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ISO 22OOO : 2OO5 CERTIFIED COMPANY

,. Flour Division & Regd. Ol1. : 3321412, R.D. Udyog Nagar, Palda,Nemawar Road, lndore - 452 020 (M.P.)Tel : +91-731-2439901 to 2439950Soya Division : Khasra No. 5/1 , Gram Barlai Jagir, Post-KshipraTah. Sanwer, Dist. lndore - 453771 (M.P-)rel: +91-731-2439971 io 2439999Website : www.sitashri.com, E-mail : [email protected]

ctN-11 s314MP1996P1C01 0741

BSE Limited,Phiroze leej eebhoy Towers,

Rotunda Bldg, Dalal Street,

Mumbai- 400 001

National Stock Exchange of India Ltd.,Exchange Plaza, Plot no. C/L,G BlochBandra-Kurla Complex, Bandra [E)Mumbai - 400 051.

To, Dated: 0 1't October, 20\6

SUB: SUBMISSION OF "ANNUAL REPORT FOR THE FINANCIAI, YEAR 2015-16."REF: SCRIP IDISYMBOL: SITASHREE. SCRIP CODE: 532961,ISIN: INE6B6I01011

Dear Sir/ Ma'am,

In consonance with the provisions of Regulation 34 of SEBI [Listing Obligations and Disclosure

Requirements) Regulations, 2015, kindly find enclosed h/w the Annual Report of the Companyfor the Financial Year 2015-16, which has been approved and adopted in the 20t1, Annual General

Meeting of the company.

This is for the intimation of Exchange and members thereof.

You are requested to take the same on record.

ThankingYouYours SincerelyFor, Sita Shree Food Products Limited

\\p-Ashish

$oValltvtanagi\rS Di rector)

Encl: a/a.

,f.anqqBl a\rffii.

th20 ANNUALREPORT2015-2016

SITASHREEFOODPRODUCTSLIMITED

SITASHREE

ANNUALREPORT2015-16|01

SITASHREE

SITA SHREE FOODPRODUCTSLIMITED

BOARDOFDIRECTORS

1. ShriDineshAgrawal - ChairmancumDirector

2. ShriAshishGoyal - ManagingDirector

3. ShriAnoopGoyal - Whole-TimeDirector&CFO

4. ShriSureshNarayanWagh - Non-ExecutiveIndependentDirector

5. ShriGaneshPrasadSharma - Non-ExecutiveIndependentDirector

6. ShriSantoshKumarGupta - Non-ExecutiveIndependentDirector

7. Mrs.AnshuGoyal - AdditionalNon-ExecutiveDirector

CHIEFFINANCIALOFFICER - ShriAnoopGoyal

COMPANYSECRETARY& - Ms.ChitrangdaVishwakarmaCOMPLIANCEOFFICER-

Auditors: RegistrarandShareTransferAgent:M/sM.K.Shah&Associates M/sAnkitConsultancyPrivateLimitedCharteredAccountants 60,ElectronicComplex,PardeshipuraCityPlaza,564M.G.Road,IIndFloor Indore(M.P.)452010ChamberNo.207,NearRegalSquare Tel.:+91-731-2551745-46,4065799,3198601-602Indore-452001 Fax:+91-731-4065798 Email–[email protected]

Bankers: StateBankofIndia UnionBankofIndiaCanaraBankAndhraBankAxisBank

RegisteredOf�ice: Contents

332/4/2,R.D.UdyogNagar, NoticePaldaNemawarRoad,Mathurawala’s Board’sReport Colony,Indore(M.P.)452020 ExtractofAnnualReturn(MGT-9) FormAOC-1Tel.:+91-731-2439901-902-912 ParticularsofContracts/TransactionswithRelatedWebsite:www.sitashri.com Parties(FormAOC-2)Email:[email protected] ManagementDiscussion&AnalysisCIN:L15314MP1996PLC010741 CorporateGovernanceReport MD/CFOComplianceCerti�icate Certi�icateonCorporateGovernance SecretarialAuditReport(MR-3) AnnualReportonCSRActivities Auditor’sReport BalanceSheetBranch: Pro�it&LossAccountKhasraNo.5/1,GramBarlaiJagir, NotestoAccountsPost-Kshipra,Teh.Sanwer, CashFlowStatementsDist.Indore(M.P.)–453771


NOTICE

NOTICEisherebygiventhatTwentiethAnnualGeneralMeetingoftheMembersoftheCompanywillbeheldonFriday,th30 September,2016at10.30A.M.attheregisteredof�iceoftheCompanyat332/4/2,R.D.UdyogNagar,PaldaNemawar

Road,Mathurawala’sColony,Indore(M.P.)452020

Also, as per Section 108 of the Companies Act, 2013, read with Rule 20 of the Companies (Management andAdministration)Rules2014andClause44oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,thecompanyispleasedtoprovideitsmembersthefacilitytocasttheirvotebyelectronicmeans,i.e.E-voting,onallresolutionssetforthintheNotice.E-Votingisoptional.

TheTwentiethAnnualGeneralMeetingoftheMembersoftheCompanywillbeheldtotransactthefollowingbusiness:

ASORDINARYBUSINESS:

st1. ToconsiderandadopttheFinancialStatementsoftheCompanyfortheyearendedon31 March,2016togetherwiththeAuditorsandBoard’sReportthereon.

2. ToappointadirectorinplaceofMr.DineshAgrawal(DIN:00348853),whoretiresbyrotationandbeingeligible,offershimselfforre-appointment.

3. ToratifytheappointmentofStatutoryAuditorsoftheCompanyandauthoritytoBoardto�ixtheirremunerationandtoconsiderandifthought�it,topasswithorwithoutmodi�ication(s),thefollowingresolutionasanordinaryresolution:-

“RESOLVED THAT pursuant to Section 139, 142 of the Companies Act 2013, (“Act”) and other applicableprovisionsoftheAct,ifanyandtherulesframedthereunder,asamendedfromtimetotime,pursuanttotherecommendationsoftheauditcommitteeoftheBoardofDirectors,andpursuanttotheresolutionpassedbythemembersattheAGMheldon31.12.2014,theappointmentofM/sM.K.Shah&Associates,CharteredAccountants(ICAIFirmRegistrationNo.002077CM.No.400-71199)astheStatutoryAuditoroftheCompanytoholdof�icetillthe conclusionof thenextAGMbe and ishereby rati�ied and that theBoardofDirectorsbe and isherebyauthorizedto�ixtheremunerationpayabletothemforthe�inancialyearendingMarch31,2017,asmaybedeterminedbytheauditcommittee inconsultationwiththeauditors,andasmaybemutuallyagreeduponbetweentheBoardofDirectorsoftheCompanyandtheStatutoryAuditors.”

ASSPECIALBUSINESS:

4. AppointmentofMrs.AnshuGoyalasDirectoroftheCompanyandinthisregard,toconsiderandifthought�it,topasswithorwithoutmodi�ication(s)thefollowingResolutionasaSpecialResolution:

“RESOLVEDTHATpursuanttosection149,152,160andotherapplicableprovisionsoftheCompaniesAct,2013andtheRulesmadethereunderandasmaybeamendedfromtimetotime,approvalofMembersoftheCompanybeandisherebyaccordedfortheappointmentofMrs.AnshuGoyal(DIN:03256085),astheDirectorofthecompanyw.e.f.dateofthismeeting;

RESOLVEDFURTHERTHATMrs.AnshuGoyalshallbeliabletodeterminationbyretirementofdirectorsbyrotationattheAnnualGeneralMeetingoftheMembersoftheCompany;

RESOLVEDFURTHERTHATAshishGoyalManagingDirectoroftheCompanybeandisherebyauthorizedtodoandperformallsuchacts,deeds,mattersandthings,astheymayintheirabsolutediscretionconsidernecessary,expedientordesirable,forthepurposeofgivingeffecttothisresolution.”

5. ToratifytheremunerationoftheCostAuditorsforthe�inancialyear2015-16andinthisregard,toconsiderandifthought�it,topasswithorwithoutmodi�ication(s)thefollowingResolutionasanOrdinaryResolution:

“RESOLVEDTHATpursuant to theprovisionsofSection148andotherapplicableprovisions, if any,of theCompanies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any statutorymodi�ication(s)orre-enactment(s)thereof,forthetimebeinginforce),thetotalconsolidatedremunerationpayableduringtheyear2015-16toM/s.M.P.Turakhia&Associates,CostAccountants(FirmRegn.No.000417)appointedbytheBoardofDirectorstoconducttheauditofcostrecordsoftheCompanyforthe�inancialyear2015-16,amountingtoRs.40,000/-(RupeesFortyThousandOnly)beandisherebyrati�iedandcon�irmed.”

SITASHREE



6. ApprovalforRelatedPartyTransactionandinthisregard,toconsiderandifthought�it,topasswithor withoutmodi�ication(s)thefollowingResolutionasanSpecialResolution:

"RESOLVED THAT pursuant to provisions of Section 188 and other applicable provisions, if any, of theCompaniesAct,2013readwithapplicableRulesunderCompanies(MeetingsofBoardanditsPowers)Rules,2014, wherever applicable and in terms of Regulation 23 of the SEBI (Listing Obligations and DisclosureRequirements)Regulations,2015executedwiththeStockExchanges(includinganyamendment,modi�icationorre-enactment thereof),consentof themembersof theCompanybeand isherebyaccordedtoenter intomaterialtransactionswithrelatedpartiesi.e.M/sAnoopFoodsLimited,M/sKashiyaExportsPrivateLimited,M/sUshaDalMill,M/sChandrikaTradingCompany,M/sR.J.MarketingLimited(formerlyknownasSitaShreeMarketingLimited)andM/sM.R.AgroOverseasLimited(formerlyknownasSitashreeOverseasLimited)(allRelatedParties)forsale,purchaseorsupplyofanygoodsorproducts;leasing,sellingorotherwisedisposingof,orbuyingpropertyofanykindoracceptingloanandavailingorrenderingofanyservicesortakingloanoranyotherpurposeastheCompanymaythink�itinitsabsolutediscretionuptotheamountnotexceedingRs.750.00CroreperyearinaggregateasmayberequiredbytheCompanyonthetermsasagreed/maybeagreed,subjecttothatallsuchtransactionsshallbeatarm’slengthbasisandintheordinarycourseofbusinessoftheCompany.

RESOLVEDFURTHERTHATalltheearliertransactionsdonebytheBoardinthisbehalfbeandisherebyrati�ied.

RESOLVEDFURTHERTHATtheBoardofDirectorsoftheCompanybeandareherebyindividuallyauthorisedtosignanydocumentoragreementforaboveproposedtransactiononbehalfoftheCompanyandtakenecessarystepsandtodoallacts,deedsandthingsasmaybenecessaryandincidentaltogiveeffecttothisresolution."

ByorderoftheBoardofDirectors, For,SitaShreeFoodProductsLimited ChitrangdaVishwakarmaDate:31.08.2016 CompanySecretaryPlace:Indore ACSNo.:41337

NOTES:

1. TherelativeExplanatoryStatementpursuanttoSection102oftheCompaniesAct,2013(“Act”)inrespectofthespecialbusinesstobetransactedattheAnnualGeneralMeetingisannexedhereto.

2. AMEMBERENTITLEDTOATTENDANDVOTEATTHEMEETING ISENTITLEDTOAPPOINTAPROXYTOATTENDANDVOTEONPOLLONHIS/HERBEHALFANDTHEPROXYNEEDNOTBEAMEMBEROFTHECOMPANY.

The instrument appointing Proxy as per the format included in the Annual Report should be returned to theRegisteredof�iceoftheCompanynotlessthanFORTY-EIGHTHOURSbeforethetimeforholdingtheMeeting.Proxiessubmitted onbehalf of limited companies, societies, partnership �irms, etc.must be supportedby appropriateresolution/authority,asapplicable,issuedbythememberorganization.ApersoncanactasaproxyonbehalfofMembersnotexceeding�iftyandholdingintheaggregatenotmorethantenpercentofthetotalsharecapitaloftheCompanycarryingvotingrights.AmemberholdingmorethantenpercentofthetotalsharecapitaloftheCompanycarryingvotingrightsmayappointasinglepersonasproxyandsuchpersonshallnotactasaproxyforanyotherpersonoraMember.

3. AlldocumentsreferredtointheNoticewillbeavailableforinspectionattheCompany’sregisteredof�iceduringnormalbusinesshoursonworkingdaysuptothedateoftheAGM.

st4. TheregisterofmembersandtransferbooksoftheCompanyshallremainclosedfrom<<21 dayofSeptember,th2016>>to<<30 dayofSeptember,2016>>(bothdaysinclusive)forthepurposeofAnnualGeneralMeeting.

5. AnyqueryrelatingtoaccountsoranyotheritemsofbusinesssetoutintheAgendaofthemeetingmustbesenttotheCompany’sRegisteredOf�iceatleastsevendaysbeforethedateoftheMeeting.

6. Corporatemembersintendingtosendtheirauthorizedrepresentativestoattendthemeetingarerequestedtolodge

SITASHREE



acerti�iedtruecopyoftheresolutionoftheBoardofDirectorsorothergoverningbodyofthebodycorporatenotlater than48 (forty eight)hoursbefore commencementof themeetingauthorizing suchperson to attendandvoteonitsbehalfatthemeeting.

7. TheNoticeisbeingsenttoalltheMembers,whosenamesappearintheRegisterofMembers/listofBene�icialOwnersasreceivedfromNationalSecuritiesDepositoryLimited(NSDL)/CentralDepositoryServices(India)Limited(CDSL).

8. MembersmayalsonotethattheNoticeoftheAGMwillbeavailableontheCompany’swebsiteviz.www.sitashri.com.

9. MemberswhoareholdingCompany’ssharesindematerializedformarerequiredtobringdetailsoftheirDepositoryAccountNumberforidenti�ication.

10.MembersarerequestedtobringtheircopiesofAnnualReporttotheMeeting.InordertoenableustoregisteryourattendanceatthevenueoftheAnnualGeneralMeeting,membersarerequestedtopleasebringtheirfolionumber/demataccountnumber/DPID-ClientIDtoenableustoprovideaduly�illedattendanceslipforyoursignatureandparticipationatthemeeting.

11.Incaseofjointholdersattendingthemeeting,onlysuchjointholderwhoishigherintheorderofnameswillbeentitledtovote.

12.Members/Proxiesshouldbringtheirattendanceslipduly�illedinforattendingthemeeting.Membersarealsorequestedtoinformcompanyofanychangeintheiraddressimmediatelysoastoenablethecompanytodispatchanyfurthercommunicationattheircorrectaddress.

13.PursuanttoSection101andSection136oftheCompaniesAct,2013readwithrelevantCompanies(ManagementandAdministration)Rules,2014andClause36of theSEBI (ListingObligationsandDisclosureRequirements)Regulations,2015,companiescanserveAnnualReportsandothercommunicationsthroughelectronicmodetothosememberswhohaveregisteredtheire-mailaddresseitherwiththeCompanyorwiththeDepository.Memberswhohavenotregisteredtheire-mailaddresswiththeCompanyarerequestedtosubmittheirrequestwiththeirvalide-mailaddresstoM/sAnkitConsultancyPrivateLimited.Membersholdingsharesindematformarerequestedtoregister/updatetheire-mailaddresswiththeirDepositoryParticipant(s)directly.MembersoftheCompany,whohaveregisteredtheiremail-address,areentitledtoreceivesuchcommunicationinphysicalformuponrequest.

14.Withaviewtousingnaturalresourcesresponsibly,werequestshareholderstoupdatetheiremailaddresswiththeirDepositoryParticipantstoenabletheCompanytosendcommunicationselectronically.

15.PursuanttotheprovisionsofSection108oftheCompaniesAct,2013andRule20oftheCompanies(ManagementandAdministration)Rules,2014asamendedbytheCompanies(ManagementandAdministration)Rules,2015andClause44oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,theCompanyispleasedtoprovidemembersthefacilitytoexercisetheirrighttovotethroughremotee-votinginrespectoftheresolutionproposedtobepassedattheAnnualGeneralMeeting(AGM)byusingtheelectronicvotingfacilityprovidedbyCentralDepositoryServicesLimited(CDSL).

16.Additionalinformation,pursuanttoRegulation36(3)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015 in respectof thedirectorsseekingappointment/reappointmentat theAGM, is furnishedasannexuretotheNotice.Thedirectorshavefurnishedconsent/declarationfortheirappointment/reappointmentasrequiredundertheCompaniesAct,2013andtheRulesthereunder.

17.TheSecuritiesandExchangeBoardofIndia(SEBI)hasmandatedthesubmissionofthePermanentAccountNumber(PAN) by every participant in the securitiesmarket.Members holding shares in electronic form are thereforerequestedtosubmit theirPANtotheirDepositoryParticipant(s).Membersholdingshares inphysical formarerequiredtosubmittheirPANdetailstoRegistrarandTransferAgents,M/s.AnkitConsultancyPrivateLimited,60,ElectronicComplex,PardeshipuraIndore(M.P.)452010.

18.Mr.PratikTripathi(FCS5812),PartnerofP.S.TripathiandAssociates,PracticingCompanySecretariesshallactasScrutinizerforconductingtheE-votingprocessinafairandtransparentmanner.

19.Thevoting rightsofMembers shall be inproportion to their sharesof thePaidupEquityShareCapital of theCompany.

SITASHREE



SHAREHOLDERINSTRUCTIONSFORE-VOTING

Theinstructionsforshareholdersvotingelectronicallyareasunder:

(i) Thevotingperiodbeginson<From09.00A.M.(IST)on27thDayofSeptember,2016>andendson<upto05.00P.M.(IST)on29thDayofSeptember,2016>.Duringthisperiodshareholders’oftheCompany,holdingshareseitherinphysicalformorindematerializedform,asonthecut-offdate(recorddate)of<23rdDayofSeptember,2016>,maycasttheirvoteelectronically.Thee-votingmoduleshallbedisabledbyCDSLforvotingthereafter.

(ii)Shareholderswhohavecasttheirvotebyremotee-votingpriortothemeetingmayalsoattendthemeetingbutshallnotbeentitledtocasttheirvoteagainatthemeetingvenue.

(iii) Theshareholdersshouldlogontothee-votingwebsitewww.evotingindia.com

(iv) Clickon“Shareholders”.

(v) NowEnteryourUserID

a. ForCDSL:16digitsbene�iciaryID,

b. ForNSDL:8CharacterDPIDfollowedby8DigitsClientID,

c. MembersholdingsharesinPhysicalFormshouldenterFolioNumberregisteredwiththeCompany.

(vi) NextentertheImageVeri�icationasdisplayedandClickonLogin.

(vii) Ifyouareholdingsharesindematformandhadloggedontowww.evotingindia.comandvotedonanearlier votingofanycompany,thenyourexistingpasswordistobeused.

(viii) Ifyouarea�irsttimeuserfollowthestepsgivenbelow:

ForMembersholdingsharesinDematFormandPhysicalForm

PAN Enteryour10digitalpha-numeric*PANissuedbyIncomeTaxDepartment(Applicableforbothdemat shareholdersaswellasphysicalshareholders)

• MemberswhohavenotupdatedtheirPANwiththeCompany/DepositoryParticipantarerequested tousethe�irsttwolettersoftheirnameandthe8digitsofthesequencenumberinthePANField.

• Incasethesequencenumberislessthan8digitsentertheapplicablenumberof0’sbeforethenumber afterthe�irsttwocharactersofthenameinCAPITALletters.E.g.IfyournameisRameshKumarwith sequencenumber1thenenterRA00000001inthePANField.

Dividend EntertheDividendBankDetailsorDateofBirth(indd/mm/yyyyformat)asrecordedinyourdematBankDetails accountorinthecompanyrecordsinordertologin.andDateof • Ifboththedetailsarenotrecordedwiththedepositoryorcompanypleaseenterthememberid/Birth(DOB) folionumberintheDividendBankdetails�ieldasmentionedininstruction(v).

NOTE:PLEASEKEEPTHESEQUENCENUMBERINSAFECUSTODYFORFUTUREE-VOTING.

(ix) Afterenteringthesedetailsappropriately,clickon“SUBMIT”tab.

(x) Members holding shares in physical formwill then reach directly the Company selection screen. However,membersholdingsharesindematformwillnowreach‘PasswordCreation’menuwhereintheyarerequiredtomandatorilyentertheirloginpasswordinthenewpassword�ield.Kindlynotethatthispasswordistobealsousedbythedematholdersforvotingforresolutionsofanyothercompanyonwhichtheyareeligibletovote,providedthatcompanyoptsfore-votingthroughCDSLplatform.Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordcon�idential.

(xi) ForMembers holding shares in physical form, the details can be used only for e-voting on the resolutionscontainedinthisNotice.

(xii) ClickontheEVSNfortherelevant<SitaShreeFoodProductsLimited>onwhichyouchoosetovote.

(xiii) Onthevotingpage,youwillsee“RESOLUTIONDESCRIPTION”andagainstthesametheoption“YES/NO”forvoting.SelecttheoptionYESorNOasdesired.TheoptionYESimpliesthatyouassenttotheResolutionandoptionNOimpliesthatyoudissenttotheResolution.

(xiv) Clickonthe“RESOLUTIONSFILELINK”ifyouwishtoviewtheentireResolutiondetails.

SITASHREE



(xv) After selecting the resolution you have decided to vote on, click on “SUBMIT”. A con�irmation boxwill be displayed. If youwish to con�irmyourvote, clickon“OK”, else to changeyourvote, clickon “CANCEL”and accordinglymodifyyourvote.

(xvi) Onceyou“CONFIRM”yourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.

(xvii) Youcanalsotakeoutprintofthevotingdonebyyoubyclickingon“Clickheretoprint”optionontheVotingpage.

(xviii) IfDemataccountholderhasforgottenthechangedpasswordthenentertheUserIDandtheimageveri�icationcodeandclickonForgotPassword&enterthedetailsaspromptedbythesystem.

(xix) ShareholderscanalsocasttheirvoteusingCDSL’smobileappm-Votingavailableforandroidbasedmobiles.Them-VotingappcanbedownloadedfromGooglePlayStore,AppleandWindowsphoneuserscandownloadtheappfromtheAppStoreandtheWindowsPhoneStorerespectivelyonorafter30thJune2016.Pleasefollowtheinstructionsaspromptedbythemobileappwhilevotingonyourmobile.

(xx) NoteforNon–IndividualShareholdersandCustodians

• Non-Individualshareholders(i.e.otherthanIndividuals,HUFandNRIetc.)andCustodianarerequiredtologontowww.evotingindia.comandregisterthemselvesasCorporate.

• A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed [email protected].

• Afterreceivingthelogindetailsacomplianceusershouldbecreatedusingtheadminloginandpassword.TheComplianceuserwouldbeabletolinktheaccount(s)forwhichtheywishtovoteon.

• Thelistofaccountslinkedintheloginshouldbemailedtohelpdesk.evoting@cdslindia.comandonapprovaloftheaccountstheywouldbeabletocasttheirvote.

• AscannedcopyoftheBoardResolutionandPowerofAttorney(POA)whichtheyhaveissuedinfavoroftheCustodian,ifany,shouldbeuploadedinPDFformatinthesystemforthescrutinizertoverifythesame.

(xxi) Mr.PratikTripathi(FCS5812),PartnerofP.S.TripathiandAssociates,PracticingCompanySecretaries,havinghisof�iceat306,ManasBhawanExtn.,11,R.N.T.Marg, Indore–452001,M.P.,hasbeenappointedastheScrutinizertoscrutinizethee-votingprocessinafairandtransparentmanner.

(xxii) Incaseyouhaveanyqueriesorissuesregardinge-voting,youmayrefertheFrequentlyAskedQuestions(“FAQs”)and e-voting manual available at www.evotingindia.com, under help section or write an email [email protected].

OtherInstructions:

(A) Thefacilitytoexercisetherightofvotingthroughballotpapershallalsobemadeavailableatthemeetingforthemembersattendingthemeetingwhohavenotalreadycasttheirvotebyremotee-voting.

(B) Once the voteon a resolution is cast by the shareholder, the shareholder shall not be allowed to change itsubsequently.

(C) Apersonwhosenameisrecordedintheregisterofbene�icialownersmaintainedbythedepositoriesasonthecut-offdate(recorddate)of<23rdDayofSeptember,2016>,onlyshallbeentitledtoavailthefacilityofremotee-votingaswellasvotinginthemeeting.

(D) AnypersonwhoacquiressharesoftheCompanyandbecomesamemberoftheCompanyafterthedispatchofthisNoticeandholdssharesasonthecut-offdatei.e.<23rdDayofSeptember,2016>shouldfollowtheinstructionsforE-votingasmentionedforFIRSTTIMEUSER.Incaseofanyqueries,theshareholdermayalsocontacttheRegistrar&TransferAgentviz.M/s.AnkitConsultancyPrivateLimited.

(E) TheScrutinizershall,aftertheconclusionoftheAGM,�irstcountthevotescastatthemeetingandthereafterunlockthevotescastthroughremotee-votinginthepresenceofatleasttwo(2)witnessesnotintheemploymentoftheCompany.TheScrutinizershall,withinaperiodofnotlaterthanthree(3)daysfromtheconclusionoftheAGM,prepareaconsolidatedScrutinizer’sReportofthetotalvotescastinfavouroragainst,ifany,andsubmitittotheChairmanoranypersonauthorizedbyhiminwriting,whoshallcountersignthesameanddeclaretheresultsofthevoting.

SITASHREE



(F) TheResults sodeclared,alongwith theScrutinizer’sReport, shallbeplacedon theCompany’swebsiteviz. www.sitashri.comandonthewebsiteofCDSL.TheresultsshallalsobeforwardedtoStockExchanges.

(G) ElectroniccopyoftheNoticealongwiththeExplanatoryStatementisbeingsenttoallthememberswhoseemailids are registered with the Company/Depository Participants(s) for communication purposes unless anymemberhasrequestedforahardcopyofthesame.Formemberswhohavenotregisteredtheiremailaddress,physicalcopyoftheNoticealongwiththeExplanatoryStatementisbeingsentinthepermittedmode.

(H) Memberswhohavenotregisteredtheire-mailaddresses,sofar,arerequestedtoregistertheire-mailaddresses,inrespectoftheirelectronicholdingswiththeDepositorythroughtheirconcernedDepositoryParticipants.Memberswhoholdsharesinphysicalformarerequestedtoregistertheire-mailaddresseswiththeCompany’sRegistrar & Transfer Agents, M/s. Ankit Consultancy Private Limited by sending an e-mail [email protected],FolioNo.etc.

(I) Incaseyouhaveanyqueriesorissuesregardinge-voting,youmaycontactthepersonmentionedbelow:

Name : ChitrangdaVishwakarma

Designation : CompanySecretary

Address : 332/4/2,R.D.UdyogNagar,Palda,NemawarRoad,Indore,M.P.452020

E-mailid : complianceof�[email protected]

PhoneNumber : 0731-2439913

(J) ArouteguidemapoftheAnnualGeneralMeetingvenueisgiveninthelastpageofthisAnnualReport.


ExplanatoryStatement(PursuanttoSection102oftheCompaniesAct,2013)

ForItemNo.4 TocomplywiththerequirementsofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015and

provisionsofSection149,152,160oftheCompaniesAct,2013andaspertherecommendationofNominationandRemunerationCommittee,theBoardatitsmeetingheldon31.08.2016appointedMrs.AnshuGoyalasanAdditionalDirectoroftheCompany.PursuanttotheprovisionsofSection161oftheCompaniesAct,2013,Mrs.AnshuGoyalwillholdof�iceuptothedateofensuingAGM.

Mrs. Anshu Goyal D/o Ashok Kumar Gupta, Additional Non-Executive Director, age 30 Years, is a MBA(Administration).Sheisayoungentrepreneurwithbrightandinnovativeideastodothebusiness.Sheishavingexpertiseinbusinessmanagement,Productionplanningandcontrol.Also,shehasworkedastheAssistantGeneralManagerofIDBIBank,Indorefortwoyears.

TheCompanyhasreceivedanoticeinwritingundertheprovisionsofSection160oftheCompaniesAct,2013,fromMr. AshishGoyalwho is amember of the company and parted the requisite amount of deposit proposing thecandidatureofMrs.AnshuGoyalfortheof�iceoftheNon-ExecutiveDirectoroftheCompany.

Mrs.AnshuGoyaldoesnotholdanysharesofthecompany.SheshallbeappointedasNonExecutiveDirectorofthecompanyw.e.f.dateofthismeeting.

SITASHREEFOODPRODUCTSLTD.(SSFPL)wasestablishedintheyear1996andpresentlySSFPLisamongthetopFMCGplayersinIndia,withaturnovercrossingINR750million.SSFPLispresentlylistedonBombayStockExchangeLimited(BSECode:532961),NationalStockExchangeofIndiaLimited(NSESymbol:SITASHREE)withamarket

stcapitalizationofmorethanINR250million,asat31 March,2016.SSFPLhasnowsuccessfullycreatedbrandsof“SITASHREEGOLD”,“NATURALHARVEST”AND“GOLDENHARVEST”whichhaspenetratedthroughtheretailchannelthroughouttheIndia.SSFPLestablisheditsbrandoverseasandhavingexportofINR555.927Millionin2015-16.

Rs.InLacs

2015-16 2014-15

Sales 75714.29 57764.68

Pro�itBeforeTax 16.99 702.03

SITASHREE



ExceptMr.DineshAgrawal,Mr.AshishGoyal,Mr.AnoopGoyalandMrs.AnshuGoyalherself,nootherdirectorsorKMPortheirrelativesareconcernedor interested intheaforesaidresolutionandyourboardrecommendstheOrdinaryResolution setout at ItemNo.4of theNotice for approvalby the shareholders in the interestof theCompany.

ForItemNo.5

TheBoardofDirectorsoftheCompanyontherecommendationoftheAuditCommitteeapprovedtheappointmentandremunerationofM/s.M.P.Turakhia&Associates,CostAccountants(FirmRegn.No.000417)toconducttheauditofthecostrecordsoftheCompanyforthe�inancialyearendedMarch31,2016,ataconsolidatedremunerationofRs.40,000/-,subjecttorati�icationbyshareholders.

IntermsoftheprovisionsofSection148(3)oftheCompaniesAct,2013readwithRule14(a)(ii)oftheCompanies(AuditandAuditors)Rules,2014,theremunerationpayabletotheCostAuditoristoberati�iedbytheMembersoftheCompany.Accordingly,theMembersarerequestedtoratifytheremunerationpayabletotheCostAuditorsduringtheyear2015-16assetoutintheResolutionfortheaforesaidservicestoberenderedbythem.

NoneofthedirectorsorKMPortheirrelativesareconcernedorinterestedintheaforesaidresolutionandyourboardrecommendstheOrdinaryResolutionsetoutatItemNo.5oftheNoticeforapprovalbytheshareholdersintheinterestoftheCompany.

ForItemNo.6

Section188oftheCompaniesAct,2013readwithrules15,16and6AofCompanies(MeetingsofBoardanditsPowers)Rules,2014,whereverapplicableprescribescertainprocedureforapprovalofrelatedpartytransactionsandrevisedClause23oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015whichhascomeintooperationwitheffectfrom01stofDecember,2015,hasalsoprescribedseekingofshareholders’approvalformaterialrelatedpartytransactions.

Theprovisotosection188alsostatesthatnothinginsection188(1)willapplytoanytransactionenteredintobythecompanyinitsordinarycourseofbusinessandatarm’slengthbasis.Allthetransactionsareproposedtobeexecutedinordinarycourseofbusinessandatarm’slengthbasis;therefore,itdoesnotrequiresanyapprovalundersection188oftheCompaniesAct,2013.But,pursuanttotheprovisionsofrevisedClause23oftheSEBI(ListingObligationsand Disclosure Requirements) Regulations, 2015, the following contracts / arrangements / transactions areconsideredtobematerialinnaturewithanamountnotexceedingRs.750.00CroresinaggregateonyearlybasisandrequiretheapprovaloftheunrelatedshareholdersoftheCompanybyaspecialresolutionpursuanttoSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015:

Sr. NameoftheRelatedParty Relationship MaximumValueofNatureandMaterialTerms/

No. TransactionsPer Particularsofthecontract

annum(Rs.InCrores) orarrangement

1. M/sR.J.MarketingLimited(formerly Companyinwhich knownasSitaShreeMarketingLimited) relativeisDirector 750.00 Forsale,purchaseorsupply

2. M/sM.R.AgroOverseasLimited(formerlyCompanyinwhich ofanygoodsorproducts; knownasSitaShreeOverseasLimited) relativeisDirector leasing,sellingorotherwise

3. M/sUshaDallMill Proprietorshipof disposingof,orbuying Relative propertyofanykindor

4. M/sKashiyaExportsPrivateLimited GroupCompany acquiringloanandavailing

5. M/sAnoopFoodsLimited AssociateCompany orrenderingofanyservices

6. M/sChandrikaTradingCompany Proprietorshipof oranyotherpurposeasmay Director berequired

Theotherrelatedinformationisfurnishedhereunder:NameoftheRelatedParty Aspertableabove

NameoftheDirectororkeymanagerialpersonnel Mr.DineshAgrawal,Mr.AshishGoyal,Mr.AnoopGoyalwhoisrelated,ifany andMrs.AnshuGoyalmayberelatedindifferentcapacities.

NatureofRelationship Aspertableabove

Thenature,materialterms,monetaryvalueand Allproposedtransactionswerecarriedoutbasedonparticularsofthecontractorarrangement businessrequirementsoftheCompanyafterconsideringof variousbusinessexigencies,suchassynergyinoperations,

SITASHREE


sectoralspecializationandtheCompany’slong-term strategyforsectoralinvestments,optimizationofmarket share,pro�itability,liquidityandcapitalresourcesandin ordinarycourseofbusinessandatarms’length.

Anyotherinformationrelevantorimportantforthe Nonememberstotakeadecisionontheproposedresolution

Theabovecontracts/arrangements/transactionsweredulyapprovedbytheAuditCommittee.

Further,thatallearliermaterialRelatedPartyTransactionsdonebytheboardshallalsotoberati�iedbytheunrelatedmembersoftheCompany.AllmaterialtransactionsalreadydonebytheBoardwerealsocarriedonarm’slengthbasisandintheordinarycourseofbusiness.

AsperClause23oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,allentities/personsthataredirectly/indirectlyrelatedpartiesoftheCompanyshallabstainfromvotingonresolution(s)whereinapprovalofmaterialRelatedPartyTransactionsissoughtfromtheshareholders.

ExceptMr.DineshAgrawal,Mr.AshishGoyal,Mr.AnoopGoyalandMrs.AnshuGoyal,nootherdirectorsorKMPortheirrelativesareconcernedorinterestedintheaforesaidresolutionandyourboardrecommendstheSpecialResolutionsetoutatItemNo.6oftheNoticeforapprovalbytheunrelatedshareholdersintheinterestoftheCompany.

DetailsofDirectorsseekingappointmentasrequiredintermsofClause36(3)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015

Particulars Mr.DineshAgrawal* Mrs.AnshuGoyal

DateofBirth 17.09.1954 24.03.1986

DateofAppointment 14.10.1996 31.08.2016

Quali�ication B.Sc. MBA(Administration)

BriefResumeandExpertisein Mr.DineshAgrawalistheFounder& Mrs.AnshuGoyalisaMBA(Administration).speci�icfunctionalarea ChairpersonofSITASHREEFOOD Sheisayoungentrepreneurwithbrightand PRODUCTSLTD.(SSFPL)whichwas innovativeideastodothebusiness.Sheis establishedintheyear1996.Heis havingexpertiseinbusinessmanagement, havingcomprehensiveexperience Productionplanningandcontrol.Also,she ofoverFourdecades,well–known hadworkedastheAssistantGeneralManager forhisbusinessintegrityand ofIDBIBank,Indorefortwoyears. businessacumen,closelyassociated withFlourandcereals.

No.ofSharesheldinthe 282430 -Company

Directorshipsheldinother Nil AnoopFoodsLimitedcompanies(excludingprivateandforeigncos.)

Memberships/Chairmanships Nil -ofcommitteestotheBoardofotherPublicCompanies(includesonlyAuditCommitteeandStakeholders'RelationshipCommittee.

*Retirebyrotation.



SITASHREE


BOARD’SREPORT

To,TheMembers,SitaShreeFoodProductsLimitedIndore

thYourBoardofDirectorshasimmensepleasureinpresentingthe20 AnnualReportofyourCompanyalongwiththestAudited Financial Statements for the Financial Year ended on 31 March, 2016. Further, in compliance with the

Companies Act, 2013 the Company has made requisite disclosures in this Board’s Report with the objective ofaccountabilityandtransparencyinitsoperationstomakeyouawareaboutitsperformanceandfutureperspectiveoftheCompany.

1.1FINANCIALRESULTS(STANDALONE&CONSOLIDATED)ANDSTATEOFCOMPANY’SAFFAIRANDCHANGEIN THENATUREOFBUSINESS:

TheBoard’sReportispreparedbasedontheStandaloneandConsolidated�inancialstatementsofthecompanyfor theyearendedMarch31,2016issummarizedbelow:

Standalone

(Rs.InLacs)

Particulars 2016 2015

Incomefromoperation 76182.57 58088.60

Pro�it/lossbeforeprovidingDepreciationandInterest 2418.33 2932.68

Less:Depreciation 588.61 594.01

Interest 1812.73 1634.55

Pro�it/lossBeforeExceptional&ExtraordinaryItems 16.99 704.12

Less:ExceptionalItems - 2.09

Pro�it/lossBeforeTaxation 16.99 702.03

Less:ProvisionforCurrentTaxation 3.24 147.79

DeferredTaxLiability 114.31 308.15

Pro�it/LossafterTaxation (100.56) 246.08

Consolidated

(Rs.InLacs)

Particulars 2016

Incomefromoperation 76182.57

Pro�it/lossbeforeprovidingDepreciationandInterest 2418.33

Less:Depreciation 588.61

Interest 1812.73

Pro�it/lossBeforeExceptional&ExtraordinaryItems 16.99

Less:ExceptionalItems -

Pro�it/lossBeforeTaxation 16.99

Less:ProvisionforCurrentTaxation 3.24

DeferredTaxLiability 114.31

Pro�it/LossafterTaxation (96.83)


SITASHREE


TheCompanyhadstarteditsjourneyincapitalmarketsegmentin2008byanIPOandlisteditssecuritiesatNationalStockExchangeofIndiaLimitedandBombayStockExchangeLimited.Thecompanyhasdiversi�ieditsbusinessinduecourseoftimeandstarteditsSoyaRe�inery(SolventExtractionPlant).Alltheproducts,differentsegments,includingperformanceandbusinessenvironmentthereofhavebeencoveredindetailintheManagementDiscussionandAnalysisReportseparatelywhichisannexedasANNEXUREIVwiththisreportandshallformpartoftheBoard’sreport.

1.2 WORKINGPERFORMANCEREVIEW:

Duringthe�inancialyearincomesofthecompanyisincreasedfromRs.58088.60LacstoRs.76182.57LacsandresultinginlossofRs.100.56Lacsagainstthepro�itofRs.246.08Lacsinthepreviousyear.Companyishavingpro�itofRs.16.99Lacsbeforethetax.YourDirectorsarecon�identandtryinghardtoincreasethepro�itabilityduringthecurrent�inancialyearwithdedicatedeffortsofthemanagementandwithimprovingabilitytosourcerawmaterialsrequiredfrommultiplesourcesinatimelyandcosteffectivemanner,withreduceddependenceonthirdparties.

TheCompanyisengagedinthebusinessofwheat,soyaandpulsesproductsmanufacturingandbyproductsofagrocommoditiesinlocalaswellasinternationalmarket.Inmanufacturingactivityof�lourdivisionturnoverisRs.562.12CroresascomparetoRs.224.95CroresofpreviousyearsimilarlyforsoyadivisionsalesofmanufacturingactivityisRs.160.24CroresascomparetoRs.225.38Croresofpreviousyear.InGrading&Processingactivityof�lourdivisionturnoverisRs.34.03CroresascomparetoRs.125.93Croresofpreviousyear.Further,thedetailedperformance covered in the Management Discussion and Analysis Report separately which is annexed asANNEXUREIVwiththisreportandshallformpartoftheBoard’sreport.

1.3 CHANGESINNATUREOFBUSINESS

ThereisnochangeinthenatureofbusinessoftheCompanyduringthe�inancialyear2015-16.

1.4 SHARECAPITAL:

ThepaidupequitycapitalasonMarch31,2016wasRs.60,834,1740/-Crores.

Duringtheyearunderreview,pursuanttothespecialresolutionspassedintheExtraOrdinaryGeneralMeetingoftheMembers of the Company held 30thMay, 2015, the Company has convertedNos. 60,00,000 (Sixty Lacs)unissuedEquitySharesofRs.10/-eachintoNos.60,00,000(SixtyLacs)PreferenceSharesofRs.10/-eachandalsoincreased its authorized share capital from Rs. 59,55,00,000/- (Rs. Fifty Nine Crores Fifty Five Lacs) to Rs.61,55,00,000/-(Rs.SixtyOneCroresFiftyFiveLacs)byaddingNos.20,00,000PreferencesharesofRs.10/-each.Further,inthesamemeetinghasauthorizedBoardofDirectorsoftheCompanytoissueonpreferentialbasisNos.1,20,00,000Non-ConvertibleandRedeemableafter18yearsbutwithin20yearsfromthedateofallotmentthereofandshallcarry0%dividendonsuchsharesPreferenceSharesofRs.10/-eachoutoftheconversionofunsecuredloansofproposedallotteeslyingwiththeCompanytopromoter/existingshareholders,otherthanintheirexistingratioonpreferentialbasis;

FurtherpursuanttotheresolutionpassedinthemeetingoftheBoardofDirectorsandasperthestipulationofStateBankofIndia,theboardhasallottedNos.1,20,00,000NonConvertible,NonCumulativeandRedeemableafter18Years butwithin 20 years, carrying 0%Dividend, Preference Shares of Rs 10/- each of the Company to thepromotersasfullyPaid-upagainsttheconversionofunsecuredloans.

Furtherthatnoneofthedirectorswereholdingconvertibleinstrumentsasondate.

1.5 REVISIONINFINANCIALSTATEMENTS

Intermsofsection131oftheCompaniesAct,2013,theFinancialStatementsandBoard’sReportareincompliancewiththeprovisionsofsection129orsection134oftheactandthatnorevisionhasbeenmadeduringanyofthethreepreceding�inancialyears.

2. RESERVES:

NoamounthasbeenproposedbytheBoardtocarrytoanyreserves.

3. DIVIDEND:

TheCompanybeinginlossthisyearandinviewofrequirementsofregularfundsforoperations,yourdirectorsisunabletorecommendanydividendfortheFinancialYearendedonMarch31,2016.


SITASHREE


4. DEPOSITS:

TheCompanyhasneitheracceptednorinvitedanydepositfromthepublicandhencedirectivesissuedbyReserveBankofIndiaandtheprovisionsofChapterV(AcceptanceofdepositsbyCompanies)oftheCompaniesAct,2013andrulesframedthereunderarenotapplicablefortheyear.

HowevercompanyishavingunsecuredloanofRs.13458241/-ason31.03.2016fromDirectorsofthecompanyforwhichproperdeclarationhasbeenfurnishedbythemasrequiredunderRule2(viii)oftheCompanies(AcceptanceofDeposits)Rules,2014duringtheperiodunderreview.

5. MATERIALCHANGESANDCOMMITMENTSAFTERTHEENDOFFINANCIALYEARUPTOTHEDATEOFTHISREPORT:

Mrs.NehaAgrawal,Whole-timeDirectoroftheCompanyhasresignedasaDirectoronMay17,2016duetoherpre-occupancies. The Board thereby accepted her resignation on 06th of June, 2016 and places on record itsappreciationforthecontributionmadebyMrs.NehaAgrawalduringhertenureasDirector.

Mr.OmkarPrasadTiwari,IndependentDirectoroftheCompanyhasresignedasaDirectoronJune29,2016duetohispre-occupancies.TheBoardplacesonrecorditsappreciationforthecontributionmadebyMr.OmkarPrasadTiwariduringhistenureasDirector.

CARachanaRathi,Whole-timeemployeeoftheCompanyhasresignedasanInternalAuditoronJuly14,2016duetopersonal reasons. The Board thereby accepted her resignation w.e.f. July 14, 2016 and places on record itsappreciationforthecontributionmadebyMs.RachanaRathiduringhertenureasanInternalAuditor.

Mrs.AnshuGoyalhasbeenappointedastheadditionaldirectorbytheBoardofDirectorsvidetheirmeetingheldon31.08.2016andastheycanholdof�iceuptothedateofAGM,herappointmentneedstobecon�irmedintheAGM.Proposalforherre-appointmenthavebeenincludedintheNoticeofAnnualGeneralMeetingforyourapproval.

Exceptthanthemattersstatedabovenomaterialchangesandcommitmentsaffectingthe�inancialpositionofthecompanywhich have occurred between the end of the �inancial year of the company towhich the �inancialstatementsrelateandthedateofthisreport.

6. HIGHLIGHTS OF PERFORMANCE OF ASSOCIATE COMPANIES AND THEIR CONTRIBUTION TO OVERALLPERFORMANCEOFTHECOMPANY:

YourcompanyhasM/sAnoopFoodsLimitedasanAssociateCompanyu/sSection2(6)oftheCompaniesAct,2013andasondate. (Rs.InLacs)

Particulars 2016 2015

Incomefromoperation 10056.77 12966.23

Pro�it/lossbeforeprovidingDepreciationandInterest 4.70 17.43

Less:Depreciation 2.40 2.76

Interest 1.54 8.76

Pro�it/lossBeforeExceptional&ExtraordinaryItems 0.76 5.91

Less:ExceptionalItems - -

Pro�it/lossBeforeTaxation 0.76 5.91

Less:ProvisionforCurrentTaxation 0.96 1.82

DeferredTaxLiability (0.54) 0.65

Pro�it/LossafterTaxation (0.74) 4.74

TheAssociateCompanyhasnotcontributedtowardstheoverallperformanceoftheCompanyduringtheyearunderreview,

FurtherthatFormAOC-1isenclosedh/wthisreportasANNEXURE-II.


SITASHREE


Further,thecompanyisnothavinganySubsidiaryCompanyu/s2(87)oftheCompaniesAct,2013andhence,donotcallforanydisclosureforthesame.

7. EXTRACTOFTHEANNUALRETURN:

In compliance with section 92(3), section 134 (3) (a) and rule 11 of the Companies (Management andAdministration)Rules,2014theextractoftheannualreturninFormNo.MGT–9whichisannexedasANNEXUREIwiththisreportandshallformpartoftheBoard’sreport.

8. BOARDANDCOMMITTEEMEETINGS:

DuringtheyearunderreviewvariousmeetingsoftheBoardofDirectorsandCommitteeswasheldforvariouspurposeswhichareincompliancewiththeCompaniesAct,2013andSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015enteredintobytheCompanywithStockExchange(s).FurtherthedetailsofthevariousmeetingsoftheBoardandCommitteesarementionedintheReportonCorporateGovernancewhichisannexedasANNEXUREVwiththisreportandshallformpartoftheBoard’sreport.

9. DIRECTORS’RESPONSIBILITYSTATEMENT:

PursuanttoSection134(5)oftheCompaniesAct,2013,theDirectors,basedonrepresentationreceivedfromtheoperatingmanagementandafterdueenquiry,con�irminrespectoftheaudited�inancialaccountsfortheyear

stendedMarch31 ,2016:

a) Thatinpreparationoftheannualaccounts,theapplicableaccountingstandardshadbeenfollowedandthat therewerenomaterialdepartures;

b) That theDirectorshad, in consultationwith the StatutoryAuditors, selected suchaccountingpolicies and appliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogivea trueandfairviewofthestateofaffairsoftheCompanyfortheyearendedMarch31st,2016andthepro�itand lossAccountoftheCompanyforthatperiod;

c) Thatthedirectorshavetakenproperandsuf�icientcareforthemaintenanceofadequateaccountingrecordsin accordancewiththeprovisionsoftheCompaniesAct,2013forsafeguardingtheassetsoftheCompanyandfor preventinganddetectingfraudandotherirregularities;

d) ThattheDirectorshadpreparedtheannualaccountsonagoingconcernbasis;

e) Thatthedirectorshavelaiddowninternal�inancialcontrolstobefollowedbythecompanyandsuchinternal �inancialcontrolsareadequateandwereoperatingeffectively;and

f) Thatthedirectorshavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelaws andsuchsystemswereadequateandoperatingeffectively.

10.1CHANGESINDIRECTORSANDKEYMANAGERIALPERSONNEL:

DuringtheyearunderreportMr.DineshAgrawal,ChairmancumDirectoroftheCompanywouldretirebyrotationattheforthcomingAnnualGeneralMeetingoftheCompany.Proposalsfortheirre-appointmenthavebeenincludedintheNoticeofAnnualGeneralMeetingforyourapproval.

DuringtheyearunderreviewMr.R.K.Surana,CEOoftheCompanyhasresignedw.e.f.15.07.2015;theBoardplacesitsappreciationfortheservicesrenderedbyhimduringhistenure.

Mr.NeerajAnjane,CompanySecretaryandComplianceOf�iceroftheCompanyhavebeenresignedfromhispostduetohispre-occupancies.TheBoardtherebyacceptedhisresignationw.e.f.13.02.2016andplacesonrecorditsappreciationfortheservicesprovidedbyhimduringhistenureastheCompanySecretaryoftheCompany.

TheboardhasdulyappointedMs.ChitrangdaVishwakarmaasCompanySecretaryandComplianceOf�icerofthethCompanyvidetheirmeetingheldonFebruary13 ,2016.

AlltheintimationspertainingtotheappointmentsandresignationsmadeduringtheyearhasbeengiventoStockExchange(s)wherethesharesoftheCompanyarelistedandalsotherelevantrecordsaredulyupdatedwiththeRegistrarofCompanies,Gwalior(M.P.),whereverrequired.

10.2DISCLOSUREOFDECLARATIONFORDISQUALIFICATIONSBYDIRECTORS:


SITASHREE


AsperthedeclarationreceivedinForm‘DIR-8’pursuanttosection164(2)oftheCompaniesAct,2013andRule

14(1) of Companies (Appointment and Quali�ication of Directors) Rules, 2014, none of the Directors of the

Companyisdisquali�iedfrombeingappointmentasDirectors.

11.1APPOINTMENT/RE-APPOINTMENTOFINDEPENDENTDIRECTORS:

AlltheIndependentDirectorsarewellappointedintheBoardoftheCompanyincompliancewiththeCompanies

Act, 2013andSEBI (ListingObligations andDisclosureRequirements)Regulations, 2015entered intoby the

CompanywithStockExchange(s).Furtherthatall independentdirectorsshallholdof�iceforatermupto�ive

consecutiveyearsontheBoardofaCompany,butshallbeeligibleforreappointmentfornext�iveyearsonpassingof

aspecialresolutionbytheCompanyanddisclosureofsuchappointmentintheBoard’sreport.

11.2DISCLOSUREOFDECLARATIONFORINDEPENDENCEBYINDEPENDENTDIRECTORS:

TheCompanyhasreceiveddeclarationsfromalltheIndependentDirectorsoftheCompanycon�irmingthatthey

meetthecriteriaofindependenceundersub-section(6)ofsection149oftheCompaniesAct,2013.

11.3FAMILIARIZATIONPROGRAMMEFORINDEPENDENTDIRECTORS:

ThedirectorshadbeenintroducedtoalltheBoardmembersandtheseniormanagementpersonnelsuchasChief

Financial Of�icer, Company Secretary and Various Department heads individually to know their roles in the

organizationandtounderstandtheinformationwhichtheymayseekfromthemwhileperformingtheirdutiesasa

Director. And meeting had also been arranged for Independent Directors with aforesaid of�icials to better

understandthebusinessandoperationoftheCompany.Aspartofcontinuousupdatingandfamiliarizationwiththe

Company,everyIndependentDirectorhadbeentakenforvisitstothefactoryormanufacturingunitsandother

branchofthecompanywhereof�icialsofvariousdepartmentsapprisethemoftheoperationalandsustainability

aspectsoftheplantstoenablethemtohavefullunderstandingontheactivitiesoftheCompanyandinitiativestaken

onsafety,qualityetc.TheCompanymayalsocirculatenewsandarticlesrelatedtotheindustryfromtimetotime

andmayprovidespeci�icregulatoryupdates.ThecompanyhasalsoorganizedFamiliarizationProgrammefor

Independentdirectors.ThedetailsofsuchprogrammesforIndependentDirectorsarepostedonthewebsiteofthe

companyandcanbeaccessedathttp://sitashri.com/docs/policies/familiarization_prog_det.pdf.

11.4SEPARATEMEETINGOFINDEPENDENTDIRECTORS:

AsmandatedbyClauseVIIofScheduleIVoftheCompaniesAct,2013,aseparatemeetingofIndependentDirectorsthwasheldon14 ofMarch,2016.

11.5EVALUATIONBYINDEPENDENTDIRECTORS:

The IndependentDirectors in theirmeetinghasreviewedtheperformanceofNon-Independentdirectorsand

BoardasawholeincludingreviewingtheperformanceoftheChairpersonofthecompanytakenintoaccountthe

viewsofExecutiveDirectorsandNon-ExecutiveDirectors.Thesaidpolicy includingabovesaidcriteriaforthe

evaluationoftheBoard,individualdirectorsincludingindependentdirectorsandthecommitteeoftheboardhas

been laid down under Nomination, Remuneration and Evaluation Policy given in the Report on Corporate

GovernancewhichisannexedasANNEXUREVwiththisreportandshallformpartoftheBoard’sreport.

12. POLICIES:

Weseektopromoteandfollowthehighestlevelofethicalstandardsinallourbusinesstransactionsguidedbyour

valuesystem.TheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andCompaniesAct,

2013hasmandatedtheformulationofcertainpoliciesforalllistedcompanies.Allourcorporategovernancepolices

are available on ourwebsite (http://sitashri.com/index.php/shareholder-desk/policies). The policies are

reviewedperiodicallybytheboardandupdatedonneedandnewcompliancerequirement.


SITASHREE


NameofthePolicy BriefDescription WebLink

NominationRemunerationThispolicyformulatesthecriteriafordetermining http://sitashri.com/docs/

andEvaluationPolicy quali�ications,positiveattributes,independenceof policies/nomination.pdf

theDirectorsandrecommendstotheBoardaPolicy,

relatingtotheremunerationfortheDirectors,Key

ManagerialPersonnelandotheremployees

Policyfordetermining Thepolicyappliesfordisclosuresofmaterialevents http://sitashri.com/docs/policies/

materialityofevent affectingcompanyanditsassociates. policy_determining_materiality_

events.pdf

CorporateSocial ThepolicyoutlinestheCompany’sstrategytobring http://sitashri.com/docs/

ResponsibilityPolicy aboutapositiveimpactonsocietythroughprograms policies/csr_policy.pdf

relatingtohunger,poverty,education,healthcare

environmentandloweringitsresourcefootprint.

Policyondocument ThepolicyoutlinesthattheCompanyintendsto http://sitashri.com/docs/policies/

preservation safeguardsigni�icantdocumentsandpreservethem document_preservation.pdf.

toensuredurabilityofdocumentsincluding

documentsinelectronicform.

RelatedParty Thepolicyregulatesalltransactionsbetweenthe http://sitashri.com/docs/policies

TransactionsPolicy Companyanditsrelatedparties. /related_party.pdf

WhistleBlowerandVigil Thepolicyoutlinesthewhistleblowermechanism http://sitashri.com/docs/

MechanismPolicy fordirectorsandemployeestoreportconcerns policies/whistle_blower.pdf

aboutunethicalbehavior,actualorsuspected

fraudorviolationoftheCompany’scodeof

conductandethics.

Policyonpreventionof ThepolicythattheCompanyprovidesanequal http://sitashri.com/docs/

sexualharassmentat employmentopportunityandiscommittedto policies/policy_on_prevention.pdf

workplace creatingahealthyworkingenvironmentthat

enablesemployeestoworkwithoutfearof

prejudice,genderbiasandsexualharassment.

RiskManagementPolicy Thepolicythatbuildsastrongriskmanagement http://sitashri.com/docs/

culturetobetterunderstandariskpro�ileand policies/risk_management.pdf

tobettermanagetheuncertainties.

Policyfordetermining ThePolicyisframedtodeterminematerial http://sitashri.com/docs/policies/

MaterialSubsidiary subsidiary. policy_determining_material_

subsidiary.pdf

13.NOMINATIONANDREMUNERATIONCOMMITTEEANDSTAKEHOLDERSRELATIONSHIPCOMMITTEE:

The Board of Directors of your Company had constituted the Nomination and Remuneration Committee and

StakeholdersRelationshipCommitteewiththerequisitetermsofreferenceasrequiredunderSection178ofthe

CompaniesAct,2013andotherapplicableprovisionsthereof;inplaceofexistingRemunerationCommitteeand

ShareholderGrievanceCommitteerespectively.

Theconstitutionsofthesaidcommitteesareasunder:


SITASHREE


NominationAndRemunerationCommittee StakeholdersRelationshipCommittee

Name Designation Name Designation

Mr.OmkarPrasadTiwari* Chairman Mr.OmkarPrasadTiwari* Chairman

Mr.SantoshKumarGupta** Member Mr.SantoshKumarGupta** Member

Mr.SureshNarayanWagh Member Mr.SureshNarayanWagh Member

Mr.GaneshPrasadSharma Member Mr.GaneshPrasadSharma Member

Mr.AshishGoyal Member

*Resignedfromtheboardw.e.f.29.06.2016 *Resignedfromtheboardw.e.f.29.06.2016**AppointedasChairmanw.e.f.31.08.2016 **AppointedasChairmanw.e.f.31.08.2016

14.DISCLOSUREINTERMSOFNOMINATIONANDREMUNERATIONPOLICY:

TheBoardofDirectorsofyourCompanyhadconstitutedtheNominationandRemunerationCommitteewiththerequisitetermsofreferenceasrequiredundersection178oftheCompaniesAct,2013.ThesaidCommitteeframed,adoptedand recommended the "Nomination,Remuneration&EvaluationPolicy" and the saidpolicyhasbeenapprovedbytheBoard.TheDetailsoftheNominationandRemunerationCommitteeandthesaidPolicygivenintheReportonCorporateGovernancewhichisannexedasANNEXUREVwiththisreportandshallformpartoftheBoard’sreport.

15.1AUDITORS:

(i) StatutoryAuditors:

TheappointmentofM/sM.K.Shah&Associates,CharteredAccountants,auditorsoftheCompanywasapprovedbytheshareholdersintheAnnualGeneralMeetingheldfortheFinancialYear2013-14uptotheconclusionoftheAnnualGeneralMeeting for theFinancial Year2016-17.Proposal for their re-appointmenthavebeenincludedintheNoticeofAnnualGeneralMeetingforyourapproval.

(ii) CostAuditors:

M/s.M.P.Turakhia&Associates,CostAccountantswereappointedasCostAuditors for auditing the costrecords of your Company for the �inancial year 2015-16 by the Board of Directors on a consolidatedremuneration of Rs. 40,000/- only, the remuneration was recommended by the Audit Committee of theCompany.Further,theremunerationproposedtobepaidtothemrequiresrati�icationoftheshareholdersoftheCompanyandinviewsofthesametheproposalfortherati�icationofappointmentandremunerationhavebeenincludedintheNoticeofAnnualGeneralMeetingforyourapproval.

(iii) SecretarialAuditor:

PursuanttotheprovisionsofSection204oftheCompaniesAct,2013andTheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014,theCompanyhasappointedMr.PratikTripathipartnerofM/s.P.S.Tripathi&Associates,a�irmofCompanySecretariesinPracticetoundertaketheSecretarialAuditoftheCompany.

(iv) InternalAuditor:

TheCompanyhasappointedM/s.AmolJain&CompanyastheInternalAuditorofthecompanybutduetotheresignationofM/s.AmolJain&Company,CharteredAccountantsw.e.f.12.03.2016asstatedintheirletterofresignationdated12.03.2016duetopreoccupancy,theBoardofDirectorshasacceptedtheresignationon14.03.2016andfurther,theboardhasappointedCARachanaRathi,anwhole-timeemployeeoftheCompany,astheinternalauditoroftheCompanyw.e.f.12.03.2016totakechargeoftheInternalAuditfunctionasanInternalAuditoroftheCompany.

15.2AUDITOR’SREPORT/SECRETARIALAUDITREPORT:

TheobservationmadeintheAuditors'Reportreadtogetherwithrelevantnotesthereonareselfexplanatoryandhence,donotcallforanyfurthercommentsunderSection134oftheCompaniesAct,2013.AlsoaninformativedisclosurehasbeenprovidedregardingpaymentofundisputedIncomeTaxfortheFY2015-16whichwillbepaidalongwithinterestthereonsoon.Furthernofraudhasbeenreportedbytheauditorsundersubsection(12)ofsection143oftheCompaniesact,2013.


SITASHREE


Asrequiredundersection204(1)oftheCompaniesAct,2013theCompanyhasobtainedasecretarialauditreportwhichisannexedasANNEXUREVIIIwiththisreportandshallformpartoftheBoard’sreport.Further,certainobservationsmadeinthereport,whicharementionedbelowalongwithexplanationsthereto:

(a)CompanyhasobtainedListingpermissionfortheequitysharesissuedonpreferentialbasisinearlieryears, after31.03.2016but,tradingapprovalyettobeobtained:

- Companyisinprocesstoobtaintradingpermissionofthesaidshares.

(b)FilingofE-Formsw.r.t.changeinAuthorizedShareCapitalandallotmentinduringtheyearandpaymentof stampdutyyettobedone.

- TheCompanyisunderprocessto�iletherelatedformsandrelatedpaymentsanditwillbedoneattheearliest.

(c)Non�ilingofCostAuditReportfortheFinancialYear2014-15.

- TheCompanyisunderprocessto�iletherelatedformsanditwillbedoneattheearliest.

16. PARTICULARSOFLOANS,GUARANTEESORINVESTMENTSU/S186:

Thecompanyhasnotgivenanyloansorguaranteescoveredundertheprovisionsofsection186oftheCompanies

Act,2013.

Thedetailsoftheinvestmentsheldbycompanyaregiveninthenotestothe�inancialstatements.

17. PARTICULARSOFCONTRACTSORARRANGEMENTSWITHRELATEDPARTIESU/S188:

Therelatedpartytransactionsareenteredintobasedonconsiderationsofvariousbusinessexigencies,suchas

synergy inoperations, sectoral specializationand theCompany’s long-termstrategy for sectoral investments,

optimizationofmarketshare,pro�itability,liquidityandcapitalresourcesofitsgroupcompanies.

AlltransactionsenteredbytheCompanyduringthe�inancialyearwithrelatedpartieswereintheordinarycourse

ofbusinessandonanarm’slengthbasis.However,Companyhasnotenteredintoanycontractorarrangement

during theyear.During theyear, theCompanyhasentered into transactionswith relatedpartieswhichwere

materialinaccordancewithClause23oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,

2015andwiththepolicyoftheCompanyonRelatedPartyTransactions.Attentionofmembersisdrawntothe

disclosureoftransactionswithrelatedpartieshavebeenreportedinsubnote08and09ofNote“27”attachedtothe

accountswhichareformingpartofthisAnnualReport.Further,detailsoftransactionsenteredaspersection188of

theCompaniesAct,2013,arementioned inANNEXUREIIIwhich formspartof thisreport.Thecompanyhas

adoptedaPolicyonRelatedPartyTransactionwhichisavailableonthewebsiteoftheCompanyandcanbeaccessed

athttp://sitashri.com/docs/policies/related_party.pdf.

18. CONSERVATIONOFENERGY,TECHNOLOGYABSORPTIONANDFOREIGNEXCHANGEEARNINGSANDOUTGO:

(A)Conservationofenergy-

(i) Company ensures that themanufacturing operations are conducted in themannerwhereby optimum

utilizationandmaximumpossiblesavingsofenergyisachieved.

(ii) Nospeci�icinvestmenthasbeenmadeinreductioninenergyconsumption.

(iii) Astheimpactofmeasurestakenforconservationandoptimumutilizationofenergyarenotquantitative,its

impactoncostcannotbestatedaccurately.

(B)Technologyabsorption-

(i) Company'sproductsaremanufacturedmostlybyusingindigenoustechnologyandnooutsidetechnologyis

beingusedformanufacturingactivitiesotherthanmentionedin(iii)below;

(ii) Thecompanyhasnospeci�icresearch&developmentexpenditureduringtheyear;

(iii)ImportedTechnology–

(C) ForeignexchangeearningsandOutgo-


SITASHREE


S.No. PARTICULAR 2015-16(Rs.inLacs) 2014-15(Rs.inLacs)

1 ForeignExchangeEarning(CIFValueofgoodsExport) 7620.825559.28

2 ForeignExchangeOutGo 1586.43 1962.93

19.BUSINESSRISKMANAGEMENT:

TheBoardofDirectorsoftheCompanystatethatriskassociatedintheordinarycourseofbusinessisdulytakencareby theboardwhile takingbusinessdecisions.However, theconstitutionofRiskManagementCommittee isnotapplicabletothecompany,butcompanyhasframedthepolicyforRiskManagementanduploadedthesameonwebsiteofthecompany,athttp://sitashri.com/docs/policies/risk_management.pdf.

20.CORPORATESOCIALRESPONSIBILITY(CSR):

Intermsofsection135andScheduleVIIoftheCompaniesAct,2013,theBoardofDirectorsofyourCompanyhasconstituted a CSR Committee. The Committee comprises of three (3) directors under chairmanship of anIndependentDirector.ThefullparticularsofCSRCommitteeandCSRPolicydevelopedbytheCSRCommitteewhichisapprovedbytheBoardisgivenintheReportonCorporateGovernanceandAnnualReportonCSRActivitieswhichisannexedasANNEXUREVandANNEXUREIXwiththisreportandshallformpartoftheBoard’sreport.Additionally,the CSR Pol icy has been uploaded on the website of the Company and can be accessed athttp://sitashri.com/docs/policies/csr_policy.pdf.

CorporateSocialResponsibilityCommittee

Name Designation

Mr.OmkarPrasadTiwari* Chairman

Mr.AshishGoyal** Member

Mr.AnoopGoyal Member

Mr.SantoshKumarGupta***

*Resignedfromtheboardw.e.f.29.06.2016

**AppointedasChairmanw.e.f.31.08.2016.

***AppointedasMemberw.e.f.31.08.2016.

Further,theAnnualReportonCSRActivitiesisannexedherewithasAnnexureIX.

21.FORMALANNUALEVALUATION:

Pursuanttosection134(3)(p)ofCompaniesact2013andrule8(4)ofCompanies(Accounts)Rules,2014andclause17(10)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,theBoardhascarriedoutanevaluationofitsownperformance,thedirectorsindividuallyaswellastheevaluationofitsCommitteesasperthecriteria laiddownintheNomination,RemunerationandEvaluationpolicy.ThesaidpolicyincludingabovesaidcriteriafortheevaluationoftheBoard,individualdirectorsincludingindependentdirectorsandthecommitteeoftheboardhasbeengivenintheReportonCorporateGovernancewhichisannexedasANNEXUREVwiththisreportandshallformpartoftheBoard’sreport.

22.SIGNIFICANTANDMATERIALORDERSPASSEDBYTHEREGULATORSORCOURTS:

Duringtheyearunderreviewnosigni�icantandmaterialorderwaspassedbytheRegulatorsorCourts,whichmayaffectthegoingconcernstatusofthecompany.

23.INTERNALCONTROLSYSTEMSANDTHEIRADEQUACY:

TheCompanyhasaproperinternalcontrolsystem,whichprovidesadequatesafeguardsandeffectivemonitoringofthetransactionsandensuresthatallassetsaresafeguardedandprotectedagainstlossfromunauthorizeduseordisposition.

Moreover,theauditcommitteeoftheCompanycomprisingofallindependentdirectorsregularlyreviewstheauditplans,adequacyofinternalcontrolaswellascomplianceofaccountingstandards.


SITASHREE


AlsotheCFOhastheresponsibilityforestablishingandmaintaininginternalcontrolsfor�inancialreportingandthattheyalsohavetheoverallresponsibilitytoevaluatetheeffectivenessofinternalcontrolsystemsofthecompanypertainingto�inancialreportingandtheyhavetodisclosetotheauditorsandtheAuditCommittee,de�icienciesinthedesignoroperationofsuchinternalcontrols,ifany,ofwhichtheyareawareandthestepstheyhavetakenorproposetotaketorectifythede�iciencies.

24.AUDITCOMMITTEE:

TheAuditCommitteecomprisesoffour(4)directorsallofwhomareIndependentDirectors.

Name Designation


Mr.SantoshKumarGupta** Member

Mr.SureshNarayanWagh Member

Mr.GaneshPrasadSharma Member

*Resignedfromtheboardw.e.f.29.06.2016.**AppointedasChairmanw.e.f.31.08.2016.

TheBoardhasconsideredallrecommendationsoftheAuditCommitteeasandwhenprovidedduringtheyearunderreviewandhence,donotcallforanydisclosureunderSection177(8)oftheCompaniesAct,2013.

25.DISCLOSUREINTERMSOFVIGILMECHANISM:

TheCompanybelievesintheconductofitsaffairsinafairandtransparentmannerbyadoptinghigheststandardsofprofessionalism,honesty,integrityandethicalbehavior.TheCompanyiscommittedtodevelopacultureinwhicheveryemployeefeelsfreetoraiseconcernsaboutanypoororunacceptablepracticeandmisconduct.InordertomaintainthestandardsthecompanyhasadoptedandlaysdownthisWhistleBlowerPolicytoprovideaframeworktopromoteresponsibleandsecurewhistleblowing.

. TheBoardofDirectorsofyourCompanyhasadoptedtheVigilMechanismandWhistleBlowerPolicyincomplianceofCompaniesAct,2013andClause22oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.DetailsofthePolicyisgivenintheReportonCorporateGovernancewhichisannexedasANNEXUREVwiththisreportandshallformpartoftheBoard’sreportandthesaidpolicyhasalreadybeenuploadedonthewebsiteofthecompanyanditcanbeaccessedathttp://sitashri.com/docs/policies/whistle_blower.pdf.

26.COMMISSIONRECEIVEDBYDIRECTORSFROMHOLDINGANDSUBSIDIARY:

DuringtheyearunderreviewneithertheManagingDirectornorWhole-timeDirectorisinreceiptofcommissionfrom the companyandalsohasnot receivedany remunerationor commission fromanyholdingor subsidiarycompanyofcompanyu/s197(14).

27.MANAGERIALREMUNERATION:

DisclosuresPursuanttoRule5(1)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014.

1. Theratiooftheremunerationofeachdirectortothemedianremunerationoftheemployeesofthecompanyfor the�inancialyear;

S.No.Name Designation CTC MedianEmployeeSalary Ratio

1. DineshAgrawal Chairman - - -

2. AshishGoyal ManagingDirector 3600000 123401 29.17:1

3. AnoopGoyal Whole-timeDirector 3600000 123401 29.17:1

4. NehaAgrawal* Whole-timeDirector 600000* 123401 4.86:1

5. GaneshPrasadSharma IndependentDirector - - -

6. OmkarPrasadTiwari** IndependentDirector - - -

7. SureshNarayanWagh IndependentDirector - - -

8. SantoshKumarGupta IndependentDirector - - -


SITASHREE


*Salarygivenfor6monthsw.e.f.dateofappointmenti.e.01.10.2015.*Resignedw.e.f.17.05.2016**Resignedw.e.f.29.06.2016

2. Thepercentageincreaseinremunerationofeachdirector,ChiefFinancialOf�icer,ChiefExecutiveOf�icer,CompanySecretaryorManager,ifany,inthe�inancialyear;

S.No. Name Designation Remuneration Remuneration Change Percent paidinFY paidinFY age(%) 2014-15 2015-16

1. DineshAgrawal Chairman 2948387 - - -

2. AshishGoyal ManagingDirector 2941935 3600000 658065 22.36

3. AnoopGoyal Whole-timeDirectorandCFO 2700000 3600000 900000 33.33

4. NehaAgrawal* Whole-timeDirector 854838 600000* 254838 29.81

5. GaneshPrasadSharma IndependentDirector - - - -

6. OmkarPrasadTiwari** IndependentDirector - - - -

7. SureshNarayanWagh IndependentDirector - - - -

8. SantoshKumarGupta IndependentDirector - - - -

9. NeerajAnjane CompanySecretary 40760*** 176228**** 135468 332.3

10. Chitrangda***** CompanySecretary - 23826 - - Vishwakarma

*Resignedw.e.f.17.05.2016*Salarygivenfor6monthsw.e.f.dateofappointmenti.e.01.10.2015.**Resignedw.e.f.29.06.2016***Salarygivenfor3months.****Salarygivenupto13.02.2016i.e.dateofresignation*****Appointedw.e.f.13.02.2016

Thecompanyishavingnetlossduringthecurrent�inancialyeari.e.2015-16.TheremunerationoftheKMP'saredulyreviewedonannualbasiskeepinginmindthetenure,thepastperformanceandcurrentperformance.

3. Thepercentageincreaseinthemedianremunerationofemployeesinthe�inancialyearwas30.37%;

4. Thenumberofpermanentemployeesontherollsofcompanyason31.03.2016was93;

5. AveragePercentileincreasealreadymadeinthesalariesofemployeesotherthanthemanagerialpersonnelinthelast�inancialyearanditscomparisonwiththepercentileincreaseinthemanagerialremunerationandjusti�icationthereof;

Remuneration Remuneration %Changein Remuneration Remuneration %Changein paidto paidto remuneration paidto paidto remuneration employees employees paidto managerial managerial paidto excluding excluding employees personnelfor personnelfor managerial managerial managerial excluding theFY theFY2015-16 personnel personnelfor personnelfor managerial 2014-15 theFY2014-15 theFY2015-16 personnel

18122950 18403060 1.54 10410982 8343056 -19.86

Furthertherearenoexceptionalcircumstancesforincreaseinthemanagerialremuneration.

6. DuringtheyearunderreviewnovariablecomponentofremunerationavailedbyDirectorsoftheCompany;

7. Itisherebyaf�irmedthattheremunerationpaidbytheCompanytoitsDirectors,KMP’sandEmployeesduring theyearunderreviewisaspertheNomination,Remuneration&EvaluationPolicyofthecompany.


SITASHREE


28.EQUITYSHARESWITHDIFFERENTIALVOTINGRIGHTS:

ThecompanyhasnotissuedanyshareswithdifferentialvotingrightsandaccordinglytheprovisionsofSection43readwithRule4(4)oftheCompanies(ShareCapitalandDebentures)Rules,2014oftheCompaniesAct,2013andrulesframedthereunderarenotapplicablefortheyear.

29.DETAILSOFSWEATEQUITYSHARES:

ThecompanyhasnotissuedanysweatequitysharesandaccordinglytheprovisionsofSection54readwithRule8(13)oftheCompanies(ShareCapitalandDebentures)Rules,2014oftheCompaniesAct,2013andrulesframedthereunderarenotapplicablefortheyear.

30.DETAILSOFEMPLOYEESSTOCKOPTIONSCHEME:

ThecompanyhasnotgrantedstockoptionsandaccordinglytheprovisionsofSection62(1)(b)readwithRule12(9)oftheCompanies(ShareCapitalandDebentures)Rules,2014oftheCompaniesAct,2013andrulesframedthereunderarenotapplicablefortheyear.

31.DISCLOSUREOFVOTINGRIGHTSNOTEXCERCISED:

Thecompanyhasnotmadeanyprovisionofmoneyforthepurchaseof,orsubscriptionfor,sharesinthecompanyoritsholdingcompany,ifthepurchaseof,orthesubscriptionfor,thesharesbytrusteesisforthesharestobeheldbyorforthebene�itoftheemployeesofthecompanyandaccordinglytheprovisionsofChapterIV(ShareCapitalandDebentures)oftheCompaniesAct,2013andrulesframedthereunderarenotapplicablefortheyear.

32.EMPLOYEES:

Employee’srelationcontinuedtobecordialthroughouttheyear.YourDirectorswishtoplaceonrecordtheirsincereappreciationfortheexcellentspiritwithwhichtheentireteamoftheCompanyworkedatfactoryandof�icepremisesandachievedcommendableprogress.

Duringtheyearunderreview,noneoftheemployeehasreceivedremunerationofRs.EightLakhandFiftyThousandpermonthorRs.OneCroreTwoLacsperyearorataratewhich,intheaggregate,isinexcessofthatdrawnbythemanagingdirectororwhole-timedirectorormanagerandholdsbyhimselforalongwithhisspouseanddependentchildren, not less than two percent of the equity shares of the company pursuant to Section 197 (12) of theCompanies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of ManagerialPersonnel)Rules,2014andhence,donotcall forany furtherdetailsreferredto inRule5(3)of theCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014.

33.CORPORATEGOVERNANCEANDMANAGEMENTDISCUSSION&ANALYSISREPORT:

ReportonCorporateGovernanceandManagementDiscussionandAnalysisReport,intermsofClause34readwithSchedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are annexed asANNEXUREVandANNEXUREIVrespectivelywiththisreportandshallformpartoftheBoard’sreport.

Acerti�icatefromtheAuditorscon�irmingcompliancewiththeconditionsofCorporateGovernanceisalsoannexedasANNEXUREVII.

34.PAYMENTOFLISTINGFEES:

Annuallistingfeefortheyear2016-17hasbeenpaidbytheCompanytoBSEandNSE.

35.DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE (PREVENTION,PROHIBITIONANDREDRESSAL)ACT,2013:

TheBoardofDirectorsoftheCompanyhasapprovedandadoptedthe“PolicyonPreventionofSexualHarassmentatWorkplace”toprovideequalemploymentopportunityandiscommittedtoprovideaworkenvironmentthatensureseverywomanemployeeistreatedwithdignityandrespectandaffordedequitabletreatment.TheCompanyhasformed an Internal Complaints Committee where employees can register their complaints against sexualharassment.ThisissupportedbytheSexualHarassmentPolicywhichensuresafreeandfairenquiryprocesswithcleartimelines.

36.PAYMENTOFDEPOSITORYFEES:

AnnualCustody/Issuerfeefortheyear2016-17hasbeenpaidbytheCompanytoNSDLandCDSL.


SITASHREE


37.DEMATSTATUS:

Thecompany’ssharesarepresentlyheldinbothelectronicandphysicalmodes.

38.DETAILSOFSUBSIDIARY/JOINTVENTURES/ASSOCIATECOMPANIES:

SubsidiaryCompany:

TheCompanyneitherhasanySubsidiaryCompanyasondateofthisreportasde�inedu/s2(87)oftheCompaniesAct,2013noranycompanybecameorceasedtobeitsSubsidiaryCompanyduringtheyearunderreview.

AssociateCompany:

YourCompanyhasM/sAnoopFoodsLimitedasanAssociateCompanyasondateofthisreportasde�inedu/s2(6)oftheCompaniesAct,2013duringtheyearunderreview.FurtherthatFormAOC-1isenclosedh/wthisreportasANNEXURE-II

JointVentures:

TheCompanyneitherhasanyJointVenturesasondateofthisreportnoranycompanybecameorceasedtobeinJointVentureduringtheyearunderreview.

39.TRANSFERTOINVESTORSEDUCATION&PROTECTIONFUND:

Aspertheprovisionsofsection125of theCompaniesAct,2013andasperrule3of the InvestorEducation&Protectionfund(awarenessandprotectionofinvestors)Rules,2001,theCompanyhastransferredtheamountofRs.6000.00/-lyingintheRefundAccountfortheyear2008-09afterexpiryofSeven(7)yearsfromthedateoftransfertothesaidA/c.

40.CODEOFFAIRDISCLOSUREOFUNPUBLISHEDPRICESENSITIVE INFORMATIONANDCODEOFCONDUCTUNDERSEBI(PROHIBITIONOFINSIDERTRADING)REGULATIONS,2015

PursuanttoRegulation8ofSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015theBoardofDirectorshasformulatedandadoptedthe"CodeofPracticesandProceduresforFairDisclosureofUnpublishedPriceSensitiveInformation"(CodeofFairDisclosure)oftheCompany.

TheBoardhasalsoformulatedandadopted"CodeofConductforProhibitionofInsidertrading"(CodeofConduct)oftheCompanyasprescribedunderRegulation9ofthesaidRegulations.

41.ACKNOWLEDGEMENTS:

YourDirectorswishtoplaceonrecordtheirappreciationforandgratitudetotheUnionBankofIndia,StateBankofIndia,CanaraBank,AndhraBank,AxisBankfortheirvaluablesupportandco-operation.

Yourdirectorsalsowishtoplaceonrecordtheirappreciationofthewholeheartedandcontinuedsupportextendedbytheshareholders,investors,employeesandworkersofthecompanywhichhadalwaysbeenasourceofstrengthfortheCompany.

ForandonbehalfoftheBoardofDirectorsof

SitaShreeFoodProductsLimited

Sd/- Sd/-

AshishGoyal AnoopGoyal

Indore ManagingDirector Wholetimedirector&CFO

Date:31.08.2016 DIN:00144899 DIN:01887409


SITASHREE


ANNEXURE-I

FORMNO.MGT-9EXTRACTOFANNUALRETURN

stAsonthe�inancialyearendedon31 March,2016[Pursuanttosection92(3)oftheCompaniesAct,2013andrule12(1)of

TheCompanies(ManagementandAdministration)Rules,2014]

I.REGISTRATIONANDOTHERDETAILS:

i) CIN : L15314MP1996PLC010741

ii) RegistrationDate : 17/04/1996

iii) NameoftheCompany : SitaShreeFoodProductsLimited

iv) Category/Sub-CategoryoftheCompany : PublicCompany/LimitedbyShares

v) AddressoftheRegisteredof�iceandcontactdetails : 332/4/2,R.D.UdyogNagar,Palda,Indore,M.P.452020 PhNo.0731-2439901-03

vi) WhetherlistedcompanyYes/No : Yes

vii) Name,AddressandContactdetailsofRegistrar : M/s.AnkitConsultancyPrivateLimited andTransferAgent,ifany 60,ElectronicComplex,Pardeshipura,Indore(M.P.) 452010 Tel.:+91-731-2551745-46,3198601-602 Fax:+91-731-4065798 Email–[email protected]

II.PRINCIPALBUSINESSACTIVITIESOFTHECOMPANYAllthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:-

S. NameandDescriptionofmain NICCodeofthe %tototalturnoverofNo. products/services Product/service thecompany

1 ChanaDal 15313 41.10%

2 MasoorDal 15313 13.50%

III.PARTICULARSOFHOLDING,SUBSIDIARYANDASSOCIATECOMPANIES–

S. NameandAddress CIN/GLN Holding/ %of ApplicableNo. oftheCompany Subsidiary/ shares Section Associate held

1. M/sAnoopFoodsLimited,85, U15143MP2001PLC014792 Associate 33.33% Section2(6)of JankiNagarMainRoad,Indore theCompanies MP452001 Act,2013

IV.SHAREHOLDINGPATTERN(EquityShareCapitalBreakupaspercentageofTotalEquity)

i) Category-wiseShareHolding


SITASHREE


Categoryof No.ofSharesheldatthe No.ofSharesheldatthe %Shareholders beginningoftheyear endoftheyear Change

Demat Physical Total %of Demat Physi- Total %of during Total cal Total year Shares Shares

A.Promoters

(1)Indian

a)Individual/HUF 7358291 2293070 9651361 34.67 9665839 - 9665839 34.73 0.06

b)CentralGovt. - - - - - - - - -

c)StateGovt.(s) - - - - - - - - -

d)BodiesCorp. 1532536 1564707 3097243 11.13 3097243 - 3097243 11.13 -

e)Banks/FI - - - - - - - - -

f)AnyOther…. - - - - - - - - -

Sub-total(A)(1):- 8890827 3857777 12748604 45.80 12763082 - 12763082 45.86 0.06

(2)Foreign - - - - - - - - -

a)NRIs-Individuals - - - - - - - - -

b)Other–Individuals - - - - - - - - -

c)BodiesCorp. - - - - - - - - -

d)Banks/FI - - - - - - - - -

e)AnyOther…. - - - - - - - - -

Sub-total(A)(2):- - - - - - - - - -

Totalshareholding 8890827 3857777 12748604 45.80 12763082 - 12763082 45.86 0.06ofPromoter(A)=(A)(1)+(A)(2)

B.PublicShareholding

1.Institutions

a)MutualFunds - - - - - - - - -

b)Banks/FI - - - - - - - - -

c)CentralGovt - - - - - - - - -

d)StateGovt(s) - - - - - - - - -

e)VentureCapitalFunds - - - - - - - - -

f)InsuranceCompanies - - - - - - - - -

g)FIIs - - - - - - - - -

h)ForeignVentureCapital - - - - - - - - -

Funds - - - - - - - - -

i)Others(specify) - - - - - - - - -

Sub-total(B)(1):- - - - - - - - - -

2.Non-Institutions

a)BodiesCorp.


SITASHREE


i)Indian 7747535 - 7747535 27.83 7604457 - 7604457 27.32 -0.51

ii)Overseas - - - - - - - - -

b)Individuals

i)IndividualshareholdersholdingnominalsharecapitaluptoRs.1Lakh 4583811 10 4583821 16.47 4899092 10 4899102 17.60 1.13

ii)IndividualshareholdersholdingnominalsharecapitalinexcessofRs1Lakh 2620887 - 2620887 9.42 2440409 - 2440409 8.77 -0.65

c)Others

ClearingMembers 16963 - 16963 0.06 18503 - 18503 0.07 0.01

NRI's/OCB's 116364 - 116364 0.42 108621 - 108621 0.39 -0.03

Sub-total(B)(2):- 15085560 10 15085570 54.20 15071082 10 15071092 54.14 -0.05

TotalPublic 15085560 10 15085570 54.20 15071082 10 15071092 54.14 -0.05Shareholding(B)=(B)(1)+(B)(2)

Sharesheldby - - - - - - - - -custodianforGDRs&ADRs

GrandTotal 23976387 3857787 27834174 100 27834164 10 27834174 100 -(A+B+C)

(ii)ShareholdingofPromoters

S. Shareholder’sName Shareholdingatthe Shareholdingat %changeNo. beginningoftheyear theendoftheyear inshare No.of %of %ofShares No.of %oftotal %of holding Shares total Pledged/ Shares Sharesof Shares during Shares encumbered the Pledged/ theyear ofthe tototal company encum- company shares beredto totalshares

1 AshishGoyal 3206403 11.52 90.17 3206403 11.52 90.17 -

2 R.J.MarketingLtd. (FormerlyKnownas SitaShreeMarketingLtd.) 1588957 5.71 - 1588957 5.71 - -

3 AnoopFoodsLtd. 1508286 5.42 100 1508286 5.42 100 -

4 RuchiAgarwal 1195035 4.29 - 1195035 4.29 - -

5 AnoopGoyal 1129428 4.05 69.83 1143906 4.11 68.95 -0.06

6 ManishAgarwal 1043000 3.75 - 1043000 3.75 - -

7 RupeshAgarwal 715265 2.57 - 715265 2.57 - -

8 DineshChandraAgrawalHUF 448500 1.61 100 448500 1.61 100 -

9 UshaDeviAgarwal 679300 2.44 - 679300 2.44 - -

10 DineshAgarwal 282430 1.01 100 282430 1.01 100 -

11 RajababuJagdishChandra 284900 1.02 - 284900 1.02 - - AgrawalHUF

12 RajababuAgrawal 239500 0.86 - 239500 0.86 - -

13 ManishaAgarwal 150700 0.54 - 150700 0.54 - -

14 ManishKumarGanesh 145700 0.52 - 145700 0.52 - - Chandra-HUF

15 NehaAgarwal 131200 0.47 100 131200 0.47 100 -

Total 12748604 45.80 47.46 12763082 45.85 47.41 -0.06


SITASHREE


(iii)ChangeinPromoters’Shareholding(pleasespecify,ifthereisnochange)

Shareholdingatthe CumulativeShareholding beginningoftheyear duringtheyear

NameofShareholder No.ofshares %oftotalshares No.ofshares %oftotalsharesof ofthecompany thecompany

AnoopGoyal

AtthebeginningoftheYear 1129428 4.05 1129428 4.05

Purchasedon17/08/2015 2100 0.0075 1131528 4.0652

Purchasedon18/08/2015 2600 0.0093 1134128 4.0745

Purchasedon19/08/2015 3000 0.0108 1137128 4.0853

Purchasedon20/08/2015 1201 0.0043 1138329 4.0896

Purchasedon21/08/2015 1850 0.0066 1140179 4.0962

Purchasedon24/08/2015 1250 0.0044 1141429 4.1007

Purchasedon05/10/2015 1500 0.0054 1142929 4.1061

Purchasedon09/10/2015 977 0.0035 1143906 4.11

AttheendoftheYear 1143906 4.11

(iv)ShareholdingPatternoftoptenShareholders(otherthanDirectors,PromotersandHoldersofGDRsandADRs):


NameofShareholder No.ofshares %oftotalshares No.ofshares %oftotalsharesof ofthecompany thecompany

SynergyCosmetics(EXIM)Ltd.


ChangeduringtheYear - - - -


OregonCommercialLtd.




SunandShineworldwideLtd.




InterfaceFinancialServicesPvt.Ltd.




ClassicFilamentsLtd.





SITASHREE


CashePowerToolsPvt.Ltd.




SynergyInfrastructuresLtd.




SimplexTrading&AgenciesLtd.




HimanshuChandrakantAshar


Purchasedon17/04/2015 5755 0.0206 249710 0.90

Purchasedon24/04/2015 1340 0.0048 251050 0.91

Purchasedon05/06/2015 9000 0.0323 260050 0.93

Purchasedon03/07/2015 7200 0.0258 267250 0.96

Purchasedon04/03/2016 750 0.0027 268000 0.96


DaffodilLaboratoriesPvt.Ltd.





SITASHREE


(v)ShareholdingofDirectorsandKeyManagerialPersonnel:


NameofShareholder No.ofshares %oftotalshares No.ofshares %oftotalshares ofthecompany ofthecompany

DineshAgrawal

Chairman&ExecutiveDirector


TransactionsDuringtheYear - - - -

AttheendoftheYear - - 282430 1.01

AshishGoyal

ManagingDirector(Executive)




AnoopGoyal

Whole-timeDirector(Executive)

&ChiefFinancialOf�icer


TransactionsDuringtheYear* 14478 0.06 1143906 4.11


NehaAgrawal**

Whole-timeDirector(Executive)




OmkarPrasadTiwari*** NILHoldingThroughoutTheYearIndependentDirector

GaneshPrasadSharma NILHoldingThroughoutTheYearIndependentDirector

SantoshKumarGupta NILHoldingThroughoutTheYearIndependentDirector

SureshNarayanWagh NILHoldingThroughoutTheYearIndependentDirector

ChitrangdaVishwakarma NILHoldingThroughoutTheYearCompanySecretary

*Forchangesduringtheyearkindlyreferthepointon(iii)above**Resignedw.e.f.17.05.2016 ***Resignedw.e.f.29.06.2016


SITASHREE


V.INDEBTEDNESS

IndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment.

SecuredLoans Unsecured Depo- Total excludingdeposits Loans sits Indebtedness

Indebtednessatthebeginningofthe�inancialyear

i)PrincipalAmount 1,450,283,338.00 203294300 - 1653577638

ii)Interestduebutnotpaid 1977172 - - 1977172

iii)Interestaccruedbutnotdue - -

Total(i+ii+iii) 1,452,260,510.00 203294300 - 1655554810

ChangeinIndebtednessduringthe�inancialyear

Addition 423859474.17 - - 423859474.17

Reduction - 67834081 - 67834081

NetChange 423859474.17 67834081 - 491693555.17

Indebtednessattheendofthe�inancialyear

i)PrincipalAmount 1,874,689,441.17 135,460,219 - 2010149660.17

ii)Interestduebutnotpaid 1430543 - - 1430543

iii)Interestaccruedbutnotdue - - - -

Total(i+ii+iii) 1,876,119,984.17 135,460,219 - 2011580203.17

VI.REMUNERATIONOFDIRECTORSANDKEYMANAGERIALPERSONNEL

A.REMUNERATIONTOMANAGINGDIRECTOR,WHOLE-TIMEDIRECTORSAND/ORMANAGER:

S.No.ParticularsofRemuneration NameofMD/WTD/Manager TotalAmount

DineshAgrawal AshishGoyal AnoopGoyal NehaAgrawal*

1 Grosssalary

(a)Salaryasperprovisions containedinsection17(1) oftheIncome-taxAct,1961 - 3600000 3600000 600000 7800000

(b)Valueofperquisitesu/s 17(2)Income-taxAct,1961 - - - - -

(c)Pro�itsinlieuofsalary undersection17(3) Income-taxAct,1961 - - - - -

2 StockOption - - - - -

3 SweatEquity - - - - -

4 Commission - - - - - -as%ofpro�it - - - - - -Others,specify… - - - - -

5 Others,pleasespecify - - - - -

Total(A) 3600000 3600000 600000 7800000

CeilingaspertheAct Rs.1.2Cr.

*Salarygivenfor6monthsw.e.f.dateofappointmenti.e.01.10.2015.


SITASHREE


B. REMUNERATIONTOOTHERDIRECTORS:

S.No.ParticularsofRemuneration NameofDirectors TotalAmount

Mr.Ganesh *Mr.Omkar Mr.Suresh Mr.Santosh PrasadTiwari PrasadTiwari NarayanWagh KumarGupta

1 IndependentDirectors

• Feeforattendingboard/ committeemeetings 21000 25000 21000 21000 88000

• Commission - - - - -

• Others,pleasespecify - - - - -

Total(1) 21000 25000 21000 21000 88000

2 OtherNon-ExecutiveDirectors

• Feeforattendingboard/ committeemeetings - - - - -

• Commission - - - - -

• Others,pleasespecify - - - - -

Total(2) - - - - -

Total(B)=(1+2) 21000 25000 21000 21000 88000

TotalManagerialRemuneration 88000

OverallCeilingaspertheAct 100000** perDirector

*Resignedw.e.f.29.06.2016

C. REMUNERATIONTOKEYMANAGERIALPERSONNELOTHERTHANMD/MANAGER/WTD

S.No.ParticularsofRemuneration KeyManagerialPersonnel TotalAmount

Company CompanySecretary CFO CEO Secretary Chitrangda AnoopGoyalRajendraKumar NeerajAnjane# Vishwakarma## Surana###1 Grosssalary (a)Salaryasperprovisions 176228/- 23826/- - 343002/- 543056/- containedinsection17(1) oftheIncome-taxAct,1961 (b)Valueofperquisitesu/s - - - - - 17(2)Income-taxAct,1961 (c)Pro�itsinlieuofsalary - - - - - undersection17(3) Income-taxAct,19612 StockOption - - - - -3 SweatEquity - - - - -4 Commission - - - - - -as%ofpro�it - - - - - -others,specify… - - - - -5 Others,pleasespecify - - - - - Total(C) 176228/- 23826/- - 343002/- 543056/-


SITASHREE


#Resignedw.e.f.13.02.2016.##Appointedw.e.f.13.02.2016.###Resignedon15.07.2015.

VII.PENALTIES/PUNISHMENT/COMPOUNDINGOFOFFENCES:

Type Sectionofthe Brief DetailsofPenalty Authority Appealmade,ifany CompaniesAct Description /Punishment/ [RD/NCLT (giveDetails) Compoundingfees /COURT] imposed

A.COMPANY

Penalty - - - - -

Punishment - - - - -

Compounding - - - - -

B.DIRECTORS

Penalty - - - - -



C.OTHEROFFICERSINDEFAULT

Penalty - - - - -



ForandonbehalfoftheBoardofDirectorsof SitaShreeFoodProductsLimited Sd/- Sd/- AshishGoyal AnoopGoyalIndore ManagingDirector Wholetimedirector&CFODate:31.08.2016 DIN:00144899 DIN:01887409

ANNEXUREII

FORMNO.AOC-1(Pursuantto�irstprovisotosub-section(3)ofsection129readwithrule5ofCompanies(Accounts)Rules,2O14)Statementcontainingsalientfeaturesofthe�inancialstatementofsubsidiariesorassociatecompaniesor

jointventures

Part“A”:Subsidiaries

(NotapplicabletotheCompanyasCompanyisnothavinganySubsidiaryCompany)

Part“B”AssociateandJointVentures

TheCompanyhasnotenteredintojointventurewithanyentity;howeveryourcompanyishavingM/sAnoopFoodsLimitedasanAssociateCompany.Thedetailsarehereinmentionedbelow:

StatementpursuanttoSection129(3)oftheCompaniesAct,2013relatedtoAssociateCompanies

(AmountinRs.)

NameofAssociates M/sAnoopFoodsLimited

1. LatestauditedBalanceSheetDate 31.03.2016

2. DateonwhichtheAssociatewasassociatedoracquired 18.11.2014

3. SharesofAssociateheldbytheCompanyontheyearend

No. 50000

AmountofInvestmentinAssociate 500000

ExtentofHolding(inpercentage) 33.33%

4. Descriptionofhowthereissigni�icantin�luence M/sSitaShreeFoodProductsLimitedis holdingcontrolof33.33%ofthetotalshare capitalofM/sAnoopFoodsLimited.

5. Reasonwhytheassociateisnotconsolidated N.A.

6. Networthattributabletoshareholdingasperlatest 2529211.38 auditedBalanceSheet

7. Pro�itorLossfortheYear (74587)

i. ConsideredinConsolidation (74587)

ii. NotConsideredinConsideration -

1.Namesofassociatesorjointventureswhichareyettocommenceoperations.NIL2.Namesofassociatesorjointventureswhichhavebeenliquidatedorsoldduringtheyear.NIL

For:M.K.Shah&Associates ForandonbehalfoftheBoardofDirectorsofCharteredAccountants SitaShreeFoodProductsLimited(Regn.No.002077C) Sd/- Sd/- Sd/-(M.K.Shah) AshishGoyal AnoopGoyalProprietor ManagingDirector Wholetimedirector&CFOM.NO.400-71199 DIN:00144899 DIN:01887409

Sd/- Sd/- DineshAgrawal ChitrangdaVishwakarmaIndore ChairmancumDirector CompanySecretaryDate:31.08.2016 Din:00348853 M.No.A41337


SITASHREE


ANNEXUREIII

FORMNO.AOC-2(Pursuanttoclause(h)ofsub-section(3)ofsection134oftheActandRule8(2)oftheCompanies

(Accounts)Rules,2014)Formfordisclosureofparticularsofcontracts/arrangementsenteredintobythecompanywithrelatedpartiesreferredtoinsub-section(1)ofsection188oftheCompaniesAct,2013includingcertainarmslengthtransactionsunderthirdprovisothereto

1. Detailsofcontractsorarrangementsortransactionsnotatarm’slengthbasis

(a)Name(s)oftherelatedpartyandnatureofrelationship Nil

(b)Natureofcontracts/arrangements/transactions Nil

(c)Durationofthecontracts/arrangements/transactions Nil

(d)Salienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany Nil

(e)Justi�icationforenteringintosuchcontractsorarrangementsortransactions Nil

(f)date(s)ofapprovalbytheBoard Nil

(g)Amountpaidasadvances,ifany: Nil

(h)Dateonwhichthespecialresolutionwaspassedingeneralmeetingasrequiredunder�irstprovisotosection188 Nil

2. Detailsofmaterialcontractsorarrangementortransactionsatarm’slengthbasis

(a)Name(s)oftherelatedpartyand Sr.No. NameofRelatedParty Relationshipnatureofrelationship

1. M/sR.J.MarketingLimited Companyinwhichrelative (Formerlyknownas isDirector M/sSitaShreeMarketingLtd.)

2. M/sM.R.AgroOverseasLimitedCompanyinwhichrelative (Formerlyknownas isDirector M/sSitaShreeOverseasLtd.)

3. M/sUshaDallMill ProprietorshipofRelative

4. M/sKashiyaExportsPvt.Ltd. GroupCompany

5. M/sAnoopFoodsLimited AssociateCompany

6. M/sChandrikaTrading ProprietorshipofDirector Company

(b)Natureofcontracts/arrangements/ ForSale,PurchaseorSupplyofanygoodsorproducts;leasing,sellingtransactions orotherwisedisposingof,orbuyingpropertyofanykindandavailing orrenderingofanyservicesoranyotherpurposeasmayberequired.

(c)Durationofthecontracts/arrangements/transactions FortheYearunderreview.

(d)Salienttermsofthecontractsor Purchase,SaleorSupplyofanygoodsorproductsonarm’slengtharrangementsortransactionsincludingthe basisandinordinarycourseofbusinessattheprevailingmarketvalue,ifany: priceatthetimeoftransaction.

(e)Date(s)ofapprovalbytheBoard,ifany: N.A.

(f)Amountpaidasadvances,ifany: Nil

ForandonbehalfoftheBoardofDirectorsof


Sd/- Sd/- AshishGoyal AnoopGoyalIndore ManagingDirector Wholetimedirector&CFODate:31.08.2016 DIN:00144899 DIN:01887409


SITASHREE


ANNEXUREIV

MANAGEMENTDISCUSSIONANDANALYSIS

WehavepleasureinsubmittingtheManagementDiscussion&AnalysisReportonthebusinessoftheCompany:-

INDUSTRYSTRUCTUREANDDEVELOPMENTS:

Demandconditionsinthebrandedpackagedfoodsindustryremainedsluggishduringtheyearwithconsumerscurbingdiscretionaryspending.YourCompanysustaineditspositionasoneofthefastestgrowingbrandedpackagedfoodsbusinessesinthecountryleveragingarobustportfolioofbrands,differentiatedrangeofproductscustomizedtoregionaltastesandpreferencesalongwithenhancedproductvisibilityandavailabilityinkeymarkets.

AccordingtoFoodandAgricultureOrganizationsofUnitedNationsreporti.e.FoodOutlookonOctober,2015, Indiaisthirdinproductionofwheatandglobalfoodconsumptionofwheatissettoreach88.9milliontonesin2015-16,up-7.2percentfromthecurrentseason.

AccordingtoareportofDepartmentofFood&PublicDistributionofIndiaConsumptionPatternofEdibleOilsinIndiaseveralpocketsintheSouthhaveapreferenceforcoconutoil.Inhabitantsofnorthernplainarebasicallyconsumersoffats and therefore prefer Vanaspati, a termused to denote a partially hydrogenated edible oilmixture of oils likesoyabean,sun�lowerandricebranoils.

AccordingtoareportofSmarcube.com,theyear2015witnessedsomevolatilemovementsinvegetableoilprices,withpalmoilpricesfallingtonewlows.InDecember2015,theFAOVegetableOilPriceIndexinchedup2.9points(2.1%M-o-M)to141.1,primarilydrivenbyaspikeinsoybeanoilprices.Thisre�lecteduncertaintyoverBrazil’ssoybeancropamidprospectsof�irmingglobalsoybeanoildemand.Overall,theindexdeclined19%Y-o-Yin2015toanaverageof147points,representinga9-yearlow.Soybeanoilprices—whichreacheda10-yearlowinSeptember2015—havesincerecovered.Overthe2015–2016cycle,industryexpertshaveforecastanoutputof51millionMT(5%Y-o-Ygrowth)ofsoybeanoil,globally.Asglobalsuppliesofsoybeanoilarelikelytoremainample—primarilyduetohighoutputintheUSandArgentina—pricesarelikelytobelow,despiteconcernsoverproductionlossesinBrazil.Industryexpertsareexpecting soybeanoil to compensate for the stalling suppliesofothervegetableoils (notablypalmandrapeseed).Further,favorablepolicychangesinArgentina—theleadingsupplierofsoyamealglobally—arelikelytoencourageimportsandexertfurtherdownwardpressureonsoybeanoilprices.In2016,factorssuchastherelativeabundanceofsoybeanoil,aswellasthenarrowingofitspricepremiumvis-a-vispalmoil,areexpectedtosupportdemandinglobalmarkets.Ifthepricespreadbetweenthetwooilscontinuestodecline,theindustryislikelytowitnessrobustimportsofsoybeanoil.However,lowdemandfromChinaislikelytopartiallyoffsethighersoybeanoildemandglobally,overtheyear.

TheSmartCubeestimatessoybeanoilpricestofall6.4%Y-o-Ytoanaverageof~$677/MTin2016—ariseof~0.2%fromJanuary2016.

InviewoftheGlobaltrendsinthesoyaoilmarketthecomingyearscanbepro�itableforsoyaindustries.

OPPORTUNITIESANDTHREATS:

AccordingstatisticsofAPEDA,worldtradeinwheatisgreaterthanforallothercropscombined,demandofIndia'swheatintheworldshowsarisingtrend.Thecountry‘sshareinglobalexportswasaround0.40%intheyear2015-16.India’swheatproductionhasincreasedinlast10yearsatCAGRof3.07%,AlsoIndia’sshareinglobalwheatproductionwasrecordedat11.78%duringthe�inancialyear2015-16.

Theexportmarketforsoyamealdeclinedto50%oftheprevious�inancialyearduetoreduceddemandfromtraditionalmarketsandontheotherhandthereisalsodeclineinthewheatexportmarket.Largescalewheatandsoyaimportswereimperativeintheyear2015-16tomeetthecountry’sdemand.OurCompanyalsohasapproachedtovariousnationallevelbiscuitandbakeryproductsmanufacturersforsupplyofrawmaterial.FlourandSoyabothareagriculturebasedproductbuthavingdeferentinputsandfactorswhicharenotdependabletoeachother.ByenteringintoSoyaIndustryCompanyhasdiversi�ieditsriskandopenadifferentsectortostrengthentheoverallpositionoftheCompanyandvaluetoshareholders.Companyistryingtoproducehighproteinproductswhicharehavinghighermarginandgooddemandinoverseasmarket.

Weareincreasingouremphasisfrombulksupplytoconsumerpacksupplybecauseinconsumerpackmarginishigherincomparisontobulk.Thecompanyhasplannedtopenetratethemarketthroughitsbrandsinthecomingyears.


SITASHREE


SEGMENT-WISEPERFORMACEORPRODUCT-WISEPERFORMANCE:

TheCompanyisengagedinthebusinessofwheat,soyaandpulsesproductsmanufacturingandbyproductsofagrocommoditiesinlocalaswellasinternationalmarket.Inmanufacturingactivityof�lourdivisionturnoverisRs.562.12CroresascomparetoRs.224.95CroresofpreviousyearsimilarlyforsoyadivisionsalesofmanufacturingactivityisRs.160.24Croresas compare toRs.225.38Croresofpreviousyear. InGrading&Processingactivityof �lourdivisionturnoverisRs.34.03CroresascomparetoRs.125.93Croresofpreviousyear.

TheoverallperformanceoftheCompanywasaffectedmainlybyslowmovementofdebtor,increaseinamountofidlestockforlongerperiodandincreasedinterestburdenondebtrequirementforhighworkingcapitalneeds.

OUTLOOK

Domesticmarkethasbeenondownswingduringtheyear2015-16.Theglobaleconomicclimatealsocontinuestobevolatile,uncertainandpronetogeo-politicalrisk.Weakconsumersentimentandlowcommodityareexpectedtoaffectglobalgrowthadversely.

ForIndia,2016willbeakeyyearforconsolidatingitsrecoveryandacceleratingitsgrowth.Despitechallengingglobalheadwinds, a stablemacro performancewill help India to remain an attractive investment destination. However,executionofthereformsagendaandcommencingtheinvestmentcyclewillbekeydeterminantsofIndia’seconomicperformanceonalongtermbasis.Whilecurrentlyin�lationisexpectedtobebenign,upsidepressuresonin�lationexistfromthevagariesofmonsoonorduetocompetitivedevaluationofcurrencies.

ForrobustandsustainablegrowthprivateinvestmentandexportsneedstoreviveandtheIndianrupeeneedstoremainstable.Indiahastoremaincompetitiveandbeabletopassonthebene�itstoitsdomesticaudienceforinclusiveandsustainedgrowth.

RISKANDCONCERNS:

Riskisapotentialeventornon-event,theoccurrenceornonoccurrenceofwhichcanadverselyaffecttheobjectivesofcompany.Impactofriskscouldeitherbemonetarythatisimpactonbusinesspro�itsduetoincreaseincosts,decreasingrevenueamongstothersornon-monetarywhichisdelayinsecuringregulatoryapprovals,reputationaldamageetc.Inaddition,wecouldalsobesusceptibletorisksarisingoutofourbusinessstrategy,decisiononinnovationorproductportfolio.Ifthereisanysigni�icantunfavorableshiftinindustrytrendorpatternofdemand,ourinvestmentsmightgetaffected.WealsohavemultiplecompetitorsbothinIndiaandoverseasandwealsostridethroughriskassociatedwithclients’andprospectiveclients’dispositions.

Asaconscientiousorganization,wehaveadoptedariskmanagementframeworktoensureearlyidenti�icationandmanagementofvariouscriticalrisks,whichaccruetoourbusinessmodel.

Company isstaffedwithexperiencedandquali�iedpeoplewhoplayan importantrole indesigning, implementing,maintainingandmonitoringtheinternalcontrolenvironment.

TheperiodicinternalauditsareperformedbytheInternalAuditortoprovidereasonableassuranceoverinternalcontroleffectivenessandadviceonindustrywidebestpractices.TheAuditcommitteeconsistingof independentdirector’sreview important issues raised by the Internal and Statutory auditors thereby ensuring that the risk ismitigatedappropriatelywithappropriaterecti�icationmeasuresonaperiodicbasis.

INTERNALCONTROLSYSTEMSANDTHEIRADEQUACY:

TheCompanyhasaproperinternalcontrolsystem,whichprovidesadequatesafeguardsandeffectivemonitoringofthetransactionsandensuresthatallassetsaresafeguardedandprotectedagainstlossfromunauthorizeduseordisposition.

The audit committee of the Company comprising of all independent directors regularly reviews the audit plans,adequacyofinternalcontrolaswellascomplianceofaccountingstandards.

AlsotheCFOhastheresponsibilityforestablishingandmaintaininginternalcontrolsfor�inancialreportingandthatthey also have the overall responsibility to evaluate the effectiveness of internal control systems of the companypertainingto�inancialreportingandtheyhavetodisclosetotheauditorsandtheAuditCommittee,de�icienciesinthedesignoroperationofsuchinternalcontrols,ifany,ofwhichtheyareawareandthestepstheyhavetakenorproposetotaketorectifythede�iciencies.


SITASHREE


DISCUSSIONONFINANCIALPERFORMANCEWITHRESPECTTOOPERATIONALPERFORMANCE:

PleaserefertobriefdescriptionoftheCompany’sWorkingduringtheyearandStateOfCompany’sAffairintheBoardofDirectorsReport.

MATERIALDEVELOPMENTSINHUMANRESOURCES/INDUSTRIALRELATIONSFRONT:

TheCompanyhasconstitutedanInternalComplaintCommittee(ICC)inpursuanttotheprovisionsofCompaniesAct,2013forprevention,prohibitionandredressalofcomplaints/grievancesonthesexualharassmentofwomenatworkplaces.

WehaveensuredsafeandhealthyworkingconditionsintheUnitandhavecontinuedwithourpolicytoensuresafeandhealthyworking conditions in the other premises of the Company taking into account of health and safety of allconcerned,besidesconservationofnaturalresourcesandprotectionoftheenvironment.

AmajorfactorwhichcontinuedgrowthofyourorganizationistheconstructivesupportofBanks,Institutions,Suppliers,Executives,Employees,Creditorsandthecon�idenceshownbythemintheCompany.Employer-Employeerelationsinalltheof�icesoftheCompanywerecordialthroughouttheyearunderreview.

stAsatMarch31 ,2016,theCompanyhadatotalworkforceofapproximately93persons,includingmanagers,staff.

DISCLOSUREOFACCOUNTINGTREATMENT:

DuringtheyearunderreviewwhilepreparingtheFinancialStatementsfortheFinancialYear2015-16theCompanyhasfollowedthesametreatmentasprescribedinanAccountingStandardshence,disclosure/management’sexplanationunderthisheadisnotapplicablefortheyear.

ForandonbehalfoftheBoardofDirectorsof SitaShreeFoodProductsLimited Sd/- Sd/- AshishGoyal AnoopGoyalIndore ManagingDirector Wholetimedirector&CFODate:31.08.2016 DIN:00144899 DIN:01887409


SITASHREE


ANNEXUREV

REPORTONCORPORATEGOVERNANCE

I.Company’sPhilosophyonCodeofGovernance:

Corporate Governance is an ethically driven business process that is committed to values and conduct aimed atenhancing an organization’s wealth generating capacity. This is ensured by taking ethical business decisions andconductingthebusinesswitha�irmcommitmenttovalues,whilemeetingstakeholders’expectations.TheCompany’sphilosophyonCorporateGovernancehasbeendevelopedwitha traditionof fairandtransparentgovernanceevenbeforetheyweremandatedbythelegislation.Transparency,integrity,professionalismandaccountability-basedvaluesformthebasisof theCompany'sphilosophyforCorporateGovernance.TheCompanybelievesthatgoodCorporateGovernanceisacontinuousprocessandstrivestoimprovetheCorporateGovernancepracticestomeetshareholder'sexpectations.Yourcompanyhasful�illedalltheexistingguidelinesunderClause17to27andclauses(b)to(i)ofsub-regulation (2) of regulation46 andParaC,D andE of ScheduleV of the SEBI (ListingObligations andDisclosureRequirements)Regulations,2015.

II.BoardofDirectors:

TheBoardofDirectorsoftheCompanyconsistsofeight(8)directors,consistingof four(4)Executiveandfour(4)Independent,Non-Executivedirectorsasattheendof�inancialyear2015-16.

TheconstitutionofBoardisasunder:

Director Category No.of No.of No.of Attendance other other Board atthe Direct- Committees Meetings previous orships Membership Annual

st st ason31 ason31 General March, March,2016** Meeting 2016* Chairman Member Held Attended

Mr.AshishGoyal Promoter/ManagingDirector Executive/ NonIndependent - - - 11 11 Yes

Mr.AnoopGoyal Promoter/Whole-timeDirector Executive/ NonIndependent 1 - 1 11 11 Yes

Mr.DineshAgrawal Promoter/Director Executive/ NonIndependent - - - 11 11 Yes

Mrs.NehaAgrawal*** Promoter/Whole-timeDirector Executive/ NonIndependent 1 - - 11 10 Yes

Mr.SureshNarayanWagh Non-Executive/ Independent - - - 11 09 No

Mr.GaneshPrasadSharma Non-Executive/ Independent - - - 11 09 No

Mr.SantoshKumarGupta Non-Executive/ Independent 1 - 1 11 09 Yes

Mr.OmkarPrasad Non-Executive/Tiwari**** Independent 1 1 1 11 11 Yes

*DirectorshipofonlyPublicLimitedCompaniesotherthanSitaShreeFoodProductsLimitedhasbeenconsidered.**As per Regulation 26(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015Chairmanship/MembershipofonlyAuditCommitteeandStakeholder'sRelationshipCommitteeofCompaniesotherthan


SITASHREE


SitaShreeFoodProductsLimitedhasbeenconsidered.***Resignedfromtheboardw.e.f.17thMay,2016.****Resignedfromtheboardw.e.f.29thJune,2016.

DuringtheyearunderreviewEleven(11)meetingsoftheBoardofDirectorswereheldon:

05.05.2015 30.05.2015 30.05.2015 31.05.2015 10.07.2015

13.08.2015 25.08.2015 14.11.2015 16.01.2016 13.02.2016

14.03.2016

NoteonDirectorsre-appointment:

Mr.DineshAgrawal,theChairmancumDirectoroftheCompanyisretiringattheforthcomingannualgeneralmeetingbyrotationandheiseligibleforre-appointment.

Mr.NeerajAnjane,CompanySecretaryandComplianceOf�iceroftheCompanyhavebeenresignedfromhispostduetohispre-occupancies.TheBoardtherebyacceptedhisresignationw.e.f.13.02.2016andplacesonrecorditsappreciationfortheservicesprovidedbyhimduringhistenureastheCompanySecretaryoftheCompany.

The board has duly appointedMs. Chitrangda Vishwakarma as Company Secretary and ComplianceOf�icer of theCompanyvidetheirmeetingheldonFebruary13th,2016.

ThecompanyhasreceivednoticeofresignationfromM/sAmolJain&Company,CharteredAccountants,Indoredated12.03.2016fromthepostofInternalAuditoroftheCompanyduetotheirpreoccupancy.

Further,thecompanyhasappointedCARachanaRathi,whole-timeemployeeofthecompanyasInternalAuditoroftheCompanyw.e.f.12.03.2016.

Mrs.NehaAgrawal,Whole-timeDirectoroftheCompanyhasresignedasaDirectoronMay17,2016duetoherpre-occupancies.TheBoardtherebyacceptedherresignationon06thofJune,2016andplacesonrecorditsappreciationforthecontributionmadebyMrs.NehaAgrawalduringhertenureasDirector.

Mr.OmkarPrasadTiwari,IndependentDirectoroftheCompanyhasresignedasaDirectoronJune,29,2016duetohispre-occupancies.TheBoardplacesonrecorditsappreciationforthecontributionmadebyMr.OmkarPrasadTiwariduringhistenureasDirector.

Mrs.AnshuGoyalhasbeenappointedastheadditionaldirectorbytheBoardofDirectorsvidetheirmeetingheldon31.08.2016andas theycanholdof�iceupto thedateofAGM,herappointmentneeds tobecon�irmed in theAGM.Proposalforherre-appointmenthavebeenincludedintheNoticeofAnnualGeneralMeetingforyourapproval.

In Compliance with requirements of Clause 26(4) of SEBI (Listing Obligations and Disclosure Requirements)Regulations, 2015, brief resume, expertise and details of other directorships,membership in committees of othercompaniesandshareholdingintheCompanyofpersonsproposedtobeappointedasDirectorsarementionedintheNoticeoftheAGMwhichshallformpartofthisAnnualReport.

InformationplacedbeforetheBoard:

InformationplacedbeforetheBoardofDirectorsbroadlycoverstheitemsspeci�iedinclause17readwithPartA ofScheduleIIoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andsuchotheritemswhicharenecessarytofacilitatemeaningfulandfocuseddeliberationsonissuesconcerningtheCompanyandtakingdecisioninaninformedandef�icientmanner.Besides,theDirectorsontheBoardhavecompleteaccesstoallinformationoftheCompany,asandwhennecessary.FurthertheboardhasperiodicallyreviewedthecompliancereportspertainingtoalllawsapplicabletotheCompanyaswellasmonitoredtheriskmanagementplanaslaiddownbeforetheboard.

CodeofConduct:

IncompliancewithRegulation26(3)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andtheCompaniesAct,2013,theCompanyhasframedandadoptedaCodeofConductandEthics(“theCode”).TheCodeisapplicabletothemembersoftheboard,theexecutiveof�icersandallemployeesoftheCompanyanditsassociates.Thecodeofconductisavailableonthewebsiteofthecompanyi.e.www.sitashri.com.


SITASHREE


Allmembersoftheboardandseniormanagementpersonnelhaveaf�irmedcompliancetotheCodeasonMarch31,2016.

AdeclarationtothateffectsignedbytheManagingDirectorisattachedandformspartoftheAnnualReportofthecompany.

PreventionofInsiderTradingCode:

AsperSEBI(ProhibitionofInsiderTrading)Regulation,2015thecompanyhasadoptedaCodeofConductforPreventionofInsiderTrading.Alldirectors,employeesandthirdpartiessuchasauditors,consultantsetc.whocouldhaveaccesstotheunpublishedpricesensitiveinformationoftheCompanyaregovernedbythiscode.Thetradingwindowisclosedduringthetimeofdeclarationofresultsandoccurrenceofanymaterialeventsasperthecode.TheCompanyhasautomatedthedeclarationsanddisclosurestoidenti�ieddesignatedemployees,andtheboardreviewsthepolicyonaneedbasis.Thepolicyisalsoavailableonthecompany‘swebsiteathttp://sitashri.com/docs/policies/code_of_conduct_insiders.pdf.

CommitteesoftheBoard:

IncompliancewiththerequirementsundertheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,CompaniesAct,2013andotherapplicablelaws,theBoardhasconstitutedthefollowingcommitteesoftheBoard:

AuditCommittee;Nomination&RemunerationCommittee;StakeholdersRelationshipCommittee;CorporateSocialResponsibilityCommittee.

III.AuditCommittee

TermsofReference:

TheprimaryobjectiveoftheCommitteeistomonitorandprovideaneffectivesupervisionofthe�inancialReportingprocess, toensureaccurateand timelydisclosures,with thehighest levelsof transparency, integrityandqualityof�inancialreporting.TheAuditCommitteereviewstheauditreportssubmittedbytheInternalAuditorsandStatutoryAuditors,�inancialresults,effectivenessofinternalauditprocessesandtheCompany’sriskmanagementstrategy.Itreviews theCompany’s established systemsand theCommittee is governedbyaCharterwhich is in linewith theregulatoryrequirementsmandatedbytheCompaniesAct,2013alongwithClause18andPartCoftheScheduleIIundertheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

Composition,NumberofMeetings,NameofMembersandAttendanceduringtheyear:

TheAuditCommitteeconsistsoffour(4)directors;allofthemareIndependentDirectors.

Duringthe�inancialyear2015-2016Five(5)meetingsofthesaidCommitteewereheldonthefollowingdates:

30.05.2015 13.08.2015 14.11.2015 13.02.2016 14.03.2016

TheconstitutionoftheCommitteeandtheattendanceofeachmemberaregivenbelow:

NameofDirector Designation No.ofMeetingsHeld No.ofMeetingsAttended

Mr.OmkarPrasadTiwari* Chairman 5 5

Mr.SantoshKumarGupta** Member 5 5

Mr.SureshNarayanWagh Member 5 5

Mr.GaneshPrasadSharma Member 5 5

*Resignedfromtheboardw.e.f29.06.2016.**AppointedasChairmanw.e.f.31.08.2016.

TheChairmanoftheAuditCommitteewaspresentatthelastAGM.

TheCompanySecretaryactedasaSecretarytotheCommittee.

IV.NominationandRemunerationCommittee

TermsofReference:


SITASHREE


ThisCommitteeidenti�iesthepersons,whoarequali�iedtobecomeDirectorsoftheCompany/whomaybeappointedinSeniorManagementinaccordancewiththecriterialaiddown,recommendtotheBoardtheirappointmentandremovalandalsocarriesoutevaluationofeverydirector'sperformance.Italsodecideswhethertoextendorcontinuethetermofappointmentoftheindependentdirector,onthebasisofreportofperformanceevaluationofindependentdirector.TheCommitteealsoformulatesthecriteriafordeterminingquali�ications,positiveattributes,independenceoftheDirectorsandrecommendstotheBoardaPolicy,relatingtotheremunerationfortheDirectors,KeyManagerialPersonnelandotheremployees.


TheCommitteeconsistsoffour(4)directors;allofthemareIndependentDirectors.

Duringthe�inancialyear2015-2016Three(3)meetingsofthesaidCommitteewereheldonthefollowingdates:

30.05.2015 13.08.2015 13.02.2016

NameofDirector Designation No.ofMeetingsHeld No.ofMeetingsAttended





*Resignedfromtheboardw.e.f29.06.2016.**AppointedasChairmanw.e.f.31.08.2016

NOMINATION,REMUNERATIONANDEVALUATIONPOLICY.

PREFACE

TheNomination&RemunerationCommitteeofSitaShreeFoodProductsLimited(“theCompany”)hasbeenformedto review and make recommendations on annual salaries, performance commission, perquisites and otheremploymentconditionsoftheExecutiveDirectors,KeyManagerialPersonnelandotheremployees.InordertoalignwiththeprovisionsoftheCompaniesAct,2013theBoardchangedthenomenclatureof“RemunerationCommittee”as“NominationandRemunerationCommittee”.

OBJECTIVE

TheNominationandRemunerationCommitteeandthisPolicyareincompliancewithSection178oftheCompaniesAct,2013readalongwiththeapplicablerulesthereto,alongwithClause19andPartDoftheScheduleIIundertheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

TheKeyObjectivesoftheCommitteewouldbe:

-toguidetheBoardinrelationtoappointmentandremovalofDirectors,KeyManagerialPersonnelandSeniorManagement.

-toevaluatetheperformanceofthemembersoftheBoardandprovidenecessaryreporttotheBoardforfurtherevaluationoftheBoard.

-to recommend to theBoardonRemunerationpayable to theDirectors,KeyManagerialPersonnelandSeniorManagement.

-todeviseapolicyondiversityofboardofdirectors;

-toextendorcontinuethetermofappointmentoftheindependentdirectoronthebasisofreportofperformanceevaluationofindependentdirectors.

DEFINITIONS

Thede�initionsofsomeofthekeytermsusedinthisPolicyaregivenbelow.

Termsnotde�inedinthepolicyshallhavethemeaningaspertheCompaniesAct,2013.

“KeyManagerialPersonnel”means–

ChiefExecutiveOf�icerortheManagingDirectorortheManager;

CompanySecretary,


SITASHREE


Whole-timeDirector;

ChiefFinancialOf�icer;and

Suchotherof�icerasmaybeprescribed.

“SeniorManagement”meansSeniorManagementmeanspersonnelofthecompanywhoaremembersofitscoremanagementteamexcludingtheBoardofDirectors.Thiswouldalsoincludeallmembersofmanagementonelevelbelowtheexecutivedirectorsincludingallfunctionalheads.

ROLEOFCOMMITTEE:

TheroleoftheCommitteeinteraliawillbethefollowing:

toformulateacriteriafordeterminingquali�ications,positiveattributesandindependenceofaDirector;

torecommendtotheBoardtheappointmentandremovalofSeniorManagement;

tocarryoutevaluationofDirector’sperformanceandrecommendtotheBoardappointment/removalbasedonhis/herperformance;

torecommendtotheBoardon(i)policyrelatingtoremunerationforDirectors,KeyManagerialPersonnelandSeniorManagementand(ii)ExecutiveDirectorsremunerationandincentive;

a) tomakerecommendationstotheBoardconcerninganymattersrelatingtothecontinuationinof�iceofany DirectoratanytimeincludingthesuspensionorterminationofserviceofanExecutiveDirectorasanemployee oftheCompanysubjecttotheprovisionofthelawandtheirservicecontract;

b) ensurethatlevelandcompositionofremunerationisreasonableandsuf�icient,relationshipofremunerationto performanceisclearandmeetsappropriateperformancebenchmarks;

c) todeviseapolicyonBoarddiversity;

d) todevelopasuccessionplanfortheBoardandtoregularlyreviewtheplan.

MEMBERSHIP:

a) TheCommitteeshallconsistofaminimum3non-executivedirectors,majorityofthembeingindependent.

b) Minimumtwo(2)membersshallconstituteaquorumfortheCommitteemeeting.

c) MembershipoftheCommitteeshallbedisclosedintheAnnualReport.

d) TermoftheCommitteeshallbecontinuedunlessterminatedbytheBoardofDirectors.

CHAIRMAN:

a) ChairmanoftheCommitteeshallbeanIndependentDirector.

b) ChairpersonoftheCompanymaybeappointedasamemberoftheCommitteebutshallnotbeaChairmanof theCommittee.

c) In the absence of theChairman, themembers of theCommitteepresent at themeeting shall chooseone amongstthemtoactasChairman.

d) ChairmanoftheNominationandRemunerationCommitteemeetingcouldbepresentattheAnnualGeneral Meetingormaynominatesomeothermembertoanswertheshareholders’queries.

FREQUENCYOFMEETINGS:

ThemeetingoftheCommitteeshallbeheldatsuchregularintervalsasmayberequired.

COMMITTEEMEMBERS’INTERESTS:

AmemberoftheCommitteeisnotentitledtobepresentwhenhisorherownremunerationisdiscussedatameetingorwhenhisorherperformanceisbeingevaluated.

The Committeemay invite such executives, as it considers appropriate, to be present at themeetings of theCommittee.

SECRETARY:

TheCompanySecretaryoftheCompanyshallactasSecretaryoftheCommittee.


SITASHREE


VOTING:

a) MattersarisingfordeterminationatCommitteemeetingsshallbedecidedbyamajorityofvotesofMemberspresentandvotingandanysuchdecisionshallforallpurposesbedeemedadecisionoftheCommittee.

b) Inthecaseofequalityofvotes,theChairmanofthemeetingwillhaveacastingvote.

NOMINATIONDUTIES:

ThedutiesoftheCommitteeinrelationtonominationmattersinclude:

Ensuringthatthereisanappropriateinduction&trainingprogrammeinplacefornewDirectorsandmembersofSeniorManagementandreviewingitseffectiveness;

Ensuringthatonappointment to theBoard,Non-ExecutiveDirectorsreceivea formal letterofappointment inaccordancewiththeGuidelinesprovidedundertheCompaniesAct,2013;

IdentifyingandrecommendingDirectorswhoaretobeputforwardforretirementbyrotation.

Determiningtheappropriatesize,diversityandcompositionoftheBoard;

SettingaformalandtransparentprocedureforselectingnewDirectorsforappointmenttotheBoard;

DevelopingasuccessionplanfortheBoardandSeniorManagementandregularlyreviewingtheplan;

Evaluating the performance of the Boardmembers and SeniorManagement in the context of the Company’sperformancefrombusinessandcomplianceperspective;

MakingrecommendationstotheBoardconcerninganymattersrelatingtothecontinuationinof�iceofanyDirectoratany time including thesuspensionor terminationofserviceofanExecutiveDirectorasanemployeeof theCompanysubjecttotheprovisionofthelawandtheirservicecontract.

DelegatinganyofitspowerstooneormoreofitsmembersortheSecretaryoftheCommittee;

RecommendanynecessarychangestotheBoard.

ConsideringanyothermattersasmayberequestedbytheBoard;and

POLICYFORAPPOINTMENTANDREMOVALOFDIRECTOR,KMPANDSENIORMANAGEMENT:

1. AppointmentCriteriaandQuali�ications

a) TheCommitteeshallidentifyandascertaintheintegrity,quali�ication,expertiseandexperienceoftheperson for appointment asDirector,KMPor at SeniorManagement level and recommend to theBoardhis /her appointment.

b) A person should possess adequate quali�ication, expertise and experience for the position he / she is considered forappointment.TheCommitteehasdiscretion todecidewhetherquali�ication,expertiseand experiencepossessedbyapersonaresuf�icient/satisfactoryfortheconcernedposition.

c) TheCompanyshallnotappointorcontinuetheemploymentofanypersonasWhole-timeDirectorwhohas attainedtheageofseventyyears.Providedthatthetermofthepersonholdingthispositionmaybeextended beyondtheageofseventyyearswiththeapprovalofshareholdersbypassingaspecialresolutionbasedonthe explanatory statement annexed to the notice for suchmotion indicating the justi�ication for extension of appointmentbeyondseventyyears.

2. Term/Tenure

ManagingDirector/Whole-timeDirector:

TheCompanyshallappointorre-appointanypersonasitsExecutiveChairman,ManagingDirectororExecutiveDirectorforatermnotexceeding�iveyearsatatime.Nore-appointmentshallbemadeearlierthanoneyearbeforetheexpiryofterm.

IndependentDirector:

AnIndependentDirectorshallholdof�iceforatermupto�iveconsecutiveyearsontheBoardoftheCompanyandwill be eligible for re-appointment on passing of a special resolution by the Company and disclosure of suchappointmentintheBoard'sreport.

-NoIndependentDirectorshallholdof�iceformorethantwoconsecutivetermsofuptomaximumof5yearseach,butsuchIndependentDirectorshallbeeligibleforappointmentafterexpiryofthreeyearsofceasingtobecomeanIndependentDirector.ProvidedthatanIndependentDirectorshallnot,duringthesaidperiodofthreeyears,beappointedinorbeassociatedwiththeCompanyinanyothercapacity,eitherdirectlyorindirectly.


SITASHREE


3. Evaluation

TheCommitteeshallcarryoutevaluationofperformanceofeveryDirector,KMPandSeniorManagementPersonnelatregularinterval(yearly).

4. Removal

Duetoreasonsforanydisquali�icationmentionedintheActorunderanyotherapplicableAct,rulesandregulationsthereunder,theCommitteemayrecommend,totheBoardwithreasonsrecordedinwriting,removalofaDirector,KMP or Senior Management Personnel subject to the provisions and compliance of the said Act, rules andregulations.

5. Retirement

TheDirector,KMPandSeniorManagementPersonnelshallretireaspertheapplicableprovisionsoftheActandtheprevailingpolicyoftheCompany.TheBoardwillhavethediscretiontoretaintheDirector,KMP,SeniorManagementPersonnelinthesameposition/remunerationorotherwiseevenafterattainingtheretirementage,forthebene�itoftheCompany.

REMUNERATIONDUTIES:

ThedutiesoftheCommitteeinrelationtoremunerationmattersinclude:

toconsideranddeterminetheRemunerationPolicy,basedontheperformanceandalsobearinginmindthattheremunerationisreasonableandsuf�icienttoattractretainandmotivatemembersoftheBoardandsuchotherfactorsastheCommitteeshalldeemappropriateallelementsoftheremunerationofthemembersoftheBoard.

to approve the remuneration of the SeniorManagement including keymanagerial personnel of the Companymaintainingabalancebetween �ixedand incentivepayre�lectingshortand long termperformanceobjectivesappropriatetotheworkingoftheCompany.

todelegateanyofitspowerstooneormoreofitsmembersortheSecretaryoftheCommittee

toconsideranyothermattersasmayberequestedbytheBoard;

ProfessionalindemnityandliabilityinsuranceforDirectorsandseniormanagement.

POLICYFORREMUNERATIONTODIRECTORS/KMP/SENIORMANAGEMENTPERSONNEL:

1. RemunerationtoManaging/Whole-time/Executive/ManagingDirector,KMPandSeniorManagementPersonnel:

The Remuneration/ Compensation/ Commission etc. to be paid to Director /Managing Director etc. shall begovernedasperprovisionsoftheCompaniesAct,2013andrulesmadethereunderoranyotherenactmentforthetimebeinginforce.

2. RemunerationtoNon-Executive/IndependentDirector:

TheNon-Executive IndependentDirectormay receive remuneration / compensation / commission as per theprovisionsofCompaniesAct,2013.Theamountofsittingfeesshallbesubjecttoceiling/limitsasprovidedunderCompaniesAct,2013andrulesmadethereunderoranyotherenactmentforthetimebeinginforce.ThecriteriaformakingpaymenttoNon-Executivedirectorsofthecompanyarealsouploadedonthewebsiteofthecompanyandcanbeaccessedathttp://www.sitashri.com/docs/policies/payment_criteria_nonexe.pdf.

EVALUATIONPOLICY:

ThefollowingparametersforthepurposeofevaluatingtheperformanceoftheBoardandthatofCommitteesandIndividualDirectors:

RatingScale

RATING DESCRIPTION

1 Doesnotmeetevaluationparameter

2 Meetsevaluationparameter

3 Exceedsevaluationparameter

N/A NotApplicable

EvaluationofBoard

Someofthespeci�icissuesandquestionsthatshouldbeconsideredinaperformanceevaluationoftheentireBoardbytheIndependentDirectorsaresetoutbelow:


SITASHREE


S.No. AssessmentCriteria

1 Isthecompositionoftheboardappropriatewiththerightmixofknowledgeandskillsrequiredtodriveorganizationalperformanceinthelightoffuturestrategy?

2 Membersoftheboardmeetallapplicableindependencerequirements.

3 TheBoardofDirectorsiseffectiveinestablishingacorporateenvironmentthatpromotestimelyandeffectivedisclosure,�iscalaccountability,highethicalstandardsandcompliancewithapplicablelawsandregulations.

4 The Board of Directors is effective in developing a corporate governance structure that allows andencouragestheBoardtoful�illitsresponsibilities.

5 TheCompany’s systemsof controlareeffective for identifyingmaterial risksandreportingmaterialviolationsofpoliciesandlawandtheBoardisprovidedwithsuf�icientinformationaboutmaterialrisksandproblemsthataffectstheCompany’sbusinessandprospects.

6 TheBoardreceivesregular�inancialupdatesandtakesallnecessarystepstoensuretheoperationsoftheorganizationaresoundandreviewstheorganization’sperformanceincarryingoutthestatedmissiononaregularbasis.

7 Are suf�icient numbers of board meetings, of appropriate length, being held to enable properconsiderationofissues?

8 TheinformationprovidedtodirectorspriortoBoardmeetingsmeetsexpectationsintermsoflengthandlevel of detail and Board members come prepared to meetings and ask appropriate questions ofmanagementandaddressissuesthatmightpresentacon�lictofinterest.

9 Board meetings are conducted in a manner that encourages open communication, meaningfulparticipation,andtimelyresolutionofissues.

10 TheChairmanoftheBoardeffectivelyandappropriatelyleadsandfacilitatestheBoardmeetingsandthepolicyandgovernanceworkoftheBoard.

11 Nomination and appointment ofBoardmembers and theirRemuneration follow clearly establishedproceduresusingknowncriteriaaslaiddownbytheNominationandRemunerationCommittee.

12 TheBoardoverseestheroleoftheindependentauditorfromselectiontoterminationandhasaneffectiveprocess to evaluate the independent auditor’s quali�ications and performance (through its AuditCommittee).

13 CompanyhasasystemforCorporateSocialResponsibility,StakeholderRelationshipsandforprohibitionofinsidertrading

14 CompanyhasnecessaryCommitteeswhicharerequiredandtheseCommitteesareworkingeffectively

15 AdherencetoInternalPoliciesandProcedures.

BasedontheabovecriteriaBoardhastobeassessedbygivingaratingaccordingtotheRatingScale.Thetotalnumberofthe ratings awardedwill be averaged over the number of personswho have awarded the ratings. The process ofevaluationshallbedoneby IndependentDirectorsonly.Assistance in theprocesswillbeprovidedbyapersonsoauthorizedbytheBoard,andforthispurposethepersonwillreporttotheBoard.

EvaluationofCommittees

Someofthespeci�icissuesandquestionsthatshouldbeconsideredinaperformanceevaluationoftheCommitteesoftheBoardaresetoutbelow:


1 CompliancewithArticlesofAssociation,CompaniesActandOtherapplicablelaws.

2 CompliancewithCodeofConductoftheCompany.

3 Committee’saccomplishmentsw.r.t.performanceobjectives.

4 AdherencetoArticlesofAssociation,CompaniesActandOtherapplicablelaws.

5 RedressalofComplaintsandGrievances.

6 CoordinationwithothercommitteesandwithBoardofDirectors.


SITASHREE


7 Ful�illmentofRolesandResponsibilitiesinaccordancetoCompaniesActandSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.


BasedontheabovecriteriaCommitteeshastobeassessedbygivingaratingaccordingtotheRatingScale.Thetotalnumberoftheratingsawardedwillbeaveragedoverthenumberofpersonswhohaveawardedtheratings.

TheprocessofevaluationshallbedonealltheDirectorsoftheCompany.AssistanceintheprocesswillbeprovidedbyapersonsoauthorizedbytheBoard,andforthispurposethepersonwillreporttotheBoard.

EvaluationofIndividualDirectors(IndependentDirectors)

Someofthespeci�icissuesandquestionsthatshouldbeconsideredintheperformanceevaluationofanIndependentDirector,(theexerciseinwhichtheconcerneddirectorbeingevaluatedshallnotbeincluded)aresetoutbelow:


1 AttendanceandparticipationsintheMeetingsandtimelyinputsontheminutesofthemeetings

2 AdherencetocodeofconductofCompanyanddisclosureofnon–independence,asandwhenitexistsanddisclosureofinterest

3 RaisingofvalidconcernstotheBoardandconstructivecontributiontoresolutionofissuesatmeetings

4 Interpersonalrelationswithotherdirectorsandmanagement

5 ObjectiveevaluationofBoard’sperformance,renderingindependent,unbiasedopinion

6 UnderstandingoftheCompanyandtheexternalenvironmentinwhichitoperatesandcontributiontostrategicdirection.

7 Safeguarding interest of whistle-blowers under vigil mechanism and Safeguard of con�identialinformation


BasedontheabovecriteriaeachoftheIndependentDirectorshastobeassessedbygivingaratingaccordingtotheRatingScale.Thetotalnumberoftheratingsawardedwillbeaveragedoverthenumberofpersonswhohaveawardedtheratings.

Theprocessofevaluationshallbedonebytheotherdirectors(includingotherIndependentDirectors).AssistanceintheprocesswillbeprovidedbyapersonsoauthorizedbytheBoard,andforthispurposethepersonwillreporttotheBoard.

EvaluationofIndividualDirectors(NON–INDEPENDENTDIRECTORS/CMD/WTD)

Someofthespeci�icissuesandquestionsthatshouldbeconsideredintheperformanceevaluationofaNon-IndependentDirector/WTD/CMD,(theexerciseinwhichtheconcerneddirectorbeingevaluatedshallnotbeincluded)aresetoutbelow:


1 Attendance,participationsintheMeetingsandtimelyinputsontheminutesofthemeetings

2 ContributiontowardsgrowthoftheCompanyincludingactualvis-a-visbudgetedperformance.

3 Leadershipinitiative,likenewideasandplanningtowardsgrowthoftheCompanyandstepsinitiatedtowardsBrandingoftheCompany

4 AdherencetocodeofconductofCompany

5 Teamworkattributesandsupervising&trainingofstaffmembers

6 Compliancewithpolicies,Reportingoffrauds,violationetc.anddisclosureofinterest

7 Safeguarding of interest of whistle blowers under vigil mechanism and Safeguard of con�identialinformation


BasedontheabovecriteriaeachoftheNon–IndependentDirectors/CMD/WTDhastobeassessedbygivingaratingaccordingtotheRatingScale.Thetotalnumberoftheratingsawardedwillbeaveragedoverthenumberofpersonswhohaveawardedtheratings.


SITASHREE


Theprocessofevaluationshallbedonebytheotherdirectors(includingotherNon–IndependentDirectors/CMD/WTD).AssistanceintheprocesswillbeprovidedbyapersonsoauthorizedbytheBoard,andforthispurposethepersonwillreporttotheBoard.

MINUTESOFCOMMITTEEMEETING:

Proceedingsofallmeetingsmustbeminutedandsignedby theChairmanof theCommitteeat thesubsequentmeeting.MinutesoftheCommitteemeetingswillbetabledatthesubsequentBoardandCommitteemeeting.

REVIEWANDAMENDMENT

TheNominationandRemunerationCommitteeortheBoardmayreviewthePolicyasandwhenitdeemsnecessary.

TheNominationandRemunerationCommitteemayissuetheguidelines,procedures,formats,reportingmechanismandmanualinsupplementandbetterimplementationtothisPolicy,ifitthinksnecessary.

ThisPolicymaybeamendedorsubstitutedbytheNominationandRemunerationCommitteeorbytheBoardasandwhenrequiredandalsobytheComplianceOf�icerwherethereisanystatutorychangesnecessitatingthechangeinthepolicy.

Note: Nomination and Remuneration Policy of the Company is also available on the website of the Company i.e. http://sitashri.com/docs/policies/nomination.pdf.


SITASHREE


Detailsofremunerationpaid/payabletodirectorsfortheyearendedMarch,2016areasfollows:

(AmountinRupees)

Nameofthe RelationshipBetween Designation Business Sitting Salary TotalDirector DirectorsInter-se relationship Fees* and with Perquisites Company

Mr.Dinesh RelativeofAshishGoyal, Chairman Promoter - - -Agrawal AnoopGoyal, cum NehaAgrawal. Director

Mr.Ashish RelativeofMr.Dinesh ManagingGoyal Agrawal,Mr.AnoopGoyal, Director Promoter - Rs.3600000 Rs.3600000 Ms.NehaAgrawaland Mrs.AnshuGoyal.

Mr.Anoop RelativeofMr.Dinesh Whole Promoter - Rs.3600000 Rs.3600000Goyal AgrawalMr.AshishGoyal timeDirector &Ms.NehaAgrawal.

Mrs.Neha RelativeofMr.DineshAgrawal** Agrawal,Mr.AshishAgrawalWholetime Promoter - Rs.600000 Rs.600000 &Mr.AnoopGoyal. Director

Mr.Suresh NotRelatedto NonExecutive/ Independent Rs.21000 - Rs.21000NarayanWagh anyOtherDirector Independent

Mr.Ganesh NotRelatedto NonExecutive/ Independent Rs.21000 - Rs.21000PrasadSharma anyOtherDirector Independent

Mr.Omkar NotRelatedto NonExecutive/ Independent Rs.25000 - Rs.25000PrasadTiwari*** anyOtherDirector Independent

Mr.Santosh NotRelatedto NonExecutive/KumarGupta anyOtherDirector Independent Independent Rs.21000 - Rs.21000

*TheCompanydoesnotpayanyotherremunerationtothembesidessittingfees.Appropriaterecordsaremaintainedinrespectofthepaymentmadetothem.

th**Resignedfromtheboardw.e.f.17 May,2016.th***Resignedfromtheboardw.e.f.29 June,2016.

Notes:

• The remuneration to the Executive Directors is being paid as per the recommendation of Nomination andRemunerationCommitteeandapprovaloftheshareholdersatthegeneralbodymeeting,whereverapplicable.

• SalaryandperquisitesincludesProvisionforGratuityandalsoincludesProvidentFundofRs.3900/-P.M.eachforMr.AshishGoyalandMr.AnoopGoyal.

• Otherthanthebene�itsstatedabovenoother�ixedorvariablebene�itsareavailableforanyofthedirectors.

• Thereisnoseparateprovisionofservicecontracts,noticeperiodandseverancefees.

• TheIndependentDirectorshavecon�irmedthattheymeetthecriteriaof‘Independence’asstipulatedundertheCompaniesAct,2013.

• NoStock-OptionhasbeengrantedtoanydirectorsbytheCompany.

• TherearenopecuniaryrelationshipsortransactionsofNon-executivedirectorsvisavisthecompanywhichhaspotentialcon�lictwiththeinterestsoftheCompanyatlarge.

• Numbers of shares held by Non Executive Directors are mentioned in Form No. MGT-9 which is annexed asANNEXUREIofthisAnnualReportwhichshallformpartofthisreport.

• Furtherthatnoneofthedirectorswereholdingconvertibleinstrumentsasondate.

• Detailsoftransactionsofamaterialnatureoftherelatedpartiesasspeci�iedinAccountingStandard18issuedbytheInstituteofCharteredAccountantsofIndiahavebeenreportedinnotestotheaccounts.Thereisnotransactionofamaterialnaturewithanyoftherelatedparties,whichwasincon�lictwiththeinterestsoftheCompany.

V.StakeholdersRelationshipCommittee:

TermsofReference:

ThisCommitteefocusesprimarilyonmonitoringexpeditiousRedressalofinvestors/stakeholdersgrievancesandalsofunctionsinanef�icientmannerthatallissues/concernsstakeholdersareaddressed/resolvedpromptly.


TheCommitteeconsistsof�ive(5)directors,consistingofone(1)Executiveandfour(4)Independent,Non-Executivedirectors.

Duringthe�inancialyear2015-2016Three(3)meetingsofthesaidCommitteewereheldonthefollowingdates:

30.05.2015 13.08.2015 14.11.2015

Name Designation No.ofMeetingsHeld No.ofMeetingsAttended





Mr.AshishGoyal# Member 3 3

*Resignedfromtheboardw.e.f.29.06.2016.**AppointedasChairmanw.e.f.31.08.2016.#ExecutiveDirector

Name,Designation&AddressofComplianceOf�icer:

Ms.ChitrangdaVishwakarma,CompanySecretary

332/4/2,R.D.UdyogNagar,Palda,NemawarRoad,Mathurawala’sColony,Indore(M.P.)-452020

Emailat:complianceof�[email protected],[email protected]


SITASHREE


Shareholder’sServices:

NatureofComplaint 2015-16

Received Answered Notsolvedtothe Pending

satisfactionofshareholders

- - - - -

VI.CorporateSocialResponsibilityCommittee

TermsofReference:

Thiscommitteehasbeenformedintermsofsection135andScheduleVIIoftheCompaniesAct,2013,toformulate,recommendandmonitortheCorporateSocialResponsibilityPolicyandamountofexpendituretobeincurredontheactivitiesreferredtointothepolicy.

Composition

TheCommitteeconsistsofthree(3)directors,consistingoftwo(2)Executiveandone(1)Independent,Non-Executivedirector.

Name Designation


Mr.AshishGoyal** Member

Mr.AnoopGoyal Member

Mr.SantoshKumarGupta***

*Resignedfromtheboardw.e.f.29.06.2016.**AppointedasChairmanw.e.f.31.08.2016.***AppointedasMemberw.e.f.31.08.2016.

CorporateSocialResponsibilityPolicy

ACorporateSocialResponsibilityPolicyhasbeenformulatedandrecommendedbyCSRCommitteeanddulyadoptedbytheBoardofDirectors.TheCSRPolicyhasbeenuploadedonthewebsiteoftheCompanyathttp://sitashri.com/docs/policies/csr_policy.pdf.

VII.GeneralBodyMeetings:

ThedetailsofthelocationandtimeoftheGeneralMeetingsheldduringthelast3yearsareasfollows:

AnnualGeneral Date Time Venue No.ofSpecialMeetingforyear Resolutionspassed

th2015 30 Sep.2015 10.30A.M. 332/4/2R.D.UdyogNagarPaldaNemawar Two(2) Road,Mathurawala’sColony,Indore, M.P.-452020

st2014 31 Dec2014 10.30A.M. 332/4/2R.D.UdyogNagarPaldaNemawar Five(5) Road,Mathurawala’sColony,Indore, M.P.-452020

th2013 24 Dec2013 10.30A.M. 332/4/2R.D.UdyogNagarPaldaNemawar - Road,Mathurawala’sColony,Indore, M.P.-452020

NoresolutionhasbeenpassedthroughpostalballottilldateinanyAGM.

ThereisnoproposalforpassinganyresolutionthroughPostalBallotattheensuingAnnualGeneralMeetingscheduledtothbeheldon30 September,2016.


SITASHREE


ExtraOrdinary Date Time Venue No.ofSpecialGeneralMeeting Resolutionsfortheyear passed

th2015-16 30 May,2015 11.00A.M. 332/4/2R.D.UdyogNagarPaldaNemawar Road,Mathurawala’sColony,Indore, M.P.-452020 Five(5)

th2014-15 17 May2014 11.00A.M. 332/4/2R.D.UdyogNagarPaldaNemawar Road,Mathurawala’sColony,Indore, M.P.-452020 One(1)

th2013-14 10 March2014 10.30A.M. 332/4/2R.D.UdyogNagarPalda NemawarRoad,Mathurawala’sColony, Indore,M.P.-452020 Five(5)

VIII.Disclosures

i.RelatedPartyTransactions

Detailsoftransactionsofamaterialnatureoftherelatedpartiesasspeci�iedinAccountingStandard18issuedbytheInstituteofCharteredAccountantsofIndiahavebeenreportedinnotestotheaccounts.Thereisnotransactionofamaterialnaturewithanyoftherelatedparties,whichwasincon�lictwiththeinterestsoftheCompany.

ThePolicyonRelatedPartyTransactionsanddealingwithrelatedpartytransactionsasapprovedbytheBoardmaybeaccessedontheCompany’swebsitei.e.http://sitashri.com/docs/policies/related_party.pdf.

ii.AccountingTreatment

Whereinthepreparationof�inancialstatements,atreatmentdifferentfromthatprescribedinanAccountingStandardhasbeenfollowed,thefactshallbedisclosedinthe�inancialstatements.

iii.DetailsofNon-CompliancesbytheCompany

Duringtheperiodunderreviewbutaftertheclosingof�inancialyear,NationalStockExchangeofIndiaLimitedandBombayStockExchangeLimitedhaveimposedpenaltyforlatesubmissionof�inancialresultsforthequarterendedon

st31 March,2016respectively.

Exceptthanthematterstatedabovetherehasbeennoinstanceofnon-compliancebytheCompanyonanymatterrelatedto capitalmarkets or imposition of penalties or strictures by SEBI or the Stock Exchanges or any other StatutoryAuthorityduringlastthreeyears.

iv.WhistleBlowerPolicy

TheCompanypromotesethicalbehaviorinallitsbusinessactivitiesandhasputinplaceamechanismforreportingillegalorunethicalbehavior.TheCompanyhasaVigilmechanismandWhistleblowerpolicyunderwhichtheemployeesarefreetoreportviolationsofapplicablelawsandregulationsandtheCodeofConduct.ThereportablemattersmaybedisclosedtotheWhistleOf�icerwhichoperatesunderthesupervisionoftheAuditCommittee.EmployeesmayalsoreporttotheChairmanoftheAuditCommittee.Duringtheyearunderreview,noemployeewasdeniedaccesstotheAuditCommittee.

v.AccountingTreatment

The �inancial statements for the year 2015-16 have been prepared in accordancewith the applicable accountingstandardsprescribedbyTheInstituteofCharteredAccountantsofIndiaandtherearenodeviations.

vi.SeparateMeetingoftheIndependentDirector

AsperCompaniesAct,2013andtheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,theIndependentDirectorsarerequiredtoholdatleastoneseparatemeetinginayear.Accordingly,ameetinghadbeen

thheldon14 ofMarch,2016.

vii.FamiliarizationProgrammeforIndependentDirector

ThedirectorswillbeintroducedtoalltheBoardmembersandtheseniormanagementpersonnelsuchasChiefFinancial


SITASHREE


Of�icer,CompanySecretaryandVariousDepartmentheadsindividuallytoknowtheirrolesintheorganizationandtounderstandtheinformationwhichtheymayseekfromthemwhileperformingtheirdutiesasaDirector.AndmeetingmaybearrangedforIndependentDirectorswithaforesaidof�icialstobetterunderstandthebusinessandoperationoftheCompany.AspartofcontinuousupdatingandfamiliarizationwiththeCompany,everyIndependentDirectorwillbetaken for visits to the factory ormanufacturing units and other branch of the companywhere of�icials of variousdepartments apprise them of the operational and sustainability aspects of the plants to enable them to have fullunderstandingon theactivitiesof theCompanyand initiatives takenonsafety,qualityetc.TheCompanymayalsocirculatenewsandarticlesrelatedtotheindustryfromtimetotimeandmayprovidespeci�icregulatoryupdates.TheProgramme to familiarize the directors of the company was held on 14.03.2016; further the details of suchfamiliarizationprogrammesimpartedtoIndependentDirectorsarepostedonthewebsiteoftheCompanyandcanbeaccessedathttp://www.sitashri.com/docs/policies/familiarization_prog_det.pdf.

viii.Commoditypricerisks&hedgingactivities

During theyearunderreview, theCompanywasnot involved in the trading incommodityexchange;however, thecompanyisinvolvedinhedgingactivitiesw.r.t.theImportandExportofproducts.

ix.Compliance

MandatoryRequirements:

The Company is fully compliedwith the applicablemandatory requirements of the SEBI (Listing Obligations andDisclosureRequirements)Regulations,2015.

AdoptionofNon-MandatoryRequirements:

Movingtowardstheregimeofbestcorporategovernancepractices,thecompanyhadappointedseparatepersonstothepostofChairmanandManagingDirector/CEOandhadalsoadoptedprocedureforreportingbytheInternalAuditordirectlytotheAuditCommittee.

x.CEO/CFOCerti�ication:

TheMD&CFOhaveissuedcerti�icatepursuanttotheprovisionsRegulation17(8)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations, 2015 certifying that the �inancial statementsdonot contain anymateriallyuntruestatementandthesestatementsrepresentatrueandfairviewoftheCompany’saffairs.Thesaidcerti�icateisannexedandformspartoftheAnnualReport.

IX.ReconciliationofShareCapitalAuditReport

Aquali�iedPracticingCompanySecretarycarriedoutReconciliationofShareCapitalAudittoreconcilethetotaladmittedcapitalwithNSDLandCDSLandthetotalissuedandlistedcapital.Theauditcon�irmsthatthetotalissued/paidupcapitalisinagreementwiththetotalnumbersofsharesinphysicalformandthetotalnumberofdematerializedsharesheldwithNSDLandCDSL.

X.MeansofCommunication

TheCompanygenerallypublishesquarterlyunauditedandannualauditedresultsinSixnewspapersi.e.(1)FreePress(2)NavShakti(3)TheFinancialExpress(4)NavBharat(5)MumbaiLakshadweep(6)BusinessStandardandithasbeenintimatedtobothStockExchangesimmediatelyafterapprovaloftheBoard.

Theannouncements,quarterlyresults,ShareholdingPattern,Presentationsmadetoinstitutionalinvestors/analysts(ifany) etc. of the Company are regularly �iled by the company and are also available on the website of NSE(www.nseindia.com),BSE(www.bseindia.com)andalsoatthewebsiteoftheCompanyatwww.sitashri.com.

TheCompanyalsoinformsbywayofapressrelease,allmatterswhichinitsopinionarematerialandofrelevancetotheshareholdersoftheCompany.

Managementdiscussionandanalysisreportisformingpartofthisreport.

SEBI Complaints Redress System (SCORES): The investor complaint(s) are processed in a centralized web basedcomplaintsredresssystem.Thesalientfeaturesofthissystemare:Centralizeddatabaseofallcomplaints,OnlineuploadofActionTakenReports(ATRs)bytheconcernedcompaniesandonlineviewingbyinvestorsofactionstakenonthecomplaintanditscurrentstatus.


SITASHREE


XI.Subsidiaries

Thecompanydoesn’thaveanysubsidiaryduringtheperiodunderreview.

XII.DetailsofNon-Compliance:

TheCompanyhasfullycompliedwiththerequirementofcorporategovernancereportasmentionedinsubparas(2)to(10)ofPartCofScheduleVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

XIII. Discretionary Requirements under Part E of Schedule II of SEBI (Listing Obligations and DisclosureRequirements)Regulation,2015:

ThestatusofcompliancewithdiscretionaryrecommendationsofthesaidscheduleoftheSEBI(ListingObligationsandDisclosureRequirements)Regulation,2015isprovidedbelow:

(i) Non-ExecutiveChairpersonOf�ice:ChairpersonofthecompanyisExecutiveDirectorandhencethesameisnot applicable.

(ii) ShareholdersRight:As thequarterlyandhalfyearly �inancialperformancealongwithsigni�icanteventsare publishedinthenewspapersandarealsopostedontheCompany’swebsite,thesamearenotbeingsenttothe shareholders.

(iii)Modi�iedOpinioninAuditorsReport:TheCompany’s�inancialstatementfortheyear2015-16doesn’tcontain anymodi�iedauditopinion.

(iv) SeparatePostofChairpersonandCEO:TheChairmanoftheboardisanExecutivedirectorandhispositionis separatefromthatoftheManagingDirector.

(v) ReportingofInternalAuditor:TheInternalAuditorreportstotheAuditCommittee.

XIV.Af�irmationandDisclosure:

AllthemembersoftheBoardandtheManagementCommitteehaveaf�irmedtheircompliancewiththeCodeofConductstason31 March,2016andadeclarationtothateffect,signedbytheManagingDirectorandChiefFinancialOf�icer(CFO)

isattachedandformspartofthisReport.

ThemembersoftheManagementCommitteehavemadedisclosuretotheBoardofDirectorsrelatingtotransactionswithpotential con�lict of interestwith theCompany.Therewerenomaterial, �inancial or commercial transaction,betweentheCompanyandmembersoftheManagementCommitteethatmayhaveapotentialcon�lictwiththeinterestoftheCompanyatlarge.

Alldetailsrelatingto�inancialandcommercialtransactionswhereDirectorsmayhaveapecuniaryinterestareprovidedtotheBoardandtheinterestedDirectorsneitherparticipateinthediscussionnorvoteonsuchmatters.

The Company has compliedwith the requirements speci�ied in Regulations 17 to 27 and clauses (b) to (i) of theRegulation46(2)oftheListingRegulations.

XV.DisclosureonWebsite:

FollowinginformationhasbeendisseminatedonthewebsiteoftheCompanyatwww.sitashri.com;

1.DetailsofbusinessoftheCompany

2.TermsandconditionsofappointmentofIndependentDirectors

3.CompositionofvariousCommitteesofBoardofDirectors

4.CodeofConductforBoardofDirectorsandSeniorManagementPersonnel

5.Detailsofestablishmentofvigilmechanism/WhistleBlowerpolicy

6.CriteriaofmakingpaymentstoNon-ExecutiveDirectors

7.PolicyondealingwithRelatedPartyTransactions

8.Policyfordetermining‘material’subsidiaries

9.DetailsoffamiliarizationprogrammesimpartedtoIndependentDirectors

10.Policyfordeterminationofmaterialityofevents


SITASHREE


XVI.GeneralShareholderInformation

tha) AGMDate,TimeandVenue : 30 September,2016at10.30A.M. 332/4/2,R.D.UdyogNagar,PaldaNemawarRoad Mathurawala’sColony,Indore(M.P.)-452020

st stb) FinancialYear : 1 April,2015to31 March,2016

c) FinancialCalendar(2016-17)

Financialreportingfor

th Quarterending30 June,2016 : SecondWeekofAugust’2016th Quarterending30 September,2016 : SecondweekofNovember’2016st Quarterending31 December,2016 : SecondWeekofFebruary’2017

st QuarterandYearending31 March,2017 : LastweekofMay’2017

st thd) DateofBookClosure : 21 September,2016to30 September,2016 (Bothdaysinclusive)

e) Dividendpaymentdate: : N.A.

f) ListingofEquitySharesonStockExchanges: : BSELimited,Mumbai NationalStockExchangeofIndiaLimited,Mumbai

g) StockCode : BSE-532961 NSE-SITASHREE

h) ISINNo. : INE686I01011

i) CIN : L15314MP1996PLC010741

StockMarketData MonthlyStockmarketdatainboththeStock Exchangesaregivenbelow:-

MarketDataOfEquitySharesAtNationalStockExchange MarketDataOfEquitySharesAtBombayStockExchange

Date Highprice Lowprice Totaltradedquantity Date Highprice Lowprice Totaltradedquantity

Apr-15 21 15.35 1,85,192 Apr-15 21.35 15.5 3,28,664

May-15 16.75 12.6 1,24,768 May-15 16.95 12.8 2,65,528

Jun-15 14.05 11.4 84087 Jun-15 13.9 11.36 1,06,932

Jul-15 14.4 11.5 1,24,805 Jul-15 14 11.7 1,47,441

Aug-15 19.15 11.5 2,26,530 Aug-15 19.6 11.75 4,65,886

Sep-15 12.95 10.9 52101 Sep-15 13 10.84 80,452

Oct-15 14.2 11 1,26,213 Oct-15 14.12 11 1,46,103

Nov-15 14.2 11.7 1,03,407 Nov-15 14.19 12 1,28,227

Dec-15 15.6 12.5 1,64,810 Dec-15 15.23 12.3 3,01,143

Jan-16 16.95 12.45 1,88,138 Jan-16 16.8 12.57 2,80,089

Feb-16 14.1 9.5 62151 Feb-16 14.05 9.25 1,19,466

Mar-16 11.25 8.7 49504 Mar-16 11.24 8.85 2,04,113

YEAR 21.00 8.7 1491706 YEAR 21.35 8.85 2574044


SITASHREE


Noneofthesecuritiesweresuspendedfromtrading,duringtheperiodunderreview.

Performanceincomparisontobroadbasedindices:

BSESensexVsSSFPLSharePrice(Indexed) NSENiftyVsSSFPLSharePrice(Indexed)

j)RegistrarandTransferAgents M/s.AnkitConsultancyPrivateLimited(ForPhysicalandElectronicBoth) 60,ElectronicComplex,Pardeshipura Indore(M.P.)452010 Tel.:+91-731-2551745-46,4065799,3198601-602 Fax:+91-731-4065798 Email–[email protected]

TheSharetransferandde-materializationrelatedactivitiesarebeinghandledbytheShareTransferAgent.

k)ShareTransferSystem

ToexpeditethetransferofsharesheldinphysicalmodethepowerstotransferhavebeendelegatedtoSEBIregisteredsharetransferagentsM/s.AnkitConsultancyPrivateLimited.Thetransferswhicharecompleteinallrespectaretakenupforapprovalgenerallyeverytendaysandthetransfer/transmissionapprovedbythedelegatestothetransferorwithin21days.Further,w.r.t. thecomplianceofsharetransfersysteminatimelymannerthehalfyearly/quarterlycerti�icateasprescribedunderClause7(3)oftheSEBI(ListingObligationandDisclosureRequirements)Regulations,2015hasalsobeensubmittedtoconcernStockExchanges.

The Company has signed necessary agreements with two depositories currently functional in India viz. NationalSecuritiesDepositoryLimitedandCentralDepositoryServices(India)Limited.Thetransferofsharesindepositorymodeneednottobeapprovedbythecompany.

stl)Distributionofshareholdingason31 March,2016forEquityShares:

SlabofShareholding No.ofshareHolder % No.ofShares %

0-5000 9401 97.35 4380733 15.7

5001-10000 118 1.22 889947 3.19

10001-20000 61 0.63 839558 3.01

20001-30000 18 .18 448861 1.61

30001-40000 9 .09 308033 1.10

40001-50000 8 0.08 361048 1.29

50001-100000 7 0.07 441385 1.58

100001-andabove 34 .35 20164609 72.4

Total 9656 100 27834174 100


SITASHREE


Jul Aug Sep Oct Nov Dec 2016 Feb Mar Apr

40%

20%

0%

-20%

-40%

SitaShreeFoodProductsLtd.BSEIndexed

200%

100%

0%

-100%

-200%

Jul 2016

BSEIndexedSitaShreeFoodProductsLtd.

stm)Accordingtocategoriesofshareholdingsason31 March,2016forEquityShares:

Sr.No. CATEGORY NO.OFSHARES %OFHOLDING

A PROMOTER’SHOLDING

1. Promoters

-IndianPromoters 12763082 45.85

-ForeignPromoters - -

2. Personsactinginconcert - -

Sub-Total 12763082 45.85

B NONPROMOTERSHOLDING

3. InstitutionalInvestors - -

a. MutualfundsandUTI - -

b. Banks,FinancialInstitutions,InsuranceCompanies(Central/State Govt.Institutions/Non-governmentInstitutions) - -

c. FII - -

Sub-Total - -

4. Others -

a. PrivateCorporateBodies 7604457 27.32

b. NRIs/OCBs 108621 0.39

c. IndianPublic 7339511 26.36

d. AnyOther(ClearingMember) 18503 0.07

Sub-Total 15071092 54.15

GRANDTOTAL 27834174 100

n)Disclosurewithrespecttodematsuspenseaccount/unclaimedsuspenseaccount

Duringtheyearunderreviewnoneoftheshareswerelyinginthedemat/unclaimedsuspenseaccount.

o)Dematerializationofshares

st Ason31 March,2016except10sharesallthesharesoftheCompanyareindematerializedform.

p)OutstandingGDRs/ADRs/Warrantsoranyconvertibleinstruments

Noinstrumentsarependingforconversion.

q)ListingFees

AnnualListingFeesfortheFinancialYear2016-17,hasbeenpaidtorespectiveStockExchanges.

r)PlantLocations:

PlantI - 332/4/2, R.D. Udyog Nagar, Palda Nemawar Road, Mathurawala’s Colony, Indore (M.P.) – FlourDivision

PlantII - Khasra.No.5/1,GramBarlaiJangir,PostKshipra,TehsilSanwer,Dist.Indore (M.P.)–SoyaDivision

s)AddressforInvestor’sCorrespondence:


SITASHREE


1)Company ComplianceOf�icer


332/4/2,R.D.UdyogNagar,PaldaNemawarRoad,Mathurawala’s Colony,Indore,(M.P.)-452020

Tel0731-2439913,2439924Fax:+91-0731-2439931

Emailat:complianceof�[email protected]

2)RegistrarandShareTransferAgent AnkitConsultancyPrivateLimited

60,ElectronicComplex,Pardeshipura,Indore(M.P.)452010

Tel.:+91-731-2551745-46,4065799,3198601-602 Fax:+91-731-4065798

Emailat:[email protected]

DECLARATION

AsprovidedunderClause17to27andclauses(b)to(i)ofsub-regulation(2)ofregulation46andParaC,DandEofScheduleVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015withthestockexchanges,itis hereby declared that all boardmembers and seniormanagement personnel of the Company have af�irmed the

stcomplianceofCodeofConductfortheyearended31 March,2016.

ForSitaShreeFoodProductsLimited

Sd/-

AshishGoyal

ManagingDirector

Din:00144899

ANNEXURE-VI

COMPLIANCECERTIFICATE

(PursuanttoRegulation17(8)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015)

To,

TheBoardofDirectors


332/4/2R.D.UdyogNagar,

PaldaNemawarRoad,Mathurawala’sColony,

Indore(M.P.)–452020

WeAshishGoyal,ManagingDirectorandAnoopGoyal,ChiefFinancialof�iceroftheCompanydoherebycertifythat:

stA. Wehavereviewed�inancialstatementsandthecash�lowstatementfortheyearended31 March,2016andthat tothebestofourknowledgeandbelief:

i) These statements do not contain anymaterially untrue statement or omit anymaterial fact or contain statementsthatmightbemisleading.

ii) ThesestatementstogetherpresentatrueandfairviewoftheCompany’saffairsandareincompliancewith existingaccountingstandards,applicablelawsandregulations.

st B. Tothatbestofourknowledgeandbelief,notransactionsenteredintobytheCompanyduringtheyearended31 March,2016arefraudulent,illegalorviolativeoftheCompany’sCodeofConduct.

C. Weacceptresponsibilityforestablishingandmaintaininginternalcontrolsfor�inancialreportingandwehave evaluatedtheeffectivenessofinternalcontrolssystemsoftheCompanypertainingto�inancialreportingandwe havedisclosedtotheauditorsandtheauditcommittee,de�iciencies inthedesignoperationofsuchinternal controls,ifany,ofwhichweareawareandthestepshavebeentakentorectifythesede�iciencies.


SITASHREE


D. WehaveindicatedtotheauditorsandtheAuditCommitteethatthereareno:

i) Signi�icantchangesininternalcontrolover�inancialreportingduringtheyear.

ii) Signi�icantchangesinaccountingpoliciesduringtheyearrequiringdisclosureinthenotestothe �inancial statements;and

iii)Instancesofsigni�icant fraudofwhichwehavebecomeawareandthe involvementtherein, ifany,of the managementoranyemployeehavingasigni�icantroleintheCompany’sinternalcontrolsystemover�inancial reporting.

ForSitaShreefoodProductsLimited ForSitaShreefoodProductsLimited

Sd/- Sd/-

AshishGoyal AnoopGoyal

ManagingDirector WholeTimeDirector&CFO

Din:00144899 Din:01887409

Date:31.08.2016

Place:Indore

ANNEXURE-VII

CERTIFICATE

ToTheMembersofM/sSitaShreeFoodProductsLimited,Indore

WehaveexaminedthecomplianceoftheconditionsofCorporateGovernancebyM/sSitaShreeFoodProductsLimitedfortheyearendedMarch31,2016asstipulatedinClause17to27andclauses(b)to(i)ofsub-regulation(2)ofregulation46andParaC,DandEofScheduleVoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015ofthesaidcompanywithstockexchange(s)inIndia.

ThecomplianceoftheconditionsofCorporateGovernanceistheresponsibilityofthemanagement.Ourexaminationwaslimitedtotheprocedureandimplementationthereof,adoptedbythecompanyforensuringthecomplianceoftheconditionsofCorporateGovernance.Itisneitheranauditnoranexpressionoftheopiniononthe�inancialstatementofthecompany.

Inouropinionandtothebestofourinformationandexplanationsgiventous,wecertifythattheCompanyhascompliedwith the conditions of Corporate Governance as stipulated in the abovementioned SEBI (Listing Obligations andDisclosureRequirements)Regulations,2015.

stWestatethatinrespectofinvestorgrievancesreceivedduringtheyearended31 March,2016noinvestorgrievancesarepending against the company as on date as per the records maintained by the company and presented to theinvestors/shareholdersgrievancecommittee.

Wefurtherstatethatsuchcomplianceisneitheranassuranceastothefurtherviabilityofthecompanynortheef�iciencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.

ForP.S.Tripathi&Associates CompanySecretaries

Sd/- PratikTripathiDate:31.08.2016 PartnerPlace:Indore C.P.No.5358


SITASHREE


ANNEXURE-VIII

FormNo.MR-3

SECRETARIALAUDITREPORTSTFORTHEFINANCIALYEARENDED31 MARCH,2016

[PursuanttoSection204(1)oftheCompaniesAct,2013andRuleNo.9ofthe

Companies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]

To,TheMembers,SitaShreeFoodProductsLimited

WehaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyM/sSitaShreeFoodProductsLimited(hereinaftercalledtheCompany).SecretarialAuditwasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.

Basedonourveri�icationofM/sSitaShreeFoodProductsLimited’sbooks,papers,minutebooks,formsandreturns�iledandotherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany,itsof�icers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,weherebyreportthatinouropinion,the

stCompanyhas,duringtheauditperiodendedon31 March,2016,hascompliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:

1.Wehaveexaminedthebooks,papers,minutebooks,formsandreturns�iledandotherrecordsmaintainedbystSitaShreeFoodProductsLimitedfortheperiodendedon31 March,2016accordingtotheprovisionsof:

(i) TheCompaniesAct,2013(theAct)andtheRulesmadethereunder;

(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtheRulesmadethereunder;

(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;

(iv) TheForeignExchangeManagementAct,1999andtheRulesandRegulationsmadethereundertotheextentof Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings, (no such transactionsreported);

(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct, 1992(‘SEBIAct’):-

(a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

(b)TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,1992;

(c)TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009;

(d)TheSecuritiesandExchangeBoardofIndia(EmployeeStockOptionSchemeandEmployeeStockPurchase Scheme)Guidelines,1999(NotapplicabletotheCompanyduringtheAuditPeriod);

(e) TheSecuritiesandExchangeBoardof India(IssueandListingofDebtSecurities)Regulations,2008(Not applicabletotheCompanyduringtheAuditPeriod);

(f)TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations, 1993regardingtheCompaniesActanddealingwithclient;

(g)TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009(Notapplicableto theCompanyduringtheAuditPeriod);and

(h)TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998(Notapplicabletothe CompanyduringtheAuditPeriod);

(vi) OtherLawsspeci�icallyapplicabletotheCompany,asinformedbymanagement:-

(a) PreventionofFoodAdulterationAct,1954;

(b) FoodSafetyandStandardsAct,2006andRulesandRegulationsmadethereunder,totheextent applicabletotheCompany;


SITASHREE


2.Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

(i) SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndia.

(ii) The Listing Agreements entered into by the Company with Bombay Stock Exchange and National Stock Exchange.

During the period under review, the Company has materially complied with the provisions of the Act, Rules, Regulations,Guidelines,Standards,etc.mentionedabovesubjecttofollowings:-

a. CompanyhasobtainedListingpermissionfortheequitysharesissuedonpreferentialbasisinearlieryears, after31.03.2016but,tradingapprovalyettobeobtained;

b. FilingofE-Formsw.r.t.changeinAuthorizedShareCapitalandallotmentinduringtheyearandpaymentof stampdutyyettobedone.

c. Non�ilingofCostAuditReportfortheFinancialYear2014-15.

3.Wefurtherreportthat:

TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsandIndependentDirectors.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.

AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvanceorwithshorterperiod,whereverrequired,andasystemexistsforseekingandobtaining further information and clari�ications on the agenda items before the meeting and for meaningfulparticipationatthemeeting.

Majoritydecisioniscarriedthroughwhilethedissentingmembers’viewsarecapturedandrecordedaspartoftheminutes,whereverexist.

4.WefurtherreportthatthereareadequatesystemsandprocessesinthecompanycommensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

5. We further report that during the audit period the company has issued and allotted Preference Shares onpreferentialbasisduetostipulationofBankerbyconversionofunsecuredloanbut�illingofrelatedformswithROCisyettobedone.

ForP.S.Tripathi&Associates

CompanySecretaries

Sd/-

Place:Indore PratikTripathi

Date:31.08.2016 Partner

C.P.No.5358

Note:ThisreportistobereadwithAnnexuretoSecretarialAuditReportofevendatewhichisannexedwiththisreportandformsanintegralpartofthisreport.


SITASHREE


AnnexuretoSecretarialAuditReport

To,

TheMembers,


Ourreportofevendateistobereadalongwiththisletter.

1. Maintenances of secretarial records are the responsibility of the management of the Company. Ourresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.

2. Wehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsofthesecretarialrecords.Theveri�icationwasdoneontestbasistoensurethatcorrect factsarere�lected insecretarial records.Webelieve that theprocessesandpractices,we followedprovideareasonablebasisforouropinion.Ourreportisbasedonsaidsecretarialrecords.

3. Wehavenotveri�iedthecorrectnessandappropriatenessof�inancialrecordsandBooksofAccountsoftheCompany.

4. The compliance of the provisions of corporate and other speci�ically applicable laws, rules, regulations,standardsistheresponsibilityofmanagement.Ourexaminationwaslimitedtotheveri�icationofproceduresontestbasis.WehavenotgonethroughthelawswhicharegeneralinnatureandapplicabletotheCompany.

5. TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityoftheCompanynoroftheef�icacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

6. Whereeverrequired,wehaveobtainedthemanagementrepresentationanddeclarationaboutthecomplianceoflaws,rulesandregulationandhappeningofeventsetc.

ForP.S.Tripathi&Associates

CompanySecretaries

Sd/-

Place:Indore PratikTripathistDate:31 August2016 Partner

C.P.No.5358


SITASHREE


ANNEXUREIX

ANNUALREPORTONCSRACTIVITIES1. Abriefoutlineof the company’sCSRPolicy, includingoverviewofprojectsorprogramsproposed tobe

undertakenandareferencetotheweb–linktotheCSRPolicyandprojectsorprograms. CSRPolicyaimedatdevelopingmeaningfulandeffectivestrategiesforengagingwithallstakeholders,Consultwith

local communities to identify effective and culturally appropriate development goals, Partner with credibleorganizationsliketrusts,foundationetcincludingnon-governmentalorganizations,Checkandpreventpollution,recycle,manageandreducewaste,managenaturalresourcesinasustainablemannerandtoensureef�icientuseofenergyandenvironmentfriendlytechnologies.

2. TheCompositionoftheCSRCommittee. Thecorporatesocialresponsibilitycommittee(“theCSRcommittee”)oftheBoardisresponsibleforoverseeingthe

executionof theCompany’sCSRpolicyandensuring that theCSRobjectivesof theCompanyaremet.TheCSRcommitteecomprisesoneindependentdirectorandtheCFOandMD.ThemembersoftheCSRcommitteeare:Name DesignationShriOmkarPrasadTiwari* ChairmanShriAshishGoyal** MemberShriAnoopGoyal MemberShriSantoshKumarGupta***

*Resignedfromtheboardw.e.f.29.06.2016.**AppointedasChairmanw.e.f.31.08.2016.***AppointedasMemberw.e.f.31.08.2016.3. AverageNetPro�itofthecompanyforlastthree�inancialyears:Rs.38467500/-4. PrescribedCSRexpenditure(twopercentoftheamountasinitem3above):Rs.769350/-.5. DetailsofCSRspentduringthe�inancialyear. (a) Totalamounttobespentforthe�inancialyear;Rs.769350/-. (b) Amountunspent,ifany;ReferPointNo.6 (c) Mannerinwhichtheamountspentduringthe�inancialyearisdetailedbelow:(1) (2) (3) (4) (5) (6) (7) (8)Sr. CSR Sectorin Projectsor Amount Amountspentonthe Cumulative Amountspent:No. projectorwhichthePrograms outlay projectsorprograms expenditure Director activity Projectis (1)Localareaorother (budget) Sub-heads: uptothe through identi�ied covered. (2)SpecifytheStateandprojector 1)Directexpenditure reporting implementing districtwhereprojects programs onprojectsor period. agency orprogramswas wise Programs. undertaken 2)Overheads:

----------------------------------------NIL-------------------------------------------*Givedetailsofimplementingagency6.Reasonfornotspendingtheamount(incasetheCompanyhasfailedtospendtwopercentoftheaveragenetpro�itofthelastthree�inancialyearsoranypartthereof):

TheCompanyiscommittedtofocusoninclusivegrowthandimprovelivesbycontributingtowardscommunitiesaroundwhichitoperates.TheoverallCSRexpenditurewasNILagainstgrossamountrequiredtobespentofRs.769350/-duringtheF.Y.2015-16.DuringtheF.Y.2015-16,duetothecontinuousrequirementsoffundsforthebusinessoperationsoftheCompanyandduetoincreasedinterestburden,theCompanycouldn’tspendtheamountwhichwasrequiredtobespent.

7.TheCSRCommitteeoftheCompanyherebycon�irmsthattheimplementationandmonitoringoftheCSRpolicy,isincompliancewithCSRobjectivesandpolicyoftheCompany.

ForandonbehalfoftheBoardofDirectorsof SitaShreeFoodProductsLimited Sd/- AshishGoyalIndore ManagingDirector&Date:31.08.2016 ChairmanofCSRCommittee DIN:00144899


SITASHREE


M.K.SHAH&ASSOCIATESCHARTEREDACCOUNTANTS207CITYPLAZA,NEARREGALSQUARE,INDOREPhone:(O)2536214,4048445,(m)9425057217E-mail:[email protected]

INDEPENDENTAUDITOR’SREPORT

To,TheMembersSitaShreeFoodProductsLtd.,INDORE

ReportontheStandaloneFinancialStatements

WehaveauditedtheaccompanyingStandalone�inancialstatementsofSitaShreeFoodProductsLimited,whichcomprisetheBalanceSheetasatMarch31,2016,theStatementofPro�itandLossandCashFlowStatementfortheyearended,andasummaryofsigni�icantaccountingpoliciesandotherexplanatoryinformation.

Management’sResponsibilityfortheStandaloneFinancialStatements

TheCompany’sBoardofdirectors is responsible for thematters stated in section134(5)of theCompanies act2013(“theact”)withrespecttothepreparationoftheseStandalone�inancialstatementsthatgiveatrueandfairviewofthe�inancialstatements,�inancialperformanceandcash�lowsofthecompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheaccountingstandardsspeci�iesinsection133oftheact,readwithrule7of theCompanies (Accounts)Rules,2014.This responsibilityalso includes themaintenanceof adequateaccountingrecordsinaccordancewiththeprovisionsoftheactforsafeguardingtheassetsofthecompanyandforpreventinganddetectingfraud&otherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentandestimatesthatarereasonableandprudent;anddesignimplementationandmaintenanceofinternal�inancialcontrol,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessofaccountingrecords,relevanttothepreparationandpresentationofStandalone�inancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’sResponsibility

OurresponsibilityistoexpressanopinionontheseStandalone�inancialstatementsbasedonouraudit.

Wehave taken intoaccount theprovisionsof theact,accountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheactandtherulesthereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditingspeci�iedundersection143(10)oftheact.Those standards require that we complywith ethical requirements and plan and perform the audit to obtainreasonableassuranceaboutwhethertheStandalone�inancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theStandalone �inancial statements. The procedures selected depend on the auditor’s judgment, including theassessmentoftherisksofmaterialmisstatementofthe�inancialstatements,whetherduetofraudorerror.Inmakingthose risk assessments, the auditor considers internal control relevant to the Company’s preparation of theStandalone�inancialstatementsthatgivetrueandfairviewinordertodesignauditproceduresthatareappropriatein thecircumstances.Anauditalso includesevaluating theappropriatenessofaccountingpoliciesusedandthereasonableness of the accounting estimates made by company’s directors, as well as evaluating the overallpresentationoftheconsolidated�inancialstatements.

Webelievethattheauditevidencewehaveobtainedissuf�icientandappropriatetoprovideabasisforourauditopinionontheStandalone�inancialstatements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaidStandalone�inancialstatements,givetheinformationrequiredbytheActinthemannersorequiredandgiveatrue


SITASHREE


andfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:

(a) InthecaseoftheBalanceSheet,ofthestateofaffairsoftheCompanyasatMarch31,2016;

(b) InthecaseofthePro�itandLossAccount,ofthepro�it/lossfortheyearendedonthatdate;and

(c) InthecaseoftheCashFlowStatement,ofthecash�lowsfortheyearendedonthatdate.

ReportonOtherLegalandRegulatoryRequirements

1. AsrequiredbytheCompanies(Auditor’sReport)Order,2015issuedbytheCentralGovernmentofIndiaintermsofsub-section(11)ofsection143oftheAct(hereinafterreferredtothe“Order”),andonthebasisofsuchchecksofthebooksandrecordsoftheCompanyasweconsideredappropriateandaccordingtotheinformationandexplanationsgiventous,wegiveintheAnnexureastatementonthemattersspeci�iedinparagraphs3and4oftheOrder.

2. Asrequiredbysection143(3)oftheAct,wereporttotheextentapplicable,that:

a. Wehaveobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposeofouraudit;

b. InouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasappearsfromourexaminationofthosebooks.

c. TheBalanceSheet,StatementofPro�itandLoss,andCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount.

d. Inouropinion, theBalanceSheet,StatementofPro�itandLoss,andCashFlowStatementcomplywiththeAccountingStandardsreferredtoinsection133oftheCompaniesAct,2013,readwithrule7oftheCompanies(Accounts)Rules2014.

e. OnthebasisofwrittenrepresentationsreceivedfromthedirectorsasonMarch31,2016,andtakenonrecordbytheBoardofDirectors,noneofthedirectorsisdisquali�iedasonMarch31,2016,frombeingappointedasadirectorintermsofsub-section(2)ofsection164oftheCompaniesAct,2013.

f. Withrespecttotheadequacyoftheinternal�inancialcontrolsover�inancialreportingoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportin‘AnnexureB’;and

g. Withrespect totheothermatterstobe included intheAuditor’sreport inaccordancewithRule11of theCompanies(AuditandAuditors)Rules,2014inouropinionandtobestofourinformationandaccordingtotheexplanationgiventous.

1) The company has disclosed the impact of pending litigation on its �inancial position in its �inancial statements.

2) Thecompanyhasmadeprovisions,asrequiredundertheapplicablelaworaccountingstandards,for materialforeseeablelosses,ifany,onlongtermcontractsincludingderivativecontracts.

3) Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheinvestor’seducation andprotectionfundbythecompany.

For:M.K.SHAH&ASSOCIATES

CHARTEREDACCOUNTANTS

(Regn.No.002077C)

Place:Indore (M.K.SHAH)

Date:06/06/2016 PROPRIETOR

M.NO.400-71199


SITASHREE


M.K.SHAH&ASSOCIATESCHARTEREDACCOUNTANTS207CityPlaza,RegalSquareINDORE–452001Phone:(O)2536214,4048445(m)9425057217E-mail:mkshah&[email protected]

ANNEXUREATOTHEAUDITORSREPORT

AnnexuretotheAuditor’sReport(referredtoinparagraph3ofourReportofevendatetothemembersofSitastShreeFoodProductsLtd.,IndoreontheFinancialStatementfortheyearended31 March,2016).

1.1. TheCompanyismaintainingproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationof�ixedassets.

1.2. Allthe�ixedassetshavebeenphysicallyveri�iedbythemanagementatreasonableintervalsandwhichisinouropinionisreasonablehavingregardstothesizeoftheCompany.Nomaterialdiscrepancieswerenoticedonsuchveri�ication.

1.3.ThetitledeedsofImmovablePropertyareheldinthenameofthecompany.Thediscrepanciesnoticedonphysicalveri�icationwerenotmaterialandhavebeendealtinbooksofaccounts

2. Theinventorieshavebeenphysicallyveri�iedatreasonableintervalsbythemanagement.Thediscrepanciesnoticedonphysicalveri�icationwerenotmaterialandhavebeendealtinbooksofaccounts.

3. Asinformedtous,thecompanyhasnotgrantedanyloans,securedorunsecured,tocompanies,�irmsorotherpartiescoveredintheregistermaintainedundersection189oftheCompaniesAct,2013.Accordingly,thesub-clauses(a),(b)and(c)arenotapplicabletothecompany.

4. Inouropinionandaccordingtotheinformationandexplanationsgiventous,therearenoloansandguaranteegrantedinrespectoftheprovisionsoftheSection185and186oftheCompaniesAct,2013;howeverbasedonourexaminationoftherecordsoftheCompanywereportthat investmentshasbeenmadeinaccordancewiththeprovisionofSection186oftheAct.

5. Accordingtotheinformationandexplanationsgiventous,theCompanyhasnotacceptedanydepositsintermsofdirectivesissuedbyReserveBankofIndiaandtheprovisionsofSections73to76oranyotherrelevantprovisionsoftheCompaniesAct,2013andtherulesframedthereunder.

6. WehavebroadlyreviewedthecostrecordsmaintainedbytheCompanypursuantsub-section(1)ofSection148oftheCompaniesAct,2013andareoftheopinionthatprimafacie,theprescribedaccountsandrecordshavebeenmadeandmaintained.

7.1.ThecompanyisgenerallyregularindepositingundisputedstatutoryduesincludingProvidentFund,EmployeesStateInsurance,IncomeTax,SalesTax,WealthTax,ServiceTax,DutyofCustoms,DutyofExcise,ValueAddedTax,Cessandanyotherstatutorydueswiththeappropriateauthoritiesandwehavebeeninformedthattherearenoarrearsofoutstandingstatutoryduesasatthelastdayofthe�inancialyearunderauditforaperiodofmorethansixmonthsfromthedatetheybecamepayable.ExceptSelfAssessmenttaxofRs.83,92,709/-forA.Y.2015-16istobepaidandinterestPayablethereon.

7.2.Accordingtotheinformationandexplanationsgiventous,therearenomaterialduesofwealthtaxandcesswhichhave not been deposited with the appropriate authorities on account of any dispute. However, according toinformationandexplanationsgiventous,thefollowingduesofincometax,andentrytaxandsalestaxhavenotbeendepositedbytheCompanyonaccountofdisputes:

NameofStatute NatureofDues Amount(inRs.)Periodtowhich Forumwheredisputeispending amountrelates

IncomeTaxAct,1961 IncomeTax 8,06,93,640/- A.Y.2012-13 CIT(Appeals)-II,Indore

MPCommercialTax VAT 4,79,01,733/- F.Y.2013-14 AdditionalCommissioner CommercialTax


SITASHREE


8.Accordingtotheinformationandexplanationsgiventous,theCompanyhasnotdefaultedinrepaymentofduestoa�inancialinstitution,bank.TheCompanydoesn’thaveanyborrowingbywayofdebenturesorfromgovernment.

9.Basedupontheauditproceduresperformedandaccordingtotheinformationandexplanationsgiventous,nofraudonorbythecompanyhasbeennoticedorreportedduringtheyearofouraudit.

10.Basedon our audit proceduresperformed for thepurpose of reporting the true and fair viewof the �inancialstatements and according to the information and explanations given by the management, we report that themanagerialremunerationhasbeenpaid/provided inaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofSection197readwithScheduleVtotheAct.

11.Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyisnotanidhicompany.Therefore,theprovisionsofClause3(xii)oftheOrderarenotapplicabletotheCompany.

12.According to the informationandexplanationsgiven tousandbasedonourexaminationof therecordsof theCompany,transactionswithrelatedpartiesareincompliancewithSection177and188oftheActwhereapplicableand details of such transactions have been disclosed in the �inancial statements as required by the applicableaccountingstandards.

13.1.AccordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecordsoftheCompanywereportthatthepreferentialallotmenthasbeenmadeinaccordancewiththeprovisionofSection42oftheCompaniesAct,2013.

13.2.AccordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecordsoftheCompanywereportthattheamountraisedthroughpreferentialallotmenthasbeenutilizedforthepurposeforwhichithasbeenraised.

14.According to the informationandexplanationsgiven tous andbasedonour examinationof the recordsof theCompany,theCompanyhasnotenteredintonon-cashtransactionswithdirectorsorpersonsconnectedwithhim.Accordingly,paragraph3(xv)oftheOrderisnotapplicable.

15.TheCompanyisnotrequiredtoberegisteredunderSection45-IAoftheReserveBankofIndiaAct,1934.



(Regn.No.002077C)

Place:Indore (M.K.SHAH)

Date:06/06/2016 PROPRIETOR

M.NO.400-71199


SITASHREE



ANNEXUREBTOTHEAUDITORSREPORT

ReportontheInternalFinancialControlsunderClause(i)ofsub-section3ofSection143oftheCompaniesAct,2013(‘Act’)

We have audited the internal �inancial controls over �inancial reporting of Sita Shree Food Products Limited (‘thestCompany’)asof31 March,2016inconjunctionwithourauditofthestandalone�inancialstatementsoftheCompanyfor

theyearendedonthatdate.

Management’sresponsibilityforInternalFinancialControls

TheCompany’smanagementisresponsibleforestablishingandmaintaininginternal�inancialcontrolsbasedontheinternalcontrolover�inancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternal�inancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandef�icientconductofitsbusiness,effectivemonitoringofthetransactions, toensurethatallassetsaresafeguardandprotectedagainst loss from unauthorized use or disposition including adherence to the Company’s polices, prevention anddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecordsandthetimelypreparationofreliable�inancialinformationasrequiredundertheCompaniesAct,2013.


OurresponsibilityistoexpressanopinionontheCompany’sinternal�inancialcontrolsover�inancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsover�inancialreporting(the“GuidanceNote”)andthestandardsonAuditingasspeci�iedundersection143(10)oftheAct,totheextentapplicabletoanauditofinternal�inancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequate internal �inancial controlsover �inancial reportingwereestablishedandmaintainedand if such controlsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternal�inancialcontrolssystemover�inancialreportingandtheiroperatingeffectiveness.Ourauditofinternal�inancialcontrolsover�inancialreportingincludesobtaininganunderstandingofinternal�inancialcontrolsover�inancialreporting,assessingtheriskthatamaterialweaknessexistsandtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthe�inancialstatements,whetherduetofraudanderror.

Webelievethattheauditevidencewehaveobtainedissuf�icientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternal�inancialcontrolssystemover�inancialreporting.

MeaningofInternalFinancialControlsoverFinancialReporting

Acompany’sinternal�inancialcontrolover�inancialreportingisaprocessdesignedtoprovidereasonableassuranceregarding thereliabilityof �inancial reportingand thepreparationof �inancial statements forexternalpurposes inaccordance with generally accepted accounting principles. A company’s internal �inancial control over �inancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyre�lectthetransactionsanddispositionsoftheassetsoftheCompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationof�inancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheCompanyarebeinginaccordancewithauthorizationsoftheManagementanddirectorsoftheCompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionoftheCompany’sassetsthatcouldhavea


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materialeffectonthe�inancialstatements.

InherentLimitationsofInternalFinancialControlsoverFinancialReporting

Becauseoftheinherentlimitationsofinternal�inancialcontrolsover�inancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Alsoprojectionsofanyevaluationoftheinternal�inancialcontrolsover�inancialreportingtofutureperiodsaresubjecttotheriskthattheinternal�inancialcontrolover�inancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternal�inancialcontrolssystemover�inancialreportingandsuchinternal�inancialcontrolsover�inancialreportingwereoperatingeffectivelyasatMarch31,2016,basedontheinternalcontrolover�inancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia



(Regn.No.002077C)

Place:Indore

Date:06/06/2016 (M.K.SHAH)

PROPRIETOR

M.NO.400-71199


SITASHREE


STSTANDALONEBALANCESHEETASAT31 MARCH,2016

(AmountinRs.)

S.NO.PARTICULARS NOTENO. ASAT31/03/2016 ASAT31/03/2015

I. EQUITYANDLIABILITIES

(1) SHAREHOLDERSFUND (a) SHARECAPITAL "01" 608,341,740 488,341,740 (b) RESERVE&SURPLUS "02" 351,879,498 361,935,463

(2) NONCURRENTLIABILITIES (a) LONGTERMBORROWINGS "03" 258,328,022 429,772,969 (b) DEFERREDTAXLIABILITY(NET) 85,360,710 73,929,589 (c) OTHERLONGTERMLIABILITIES "04" 1,610,130 1,610,130 (d) LONGTERMPROVISIONS "05" 1,151,759 1,045,979

(3) CURRENTLIABILITIES (a) SHORT-TERMBORROWINGS "06" 1,653,284,440 1,134,362,904 (b) TRADEPAYABLES "07" 1,729,330,645 582,398,742 (c) OTHERCURRENTLIABILITIES "08" 123,227,446 113,224,040 (d) SHORT-TERMPROVISIONS "09" 323,721 14,779,078 GRANDTOTAL 4,812,838,112 3,201,400,634

II. ASSETS NON-CURRENTASSETS

(1) (a) FIXEDASSETS (i)TANGIBLEASSETS "10" 827,205,267 880,773,099 (ii)INTANGIBLEASSETS 368,750 341,395 (iii)CAPITALWORK-INPROGRESS 18,949,900 18,949,900 (b) NON-CURRENTINVESTMENTS "11" 14,129,910 14,129,910 (c) LONG-TERMLOANSANDADVANCES "12" 67,703,766 66,536,144 (d) OTHERNON-CURRENTASSETS "13" 13,337,253 12,451,736

(2) CURRENTASSETS (a) INVENTORIES "14" 1,589,018,839 1,079,938,919 (b) TRADERECEIVABLES "15" 2,133,126,104 1,002,582,346 (c) CASHANDCASHEQUIVALENTS "16" 123,041,782 92,775,100 (d) SHORT-TERMSLOANSANDADVANCES "17" 19,951,173 23,390,039 (e) OTHERCURRENTASSETS "18" 6,005,368 9,532,046 GRANDTOTAL 4,812,838,112 3,201,400,634 ADDITIONALNOTESONFINANCIALSTATEMENT "27" SIGNIFICANTACCOUNTINGPOLICIES CASHFLOWSTATEMENT

INTERMSOFOURSEPARATEREPORTOFEVENDATEATTACHED WECERTIFYTOTHECORRECTNESSOFABOVE, FORM.K.SHAH&ASSOCIATES FORANDONBEHALFOFTHEBOARD CHARTEREDACCOUNTANT (Reg.No.002077C) DINESHAGRAWAL ANOOPGOYAL (M.K.SHAH) (CHAIRMAN) (WHOLE-TIMEDIRECTOR&CFO) PROPRIETOR M.NO.:400-71199 PLACE:INDORE CHITRANGDAVISHWAKARMA ASHISHGOYALDATE:06/06/2016 (COMPANYSECRETARY) (MANAGINGDIRECTOR)


SITASHREE


STANDALONEPROFITANDLOSSSTATEMENTFORTHEYEARENDED31STMARCH,2016

(AmountinRs.)

S.No. PARTICULARS NOTENO. ASAT31/03/2016 ASAT31/03/2015

I REVENUEFROMOPERATIONS "19" 7,571,429,215 5,776,468,059II OTHERINCOME "20" 46,828,263 32,391,968III TOTALREVENUE(I+II) 7,618,257,478 5,808,860,027

IV EXPENSES: COSTOFMATERIALCONSUMED "21" 7,263,900,409 5,393,686,353 CHANGEININVENTORIESOFFINISHEDGOODS WORK-IN-PROGRESSANDSTOCK-IN-TRADE "22" (210,064,040) (294,800,799) EMPLOYEEBENEFITSEXPENSES "23" 24,121,292 26,761,360 FINANCECOST "24" 208,067,020 205,538,195 DEPRICIATIONANDAMORTIZATIONEXPENSES "10" 58,860,653 59,401,101 OTHEREXPENSES "25" 271,673,266 347,861,959 TOTALEXPENSES 7,616,558,600 5,738,448,169 V PROFITBEFOREEXCEPTIONALAND EXTRAORDINARYITEMESANDTAX(III-IV) 1,698,878 70,411,858VI EXCEPTIONALITEMES "26" - 208,969VII PROFITBEFOREEXTRAORDINARYITEMES ANDTAX(V-VI) 1,698,878 70,202,889VIII EXTRAORDINARYITEMES - -IX PROFITBEFORETAX(VII-VIII) 1,698,878 70,202,889X TAXEXPENSES (1)CURRENTTAX 323,721 14,779,078 (2)DEFERREDTAX 11,431,121 30,815,448 11,754,843 45,594,526XI PROFIT/(LOSS)FORTHEPERIODFROM CONTINUINGOPERATIONS(IX-X) (10,055,965) 24,608,363XII PROFIT/(LOSS)FROMDISCONTINUINGOPERATIONS - -XIII TAXEXPENSESOFDISCONTINUINGOPERATIONS - -XIV PROFIT/(LOSS)FROMDISCONTINUING OPERATIONS(AFTERTAX)(XII-XIII) - -XV PROFIT/(LOSS)FORTHEPERIOD(XI+XIV) (10,055,965) 24,608,363 EARNINGSPEREQUITYSHARE: (1)BASIC (0.36) 0.88 (2)DILUTED (0.36) 0.88

ADDITIONALNOTESONFINANCIALSTATEMENT "27" SIGNIFICANTACCOUNTINGPOLICIES CASHFLOWSTATEMENT

INTERMSOFOURSEPARATEREPORTOFEVENDATEATTACHED WECERTIFYTOTHECORRECTNESSOFABOVE, FORM.K.SHAH&ASSOCIATES FORANDONBEHALFOFTHEBOARD CHARTEREDACCOUNTANT (Reg.No.002077C) DINESHAGRAWAL ANOOPGOYAL (M.K.SHAH) (CHAIRMAN) (WHOLE-TIMEDIRECTOR&CFO) PROPRIETOR M.NO.:400-71199 PLACE:INDORE CHITRANGDAVISHWAKARMA ASHISHGOYALDATE:06/06/2016 (COMPANYSECRETARY) (MANAGINGDIRECTOR)


SITASHREE


SIGNIFICANTACCOUNTINGPOLICIESONSTANDALONEFINANCIALSTATEMENTFORTHESTYEARENDEDAT31 MARCH2016

AccountingConvention

A) BasisofAccounting

1. TheaccountsoftheCompanyarepreparedunderthehistoricalcostconventionandinaccordancewithapplicableaccountingprincipleinIndiatheaccountingstandardissuedbytheInstituteofCharteredAccountantsofIndiaandtherelevantprovisionoftheCompaniesAct2013.Accountingpoliciesnotspeci�icallyreferredtoareconsistentwithgenerallyacceptedaccountingprinciples.

2. TheCompanyfollowsmercantilesystemofaccountingandrecognizesincomeandexpenditureonaccrualbasis.

3. SalesandOtherOperationalActivities

1) Revenueisrecognizedonlywhenitcanbereliablymeasuredanditisreasonabletoexpectultimatecollection.Interest income is recognized on time proportion basis taking into account the amount outstanding and rateapplicable.Thusrevenuefromsalesisrecognizedatthetimeofdispatchofgoodstocustomers.Salesotherthanmanufacturingsalesarerecordedatthetimeofdispatchandraisingtheinvoice.Salesareshownnetofsalesreturn.GovernmentBene�itLicenseincomeisalsorecognizedonreceiptbasis.

B) UseofEstimates

Thepreparationof �inancial statements requires certainestimatesandassumption tobemade thataffect thereportedamountofassetsandliabilitiesasonthedateofthe�inancialstatementsandthereportedamountofrevenues and expenses during the reporting period. Difference between the actual results and estimates arerecognizedintheperiodinwhichtheresultsareknown/materialized.

C) Inventory

Itemsofinventoriesaremeasuredatlowerofcostandnetrealizablevalueafterprovidingforobsolescence,ifany.Cost of inventories comprise of cost of purchase, cost of conversion and other costs includingmanufacturingoverheadsincurredinbringingthemtotheirrespectivepresentlocationandcondition.Costofrawmaterials,storesandspares,packingmaterials,tradingandotherproductsaredeterminedonlowerofcostornetrealizablevalue.Forrealestatesegmentmethodofvaluationofinventoryisdoneatstandardprice.

D)CashFlowStatements

Cash�lowstatementhasbeenpreparedbyusingIndirectMethodatperAS-3issuedbytheICAI.

E) ContingenciesandEventsoccurringaftertheBalanceSheetdate.

Accountingforcontingencies(gainsandlosses)arisingoutofcontractualobligationsaremadeonlyonthebasisofmutualacceptances.EventsoccurringafterthedateoftheBalanceSheetareconsidereduptothedateofapprovaloftheaccountsbytheBoardwherematerial.

F) PriorPeriodItems&ExtraOrdinaryItem

Income&ExpenseswhicharisesintheCurrentYearasaresultoferrororomissioninthepreparationofFinancialStatementofoneormorepriorperiodwereshownaspriorperiodadjustmentduringtheyearinNoteNo26(6)ofNoteson�inancialStatement.

G) Depreciation

DepreciationisprovidedonthebasisoflifeassignedtoeachassetinaccordancewithScheduleIIofthecompaniesact, 2013 earlier depreciation was provided on SLM basis accounting policy is changed to prepare �inancialstatements inaccordancewithchanges inCompaniesact2013.AssetsofRs.1,89,49,900/-arestill inworkinprogressthusdepreciationisnotrequiredtobeprovidedonthesame.

H) FixedAssets

Fixedassetsarestatedatcostofacquisition,lessaccumulateddepreciationandimpairmentloss,ifany.Allcosts,including�inancingcoststillcommencementofcommercialproductionarecapitalizedonappropriatebasistotheAssets.

I) ForeignCurrencyTransactions

Companyhasenteredintoexportsaleduringtheperiodandtherebyearningforeignexchange.Foreigncurrencytransactionsarerecordedbyapplyinganexchangerateatthetimeofdateoftransactions.

VALUEOFIMPORTONCIFBASISINRESPECTOF

Particular CURRENTYEAR CURRENTYEAR (Rs.InLacs) (Rs.InLacs) 2015-16 2014-15 Goods 1586.43 1962.93


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VALUEOFEXPORTONCIFBASISINRESPECTOF:

Particular CURRENTYEAR PREVIOUSYEAR

(Rs.InLacs) (Rs.InLacs)

2015-16 2014-15

Goods 5559.28 7620.82

J) Investment

Current investments are carried at lower of cost and quoted, fair value, computed category wise. Long terminvestmentsarestatedatcost.Provisionfordiminutioninthevalueoflongterminvestmentsismadeonlyifsuchadeclineisotherthantemporary.

K) RetirementBene�it

RetirementBene�itstoemployeesforpaymentofGratuityisprovidedforinthisyearfortheemployeesliableasperGratuityactthusthepro�itofcurrentyearisreducedbyRs184530/-.FurthercontributioninrespectofProvidentFundandESIismademonthlyandischargedtothePro�it&LossAccount.

L)BorrowingCost

Borrowingcostwhicharedirectlyattributabletotheacquisition/constructionof�ixedassetstillthetimesuchassetsarereadyforusearecapitalizationaspartoftheassets.Otherborrowingcostaretreatedasrevenueexpenditureandchargedtopro�itandlossaccountfortheyear.

M)SegmentReporting.

Thecompanyhasidenti�ieditsprimaryreportablesegmentsunderAS-17andnecessarydisclosureisseparatelymade innotesofaccounts.Theaccountingpoliciesadoptedforsegmentreportare in linewiththeaccountingpoliciesofthecompanywiththefollowingadditionalpoliciesforsegmentreporting:

Revenueandexpenseshavebeenidenti�iedtoasegmentonthebasisofrelationshiptooperatingactivitiesofthesegment. Revenue and expenseswhich relate to enterprise as awhole and are not allocable to a segment onreasonablebasishavebeendisclosedas"Unallocable".Segmentassetsandsegmentliabilitiesrepresentassetsandliabilities inrespectivesegments. Investments taxrelatedassetsandotherassetsand liabilities thatcannotbeallocatedtoasegmentonareasonablebasishavebeendisclosedas"Unallocable".

N)Relatedpartydisclosure.

RelatedpartydisclosureasperAS-18issuedbytheICAIismadeanddisclosedseparatelyinnotestoaccounts.

O) EarningperShare.

E.P.S.hasbeencalculatedonweightedaverageoftotalnumberofshareasperAS-20issuedbytheICAI.

P)ProvisionforCurrent&DeferredTax

ProvisionismadeforincometaxliabilityestimatedtoariseontheresultsfortheyearatthecurrentrateoftaxinaccordancewithIncomeTaxact,1961.Taxexpensesfortheyearcomprisesofcurrenttaxanddeferredtax.DeferredtaxLiabilityofRs.11431121/-createdduring theyearand totalclosingbalanceofdeferred tax liability isRs.85360710/-

Q) ImpairmentofAssets

ThecompanyhasapolicyofassessingtheimpairmentofintangibleassetseveryyearinaccordancewithAS-28impairmentofassetsprescribedbytheICAI.Thisisdonethroughcomparingitscarryingamountasperbooksofaccountswithitsrecoverablevalue.Duringtheyeartherewasnoimpairmentinthevalueoftheassets;hencenoprovisionisrequiredasperAS-28.

R) ProvisionContingentLiabilitiesandContingentAssets

Provision involving substantial degree of estimation in measurement is recognized when there is a presentobligationasaresultofpasteventsanditisprobablethattherewillbeout�lowofresources.Contingentliabilitiesarenotrecognizedbutaredisclosedinthenotes. Contingentassetsareneitherrecognizednordisclosedinthe�inancialstatement.

S) OtherIncomest OtherIncomefortheyearended31 March2016includesdividendoninvestments,InterestonBankFixed

deposits.InterestonAdvances,CommodityPro�it/(Loss)&OtherIncome.


SITASHREE


STNOTES ON STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 MARCH, 2016

(Amount in Rs.)

S. NO. PARTICULARS AS AT 31/03/2016 AS AT 31/03/2015

NOTE NO. "01"

SHARE CAPITAL

AUTHORISED SHARE CAPITAL

28550000 EQUITY SHARES OF RS. 10/- EACH 285,500,000 345,500,000

33000000 PREFERENCE SHARES OF RS. 10/- EACH 330,000,000 250,000,000

615,500,000 595,500,000

ISSUED, SUBSCRIBED & PAID-UP SHARE CAPITAL


FULLY PAIDUP

(PY 27834174 EQUITY SHARES OF RS. 10/- EACH

FULLY PAIDUP)

33000000 0% REDEEMABLE PREFERENCE

SHARES OF RS. 10/- EACH FULLY PAIDUP (PY-NILL) 330,000,000 210,000,000

TOTAL 608,341,740 488,341,740

33000000 0% REDEEMABLE PREFERENCE SHARES having face value of Rs. 10/- can be redeemed a�er 18 years but

not later than 20 years from the date of issue.

1.1 The Detail of Share Holders Holding More than 5% Shares

Name of the Shareholder AS AT 31/03/2016 AS AT 31/03/2015

No. of Shares % held No. of Shares % held

1 Ashish Goyal 3,206,403 11.52 3,206,403 11.52 2 R.J. Marke�ng Limited(Previously known 1,588,957 5.71 1,588,957 5.71 as Sita Shree Marke�ng Limited) 3 Anoop Foods Ltd. 1,508,286 5.42 1,508,286 5.42

1.2 The reconcilia�on of the No. of share outstanding is set out Below.

A Par�culars AS AT 31/03/2016 AS AT 31/03/2015

No. of Shares No. of Shares

Equity Shares at the beginning of the year 27834174 27834174 Add: Share Issued Nil Nil Less: Share Cancelled or buy back of Equity Shares Nil Nil Equity Shares at the end of the year 27834174 27834174

B Par�culars AS AT 31/03/2016 AS AT 31/03/2015


0 % Redeemable Preference Shares at the beginning of the year 21000000 21000000 Add: Share Issued 12000000 Nil Less: Share Cancelled or buy back of preference Shares Nil Nil 0 % Redeemable Preference Shares at the end of the year 33000000 21000000


SITASHREE


33000000 0% REDEMMABLE PREFERENCE SHARES having face value of Rs. 10/- can be redeemed a�er 18 years but not later than 20 years from the date of issue.

1.3 Following Shares out of Issued subscribed and Paid up Share capital of the company held by under men�oned person has been pledged in favour of State Bank of India Consor�um with SBI as lead banker and Union Bank of India, Canara Bank and Andhra bank as members for securing loan taken by Sita Shree Food Products Ltd. of Rs. 163.92 crore (PY Rs. 142.51crore ). Detail of Share Pledge of following share holder.

AS AT 31/03/2016 AS AT 31/03/2015

Name of Share Holder No. of Share held % of Holding No. of Share held % of Holding

Ashish Goyal 2,891,365 10.39 2,891,365 10.39 Anoop Foods Ltd. 1,508,286 5.42 1,508,286 5.42 Anoop Goyal 788,735 2.83 788,735 2.83 Dinesh Agrawal-HUF 448,500 1.61 448,500 1.61 Dinesh Agrawal 282,430 1.01 282,430 1.01 Neha Agarwal 131,200 0.47 131,200 0.47 1.4 There is no Shares allo�ed without payment being receiving in cash, Share allo�ed by way of bonus shares and share

buy back for the Period of five year immediately preceding the date of Balance Sheet.

1.5 12000000 0% REDEEMABLE PREFERENCE SHARES having face value of Rs. 10/- can be redeemed a�er 18 years but not later than 20 years from the date of issue. These shares are issued during financial year 2015-16.


NOTE NO. "02"

RESERVE & SURPLUS

PROFIT & LOSS ACCOUNT OP. BALANCE 99,688,703 77,008,994 Add: PROFIT DURING THE YEAR (10,055,965) 24,608,363 Less:Deprecia�on (on assets useful life is nil as per The Companies act, 2013) - 1,928,655 CLOSING BALANCE 89,632,738 99,688,703

CAPITAL RESERVES SECURITIES PREMIUM RESERVE 238,986,870 238,986,870 SHARE FORFITURE ACCOUNT 23,259,890 23,259,890 TOTAL 351,879,498 361,935,463 NOTE NO. "03"

LONG TERM BORROWINGS

A SECURED LOAN FROM BANKS

a) TERM LOAN FOR SOYA PROJECT (U.B.I.) 57,566,679 99,966,677

(Paripassu Charge over En�re Fixed Assets of the Company)

Non current 57,566,679 99,966,677

Current 42,000,000 39,600,000

Total 99,566,679 139,566,677

b) UBI CAR LOAN - 1,801

(Secured by Hypothica�on of Car)

Non current - 1,801

Current - 43,519

Total - 45,320


SITASHREE


STNOTES ON STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 MARCH, 2016 (Amount in Rs.)


c) CAR LOAN (ICICI) 64,785 867,709


Non current 64,785 867,709

Current 802,966 725,168

Total 867,751 1,592,877

d) TERM LOAN FOR SOYA PROJECT (S.B.I.) 64,979,718 123,567,546

(Paripassu Charge over En�re Fixed Assets of the Company)

Non current 64,979,718 123,567,546

Current 54,000,000 50,400,000

Total 118,979,718 173,967,546

e) HDFC CAR LOAN 1,358,730 2,074,936


Non current 1,358,730 2,074,936

Current 716,205 650,250

Total 2,074,935 2,725,186

f) UNION BANK OF INDIA 1,049,509 -


Non current 1,049,509 -

Current 296,952 -

Total 1,346,461 -

B UNSECURED LOAN

INDIA INFOLINE FINANCE LIMITED 37,948,381 -

LOAN FROM DIRECTOR 13,458,241 132,193,300

INTERCORPORATE LOAN 81,901,978 71,101,000

TOTAL 258,328,022 429,772,969

3.1 Company has availed credit facili�es from State Bank of India (Commercial Branch) Consor�um with Union Bank of India (Mid Corporate Branch) of Rs. 142.51 Crore. Out of this Rs. 22.35 Crore Term Loan ( included in above) & Rs. 9.00 Crore included in current liabili�es (refer Note No. 08).

3.2 Classifica�on of Total Credit Facili�es is as follows:-

Rs. in Crore

Type of Facili�es UBI SBI CANARA ANDHRA Total

Fund Base

Cash Credit Limit 47.00 38.00 10.00 10.00 105.00

Stand by Limit 6.00 6.00 - 2.00 14.00

Term Loan 9.95 11.89 - - 21.84

ADHOC 7.50 0.00 0.00 0.00 7.50

Total (A) 70.45 55.89 10.00 12.00 148.34

Non Fund Base

Le�er of Credit 7.25 4.00 10.00 13.75 35.00

SLC (NSB) - - - 2.00 2.00

Bank GUARANTEE 0.00 1.00 5.00 - 6.00

Credit Exposure Limit 0.42 1.50 - 2.08 4.00

Total (B) 7.67 6.50 15.00 17.83 47.00

Total (A+B) 74.62 67.89 25.00 27.75 195.34


SITASHREE



(Amount in Rs.)


3.3 This Credit Facili�es is Secured by En�re Assets of the Company & the personal guarantee of following Persons

i) Dinesh Agrawal (Chairman & Director)

ii) Ashish Goyal (Managing Director)

iii) Anoop Goyal ( Whole-�me Director)

iv) Sapan Garg (Other)

v) Sandesh Garg (Other)

vi) GG Infra Pvt. Ltd.

3.4 Maturity profile of Term Loan are as set out below.

Repayment schedule is according to sanc�on amount. Rs. in Crore

Repayment Year UBI SBI Total

2015-16 4.20 5.40 9.60

2016-17 4.20 5.40 9.60

2017-18 4.20 5.40 9.60

2018-19 1.84 1.82 3.66

Total 14.44. 18.02 32.46

3.5 SECURITY DETAILS

SECURITY DETAILS - SBI

A) PRIMARY

FACILITY PROPERTY DESCRIPTION

Working Capital First Pari Passu hypotheca�on charge over en�re current assets of the company present & future

Term Loan First Pari Passu charge over en�re fixed assets of the company by way of Equitable Mortgage situated at survey No. 5/1/Kha, Survey No. 5/9/3, Survey No. 5/1/Ka, Patwari HalkaNo. 32,Village Barlai jagir, Tehsil Sanwer, District Indore and survey no. 332/2/9, 332/3/8, 332/5, 332/3/8, 332/5, 332/4/2, 331/1/6, 330/1/4 at Palda together with buildings & structures thereon & plant and machinery,fixtures and fi�ngs constructed,erected or installed thereon present and future.

B) Collateral Security


Working Captal Second Pari-passu charge overfixed Assets of Barlai unit.

All Facility First Pari-Passu Charge by way of EM of Land Bearing Survey No. 366/3/2,area 1386.05 sq meter in PH No. 26,situated at Village Palda,Tehsil & District Indore

(This Property is tobe replaced by 4(Four) flats situated at Sita Shree Residency, Survey No.179/1/2,Village Sirpur, Aerodrome Road,Indore, belonging to GGREPL)`

All Facility First Pari Passu charge by way of EM of flat No. $$ 1. 605 (area BA 771 sq �,SBA 1041 sq �) in Block B1 2.606 (area BA 1161 sq �,SBA 1567 sq �) in Block B1 3.607(area BA 1161 sq �,SBA 1567sq �)in Block B1 4.410(area BA 771 sq �,SBA 1041 sq �)in Block B2 5.606(area BA 1161 sq �,SBA 1567 sq �)in Block B2 6.610 (area BA 771 sq �,SBA 1041 sq �) in Block B2 All at Sitashri Residency, Survey no. 179/1/2, Village Sirpur, Aerodrum Road, Indore


SITASHREE



(Amount in Rs.)

All Facility EM of diverted land bearing survey No. 362/1/1 (Eastern Part)area 0.167 Hectare (1670 sq meters) situated at PH No. 26, Village Musakhedi, Tehsil & District Indore in the name of M/s GG Infra Pvt. Limited

All Facility EM of diverted land bearing survey No. 362/1/1 (Western Part)area 0.167 Hectare (1670 sq meters) situated at PH No. 26, Village Musakhedi, Tehsil & District Indore in the name of M/s GG Infra Pvt. Limited

All Facility First exclusively charge by way of pledge of 4407360 equity shares belonging to promoters.

Term Loans Second Pari-passu charge over en�re current assets of the company

All Facility First Pari-passu charge of TDR with Union Bank in the name of SSFPL

All Facility First Pari-passu charge on pledge of TDR in the name of SSFPL

C) Addi�onal Collateral Security


Immovable Property Value : 1.00 bank's Share 0.29, PariPassu Charge

DETAILS OF COLLATERAL SECURITIES - UBI

1 Second pari-passu charge over en�re fixed assets of Barlai Unit of the company in the name of Sita Shree Food Products Ltd. For working capital limits.

2 Second Pari Passu Charge on en�re current assets of Company for term loan.

3 Paripassu charge by way of lien on deposit, deposit receipt bearing a/cNo. 303-802,303-805,303-833,303-834,303-901 with UBI.

4 Paripassu charge by way of EM of 1386.05 sq. mt. (14914 sqs �) land at S No. 366/3/2,PH NO. 26,Palda Tehsil & Dist Indore standing in the name of Mr. Sapan Garg & Mr. Sandesh Garg.

5 First pari passu charge over Residual Net Block of fixed Assets at Palda, Tehsil & District Indore(115992 sq �) in the name of Sita shree food Products Ltd(Flour Divison).

6 "Paripassu charge by way of EM of two plots situated at S No.:362/1/1 (Eastern & Western area 0.167 hectare each) Ph No. 26,Village: Musakhedi ,Tehsil & Dis�: Indore, in the name of GG Infra Pvt Ltd"

7 Paripassu charge by way of EM of flat Nos. "1.605 (area BA 771 sq �,SBA 1041 sq �) in Block B1 2. 606 (area BA 1161 sq �,SBA 1567 sq �) in Block B1 3. 607(area BA 1161 sq �,SBA 1567sq �)in Block B1 4. 410(area BA 771 sq �,SBA 1041 sq �)in Block B2 5. 606(area BA 1161 sq �,SBA 1567 sq �)in Block B2 6.610 (area BA 771 sq �,SBA 1041 sq �) in Block B2 All the above flats located at Sitashree Residency, S. No.179/1/2,,Gram Sirpur (Opp. Armed Police Training College),

Aerodrome Road,Indore."

8 Pledge of 4407360 Equity Shares belonging to Promoters

9 4 Flats Located at Sitashri Residency, S. no. 179/1/2, Gram Sirpur (Opp. Armed Police Training College), Aerodrum Road, Indore Flat no. 608 & 609 in Block 1, 506 & 612 in Block 2

10 First exclusive paripassu charge by way of pledge of 2000000 equity shares belonging to promoters(only 1643156 shares has been pledged and in lieu of 356844 shares STDR of Rs. 0.36 crores taken ). As Per SBI Note

11 Pledge of Union KBC Capital oriented fund 25000 units

12 Lien on deposit with Union Bank of India.


SITASHREE



(Amount in Rs.)

3.6 This Credit Facili�es are Secured by En�re Assets of the Company & the personal Guarantee of following Persons: -

Name of Personal Guarantor

i) Dinesh Agrawal (Chairman & Director) ii) Ashish Goyal(Managing Director) iii) Anoop Goyal ( Whole-�me Director) iv) Sapan Garg (Other) v) Sandesh Garg (Other)

Name of Corporator Guarantor


3.7 Rate of interest on SBI CC @ 13.10% p.a.

Rate of interest on UBI CC @ 13.20% p.a.

Rate of interest on UBI TL @ 14.50% p.a.

Rate of interest on SBI TL @ 14.80% p.a.


SITASHREE




NOTE NO. "04"

OTHER LONG TERM LIABILITIES

ADVANCE AGAINST SALES 1,610,130 1,610,130

TOTAL 1,610,130 1,610,130

NOTE NO. "05"

LONG TERM PROVISIONS

Provision for Employee Benefits 1,151,759 1,045,979

(Gratuity)

TOTAL 1,151,759 1,045,979

NOTE NO. "06"

SHORT-TERM BORROWINGS

SECURED

WORKING CAPITAL LOAN FROM UNION BANK OF INDIA * 606,918,646 536,642,988

WORKING CAPITAL LOAN FROM STATE BANK OF INDIA * 380,496,193 459,650,827

ANDHRA BANK 101,048,470 - CAN BANK FACTORS LTD., 40,578,974 - CANARA BANK 97,073,884 - ECL FINANCE LTD, 56,782,774 - ANDHRA BANK (LC), 157,364,558 - CANARA BANK (LC), 39,726,008 - SBI LC A/C 30,757,824 15,272,800 UBI LC A/C 62,174,098 53,587,501 UNION BANK OF INDIA (FBLC)A/C, - 10,382,102 ANDHRA BANK (SLC) 20,227,094 - STATE BANK OF INDIA (SLC) * 59,867,305 58,826,686

EXPORT PACKING CREDIT LOAN FROM STATE BANK OF INDIA * 268,611 - TOTAL 1,653,284,440 1,134,362,904

*SECURITY AS PER NOTE NO. 3.5

(Amount in Rs.)


SITASHREE



NOTE NO. "07"

TRADE PAYABLES

CREDITORS FOR GOODS 1,692,353,695 536,649,003

CREDITORS FOR ADVANCE RECEIVED FROM CUSTOMER

AGAINST SALES/ORDERS 7,453,706 7,859,624

CREDITORS FOR EXPENSES 23,572,089 30,154,710

CREDITORS FOR BROKERAGE 5,951,155 7,735,405

TOTAL 1,729,330,645 582,398,742

NOTE NO. "08"

OTHER CURRENT LIABILITIES

(a) CURRENT MATURITY OF LONG TERM DEBT

TERM LOAN FOR SOYA PROJECT (U.B.I.) 42,000,000 39,600,000

UBI CAR LOAN - 43,519

TERM LOAN FOR SOYA PROJECT (S.B.I.) 54,000,000 50,400,000

RELIANCE CAPITAL LTD. 296,952 -

ICICI CAR LOAN 802,966 725,168


HDFC CAR LOAN 716,205 650,250

(b) OTHER PAYABLES

STATE BANK OF INDIA BUYERS CREDIT, - 13,546,449

CREDITORS FOR CAPITAL GOODS 2,773,393 3,762,106

OTHER STATUTORY LIABILITIES 19,486,311 3,496,548

SECURITY DEPOSIT 1,000,000 1,000,000

TOTAL 123,227,446 113,224,040

NOTE NO. "09"

SHORT-TERM PROVISIONS

1 PROVISION FOR CURRENT TAX 323,721 14,779,078

TOTAL 323,721 14,779,078

(Amount in Rs.)



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NOTE NO. "11"

NON-CURRENT INVESTMENTS

OTHER INVESTMENTS:-

(LONG TERM) (FULLY PAID UP)

QUOTED EQUITY SHARES OF

UNION BANK OF INDIA 129,910 129,910

1181 EQUITY SHARE (FACE VALUE RS.10/- PER SHARE)

(P.Y. 1181 EQUITY SHARES FACE VALUE RS.10/- PER SHARE)

(MARKET VALUE RS.185063/- P.Y. RS. 243227/-)

CHOKSI LABORATORIES LIMITED INDORE 10,750,000 10,750,000


(MARKET VALUE RS.3785000, P.Y. - RS.2750000/-. )

UNQUOTED

ANOOP FOODS LTD.(SHARES) 500,000 500,000



INVESTMENT IN OTHER FUND,

UNION KBC CAPITAL PRO.ORIENTED FUND, 2,500,000 2,500,000

(TOTAL 250000 UNITS OF RS. 10 EACH ARE PLEDGE WITH UNION BANK OF INDIA)

UNION KBC CAPITAL PRO.ORIENTED FUND 250,000 250,000

TOTAL 14,129,910 14,129,910

Investment is considered as long term investment so no provision has been made for temporary fall in the price of above Equity Shares.

NOTE NO. "12"

LONG-TERM LOANS AND ADVANCES

ADVANCE FOR CAPITAL WORK IN PROGRESS 30,176,039 30,443,394 ADVANCE FOR CAPITAL GOODS 65,000 - ADVANCE FOR RAW MATERIAL 2,058,195 2,058,195 ADVANCE FOR PURCHASE OF LAND 22,428,000 22,428,000 OTHER LOANS & ADVANCES 5,533,975 5,016,709 SECURITY DEPOSITS ( GOVT. DEP. & OTHER) 7,442,557 6,589,846 TOTAL 67,703,766 66,536,144

Other Loans and Advances unsecured considered Good

NOTE NO. "13"

OTHER NON CURRENT ASSETS

OTHER

AMALGAMATION EXP., 280,500 374,000 ENTRY TAX (APPEAL 2008-09), 44,877 44,877 VAT TAX (APPEAL 2008-09), 399,250 399,250


SITASHREE



(Amount in Rs.)


SALES TAX (APPEAL 2013-14), 979,017 FLATS IN SITASHRI RESIDENCY 6,463,109 6,463,109 (PLEDGED WITH SBI)

PLEDGED STOCK 5,170,500 5,170,500 (STOCK OF FLATS PLEDGED AGAINST LOAN TAKEN CONSIDERED AS NON-CURRENT ASSET)

TOTAL ( A + B ) 13,337,253 12,451,736

NOTE NO. "14"

INVENTORIES

(As Vaued & Cer�fied by the Directors) Flour Division RAW MATERIAL 377,491,839 196,745,500 STOCK OF FINISHED GOODS 143,257,905 40,378,395 STOCK OF PACKING MATERIAL 8,767,450 1,001,053 STOCK OF W.I.P. 2,059,202 1,900,800 STOCK OF GRADING GOODS 250,376,310 224,096,900

Soya Division RAW MATERIAL 245,980,000 143,595,696 STOCK OF FINISHED GOODS 451,691,659 367,030,500 STOCK OF PACKING MATERIAL 12,370,005 10,065,000 STOCK OF W.I.P. 24,382,259 25,517,500 OTHER CONSUMABLES 48,023,610 42,209,775

REAL ESTATE

UNFINISHED SHOPS / FLATS 29,789,100 32,568,300 Less : Considered as non Current (5,170,500) (5,170,500) (STOCK OF FLATS PLEDGED AGAINST LOAN TAKEN BY HOLDING COMPANY CONSIDERED AS NON-CURRENT ASSET)

TOTAL 1,589,018,839 1,079,938,919

NOTE NO. "15"

TRADE RECEIVABLE (UNSECURED CONSIDERED GOOD) OVER SIX MONTH 173,366,101 20,369,269 OTHERS 1,959,760,003 982,213,077 TOTAL 2,133,126,104 1,002,582,346

The balances of debtors, creditors and advances are subject to confirma�on by the par�es. However Management does not expect any material difference affec�ng the current year financial statement.

NOTE NO. "16"

CASH AND CASH EQUIVALENTS A. CASH IN HAND ( AS CERTIFIED BY DIRECTOR) 16,886,226 25,022,495 B BALANCE WITH BANK I) CURRENT A/Cs STATE BANK OF INDIA - - AXIS BANK 100,000 -


SITASHREE



(Amount in Rs.)


BANK OF INDIA 16,000 -

CAN BANK FACTORS LTD., 34,126 - PUNJAB NATIONAL BANK, 19,791 - STATE BANK OF INDIA (DUTY DRAW BACK) 673,082 34,839 UNION BANK OF INDIA (C/A) 112,833 1,946,496 UNION BANK OF INDIA (35188)REAL ESTATE, 34,608 256,173 990,440 2,237,508

II) FIXED DEPOSIT ACCOUNT

ANDHRA BANK 15,791,500 -

CAN BANK 9,248,312 -

CANARA BANK 10,073,554 - UNION BANK OF INDIA 50,001,799 42,428,048 STATE BANK OF INDIA 9,485,867 8,839,448 STATE BANK OF INDIA (BUYERS CREDIT MARGIN) 8,675,572 6,943,551

III) CHEQUE IN HAND 1,888,512 7,304,050

TOTAL ( A + B ) 123,041,782 92,775,100

NOTE NO. "17"

SHORT-TERMS LOANS AND ADVANCES (UNSECURED CONSIDERED GOOD)

ADVANCE FOR PURCHASES & OTHERS ADVANCE FOR RAW MATERIAL 16,741,284 18,803,230 ADVANCE INCOME TAX & TDS RECEIVABLE 827,287 2,411,583 ADVANCE FOR EXPENSES 1,763,481 1,905,341 EMPLOYEE ADVANCES 619,121 269,885

19,951,173 23,390,039

NOTE NO. "18 "

OTHER CURRENT ASSESTS OTHER CURRENT ASSETS 6,005,368 9,532,046

TOTAL 6,005,368 9,532,046

NOTE NO. "19"

REVENUE FROM OPERATIONS A) SALES OF PRODUCTS MANUFACTURING ACTIVITY I) INDIGENOUS 7,015,224,593 5,425,326,777 LESS : SALE TO SOYA DIVISION (5,436,210) (95,988,910) II) EXPORT 555,927,584 439,260,125 Less :- Excise Duty 1,761,053 5,847,200 7,563,954,914 5,762,750,792

REAL ESTATE DEVELOPMENT SALES 5,852,094 10,147,200 5,852,094 10,147,200


SITASHREE



(Amount in Rs.)


B) OTHER OTHER SALES 1,622,457 3,573,804 Less: Excise Duty 250 3,737 1,622,207 3,570,067 TOTAL 7,571,429,215 5,776,468,059

NOTE NO. "20"

OTHER INCOME INTEREST INCOME 7,450,226 3,275,879 DIVIDENED INCOME 4,086 885 INSURANCE CLAIM RECEIVED - 1,342,898 OTHER NON OPERATING INCOME 911,654 - DUTY DRAWBACK 6,551,151 7,203,520 RENT RECEIVED 387,470 497,420 SETTLEMENT INCOME 3,134,312 3,127,062 FOREIGN EXCHANGE FORWARD BOOKING (12,316,283) 377,130 FOREIGN EXCHANGE REALISATION DIFFRENCE 6,093,232 11,030,890 EXPORT LICENSE 34,612,415 2,779,893

REAL ESTATE Other Income - 2,756,391 TOTAL 46,828,263 32,391,968 NOTE NO. "21"

COST OF MATERIAL CONSUMED OPENING STOCK 340,341,196 332,025,177 PURCHASE (NET OF RETURN) 7,552,467,262 5,497,991,282 LESS: PURCHASE FROM FLOUR DIVISION (5,436,210) (95,988,910)

LESS: CLOSING STOCK 623,471,839 340,341,196 TOTAL 7,263,900,409 5,393,686,353

NOTE NO. "22"

CHANGE IN INVENTORIES

OP.STOCK OF FINISHED GOODS 407,408,895 260,688,672 OP.STOCK OF W.I.P. 27,418,300 22,355,186 OP.STOCK OF STOCK-IN-TRADE 224,096,900 76,205,938 658,924,095 359,249,796

LESS: CLS.STOCK OF FINISHED GOODS 594,949,564 407,408,895 CLS.STOCK OF W.I.P. 26,441,461 27,418,300 CLS.STOCK OF STOCK-IN-TRADE 250,376,310 224,096,900 871,767,335 658,924,095

REAL ESTATE DIVISION OP.STOCK OF UNFINISHED SHOPS / FLATS 32,568,300 37,441,800 32,568,300 37,441,800

LESS: CLS.STOCK OF UNFINISHED SHOPS / FLATS 29,789,100 32,568,300 29,789,100 32,568,300

DECREASE / (INCREASE) IN STOCK (210,064,040) (294,800,799)


SITASHREE



(Amount in Rs.)


NOTE NO. "23" EMPLOYEE BENEFITS EXPENSES SALARY AND OTHER BENEFITS 22,636,603 24,685,215 BONUS 276,891 361,870 P.F. CONTRIBUTION 555,128 500,240 E.S.I.C. 50,061 43,224 GRATUITY 184,530 283,500 STAFF WELFARE EXP. 418,079 392,767 SALARY & OTHER BENEFITS(REAL ESTATE.), - 494,544 TOTAL 24,121,292 26,761,360 NOTE NO. "24" FINANCE COST BANK CHARGES 23,219,177 41,030,143 INTEREST ON BUYERS CREDIT 35,053 158,939 INTEREST ON CASH CREDIT 127,070,035 101,031,961 INTEREST ON VEHICLE LOAN 527,921 484,552 INTEREST ON EPC A/C, 5,383,395 292,355 INTEREST TO SLC & OTHERS 14,703,547 1,729,475 STAMP DUTY FOR LOAN PROCESSING, 3,574,315 1,053,000 INTEREST ON TERM LOAN 33,553,577 59,757,770 TOTAL 208,067,020 205,538,195 NOTE NO. "25" OTHER EXPENSES (A) MANUFACTURING EXPENSES 1 BROKERAGE ON PURCHASE 2,071,229 2,243,772 2 COAL CONSUMED 12,419,897 19,630,045 3 ENTRY TAX 102,053 107,000 4 FACTORY EXPENSES 174,248 265,637 5 FREIGHT (INWARD) 8,042,546 6,915,191 6 FUMIGATION EXPENSES 475,021 513,322 7 HAMMALI AND WAGES 8,222,253 10,981,902 8 HEXANE CONSUMED 9,650,855 6,406,313 9 IMPORT DUTY 2,630,883 - 10 INSURANCE (GOODS) 675,548 882,027 11 LAB CHEMICAL 7,958,805 13,463,646 12 LOADING UNLOADING EXPENSES 6,995,600 8,150,530 13 MANDI TAX 1,942,939 3,948,445 14 PACKING AND BARDANA EXPENSES 4,222,318 4,596,833 15 PACKING MATERIAL CONSUMED 30,395,124 52,235,410 16 POWER & FUEL 38,798,839 45,512,841 17 QUALITY IMPROVEMENT EXP., 321,248 882,793 18 REPAIRS & MAINTENANCE a) Electric Repair & Maintaince 333,866 - b) Plant & Machinery 6,063,701 7,890,360 c) Building 1,390,101 557,995 19 TRAVELLING EXPENSESS 29,753 19,437 20 WAREHOUSE STORAGE CHARGES 1,140,791 1,100,420 21 WATER CHARGES - 140,760 TOTAL 144,057,618 186,444,679


SITASHREE



(Amount in Rs.)


(B) ESTABLISHMENT & ADMINISTRATIVE EXP.

1 ADVERTISEMENT EXPENSES 188,529 411,456 2 AFTER ASSESSMENT TAX(INCOME TAX), 205,780 3 AGENCY CHARGES (IMPORT), 27,480 4 AMALGAMATION EXP. WRITTEN OFF 93,500 93,500 5 ASSOCIATION & MEMBERSHIP FEES, 105,453 119,530 6 AUDITORS REMUNERATION a) STATUTORY AUDIT FEES 200,000 200,000 b)OTHER PAYMENT TO STATUTORY AUDITOR 53,500 34,500 7 INTERNAL AUDIT FEES 775,000 360,000 8 AUDIT FEES (COST AUDIT), 45,600 40,000 9 BOARD SITTING FEES, 88,000 72,000 10 CHARITY & DONATION - 250,000 11 COMPUTER REPAIR & MAINTENANCE 274,570 548,903 12 DIVERSION TAX (FLOUR), - 287,528 13 DIRECTOR SALARY & PERQUISITE 8,305,881 9,732,256 14 ELECTRIC DUTY EXP., - 28,200 15 FESTIVAL EXPENSES 59,263 167,100 16 FILING FEES 42,200 47,300 17 GARDEN MAINTAINENCE 92,155 92,700 18 INSURANCE EXPENSES 1,914,316 2,995,041 19 INSPECTION CHARGES, 1,123 43,652 20 INTERNET EXPENSES, - 12,500 21 LEGAL & PROFESSIONAL EXPENSES 3,954,541 3,195,850 22 LICENCE & REGISTRATION FEES 226,114 333,614 23 OFFICE EXPENSES 685,586 741,282 24 POOJA EXPENSES 530,638 410,751 25 POSTAGE & TELEGRAM EXPENSES 546,838 907,402 26 PROFESSIONAL TAX 5,000 7,500 27 PROPERTY TAX 255,200 20,000 28 REPAIR & MAINTENANCE 124,759 113,335 29 SECURITY EXPENSES 1,535,489 1,581,122 30 STATIONERY & PRINTING EXPENSES 425,777 507,762 31 TELEPHONE EXPENSES 698,236 899,686 32 TENDER & DOCUMENTS EXP., 215,000 - 33 TESTING FEES 50,102 111,877 34 TRAVELLING & CONVEYANCE EXPENSES 182,326 204,682 35 VEHICLE RUNNING & MAINTENANCE 1,213,242 958,051 36 WEBSITE DESIGNING & UPDATION CHARGES 14,000 9,600 37 HAZAR DEOUS WASTE MANAGEMENT CHARGES, - 9,000 38 SERVICE TAX 360,125 409,217 TOTAL 23,495,323 25,956,897 (C) SELLING & DISTRIBUTION EXPENSES 1 BROKERAGE ON SALES 3,816,571 12,021,495 2 TESTING REPORT EXP. - 451,674 3 WAREHOUSE STORAGE CHARGES - 186,830 4 CLEARING & FORWARDING EXPENSES & HANDLING CHARGES 44,896,864 38,331,322 5 AGENCY CHARGES 1,617,050 3,802,285 6 EXPORT INCENTIVE EXPENSES - 10,381


SITASHREE



(Amount in Rs.)


7 CERTIFICATE EXPENSES 75,790 86,510

8 DISCOUNT 6,527,300 9,441,805

9 FREIGHT OUTWARD 29,949,246 37,396,140

10 GOODS INSPECTION CHARGES 1,742,559 2,871,034

11 INSURANCE 1,068,423 2,652,279

12 OTHER EXPENSES 2,676,658 2,843,374

13 RATE DIFFERENCE ON SALES 940,064 (428,177)

14 SALES PROMOTION EXP. 368,754 163,749

15 SHIPPING & FORWARDING EXP 8,312,711 22,225,234

16 TRANSPORATION 459,800 1,179,250

17 TRAVELLING EXP. 191,915 543,789

18 EXPORT EXP., 261,337 42,167

19 SALES TAX PENALTY (SOYA DIV.), 30,130 -

TOTAL 102,935,172 133,821,141

(D) PRIOR PERIOD ITEMS

1 CST (AFTER ASSESTMENT) - 2,500

2 INSPECTION CHARGES PRIOR PERIOD 57,652 38,377

3 BOARD SITTING FEES 5,000 -

4 BROKERAGE 83,977 137,099

5 INCOME TAX APPEAL F.Y.201112, 1,000 -

6 INTEREST ON INCOME TAX, 1,034,523

7 PF DEMAND (PRIOR PERIOD), - 884

8 EXCESS PROVIOSION FOR INCOME TAX, - (46,738)

9 LEGAL & PROFESSIONAL EXP., - 8,000

10 ENTRY TAX AFTER ASSESTMENT - (217,257)

11 EXPORT LICENCE - 1,291,823

12 TENDER & DOCUMENTS EXP - (562)

13 WAREHOUSE RENT - 218,069

14 VAT AFTER ASSESTMENT 11-12(SOYA DIV.), 3,001 0

15 CERTIFICATE EXPENSES - 5,618

16 OTHER EXP. - 398,463

17 DEPRECIATION WRITTEN BACK WRONGLY CHARGED EARLIER - (208,160)

18 TED REFUND (PRIOR PERIOD), - 11,126

TOTAL 1,185,153 1,639,242

TOTAL (A TO D) 271,673,266 347,861,959

NOTE NO. "26"

EXCEPTIONAL ITEMES

Loss on Vehicle - 208,969

- 208,969


SITASHREE



(Amount in Rs.)

STCASH FLOW STATEMENT FOR THE YEAR ENDED ON 31 MARCH,2016

(Amount in Rs.)

S.NO. PARTICULARS 31/03/2016 31/03/2015

A CASH FLOWS FROM OPERATING ACTIVITIES

NET PROFIT BEFORE TAXATION 1,698,878 70,202,889

ADJUSTMENTS FOR :

DEPRECIATION 58,860,653 59,192,941

INTEREST/DIVIDEND INCOME (7,454,312) (3,276,764)

PRELIMINARY EXPENSES WRITTEN OFF - -

INTEREST PAID 208,067,020 205,538,195

LOSS ON SALE OF FIXED ASSETS - 208,969

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 261,544,798 331,866,230

CHANGE IN TRADE AND OTHER RECEIVABLES (1,130,543,758) (329,377,739)

CHANGE IN INVENTORIES (509,079,920) (321,573,846)

CHANGE IN OTHER CURRENT ASSETS 4,912,405 (7,013,153)

CHANGE IN CURRENT LIABILITIES 1,661,507,269 599,308,260

INCOME TAX (323,721) (14,779,078)

NET CASH FLOW FROM OPERATING ACTIVITIES (A) 288,017,073 258,430,674

B CASH FLOW FROM INVESTING

PURCHASE OF FIXED ASSETS (5,320,176) (47,952,238)

CHANGE IN OTHER LONG TERM LIABILITIES - (6,389,304)

SALE OF FIXED ASSETS - 8,547,635

INVESTMENTS PURCHASED (FDR EXCLUDING INT.) (45,065,557) (22,024,933)

NET CASH FLOW USED IN INVESTING ACITIVIES (B) (50,758,292) (67,818,840)

C CASH FLOWS FROM FINANCING ACTIVITIES

CHANGES IN BORROWINGS (171,444,948) 37,834,451

CHANGE IN CAPITAL 120,000,000 -

INTEREST RECEIVED 7,450,226 3,275,879

DIVIDEND RECEIVED 4,086 885

INTEREST PAID (208,067,020) (205,538,195)

NET CASH FLOW FROM FINANCING ACTIVITIES [C] (252,057,656) (164,426,980)

NET INCREASED IN CASH AND CASH EQUIVALENTS (A+B+C) (14,798,875) 26,184,854

CASH AND CASH EQUIVALENTS (OPENING BALANCE) 34,564,053 8,379,199

CASH AND CASH EQUIVALENTS (CLOSING BALANACE) 19,765,178 34,564,053

As per our report of even date a�ached,

WE CERTIFY TO THE CORRECTNESS OF ABOVE, FOR M. K. SHAH & ASSOCIATES FOR AND ON BEHALF OF THE BOARD CHARTERED ACCOUNTANT (Reg. No. 002077C) DINESH AGRAWAL ANOOP GOYAL ( M.K. SHAH ) (CHAIRMAN) (WHOLE-TIME DIRECTOR& CFO) PROPRIETOR M.NO.:400-71199 PLACE: INDORE ASHISH GOYAL DATE : 06/06/2016 (MANAGING DIRECTOR)


SITASHREE


NOTE NO. “27”ST

ADDITIONAL NOTES ON STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED AT 31 MARCH 2016

1. Con�ngent Liability not provided:

S. No. Par�cular 2015-2016 2014-2015

1 Bank Guarantee in Favour of Authori�es 2975000.00 3146000.00

2. Remunera�on to Auditor:

S. No. Par�culars 2015-2016 2014-2015

1 Audit Fees 200000.00 200000.00

2 Other Payments 53500.00 33800.00

Total 253500.00 233800.00

3. Informa�on related to prior period items as per AS-5 is as under:-

a) Detail of prior period items with nature:-

S. No. Par�culars Nature Amount

1 VAT Receivable (A�er Assessment) Statutory (1317728.00)

2 Inspec�on Charges Expenses 57652.00

3 Brokerage Expenses 83977.00

4 Income Tax Appeal (2011-12) Statutory 1000.00

5 Board Si�ng Fees Expenses 5000.00

6 Interest on Income Tax Expenses 1034523.00

7 VAT (A�er Assessment) Statutory 3001.00

Total 132575.00

Above prior period items debited to Profit & Loss A/c of the current financial year and accordingly profit for the year is more by Rs.132575.00/-

4. Remunera�on to Directors:-

S. No. Par�cular 2015-2016 2014-2015

1 Salary 8305881.00 9732256.00

2 Si�ng Fees 88000.00 72000.00

Total 8393881.00 9804256.00

5. Expenditure on employees (excluding perquisite) who are in receipt of remunera�on of not less than Rs. 6000000/- per annum or Rs.500000/- per month when employed for part of the year.

Par�culars 2015-2016 2014-2015

Employees in receipt of remunera�on of not less than Rs. 6000000/- per annum or Rs. 500000/- per month Nil Nil

6. Loans & Advance details: -

S. No Par�culars 2015-2016 2014-15

Long Term Loans & Advances

1 Advance For Capital Work In Progress 30176039.00 30443394.00

2 Advance For Capital Goods 65000.00 0.00

3 Advance For Raw Material 2058195.00 2058195.00

4 Advance For Purchase Of Land 22428000.00 22428000.00

5 Other Loans & Advances 5533975.00 5016709.00

6 Security Deposits ( Govt. Dep. & other) 7442557.00 6589846.00

Total 67703766.00 66536144.00

Short Term Loans & Advances



SITASHREE


2 Advance Income Tax & TDS Receivable 827287.00 2411583.00

3 Advance For Expenses 1763481.00 1905341.00

4 Employee Advances 619121.00 269885.00

Total 19951173.00 23390039.00

7. The provision of deferred tax Asset as on 31/03/2016 has been calculated as under a�er considering the �ming difference in deprecia�on and other as per AS-22 of ICAI.

Par�culars Opening Balance Current Year Closing Balance 01/04/2015 31/03/2016

Deferred Tax Liability due to Difference 73929589.00 11431121.00 85360710.00 between WDV as per Books & as per Income Tax

8. Related Party Disclosures:

i) List of related par�es with whom transac�on have taken place and rela�onship.

Details of related party disclosure as per AS-18 issued by the ICAI are as follows:-

LIST OF RELATED PARTIES AND RELATIONSHIP

1. Key Managerial Personnel

S. No. Name Designa�on

1 Mr. Dinesh Agrawal Chairman

2 Mr. Ashish Goyal (Agrawal) Managing Director

3 Mr. Anoop Goyal (Agrawal) Whole Time Director & CFO

4 Ms. Neha Agrawal Whole-�me Director (from 01.10.2015 to 31.03.2016)

5 Ms. Chitrangda Vishwakarma Company Secretary

2. Rela�ves of Key Management Personnel

S. No. Name of the Rela�ve Rela�on

1 Dinesh Agrawal HUF

2 Ashish Goyal HUF

3 Neha Agrawal Rela�ve of Director

4 Usha Devi Agrawal

5 Rajababu Agrawal

3. List of concerns and nature of control headed by Related Par�es in the reported year

S. No. Name of Party Nature of Control

1 M/s R.J. Marke�ng Limited (formerly known as Sita Shree Marke�ng Limited) Company in which rela�ve is Director

2 M/s M.R. Agro Overseas Limited (formerly known as Sita Shree Overseas Limited) Company in which rela�ve is Director

3 M/s Usha Dall Mill Proprietorship of Rela�ve

4 M/s Kashiya Exports Private Limited Group Company

5 M/s Anoop Foods Limited Associate Company

6 M/s Chandrika Trading Company Proprietorship of Director

7 M/s Chandrika Agri Commodi�es Private Limited Group Company


SITASHREE



SITASHREE


ii) Transac�ons held during the year with related par�es:

01.04.2015 - 31.03.2016

2015-16 2014-15STOPENING BALANCE AS ON 1 APRIL 2015

Preference share capital 210000000 210000000

Sundry Debtors 108432395 44876795

Advance for Raw Material 65178759 0

Unsecured Loans taken 132193300 34600000

Current account of Key Managerial Personnel 3901942(Cr.) 494700(Cr.)

Sundry Outstanding Nil Nil

Sundry Creditors 386827067 89319425

Long Term Borrowing Nil Nil

Loans & Advance to Subsidiary Nil Nil

TRANSACTIONS

Sale of Goods 264696317 199861204

Purchase of Goods 2766788010 1979237732

Loans & Advances Received 69600010 162990000

Repayment of unsecured loans taken 188335069 34256700

Repayment of Sundry Outstanding Nil Nil

Remunera�on to Key Managerial Personnel 7800000 9732256

Interest Received from Subsidiary Nil Nil

Loans & Advances to Subsidiary Nil Nil

Loans & Advances Recovered (Subsidiary) Nil Nil

Lease Deposit Recovered Nil Nil

Issue of Preference Share 120000000 Nil

STCLOSING BALANCE AS ON 31 MARCH 2016

Preference Share Capital 330000000 210000000

Sundry Debtors 61,036,447.00 108432395

Advance for Raw Material Nil 65178759

Unsecured loans taken 13458241 132193300

Current account Key Managerial Personnel 2865038 (Cr.) 3901942(cr.)




9. Sundry debtors and sundry creditors include firm or Private Limited Company in which Director are a partner or a Director or a Member respec�vely:

A As Debtors 2015-16 2014-15

1 M/s R.J. Marke�ng Limited ( formerly known as Sita Shree Marke�ng Limited) 28551708 7006100

2 M/s M.R. Agro Overseas Limited (formerly known as Sita Shree Overseas Limited) 27365194 94356750

3 Usha Dall Mill 5119545 7069545

Total 61036447 108432395

B As Creditors 2015-16 2014-15


2 Anoop Foods Limited 36010681 -

3 Kashiya Exports Private Limited 104994941 197001300

4 Chandrika Trading Company 104967641 176731538

5 M/s R.J. Marke�ng Limited (formerly known as Sita Shree Marke�ng Limited) 28676536 0

Total 283007248 386827067

C As Advance for Purchase of Goods 2015-16 2014-15

1 Anoop Foods Limited 0 65178759.00

Total 0 65178759.00

10. Earnings per Share

S. No. Par�culars 2015-16 2014-15

1 Net Profit a�er tax available for equity share holders (10055965.00) 24608363.00

2 Weighted average number of equity share 27834174.00 27834174.00

3 Basic & Diluted Earnings Per Share (Rs.)

(Face Value of Rs.10/- each) (0.36) 0.88

11. Disclosures In Respect Of Provisions Pursuant To Accoun�ng Standard-29:-

S. No. Par�cular Opening Provided U�lized Reversed Closing Balance during during during Balance as on the year the year the year as on 01/04/2015 31/03/2016

1 Proposed dividend on equity Share Nil Nil Nil Nil Nil

2 Corporate Dividend Tax Nil Nil Nil Nil Nil

3 Provision for Income Tax 14779078 1358244 7420982 Nil 8716340

12. Addi�onal informa�on to Note 5 of Part II of the Schedule III of the Companies Act, 2013 has been furnished as per Annexure – I.13. In view of the insufficient informa�on from suppliers regarding their status as SSI/SME Company amount overdue to such

undertaking could not be ascertained but the management does not envisage any material impact on the Financial

Statement. 15. The part of trade receivables and trade payables shown in Balance Sheet as on 31/03/2016, includes same par�es to

whom the company has made sales as well as purchases of different products and shown in trade recievables as well as

trade payables and by maintaining seperate account.16. In the opinion of the Board of Directors the current assets loans and advances including deposits have value on realiza�on

in the ordinary courses of business at least equal to the amount at which they are stated in the Balance Sheet and provision

for all known liabili�es is adequate and not in excess of the amount which is reasonably necessary.

Signed to Note “01” to “15”In terms of our report of even date a�ached WE APPROVE TO THE CORRECTNESS OF ABOVE

For : M.K.SHAH & ASSOCIATES FOR AND ON BEHALF OF THE BOARDCHARTERED ACCOUNTANTS(Regn.No.002077C) DINESH AGRAWAL ANOOP GOYAL (M.K. SHAH) (CHAIRMAN) (WHOLE-TIME DIRECTOR & CFO)Proprietor M.NO. 400-71199 ASHISH GOYAL

(MANAGING DIRECTOR)


SITASHREE



SITASHREE


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CONSOLIDATED

FINANCIAL

STATEMENT


SITASHREE


M.K.SHAH&ASSOCIATESCHARTEREDACCOUNTANTS207CITYPLAZA,NEARREGALSQUARE,INDOREPhone:(O)2536214,4048445,(m)9425057217E-mail:[email protected]

INDEPENDENTAUDITOR’SREPORT

To,TheMembersSitaShreeFoodProductsLtd.,INDORE

ReportontheConsolidatedFinancialStatements

Wehaveauditedtheaccompanyingconsolidated�inancialstatementsofSitaShreeFoodProductsLimitedanditsassociate,whichcomprisetheconsolidatedBalanceSheetasatMarch31,2016,theconsolidatedStatementofPro�itandLossandtheconsolidatedcash�lowstatementfortheyearended,andasummaryofsigni�icantaccountingpoliciesandotherexplanatoryinformation.

Management’sResponsibilityfortheConsolidatedFinancialStatements

TheCompany’sBoardofdirectors is responsible for thematters stated in section134(5)of theCompanies act2013(“theact”)withrespecttothepreparationoftheseConsolidated�inancialstatementsthatgiveatrueandfairviewof the �inancial statements, �inancial performance and cash �lows of the company in accordancewith theaccountingprinciplesgenerallyacceptedinIndia,includingtheaccountingstandardsspeci�iesinsection133oftheact,readwithrule7oftheCompanies(Accounts)Rules,2014.Thisresponsibilityalsoincludesthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheactforsafeguardingtheassetsofthecompanyandforpreventinganddetectingfraud&otherirregularities;selectionandapplicationofappropriateaccountingpolicies; making judgment and estimates that are reasonable and prudent; and design implementation andmaintenanceofinternal�inancialcontrol,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessofaccountingrecords,relevanttothepreparationandpresentationofConsolidated�inancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.


Ourresponsibilityistoexpressanopinionontheseconsolidated�inancialstatementsbasedonouraudit.

Wehave taken intoaccount theprovisionsof theact,accountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheactandtherulesthereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditingspeci�iedundersection143(10)oftheact.Those standards require that we complywith ethical requirements and plan and perform the audit to obtainreasonableassuranceaboutwhethertheconsolidated�inancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theconsolidated �inancial statements. The procedures selected depend on the auditor’s judgment, including theassessmentoftherisksofmaterialmisstatementofthe�inancialstatements,whetherduetofraudorerror.Inmakingthose risk assessments, the auditor considers internal control relevant to the Company’s preparation of theconsolidated�inancialstatementsthatgivetrueandfairviewinordertodesignauditproceduresthatareappropriatein thecircumstances.Anauditalso includesevaluating theappropriatenessofaccountingpoliciesusedandthereasonableness of the accounting estimates made by company’s directors, as well as evaluating the overallpresentationoftheconsolidated�inancialstatements.

Webelievethattheauditevidenceobtainedbyusandtheauditevidenceobtainedbyotherauditorintermsoftheirreports referred to in sub-paragraph (a)of theOtherMattersparagraphbelow, is suf�icientandappropriate toprovideabasisforourauditopinionontheconsolidated�inancialstatements.

Opinion


SITASHREE


In our opinion and to the best of our information and according to the explanations given to us, the aforesaidConsolidated�inancialstatements,givetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:

(a)InthecaseoftheConsolidatedBalanceSheet,ofthestateofaffairsoftheCompanyasatMarch31,2016;

(b)InthecaseoftheConsolidatePro�itandLossAccount,ofthepro�it/lossfortheyearendedonthatdate;and

(c)InthecaseoftheConsolidatedCashFlowStatement,ofthecash�lowsfortheyearendedonthatdate.

OtherMatters

We did not audit the �inancial statements of associate, whose �inancial statements re�lect total asset of Rs.st267,785,675/-asat31 March,2016,totalrevenuesofRs.1,005,677,902/-andnetcash�lowsamountingtoRs.

1,399,832/-fortheyearendedonthatdate,asconsideredintheconsolidated�inancialstatements.Theconsolidatedst�inancialstatementsalsoincludetheGroup’sshareofnetpro�itofRs.372,559/-fortheyearended31 March,2016,

asconsideredintheconsolidated�inancialstatementswhose�inancialstatementshavenotbeenauditedbyus.These�inancialstatementshavebeenauditedbyotherauditorwhosereporthavebeenfurnishedtousbytheManagementandouropinionon theconsolidated �inancial statements, inso faras it relates to theamountsanddisclosuresincludedinrespectoftheassociate,andourreportintermsofsub-section(3)and(11)ofSection143oftheAct,insofarasitrelatestotheaforesaidassociate,isbasedsolelyonthereportoftheotherauditor.

Ouropinionontheconsolidated�inancialstatements,andourreportonOtherLegalandRegulatoryRequirementsbelowisnotmodi�iedinrespectoftheabovematterswithrespecttoourrelianceontheworkdoneandthereportoftheotherauditorandthe�inancialstatementscerti�iedbytheManagement.

ReportonOtherLegalandRegulatoryRequirements

1. Asrequiredbysection143(3)oftheAct,wereport,totheextentapplicable,that:

a. Wehaveobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposeofouraudit;

b. InouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasappearsfromourexaminationofthosebooks.

c. The Consolidated Balance Sheet, Consolidated Statement of Pro�it and Loss, and Consolidated Cash FlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount.

d. Inouropinion,theConsolidatedBalanceSheet,ConsolidatedStatementofPro�itandLoss,andConsolidatedCashFlowStatementcomplywiththeAccountingStandardsreferredtoinsection133oftheCompaniesAct,2013,readwithrule7oftheCompanies(Accounts)Rules2014.

e. OnthebasisofwrittenrepresentationsreceivedfromthedirectorsasonMarch31,2016,andtakenonrecordbytheBoardofDirectors,noneofthedirectorsisdisquali�iedasonMarch31,2016,frombeingappointedasadirectorintermsofsub-section(2)ofsection164oftheCompaniesAct,2013.

f. Withrespecttotheadequacyoftheinternal�inancialcontrols over�inancialreportingoftheGroupandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportin‘AnnexureA’;and

g. Withrespect to theothermatters tobe included in theAuditor’s report inaccordancewithRule11of theCompanies(AuditandAuditors)Rules,2014inouropinionandtobestofourinformationandaccordingtotheexplanationgiventous.

1) The company has disclosed the impact of pending litigation on its consolidated �inancial position in itsconsolidated�inancialstatements.

2) Thecompanyhasmadeprovisions,asrequiredundertheapplicablelaworaccountingstandards,formaterialforeseeablelosses,ifany,onlongtermcontractsincludingderivativecontracts.

3) Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheinvestor’seducationandprotectionfundbythecompanyanditsassociate.

For:M.K.SHAH&ASSOCIATES CHARTEREDACCOUNTANTS (Regn.No.002077C)Place:IndoreDate:06/06/2016 (M.K.SHAH) PROPRIETOR M.NO.400-71199


SITASHREE



ANNEXUREATOTHEAUDITORSREPORT

ReportontheInternalFinancialControlsunderClause(i)ofsub-section3ofSection143oftheCompaniesAct,2013(‘Act’)

Inconjunctionwithourauditoftheconsolidated�inancialstatementsofthecompanyasofandfortheyearended31March,2016,wehaveauditedtheinternal�inancialcontrolsover�inancialreportingofSitaShreeFoodProductsLimited(‘theCompany’)anditsassociatecompany.

Management’sresponsibilityforInternalFinancialControls

TheCompany’sanditsassociatemanagementisresponsibleforestablishingandmaintaininginternal�inancialcontrolsbasedontheinternalcontrolover�inancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponents of internal control stated in theGuidanceNoteonAudit of Internal Financial Controls overFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternal�inancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandef�icientconductof itsbusiness,effectivemonitoringof the transactions, toensure thatallassetsaresafeguard andprotected against loss fromunauthorizeduse or disposition including adherence to the Company’spolices,preventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecordsandthetimelypreparationofreliable�inancialinformationasrequiredundertheCompaniesAct,2013.


OurresponsibilityistoexpressanopinionontheCompany’sinternal�inancialcontrolsover�inancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsover�inancialreporting(the“GuidanceNote”)andthestandardsonAuditingasspeci�iedundersection143(10)oftheAct,totheextentapplicabletoanauditofinternal�inancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequate internal �inancial controlsover �inancial reportingwereestablishedandmaintainedand if such controlsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternal�inancialcontrolssystemover�inancialreportingandtheiroperatingeffectiveness.Ourauditofinternal�inancialcontrolsover�inancialreportingincludesobtaininganunderstandingofinternal�inancialcontrolsover�inancialreporting,assessingtheriskthatamaterialweaknessexistsandtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthe�inancialstatements,whetherduetofraudanderror.

Webelievethattheauditevidencewehaveobtainedissuf�icientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternal�inancialcontrolssystemover�inancialreporting.

MeaningofInternalFinancialControlsoverFinancialReporting

Acompany’sinternal�inancialcontrolover�inancialreportingisaprocessdesignedtoprovidereasonableassuranceregarding thereliabilityof �inancial reportingand thepreparationof �inancial statements forexternalpurposes inaccordance with generally accepted accounting principles. A company’s internal �inancial control over �inancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyre�lectthetransactionsanddispositionsoftheassetsoftheCompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationof�inancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheCompanyarebeinginaccordancewithauthorizationsoftheManagementanddirectorsoftheCompany;and(3)providereasonableassuranceregarding


SITASHREE


preventionortimelydetectionofunauthorizedacquisition,use,ordispositionoftheCompany’sassetsthatcouldhaveamaterialeffectonthe�inancialstatements.

InherentLimitationsofInternalFinancialControlsoverFinancialReporting

Becauseoftheinherentlimitationsofinternal�inancialcontrolsover�inancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Alsoprojectionsofanyevaluationoftheinternal�inancialcontrolsover�inancialreportingtofutureperiodsaresubjecttotheriskthattheinternal�inancialcontrolover�inancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternal�inancialcontrolssystemover�inancialreportingandsuchinternal�inancialcontrolsover�inancialreportingwereoperatingeffectivelyasatMarch31,2016,basedontheinternalcontrolover�inancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsof internal control stated in theGuidanceNoteonAuditof InternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.

For:M.K.SHAH&ASSOCIATES CHARTEREDACCOUNTANTS (Regn.No.002077C)

Place:IndoreDate:06/06/2016 (M.K.SHAH) PROPRIETOR M.NO.400-71199


SITASHREE


STCONSOLIDATEDBALANCESHEETASAT31 MARCH,2016

(AmountinRs.)

S.NO.PARTICULARS NOTENO. ASAT31/03/2016 ASAT31/03/2015

I. EQUITYANDLIABILITIES

(1) SHAREHOLDERSFUND (a) SHARECAPITAL "01" 608,341,740 488,341,740 (b) RESERVE&SURPLUS "02" 352,252,057 361,935,463

(2) NONCURRENTLIABILITIES (a) LONGTERMBORROWINGS "03" 258,328,022 429,772,969 (b) DEFERREDTAXLIABILITY(NET) 85,360,710 73,929,589 (c) OTHERLONGTERMLIABILITIES "04" 1,610,130 1,610,130 (d) LONGTERMPROVISIONS "05" 1,151,759 1,045,979

(3) CURRENTLIABILITIES (a) SHORT-TERMBORROWINGS "06" 1,653,284,440 1,134,362,904 (b) TRADEPAYABLES "07" 1,729,330,645 582,398,742 (c) OTHERCURRENTLIABILITIES "08" 123,227,446 113,224,040 (d) SHORT-TERMPROVISIONS "09" 323,721 14,779,078 GRANDTOTAL 4,813,210,671 3,201,400,634II. ASSETS NON-CURRENTASSETS (1) (a) FIXEDASSETS "10" (i)TANGIBLEASSETS 827,205,267 880,773,099 (ii)INTANGIBLEASSETS 368,750 341,395 (iii)CAPITALWORK-INPROGRESS 18,949,900 18,949,900 (b) NON-CURRENTINVESTMENTS "11" 14,502,469 14,129,910 (c) LONG-TERMLOANSANDADVANCES "12" 67,703,766 66,536,144 (d) OTHERNON-CURRENTASSETS "13" 13,337,253 12,451,736

(2) CURRENTASSETS (a) INVENTORIES "14" 1,589,018,839 1,079,938,919 (b) TRADERECEIVABLES "15" 2,133,126,104 1,002,582,346 (c) CASHANDCASHEQUIVALENTS "16" 123,041,782 92,775,100 (d) SHORT-TERMSLOANSANDADVANCES "17" 19,951,173 23,390,039 (e) OTHERCURRENTASSETS "18" 6,005,368 9,532,046 GRANDTOTAL 4,813,210,671 3,201,400,634 ADDITIONALNOTESONFINANCIALSTATEMENT "27" SIGNIFICANTACCOUNTINGPOLICIES CASHFLOWSTATEMENT INTERMSOFOURSEPARATEREPORTOFEVENDATEATTACHED WECERTIFYTOTHECORRECTNESSOFABOVE, FORM.K.SHAH&ASSOCIATES FORANDONBEHALFOFTHEBOARD CHARTEREDACCOUNTANT (Reg.No.002077C) DINESHAGRAWAL ANOOPGOYAL (M.K.SHAH) (CHAIRMAN) (WHOLE-TIMEDIRECTOR&CFO) PROPRIETOR M.NO.:400-71199 PLACE:INDORE CHITRANGDAVISHWAKARMA ASHISHGOYALDATE:06/06/2016 (COMPANYSECRETARY) (MANAGINGDIRECTOR)


SITASHREE


STCONSOLIDATEDPROFITANDLOSSSTATEMENTFORTHEYEARENDED31 MARCH2016

S.No. PARTICULARS NOTENO. ASAT31/03/2016 ASAT31/03/2015

I REVENUEFROMOPERATIONS "19" 7,571,429,215 5,776,468,059II OTHERINCOME "20" 46,828,263 32,391,968III TOTALREVENUE(I+II) 7,618,257,478 5,808,860,027

IV EXPENSES: COSTOFMATERIALCONSUMED "21" 7,263,900,409 5,393,686,353 CHANGEININVENTORIESOFFINISHEDGOODS WORK-IN-PROGRESSANDSTOCK-IN-TRADE "22" (210,064,040) (294,800,799) EMPLOYEEBENEFITSEXPENSES "23" 24,121,292 26,761,360 FINANCECOST "24" 208,067,020 205,538,195 DEPRICIATIONANDAMORTIZATIONEXPENSES "10" 58,860,653 59,401,101 OTHEREXPENSES "25" 271,673,266 347,861,959 TOTALEXPENSES 7,616,558,600 5,738,448,169 V PROFITBEFOREEXCEPTIONALAND EXTRAORDINARYITEMESANDTAX(III-IV) 1,698,878 70,411,858VI EXCEPTIONALITEMES "26" - 208,969VII PROFITBEFOREEXTRAORDINARYITEMES ANDTAX(V-VI) 1,698,878 70,202,889VIII EXTRAORDINARYITEMES - -IX PROFITBEFORETAX(VII-VIII) 1,698,878 70,202,889X TAXEXPENSES (1)CURRENTTAX 323,721 14,779,078 (2)DEFERREDTAX 11,431,121 30,815,448 11,754,843 45,594,526XI PROFIT/(LOSS)FORTHEPERIODFROM CONTINUINGOPERATIONS(IX-X) (10,055,965) 24,608,363XII PROFIT/(LOSS)FROMDISCONTINUINGOPERATIONS - -XIII TAXEXPENSESOFDISCONTINUINGOPERATIONS - -XIV PROFIT/(LOSS)FROMDISCONTINUING OPERATIONS(AFTERTAX)(XII-XIII) - -XV PROFIT/(LOSS)FORTHEPERIOD(XI+XIV) (10,055,965) 24,608,363 EARNINGSPEREQUITYSHARE: (1)BASIC (0.36) 0.88 (2)DILUTED (0.36) 0.88

ADDITIONALNOTESONFINANCIALSTATEMENT "27" SIGNIFICANTACCOUNTINGPOLICIES CASHFLOWSTATEMENT INTERMSOFOURSEPARATEREPORTOFEVENDATEATTACHED WECERTIFYTOTHECORRECTNESSOFABOVE, FORM.K.SHAH&ASSOCIATES FORANDONBEHALFOFTHEBOARD CHARTEREDACCOUNTANT (Reg.No.002077C) DINESHAGRAWAL ANOOPGOYAL (M.K.SHAH) (CHAIRMAN) (WHOLE-TIMEDIRECTOR&CFO) PROPRIETOR M.NO.:400-71199 PLACE:INDORE CHITRANGDAVISHWAKARMA ASHISHGOYALDATE:06/06/2016 (COMPANYSECRETARY) (MANAGINGDIRECTOR)


SITASHREE


SIGNIFICANTACCOUNTINGPOLICIESONCONSOLIDATEDFINANCIALSTATEMENTFORSTTHEYEARENDEDAT31 MARCH2016

AccountingConvention

A) BasisofAccounting

1. TheaccountsoftheCompanyarepreparedunderthehistoricalcostconventionandinaccordancewithapplicableaccountingprincipleinIndiatheaccountingstandardissuedbytheInstituteofCharteredAccountantsofIndiaandtherelevantprovisionoftheCompaniesAct2013.Accountingpoliciesnotspeci�icallyreferredtoareconsistentwithgenerallyacceptedaccountingprinciples.

2. TheCompanyfollowsmercantilesystemofaccountingandrecognizesincomeandexpenditureonaccrualbasis.3. SalesandOtherOperationalActivities1) Revenueisrecognizedonlywhenitcanbereliablymeasuredanditisreasonabletoexpectultimatecollection.

Interest income is recognized on time proportion basis taking into account the amount outstanding and rateapplicable.Thusrevenuefromsalesisrecognizedatthetimeofdispatchofgoodstocustomers.Salesotherthanmanufacturingsalesarerecordedatthetimeofdispatchandraisingtheinvoice.Salesareshownnetofsalesreturn.GovernmentBene�itLicenseincomeisalsorecognizedonreceiptbasis.

B) UseofEstimates

Thepreparationof �inancial statements requires certainestimatesandassumption tobemade thataffect thereportedamountofassetsandliabilitiesasonthedateofthe�inancialstatementsandthereportedamountofrevenues and expenses during the reporting period. Difference between the actual results and estimates arerecognizedintheperiodinwhichtheresultsareknown/materialized.

C) Inventory

Itemsofinventoriesaremeasuredatlowerofcostandnetrealizablevalueafterprovidingforobsolescence,ifany.Cost of inventories comprise of cost of purchase, cost of conversion and other costs includingmanufacturingoverheadsincurredinbringingthemtotheirrespectivepresentlocationandcondition.Costofrawmaterials,storesandspares,packingmaterials,tradingandotherproductsaredeterminedonlowerofcostornetrealizablevalue.Forrealestatesegmentmethodofvaluationofinventoryisdoneatstandardprice.

D)CashFlowStatements

Cash�lowstatementhasbeenpreparedbyusingIndirectMethodatperAS-3issuedbytheICAI.

E) ContingenciesandEventsoccurringaftertheBalanceSheetdate.

Accountingforcontingencies(gainsandlosses)arisingoutofcontractualobligationsaremadeonlyonthebasisofmutualacceptances.EventsoccurringafterthedateoftheBalanceSheetareconsidereduptothedateofapprovaloftheaccountsbytheBoardwherematerial.

F) PriorPeriodItems&ExtraOrdinaryItem

Income&ExpenseswhicharisesintheCurrentYearasaresultoferrororomissioninthepreparationofFinancialStatementofoneormorepriorperiodwereshownaspriorperiodadjustmentduringtheyearinNoteNo26(6)ofNoteson�inancialStatement.

G) Depreciation

DepreciationisprovidedonthebasisoflifeassignedtoeachassetinaccordancewithScheduleIIofthecompaniesact, 2013 earlier depreciation was provided on SLM basis accounting policy is changed to prepare �inancialstatements inaccordancewithchanges inCompaniesact2013.AssetsofRs.1,89,49,900/-arestill inworkinprogressthusdepreciationisnotrequiredtobeprovidedonthesame.

H) FixedAssets

Fixedassetsarestatedatcostofacquisition,lessaccumulateddepreciationandimpairmentloss,ifany.Allcosts,including�inancingcoststillcommencementofcommercialproductionarecapitalizedonappropriatebasistotheAssets.

I) ForeignCurrencyTransactions

Companyhasenteredintoexportsaleduringtheperiodandtherebyearningforeignexchange.Foreigncurrencytransactionsarerecordedbyapplyinganexchangerateatthetimeofdateoftransactions.

VALUEOFIMPORTONCIFBASISINRESPECTOF

Particular CURRENTYEAR CURRENTYEAR (Rs.InLacs) (Rs.InLacs) 2015-16 2014-15

Goods 1586.43 1962.93


SITASHREE


VALUEOFEXPORTONCIFBASISINRESPECTOF:

Particular CURRENTYEAR PREVIOUSYEAR

(Rs.InLacs) (Rs.InLacs)

2015-16 2014-15

Goods 5559.28 7620.82

J) Investment

Current investments are carried at lower of cost and quoted, fair value, computed category wise. Long terminvestmentsarestatedatcost.Provisionfordiminutioninthevalueoflongterminvestmentsismadeonlyifsuchadeclineisotherthantemporary.

K) RetirementBene�it

RetirementBene�itstoemployeesforpaymentofGratuityisprovidedforinthisyearfortheemployeesliableasperGratuityactthusthepro�itofcurrentyearisreducedbyRs184530/-.FurthercontributioninrespectofProvidentFundandESIismademonthlyandischargedtothePro�it&LossAccount.

L)BorrowingCost

Borrowingcostwhicharedirectlyattributabletotheacquisition/constructionof�ixedassetstillthetimesuchassetsarereadyforusearecapitalizationaspartoftheassets.Otherborrowingcostaretreatedasrevenueexpenditureandchargedtopro�itandlossaccountfortheyear.

M)SegmentReporting.

Thecompanyhasidenti�ieditsprimaryreportablesegmentsunderAS-17andnecessarydisclosureisseparatelymade innotesofaccounts.Theaccountingpoliciesadoptedforsegmentreportare in linewiththeaccountingpoliciesofthecompanywiththefollowingadditionalpoliciesforsegmentreporting:

Revenueandexpenseshavebeenidenti�iedtoasegmentonthebasisofrelationshiptooperatingactivitiesofthesegment. Revenue and expenseswhich relate to enterprise as awhole and are not allocable to a segment onreasonablebasishavebeendisclosedas"Unallocable".Segmentassetsandsegmentliabilitiesrepresentassetsandliabilities inrespectivesegments. Investments taxrelatedassetsandotherassetsand liabilities thatcannotbeallocatedtoasegmentonareasonablebasishavebeendisclosedas"Unallocable".

N)Relatedpartydisclosure.

RelatedpartydisclosureasperAS-18issuedbytheICAIismadeanddisclosedseparatelyinnotestoaccounts.

O) EarningperShare.

E.P.S.hasbeencalculatedonweightedaverageoftotalnumberofshareasperAS-20issuedbytheICAI.

P)ProvisionforCurrent&DeferredTax

ProvisionismadeforincometaxliabilityestimatedtoariseontheresultsfortheyearatthecurrentrateoftaxinaccordancewithIncomeTaxact,1961.Taxexpensesfortheyearcomprisesofcurrenttaxanddeferredtax.DeferredtaxLiabilityofRs.11431121/-createdduring theyearand totalclosingbalanceofdeferred tax liability isRs.85360710/-

Q) ImpairmentofAssets

ThecompanyhasapolicyofassessingtheimpairmentofintangibleassetseveryyearinaccordancewithAS-28impairmentofassetsprescribedbytheICAI.Thisisdonethroughcomparingitscarryingamountasperbooksofaccountswithitsrecoverablevalue.Duringtheyeartherewasnoimpairmentinthevalueoftheassets;hencenoprovisionisrequiredasperAS-28.

R) ProvisionContingentLiabilitiesandContingentAssets

Provision involving substantial degree of estimation in measurement is recognized when there is a presentobligationasaresultofpasteventsanditisprobablethattherewillbeout�lowofresources.Contingentliabilitiesarenotrecognizedbutaredisclosedinthenotes. Contingentassetsareneitherrecognizednordisclosedinthe�inancialstatement.

S) OtherIncomest OtherIncomefortheyearended31 March2016includesdividendoninvestments,InterestonBankFixed

deposits.InterestonAdvances,CommodityPro�it/(Loss)&OtherIncome.


SITASHREE


STNOTES ON CONSOLIDATED FINANCIAL STATEMENT FOR THE YEAR ENDED 31 MARCH,2016

(Amount in Rs.)


NOTE NO. "01"

SHARE CAPITAL

AUTHORISED SHARE CAPITAL


33000000 PREFERENCE SHARES OF RS. 10/- EACH 330,000,000 250,000,000

615,500,000 595,500,000

ISSUED, SUBSCRIBED & PAID-UP SHARE CAPITAL


FULLY PAIDUP

(PY 27834174 EQUITY SHARES OF RS. 10/- EACH

FULLY PAIDUP)

33000000 0% REDEEMABLE PREFERENCE

SHARES OF RS. 10/- EACH FULLY PAIDUP (PY-NILL) 330,000,000 210,000,000

TOTAL 608,341,740 488,341,740

33000000 0% REDEEMABLE PREFERENCE SHARES having face value of Rs. 10/- can be redeemed a�er 18 years but

not later than 20 years from the date of issue.

1.1 The Detail of Share Holders Holding More than 5% Shares

Name of the Shareholder AS AT 31/03/2016 AS AT 31/03/2015

No. of Shares % held No. of Shares % held

1 Ashish Goyal 3,206,403 11.52 3,206,403 11.52 2 R.J. Marke�ng Limited(Previously known 1,588,957 5.71 1,588,957 5.71 as Sita Shree Marke�ng Limited) 3 Anoop Foods Ltd. 1,508,286 5.42 1,508,286 5.42

1.2 The reconcilia�on of the No. of share outstanding is set out Below.

A Par�culars AS AT 31/03/2016 AS AT 31/03/2015


Equity Shares at the beginning of the year 27834174 27834174 Add: Share Issued Nil Nil Less: Share Cancelled or buy back of Equity Shares Nil Nil Equity Shares at the end of the year 27834174 27834174

B Par�culars AS AT 31/03/2016 AS AT 31/03/2015


0 % Redeemable Preference Shares at the beginning of the year 21000000 21000000 Add: Share Issued 12000000 Nil Less: Share Cancelled or buy back of Preference Shares Nil Nil 0 % Redeemable Preference Shares at the end of the year 33000000 21000000


SITASHREE


33000000 0% REDEMMABLE PREFERENCE SHARES having face value of Rs. 10/- can be redeemed a�er 18 years but not later than 20 years from the date of issue.

1.3 Following Shares out of Issued subscribed and Paid up Share capital of the company held by under men�oned person has been pledged in favour of State Bank of India Consor�um with SBI as lead banker and Union Bank of India, Canara Bank and Andhra bank as members for securing loan taken by Sita Shree Food Products Ltd. of Rs. 163.92 crore (PY Rs. 142.51crore ). Detail of Share Pledge of following share holder.

AS AT 31/03/2016 AS AT 31/03/2015

Name of Share Holder No. of Share held % of Holding No. of Share held % of Holding

Ashish Goyal 2,891,365 10.39 2,891,365 10.39 Anoop Foods Ltd. 1,508,286 5.42 1,508,286 5.42 Anoop Goyal 788,735 2.83 788,735 2.83 Dinesh Agrawal-HUF 448,500 1.61 448,500 1.61 Dinesh Agrawal 282,430 1.01 282,430 1.01 Neha Agarwal 131,200 0.47 131,200 0.47

1.4 There is no Shares allo�ed without payment being receiving in cash, Share allo�ed by way of bonus shares and share buy back for the Period of five year immediately preceding the date of Balance Sheet.

1.5 12000000 0% REDEEMABLE PREFERENCE SHARES having face value of Rs. 10/- can be redeemed a�er 18 years but not later than 20 years from the date of issue. These shares are issued during financial year 2015-16.


NOTE NO. "02"

RESERVE & SURPLUS

PROFIT & LOSS ACCOUNT OP. BALANCE 99,688,703 77,008,994 Add: PROFIT DURING THE YEAR (10,055,965) 24,608,363 Add: SHARE IN PROFITS OF ASSOCIATES 372,559 - Less:Deprecia�on (on assets useful life is nil as per The Companies act, 2013) - 1,928,655 CLOSING BALANCE 90,005,297 99,688,703

CAPITAL RESERVES SECURITIES PREMIUM RESERVE 238,986,870 238,986,870 SHARE FORFITURE ACCOUNT 23,259,890 23,259,890 ON ACQUISITION OF SHARES IN ASSOCIATE - - TOTAL 352252057 361,935,463 NOTE NO. "03"

LONG TERM BORROWINGS

A SECURED LOAN FROM BANKS

a) TERM LOAN FOR SOYA PROJECT (U.B.I.) 57,566,679 99,966,677

(Paripassu Charge over En�re Fixed Assets of the Company) (As per sub note 3.5)

Non current 57,566,679 99,966,677 Current 42,000,000 39,600,000 Total 99,566,679 139,566,677

b) UBI CAR LOAN - 1,801

(Secured by Hypothica�on of Car) Non current - 1,801 Current - 43,519 Total - 45,320


SITASHREE


STNOTES ON CONSOLIDATED FINANCIAL STATEMENT FOR THE YEAR ENDED 31 MARCH,2016 (Amount in Rs.)


c) CAR LOAN (ICICI) 64,785 867,709


Non current 64,785 867,709

Current 802,966 725,168

Total 867,751 1,592,877

d) TERM LOAN FOR SOYA PROJECT (S.B.I.) 64,979,718 123,567,546

(Paripassu Charge over En�re Fixed Assets of the Company) (As per sub note 3.5)

Non current 64,979,718 123,567,546

Current 54,000,000 50,400,000

Total 118,979,718 173,967,546

e) HDFC CAR LOAN 1,358,730 2,074,936

(Secured by Hypotheca�on of car)

Non current 1,358,730 2,074,936

Current 716,205 650,250

Total 2,074,935 2,725,186

f) UNION BANK OF INDIA(INNOVA) 1,049,509 -

(Secured by Hypotheca�on of Car)

Non current 1,049,509 -

Current 296,952 -

Total 1,346,461 -

B UNSECURED LOAN

LOAN FROM DIRECTOR 13,458,241 132,193,300

OTHER LOAN 81,901,978 71,101,000

INDIA INFOLINE FINANCE LIMITED 37,948,381

TOTAL 258,328,022 429,772,969

3.1 Company has availed credit facili�es from State Bank of India (Commercial Branch) Consor�um with Union Bank of India (Mid Corporate Branch) of Rs. 142.51 Crore. Out of this Rs. 22.35 Crore Term Loan ( included in above) & Rs. 9.00 Crore included in current liabili�es (refer Note No. 08).

3.2 Classifica�on of Total Credit Facili�es is as follows:-

Rs. in Crore

Type of Facili�es UBI SBI CANARA ANDHRA Total

Fund Base

Cash Credit Limit 47.00 38.00 10.00 10.00 105.00

Stand by Limit 6.00 6.00 - 2.00 14.00

Term Loan 9.95 11.89 - - 21.84

ADHOC 7.50 0.00 0.00 0.00 7.50

Total (A) 70.45 55.89 10.00 12.00 148.34

Non Fund Base

Le�er of Credit 7.25 4.00 10.00 13.75 35.00 Bank GUARANTEE 0.00 1.00 5.00 - 6.00 SLC (NSB) - - - 2.00 2.00Credit Exposure Limit 0.42 1.50 - 2.08 4.00 Total (B) 7.67 6.50 15.00 17.83 47.00

Total (A+B) 74.62 67.89 25.00 27.75 195.34


SITASHREE



(Amount in Rs.)


3.3 This Credit Facili�es is Secured by En�re Assets of the Company & the personal guarantee of following Persons

i) Dinesh Agrawal (Chairman & Director)

ii) Ashish Goyal (Managing Director)

iii) Anoop Goyal ( Whole-�me Director)

iv) Sapan Garg (Other)

v) Sandesh Garg (Other)


3.4 Maturity profile of Term Loan are as set out below.

Repayment schedule is according to sanc�on amount. Rs. in Crore

Repayment Year UBI SBI Total

2015-16 4.20 5.40 9.60

2016-17 4.20 5.40 9.60

2017-18 4.20 5.40 9.60

2018-19 1.84 1.82 3.66

Total 14.44. 18.02 32.46

3.5 SECURITY DETAILS

SECURITY DETAILS - SBI

A) PRIMARY


Working Capital First Pari Passu hypotheca�on charge over en�re current assets of the company present & future

Term Loan First Pari Passu charge over en�re fixed assets of the company by way of Equitable Mortgage situated at survey No. 5/1/Kha, Survey No. 5/9/3, Survey No. 5/1/Ka, Patwari HalkaNo. 32,Village Barlai jagir, Tehsil Sanwer, District Indore and survey no. 332/2/9, 332/3/8, 332/5, 332/3/8, 332/5, 332/4/2, 331/1/6, 330/1/4 at Palda together with buildings & structures thereon & plant and machinery,fixtures and fi�ngs constructed,erected or installed thereon present and future.

B) Collateral Security


Working Captal Second Pari-passu charge overfixed Assets of Barlai unit.

All Facility First Pari-Passu Charge by way of EM of Land Bearing Survey No. 366/3/2,area 1386.05 sq meter in PH No. 26,situated at Village Palda,Tehsil & District Indore

(This Property is tobe replaced by 4(Four) flats situated at Sita Shree Residency, Survey No.179/1/2,Village Sirpur, Aerodrome Road,Indore, belonging to GGREPL)`

All Facility First Pari Passu charge by way of EM of flat No. $$ 1. 605 (area BA 771 sq �,SBA 1041 sq �) in Block B1 2.606 (area BA 1161 sq �,SBA 1567 sq �) in Block B1 3.607(area BA 1161 sq �,SBA 1567sq �)in Block B1 4.410(area BA 771 sq �,SBA 1041 sq �)in Block B2 5.606(area BA 1161 sq �,SBA 1567 sq �)in Block B2 6.610 (area BA 771 sq �,SBA 1041 sq �) in Block B2 All at Sitashri Residency, Survey no. 179/1/2, Village Sirpur, Aerodrum Road, Indore


SITASHREE



(Amount in Rs.)

All Facility EM of diverted land bearing survey No. 362/1/1 (Eastern Part)area 0.167 Hectare (1670 sq meters) situated at PH No. 26, Village Musakhedi, Tehsil & District Indore in the name of M/s GG Infra Pvt. Limited

All Facility EM of diverted land bearing survey No. 362/1/1 (Western Part)area 0.167 Hectare (1670 sq meters) situated at PH No. 26, Village Musakhedi, Tehsil & District Indore in the name of M/s GG Infra Pvt. Limited

All Facility First exclusively charge by way of pledge of 4407360 equity shares belonging to promoters.

Term Loans Second Pari-passu charge over en�re current assets of the company

All Facility First Pari-passu charge of TDR with Union Bank in the name of SSFPL

All Facility First Pari-passu charge on pledge of TDR in the name of SSFPL

C) Addi�onal Collateral Security


Immovable Property Value : 1.00 bank's Share 0.29, PariPassu Charge

DETAILS OF COLLATERAL SECURITIES - UBI

1 Second pari-passu charge over en�re fixed assets of Barlai Unit of the company in the name of Sita Shree Food Products Ltd. For working capital limits.

2 Second Pari Passu Charge on en�re current assets of Company for term loan.

3 Paripassu charge by way of lien on deposit, deposit receipt bearing a/cNo. 303-802,303-805,303-833,303-834,303-901 with UBI.

4 Paripassu charge by way of EM of 1386.05 sq. mt. (14914 sqs �) land at S No. 366/3/2,PH NO. 26,Palda Tehsil & Dist Indore standing in the name of Mr. Sapan Garg & Mr. Sandesh Garg.

5 First pari passu charge over Residual Net Block of fixed Assets at Palda, Tehsil & District Indore(115992 sq �) in the name of Sita shree food Products Ltd(Flour Divison).

6 "Paripassu charge by way of EM of two plots situated at S No.:362/1/1 (Eastern & Western area 0.167 hectare each) Ph No. 26,Village: Musakhedi ,Tehsil & Dis�: Indore, in the name of GG Infra Pvt Ltd"

7 Paripassu charge by way of EM of flat Nos. "1.605 (area BA 771 sq �,SBA 1041 sq �) in Block B1 2.606 (area BA 1161 sq �,SBA 1567 sq �) in Block B1 3.607(area BA 1161 sq �,SBA 1567sq �)in Block B1 4.410(area BA 771 sq �,SBA 1041 sq �)in Block B2 5.606(area BA 1161 sq �,SBA 1567 sq �)in Block B2 6.610 (area BA 771 sq �,SBA 1041 sq �) in Block B2 All the above flats located at Sitashree

Residency, S. No.179/1/2,,Gram Sirpur (Opp. Armed Police Training College), Aerodrome Road,Indore."

8 Pledge of 4407360 Equity Shares belonging to Promoters

9 4 Flats Located at Sitashri Residency, S. no. 179/1/2, Gram Sirpur (Opp. Armed Police Training College), Aerodrum Road, Indore Flat no. 608 & 609 in Block 1, 506 & 612 in Block 2

10 First exclusive paripassu charge by way of pledge of 2000000 equity shares belonging to promoters(only 1643156 shares has been pledged and in lieu of 356844 shares STDR of Rs. 0.36 crores taken ). As Per SBI Note

11 Pledge of Union KBC Capital oriented fund 25000 units

12 Lien on deposit with Union Bank of India.


SITASHREE



(Amount in Rs.)


SITASHREE




3.6 This Credit Facili�es are Secured by En�re Assets of the Company & the personal Guarantee of following Persons: -

Name of Personal Guarantor i) Dinesh Agrawal (Chairman & Director) ii) Ashish Goyal (Managing Director) iii) Anoop Goyal ( Whole-�me Director) iv) Sapan Garg (Other) v) Sandesh Garg (Other)

Name of Corporator Guarantor vi) GG Infra Pvt. Ltd.

3.7 Rate of interest on SBI CC @ 13.10% p.a.

Rate of interest on UBI CC @ 13.20% p.a. Rate of interest on UBI TL @ 14.50% p.a. Rate of interest on SBI TL @ 14.80% p.a.

NOTE NO. "04"

OTHER LONG TERM LIABILITIES

FROM OTHERS 1,610,130 1,610,130

TOTAL 1,610,130 1,610,130

NOTE NO. "05"

LONG TERM PROVISIONS

Provision for Employee Benefits 1,151,759 1,045,979

(Gratuity)

TOTAL 1,151,759 1,045,979

NOTE NO. "06"

SHORT-TERM BORROWINGS

SECURED

WORKING CAPITAL LOAN FROM UNION BANK OF INDIA * 606,918,646 536,642,988

WORKING CAPITAL LOAN FROM STATE BANK OF INDIA * 380,496,193 459,650,827

CAN BANK FACTORS LTD., 40,578,974 -

CANARA BANK 97,073,884 -

UNION BANK OF INDIA (FBLC)A/C, - 10,382,102

ECL FINANCE LTD, 56,782,774 -


ANDHRA BANK (LC), 157,364,558 -

CANARA BANK (LC), 39,726,008 -

SBI LC A/C 30,757,824 15,272,800

UBI LC A/C 62,174,098 53,587,501

STATE BANK OF INDIA (SLC)* 59,867,305 58,826,686

ANDHRA BANK (SLC) 20,227,094 -

EXPORT PACKING CREDIT LOAN FROM STATE BANK OF INDIA * 268,611 -

TOTAL 1,653,284,440 1,134,362,904

*SECURITY AS PER NOTE NO. 3.5

(Amount in Rs.)


SITASHREE




NOTE NO. "07"

TRADE PAYABLES

CREDITORS FOR GOODS 1,692,353,695 536,649,003

CREDITORS FOR ADVANCE RECEIVED FROM CUSTOMER

AGAINST SALES/ORDERS 7,453,706 7,859,624

CREDITORS FOR EXPENSES 23,572,089 30,154,710

CREDITORS FOR BROKERAGE 5,951,155 7,735,405

TOTAL 1,729,330,645 582,398,742

NOTE NO. "08"

OTHER CURRENT LIABILITIES

(a) CURRENT MATURITY OF LONG TERM DEBT

TERM LOAN FOR SOYA PROJECT (U.B.I.) 42,000,000 39,600,000

UBI CAR LOAN - 43,519

TERM LOAN FOR SOYA PROJECT (S.B.I.) 54,000,000 50,400,000

RELIANCE CAPITAL LTD. 296,952 -

ICICI CAR LOAN 802,966 725,168


HDFC CAR LOAN 716,205 650,250

(b) OTHER PAYABLES

STATE BANK OF INDIA BUYERS CREDIT, - 13,546,449

CREDITORS FOR CAPITAL GOODS 2,773,393 3,762,106

OTHER STATUTORY LIABILITIES 19,486,311 3,496,548

SECURITY DEPOSIT 1,000,000 1,000,000

TOTAL 123,227,446 113,224,040

NOTE NO. "09"

SHORT-TERM PROVISIONS

1 PROVISION FOR CURRENT TAX 323,721 14,779,078

TOTAL 323,721 14,779,078

(Amount in Rs.)


SITASHREE


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NOTE NO. "11"

NON-CURRENT INVESTMENTS

OTHER INVESTMENTS:-

(LONG TERM) (FULLY PAID UP)

QUOTED EQUITY SHARES OF

UNION BANK OF INDIA 129,910 129,910



(MARKET VALUE RS.185063/- P.Y. RS. 243227/-)

CHOKSI LABORATORIES LIMITED INDORE 10,750,000 10,750,000


(MARKET VALUE RS.3785000, P.Y. - RS.2750000/-. )

UNQUOTED

ANOOP FOODS LTD.(SHARES) 500,000 500,000



ADD: SHARE IN REVENUE PROFIT OF ASSOCIATE 372559 872559

INVESTMENT IN OTHER FUND,

UNION KBC CAPITAL PRO.ORIENTED FUND, 2,500,000 2,500,000

(TOTAL 250000 UNITS OF RS. 10 EACH ARE PLEDGED WITH UNION BANK OF INDIA)

UNION KBC CAPITAL PRO.ORIENTED FUND 250,000 250,000

TOTAL 14,502,469 14,129,910

Investment is considered as long term investment so no provision has been made for temporary fall in the price of above Equity Shares.

NOTE NO. "12"

LONG-TERM LOANS AND ADVANCES

ADVANCE FOR CAPITAL WORK IN PROGRESS 30,176,039 30,443,394 ADVANCE FOR CAPITAL GOODS 65,000 - ADVANCE FOR RAW MATERIAL 2,058,195 2,058,195 ADVANCE FOR PURCHASE OF LAND 22,428,000 22,428,000 OTHER LOANS & ADVANCES 5,533,975 5,016,709 SECURITY DEPOSITS ( GOVT. DEP. & OTHER) 7,442,557 6,589,846 TOTAL 67,703,766 66,536,144

Other Loans and Advances unsecured considered Good

NOTE NO. "13"

OTHER NON CURRENT ASSETS

OTHER

AMALGAMATION EXP., 280,500 374,000 ENTRY TAX (APPEAL 2008-09), 44,877 44,877 VAT TAX (APPEAL 2008-09), 399,250 399,250


SITASHREE



(Amount in Rs.)


SALES TAX (APPEAL 2013-14), 979,017 FLATS IN SITASHRI RESIDENCY 6,463,109 6,463,109 (PLEDGED WITH SBI)

PLEDGED STOCK 5,170,500 5,170,500 (STOCK OF FLATS PLEDGED AGAINST LOAN TAKEN CONSIDERED AS NON-CURRENT ASSET)

TOTAL ( A + B ) 13,337,253 12,451,736

NOTE NO. "14"

INVENTORIES

(As Vaued & Cer�fied by the Directors) Flour Division RAW MATERIAL 377,491,839 196,745,500 STOCK OF FINISHED GOODS 143,257,905 40,378,395 STOCK OF PACKING MATERIAL 8,767,450 1,001,053 STOCK OF W.I.P. 2,059,202 1,900,800 STOCK OF GRADING GOODS 250,376,310 224,096,900

Soya Division RAW MATERIAL 245,980,000 143,595,696 STOCK OF FINISHED GOODS 451,691,659 367,030,500 STOCK OF PACKING MATERIAL 12,370,005 10,065,000 STOCK OF W.I.P. 24,382,259 25,517,500 OTHER CONSUMABLES 48,023,610 42,209,775

REAL ESTATE

UNFINISHED SHOPS / FLATS 29,789,100 32,568,300 Less : Considered as non Current (5,170,500) (5,170,500) (STOCK OF FLATS PLEDGED AGAINST LOAN TAKEN BY HOLDING COMPANY CONSIDERED AS NON-CURRENT ASSET)

TOTAL 1,589,018,839 1,079,938,919

NOTE NO. "15"

TRADE RECEIVABLE (UNSECURED CONSIDERED GOOD) OVER SIX MONTH 173,366,101 20,369,269 OTHERS 1,959,760,003 982,213,077 TOTAL 2,133,126,104 1,002,582,346

The balances of debtors, creditors and advances are subject to confirma�on by the par�es. However Management does not expect any material difference affec�ng the current year financial statement.

NOTE NO. "16"

CASH AND CASH EQUIVALENTS A. CASH IN HAND ( AS CERTIFIED BY DIRECTOR) 16,886,226 25,022,495 B BALANCE WITH BANK I) CURRENT A/Cs STATE BANK OF INDIA - - AXIS BANK 100,000 -


SITASHREE



(Amount in Rs.)


BANK OF INDIA 16,000 -

CAN BANK FACTORS LTD., 34,126 - PUNJAB NATIONAL BANK, 19,791 - STATE BANK OF INDIA (DUTY DRAW BACK) 673,082 34,839 UNION BANK OF INDIA (C/A) 112,833 1,946,496 UNION BANK OF INDIA 34,608 256,173 990,440 2,237,508

II) FIXED DEPOSIT ACCOUNT


CAN BANK 9,248,312 -

CANARA BANK 10,073,554 - UNION BANK OF INDIA 50,001,799 42,428,048 STATE BANK OF INDIA 9,485,867 8,839,448 STATE BANK OF INDIA (BUYERS CREDIT MARGIN) 8,675,572 6,943,551

III) CHEQUE IN HAND 1,888,512 7,304,050

TOTAL ( A + B ) 123,041,782 92,775,100

NOTE NO. "17"

SHORT-TERMS LOANS AND ADVANCES (UNSECURED CONSIDERED GOOD)

ADVANCE FOR PURCHASES & OTHERS ADVANCE FOR RAW MATERIAL 16,741,284 18,803,230 ADVANCE INCOME TAX & TDS RECEIVABLE 827,287 2,411,583 ADVANCE FOR EXPENSES 1,763,481 1,905,341 EMPLOYEE ADVANCES 619,121 269,885

19,951,173 23,390,039

NOTE NO. "18 "

OTHER CURRENT ASSESTS OTHER CURRENT ASSETS 6,005,368 9,532,046

TOTAL 6,005,368 9,532,046

NOTE NO. "19"

REVENUE FROM OPERATIONS A) SALES OF PRODUCTS MANUFACTURING ACTIVITY I) INDIGENOUS 7,015,224,593 5,425,326,777 LESS : SALE TO SOYA DIVISION (5,436,210) (95,988,910) II) EXPORT 555,927,584 439,260,125 Less :- Excise Duty 1,761,053 5,847,200 7,563,954,914 5,762,750,792

REAL ESTATE DEVELOPMENT SALES 5,852,094 10,147,200 5,852,094 10,147,200


SITASHREE



(Amount in Rs.)


B) OTHER OTHER SALES 1,622,457 3,573,804 Less: Excise Duty 250 3,737 1,622,207 3,570,067 TOTAL 7,571,429,215 5,776,468,059

NOTE NO. "20"

OTHER INCOME INTEREST INCOME 7,450,226 3,275,879 DIVIDENED INCOME 4,086 885 INSURANCE CLAIM RECEIVED - 1,342,898 OTHER NON OPERATING INCOME 911,654 - DUTY DRAWBACK 6,551,151 7,203,520 RENT RECEIVED 387,470 497,420 SETTLEMENT INCOME 3,134,312 3,127,062 FOREIGN EXCHANGE FORWARD BOOKING (12,316,283) 377,130 FOREIGN EXCHANGE REALISATION DIFFRENCE 6,093,232 11,030,890 EXPORT LICENSE 34,612,415 2,779,893

REAL ESTATE Other Income - 2,756,391 TOTAL 46,828,263 32,391,968 NOTE NO. "21"

COST OF MATERIAL CONSUMED OPENING STOCK 340,341,196 332,025,177 PURCHASE (NET OF RETURN) 7,552,467,262 5,497,991,282 LESS: PURCHASE FROM FLOUR DIVISION (5,436,210) (95,988,910)

LESS: CLOSING STOCK 623,471,839 340,341,196 TOTAL 7,263,900,409 5,393,686,353

NOTE NO. "22"

CHANGE IN INVENTORIES

OP.STOCK OF FINISHED GOODS 407,408,895 260,688,672 OP.STOCK OF W.I.P. 27,418,300 22,355,186 OP.STOCK OF STOCK-IN-TRADE 224,096,900 76,205,938 658,924,095 359,249,796

LESS: CLS.STOCK OF FINISHED GOODS 594,949,564 407,408,895 CLS.STOCK OF W.I.P. 26,441,461 27,418,300 CLS.STOCK OF STOCK-IN-TRADE 250,376,310 224,096,900 871,767,335 658,924,095

REAL ESTATE DIVISION OP.STOCK OF UNFINISHED SHOPS / FLATS 32,568,300 37,441,800 32,568,300 37,441,800

LESS: CLS.STOCK OF UNFINISHED SHOPS / FLATS 29,789,100 32,568,300 29,789,100 32,568,300

DECREASE / (INCREASE) IN STOCK (210,064,040) (294,800,799)


SITASHREE



(Amount in Rs.)


NOTE NO. "23" EMPLOYEE BENEFITS EXPENSES SALARY AND OTHER BENEFITS 22,636,603 24,685,215 BONUS 276,891 361,870 P.F. CONTRIBUTION 555,128 500,240 E.S.I.C. 50,061 43,224 GRATUITY 184,530 283,500 STAFF WELFARE EXP. 418,079 392,767 REAL ESTATE DIVISION SALARY & OTHER BENEFITS(REAL ESTATE.), - 494,544 TOTAL 24,121,292 26,761,360 NOTE NO. "24" FINANCE COST BANK CHARGES 23,219,177 41,030,143 INTEREST ON BUYERS CREDIT 35,053 158,939 INTEREST ON CASH CREDIT 127,070,035 101,031,961 INTEREST ON VEHICLE LOAN 527,921 484,552 INTEREST ON EPC A/C, 5,383,395 292,355 INTEREST TO SLC & OTHERS 14,703,547 1,729,475 STAMP DUTY FOR LOAN PROCESSING, 3,574,315 1,053,000 INTEREST ON TERM LOAN 33,553,577 59,757,770 TOTAL 208,067,020 205,538,195 NOTE NO. "25" OTHER EXPENSES (A) MANUFACTURING EXPENSES 1 BROKERAGE ON PURCHASE 2,071,229 2,243,772 2 COAL CONSUMED 12,419,897 19,630,045 3 ENTRY TAX 102,053 107,000 4 FACTORY EXPENSES 174,248 265,637 5 FREIGHT (INWARD) 8,042,546 6,915,191 6 FUMIGATION EXPENSES 475,021 513,322 7 HAMMALI AND WAGES 8,222,253 10,981,902 8 HEXANE CONSUMED 9,650,855 6,406,313 9 IMPORT DUTY 2,630,883 10 INSURANCE (GOODS) 675,548 882,027 11 LAB CHEMICAL 7,958,805 13,463,646 12 LOADING UNLOADING EXPENSES 6,995,600 8,150,530 13 MANDI TAX 1,942,939 3,948,445 14 PACKING AND BARDANA EXPENSES 4,222,318 4,596,833 15 PACKING MATERIAL CONSUMED 30,395,124 52,235,410 16 POWER & FUEL 38,798,839 45,512,841 17 QUALITY IMPROVEMENT EXP., 321,248 882,793 18 REPAIRS & MAINTENANCE a) Electric Repair & Maintaince 333,866 - b) Plant & Machinery 6,063,701 7,890,360 c) Building 1,390,101 557,995 19 TRAVELLING EXPENSESS 29,753 19,437 20 WAREHOUSE STORAGE CHARGES 1,140,791 1,100,420 21 WATER CHARGES - 140,760 TOTAL 144,057,618 186,444,679


SITASHREE



(Amount in Rs.)


(B) ESTABLISHMENT & ADMINISTRATIVE EXP.

1 ADVERTISEMENT EXPENSES 188,529 411,456 2 AFTER ASSESSMENT TAX(INCOME TAX), 205,780 3 AGENCY CHARGES (IMPORT), 27,480 4 AMALGAMATION EXP. WRITTEN OFF 93,500 93,500 5 ASSOCIATION & MEMBERSHIP FEES, 105,453 119,530 6 AUDITORS REMUNERATION a) STATUTORY AUDIT FEES 200,000 200,000 b)OTHER PAYMENT TO STATUTORY AUDITOR 53,500 34,500 7 INTERNAL AUDIT FEES 775,000 360,000 8 AUDIT FEES (COST AUDIT), 45,600 40,000 9 BOARD SITTING FEES, 88,000 72,000 10 CHARITY & DONATION - 250,000 11 COMPUTER REPAIR & MAINTENANCE 274,570 548,903 12 DIVERSION TAX (FLOUR), - 287,528 13 DIRECTOR SALARY & PERQUISITE 8,305,881 9,732,256 14 ELECTRIC DUTY EXP., - 28,200 15 FESTIVAL EXPENSES 59,263 167,100 16 FILING FEES 42,200 47,300 17 GARDEN MAINTAINENCE 92,155 92,700 18 INSURANCE EXPENSES 1,914,316 2,995,041 19 INSPECTION CHARGES, 1,123 43,652 20 INTERNET EXPENSES, - 12,500 21 LEGAL & PROFESSIONAL EXPENSES 3,954,541 3,195,850 22 LICENCE & REGISTRATION FEES 226,114 333,614 23 OFFICE EXPENSES 685,586 741,282 24 POOJA EXPENSES 530,638 410,751 25 POSTAGE & TELEGRAM EXPENSES 546,838 907,402 26 PROFESSIONAL TAX 5,000 7,500 27 PROPERTY TAX 255,200 20,000 28 REPAIR & MAINTENANCE 124,759 113,335 29 SECURITY EXPENSES 1,535,489 1,581,122 30 STATIONERY & PRINTING EXPENSES 425,777 507,762 31 TELEPHONE EXPENSES 698,236 899,686 32 TENDER & DOCUMENTS EXP., 215,000 - 33 TESTING FEES 50,102 111,877 34 TRAVELLING & CONVEYANCE EXPENSES 182,326 204,682 35 VEHICLE RUNNING & MAINTENANCE 1,213,242 958,051 36 WEBSITE DESIGNING & UPDATION CHARGES 14,000 9,600 37 HAZARDEOUS WASTE MANAGEMENT CHARGES, - 9,000 38 SERVICE TAX 360,125 409,217 TOTAL 23,495,323 25,956,897 (C) SELLING & DISTRIBUTION EXPENSES 1 BROKERAGE ON SALES 3,816,571 12,021,495 2 TESTING REPORT EXP. - 451,674 3 WAREHOUSE STORAGE CHARGES - 186,830 4 CLEARING & FORWARDING EXPENSES & HANDLING CHARGES 44,896,864 38,331,322 5 AGENCY CHARGES 1,617,050 3,802,285 6 EXPORT INCENTIVE EXPENSES - 10,381


SITASHREE



(Amount in Rs.)


7 CERTIFICATE EXPENSES 75,790 86,510

8 DISCOUNT 6,527,300 9,441,805

9 FREIGHT OUTWARD 29,949,246 37,396,140

10 GOODS INSPECTION CHARGES 1,742,559 2,871,034

11 INSURANCE 1,068,423 2,652,279

12 OTHER EXPENSES 2,676,658 2,843,374

13 RATE DIFFERENCE ON SALES 940,064 (428,177)

14 SALES PROMOTION EXP. 368,754 163,749

15 SHIPPING & FORWARDING EXP 8,312,711 22,225,234

16 TRANSPORATION 459,800 1,179,250

17 TRAVELLING EXP. 191,915 543,789

18 EXPORT EXP., 261,337 42,167

19 SALES TAX PENALTY (SOYA DIV.), 30,130 -

TOTAL 102,935,172 133,821,141

(D) PRIOR PERIOD ITEMS

1 CST (AFTER ASSESTMENT) - 2,500

2 INSPECTION CHARGES PRIOR PERIOD 57,652 38,377

3 BOARD SITTING FEES 5,000 -

4 BROKERAGE 83,977 137,099

5 INCOME TAX APPEAL F.Y.2011-12, 1,000 -

6 INTEREST ON INCOME TAX, 1,034,523

7 PF DEMAND (PRIOR PERIOD), - 884

8 EXCESS PROVIOSION FOR INCOME TAX, - (46,738)

9 LEGAL & PROFESSIONAL EXP., - 8,000

10 ENTRY TAX AFTER ASSESTMENT - (217,257)

11 EXPORT LICENCE - 1,291,823

12 TENDER & DOCUMENTS EXP - (562)

13 WAREHOUSE RENT - 218,069

14 VAT AFTER ASSESTMENT 11-12(SOYA DIV.), 3,001 0

15 CERTIFICATE EXPENSES - 5,618

16 OTHER EXP. - 398,463

17 DEPRECIATION WRITTEN BACK WRONGLY CHARGED EARLIER - (208,160)

18 TED REFUND (PRIOR PERIOD), - 11,126

TOTAL 1,185,153 1,639,242

TOTAL (A TO D) 271,673,266 347,861,959

NOTE NO. "26"

EXCEPTIONAL ITEMES

Loss on Vehicle - 208,969

- 208,969


SITASHREE



(Amount in Rs.)

STCASH FLOW STATEMENT FOR THE YEAR ENDED ON 31 MARCH,2016

(Amount in Rs.)

S.NO. PARTICULARS 31/03/2016 31/03/2015

A CASH FLOWS FROM OPERATING ACTIVITIES

NET PROFIT BEFORE TAXATION 1,698,878 70,202,889

ADJUSTMENTS FOR :

DEPRECIATION 58,860,653 59,192,941

INTEREST/DIVIDEND INCOME (7,454,312) (3,276,764)

PRELIMINARY EXPENSES WRITTEN OFF - -

INTEREST PAID 208,067,020 205,538,195

PROFIT FROM SHARE IN ASSOCIATE 372,559 -

LOSS ON SALE OF FIXED ASSETS - 208,969

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 261,544,798 331,866,230

CHANGE IN TRADE AND OTHER RECEIVABLES (1,130,543,758) (329,377,739)

CHANGE IN INVENTORIES (509,079,920) (321,573,846)

CHANGE IN OTHER CURRENT ASSETS 4,912,405 (7,013,153)

CHANGE IN CURRENT LIABILITIES 1,661,507,269 599,308,260

INCOME TAX (323,721) (14,779,078)

NET CASH FLOW FROM OPERATING ACTIVITIES (A) 288,017,073 258,430,674

B CASH FLOW FROM INVESTING

PURCHASE OF FIXED ASSETS (5,320,176) (47,952,238)

CHANGE IN OTHER LONG TERM LIABILITIES - (6,389,304)

SALE OF FIXED ASSETS - 8,547,635

INVESTMENTS PURCHASED (FDR EXCLUDING INT.) (45,438,116) (22,024,933)

NET CASH FLOW USED IN INVESTING ACITIVIES (B) (50,758,292) (67,818,840)

C CASH FLOWS FROM FINANCING ACTIVITIES

CHANGES IN BORROWINGS (171,444,948) 37,834,451

CHANGE IN CAPITAL 120,000,000 -

INTEREST RECEIVED 7,450,226 3,275,879

DIVIDEND RECEIVED 4,086 885

INTEREST PAID (208,067,020) (205,538,195)

NET CASH FLOW FROM FINANCING ACTIVITIES [C] (252,057,656) (164,426,980)

NET INCREASED IN CASH AND CASH EQUIVALENTS (A+B+C) (14,798,875) 26,184,854

CASH AND CASH EQUIVALENTS (OPENING BALANCE) 34,564,053 8,379,199

CASH AND CASH EQUIVALENTS (CLOSING BALANACE) 19,765,178 34,564,053

As per our report of even date a�ached,

WE CERTIFY TO THE CORRECTNESS OF ABOVE, FOR M. K. SHAH & ASSOCIATES FOR AND ON BEHALF OF THE BOARD CHARTERED ACCOUNTANT (Reg. No. 002077C) DINESH AGRAWAL ANOOP GOYAL ( M.K. SHAH ) (CHAIRMAN) (WHOLE-TIME DIRECTOR& CFO) PROPRIETOR M.NO.:400-71199 PLACE: INDORE ASHISH GOYAL DATE : 06/06/2016 (MANAGING DIRECTOR)


SITASHREE


NOTE NO. “27”STADDITIONAL NOTES ON CONSOLIDATED FINANCIAL STATEMENT FOR THE YEAR ENDED AT 31 MARCH 2016

1. Con�ngent Liability not provided:

S. No. Par�cular 2015-2016 2014-2015

1 Bank Guarantee in Favour of Authori�es 2975000.00 3146000.00

2. Remunera�on to Auditor:

S. No. Par�culars 2015-2016 2014-2015

1 Audit Fees 200000.00 200000.00

2 Other Payments 53500.00 33800.00

Total 253500.00 233800.00

3. Informa�on related to prior period items as per AS-5 is as under:-

a) Detail of prior period items with nature:-

S. No. Par�culars Nature Amount

1 VAT Receivable (A�er Assessment) Statutory (1317728.00)

2 Inspec�on Charges Expenses 57652.00

3 Brokerage Expenses 83977.00

4 Income Tax Appeal (2011-12) Statutory 1000.00

5 Board Si�ng Fees Expenses 5000.00

6 Interest on Income Tax Expenses 1034523.00

7 VAT (A�er Assessment) Statutory 3001.00

Total 132575.00

Above prior period items debited to Profit & Loss A/c of the current financial year and accordingly profit for the year is more by Rs.132575.00/-

4. Remunera�on to Directors:-

S. No. Par�cular 2015-2016 2014-2015

1 Salary 8305881.00 9732256.00

2 Si�ng Fees 88000.00 72000.00

Total 8393881.00 9804256.00

5. Expenditure on employees (excluding perquisite) who are in receipt of remunera�on of not less than Rs. 6000000/- per annum or Rs.500000/- per month when employed for part of the year.

Par�culars 2015-2016 2014-2015

Employees in receipt of remunera�on of not less than Rs. 6000000/- per annum or Rs. 500000/- per month Nil Nil

6. Loans & Advance details: -

S. No Par�culars 2015-2016 2014-15

Long Term Loans & Advances

1 Advance For Capital Work In Progress 30176039.00 30443394.00

2 Advance For Capital Goods 65000.00 0.00


4 Advance For Purchase Of Land 22428000.00 22428000.00

5 Other Loans & Advances 5533975.00 5016709.00

6 Security Deposits ( Govt. Dep. & other) 7442557.00 6589846.00

Total 67703766.00 66536144.00

Short Term Loans & Advances



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2 Advance Income Tax & TDS Receivable 827287.00 2411583.00

3 Advance For Expenses 1763481.00 1905341.00

4 Employee Advances 619121.00 269885.00

Total 19951173.00 23390039.00

7. The provision of deferred tax Asset as on 31/03/2016 has been calculated as under a�er considering the �ming difference in deprecia�on and other as per AS-22 of ICAI.

Par�culars Opening Balance Current Year Closing Balance 01/04/2015 31/03/2016

Deferred Tax Liability due to Difference 73929589.00 11431121.00 85360710.00 between WDV as per Books & as per Income Tax

8. Related Party Disclosures:

i) List of related par�es with whom transac�on have taken place and rela�onship.

Details of related party disclosure as per AS-18 issued by the ICAI are as follows:-

LIST OF RELATED PARTIES AND RELATIONSHIP

1. Key Managerial Personnel

S. No. Name Designa�on

1 Mr. Dinesh Agrawal Chairman

2 Mr. Ashish Goyal (Agrawal) Managing Director

3 Mr. Anoop Goyal (Agrawal) Whole Time Director & CFO

4 Ms. Neha Agrawal Whole-�me Director (from 01.10.2015 to 31.03.2016)

5 Ms. Chitrangda Vishwakarma Company Secretary

2. Rela�ves of Key Management Personnel

S. No. Name of the Rela�ve Rela�on

1 Dinesh Agrawal HUF

2 Ashish Goyal HUF

3 Neha Agrawal Rela�ve of Director

4 Usha Devi Agrawal

5 Rajababu Agrawal

3. List of concerns and nature of control headed by Related Par�es in the reported year

S. No. Name of Party Nature of Control

1 M/s R.J. Marke�ng Limited (formerly known as Sita Shree Marke�ng Limited) Company in which rela�ve is Director

2 M/s M.R. Agro Overseas Limited (formerly known as Sita Shree Overseas Limited) Company in which rela�ve is Director

3 M/s Usha Dall Mill Proprietorship of Rela�ve

4 M/s Kashiya Exports Private Limited Group Company

5 M/s Anoop Foods Limited Associate Company

6 M/s Chandrika Trading Company Proprietorship of Director

7 M/s Chandrika Agri Commodi�es Private Limited Group Company


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ii) Transac�ons held during the year with related par�es:

01.04.2015 - 31.03.2016

2015-16 2014-15STOPENING BALANCE AS ON 1 APRIL 2015

Preference share capital 210000000 210000000

Sundry Debtors 108432395 44876795

Advance for Raw Material 65178759 0

Unsecured Loans taken 132193300 34600000

Current account of Key Managerial Personnel 3901942(Cr.) 494700(Cr.)




Loans & Advance to Subsidiary Nil Nil

TRANSACTIONS

Sale of Goods 264696317 199861204

Purchase of Goods 2766788010 1979237732

Loans & Advances Received 69600010 162990000

Repayment of unsecured loans taken 188335069 34256700

Repayment of Sundry Outstanding Nil Nil

Remunera�on to Key Managerial Personnel 7800000 9732256

Interest Received from Subsidiary Nil Nil

Loans & Advances to Subsidiary Nil Nil

Loans & Advances Recovered (Subsidiary) Nil Nil

Lease Deposit Recovered Nil Nil

Issue of Preference Share 120000000 Nil

STCLOSING BALANCE AS ON 31 MARCH 2016

Preference Share Capital 330000000 210000000

Sundry Debtors 61,036,447.00 108432395

Advance for Raw Material Nil 65178759

Unsecured loans taken 13458241 132193300

Current account Key Managerial Personnel 2865038 (Cr.) 3901942(cr.)




9. Sundry debtors and sundry creditors include firm or Private Limited Company in which Director are a partner or a Director or a Member respec�vely:

A As Debtors 2015-16 2014-15

1 M/s R.J. Marke�ng Limited ( formerly known as Sita Shree Marke�ng Limited) 28551708 7006100


3 Usha Dall Mill 5119545 7069545

Total 61036447 108432395

B As Creditors 2015-16 2014-15

1 M/s M.R. Agro Overseas Limited

(formerly known as Sita Shree Overseas Limited) 8357449 13094229

2 Anoop Foods Limited 36010681 -

3 Kashiya Exports Private Limited 104994941 197001300

4 Chandrika Trading Company 104967641 176731538

5 M/s R.J. Marke�ng Limited

(formerly known as Sita Shree Marke�ng Limited) 28676536 0

Total 283007248 386827067

C As Advance for Purchase of Goods 2015-16 2014-15

1 Anoop Foods Limited 0 65178759.00

Total 0 65178759.00

10. Earnings per Share

S. No. Par�culars 2015-16 2014-15

1 Net Profit a�er tax available for equity share holders (10055965.00) 24608363.00

2 Weighted average number of equity share 27834174.00 27834174.00

3 Basic & Diluted Earnings Per Share (Rs.)

(Face Value of Rs.10/- each) (0.36) 0.88

11. Disclosures In Respect Of Provisions Pursuant To Accoun�ng Standard-29:-

S. No. Par�cular Opening Provided U�lized Reversed Closing Balance during during during Balance as on the year the year the year as on 01/04/2015 31/03/2016

1 Proposed dividend on equity Share Nil Nil Nil Nil Nil

2 Corporate Dividend Tax Nil Nil Nil Nil Nil

3 Provision for Income Tax 14779078 1358244 7420982 Nil 8716340

12. Addi�onal informa�on to Note 5 of Part II of the Schedule III of the Companies Act, 2013 has been furnished as per Annexure – I.

13. In view of the insufficient informa�on from suppliers regarding their status as SSI/SME Company amount overdue to such

undertaking could not be ascertained but the management does not envisage any material impact on the Financial

Statement.

15. The part of trade receivables and trade payables shown in Balance Sheet as on 31/03/2016, includes same par�es to

whom the company has made sales as well as purchases of different products and shown in trade recievables as well as

trade payables and by maintaining seperate account.

16. In the opinion of the Board of Directors the current assets loans and advances including deposits have value on realiza�on

in the ordinary courses of business at least equal to the amount at which they are stated in the Balance Sheet and provision

for all known liabili�es is adequate and not in excess of the amount which is reasonably necessary.

Signed to Note “01” to “15”In terms of our report of even date a�ached WE APPROVE TO THE CORRECTNESS OF ABOVE

For : M.K.SHAH & ASSOCIATES FOR AND ON BEHALF OF THE BOARDCHARTERED ACCOUNTANTS(Regn.No.002077C) DINESH AGRAWAL ANOOP GOYAL (M.K. SHAH) (CHAIRMAN) (WHOLE-TIME DIRECTOR & CFO)Proprietor M.NO. 400-71199 ASHISH GOYAL (MANAGING DIRECTOR)


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SITASHREE


SITASHREEFOODPRODUCTSLIMITEDREGD.OFFICE:332/4/2,R.D.UDYOGNAGAR,PALDA,NEMAWARROAD,INDORE(M.P.)-452020

CIN:L15314MP1996PLC010741FormNo.MGT-11

Proxyform[Pursuanttosection105(6)oftheCompaniesAct,2013andrule19(3)oftheCompanies(ManagementandAdministration)Rules,2014]

NameoftheMember(s)RegisteredAddressE-mailId FolioNo/ClientID DPID

I/We,beingthemember(s)of____________sharesoftheabovenamedcompany.Herebyappoint

Name: E-mailId:Address:Signature…………………………………………………..,orfailinghim



thasmy/ourproxy,toactforme/usatthemeetingoftheequityshareholder(s)oftheCompanytobeheldonFriday,the30 dayofSeptember,2016at10:30A.M.at“332/4/2,R.D.UdyogNagar,Palda,Indore-M.P.-452020,forthepurposeofconsideringand,ifthought�it, approving,with orwithoutmodi�ication(s), an arrangement proposed to bemade between the said company and its equityshareholder(s)andatsuchmeetingandatanyadjournmentthereof,tovote,forme/usandinmy/ourname/s……….......................[here,‘iffor’,insert‘for’;‘ifagainst’,insert‘against’,andinthelattercase,strikeoutthewordsbelowafterarrangement’]thesaidarrangementeitherwithorwithoutmodi�icationasmy/ourproxymayapprove.

ResolutionNo.Sl.No. Resolution(S) Vote For Against1. ToconsiderandadopttheAuditedBalanceSheetasat31stMarch,2016andthePro�it&LossAccountofthe CompanyfortheyearendedonthatdatetogetherwiththeAuditorsandBoard’sReportthereon. 2. ToappointadirectorinplaceofMr.DineshAgrawal(DIN:00348853),whoretiresbyrotationandbeing eligible,offershimselfforre-appointment. 3. ToratifytheappointmentofAuditorsoftheCompanyandto�ixtheirremuneration 4. AppointmentofMrs.AnshuGoyalasDirectoroftheCompany 5. ToratifytheremunerationofCostAuditorsforthe�inancialyear2015-16 6. ApprovalforRelatedPartyTransactions

*ApplicableforinvestorsholdingsharesinElectronicform.*[Strikeoutwhatisnotnecessary.]Signedthis__________dayof_____________,2016

SignatureofShareholder SignatureofProxyholder Signatureoftheshareholder AcrossRevenueStampNote:1. ProxytobedepositedattheRegisteredOf�iceoftheCompanyat“332/4/2,R.D.UdyogNagar,Palda,Indore-M.P.-452020,”not laterthanFORTY-EIGHThoursbeforethemeeting.2. AllalterationsmadeintheFormofProxyshouldbeinitialed.3. Pleaseaf�ixappropriateRevenueStampbeforeputtingsignature.4. Incaseofmultipleproxies,proxylaterintimeshallbeaccepted.5.AproxyneednotbeashareholderoftheCompany.

ATTENDANCESLIP(Tobehandedoverattheentranceofthemeetinghall)

th th20 AnnualGeneralMeetingon30 September,2016Fullnameofthemembersattending__________________Inblockcapitals)LedgerFolioNo./ClientIDNo.________________No.ofsharesheld:_____________________NameofProxy _________________ (Tobe �illed in, if theproxyattends insteadof themember) Iherebyrecordmy

thpresenceattheANNUALGENERALMEETINGoftheCompanyconvenedonFriday,the30 dayofSeptember,2016at10.30A.M.at332/4/2,R.D.UdyogNagar,Palda,Indore-M.P-452020. (Member’s/Proxy’sSignature)

Afx Revenue

Stamp


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Note:1. MembersarerequestedtobringtheircopiesoftheAnnualReporttothemeeting,sincefurthercopieswillnotbeavailable.2. TheProxy,tobeeffectiveshouldbedepositedattheRegisteredOf�iceoftheCompanynotlessthanFORTYEIGHTHOURSbefore

thecommencementofthemeeting.3. AProxyneednotbeamemberoftheCompany.4. Inthecaseofjointholders,thevoteoftheseniorwhotendersavote,whetherinpersonorbyProxy,shallbeacceptedtothe

exclusionofthevoteoftheotherjointholders.SeniorityshallbedeterminedbytheorderinwhichthenamesstandintheRegisterofMembers.

5. Thesubmissionbyamemberofthisformofproxywillnotprecludesuchmemberfromattendinginpersonandvotingatthemeeting.

-------------------------------------------------------------------------TEARHERE--------------------------------------------------------------------------TheE-VotingParticularsaresetoutasbelowNote:PleasereadcommoninstructionscarefullybeforeexercisingthevoteTheE-Votingfacilitywillbeavailableduringthefollowingvotingperiod:CommencementofE-voting EndofE-voting

th thFrom09.00A.M.(IST)on27 DayofSeptember,2016 Upto05.00P.M.(IST)on29 DayofSeptember,2016Note:Theprocedureandinstructionsfore-votingasprovidedintheNoticeshouldbefollowed.

AGMVENUEROUTEMAP

AGMVENUE:332/4/2,R.D.UDYOGNAGAR,PALDA,NEMAWARROAD,INDORE(M.P.)–452020ROUTEGUIDANCE:1. EasyLocalTransit,LocalTaxi(MiniVan)andHiredCabs*availableforreachingtoAgrasenSquare,SnehNagar,Navlakha,Indore

Fromthefollowingplaces:a. Airport,b. RailwayStation,c. SarvateBusStandandd. NavlakhaBusStand2. FromAgrasenSquare,SnehNagar,Navlakha,IndoreyoucaneasilyreachR.D.UdyogNagar,Palda,NemawarRoad,Indore(AGM

Venue)viafollowingmodesoftransit:a. LocalTaxi(MiniVan)andHiredCabs.

AgrasenSquare,SnehNagar,Navlakha

SitaShreeFoodProductsLtd.

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ffi SHHEEffi - Moneycontrol.com · 2017. 2. 1. · Shri Ashish Goyal - Managing Director 3. Shri...

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