notification issued bythe Ministry of

DIRECTORS:

The Board ofDirectors ofthe Company is duiyconstituted. Duringthe y€ar under review Mr Hakam Singh was appointed as a n Additiona I Director of theCompanywe.l 13'" Ja nuary, 2014 a nd is proposedto be regularized in the ensuingAnnualGeneralMeetinB ofthe Company.Ms. Kiran Sandhu,who has been appointed as DirectoroftheCompanyretires by rotation and beingeligible, offels he|selfforthe re-appointment.Mf. R.P Singh was appointed as a whole time director ofthe Company effective from 1".JulV 2013 in the boafd meeting held on 25'" June,2013. Furtherhewas alsoappointed asthe Chi€fFinancialOfficer(CFO)oftheCompanyinthe board meetinghe d on 3O'" May,2014.FIXEDDEPOSITS:

The Companyhas notaccepted anyfixed deposits in termsofSection 58AoftheCompaniesAct,1956.EUYBACKO'SHARE5:The Companyhas notmade any offerofBuySackofitssharesduringthe period under review.EMPLOYEES:

There are no employees whose particulars have to be submitted in accordancewith provisions ofsection 217(2A)ofthe Companies Act,1956 read withthe Companies (ParticLrlarsof Employeet Rules, 1975.CAPITAISTRUCTURE & STOCK EXCHANGE TISTING:

As on 31" March,2014 the Company hasthe Authorised Share Capitalof Rs. 335,000,000/- and the paid up share capitalof Rs. 143,381,200/-The sharesofyourcornpany are presently listed atThe BombayStock Exchange, PhironzeleejeebhoyTowers, DalalStreet, Mumbai-400001.The Company has paidthe up-to-date listingfeetothe BombayStockErchange.CONSERVATION OF ENERGYTECHNOLOGYABSORPTION &FOREIGN EXCHANGE EARNINGS &OUTGO:The detaik ofconseNation of energy, technology absorption &foreign exchange earnlng & outgo ofthe Company were giver as perAnnexure 1to rn15

CAsH FLOWANALYSIS:

In compliance with the provisionsofclause 32oft he Listingagreement,the cash FlowStatementfortheyearended 31" Mafch,2o14isannexed hereto.CORPORATEGOVERNANCE:

AComprehensive reporton Corporate Governanceasstipulated underClause49ofthe ListingAgreement isattachedtothis report.YourCompany has obtained a certificatefrom the StatutoryAuditor regardingthe compliance ofconditions ofcorpor.te Governan€e as stipulated iiClause49 ofthe ListingAgfeemeniandthe same is annexed.DIRECTORS' RESPONSISILITYSTATEMENT UNDER SEC. 217I2AA):Yo'rr Directors herebystate that:1. In the preparation of the annual accounts, the dpplicable accountins standards had been followed along with proper explanation felating to

matefialdeDartures:2. Such accou nting policjes h a d been selected and appli€d consistently a n d l u dgments a nd estimates are reasonable and prudent so as to give a true

and fairviewofthe profitor lossofthe Companyatthe end ofthe financialyearand ofthe profitorlossofthe companyforthethat period;3. Prope I and s ufficie nt ca re had been ta ke n for th e maintena nce of adeq uate accounting reco rds in accorda n€e with the p.ovkions of Compa n ies

Act,l956forsafeguardingthe assetsofthe companyand for preventingand detectinBfraud andotherirregularities.4. Theannualaccounts had been prepared on a goingconcern basis.APPRECIATION:

We wish to convey ouf sincere ihanks to the Shareholders and various agencies ofthe Centra I Government, State Governments, Financial Institutions,company s Banker and Business Associates fortheir continued cooperation extended to the company. We also wish to record our deep appreciation ofthecontribution made bytheemployees atall levels.

For and on behalf of the Board ot Directors

sd/- sdl-Place: Rudrapur Dr R.P. Singh (Executive) whole Time Director vilay Jolly (Director)Oatet l4l0alz0L4 DIN:03615102 OIN:00O80354

Add: l/3/3 Phoolbarh, Pant Nagar, Add:180, DayanandUdham Singh Nagar, 263145, Uttara khend. Vihar, New Delhi, 110092

(101

Tarai Foods Limited

Annexure-1

Conservation of Energy: FORM A

A. Power and Fu€l Consumption:

1. Eledricity

31" Ma..h,2014 31"March,2013

1062551 I3r9550

s485156 630674r

5.15 4.ia

(i)lhroush diesel sen€rator

81000 45,OOO

Units per ltr ofDieselOil 3 3.75

18.04 13.40

consulnption per unit of Production:

Electricity (rJnits) per

FORMBResearch and DeveloPment (R & D):

In the absence ofworking capita I facility from Banks, the companydoes not have ad€qoatefundsto engage itselfin Research and Development in rhe

Technology absorption, adaptation and innovation:

validation ofa formulationforcompost preparationwascarried outin theyear2014 Form u lation chosen for the com posting consisted ofwheat straw

,chi€kenmanUre(80%),Gypsum{9.5%),Urea(1%)andcottonseedcak€(2%)'Va|idatedrecentformu|ationgavesignificant|yhigheryieLdcomparingearrieriormuiation.The presentformutation iscomparativelycost effectivealso. appli.ation ofvalidatedformulation is presentlygorng on'

Thecomoanvhasnotimportedanytechno|ogyinthe|astfewyearsandhenc€matterspertainingtoth€technoloryabsorption,adaptationandinnovation are notapplicabl€tothecompanvTheimportedtechnologycurrent|yusedisquteold,around15'19yearso|dforwhichthe€ompanyhasretainedkeytechnica|staffWhohavebeentrained bv earlier technica I collaborato r a nd have adapted thete€hnologywell'

Foreign Exchenge Earnings & outgoDuringtheyear underreviewthe companY hasneitherearned anvforeiSn exchange nor used anyforeign exchange

sdl-viiayJolly(DirectorlDIN:00080354Add:180, DaYanand

vihar, New Delhi, 110092

REPORT ON CORPORATE GOVERNANCE:

1. BRIEF STATEMENT ON COMPANY'S ?HILOSOPHY ON CODE OF GOVERNANCE:

your company strives to imbibe tairness, rransparenct accountability and responsibilitY through the adoption of the practice of corporute

Governance.The cornpany hastaken adequate st;pstoensure thatthe conditions of corporate governance as stipulated in clause 49 of the Listing

Agreementof the Stock Exchangesare complied with.

The companv has rne fo|owing commrnees viz. Audit committee, Remuneration and Recruitment committee and lnvestors'/shareholders

GrievancesCommittee to ensurethe effective imPlementation ofClause49ofthe Listingagreement'

2. BOARD OF DIRECTORS:

a) Comoosition and Catesorv of Directo6:

TheBoardofdirector9ofthecompanyconsistsof5directorswhosecategory,attendanceinBoardmeetingsandin|astAGMi5asfo||ows:

(111

Date: 14108/2014

Forand on b€halfofthe Boa rd of oirectors

sd/-Dr. R,P. Singh (Executive) whole Time Director

OIN:03515102Add: l/3/3 Phoolbagh, Pant Natar,

Udham Singh Natar, 25314S, Uttarakhand.

Tarai Foods Limited

PDlND' €DlNED/ID*

Held

1. Mr. GurpreetSinsh Sandhu

Z. vrs. KranSandhu

PD&Managing

ED 6 Director in Tarai Farmlands Pu. Ltd.,

'Tarai Asro Industries Ltd.,Suraiya Expons Pvt,ltd,

NIL

PD NED 6 5 Director in Tarai Farmlands Pvt. Ltd.,*Tarai Agro Industries Ltd.,Suraiya Exports Pvt. Ltd.

NIL

3. Mr. Vljay NPD NED/ID 6 5 Director in Obex India Pvt. Ltd,

'Sensei Car Setuices Limited,TVJ Steels Pvt. Ltd._default status

NIL

silsh .

5 ngh

5.

NPD ''ED 6 6 NIL NIL

NPO NED/]D 6 5 NIL N1L

cafewai

6. **'Mr. HakamSingh S.lni

NPD NED/ID N,A 6 t N]L NIL

. P D - Promote r Dlrector; N PD - N on P fomoter Director; E D - Executive Director;

. NED Non-ExecutlveDirector;lD-lndependentDirector

. CFOChlefFinancialOffic€r* Pursuanttosub section (5)ofSection 560ofthe CompaniesAct.1956, thatthe nameofCompanyhas been struckoffthe

Resister and the Company isdisso ved.**Mr. Melvinder Singh Garewal was appointed as an Independent Director & Additional Director ln the Eoard Meeting he d on 13/03/2013 and his

appolntmentwas ratifled bythe members inthe Annua GeneralMeetlngheldon30'"september,2013.**+ Mr. Hakam Singh Sainiwas appointed as an additionaldirectorofthe Companyw.e.fl3'"lan!ary,2014.a) Details of Boa rd Meetinss held durinq th€ v€a r :

DuringtheyearunderrevieW 5 {5ix)8oard meetings were held andthe dates ofthe board meetings and attendance atthe board meetings were

Date of Eoard Meetins Board 5trensth No. of Di.ectors Present30/0s/201.3 5 5

2s/06/2013 5 5

M/Oa/2073 5 4

26/0a/2013 5 3

1417r/2013 5 5

14/02/2014 6 6

3.

a)

AUDITCOMMITTEE:D!r ngthef nanc alyear2013-2014, the MembersoftheAudit Committee met 5 {Five)tlmes.The dates ofth€ meetings241 a6 / 2ot3, n / a8 / 20:1, 13 / 11 / 2oB and 12/02/ 2074.Composilion of Committee and attendanceof members I

wete 29/05/2013,

sl. No. NAME OF DIRECTOR POStTtON CATEGORY NO. OF MEETINGS ATTENDANCE

1. NED/ID 5 5

2 NED 5

3 NED/ID 5 5

*rMr. Hakam Singh 5aini NED/IO

*Mr Vijaylolly havingthe requisit€ qualification as required underClause 49 (ll)ofthe ListingAgreementisthe Chairman oftheAudit Committee.*" Mr. M.5. Garewalwas inducted as a member in the AudltCommittee in the Bo:rd Meeting held on 25'"lune,2013.*'*Mr Hakam Singh was ind!cted as a member in theAuditCommittee inthe Board lvleeting held on 14"February 2014

a) rerms ofreference:. To review the performance of Statutofy Auditors and recommend their appointment and remuneration to the Board, considering the r

indeoe nd e nce a nd effectivene5s:

(12)

Tarai Foods Limited

. To feview of interna I controls, d elegation of a uthoritv lim its;

. To act as an interface between the management a nd the statutory and internal a u d ito rs ove rseeing the internal audlt ftr nctions;

. To ove rsee the com oa nv,s financia I statem€nts, including an n ua I a nd q u a rterly financia I results, and fin d ncial accou nting practices & policies;

. To review alt internat systems, review the company's financial and risk management policies, audit and control procedures of the company

inctuding but not timited to apporntment of statutory/internal auditors from time to time and also to review the annual accounts, quarterlY

u na ud ited finan€ial resu lts and limited review report beforetheY are put upto Bo3rd fof its approval"'

4. REMUNERATION&RECRUITMENTCOMMITTEE:Duringthefinancialyear20l3-14 Members ofthe Remuneration & Recruitment commitlee met4 (Four)tim€s.The dates ofthe meetings were

29 / 05 | 2A B, 24 / 06 / 2013, r! OAI 201 3 and t I l l 1 / 2ot 3

a) Composition of Committe€ and attendance of members:

st. No. iIAME OF OIRECTOR POStTtON CATEGORY NO. OF MEETINGS ATTENDANCE

1, Chairman NED/ID 4

2, Mrs, Kiran Sandhu NED 4 3

3. **Mt M.S. Garewal Membef NTD/ID 4

'*Mr Hakam Singh NED/ID

*Mr.VijayJollywasappointedasthechaifmanoftheRemuneration&RecruitmentCommitteeintheBoardMeetingheldon25'1une,2013** Mr. N4.S. carewalwas inducted as a memberintheAuditcommiftee in the Board Meeting held on 25'"June,2013.

*,.Mr' Hakam Singh was inducted as a memberjnlheAuditcommittee in the Board Meeting held on 14'" Februarv 2014'

.Tooverseethemethod,criteriaandquantumofcompensationfolExecutiVeandNon'Exec!tiveDirectorsj

. To review the recru itment of key m a nage m e nt em ployees a nd the ir com pensatloni

. Fo rm u lation of initiatives leading to great€r tfa n spa rencv a nd im proved corpo rate governa n ce'

b) Remu neration PolicY:

Mr R.p. Singh was appojnted as a whole tirne director effective frorn 1" July, 2013 in the Board Meeting held on 25'" lune, 2013 However, no

remuneration k being paidto him duringtheyear under review.

5. TNVESTORS'/SHAREHOI.DERS'GRIEVANCESCOMM|rTEE

During the financiat year 2013-2014, Members of the Investors'/Shareholders' Gri€vance committee met 4 (Four) times The dates or the

meetinCs were 29l05/2013, 24/ 06/ 201.3, B / A8/ 20\3 and 73 | 1U2O13

al Comoosltion ot Committee and attenda nce of members :

st. No. NAME OF DIR€CTOR POStTtON CATEGORY NO. OF MEETINGS ATTENDANCE

1. chairman NED/ID 4 4

2. Mrs. Kiran Sandhu NED 4 3

3. i*Mr M.S. Garewai Member NED/ID 4

4. **Mr Hakam singh Member NED/ID

* Mr Vijaylo ywas appoinr€d asthe chairman ofthe Remuneration & Recruitment cornmittee ln the Board Meeting held on 25'"lune,2013'

** lvtr M.s. Garewatwas inducted as a member inthe Auditcommittee inthe Board Meetlng held on 25'"1une,2013

+,'Mr Hakamsinch sainiwas inducted as a member intheAuditCommitteeinthe Board Meeting held on 14. February,2014.

b) Mr. G.5. Sandhu, Managing Director, isthecompliance Officerofthe Companv

vl -No.of Investors'ComplaintsteceivedbYtheCompanYr 3

No, ofcomplaints not solved/pending: NIL

6, GENERAL MEETINGS:

. Location and time, where last three AGMS were held :

e";k'r;;" I rv zoro-1r -!v

zorifg!?-J 1?9=]!:-:--oate a rtme-fiiii-676t I sepremoe' 2e 2012

l\eptember30 2013

r*;; ltii*-**"'#i#"-wl..,]xff''';,:l'tI r.t"t". r'r.* o"tt'i Estate, Naw Delhi I r'r:te, t'le* oett"'

I rro o:o I Io o)o I r 10 o2o

. whether any seecial resolutions passed in the previous 3 AG Ms:

N o special reso lution was passed inth€ previous 3 AGMs

.WhetheranysPecialresolutionpassedinlastyearthroughpostatballot,detailsolvotingpattern:No.

. Person who cond ucted the postal ballot exercise:

. Whether sFecial resolutions w€re propos€d to be conducted through posta I ballot:

. Pro.edure for postal ballot:N.A.

t13t

Tarai Foods Limited

7. DTSCLOSURES:

. Disclosures on materially sitnificint related party transactions i.e. tdnsactions of the Company of matetial nature, with its promoters,

Directors or the management, their subsidiaries or relativ€ that may hav€ potential conflict with the interens ofthe Company at large:

The companydoes nothave any materiallysignificantrelated partytransactions,which m3yhave potentis I conflict with itsinterestatlarg€.

. Detaits of non-compliance by the Companv, penalties, strictures imposed on the Company by Stock Exchanges or SEBI or any Statutory

Authority, on any matter relat€d to ca pital markets, du.ingthe lastthr€eyears:N.A.

. Whistler Blower policY and affirmation that no pe6onnel has been denied acc€ts to lh€ audit com.nittee:

. Deta ils of compliance of mandatory requircments and adoption of the non_mandatory requirements:

The company has complied with the mandatory requirements of the Listing Agreement. Th€ company has adopted the non-mandatorv

requirementsof the Remunetation Commiftee

8. MEANSOFCOMMUNICATION:The eua rte rly U na ud ited Fina ncial Resu lts a re genera lly published by the Com pany in The f inancia I Exp ress (English & Hind i), The Pioneer (Entlish

and Hindi), Naya India (Hindi) & Haribhomi (Hindi). The Company maintains a web-site www-taraifoods.com. Duri.8 the year under review, the

Company has neither released a ny official news release nor has made a ny presentation to the lnstitutiona I lnvestors or to the Ana lYsts

9. SHAREHOLDERS'INFORMATION:

a) AnnualGeneralMeeting:DateandTime:29'"September,2014at09.30AM. Venuer Elcin a House,422, Okhla Ind ustrial Estate, Phase-lll, New Delh i-110020

b) FinancialYear:Thefinancialyearof thecompanyisfromApriltoMarchc) Book Ctosure: The Register of M€ m bers a n d share T|ansfer Books of the Co mpany will remain closed from 27" Septem ber, 2014 to 29'Septe mbe r,

2014 (both days inclusive).

d) Dividend p:yment date :

N, A.

e) Stock Exchange Listing:The shares of your Com pany a re listed at The Bombay Stock Excha nge, Phironze l eej€e bhoY Towers, Dala l Street, Mum ba i 400001 The Company

has pa id th e up to-date listing fee to the Bom bay stock Excha nge

f) StockCode:TheStockEx€hange, N4umbai- 519285g) Ma rket price Data H igh/ Low during each month in last financial year:

At a5E (BombayStock Exchange)

h) Performance in comDa rison to broad-based indices such as s5E Sensex, CRlSlt index etc.:

Since the shares ofthe Company are thinlytraded, the comparison ofthe performance ofthe shares ofthe Companywith indice5 such as BS€

Registrarand Transf erAgents:Beetal Financial & computerseruices P\t. Limited,99,3" Fioor, Madangir, Behind LocalShoppine Center, NewDelhi'110062

sha re Tra nsfer svstem:A the s hare rra n sf€r synem of the company is being controlled by Beeta I Fina ncial & Com p ute r Se rvices P\t. Lim ited, su bject to the approva I ot

Disrribution of Sha r€holding as on 31.03,2014:

ls.

-c"tusory

No.

ofShares % of Holding

A. Promoters'Holdrng:; ;,;;;;;; -- -

lndian Promoters 19,26,a62 10.87

Foreisn PI9!q!9! 63,28,100 lJs.zo2. Persons Actins ln Concert NIL NIL?. ?ersons Actitslqlglqert M, '' l_- _ Ij.El9l | 82'14p52 | 46 s7

I14l

I

Sr. Shares No. ofsha.€holders

No. of shares % to the totalsnares

2. 5,001ro 10,000 653

270

1,O2

36

I 5,63.5784,2!,782

12.74T---- 3l? --l----rr?-3. 10,001 ro

I zo.ooor--l r o,ool r"

30,0005. 30,001 To

40,000

6. 40,001 To

2,5a,700

tzi,gqe

1.46

o.n

65 3,10,179 1.15

63 4,67,064 2.53

Above i

,'li - 16,242

1,34,23,643

1,,77 ,2A,120 100

Dematerialiation of Shar€s & Ltquidity:Ason I1" March' 2014' 1'15'29,359 equitvshares, represe nting 65.03% ofrota I Equaty capitar is herd in dematform w*hthe NsDL&cDsL.Noutstandins

GDRs/ADRs/warrantsor any converribr. in",,i,""", "."uJ,"i-.iLi^!i,r"ir,i.o". on *r,,r,

Plantlocltion:Village: Fazilpur-Mehrota, RudrapurDjst.: udham singh Nagar, uttrakhand.AddressforCorrespondence:1.3, Hanuman Road, Connaughtpta€e, NewDelhi 11oOO1

m)

n)

o)

Pla.e:RudrapurDetet l4loa/2oL4

Forandon behalfofthe Board of Directors

sd/-Dr. R.P. Slngh (tu€curive) Whote Time Dh€ctorDIN:03615102Add: l/3/3 phootbagh, panr Nagar,Udham Singh atar, 263145, Uttarakhand.

sd/-Vii.y ro y (Dircctor)DIN:00080354Add:180, Dayanandvihar, itew Delhi, 110fft2

{1s)

AUDITORS' CERTIFICATE

To the members oI Tarai Fgods LimitedWe have €xamined the compliance ofconditions ofCorporate covernance byTaraiFoods Limited fortheyearended 31st March 2014 asstipulated in

Clause49 ofthe Listed Agreement ofthe said company$th theStockExchange.

Th€ complianc€ ofconditions of corporate Governance is the responsibility of the management. Ou r examinations' wa s limited to procedures and

implementation thereof, adopted bythe Companyfor ensuring the compliance ofthe conditions ofthe Corporate Governance. lt is neither an audit

noran expression ofopinion on the fina ncia I statements of the compa ny.

In ouropinion and to th€ best of our information and according to the explanations given to us, we certifythatth€ company has complied with the

conditionsofCorporateGovernanceasstipulated in theabove mentioned Listed A6reement.

We state that no investorgrievances is pending for a period exceeding one month againstthe company as perthe record maintained bythe company

whach are presented to investors' G rievances Comm ittee.

we further state that such compliance is neither an assurance as to the future viability ofthe company northe efficiency or effectiveness with which

the management has condu€ted the affailsofthe company.

For RATTAN ANIL & CO.

Chartered Accountants

Place:Rudrapur

Date:3o os-2014 Sdl-Rattan Sansal

Partner

Membe15hio No..083929Firm Resn. No.:009414N

Tarai Foods limited

CEO/ CFO certificationWe, Mr G. S. Sandhu, Managing Dire€tor (DlNi 00053527)and Mr. R.C Singh, Whole Time Dkector (DlN:03615102)& CFO ofTarai Foods Limited

havingregistered offi€e 6, Hanuman Road, Connaught Place, New De lhishall certify to the Eoard tothe bestofour knowledge & beliefthat:

a. We have reviewed the financial statements and the cash flow statement for the yearended3l"Mar€h,2014andthattothebestofourknowledse and belief:i. these statementsdo notcontain any materiallyuntrue statementoromitany materialfactorcontain statementsthat might be misl€ading;

ii, these statements together present a true and fair view ofthe company's affairs and are in compliance with exhting acco!nting standards,

applicable lawsand regulations.

b. To the best of our knowled8e and belief, no transactions entered anto by the company du.iflg the y€ar are fraudulent, ilegalor violative ofthe

comoanv'scode of conduct.

c. The com pa ny! oth e r ce.tifying office rs a nd we are responsible for esta blishing and maintain ing interna I controls for fina ncial re porting a nd we

have evaluated the eff€ctiveness of internalcontrol systems ofthe company pertaining to financial reporting and we have disclosed to the

audito|s and the Audit Committee, deficiencies in the design or op€ration ofsuch interna I controls, if any, ofwhich we are awafe and the steps

we havetaken or proposetotaketo rectifythese deficiencies,

d. We have ind icated to the auditots a nd the Aud it comm ittee:

i. sisn ifica nt cha nses in interna I control over financial reportinE d u ring the yea'ii. significant€hanEes in accounting policies duringtheyearandthatthesame have been disclosed inth€ notes to the fina ncial statements; and

iii. instances of significant fraud ofwhich we hav€ become aware and the involvement therein, if anv ofthe manar€m€nt or an employe€

havinB a significant role inthe company's intern a I control system over financia I reporting.

Oate : 14' August, 2014

Place: Rudrapur

sd/-GURPRII S. SANOHU

MANAGING DIRECTOR

Dll,l:000s3s27

sdl-RAMPYARE SINGH

CHIEF FINANCIAL OFFICER & WHOTE TIME

EXECUTIVE DIRECTOR

DIN:03615102

{16 )

Independent Auditor's ReponTo th€ Members of TARAT FoOOs t-tMtTED

we have audited the accom pa nying fina ncial statements of raRArFooDs LrMrrED ("th€ companyo)which comprrsethe balance sheetasat3l March2014' the statementorprofit and loss andthe cashftow state me nr for the y;a r t;;;;;;;; . ,r,nn'r,y of sign ifica nt accountinS poricies ano orherexplanatoryinformatiohwhichwehavesigned Lrnderreferencetothisrep;rt.Manatement,i R€sponstbilityiorthe Ftnanctar StatementsThe company's management is fesponsible for the preparation ofthese financiat statements that give a true and tair view of the financiat posrl,on,iinancial performance and cash flows oftho companr r" ""."ra-"" **l,r'" n"i"r"i'"t'i* o" ro,

'."t"rr"d to in sub-section (3c)of section 211orth€ companies Act, 19sE (,the Acf,) read withthe Generatcircutar 1(/2013;ai"Ji: i"i"rt., ZOr:

"fthe Ministryofcorporate Affairs in respectofSection 133 ofthe companies Act, 2013. This r€spoosibitity.inctudes the desit",lro-rJr*"r",,""

""0 ,naintenance of internat control retevant tontation ofthe fin a ncial state ments that give a true anJ r"irui"* uno ar" tre" rrom m ateria I misstateme nL whether du€ to

Audttor's Responsib itvour responsibility isto expressan opinion on these financialstatements based onouraudit. we conducted ouraudit in accordance with the standafdsonAudlting a nd oth er applicable a utho ritative pronou nce me nts issued bythe Institute of cha rtered Acco unta nts of India. Those standards require;lJ;il"#:fiitl,"Jifirrequirementsand

pran and perrorm the audit t; obt"r.;;;,;;; ",,,,."".. "boutwhetherthe

rinanciarstatements areaf a!dit invoives performing procedures to obtatn audit evidence about the amounts and dieer€cteddependontheauaiiorsluagment.incruorngtheassessmentortherisr;;i;;T:!..]ffi,1:J|i,ili11""..,:i:ilil:"lni,"Ti:l:!o rraLr0 orerror' In makinsthose rjsk assessments, the auditor considers interna I co ntror re reva nt to the company! preparation and fair presentationof th€ financiat statements in order to design a!dit procedures that afe appropri"* in,f,".,iopinionontheeffectivenessortneentitvsi'nternarcontror.nnauaitarsoinjua;;";:i;,;;;;:';'Jffi;"T::lt:i.lliilX;;""j:JiJ:'"il:;:reasona b le ness of the accou ntins estimates ma d€ byma mgem ent, a s weI as ev" rujn, ,i"'.""r. rr pr".""ratjon of the fin a n cia I statements.y:ib.;5t"r'j,i;:h'"',i',Hidence we haveobtained issurricientand appropriate,ol.o'uia"

" i",i.r.'.ou'."rai,"pi"i"".

1. ClaJse.l2 on \tote 2? regarding oamage torheco,d (ro-e bujrding.2...caLrse9onNote22regardinginterestonTermLoanandworkin;capitaldefaultnotprovidedforOplnionln our oplnion and to the b€st ofour informarion and according to the explanations Siven to us, er.eptto tthe elk.ts o! the natter desc bedintheBoslslor Quoltied opinion Parcgrcph 'the financiat statements give the information;€quired bytheAct inthe mannerso fequifed andgive atrue andfarrv,ew In conform'tywith the accountrng principtesgenera yaccepted in hdia:

jll l::l::::::l$ r."tance sheet. ofrhestate ofaffairsofthe companyasat3l March 2014;(1, rn rne case or rhe statement ofprofjt and loss, ofthe lossesfortheyearended onthatdate;and(iii) inthecaseofthecashflowstatement,ofthe carf, no*rtor,t ",u"r"na"a

on,t "ia",".EmphaslsotMatter

We drawattention to-l clause 10 on Note 22 ofthe Financialstatement with regard to continued losses and negative net worth. consjdering continued loss€s, andnegative net wo'th of the companv the con€ept of going concern mav be in a"rli, ,ir

"iiil,, . ""*,nue as going concern depends upon the

;::ffilH1ffi::il:"T,1ffi::i","":"1j,:ii"*"""ditorsandrestructur;nsorop.'."iion.-ov"o*iaoinsappropriatebusinessstrategiesandth e tana ncial sta tements of the com Da nv

es,accountshavebeenpreparedongoingcon€ernbarsandweareunabletoas€ertain,tsimpacton

Ouropinion is notqualjfied in res;ectofthe above matter.Reporton Other Legatand Retulatory Requirements1 As required bv the companies {Auditor's Reportl.order,20o3 ("the order"), as amended, issued bythe centra I covernm e nt oflndia in terrns otsub-section (4A)ofsection 227 ofthe Act, and on rhe basrs otsuch checks ofthe books and recoiacco'dinstoth; nrormati;;

",;]";;;;;s"""tous,wesive ntheAnnex,;.",;";";;'"'"J#:::J|,lff:f;:'.""r',:ff:::lj?:1ii:2. As required bysection 227(3)oftheAct, we reDortthat:a wehaveobtanedalltheinformationandexpl;nationswhichtorhebestofo,rknowredteandberiefwerenecessaryforthepu.poseofourauorrj

: i,.Hj:#ifJ:i:l;;"jil1ffi?#::::T,^.l, awhavebeenkeptbythei"'"o'"i,*,,,*,**^r,.o',*,",".inu,iono,to."!oo",;

Inouropinon,theBarance*.",.,",".""-,""','#ffi:i:?jl*:",.T|i11;:*:il":',ff[**,il:;:i::"",H;:,:Hiffi;lf]*:;l

ffiifllii:fffi|;:.*:1!*'Tl::ffi:fi:i::5readwiththeGenerarci"'r"'ii)'o'lJ"*'.'eptemoerzor!ortrervini;,;;;.;;,",.b on the basisofwriftef representations received from the directors as on 3r March 2014, andtaken on record bythe Board ofDirecto6, noneotthe directors is disqua lfied as on 31 March 2014, from being appointed as a dit".i", i" i.rr*,r o** 1g) of sub-sectjon (1) of section 274 of trreCompanies Act, 195 6.

Sdt-

Report on the Financiat Statements

For RATTAN ANtL & CO.charrered Accountant5 {l rrm Re81. No.:009414r.,Rattan Bansal

Pla€e:Rudfapur / Date r3O'" May2014

Tarai Foods timited

ANNEXURE TO THE AUDITORS' REPORT

{Referred to in Paragraph (1) oi our Report of siven date ofTami Foods Limited for the period ended 31st March' 2014)

1'a)IhecompanYhasmaintaInedproperrecordsshowingfulIPar,ticuIarsincIudingqUantitativedetaiIsandsituationoffixedassets'b)Thefixedassetshavebeenphysical|yverifiedbytheuanagementauringtheyearinaphasedperiodicaImanner,whichinouropinidnis

reasonab|e,havingregardtotheslzeofthecompanyandnatureofitsassets'Nomaterialdiscrepanc]eswerenoticedonsuchphysicaIverification-

c) In out opinion,the companvhas notdisposed of su bstantia I part of fixed assets duringthe year'

Z. ai As exprainea to us, inventories h ave been phvsica llY verifled bv the Management at regu la I interva ls d u fins the vea r'

b) In ouropinion and accordingtothe intormation and exptanationsgiven ro Lrs, rhe proceduresofphysicalverification ofinventoriesfollowed bv

'rtnunrg"."nt"r"r.a.onableandadequateinrelationtothesizeofthecompanyandthPnatureofitsb'rsiness-

c) The company has maintained properrecords ofinv€ntories.There were no materia I discrepancies noticed on physical ve rification ofinventorv

as comParedtothe bookrecords

3'a)ThecompanyhasnotgrantedanY|oans,securedorunsecured,tocompanies,firmsorotherpartiescoveredinthereSistermaintainedU/s301ofthe Act- consequentlv, paragraphsa iii(b), iii(c)and iii(d) ofthesaidorderarenotapplicable

b) The company. has tar"n inter"rt tr"" unr".riel toans from the Managing Director in earlier vears and a company cove.ed in the register

maintained u/s301of theActin thecurrentvearaswellasinearlieryears

Sr. Name of lhe Party Loan taken lvlaxlmum

ttlo. during the Balance

Yeat during the

r.rr snilrzsoLacs

i 1 I l,lr. os. sananu

40 Lacsinterest free andrepayaDle ondemand

c)|nourooinjonandaccordingtotheinformationandexplanationsciventous,theloansa5deiaiIedaboveareinterestfreeandtheoihertermsand conditionsare not primafacie preiudicial toth€ interest of theCompanv

d) In respect ofloanstaken bythe companythe loan is interestfree andthe principalamountis repavable on demand

e)|nrespectof|oanstakenbylhecompany,thesearerepayab|eondemandwhichisnotdemandedasonthedateofsigningofthisreportandthusls noioverdue

4.InouropinionandaccordingtotheinformationandexpIanationsgiVentoUs,thereareadequateinternalcontroIprocedurescommensuralewItnthesizeofthecompanyandthenatureotitsbusinessforthepurchaseofinventory,fixedassetsanda|soforthesaleofgoodsandservices,Duringthe courseofour audit, we nave nor oDserveo any continuingfailureto correct majofweaknesses in internalcontfolsvstem

5. a) In our optnion and according to tne rntormation arid exptanations given to us, the transactions made in pursuance of contracts or

aftangements,thatneedea tot..ntereo into inttre'register maintained undersection 301ofthe compan ies Act, 1955 have been so entered'

b. In our opinion and according to the iniormationind exptanations given to us, there are no such transactions in pursuance of contracts or

arrangementsente|edinther€gIstermaintainedundefsection3olofthecompanie5Act,lg56aggregatingduIinstheYeartoRs'5,00,000/or more in tespect ofanypartY

6,ThecompanYhasnotacceptedanyoepos|tsfromthepub|icwithinthemeaningofsections58Aand58AAoftheActandthelu|esflamed

u. fn "r|,lpi"i"",,ft"

i"t"rnal a ud it svstem ofthe€ompanv iscommensurate with itssizeand nanrre ofits business'

8. we have broadty reviewea the soorG ornccounis riaintaineo uy *re company in respectofthe products where pursuanttothe rules made bYthe

centraIGovernmentoflndia,tn"ma,nt"nan.uof.o,trecordshavebeenprescribedundersection20g(1)(d)ofthecompaniegAct,l956andar€oftheopinionthat,primafacie,theprescribedaccountsandrecordshavebeenmadeandmaintained.wehavenot,however,madeadetai|edexamination ofsuch recordswith a viewtodetermine whetherthevareaccurate and comprete

9. lnrespectof statutorydues:a)Accordingtotherecordsotthecompany,intheyearUnderreviewundisputedstatutoryduesincludingIncometax,wea|thTax,ServiceTax,

custom Dury, Excise Dury, c"sr"no otnuritatrtorydues have beengenera y regutarlyd€positedwiththe appropriate authotities.

Undisputed statutory due, of p-"id*t r;; ;f c;rrent year r-rndeireview and of earlier years and sales tax of earlier vears have not been

d€posited and there have been serious delays in manycase;.. provident Fund amountingto Rs.18.53lacs (includinS of earlier y€ars) 'a

nd salestax

of earti€r yea|s amounting to Rs. 8.18 tacs has not ;een deposited with the Authorities after they have be€ome due. Howevet provision for

provident;und and $lesTaxLiabilityhav€ been made in BooksofAccountsinthe esrliervears

AccordingtotheInformationanoexptanatronsgiventous,exceptforprovidentf0ndandsaIe5Tax,noundisputedamountspayabIeinre5pectolrhe aforesaid dues in the,"", ,""", ,"",; ;";;;;ui,,"na'"e * u, ,*, v",ch, 2014 for a perrod of mor€ than six months from the date oi

be€oming Paya ble-

b) As at 31st March,2014 ac€ording to the records ofthe company, the following are the particulsrs of dlsputed dues on account of sales tax

lncomeTaxandexcisedutYmattersthathavenotbeendeposited:

Lacs interest free and

Appettate

10. The co mpany has accum u tated tosses which has eroded the netwo rth fully and has incurftbyourauditandhasnot i"""|'l."d.;;,;r;il;;;;;;'";i:;;::',i:::::lnasrncurredcashtossdurinsthecurr€ntrjnanciaryearcovered11 rno!ropinionandb","o;;;;;";;;"*":';"",j1"i"i::.Iru",:,1i:i*:ll""i,,J""lio""o,""",,.",iventous,weareortheopinionthatthecompanv has defaulted in repavment ofdues to fina*nri"",i*i.*

""Jir'" i""r. ii"'a"r,0"", r,". teen defaurtins to the institutjons rorfifteen years to the tune ofRs.465lacs towards principatamount ls per the toofs oia.. unpaidinteresttothesecuredrendersisapprox.Rs.40cforesason3l.03.2014. ccounts maintained bvthe company,the defaultof

'/ rnouroptnronandaccordingtotheinlormationandexptdnationgiventous,noioan(and

_ ^ basis of secu rity by w"v .r pr""ic;.i;i*"r,

"""enru res a nd other securjti€s.

advances have been sra nted by the com pa nv on the

" ff"Ttr;:lff:'""":i:J;l"TtiJJilf#i:"rt"""rr,i""Ju...'"iviiererore,€rause(riii)orparasraph4orthecompanies(Auditor,s14. Thecompany is notdeatingin ortradjng in securities, debentures and otherinvestments.1s. rhe company has notsiven suarantee;r toan.,"run o, o,r,",., r.o,n iu n r. ;;r;;";.;;l ,;.,,r,,,"",.16. ThecompanyhasnotrajsedanynewtermroansdunngtheyeanlT Accordingto the information and explanationsgiven L us and on an overaI examination orthe financia I stateme nts ofthe company, we are ofthe opinionthatnofundsraised onshortterm b3sis h*" l"* *"af"rl""r,"rrn f"""r,-.*," Hi:*::,i;l;filiill::.,J::lig;;"v p,"r**,ar "rr",."",.i:**;;;;";i::,". .""'panies cov€red in the Resister maintained19' Thercompany has not issued any debentures and hence question of creation ofsecurities or charge in respect of debentures issued does notZ0 Thecompanvha< nor raised any money bywayofpubtic rssue dLr,ng rheyer.1r rJ,rrnSlhe'ourseofourexaminanonof.ebooksandrecoro(ott;ecompany.carriedoutrndccordrn.pwirhrhao"^.."x-,

practices in {ndia and a€cora;"rJ,r"i"r".."." ""d

expranationssiven to us, *" h""" "",'l'^:'-11i11"

with the senerallv-ac€epted auditinscompanv noticedorrepo.ted lurinsthevear, norhavewe been inrormed orsu* -*,, *:l,T;:;;""::ss

anv instanc€ orrraud on o, bvthe

Date:30'" May2014

FoT RATTAN AI I- & CO.Chartered AccountantsFkm qegn. No.:009414Nsd/-Rattan Bansal

Membership No.:083929

119)

Tarai Foods Limited.

TARAIFOODSUMITED

AUOITED BALANCE SHCET AS AT 3IST MARCII' 2014

31-lvats14 31-Mar13

TQUITY AiID UAIILIT]ES

SHANIHOI'ERS' FUI{Ds

NON CUTRENT LIABITITIES

D€f etred Tax Liabllitv (Nel)

Other Loni Term Liabilities

CUiRENTUAAUNI5

other cudent Liabilities

aSsgTs

NOII CURNTI{T ASSETS

a.)FIXED ASSETS

Gpital Work_in Prosress

b.) Non Culient hvestmens

c.) Deleiied Tax A$ets {Net)

d.)Lonstem loais and advances

e.)oth€lnoi cuiienta$ets

CURRENTASSETS

{a) cLirertiiv€smens

(d) cash and ash equivaleits

{e) shon+rm loans and advances

(fl Orhercnent 65ets

Th€ sccompanying notes l to 22 are a' inteSralpartofihe Financia Statemenrs

Thlslsthe salance sheet refeiied

to in our.eport of even date

FOR &ON B€IIALI OFTHE 8OARD

HAKAM SINGTI SAINI

DIRECIOR

DINNo: 06786586

143,381,200 143,381,200ffi15,250,000 14,250,000

515 419

--'*r3t;""--^,@'"8

O0\1,79a,927 72'76'163

3,551,121 6,153,579

)^7 ea7 !73,226

15.993,036 -ry,i_u_r,-g45,5$,505 rr,w""',

35,120,451 4A'231L16

O01.ea6.u6 !,199119

o0

426,314,829

0

426,374,829

0

10

1I12

13

Membeiship No.083929

Firm Resn. No :009414N

Date r 30 0s 2014

EXECI]TIVE DIRECTOR & CFO

DIN No:03615102

{20)

Tarai Foods limited

AUDII'D PiOFN E IOSS ACCOUI{I SIATEMENI TOi IHF YEAR EI{DED 31SI MARCII, 2OIT

Ner Rdenu€ f roh oDeGtions

co( of Marerlak.on'uned

ctunRer i. i^venioie. ol t nkhed G@d3:nd n6.k in-TEd€

€mDlowe Benefi t Exo€n5es

D€preciation and Amontatron exp€ns.s

(ross)/ PRoFli IEFoRE EXCEPTlOtrAl All0 EXTRAORDI AnY

pioFfi/ lross) Batom ExrRAoiDlMRY ITEMS Ar'lD TAX

Erth ordinary rtems /prior vear exDensesPRoFrr/ llosrl sctoRE rA)(

pioFfi/ {ross) Foi INE ttRroD FROM COI{ ilulllc Ot€ARArrONs

PROf lTl (LOSSI FnOM Or9CONrrNlJlNG OPtARATION5

Tax Expen se s of Dis.o ntinuins ope6i onrP@fi/llosl rrom Dlxodlhurns otsr6noh! (an.r 16r)Pdnt / lto$l tor rh. Pe orlto$ broushtto ard rbn Previous ve.rross iialltFliEo To sAtaNcE sr|EEr

€.rnlnr P€r Sfi:e b€fot. tnt. orda.ary h.h3

.ahin. td sh.t..li.r Ent o.din,ryR.ms

16. *@mp.nvln. nci.s 1 to 22 .€ .n lnetal p.|t ol th. Fln.n.Ll SEt'n'nrs'

Ihb k the Ptofit &Lo$ A<ount,afered lo in our rcPon or ev€n date

66,2A1 40,110

r!E9e!!!___ gg!e-

4,321,310530oo'00

1,,047,727 l!,UJ,g64l

11.533.301 11,604,904

25,310,4,{{t 20,t24,7O1

15.72r,se6\ 13,430,3451

00(5,721,5961 {3,41o,34t'

fOR& ON SEHATF OFIHE BOARD

EXECUIIV: DIREC'OR & CFO

32,0m,000 EquitvShares ot Rs 10/ €ach

$O,om (bet vear 150,0001 Cunulaiive Conv€rtible

Prefereice Share OfRs.100/ each

ISsUEO, SUBSCIIAED, CALLED UP AI{D PAID UP

17,723,120 Eaultv5har€tof R5.l0each,iulLv6lledup(previous ydr 17723120 Equirv sharcs)

Bvdnedotsand ofiic€rs Rs. 1.03 .r' (PY Rs 103c6 )

- Bvothe6 Rs.2.164c6.{PY tu.2 364ds.)

1s,000,0m 15,00q000

335,000,000 331000,q

!n,2al,zao I7J,2A\2OO

13,900,000

r433a1.200 14J,t31,200

t27I

Tarai Foods Limited

IERM LOAITI FROM flS Ar{D BAiIrc:

nter.5t Ac.rued and Due

D.nh bhn.. rn !rcft & t6. A/..{s33,2r5,971) 1644,993,..91

15,721,5e5) 56,362,.13

{593,957,5571 (933,r3s,e71)

l5$,s,255) 1551,276,6601

c,lrsmt :lic.t:dedroEqul!shrrB:IhecomDanvh:!onlYoneclNolEquttvsharshavlnsrervalueofRr 10/ pd 3ha.e. €ach horder of Eq uiv sha'e is entitled

rneditd.nds, irsnd*hei dec red, E decl*ed and p. d in Ind an Rupees

ividend In rhe dent or tiquiddlon o

erdinnbuonortlprcturenrhlanouibardntheprcpodiontorhenumb€ror€quitvsha'e3

446334,A29 446,334,329

!e55: R€ Davm€nts u nd er n etotialed sttle ment 20070,0001 Term Loanr fromlinancial insiltutions ar€se.ur€d bv

mortsape of comFnvs immovable ptopedies, bolh p.esent & fuiure and hvpothecaiion bvkvofn6lch:.se onihe compan/s mdable a$ets (ex.ept bookdebb)inclldine movable ma.h nerv, ma'hiiervsparcs,

toos and acce$ones, pres.nt & future,and suaEnteed bvthe promote6 of the companv ar per the tens

Allth.se term loans are ow.dueforrepavmentThe* are fonher secured bvPersonalGuarante€ of Mr' G 5. sandhu (Dnector)and Mr. shooi

s lncludes unsecured loan fiom a cohpanv lGtedintheReeistd mainta ned u/5 30l ofthe ComDani€s Aci,1956

I{OTE 5: TOI{G TERM PROVISIONS

I n.fe. r'ro!. no. 21 {51 a6d 22{111)

PROV1SION FOR EMPLOYEE BENEFITS

. PrcvGLon for Gr:tuitv {u^lunded)' Pfovisionior Eained lery€5 (unflnded)

747,191 535,439

Tarai Foods Limited

fiort5:TRADFPAYASL€S

sundrycreditoG Du€ io othe6O,P oM( o. nalr"nd Med' 1 Fr?rp" "

NOI€ 7:OTHTR CURitIII LIAEILITIES

Advan.es rrom cunomeu

{Retd |rd€ no, 21{6) .nd 22 (llllcudenr Pofrio^ of LonsTerm Emplovee 3€^eiits:

ProvEion tor Gr:tunv ITJNFUNoED). Prov soi for EarnedLeaves(uNruNDEDj

13,\93p21 12,376,\63

00t3,791,922 12,376,163

3r,99 21,397

2!t2q ,_______-JJ:E-

(t ts oftnrndhr for a @.lod d€r 3lx honths :

!i!e.urad but .onsideGd sood!ise(ured and con!dered doubtlur

rrri :rc!eonlordoubtlurdebts

3,629,149 4,431,03e

(23 )

2,.!r,7qq

0

--ffi

A.l loai and Ad€nc€s to R€lat€d Parti€s

B.) Loan and Advanc$ to oth€re: (UBaured and 'onsrdeted

Good)

tofa Pe od der S Monlhs

Advan@3 r€coverable in .ash or in kind

or ior value to be r.eLveo- unrecured but @nsldered cood

- uns.cured and.onddeEd doubdul

wirh statutorv Authorities: uns€cured and @nsldered .ood

- 3a anc. with In.omeT.xAuihorni.s- Salan@ wirh sales Tax Aulhoritv- B.lrnce wlth 'cu3tod DUV and Excise DUW

Le$ Prdlslon for dolbiful Advances

, Inludes Advanc€' ro SundryCredlloE

{ad6nce lnclude amountdue lrom D recrd's/ offie6.flheconDanv Rs. Nll/-Pfevlour Y€ar Rs Nrr)

(M,rlmum.dwnce duedurimtheYearRs 0 ract/_

Prevlous Year Rs.0.03 lact

oth€r op€ran.s R.venu.3

Le$r Ex se ouw/seNice tar

-'-- 4,atI.,ria -- 42fitL6

19,067,010 L6'161,525

300,00045.107

19,532,643

-rg,slz,tlr

ts,goz,o:z

cor,riurvprror or mw wrttanl,

195150

911205

Misc.{spawn, Gvpsum,cot pith,chenicah,coton rcl3€tc'

233

13s

Tarai Foods Limited.

SaLan.esWith Banks In cuiieniAc@unG

Fixed D€tositwith Bank,

{FixedDepositwkhsanknc|udesdeDosiro'fu.NlLlP.evioustealRs'NLlwthmatunrvolmolethan12months'

oM3: SiIORI TEnM LOAxt A D ADVAME

124\

lM€aF/(Decrea5e) in inv€nto'v

sala esandwarescontnbunon b Ptovldent rnd oth€rru'd

Errens.s on ESOF 6nd €sPP

3,991,259.?llEt ,i'iii'iiii-----'-lF'n

L'341'e6ll

183,945,00 131,567',00

o.m ooo

--ffi#0,00

905.00

15,911.000

3,991,251

t{oTE 2o I oTHIR EXPII{SES

MAI{uFAcrUnNG ExPCI'l9Es

coneunpdonofsiores lptres and pa'ldE mEten'l

Repalr & Malnten:nce _ cold store

MARKEfII'IG EX9EXSE5

Loading & u nloading cha'8€s

FrcightOutwardCold Store Hire charger

ADMIT{I5TRATIVE EXPENSES

Traveling & Conveyance Erpenses

G€neral/goard meeting ExPenses

Misc€llaneous ExPenses

Legal & Professlonal Charges

ticense & Filing Charges

Repair & Maintenance ' office

Li.ting fee & bQenses

Shar€ Registrar Charg€s

Panting & stationery

TelePhone Charges

PodtSe charues

Sales Tar Expenses

TOTAI

09,265

10,6020

-Erc,glr

s gglelg

L!,O74 16'947

103,340 97'583

_______E;jin------ zlal s

r24,949202,800

118,515

176,000

4,494

151940

r,433,057 1,299'749

56 6440o

170'646

7A,652 79'452

L32 416

50,439 56'930

93,265 91'976

5oo 5oo

70 1'558'oor\ 10 117 00

------ r,3r3'sil----

----------- r$d;-------car6

529,355

7,651,238

772,756

144,246

13,424

a14,529

29,114

A+B+C11,538,801 11,604,904

(2s)

Tarai Foods Limited

NOtE 2lIsTATEMENT ON SIGNIfICANT ACCOUNTING POTICIES

1. G€neral:The tina nc ial statements are p_epared in accordance with the Indian Generally Accepted Accountirg Principles (GAAP)underthe h storica conconvent of on the accountlfg principles ofGoingConcern and theCompanyfollows mercantile synem ofacco!ntingand reco8nlzes incomean.lexpenditureonaccrua basis exceptthose with slgnificant unc€rtainties.The prepafatlon ofiinancialstatements in confofmity with GAAP requ res managemenl to make estimates and assumptlons that aff€ct thereported amount ofassets, iabilities, reven!es and expenses and disclosure ofcontingent liabilities on the date offinancialnatements. Therecognition, measurement, cl.ssification or disclosure of an itenr or informatlon in the financlal staternents are made reying on theseest mates. Any revision toaccounting estlmates is recognized prospective y.

Fixed Assets are stated at cost of acquisitlof and sLrbsequent impfovement hereto including taxes, duti€s , freight and other lncidentalexpensesrelatedtoacquisitionand fstallation.In accordance with AS 28, whefe there is any indicat on of impairment ofthe Company s assets

reLatedtocashgeneratingunlt,carryinga.nountofsuchassetsa.ereviewedatBaanceSheetdate.CapitalWork-ln Process is caried at cost, comprising direct cost, related ncidenta expenses, ifanyto the extent they relate tothe period tillassets are readyfor intended !se.

3. Depreciation:DepreciationischaGedonstraLghtlinemethodattheratesspecifiedinScheduieXlVoftheCompaniesAct,1956

4. Rev€nue R€cogn ition and Sa l€s:

Revenue onsaleolSoods isrecognized on transferofrisksand reward whlchgene|allycoincidewith d spatch ofBoodslothe parties.5a es aren€tof valu€addedtax.

a. Finished Goods are valued at the lower of cost and net realizab e va ue. Cost forthis purpos€ includes direct con and:n:ppropriate po(ion ofalLocable overheads

b. Wl.P isvalued atcoet. costforthis purpose incLudesdkect cost and attributable overheads.c. In case of stores and spares and packing materia and raw material, 'specific ldentification method and for other inventories, FIFO method is

6. Em olovee Eenetits:a. Provid€ntFundl

Prov dent Fund is a defined contr bltlon scheme andthe contributions arecharged tothe Proflt and Loss Account as ncurred.b. Gratuitv and leave :ncashment entitl€ment I

Thecompany'sliabilitytowardsthecrat!ityandLeaveEncashmentisaccountedforonthebasisofactuarialvaluatondoneattheyearend and is chargedtoStatementof Profitand Loss.

7. TAXATION

ncomeTax expenses comprlsecurrenttax (i.e. amountoftax forthe yeardetermined in accordance with the Income Tax Laws). Defeffed Taxonassets are recosnlzed and carried fo|ward only if there is a virtual/ reasonable certa nty of realization of such assets in neaf future and ar€

reviewed forthelrappropriateness of respectivecarryingvalueatBalanceSheetdate.8. Provisions, Contingent Liabilitie5 and Contingent a5set5r

Pfov s or ls made based on a r€liable estimatewhen it is probab e that an outflow ofresourcesembodyinseconomic benefits w llbe required tosettl€afobllgation.Contlngentliabilltiesaredlsclosedinthenotestoaccountsandaredeterrninedbasedonthernanagementpefceptionthatihese liabil ties are not likelyto nraterialize. Contingent assets are not recogni2ed ordisclosed in th e financia I statements.

NOtE22;ADDITIONALNOTES TO fINANCIALSTATEMENT1. ContingentLlabilitiesafdcommitments:

contlnsent Liabllities not acknowledsed as debi5:a) resardinc excise duty on Lrnbranded French fries Rs.o.s9lacs (previous Rs.0.59)- Matters under appeal hence interest on such demand not

b) regardingIncomeTaxapprox. Rs. 129.84lacs(Previo!sYearRs. 129.84Lacs)2. The conflrmation, reconciliation and adjustment of balances pertaining to trade receivables and payables, loans and advances and capital

advances ls an ontoing process. As regards the outstandlngtrade receivables,loans and advances and capital advances, the slgnificaft portronoftheseareindependentlyverifiedandthecompanyisoftheoplnionthatthesanrear€fullyrecoverableandconseq!entaladjustmentsandprovi5ioning, if any, are not I ke yto be materialgiventhe nature ad sizeoiitsoperation.

3 lnthe abrence of any possibiity oftaxable profits nth€nearfuture,lhecompanyhasnotprovidedforDeferredTaxAssetasperAS-22.Thecompany is not recogn izing defered tdx assets in respect of hLrge unabsorbed depreciatlon and carried forward lossesand other defefred taxassetsasthereisnocertaintythatsufficientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredtaxassetscanbefealzed.

4. The company had raised nvoiceclaims on LambWeston Inc. amountingto Rs.12.17lacs duringearlieryearrtowardsrenting ofcold storag€,tening charges, custom duty and freight charges which are outstanding as at March 31,2014 . These amounts are recove€ble in forergncurfencyandaredoLrbtfuloffecovery.Accordingly,provisionfoftheseamountshadalreadybeenmadeintheseaccountsinl99T98.

5. Disclosure pursuant to Accounting Standard 29: Rs. In lacs

Provisions for doubtful debtsOpering balance as on 01.04.13Provided /Utilised/ Reversed durins the yea.C osing baLance as on 31.03.2014

Debtors Loans and Advances5_41 6.7\NIL NIL

5.47 6.71,

(25)

;i:,J::::",j::#;j1:J:.;ilfi:1i.il::T":::r"j:.esa.dins,he,,s,d,usund".,n",,:

il#llllTf:;f *f;iitl;''"l:;:rfd;::; fuffi mffi r+##i1[r,T]ififfi'.T:::it""T.flriil::lrt,:;*;ir#:i:y,rj:1,iliH,"fu*,;,:i#_,..."_,,"",,",,";__;:_:;

Net Loss before Exceprional

Net Loss After Exceptionat Items

Tarai Foods Limited

lzoti-ri 2012-13

i ( sE.14)

( s8.14)

32,a9, i

2ot3 i

,.6,'*q o,qa8( rquljasr! and Dituled EpS

Iteishted average Equity Shares i

(fdc valueot Rs r0 - eeh)be.ore br(ceprionai itemso ru, r,."p,:"",i1,",i'l'' jo;o.l l tO.24l( 04t) i.'-,

r43381r7

9. i*u,nruktt "ff::ri#il,:n:r,;

***t*l*l:*+*#hl*.*''"*l''l,T"i;;l'ffi+[titjilil*:ili#,'l,'.:,;;":jff;:iff.:,:"-,",.""".::',"#r::1,rff:u*r::';:ir:.::nrTr.:;:

i#i*:":ffiI'jl"""H''#H*:iliiq,',::#r"ifiir;::*tri+r:r,,:1r**iit],#"frf::l*."*##l

Expem$ Rc.og "iz.;

Ncr AselaraEb,t,t) arec-Chized In Batancc

58.10041.6a, i

Tarai Foods Limited

12

13.

74.

The cotd store buitdinc had suffered damages dueto earthquake in March,1999.rhe building requires rnaiorrepairs in insu ation and Rccworks

hasto be repaired an; substantiatinsutation willhave to b€ re-done. The company had filed insurance claim with the Natlonal nsuranceCo. in

20o1which remains unsettled tiI date.

The company suffer€d |oss on account of deteriomtion ofstocks arising out of bleak down in Generat;ng set and earthqUake damages to the

cotd store buitding. company hadfiled insurance ctaim with Nationallnsuranceco. in 2oo1 for deterioration ofstocks ma.hinerv breakdown,

for generatorsetand cold store bLrildingwhich areall pendingtill date

The comDanvhasfiled a case in DelhiHigh courtin 2004 for losses on account of da mages to the cold store, deterioration of stocks, machin€rv

brealdown. t he case has been ad-ined dndthe evidenceeare betngtaken up'

The comoanv has been serued with a statutory notice under s€ction 13 (2) of Securitkation and Reconstruction of the Financial assets and

EnforcementofSecurities Interest Act, 2002, bvtDBlBank Ltd. in 2007.

tFclksued a Notice Lrndersection 13(2) of saRFAESI Act,2OO2 on 05.07.2011 u pon the Company, took over the posse ssion of the secured assets

ofthecomDanvon04'02'20l2underSARFAES|Actandissu€danotjcedtd'7'"Febtuary2012u/513(4)ofthe5ARFAEslAct'2002havin8obtained consentf rom all secured lenders.

tFCtLtd. hasserved a noticedtd 15'" February 2013throush rheiradvocates u/s433 (e)and 434oftheCompanies Act, 19s6 forwindins up ofthe

31stMarch,2074

31stMarch,2013

Nll-

33,0906,000o2,000

NIL

33,0906,00004,000

41,090 43.090

NIL

NIL

NIL

NIL

NIL

NIL

VATUE OF IMPORTS ON CIT BASIS ON RAW MATERIAL, COMPONENETs , SPARE PARTS AND CAPITAT

GOOD5

PAYMEI{T TO AUDITORS AS:

auorT FEES (RAIAN ANlr& CO.)

. TAX AUD|-r FEES (R.1. BANsAL & AS5OCIATES)

. FOR COMPANY LAW MATTER5 , MANAGEMENT AND OTHER SERVICES- REIMBURSEMENTS

TOTAL

EXPENDITURE IN FOREIGN CURRENCYON ROYAI-TY, KNOWHOW PROFESSIONALAND CONSULTATION

FEEs, INTERESTAND OTHER MATTERSAIVOUNT REMITTED IN FOREIGN CURRENCY ON DIVIDEND

EARNII\IGS IN FOiEIGN CURRENCY ON EXPORT OF GOODS,

ROYALTY, (NOWHOW PROFESSIONALAND CONSULTATION FEES, INTERE5I DIVIDEND AND OTHER

INCOME

19_

The access to th e factory isthroughthe land owned by third party. A case has be€n filed and admifted in the localcourts of Rudrapur in earlier

year denying the a€cess to the factory th rough the la nd under €ontrol of third Party'pr.uior.v"uf.lgrr"t

t'uve been regrouped / reclassified wherevernecessarytocorrespond withthe currentvear's classification/ disclosure'

{281

No I value u' Obl,sd'ion.

'. l*ffi1,",n1,''" 6.2r,346 o.-<.5\o 86..'c

Tarai Foods limitedTARAI FOODS LIMITEDAUOITEO CASH FLOW sTATEMENT FOR THE YEAR ENDED 31.03.2014

A. Cash Flowtrom OperatinS Activities

N€t Loss Eefore Tax & Extraordinary itemsAdjustmentsfor

DepreciationFinance Cost

Oebtors Writen OffAmounrs Written Offoperating profit/ ( Lost before Workins Cap,tat Cha nges

AdjustmentforTEde & other RecievabtesLoens and Advances

rradeand other p:yabte

Cash Generated from operationsNet prior yea. adjustmentsFinanceCostTaxes Paid

Net Ca5h frcm Operarint A.tiviles {A}3. Cash Flow from Investing Activiti€s

Purchase of Fixed AssetsAddition in caPital w-t,PInvestment in Fixed DepositSale of hvestmentscash Flow before Eft.aordiMry ltemsAdjustments fo' Exrrdordindry [FmrNet Grh us€d in InvestingActivlles {B)

C. Cash tlow From Ftnanc ing Activities

Pro€eeds from lssle ofShare capital& Share PremiumIncrcase In unsecir.ed toanaProceeds from Long Term BorrowintsRepayment to financial Institutions and Bankscash Flow before Extlaofdinary ttemsAdiustments f or Exrraordinary ttemsNet Cash used in Financing Activiues (C)

Net Increase la Cash & Crsh Equtvatents (A+B+C)cash & Cash Equivatentsas at the besiining ofthe pedod(note betow)Cash & Cash Equival€nts as at the ctose ofthe pertod.{nDte betow)

Cash & Cash Equivatents inctuding-Cash in hand-Balances with Scheduted Bani(5'Fixed Deposit with Bank

Total

- {17,3s9)1675,r90l

{5,721,5961

5,1,16,12519,467

70(584,9341

194,001(75,507)

401,937

|'t,497,5751

0,162,018!.

(19,867)

{1,181,t45)

1676,79O1

1675,7901

1,OO0,0Oo

1,000,000

1,000,000

{858,737)1,283,441

424,704

33,1)46

L46,7572O4,9OL

424,704

(3,480,34s)

5,442,96515,816

10,171

1,5582,O11,1,1,2

{109,496)(31,568)

{3,866,957)2,522,54A

545,631(67,500)(16,816)

451,31s

(17,359)

8,700,000

{8,s00,000)200,000

200,000

643,954

539,4871,243,441

23,6131,O71,,1.33

188,695

1,283,441

l Previous period figures have been regrouped/recrassafied, wherever necessary to €onform tocurenry€ar presentatron.2 Figures in brackets represent outftows_,

li:!::.: :,^'111y -tj:temenr has been p.epared under the ,rndirect Method, as p€r accountins standard.3 (As,3).N per our xepon or even.rate

Rattan Anil& Co.

Charte.ed AccountantsFirm Regn. No. | 009414N

sd/-

Membership No.083929

Date:30th May,20t4

FOR & ON BEHALF OFTHE SOARD

sd/HAKAM SINGHSAINI

OIRECIOR

DIN No: 067a6586

sd/-Dr. R,P, SINGH

EXECUTIVE OIRECTOR & CFO

DIN No: 03515102

(291

-r Tarai Foods LimitedCIN: 115142D11990P1C039291

Regd. Office: 13, Hanuman Road, Connaught Place, New Delhi- 110001 Phone: 011-32629838

Faxr011-23341697, Websitei www.taraifoods.com, EmaillD: taraifoods@Email com

Form No. MGT-11Proxy form

IPursuant to section 105{6) of the Companies Act, 2013 and rule 19(3)

of the Companies {Management and Administration) Rules, 20141

CIN: 115142D11990P1C039291

Name ofthe company: Tarai Foods Limited

Registered office: 13, Hanuman Road, Connaught Place, New Delhi 110001

Name ofthe member (s):

Registered addressl

E-mailld:Folio No/ Client ld:

DP ID:

l/We, being the member (s) of.-......... . shares ofthe above named company, hereby a ppoint

1. Name:-..........-............

Addressl

E mailld:signaturer................, orfailing him

2. Name:......................-.Address:

E-mailldlSignature:.........-......, orfailing him

asmy/ourproxytoattendandVote(onapo||)forme/usandonmy/ourbeha|fattheAnnua|Geneta|meetingofthecompany, to be held on the 29'h day ofSeptember, 2014 at 09:30 a.m. at Elcina House,422, Okhla Industrial Estate, Phase-lll,

NewDelhi-11OO20 and at any adjournment thereof in respect of such resolutions as are indicated below;

Resolution No.

1. To receive, consider and adopt the Balance Sheet as on 31" March, 2014 and the Profit and Lots Account for the year

ended on that date and the Reports ofthe Directors and ALtditorsthereon'

2. To appoint a Director in place of Ms. Kiran sandhu, who retires by rotation and being eligible, offers herself for re

appointment.3. To appoint Statutory Auditors ofthe Company who shallhold office from the conclusion ofthis

Annual General Meeting until the conclusion of the next Annual General Meeting and to authorize the Board of

Directors tofixtheir remuneration.

4. Appointment of Mr. Hakam Singh as Director ofthe Company

5. Appointment of Mr VijayJolly as an Independent Directorofthe Company

6. Appointment of Mr Melvinder Singh Garewalas an Independent Director ofthe Company'

7. Appointment of Mr. Hakam Singh as an Independent Director ofthe Company

8. ToapprovetheremunerationoftheCostAuditorsforthefinancialyear2014 15'

9. Sellorotherwisedisposeoftheundertaking.

Signed this...... day of......... 20....

Signature of shareholder

Affix

Revenue

Stamp

Signature of Proxy holde(s)

Note: This form of proxy in orde. to be effective should be duly completed and deposited at the Registered offi.e ofthe

Company, not lessth'an 48 hours before the commencementofthe Meeting'

(30)