3F INDUSTRIES LIMITED

th
55 ANNUAL REPORT
2014-2015
 3F INDUSTRIES LIMITED
(Formerly known as Foods Fats & Fertilisers Limited)
Regd. Office: Tanuku Road, Tadepalligudem, Andhra Pradesh – 534101
CIN: U24120AP1960PLC000888

NOTICE

The Shareholders,
3F Industries Limited
(Formerly Foods, Fats &Fertilizers Limited)

NOTICE is hereby given that the Fifty Fifth Annual General Meeting of the Shareholders of 3F
Industries Limited, will be held on Monday, 28th September 2015at 10.00 a.m. at the Registered
Office of the Company at Tanuku Road, Tadepalligudem 534 101, West Godavari District,
Andhra Pradesh to transact the following business:

ORDINARY BUSINESS:

1. To receive, consider and adopt the Standalone & Consolidated Audited Statement of
Profit and Loss for the year ended March 31, 2015, the Balance Sheet as at that date and
the Report of Directors and Auditors thereon.

2. To declare dividend on equity shares.

3. To appoint a Director in the place of Mr. Shiv BhagwanGoenka (DIN: 00350224), who
retires by rotation and being eligible, offers himself for re-appointment.
4. To appoint a Director in the place of Mr. JiveshGoenka (DIN: 00533134), who retires by
rotation and being eligible, offers himself for re-appointment.

5. To appoint a Director in the place of Mr. JitendraGoenka (DIN: 0148556), who retires by
rotation and being eligible, offers himself for re-appointment.

6. To appoint a Director in the place of Mr. SanjayGoenka (DIN: 01470021), who retires by
rotation and being eligible, offers himself for re-appointment.

7. To appoint auditors and fix their remuneration. In this connection, to consider and if
thought fit, to pass the following as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 139 and other applicable
provisions if any, of the Companies Act 2013, and the Rules framed thereunder,
M/s.Brahmayya& Co. (Firm Registration No.: 000513S), Chartered Accountants,
Vijayawada, be and are hereby re-appointed to hold office until the conclusion of the
next Annual General Meeting and that the Board of Directors be and are hereby
authorised to fix such remuneration as may be determined by the Audit Committee in
consultation with the Auditors, and that such remuneration as may be agreed upon
between the Auditors and the Board of Directors.”
SPECIAL BUSINESS:
8. To consider and if thought fit, to pass with or without modifications, the following as
an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 152 of the Companies Act, 2013,
Mrs.SeemaGoenka (DIN 07101857), be and is hereby appointed as a Director of the
Company.”

9. To consider and if thought fit, to pass with or without modifications, the following as
Special Resolution:

“RESOLVED THAT pursuant to Section 196, 197, 198 & 203 and with Schedule V of the
Companies Act 2013 read with applicable rules & provisions thereunder, Mrs.
SeemaGoenka(DIN 07101857), as be and is hereby appointed as Whole time
Director for a period of three years with effect from 19th February 2015.”

“RESOLVED FURTHER THAT pursuant to Sec 198 read with Schedule V and rules made
thereunder other applicable provisions if any, of the Companies Act 2013, consent of
the company be and is hereby accorded for the payment of remuneration, perquisites
and other benefits as mentioned below.
Sl.No. Particulars/Perquisites Amount/Value Allowed

1. Remuneration Basic Salary not exceeding Rs.

1,50,000/- per month with an
annual increment of 10% to 40% as
may be decided by the ‘Board’ from
time to time

2. Contribution to Public Provident Fund Eligible as per the Rules of the

Company.

3. Rent Free Accommodation & reimbursement of rent Eligible as per the company policies
paid
4. Car Eligible to have one Car. Brand,
Model to be decided by the Board
and should be used for performing
official duties only.

5. Driver Eligible to have one driver for office

use only.

6. Gratuity Eligible as per the rules of the

company.

7. Insurance Eligible to have personal accident

insurance up to a value of Rs.10
Crores.

8. Tuition Fees Eligible up to Rs.5000/- each for 2

children per month.

9. Travelling and Entertainment Expenses Eligible to get reimbursement of

actual expenditure incurred
whenever travels in India and
Overseas in connection with the
Company's business and also
entertainment expenditure.

10. Superannuation Fund Entitled up to Rs.1 Lac.

11. Medical reimbursement As per the rules of the Company

and as may be decided by the
Board.

THE ABOVE REMUNERATION SHALL BE THE MINIMUM REMUNERATION PAYABLE IN CASES OF

INADEQUACY OF PROFITS.

10. To consider and if thought fit, to pass with or without modification(s), the following
Resolution as a Special Resolution:
“RESOLVED THAT the Memorandum of Association of the Company be amended in the
following manner: The existing Clause V of the Memorandum of Association be and is
hereby deleted and in its place the following be and is hereby substituted as Clause V.
 V. The Authorized Share Capital of the Company is Rs. 18,00,00,000 (Rupees
EighteenCrores only) divided into 1,80,00,000 (OneCrore& Eighty Lakh only) Equity
Shares of Rs.10/- each with power to increase or reduce the capital of the Company and
to divide the shares in the capital for, the time being into several classes and to attach
thereto respectively such preferential, deferred, qualified or special rights, privileges or
conditions as may be determined by or in accordance with the Articles of Association of
the Company and to vary, modify, amalgamate or abrogate any such rights, privileges or
conditions in such manner as may for the time being be provided by the Articles of
Association of the Company”.

11. To consider and if thought fit, to pass with or without modification(s), the following
Resolution as a Special Resolution:
“RESOLVED THAT the Articles of Association of the Company be amended in the
following manner: The existing Clause IV of the Articles of Association be and is hereby
deleted and in its place the following be and is hereby substituted as ArticleIV.

IV. The Authorized Share Capital of the Company is Rs. 18,00,00,000 (Rupees
EighteenCrores only) divided into 1,80,00,000 (OneCrore& Eighty Lakh only) Equity
Shares of Rs.10/- each with power to increase or reduce the capital of the Company and
to divide the shares in the capital for, the time being into several classes and to attach
thereto respectively such preferential, deferred, qualified or special rights, privileges or
conditions as may be determined by or in accordance with the Articles of Association of
the Company and to vary, modify, amalgamate or abrogate any such rights, privileges or
conditions in such manner as may for the time being be provided by the Articles of
Association of the Company”.
 12. To consider and if thought fit, to pass with or without modifications, the following as
an Special Resolution:

“RESOLVED THATpursuant to the provisions of Section 73 & Section 76 of the Companies Act,
2013 (the Act), read with the Companies (Acceptance of Deposits) Rules, 2014 (the Rules), and
other applicable provisions if any, and subject to such conditions, approvals, permissions, as
may be necessary, consent of the members be and is hereby accorded to the Company for
inviting/accepting/renewing unsecured deposits from its members and public for an amount
not exceeding the limits as specified by the Rules / Act from time to time.

FURTHER RESOLVED THATMr. S.B. Goenka / Mr. S.R. Goenka / Mr. SushilGoenka / Mr. O.P.
Goenka , Directors of the Company, be and are hereby severally authorised to issue the circular
/ circular in the form of advertisement, which has been approved by the Board of Directors of
the Company at their meeting held on 3rd September 2015 and which delineates the salient
features of the Fixed Deposit Scheme of the Company and other relevant particulars as
prescribed by the Act and Rules.

FURTHER RESOLVED THATMr. S.B. Goenka / Mr. S.R. Goenka / Mr. SushilGoenka / Mr. O.P.
Goenka, Directors of the Company, be and are hereby severally authorised to have the circular
/ circular in the form of advertisement, which has been duly signed by a majority of the
Company’s Board of Directors, filed with the Registrar of Companies, Hyderabad, pursuant to
the Rules, and to publish the same in an English newspaper (in English language) and in a
vernacular newspaper (in vernacular language), having wide circulation in the State of
Hyderabad wherein the Registered Office of the Company is situated.

FURTHER RESOLVED THATfor the purpose of giving effect to this Resolution, the any of the
Directors be and is hereby severally authorised to do such acts, deeds, matters and things as
may in their absolute discretion consider necessary, proper, expedient, desirable or appropriate
and take all necessary and desirable steps for the aforesaid purpose and matters incidental
thereto.”

13. To consider and if thought fit, to pass with or without modifications, the following as a
Special Resolution:
“RESOLVED THATThe total managerial remuneration of all the whole time Directors including
the commission payable, amounting to Rs. 48452993 for the Financial year 2014-15 and which
exceeds the 10% of the eligible net profits of the company as computed under Section 197,198
read with Schedule V of the Companies Act 2013 by Rs. 7183688.45 be and are bereby
approved”.

14. To consider and if thought fit, to pass with or without modifications, the following as
an Special Resolution:

“RESOLVED THAT pursuant to the provisions of Section 180 (1) (a) of the Companies Act, 2013,
the Company be and is hereby authorized for selling, mortgaging and / or charging the whole or
substantially the whole of the immovable and movable properties of the Company where so
ever situate, present and future and the whole or substantially the whole of the undertaking or
the undertakings of the Company and/or conferring power to enter upon and take possession
of the assets of the Company in certain event to or in favor of Financial Institutions/Banks or
any other person(s) for securing any loan obtained/ to be obtained, together with interest,
costs, charges, expenses and any other money payable by the Company to them.”

15. To consider and if thought fit, to pass with or without modifications, the following as
an Special Resolution:

“RESOLVED THAT pursuant to the provisions of Section 180 (1) (c) and other applicable
provisions if any, of the Companies Act, 2013 and subject to such other provisions as may be
applicable from time to time, the Company be and is hereby authorized to borrow money, from
time to time at its discretion either from the Company’s bankers or from any other banks,
financial institution or any other lending institutions or persons on such terms and conditions as
may be considered suitable by the Board of Directors for the business of the Company,
notwithstanding that the monies to be borrowed together with the monies already borrowed
by the Company (apart from the temporary loans obtained from the Company’s bankers in the
ordinary course of business) exceeding the aggregate of the paid-up capital of the Company
and its free reserves (i.e., reserves not set apart for any specific purpose) by an increased total
amount not exceeding Rs. 750 Crores be and is hereby approved.”

16. To consider and if thought fit, to pass with or without modifications, the following as
an Special Resolution:
“RESOLVED THAT in supercession of all the earlier resolutions passed in this regard
pursuant to the provisions of Section 186and other applicable provisions if any, of the
Companies Act, 2013 and subject to such other provisions as may be applicable from time
to time, the Company be and is hereby authorized to grant loans/ make investments to any
companies other than its wholly owned subsidiary companies upto any amount so that the
total outstanding does not exceed Rs.100 Crores at any point of time irrespective of
whether the same exceeds the limits as prescribed under Section 186 of the Companies Act
2013.

17. To consider and if thought fit, to pass with or without modifications, the following as
an Special Resolution:
“RESOLVED THAT in supercession of all the earlier resolutions passed in this regard
pursuant to the provisions of Section 186and other applicable provisions if any, of the
Companies Act, 2013 and subject to such other provisions as may be applicable from time
to time, the Company be and is hereby authorized to provide corporate guarantee for
facilities granted to companies other than wholly owned subsidiary companies upto any
amount so that the total outstanding does not exceed USD 20 million or Rs. 130 crores at
any point of time irrespective of whether the same exceeds the limits as prescribed under
Section 186 of the Companies Act 2013.
 18. To consider and if thought fit, to pass with or without modifications, the following as a
Special Resolution:

“RESOLVED THAT pursuant to the provisions of Section 188 of the Companies Act 2013, read
with rules made thereunder the transactions which has already been entered into by the
Company with the related parties upto an aggregate value of not exceeding Rs. 1000 Crores in
any one financial year as set out in ‘Table – A’ of the Resolution be and are hereby approved

“RESOLVED THAT pursuant to the provisions of Section 188 of the Companies Act 2013, read
with rules made thereunder, the company be and is hereby authorized to enter into
transactions with the related parties for an aggregate value of not exceeding Rs.1000 Crores in
any one financial year as set out in ‘Table – A’ of the Resolution in respect of arms length
pricing of such transaction, if there be any dispute / decision by revenue authorities / ultimate
legal authorities / Courts.

‘Table – A’

Name of the Name of the Nature of relationship Nature, material terms,

Related Party Director or KMP, if monetary value and
any particulars of the
contract or arrangement
3F Oil Palm Mr. S.B. Goenka Common Directors on *Purchase of
Agrotech Private Mr. Sanjay Goenka the Boards of both the goods/services for an
Ltd. Mr. SushilGoenka Companies aggregate value of not
exceeding Rs.200 crores
Holding – Subsidiary in any one financial year.
Company

3F Ghana Limited Mr. S.B. Goenka Common Directors on *Purchase of

 Mr. SitaramGoenka the Boards of both the goods/services for an
Mr. SushilGoenka Companies aggregate value of not
Mr. JiveshGoenka exceeding Rs.100 Crores
Holding – Subsidiary in any one financial year.
Company

3F Ghana Holding – Subsidiary *Purchase of

Commodities Company goods/services for an
Limited aggregate value of not
exceeding Rs.100 Crores
in any one financial year.
3F Global Mr. S.B. Goenka Common Directors on *Purchase of
Singapore Pte. Mr. SushilGoenka the Boards of both the goods/services for an
Ltd. Mr. SitaramGoenka Companies aggregate value of not
Mr. JiveshGoenka exceeding Rs300 Crores
Holding – Subsidiary in any one financial year.
Company
3F Ghana Limited Mr. S.B. Goenka Common Directors on *Sale of goods/services
Mr. SitaramGoenka the Boards of both the for an aggregate value of
Mr. SushilGoenka Companies not exceeding Rs.50
Mr. JiveshGoenka Crores in any one
Holding – Subsidiary financial year.
Company
3F Global Mr. S.B. Goenka Common Directors on *Sale of goods/services
Singapore Pte. Mr. SushilGoenka the Boards of both the for an aggregate value of
Ltd. Mr. SitaramGoenka Companies not exceeding Rs.50
Mr. JiveshGoenka Crores in any one
Holding – Subsidiary financial year.
Company
Loan from Mr. S.B. Goenka “Related party” as per *For a value not
Directors Mr. S.R. Goenka the definition of Section exceeding Rs. 100 Crores
Mr. Bharat Kumar 2(76) of the Companies p.a. in any one financial
Goenka Act 2013 year.
Mr. Sushil Goenka
Mr. Om Prakash
Goenka
Mr. Jivesh Goenka
Mr. Jitendra Goenka
Mr. Sanjay Goenka
Mrs. Seema Goenka
Any other related *For a value not
party exceeding Rs. 100 Crores
p.a. in any one financial
year.

*Note: All the values are for p.a.

19. To consider and if thought fit, to pass with or without modifications, the following as
an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 148 and its related and applicable
provisions of the Companies Act, 2013, read with Companies (Audit and Auditors) Rules, 2014,
(including any statutory modification(s) or re-enactment thereof, for the time being in force),
the remuneration as may be decided by the Board plus reimbursement of reasonable out-of-
pocket expenses actually incurred for the Financial Year ending March 31, 2016 as approved by
the Board of Directors of the Company, be paid to M/s. Narasimha Murthy & Co., Cost
Accountants, Hyderabad, for the conduct of cost audit of the cost records of the company, be
and is hereby ratified and confirmed.
FURTHER RESOLVED THATthe Board of Directors of the Company be and is hereby authorised
to do all acts and take all such steps as may be necessary, proper or expedient to give effect to
this Resolution.”

Registered Office By order of the Board

Tanuku Road, For 3F INDUSTRIES LIMITED

Tadapalligudem (Formerly Foods, Fats &Fertilisers Limited)
West Godavari District
Andhra Pradesh
(S. RANGARAJAN)
Vice President Finance & Company Secretary

Date: 03.09.2015

NOTES:
1.A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING, IS ENTITLED TO APPOINT A
PROXY TO ATTEND AND VOTE, INSTEAD OF HIMSELF AND THE PROXY NEED NOT BE A
MEMBER. THE PROXY FORM DULY STAMPED AND EXECUTED SHOULD BE DEPOSITED AT THE
REGISTERED OFFICE OF THE COMPANY AT LEAST 48 HOURS BEFORE THE TIME FIXED FOR THE
COMMENCEMENT OF THE MEETING.

2.The relative Explanatory Statement, pursuant to Section 102 of the Companies Act, 2013 in
respect of items set out as Special Business is annexed hereto.

3. All communications and correspondence including change of address to be sent to

the Registered office of the company.

4. Pursuant to the provisions of Section 91 of the Companies Act 2013, the Register of Members
and Share Transfer books of the Company will remain closed from 21st SEPTEMBER 2015 TO
28TH SEPTEMBER 2015(both days inclusive) for the Annual General Meeting of the Company to
be held on 28th September 2015.

EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT 2013:

ITEM 8:
Pursuant to Section 161 of the Companies Act 2013, the Board of Directors appointed
Mrs.SeemaGoenka (DIN07101857), as additional director of the Company with effect from 19th
February 2015. To regularize her appointment as Director of the Company, necessary notices in
this regard has been received from the member pursuant to Section 160 of the Companies Act,
2013.

The Board recommends the Resolution for the consideration of the members.

Except Mr Shiv Kumar Agarwal, Mr V K Saraogi and Mr S. K.Jatia, all the other directors are
concerned and interested in the above resolution.

ITEM 9:
At the Board Meeting held on 19th February 2015, Mrs. SeemaGoenka(DIN 07101857), was
appointed as Whole-time Director of the Company subject to the approval of the shareholders
as specified in Item No. 9 of the Special Business.

Mrs. SeemaGoenka is 57 years old & holds bachelor’s degree in General management and since
she is in the position of Vice President in the Company, it is more appropriate to appoint her as
a whole-time director of the Company.

She doesn’t hold directorship in any other Companies.

The Board recommends the Resolution for the consideration of the members.
Except Mr Shiv Kumar agarwal, Mr V K Saraogi and Mr S. K.Jatia, all the other directors are
concerned and interested in the above resolution.

ITEM 10& 11:

The present Authorized Share Capital of the Company is Rs. 13,00,00,000 (Rupees Thirteen
Crores only) divided into 130,00,000 Equity Shares of Rs.10/- each.

Pursuant to the amalgamation of 3F Industries Limited (3FIL) with Asia Pacific Commodities
Limited (APCL) vide High Court of Hyderabad’s order dt. 12.08.2014, w.e.f.01.04.2014 as
appointed date, there has been an increase in the authorized share capital of 3F Industries by
an addition of Rs. 5 Crores of the authorized share capital of Asia Pacific Commodities Limited
(APCL) thereby amounting to a total ofRs. 18 Crores.

Therefore consent of the members of 3F Industries Limited is required to be obtained by way of

special resolution for alteration of Clause V of the Memorandum of Association and Article 4 of
the Articles of Association of the Company.

Hence the resolution No.10 and 11 is placed for consideration of the members.

A copy of the Memorandum and Articles of Association is available for inspection by the
members during office hours at the Registered Office of the Company on any working day up to
the date of the meeting.

None of the Directors are concerned / interested in this resolution.

ITEM 12:
The members are informed that the Company has a Public Deposit scheme, pursuant to the
provisions of Companies Act 1956, read with the Companies (Acceptance of Deposits) Rules
1975, wherein it accepts / renews unsecured deposits from the members of the Company and
public.

The members are further informed that vide notification dated 26 th March 2014, the Ministry of
Corporate Affairs (MCA) notified Sections 73, 74(1), and 76 of the Companies Act 2013 (the
Act), relating to acceptance of deposits from its members and public to take effect from 1 st
April 2014. The Companies (Acceptance of Deposits Rules), 2014 (the Rules) also came into
force w.e.f. 1st April 2014., to apply to public companies having net worth of not less than
Rs.100 Crores or turnover of not less than Rs. 500 Crores. Since the Act and Rules would be
applicable to the Company’s existing Public Deposit scheme, it would necessitate the Company
to comply with the requirements of the Act and also to ensure compliance with the Rules,
before commencing acceptance / renewal of Deposits from the public.

Attention to the members is drawn to the provisions of the Act, which requires any company
inviting / accepting / renewing deposits from the public to obtain credit rating from a
recognized credit rating agency. The Company has obtained Credit Rating for its fixed deposit
scheme from CREDIT ANALYSIS AND RESEARCH LIMITED(CARE) which has granted a rating of
BBB+(FD).Also, the Company shall be taking a deposit insurance towards the unsecured
deposits as may be accepted by it.

The Board of Directors of the Company at its meeting held on 03.09.2015 have subject to the
approval of the members, approved the acceptance / renewal of unsecured deposits by the
company from its members and from public. The Board has also approved the circular for
acceptance / renewal of unsecured deposits from members of the company and from public
and the same has been duly signed by a majority of Directors present at the Meeting.

Your Directors commend the Special Resolution as set out in the Notice for the approval of the
members of the Company.
No Director of the Company is concerned with or interested in the Resolution of the Notice,
except to the extent of any deposit that they may have placed with the Company under its
present Public Deposit scheme.

ITEM 13:
The total managerial remuneration paid to all the whole time Directors including the proposed
commission will be Rs. 48452993 and which exceeds of the net profits of the company by Rs.
7183688.45 as laid down under Section 197 & 198 read with Schedule V of the Companies Act
2013 and the same is placed before the shareholders for its ratification & approval based on
the recommendations of the Board.

Except Mr Shiv Kumar agarwal, Mr V K Saraogi and Mr S. K.Jatia, all the other directors are
concerned and interested in the above resolution.
ITEM 14 & 15:

Section 180 of the Companies Act, 2013 (notified on September 12, 2013) mandates that the
aforementioned powers of the Board shall be exercised only through Special Resolution passed
in the meeting of the shareholders as compared to the requirement of Ordinary Resolution
under the previous Act.

Consequently, the Board recommends the shareholders to pass a Special Resolution under
Section 180(1)(c) and Section 180(1)(a) of the Companies Act 2013 that that the monies to be
borrowed together with the monies already borrowed by the Company (apart from the
temporary loans obtained from the Company’s bankers in the ordinary course of business)
exceeding the aggregate of the paid-up capital of the Company and its free reserves (i.e.,
reserves not set apart for any specific purpose) by an increased total amount of not exceeding
Rs. 750 Crores.

None of the Directors, KMP or relatives of KMP are concerned or interested in this Resolution.
ITEM 16:
The increase in volume of business by these companies obviously necessitates increase in
working capital requirements. In view of this, the Chairman suggested the Board to consider the
proposal for granting loans (both short term & long term) /making investments to any other
companies other than wholly owned subsidiaries upto any amount so that the total outstanding
does not exceed Rs. 100 Crores at any point of time subject to the approval of the shareholders
in the Annual General Meeting and accordingly the same is placed before the shareholders for
their approval.
Except Mr Shiv Kumar agarwal, Mr V K Saraogi and Mr S. K.Jatia, all the other directors are
concerned and interested in the above resolution.

ITEM 17:
The increase in volume of business by these companies obviously necessitates increase in
working capital requirements. In view of this, the Chairman suggested the Board to consider the
proposal for providing corporate guarantee for facilities granted to companies other than
wholly owned subsidiaries upto any amount so that the total outstanding does not exceed USD
20 million or Rs. 130 Crores at any point of time and accordingly the same is placed before the
shareholders for their approval.
Except Mr Shiv Kumar agarwal, Mr V K Saraogi and Mr S. K.Jatia, all the other directors are
concerned and interested in the above resolution.

ITEM 18:
The following transactions entered / to be entered by the Company with the related party are
placed before the shareholders for their approval.
Name of the Name of the Nature of relationship Nature, material terms,
Related Party Director or KMP, if monetary value and
any particulars of the
contract or arrangement
3F Oil Palm Mr. S.B. Goenka Common Directors on *Purchase of
Agrotech Private Mr. Sanjay Goenka the Boards of both the goods/services for an
Ltd. Mr. SushilGoenka Companies aggregate value of not
exceeding Rs.200 crores
Holding – Subsidiary in any one financial year.
Company
3F Ghana Limited Mr. S.B. Goenka Common Directors on *Purchase of
Mr. SitaramGoenka the Boards of both the goods/services for an
Mr. SushilGoenka Companies aggregate value of not
Mr. JiveshGoenka exceeding Rs.100 Crores
Holding – Subsidiary in any one financial year.
Company

3F Ghana Holding – Subsidiary *Purchase of

Commodities Company goods/services for an
Limited aggregate value of not
exceeding Rs.100 Crores
in any one financial year.
3F Global Mr. S.B. Goenka Common Directors on *Purchase of
Singapore Pte. Mr. SushilGoenka the Boards of both the goods/services for an
Ltd. Mr. SitaramGoenka Companies aggregate value of not
Mr. JiveshGoenka exceeding Rs300 Crores
Holding – Subsidiary in any one financial year.
Company
3F Ghana Limited Mr. S.B. Goenka Common Directors on *Sale of goods/services
Mr. SitaramGoenka the Boards of both the for an aggregate value of
Mr. SushilGoenka Companies not exceeding Rs.50
Mr. JiveshGoenka Crores in any one
Holding – Subsidiary financial year.
Company
3F Global Mr. S.B. Goenka Common Directors on *Sale of goods/services
Singapore Pte. Mr. SushilGoenka the Boards of both the for an aggregate value of
Ltd. Mr. SitaramGoenka Companies not exceeding Rs.50
Mr. JiveshGoenka Crores in any one
 Holding – Subsidiary financial year.
Company
Loan from Mr. S.B. Goenka “Related party” as per *For a value not
Directors Mr. S.R. Goenka the definition of Section exceeding Rs. 100 Crores
Mr. Bharat Kumar 2(76) of the Companies p.a. in any one financial
Goenka Act 2013 year.
Mr. Sushil Goenka
Mr. Om Prakash
Goenka
Mr. Jivesh Goenka
Mr. Jitendra Goenka
Mr. Sanjay Goenka
Mrs. Seema Goenka
Any other related *For a value not
party exceeding Rs. 100 Crores
p.a. in any one financial
year.

*Note: All the values are for p.a.

None of the Directors are directly concerned or interested in this resolution except those who
are also Directors in the respective companies.

ITEM 19:
The Board, on recommendation of the Audit Committee, has approved the appointment and
remuneration of M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad, as may be
decided by the Board plus reimbursement of reasonable out-of-pocket expenses actually
incurred, as Cost Auditor to conduct the audit of the cost records of the Company for the
Financial Year ending March 31, 2016.
In accordance with the provisions of Section 148 of the Act read with the Companies (Audit &
Auditors) Rules, 2014, the remuneration payable to the Cost Auditors has to be ratified by the
shareholders of the Company.

Accordingly, consent of the members is sought for passing an Ordinary Resolution as set out in
Item No. 15, of the Notice for ratification of the remuneration payable to the Cost Auditors for
the Financial Year ending March 31, 2016.

None of the Directors and Key Managerial Personnel of the Company and their relatives is, in
any way, concerned or interested in this Resolution.
 3F INDUSTRIES LIMITED
(FORMERLY FOODS FATS & FERTILIZERS LIMITED)
(CIN: U24120AP1960PLC000888

REGISTERED OFFICE: POST BOX NO 15, TANUKU ROAD, TADAPALLIGUDEM – 534101,

WESTGODAVARI DISTRICT, ANDHRA PRADESH

CORPORATE OFFICE: ‘AADHAARSHILA’, 36, C.P. RAMASAMY ROAD, ALWARPET, CHENNAI –

600 018

BOARD OF DIRECTORS
Shri. S.B. GOENKA
Chairman &Whole time Director

Shri. OM PRAKASH GOENKA

Whole time Director

Shri. BHARAT KUMAR GOENKA

Whole time Director

Shri. SITARAM GOENKA

Whole time Director

Shri. SUSHIL GOENKA

Whole time Director

Shri. JIVESH GOENKA

Whole time Director

Shri. JITENDRA GOENKA

Whole time Director

Smt. SEEMA GOENKA

Whole time Director

Shri. SANJAY GOENKA

Director

Shri. SHIVKUMAR JATIA

Director

Shri. VINOD KUMAR SARAOGI

Independent Director

Shri. SHIVKUMAR AGARWAL

Independent Director
CORPORATE OFFICE:
‘AADHAARSHILA’ POST BOX NO 15,
36, C.P. RAMASAMY ROAD, TANUKU ROAD,
ALWARPET, TADAPALLIGUDEM – 534101
CHENNAI – 600 018 WESTGODAVARI DISTRICT
ANDHRA PRADESH

WORKS: BRANCHES:
TANUKU ROAD, MUMBAI, HYDERABAD
TADAPALLIGUDEM – 534101 NEW DELHI, KAKINADA
WEST GODAVARI DISTRICT
ANDHRA PRADESH

SURVEY NO: 1604, APIIC-IALA,

EPURU(1B), PANTAPALEM VILLAGE,
MUTHUKUR MANDAL,
SPSR NELLORE DISTRICT – 524 323
ANDHRA PRADESH

BANKERS: AUDITORS:
1. STANDARD CHARTERED BANK M/S. BRAHMAYYA & CO.,
2. STATE BANK OF INDIA, CHENNAI CHARTERED ACCOUNTANTS,
3. STATE BANK OF HYDERABAD, CHENNAI D.NO.33-25-33B,
4. IDBI BANK LIMITED, CHENNAI GOVINDARAJULUNAIDU STREET
5. AXIS BANK LIMITED, CHENNAI SURYARAOPET,
6. SOCIETE GENERALE, MUMBAI VIJAYAWADA – 520 002
7. CTBC BANK CO. LTD., SRIPERUMBUDUR
8. SOUTH INDIAN BANK, CHENNAI
 DIRECTORS’ REPORT

To,

The Shareholders

3F Industries Limited.

Your Directors take pleasure in presenting the 55thAnnual Report and Audited Accounts for the year
ended March 31st 2015.

Performance High lights of 2014-2015

The Company’s Net sales and other income have gone up to Rs.1542.64 Crores as compared to Rs.
1143.32 Crores in the previous year. During the financial year 2014-2015, the company has stabilized
the operations of refinery and oleo chemical plants at Krishnapatnam and consequently there is an
increase in turnover and the profitability of the company during the year. The uncertainties in the
commodity and foreign exchange markets which existed during the year 2013-14 have continued to
exist during the FY 2014-15 also. These uncertainties have called for much higher level of efficiency
and preparedness for participants in the market.

Financial Highlights (Rs. In Lakhs)

PARTICULARS 2014-15 2013-2014

Net Sales & Other Income 154264.99 114332.89
Profit before Interest , Depreciation Tax and Exceptional Items 7181.36 7092.79
Interest and Other Borrowing cost. 2641.99 2687.68
Depreciation 1283.01 1643.59
Exceptional Item - -
Profit Before Tax 3256.36 2761.51
Short/ (Excess) Provision of Tax (135.07) -
Income Tax 730.00 600.00
Deferred Tax 910.03 1101.19
MAT Credit Entitlement available for set off (345.43) (520.04)
Profit after Tax 2031.19 1574.011
Balance Brought Forward from Last Year 12204.20 10010.98
Balance Available for appropriation 14235.40 11584.991
Appropriation
Transferred to General Reserve 230.00 230.00
Proposed Dividend+ Tax 490.39 451.90
Balance Carried Forward 13515.00 10903.09
st
The Audited Statement of accounts for the year ended March 31 ,2015 is attached along with the Report.
Operational Performance

The total income of the company rose to Rs.1542.64Crores from Rs.1143.32 Crores registering an
impressive growth of 34.92%. During the year under review, in extremely volatile market the company
had increased its market share in refined oils and Vanaspati. The net profit after tax was Rs. 20.31
Crores against Rs. 15.74Crores in the previous year.

The company’s strategy of focusing on emerging markets across India has been continued and the
results are encouraging.

Ten Years Financial Performance

(Rs. In Crores)

Details 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06

Sales 1535.40 1130.34 901.62 597.26 545.89 500.75 478.17 456.38 305.31 259.61
EBIDTA 71.81 70.91 54.56 39.78 43.81 47.95 46.90 42.94 28.27 15.26
PBT 32.56 27.61 24.08 18.91 29.00 28.16 25.12 24.29 13.23 5.64
PAT 20.31 15.74 16.21 12.43 18.27 18.50 16.03 15.28 8.17 3.58
Equity Share capital 10.45 9.65 10.62 10.62 10.62 10.62 10.62 10.62 10.62 10.62
Reserves and Surplus 166.58 129.61 129.43 113.22 100.79 82.52 64.31 48.74 36.74 30.91
Net Worth 177.03 139.27 140.05 123.83 111.40 93.13 74.92 59.36 47.36 41.53
Total Borrowings 214.93 192.72 154.42 160.20 92.59 93.00 139.27 139.13 102.14 89.00
Gross Fixed Assets 399.3 351.15 315.59 168.57 155.06 142.98 127.00 113.79 107.76 79.92
Export Turnover 267.41 197.63 241.49 175.08 178.79 199.92 186.00 178.00 82.27 80.28
Debt Equity Ratio 1.21 1.38 1.10 1.29 0.83 1.00 1.86 2.34 2.16 2.14

Key Indicators
% of EBIDTA 4.68% 6.27% 6.05% 6.66% 8.02% 9.60% 11.79% 9.17% 8.88% 5.81%
% of PBT 2.12% 2.44% 2.67% 3.17% 5.31% 5.62% 5.25% 5.32% 4.33% 2.17%
% of PAT 1.32% 1.39% 1.80% 2.08% 3.35% 3.69% 3.35% 3.35% 2.68% 1.38%
Book Value of Share 169.30 144.31 131.91 104.93 87.72 70.57 55.91 44.61 39.11 36.77
Earning per Share 19.42 16.03 15.27 11.71 17.21 17.42 15.1 14.39 7.69 3.37

New Project Establishment:

3F Fuji Foods

The Company has entered into Joint Venture with Fuji Oil Asia ( Group company of Fuji Oil, Japan) for
setting up of unit at Burgul Village, Mahaboobnagar Distirct, Telangana state, for manufacturing of
Non Dairy Whipping Crème, Cooking Crème etc. The implementation is likely to be completed by
end of October2015, and the unit is expected to commence commercial production by
December2015.
Chocolate Plant

The Company has setup a chocolate manufacturing unit at Kothuru Village , Hyderabad District ,
Telangana State, for production of Various types of Choclate Bars and Chips etc., with a capacity of 12
TPD. The Commercial Production started on April 2015

The increased capacity utilization at Refinery and Oleo chemicals plant at Krishnapatnam, SPSR
Nellore District in Andhra Pradesh, has resulted in positive impact as demonstrated in the growth of
sales volume and value during the current year.

Your company has been continuing to pursue the policy of strengthening its presence in its strategic
markets by judicious timely expansion and diversification of its business operations.

Dividend:

During the Year your company has declared an interim dividend of Rs. 261.41 lakhs (25%) to its share
holders and has recommended a final dividend of Rs. 241.41 lakhs(25%) aggregating to total
dividend of Rs.502.82 ( 50% ) to the shareholders of the Company.

Issue of shares:

During the current year under review, there has been a rights issue of 8,00,000 equity shares of Rs.
10/- each at a premium of Rs. 115/- per share in the ratio of 1 share for every 12 shares held in the
Company and out of which 799923 equity shares were subscribed & fully paid-up.

Extract of Annual Return:

Pursuant to Section 134(3) of the Companies Act 2013, the extract of the annual return as required in
the Form MGT-9 is enclosed as Annexure-II.

Directors& Key-Managerial Personnel:

Mr. Shiv BhagwanGoenka(DIN: 00350224), Mr. JiveshGoenka (DIN: 00533134), Mr. JitendraGoenka
(DIN: 0148556), Mr. SanjayGoenka (DIN: 01470021)are the Directors liable to retire by rotation in the
Fifty fifth Annual General Meeting and being eligible have offered themselves for re-appointment
Pursuant to Section 149(1)(b) of the Companies Act 2013, Mrs. SeemaGoenka (DIN No. 07101857)
has been appointed as a whole-time Director & KMP of the Company to fulfill the criteria of
appointment of woman director in the Board of the Company.
Vide the Board meeting held dt. 13.12.2014, Mr. RVSSS PrasadaRao, has been appointed as Chief
Financial Officer & KMP of the Company to fulfill the criteria of whole-time directors & KMP in the
Company.

The Company has the following KMP as required u/s. 203 of the Companies Act 2013:
- Whole-time Directors
- Chief Financial Officer
- Company Secretary

Board Meeting

During the period under review the Board met 11 times viz. on 07.05.2014, 13.06.2014, 18.07.2014,
26.08.2014, 28.08.2014, 25.09.2014, 20.10.2014, 13.12.2014, 08.01.2015, 19.02.2015 & 26.03.2015.

Audit Committee

The Audit Committee has been formed to oversee the overall performance of the Company,
Accordingly, the constituted Audit Committee consists of the following Directors.

1. Sri S.B.Goenka Whole time Director – Chairman of the Committee

2. Sri V.K.Saraogi Independent Director
3. Sri Shiv Kumar Agarwal Independent Director

Remuneration Committee

The Remuneration Committee has been formed to recommend the appointment & re-appointment
of whole-time Directors and Key Managerial Personnel of the Company. Accordingly, the constituted
Remuneration Committee consists of the following Directors.

1. Sri V.K.Saraogi Independent Director – Chairman of the Committee

2. Sri. S.B. Goenka Whole-time Director - Member
3. Sri Sanjay Goenka Director - Member

The said Committee laid down the Policy on Remuneration stating therein the positive attributes
required for the Managing Director, Independent Directors and Key Managerial Personnel. The said
policy also states the modus operandi for determining the remuneration to the above said personnel.
Corporate Social Responsibility Committee

Pursuant to Section 135 of the Companies Act 2013, a Corporate Social Responsibility has been
formed with a main objective of giving preference to local areas around where it operates for its
development by undertaking any of the activities as specified in Schedule VII of the Companies Act
2013.

The Committee was originally constituted on 19.02.2015 with the following composition:

1. Mr. S.B. Goenka – Chairman

2. Mr. SushilGoenka – Member

3. Mr. ShivkumarAgarwal – Member

As per Section 135(4) of the Companies Act 2013, a CSR policy has been framed by the Board based
on the recommendations of the CSR Committee and the same will be disclosed in the website of the
company.

The Committee was again re-constituted on 26.03.2015 with the following composition:

Mr. S.B. Goenka Chairman

Mr. O.P. Goenka Member
Mr. SushilGoenka Member
Mrs. SeemaGoenka Member
Mr.S.K. Agarwal (Independent Director) Member

An amount of Rs. 48,10,000 was calculated as the amount to be expended for carrying out CSR
activities and the same was spent on CSR activities through the RAMESHWAR BALKISHEN GOENKA
TRUST for the financial year 2014 -15 and the same is approved by the CSR Committee & the Board of
Directors vide meeting held dt.03.09.2015.

Stakeholders Relationship Committee

Pursuant to Section 135 of the Companies Act 2013, a Stakeholders Relationship Committee has been
formed to take into consideration, the grievances, if any, of the deposit holders as there are more
than 1000 deposit holders in the Company.
The Committee was originally constituted on 08.01.2015 with the following composition:

Sri. S.K. Agarwal Chairman

Sri. S.B. Goenka Member

Sri. S.R. Goenka Member

The Committee met on 19.02.2015 to take on record, the receipt of grievances if any, from the deposit
holders and the grievances/complaints received from the deposit holders were nil during the current
year under review.

Formal evaluation of the Board:

The Board of Directors of the Company vide their meeting held dt. 03.09.2015 evaluated the
performance of the independent directors on the Board of the Company and evaluated the same to
be satisfactory.

Independent Directors:

As required under Section 149 (7) all the Independent Directors on the Board of the Company have
issued the in annual declaration stating that they meet all the criteria of independence as required
under the Act.

A separate meeting of independent directors was held on 03.09.2015 to evaluate the performance of
the other whole-time directors on the Board of the Company and they evaluated the performance of
the whole-time directors of the company to be satisfactory and the Board shall continue to remain in
the same composition after taking into consideration the turnover achieved by the Company &
management of the company during the current financial year under review.

Policies:

During the current year under review, the Company had framed the following policies:

1. Corporate Social Responsibility Policy

2. Policy on Vigil mechanism
3. Policy on risk management
4. Policy on sexual harassment
5. Policy on Nomination & Remuneration payable to the whole-time directors of the Company.
Auditors
M/s. Brahmayya& Co. Chartered Accountants, Vijayawada, the statutory auditors of the Company
retire at the close of this Annual General Meeting and are eligible for re-appointment. The Company
has received confirmation from them that their appointment will be within the limits prescribed under
Section 141(3)(g) of the Companies Act 2013. The Audit Committee of the Board has recommended
their appointment for the FY 2015 – 16. The necessary resolution is being placed before the
shareholders for approval.

Cost Auditors
The Government has stipulated Cost Audit of the Company’s records in respect of edible oil seeds
and oils (including Vanaspati). M/s. Narasimha Murthy & Co., Cost auditors have carried out the cost
audit for the FY 2014 -15. The Audit Committee of the Board has recommended their re-
appointment for the FY 2015-16.

Secretarial Standards & Secretarial audit:

The Company makes its best effort to comply with the compliance under Secretarial Standards and
Mr. S. Ananthanarayan (CP No. 1828), Practicing Company Secretary was appointed as secretarial
auditor for conducting secretarial audit for the FY 2014-15 and the report as given by the secretarial
auditor is enclosed as Annexure – III.

Related Party Transactions

Prior omnibus approval of the audit committee and subsequent approval of the Board is obtained
for all the related party transactions.
The transactions entered into with the related parties are on arms length basis only.
A Nil return in the prescribed Form AOC-2 under Section 134(3)(h) of the Companies Act 2013 is
enclosed with this report as Annexure – IV.
The details of the transactions with Related Parties are provided in the accompanying financial
statements.

Particulars of Loans, Investments& Guarantees

Loans, Investments & Guarantees provided by the Company is well within the limits as stipulated u/s.
186 of the Companies Act 2013, the details of which are mentioned in Note No. 11(a) & Note No. 37
of the enclosed standalone financials of the Company for the FY 2014 -15.
Risk Management Policy:
The main objective of this policy is to ensure sustainable business growth with stability and to
promote a pro-active approach in reporting, evaluating and resolving/mitigating the risks which are
material in nature and are associated with the business. In order to achieve the key objective, the
policy establishes a structured and disciplined approach to Risk Management, in order to guide
decisions on material risk related issues and shall extend to whole of the Company’s operations.

Vigil Mechanism/ Whistle Blower Policy:

Pursuant to Section 177(9) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings
of Board and its Powers) Rules, 2014, the Board of Directors had approved the Policy on Vigil
Mechanism/ Whistle Blower and the same was hosted on the website of the Company. This Policy
inter-alia provides a direct access to the Chairman of the Audit Committee. Your Company hereby
affirms that no Director/ employee has been denied access to the Chairman of the Audit Committee
and that no complaints were received during the year.

Internal Control Systems & Adequacy:

The Company operates in an environment where internal controls are continuously evaluated by
Management and by the Internal auditors. The scope and coverage for Audits are drawn up based
on detailed discussions including feedback on concerns from previous year. Findings from internal
audits are reviewed regularly by the Management and by the Audit Committee of Directors and
corrective actions and controls put in place wherever necessary.

The reviews by Internal Auditors are scheduled and cover the various manufacturing and office
locations. The scope of their work includes review of controls on accounting, statutory and other
compliances and operational areas in addition to reviews relating to efficiency and economy in
operations.
Subsidiary Companies:
Asia Pacific Commodities Ltd., (Wholly Owned Subsidiary)

Asia Pacific Commodities Limited (APCL) has been merged with 3F Industries Ltd. vide High Court of
Hyderabad’s order dt. 12.08.2014, w.e.f.01.04.2014 as appointed date.

3F Oil Palm Agrotech Private Limited (wholly owned subsidiary)

During the period ended 31st March 2015, the company has achieved a turnover & other income of
Rs. 120.07Crores (Previous Year – Rs. 108.08Cr) with a profit before tax of Rs. 7.53 Crores (Previous
Year – Rs. 8.71Cr)

Viaton Energy Private Limited

During the period ended 31st March 2015, the company has achieved a turnover & Other income of
of Rs. 35.46Crores(Previous Year – Rs. 6.35Crores) with a Loss of Rs.1.55 Crores(Previous Year – Loss
of Rs. 2.38 Crores)

Chakranemi Infrastructure Pvt. Ltd., (wholly owned subsidiary)

The company has not yet started its commercial activities and is still in the process of implementing
the project of a Mega Food Park. Its activities are showing a Loss of Rs.0.86Lakhs (Previous Year –
Loss of Rs. 5.32 Lakhs)

3F Global (Singapore) pte Ltd., (formerly known as Parker International Pte. Ltd.,)(wholly owned subsidiary)

During the year ended 31st March 2015, the company has achieved a turnover of USD $ 56977146
(Previous year-USD 47032893) with a profit before tax of USD$ 1608872(Previous Year USD
1039549)

3F Ghana Limited (Wholly owned Subsidiary)

During the year ended 31st March 2015, the company has achieved a turnover of GHc46775030.07
(Previous Year – GHc32736049.90) with a profit before tax of GHc2305997.97 (Previous Year –
GHc4361106.31)

3F Ghana Trading Limited (Wholly owned Subsidiary)

During the year ended 31st March 2015, the company earned an income of GHc715008.13 (Previous
Year GHc54020) and incurred a profit of GHc51086.03.(Previous year loss GHc 22917.41)
Ceylone Specialty Fats Pvt Limited (subsidiary company)

This company is under liquidation. During the year ended 31st March 2015, the company does not
have operations and incurred a loss of SLR 35905717.74 (Previous Year Loss– SLR 32,76,068).

Conversion of Energy, Technology Absorption , Foreign Exchange Earnings & Out Go

Information in accordance with the provisions of Sec 134 of the Companies Act, 2013,
regarding the conservation of energy, technology absorption and foreign exchange
earnings and outgo is given in the Annexure - I forming part of this report.

Particulars of Employees

As per the provisions of sec 134 of the Companies Act 2013 read with Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, there are four
employees throughout the year who are in receipt of remuneration aggregating to
Rs.60,00,000 or more and there is no employee employed for a part of the year and in
receipt of remuneration aggregating Rs.5,00,000/- or more per month and is enclosed in
Annexure - V.

Fixed Deposits
Deposits accepted by the Company for the purpose of its business amounted to Rs. 3267.20
lacs as at 31st March,2015. Deposits of Rs.106.91 lacs due for repayment on or before 31st
March, 2015 were not claimed by 124 depositors. As on the date the total amount has since
been repaid or renewed as per instructions from the depositors.

Industrial Relations
Industrial relations continue to be harmonious and cordial .Your Directors wish to place on
record their deep sense of appreciation for the co operation extended and the valuable
contribution made by the employees and workers at all levels.

Policy On Prevention Of Sexual Harassment Of Employees

The Sexual Harassment of Women at Workplace(Prevention, Prohibition and redressal) Act,
2013 was enacted by the Parliament for protection of women against sexual harassment at
workplace. In accordance with the provisions of the Act, the Company has formulated a
policy on prevention of sexual harassment of women employees at workplace and is in the
process of forming an Internal Complaints Committee to consider and redress complaints
on sexual harassment, if any.

The Committee did not receive any complaint under the legislation during the year under
review.

Safety, Health and Environment

Your Company Continues to accord high priority for ensuring safety standards in operations
at every level. Many employees have undergone safety training and your company has
updated the safety procedure by conducting periodical audits.

Responsibility statement of the Board of Directors

The Directors’ Responsibility Statement setting out the compliance with the accounting
and financial reporting requirements specified Section 134 of the Companies Act, 2013, in
respect of the financial statements is annexed to this Report is enclosed as Annexure - VI.

Acknowledgements
Your directors wish to place on record their appreciation of the cooperation extended their
bankers namely, State bank of India, State Bank of Hyderabad, IDBI Bank Ltd., Axis Bank Ltd.,
Standard Chartered Bank Ltd., Societe General., The China Trust Commercial Bank, South
Indian Bank and the state and central government departments during the period under
review. Your Directors wish to also place on record their deep sense of appreciation for the
patronage received from the company‘s esteemed customers and the support from the
suppliers and dealers.

For & on behalf of the board

Place: Chennai S.B.GOENKA

Date: 03rd September 2015. Chairman
 ANNEXURE TO DIRECTORS REPORT

ANNEXURE I
Annexures to information under Sec 134 of the Companies Act, 2013 and forming part of
Director’s Report.
A. Conservation of Energy
During the previous year, your company took several measures to effect savings in the
consumption of power, fuel, Oil, water and other energy. Additional proposals have also
been considered for energy conservation and improving efficiency
2014-15 2013-14
Power & Fuel Consumption Unit
Total Total
1. Electricity:
a) Purchased - Units KWh 16084555 11821101
- Amount Rs. Lakhs 1129.87 830.84
- Rate /Unit Rs. 7.02 7.03
b) Own Generation through
i) DG Sets - Units KWh 350952 284462
- Units/Litre of HSD or Kerosene KWh 3.29 3.13
- Cost per Unit Rs. 18.82 18.25
ii) Power Plant - Units KWh 38273100 38111700
- Units/Kg. of Fuels KWh 0.92 0.92
- Cost per Unit Rs. 2.59 2.75
2. Fuels:
Agri Waste such as
Paddy Husk MT 104557 81973
Amount Rs. Lakhs 3153.19 2575.26
Cost/MT Rs. 3016 3142
Steam Coal MT 17908 9570
Amount Rs. Lakhs 605.07 306.82
Cost/MT Rs. 3379 3206
Saw Dust, Charcoal etc. MT 35899 46970
Amount Rs. Lakhs 649.79 961.51
Cost/MT Rs. 1810 2047
3. HSD Oil KL 106.603 91.007
Amount Rs. Lakhs 66.06 51.93
Cost per KL Rs. 61965 57060
B.Technology Absorption – Research & Development
Your Company believes in continuous improvement of technology, process development
and quality control measures .The R &D division engages itself in constant development of
value added products cost reduction and improvement process controls. During the year
under review the solvent fractionation process has been further improved for getting higher
yields and better quality.

C. Foreign Exchange Earnings & Out Go

Foreign Exchange earned during the year amounted to Rs.271.63 crores and Out go was Rs.
811.09 crores.
 ANNEXURE-II

FORM NO. MGT 9

EXTRACT OF ANNUAL RETURN

As on financial year ended on 31.03.2015

Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management &
Administration) Rules, 2014.

I. REGISTRATION & OTHER DETAILS:

1. CIN U24120AP1960PLC000888

2. Registration Date 10/05/1960

3. Name of the Company 3F INDUSTRIES LIMITED

4. Category/Sub-category of the COMPANY LIMITED BY SHARES

Company

5. Address of the Registered office & Tanuku Road, Tadepalligudem-534101 W.G.Dist., Andhra Pradesh
contact details

6. Whether listed company Unlisted

7. Name, Address & contact details Not applicable

of the Registrar & Transfer Agent,

if any.

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (All the business activities contributing 10 % or more of
the total turnover of the company shall be stated)

S. No. Name and Description of main NIC Code of the % to total turnover of the company

products / services Product/service

1 Manufacturing - Food, C1 60%
beverages and tobacco
products

2 Manufacturing - Chemical and C1 40%

chemical products,
pharmaceuticals, medicinal

chemical and botanical

products
 III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES -

S. No. Name & Address of the CIN / GLN Holding / % of shares Applicable Section
Company Subsidiary held
/ Associate

1. 3F OILPALM AGROTECH U15400TG2010PTC069556 Subsidiary 100 2(87)

PRIVATE LIMITED

2. CHAKRANEMI U45400TN2007PTC063767 Subsidiary 100 2(87)

INFRASTRUCTURE

PRIVATE LIMITED

3. VIATON ENERGY PRIVATE U40109TG2009PTC062483 Subsidiary 51 2(87)

LIMITED

4. 3F FUJI FOODS PRIVATE U15411TG2014PTC092617 Joint 45 2(87)

LIMITED Venture

5. SIMHAPURI AGRO U01122TG1993PTC090035 Subsidiary 0 2(87)

PRODUCTS PRIVATE

LIMITED

6. KOTTU OIL PRIVATE U15400TG2011PTC077400 Subsidiary 0 2(87)

LIMITED

7. VIATON U45209TG2008PTC062252 Subsidiary 0 2(87)

INFRASTRUCTURES

PRIVATE LIMITED

8. 3F GLOBAL SINGAPORE Foreign Company Subsidiary 100 2(87)

PTE LIMITED

9. 3F GHANA LIMITED Foreign Company Subsidiary 100 2(87)

10. 3F GHANA TRADING Foreign Company Subsidiary 100 2(87)

LIMITED

11. 3F GHANA Foreign Company Subsidiary 0 2(87)

COMMODITIES LIMITED

12. 3F BENIN SARL Foreign Company Subsidiary 0 2(87)

13. 3F BURKINA FASO Foreign Company Subsidiary 0 2(87)

14. 3F SENEGAL SARL Foreign Company Subsidiary 0 2(87)

15. 3F COTE D IVOIRE Foreign Company Subsidiary 0 2(87)

16. 3F MALI Foreign Company Subsidiary 0 2(87)

17. 3F NIGERIA IMPEX Foreign Company Subsidiary 0 2(87)

LIMITED

18. 3F VIETNAM COMPANY Foreign Company Subsidiary 0 2(87)

LIMITED
IV.SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total
Equity)
i) Category-wise Share Holding

Category of No. of Shares held at the beginning of No. of Shares held at the end of the year[As on %
Shareholders the year[As on 31-March-2014] 31-March-2015] Change
during
Demat Physical Total % of Demat Physical Total % of Total
the year
Total Shares

Shares

A. Promoter s

(1) Indian

a) Individual/ 9039067 9039067 93.60% 9838990 9838990

HUF 94.09 0.49

b) Central Govt 0 0 0 0 0 0 0 0

c) State Govt(s) 0 0 0 0 0 0 0 0

d) Bodies Corp. 0 0 0 0 0 0 0 0

e) Banks / FI 0 0 0 0 0 0 0 0

f) Any other 0 0 0 0 0 0 0 0

Total 9039067 9039067 93.60% 9838990 9838990

shareholding of

Promoter (A) 94.09 0.49

B. Public

Shareholding

1. Institutions 0 0 0 0 0 0 0 0 0

a) Mutual Funds 0 0 0 0 0 0 0 0 0
b) Banks / FI 0 0 0 0 0 0 0 0 0

c) Central Govt 0 0 0 0 0 0 0 0 0

d) State Govt(s) 0 0 0 0 0 0 0 0 0

e) Venture 0 0 0 0 0 0 0 0 0
Capital Funds

f) Insurance 0 0 0 0 0 0 0 0 0

Companies

g) FIIs 0 0 0 0 0 0 0 0 0

h) Foreign 0 0 0 0 0 0 0 0 0
Venture Capital

Funds

i) Others 0 0 0 0 0 0 0 0 0

(specify)

Sub-total (B)(1):- 0 0 0 0 0 0 0 0 0

2. Non-

Institutions

a) Bodies Corp. 0 0 0 0 0 0 0 0 0

i) Indian

ii) Overseas 616725 616725 6.39% 616725 616725 5.90% 0.49%

b) Individuals

i) Individual

shareholders
holding nominal
share capital

upto Rs. 1 lakh 933 933 0.01% 933 933 0.01% 0%

ii) Individual 0 0 0 0 0 0 0 0 0
shareholders

holding nominal
share capital in
excess of Rs 1

lakh

c) Others 0 0 0 0 0 0 0 0 0
(specify)

Non Resident 0 0 0 0 0 0 0 0 0

Indians

Overseas 0 0 0 0 0 0 0 0 0
Corporate

Bodies

Foreign 0 0 0 0 0 0 0 0 0
Nationals

Clearing 0 0 0 0 0 0 0 0 0
Members

Trusts 0 0 0 0 0 0 0 0 0

Foreign Bodies - 0 0 0 0 0 0 0 0 0
DR

Sub-total (B)(2):- 617658 617658 6.40% 617658 617658 5.91% -0.49%

Total Public

Shareholding

(B)=(B)(1)+ (B)(2) 0 617658 617658 6.40% 617658 617658 5.91% -0.49%

C. Shares held 0 0 0 0 0 0 0 0 0
by Custodian for

GDRs & ADRs

Grand Total 1045664 1045664

(A+B+C) 0 9656725 9656725 100% 8 8 100% 100%

 SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total
Equity)
ii) Category-wise Share Holding

Category of No. of Shares held at the beginning of No. of Shares held at the end of the year[As on %
Shareholders the year[As on 31-March-2014] 31-March-2015] Change
during
Demat Physical Total % of Demat Physical Total % of Total
the year
Total Shares

Shares

A. Promoter s

(1) Indian

a) Individual/ 9039067 9039067 93.60% 9838990 9838990

HUF 94.09 0.49

b) Central Govt 0 0 0 0 0 0 0 0

c) State Govt(s) 0 0 0 0 0 0 0 0

d) Bodies Corp. 0 0 0 0 0 0 0 0

e) Banks / FI 0 0 0 0 0 0 0 0

f) Any other 0 0 0 0 0 0 0 0

Total 9039067 9039067 93.60% 9838990 9838990

shareholding of

Promoter (A) 94.09 0.49

B. Public

Shareholding

1. Institutions 0 0 0 0 0 0 0 0 0

a) Mutual Funds 0 0 0 0 0 0 0 0 0
b) Banks / FI 0 0 0 0 0 0 0 0 0

c) Central Govt 0 0 0 0 0 0 0 0 0

d) State Govt(s) 0 0 0 0 0 0 0 0 0

e) Venture 0 0 0 0 0 0 0 0 0
Capital Funds

f) Insurance 0 0 0 0 0 0 0 0 0

Companies

g) FIIs 0 0 0 0 0 0 0 0 0

h) Foreign 0 0 0 0 0 0 0 0 0
Venture Capital

Funds

i) Others 0 0 0 0 0 0 0 0 0

(specify)

Sub-total (B)(1):- 0 0 0 0 0 0 0 0 0

2. Non-

Institutions

a) Bodies Corp. 0 0 0 0 0 0 0 0 0

i) Indian

ii) Overseas 616725 616725 6.39% 616725 616725 5.90% 0.49%

b) Individuals

i) Individual

shareholders
holding nominal
share capital

upto Rs. 1 lakh 933 933 0.01% 933 933 0.01% 0%

ii) Individual 0 0 0 0 0 0 0 0 0
shareholders

holding nominal
share capital in
excess of Rs 1

lakh

c) Others 0 0 0 0 0 0 0 0 0
(specify)

Non Resident 0 0 0 0 0 0 0 0 0

Indians

Overseas 0 0 0 0 0 0 0 0 0
Corporate

Bodies

Foreign 0 0 0 0 0 0 0 0 0
Nationals

Clearing 0 0 0 0 0 0 0 0 0
Members

Trusts 0 0 0 0 0 0 0 0 0

Foreign Bodies - 0 0 0 0 0 0 0 0 0
DR

Sub-total (B)(2):- 617658 617658 6.40% 617658 617658 5.91% -0.49%

Total Public

Shareholding

(B)=(B)(1)+ (B)(2) 0 617658 617658 6.40% 617658 617658 5.91% -0.49%

C. Shares held 0 0 0 0 0 0 0 0 0
by Custodian for

GDRs & ADRs

Grand Total

(A+B+C) 0 9656725 9656725 100% 10456648 10456648 100% 100%

 ii. ) Shareholding of Promoters
SN Shareholder’s Shareholding at the beginning of the year Shareholding at the end of the year % change in
Name shareholding
No. of % of total %of Shares No. of % of total Shares %of Shares during the year
Shares Shares of the Pledged / Shares of the company Pledged /
company encumbered to encumbered to
total shares total shares

1 Shiv Bhagwan 3.11%

Goenka (HUF) 300374 NA 3.03% NA -0.08%
316790
2 Om Prakash 1.87% NA NA
Goenka (HUF) 180150 1.85% -0.02%
193517
3 Sushil Goenka 2.74% NA NA
(HUF) 264333 2.69% -0.05%
281278
4 Sitaram Goenka 4.67% NA NA
(HUF) 451373 4.74% 0.07%
495644
5 Bharat Kumar 3.97% NA NA
Goenka (HUF) 383133 3.90% -0.07%
407455
6 Sudhir Goenka 0.37% NA NA
(Indl) 36000 0.40% 0.03%
41600
7 Sudha Goenka 353900 3.66% NA 3.55% NA -0.11%
371490
8 Jitendra Goenka 186667 1.93% NA 2.05% NA 0.12%
214277
9 Sanjay Goenka 2.31% NA NA
(Indl) 223317 2.43% 0.12%
254442
10 Bimla Devi 3.43% NA NA
Goenka 331367 3.40% -0.03%
355398
11 Jivesh Goenka 249822 2.59% NA 2.60% NA 0.01%
272327
12 Tapesh Goenka 216040 2.24% NA 2.07% NA -0.17%
216040
13 Seema Goenka 267667 2.77% NA 2.69% NA -0.08%
281585
14 Om Prakash 7.97% NA NA
Goenka (Indl) 769890 8% 0.03%
836964
15 Bharat Kumar 4.33% NA NA
Goenka (Indl) 418033 4.75% 0.42%
497155
16 Sushil Goenka ( 11.30% NA NA
Indl) 1090840 11.50% 0.20%
1204280
17 Sitaram Goenka 9.68% NA NA
(Indl) 934538 9.71% 0.03%
1015133
18 Shiv Bhagwan 6.75% NA NA
Goenka (Indl) 652200 6.88% 0.13%
719184
19 Sudhir Goenka 0.72% NA NA
(HUF) 69833 0.72% 0.00%
75619
20 Sangeetha 0.49% NA NA
Goenka 47333 0.48% -0.01%
49794
21 Sanjay Goenka 2.67% NA NA
(HUF) 257650 2.59% -0.08%
271047
22 Ashish Goenka 2.73% NA
(Minor) 263700 NA 2.74% 0.01%
286925
23 Pranav Goenka 98800 1.02% NA 1.09% NA 0.07%
113577
24 Ambika Goenka 168093 1.74% NA 1.87% NA 0.13%
195233
25 Manasi Goenka 0.47% NA NA
(minor) 45000 0.45% -0.02%
47340
26 Tapesh Goenka 1.54% NA NA
(HUF) 149067 1.43% -0.11%
149067
27 Jitendra Goenka 1.13% NA NA
(HUF) 108666 1.13% 0.00%
118266
28 Kavitha Goenka 98094 1.02% NA 1.04% NA 0.02
108324
29 Ashish Goenka 0.30% NA NA
(HUF) 29094 0.28% -0.02%
29094
30 Pranav Goenka 0.72% NA NA
(HUF) 70000 0.67% -0.05%
70000
31 Adithi Goenka 14093 0.15% NA 0.14% NA -0.01%
14825
32 Jivesh Goenka 1.20% NA NA
(HUF) 116000 1.20% 0.00%
125632
33 Apurva Goenka 0.72% NA NA
(Minor) 70000 0.75% 0.03%
78840
34 Kushrga Goenka 70000 0.72% NA 0.71% NA -0.01%
74040
35 Amrita Goenka 54000 0.56% NA 0.54% NA -0.02%
56808
C) Change in Promoters’ Shareholding (please specify, if there is no change)

SN Particulars Shareholding at the Cumulative Shareholding

beginning of the year during the year

No. of % of total No. of % of total

shares shares of the shares shares of

company the
company

At the beginning of the year 9039067 93.60% 9039067 93.60%

Date wise Increase / Decrease in 799923 0.49% 9838990 94.09%

Promoters Shareholding during the

year specifying the reasons for increase

/ decrease (e.g. allotment /transfer /

bonus/ sweat equity etc.):

Rights issue – Date of allotment:

08.01.2015

At the end of the year 9838990 94.09% 9838990 94.09%

D) Shareholding Pattern of top ten Shareholders:

(Other than Directors, Promoters and Holders of GDRs and ADRs):

SN For Each of the Top 10 Shareholding at the Cumulative

Shareholders beginning Shareholding during

of the year the

year

No. of % of total No. of % of total

shares shares of shares shares of
the the
company company

At the beginning of the year

1 Best Investments PTE Ltd., 616725 6.39% 616725 6.39%

2 Jaya Sree Prabhakar 133 0.00% 133 0.00%

3 P R Prabhakhar 133 0.00% 133 0.00%

4 R V S S S Prasada Rao 133 0.00% 133 0.00%

5 P P Rustgi 134 0.01% 134 0.01%

6 Nirmal Rustgi 133 0.00% 133 0.00%

7 Sanjay JhunJhun wala 134 0.00% 134 0.00%

8 Madhu JhunJhunwala 133 0.00% 133 0.00%

Datewise increase 0 0 0 0

SN For Each of the Top 10 Shareholding at the Cumulative

Shareholders end Shareholding during
of the year the

year

No. of % of total No. of % of total

shares shares of shares shares of
the the

company company

At the end of the year

1 Best Investments PTE Ltd., 616725 5.90% 616725 5.90%

2 Jaya Sree Prabhakar 133 0.00% 133 0.00%

3 P R Prabhakhar 133 0.00% 133 0.00%

4 R V S S S Prasada Rao 133 0.00% 133 0.00%

5 P P Rustgi 134 0.01% 134 0.01%

6 Nirmal Rustgi 133 0.00% 133 0.00%

7 Sanjay JhunJhun wala 134 0.0% 134 0.0%

8 Madhu JhunJhunwala 133 0.0% 133 0.0%

E) Shareholding of Directors and Key Managerial Personnel:

SN Shareholding of each Directors and Shareholding at the Cumulative

each Key Managerial Personnel beginning Shareholding during

of the year the

year

No. of % of total No. of % of total

shares shares of shares shares of
the the
company company

At the beginning of the year

1. Om Prakash Goenka (Indl) 769890 7.97% 769890 7.97%

2 Bharat Kumar Goenka (Indl) 418033 4.33% 418033 4.33%

3 Sushil Goenka ( Indl) 1090840 11.30% 1090840 11.30%

4 Sitaram Goenka (Indl) 934538 9.68% 934538 9.68%

5 Shiv Bhagwan Goenka (Indl) 652200 6.75% 652200 6.75%

6 Jitendra Goenka 186667 1.93% 186667 1.93%

7 Jivesh Goenka 249822 2.59% 249822 2.59%

8 Seema Goenka 267667 2.77% 267667 2.77%

9 Sanjay Goenka (Indl) 223317 2.31% 223317 2.31%

10. Vinod Kumar Saraogi 0 0 0 0

11. Shiva Kumar Agarwal 0 0 0 0

12. Shiv Kumar Jatia 0 0 0 0

SN Shareholding of each Directors and Shareholding at the Cumulative

each Key Managerial Personnel beginning Shareholding during
of the year the
year

No. of % of total No. of % of total

shares shares of shares shares of

the the
company company

1. RVSSS Prasada Rao 133 0.00 133 0.00

2. S. Rangarajan 0 0 0 0
SN Shareholding of each Directors and Shareholding at the Cumulative

each Key Managerial Personnel end Shareholding during

of the year the
year

No. of % of total No. of % of total

shares shares of shares shares of

the the
company company

At the end of the year

1. Om Prakash Goenka (Indl) 836964 8.00% 836964 8.00%

2 Bharat Kumar Goenka (Indl) 497155 4.75% 497155 4.75%

3 Sushil Goenka ( Indl) 1204280 11.5% 1204280 11.5%

4 Sitaram Goenka (Indl) 1015133 9.71% 1015133 9.71%

5 Shiv Bhagwan Goenka (Indl) 719184 6.88% 719184 6.88%

6 Jitendra Goenka 214277 2% 214277 2%

7 Jivesh Goenka 272327 3% 272327 3%

8 Seema Goenka 281585 3% 281585 3%

9 Sanjay Goenka (Indl) 254442 2% 254442 2%

10. Vinod Kumar Saraogi 0 0 0 0

11. Shiva Kumar Agarwal 0 0 0 0

12. Shiv Kumar Jatia 0 0 0 0

SN Shareholding of each Directors and Shareholding at end

each Key Managerial Personnel of the year

No. of % of total
shares shares of

the
company

1. RVSSS Prasada Rao 133 0.00

2. S. Rangarajan 0 0
V) INDEBTEDNESS -Indebtedness of the Company including interest outstanding/accrued but not due for

payment.

Secured Loans
Unsecured Total
excluding Deposits
Loans Indebtedness
deposits

Indebtedness at the beginning of the

financial year

i) Principal Amount 1628268908 3229801992 233026000 5091096900

ii) Interest due but not paid 0 5200295 30767031 35967326

iii) Interest accrued but not due 10193574 12529465 2062412 24785451

Total (i+ii+iii) 1638462482 3247531752 265855443 5151849677

Change in Indebtedness during the

financial year

* Addition 9601702 753172720 25957952.17 788732374.17

* Reduction 500485718 17729760 53269612 571485090

Net Change (490884016) 735442960 (27311659.83) 217247284.17

Indebtedness at the end of the financial

year

i) Principal Amount 1138091911 3960749721 213162000 5312003632

ii) Interest due but not paid 0 12268207 24024724.17 36292931.17

iii) Interest accrued but not due 9486555 9956784 1357059 20800398.00

Total (i+ii+iii) 1147578466 3982974712 238543783.17 5369096961.17

 VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL-
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

Salary PERFOR
Name of House Medical Club
for the Commission MANCE PF Total
the Rent Expenses Subscription
Year BONUS
Director
Rs Rs. Rs. Rs. Rs. Rs. Rs.

S.B.GOENKA 3000000 0 0 14755 4000000 6000000 360000 13374755

BHARAT
GOENKA 360000 0 15000 0 4000000 0 43200 4418200

S.R.GOENKA 3600000 1440000 0 0 4000000 0 432000 9472000

SUSHIL
GOENKA 4440000 0 1409 0 4000000 0 532800 8974209

O P GOENKA 3600000 0 3800 0 4000000 0 432000 8035800

JITENDRA
GOENKA 1800000 0 0 20000 0 0 216000 2036000

JIVESH
GOENKA 1800000 0 0 0 0 0 216000 2016000

SANJAY
GOENKA 0 0 0 0 0 0 0 0

SEEMA
GOENKA 108571 0 4429 0 0 0 13029 126029

18708571 1440000 24638 34755 20000000 6000000 2245029 48452993

B. Remuneration to other directors

SN. Particulars of Remuneration Name of Directors Total Amount

----- ---- ---- ---

1 Independent Directors Nil Nil Nil Nil Nil

Fee for attending board Nil Nil Nil Nil Nil

committee meetings

Commission Nil Nil Nil Nil Nil

Others, please specify Nil Nil Nil Nil Nil

Total (1) Nil Nil Nil Nil Nil

 2 Other Non-Executive Directors Nil Nil Nil Nil Nil

Fee for attending board Nil Nil Nil Nil Nil

committee meetings

Commission Nil Nil Nil Nil Nil

Others, please specify Nil Nil Nil Nil Nil

Total (2) Nil Nil Nil Nil Nil

Total (B)=(1+2) Nil Nil Nil Nil Nil

Total Managerial Nil Nil Nil Nil Nil

Remuneration

Overall Ceiling as per the Act Nil Nil Nil Nil Nil

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN

MD/MANAGER/WTD

SN Particulars of Remuneration Key Managerial Personnel

CEO CS CFO Total

1 Gross salary

(a) Salary as per provisions contained in 1706900 2752167 4459067

section 17(1) of the Income-tax Act, 1961

(b) Value of perquisites u/s 17(2)

Income-tax Act, 1961

(c) Profits in lieu of salary under section

17(3) Income-tax Act, 1961 -

2 Stock Option

3 Sweat Equity

4 Commission

- as % of profit

others, specify…

5 Others, please specify

Total 1706900 2752167 4459067

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: NIL

Type Section of the Brief Details of Authority Appeal made,

Companies Description Penalty / [RD / NCLT/ if any (give
Act Punishment/ COURT] Details)
Compounding
fees imposed
A. COMPANY

Penalty

Punishment NIL

Compounding

B. DIRECTORS

Penalty

Punishment

Compounding

C. OTHER OFFICERS IN DEFAULT

Penalty

Punishment NIL

Compounding
 ANNEXURE III
Secretarial Audit Report
(For the year ended 31st March, 2015)

Form No. MR-3

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

The Members,
3F Industries Limited,
CIN: U24120AP1960PLC000888
Tanuku Road,
Tadepalligudem- 534 101,
West Godavari District,
Andhra Pradesh

I have conducted the secretarial audit of the compliance of applicable statutory provisions
and the adherence to good corporate practices by 3F Industries Limited (hereinafter called
the Company). Secretarial Audit was conducted in a manner that provided me a reasonable
basis for evaluating the corporate conduct/statutory compliances and expressing my opinion
thereon. Based on my verification of the books, papers, minute books, forms and returns filed
and other records maintained by the Company and also the information provided by the
Company, its officers, agents and authorized representatives during the conduct of
secretarial audit, I hereby report that in my opinion, the Company has, during the period of
audit ended on 31st March, 2015 complied with the statutory provisions listed hereunder
and also that the Company has proper Board-processes and compliance-mechanism in place
to the extent, in the manner and subject to the reporting made hereinafter. Members are
requested to read this report along with my letter of even date annexed to this report as
Annexure- 1.

1. I have examined the books, papers, minute books, forms and returns filed and other
records maintained by 3F Industries Limited (“The Company”) for the year ended 31st
March, 2015 on according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the Rules made thereunder;
(ii) Foreign Exchange Management Act, 1999 and the Rules and Regulations made
thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and
External Commercial Borrowings and

(iii) The Memorandum and Articles of Association.

2. I have been informed that for the financial year ended March 31, 2015:
i) the Company was not required to maintain books, papers, minute books, forms and returns
filed or other records according to the provisions of the Regulations and Guidelines
prescribed under SEBI Act:

ii) there are no laws specifically applicable to the company, the books, papers, minute books,
forms and returns of which were required to be examined by me for the purpose of this
report.

3. I have not examined compliance with the Secretarial Standards 1 and 2 issued by The
Institute of Company Secretaries of India as they become applicable from July 1, 2015.

4. During the period under review, to the best of my knowledge and belief and according to
the information and explanations given to me, the Company has complied with the
provisions of the Act, Rules, Regulations, Guidelines, Standards, etc mentioned in paragraph
1 above to the extent applicable.

a) maintenance of various statutory registers and documents and making necessary entries
therein;
b) closure of the Register of Members.
c) forms, returns, documents and resolutions required to be filed with the Registrar of
Companies and the Central Government;
d) service of documents by the Company on its Members, Auditors and the Registrar of
Companies;
e) notice of Board meetings and Committee meetings of Directors;
f) the meetings of Directors and Committees of Directors including passing of resolutions by
circulation;
g) the Annual General Meeting held on 19th September 2014 and an Extraordinary General
Meeting held on August 27, 2014 ;
h) minutes of proceedings of General Meetings and of the Board and its Committee
meetings;
i) approvals of the Members, the Board of Directors, the Committees of Directors and the
government
authorities, wherever required;
j) constitution of the Board of Directors / Committee(s) of Directors, appointment, retirement
and reappointment of Directors including the Managing Director and Whole-time Directors;
k) payment of remuneration to Directors including the Managing Director and Whole-time
Directors,
l) appointment and remuneration of Auditors and Cost Auditors;
m) transfers and transmissions of the Company’s shares and issue and dispatch of duplicate
certificates of shares;
n) declaration and payment of dividends;
o) borrowings and registration, modification and satisfaction of charges wherever applicable;
p) investment of the Company’s funds including investments and loans to others;
q) form of balance sheet as prescribed under Part I, form of statement of profit and loss as
prescribed under Part II and General Instructions for preparation of the same as prescribed in
Schedule VI to the Act;
r) Directors’ report;
s) contracts, common seal, registered office and publication of name of the Company; and
t) Generally, all other applicable provisions of the Act and the Rules made under the Act.

3. I further report that:

_ The Board of Directors of the Company is duly constituted with proper balance of Executive
Directors, Non-Executive Directors and Independent Directors. The changes in the
composition of the Board of Directors that took place during the period under review were
carried out in compliance with the provisions of the Act.
_ Adequate notice is given to all directors to schedule the Board Meetings, agenda and
detailed notes on agenda were sent at least seven days in advance, and a system exists for
seeking and obtaining further information and clarifications on the agenda items before the
meeting and for meaningful participation at the meeting.
_ A system exists for directors to seek and obtain further information and clarifications on the
agenda items before the meetings and for their meaningful participation in the meetings.
Majority decision is carried through while the dissenting members’ views are captured and
recorded as part of the minutes.
_ There are adequate systems and processes in the company commensurate with the size
and operations of the Company to monitor and ensure compliance with applicable laws,
rules, regulations and guidelines.
- The Company has obtained all necessary approvals under the various provisions of the Act;
and
_ There was no prosecution initiated and no fines or penalties were imposed during the year
under review under the Act, Rules, Regulations and Guidelines framed under these Acts
against / on the Company, its Directors and Officers.
_ The Directors have complied with the disclosure requirements in respect of their eligibility
of
appointment, their being independent and compliance with the Code of Business Conduct &
Ethics for Directors and Management Personnel;

4. The Company has complied with the provisions of the FEMA, 1999 and the Rules and
Regulations made under that Act to the extent applicable.

5. During the period under audit:

(a) The merger of Asia Pacific Commodities Limited (CIN U52520AP1999PLC031721) with the
Company with effect from April 1, 2014 as per the scheme of amalgamation sanctioned by
the Hon’ble High Court of Judicature at Hyderabad on August 12, 2014 in Company
Petition No. 85 of 2014 connected with Company Application No. 311 of 2014 under Sections
391 and 394 of the Companies Act, 1956 became operational from September 29, 2014 with
the filing of the order of the Court in Form INC-28.
(b) The Company on January 8, 2015 allotted 7,999,923 Equity Shares of Rs. 10 each at a
premium of Rs. 125 per share to its shareholders on a rights basis
(c) The members of the Company have passed a special resolution under Section 180(1)(c) of
the Act empowering the Board of Directors to borrow monies provided that the amounts
borrowed and outstanding at any point of time (apart from temporary loans from the
company’s bankers in the ordinary course of business) do not exceed the aggregate of its
paid up capital and free reserves by Rs. 500 crores
(d) The members of the Company have passed a special resolution under Sections 197 and
198 of the Act read with Schedule V and Rule 7 of the Companies (Appointment and
remuneration of managerial Personnel) Rules, 2014 approving the remuneration payable to
the whole-time Directors of the Company for the year 2013-4.
6. I further report that based on the information received and records maintained there are
adequate systems and processes in the Company commensurate with the size and
operations of the Company to monitor and ensure compliance with applicable laws, rules,
regulations and guidelines.

Place : Chennai S. ANANTHANARAYAN

Date : 1st July, 2015 FCS 2713, CP 1828
 Annexure to the Secretarial Audit Report of even date

To

The Members,
3F Industries Limited,
CIN: U24120AP1960PLC000888
Tanuku Road,
Tadepalligudem- 534 101,
West Godavari District,
Andhra Pradesh

My Secretarial Audit Report of even date is to be read along with this letter

1. Maintenance of secretarial records is the responsibility of the management of the

company. My responsibility is to make a report based on the secretarial records
produced to me for my audit.
2. I have followed the audit practices and processes as were appropriate to obtain
reasonable assurance about the correctness of the contents of the secretarial records.
The verification was done on test basis to ensure that correct facts are reflected in the
secretarial records. I believe that the processes and practices I followed provide a
reasonable basis of my report.
3. I have not verified the correctness and appropriateness of financial records and books
of account of the Company.
4. I have obtained the management’s representation about the compliance of laws,
rules and regulations and happening of events, wherever required.
5. Compliance with the provisions of the Corporate and other applicable laws, rules and
regulations is the responsibility of the management. My examination was limited to
the verification of procedure on test basis. Actions carried out by the Company based
on independent legal/professional opinion obtained have not been considered as
non-compliance wherever there was scope for multiple interpretations, especially
since this is the first full year in which the Companies Act, 2013 has become
operational.
 6. The Secretarial Audit report is neither an assurance as to the future viability of the
Company nor of the efficacy or effectiveness with which the management has
conducted the affairs of the Company.

Place : Chennai S. ANANTHANARAYAN

Date : 1st July, 2015 FCS 2713, CP 1828
 ANNEXURE-IV

3F INDUSTRIES LIMITED

FORM No. AOC-2

Pursuant to Clause (h) of sub-section (3)of Section 134 of the Act and Rule 8(2) of the

Companies (Accounts) Rules, 2014

Form for disclosure of particulars of contracts / arrangements entered into by the

Company with related parties referred to in sub-section (1) of Section 188 of the
Companies Act, 2013 including certain arms length transactions under third proviso

thereto

A. DETAILS OF CONTRACTS OR ARRANGEMENTS OR TRANSACTIONS NOT AT ARM’S

LENGTH BASIS:

a) Name(s) of the related party and nature of

relationship
b)

c) Nature of contracts / arrangements / transactions

d)
Duration of the contracts / arrangements / NIL
e) transactions

Salient terms of the contracts or arrangements or

f) transactions including the value, if any

g) Justification for entering into such contracts or

arrangements or transactions
h)
Date(s) of approval by the Board
 Amount paid as advances, if any:

Date on which the special resolution was passed in

general meeting as
required under first proviso to Section 188

B. DETAILS OF MATERIAL CONTRACTS OR ARRANGEMENTS OR TRANSACTIONS AT

ARM’S LENGTH BASIS:

a) Name(s) of the related party and nature of

relationship
b)
Nature of contracts/arrangements/transactions
c)
NIL
d) Duration of the contracts /
arrangements/transactions
e)
Salient terms of the contracts or arrangements or
f) transactions including the value, if any:

(e) Date(s) of approval by the Board, if any:

Amount paid as advances, if any:

 ANNEXURE - V
Particulars of Employees u/s.134 of Companies Act 2013:
Information under 134 of the Companies Act 2013 read with Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 and forming part of Directors’ Report.

1.Mr. Shiv Bhagwan Goenka

Name Shiv Bhagwan Goenka

Designation Chairman &Whole time
Director
Remuneration Received Rs. 13374755
Nature of Employment Contractual
Qualification and Experience Graduate, 52Years
Date of Commencement of Employment 01.04.2011
Age 77 years
Details of last employment held before joining the -
Company
Particulars of equity shares held by the employee in 6.88%
the Company
Whether relative of any director / manager and details Mr. SitaramGoenka
of such director / manager Mr. SushilGoenka
Mr. Bharat Kumar Goenka
Mr. Om PrakashGoenka
Mr. JiveshGoenka
Mr. JitendraGoenka
Mr. Sanjay Goenka
Mrs. SeemaGoenka

2. Mr. Sitaram Goenka

Name SitaramGoenka
Designation Whole time Director
Remuneration Received Rs.94,72,000
Nature of Employment Contractual
Qualification and Experience Graduate., 43Years
Date of Commencement of Employment 01.04.2011
Age 68 years
 Details of last employment held before joining the -
Company
Particulars of equity shares held by the employee in 9.71%
the Company
Whether relative of any director / manager and details Mr. SitaramGoenka
of such director / manager Mr. SushilGoenka
Mr. Bharat Kumar Goenka
Mr. Om PrakashGoenka
Mr. JiveshGoenka
Mr. JitendraGoenka
Mr. Sanjay Goenka
Mrs. SeemaGoenka

3. Mr. SushilGoenka

Name SushilGoenka
Designation Whole time Director
Remuneration Received Rs.89,74,209
Nature of Employment Contractual
Qualification and Experience B.Tech., 36Years
Date of Commencement of Employment 01.04.2011
Age 62 years
Details of last employment held before joining the -
Company
Particulars of equity shares held by the employee in 11.52%
the Company
Whether relative of any director / manager and Mr. SitaramGoenka
details of such director / manager Mr. SushilGoenka
Mr. Bharat Kumar Goenka
Mr. Om PrakashGoenka
Mr. JiveshGoenka
Mr. JitendraGoenka
Mr. Sanjay Goenka
Mrs. SeemaGoenka
4. Mr. Om Prakash Goenka

Name Om PrakashGoenka
Designation Whole time Director
Remuneration Received Rs.80,35,800
Nature of Employment Contractual
Qualification and Experience B.Tech., 49 Years
Date of Commencement of Employment 01.04.2011
Age 74 years
Details of last employment held before joining the -
Company
Particulars of equity shares held by the employee in 8.00%
the Company
Whether relative of any director / manager and details Mr. SitaramGoenka
of such director / manager Mr. SushilGoenka
Mr. Bharat Kumar Goenka
Mr. Om PrakashGoenka
Mr. JiveshGoenka
Mr. JitendraGoenka
Mr. Sanjay Goenka
Mrs. SeemaGoenka
 ANNEXURE - VI
Directors’ Responsibility Statements as per Section 134 of the Companies Act, 2013.
(a) In the preparation of the annual accounts for the Financial year ended March 31, 2015,
the applicable accounting standards had been followed along with proper explanation
relating to material departures;

(b) The directors had selected such accounting policies and applied them consistently and
made judgments and estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the company at the end of the financial year and of the profit
and loss of the company for that period;

(c) The directors had taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of this Act for safeguarding the assets
of the company and for preventing and detecting fraud and other irregularities;

(d) The directors had prepared the annual accounts on a going concern basis; and

(e) the directors had devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating effectively.

For and On Behalf of the Board

(Sd/-)
S.B.Goenka
Chairman

Place: Chennai
Date: 03rd September 2015
3F INDUSTRIES LIMITED
BALANCE SHEET As At 31st MARCH2015 (Rs.)

PARTICULARS Notes As At 31st As At 31st

March 2015 March 2014
I.EQUITY AND LIABILITIES
(1) Shareholders' Funds
a) Share Capital 2 104566480 96567250
b) Reserves and Surplus 3 1665825587 1296175768
1770392067 1392743018
(2)Non-Current Liabilities
a) Long-term Borrowings 4 777064972 1035688517
b)Deferred Tax Liability (Net) 5 493707886 379090986
c) Other Long-term liabilities 6 22258872 21653909
d) Long-term Provisions 7.1 202540674 227579601
1495572404 1664013013
(3)Current Liabilities
a)Short-term Borrowings 8 1372345078 891627999
b) Trade Payables 9.1 3362434444 3552939230
c) Other Current Liabilities 9.2 658613051 549819043
d) Short term Provisions 7.2 97899687 143794203
5491292259 5138180475
TOTAL 8757256733 8194936507
II. ASSESTS
(1) Non- current Assets
a) Fixed Assets 10
i) Tangible Assets 10.1 2822723957 2639933135
ii) Intangible Assets 10.2 1044979 2089960
iii) Capital Work in Progress 80876715 52960913
2904645651 2694984009
b) Non-current Investments 11 489164854 500051944
c) Long term Loans and Advances 12 627423505 328558164
d)Other Non Current Assets 13.2 13627808 -
2)Current Assets
a) Inventories 14 2974428220 2962823291
b) Trade Receivables 13.1 813078710 664436262
c) Cash and Cash Equivalents 15 179374139 253365074
d)Short term Loans and Advances 12 707815614 743299636
e) Other Current Assets 13.2 47698232 47418125
4722394915 4671342391
TOTAL 8757256733 8194936507
Summary of Significant Accounting Policies 1
The Accompanying Notes are an Integral Part of the Financial Statements.

For and on behalf of the Board As Per our Report even date
For BRAHMAYYA & Co.,
Chartered Accountants
(Firm Regn. No.
Sd/- Sd/- 000513S)
S.B.Goenka O.P.Goenka
Director Director Sd/-
T.V. Ramana
Partner
Sd/- Sd/- Membership No: 200523
S.Rangarajan R.V.S.S.S.Prasada Rao
VP- Finance & Company Secretary Chief Financial Officer

Chennai Vijayawada
Date : 03/09/2015 Date : 03/09/2015
3F INDUSTRIES LIMITED
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2015 (Rs.)
Current Reporting Previous Reporting
PARTICULARS Notes
Period 2014-15 Period 2013-14

Income
Revenue from operations (Gross) 16 15486982006 11413692915
Less: Excise duty 276023148 182423712
Revenue from operations (Net) 15210958858 11231269203
Other Income 17 215540808 202020438
Total Revenue 15426499666 11433289641

Expenses
Cost of raw materials consumed 18 11152541853 8309908742
Purchase of Traded goods 1343326176 1019425019
[Increase]/ Decrease in Inventories of Finished goods,
19
Work in Progress and Traded goods (12116434) (286921018)
Employee Benefits Expense 20 345373913 271285568
Depreciation and Amortization Expense 21 128301528 164359315
Finance Costs 22 264199399 268768650
Other Expenses 23 1879237047 1410311690
Total Expenses 15100863483 11157137966

Profit/(Loss) Before Tax 325636184 276151675

325636184 276151675

Add/ Less: Income Tax Excess/Short Provision (Earlier Years) 6943409 636366
Less : Tax Expenses
Current Tax 73000000 60000000
Deferred Tax 91003670 110119142
Add : (MAT Credit Entitlement C/fd) (34543512) (52004956)
Total Tax Expense 122516749 118750552

Profit for the year 203119435 157401123

Basic Earnings Per Share 19.42 16.03

Diluted Earnings Per Share 19.42 16.03

Summary of Significant Accounting Policies 1

The Accompanying Notes are an Integral Part of the Financial Statements.
For and on behalf of the Board As per our report of even date

For BRAHMAYYA & Co.,

Chartered Accountants
Sd/- Sd/- (Firm Regn. No. 000513S)
S.B.Goenka O.P.Goenka
Director Director
Sd/-
T.V. Ramana
Partner
Sd/- Sd/- Membership No: 200523
S.Rangarajan R.V.S.S.S.Prasada Rao
VP- Finance & Company Secretary Chief Financial Officer

Chennai Vijayawada
Date : 03/09/2015 Date : 03/09/2015
Notes Forming Part of Accounts
(Rs.)
Note -2
As At 31st As At 31st
SHARE CAPITAL
March 2015 March 2014
Authorised Shares :

1,80,00,000 (31st March 2014: 1,30,00,000 )'Equity shares of Rs.10 /- each 180000000 130000000

Total 180000000 130000000

Issued Shares :

1,04,56,725 (31st March2014: 9,656,725)'Equity shares of Rs.10 /- each 104567250 96567250

Total 104567250 96567250

Subscribed and fully paid-up shares :

1,04,56,648 (31st March 2014; 96,56,725)'Equity shares of Rs.10 /- each fully paid up 104566480 96567250

Total Subscribed and fully paid-up capital 104566480 96567250

a. Reconciliation of the shares outstanding at the a beginning and As At 31stMarch2015 As At 31st March 2014
at the end of the reporting Period
No. Rs. No. Rs.
Equity Shares
At the beginning of the period 9656725 96567250 10616725 106167250
Add: Fresh Issue during the year-Rights Issue
799923 7999230 - -

Less: Buy Back of Shares during the year - - 960000 9600000

Outstanding at the end of the period 10456648 104566480 9656725 96567250

As At 31st As At 31st
b. Shareholders holding more than 5% shares % of Holding % of Holding
March 2015 March 2014

a)Shri . Sushil Goenka 11.52% 1204280 11.30% 1090840

b)Shri. Sita Ram Goenka 9.71% 1015133 9.68% 934538
c)Shri Om Prakash Goenka 8.00% 836964 7.97% 769890
d)Shri .Shiv Bhagwan Goenka 6.88% 719184 6.75% 652200
e)Best Investments pte Ltd., 5.90% 616725 6.39% 616725

42.00% 4392286 42.09% 4064193

1. During the year 2013-14, the Company had bought back 9,60,000 shares @Rs.10/- each at a premium of Rs. 115/- each.

Right Issue:
2.The Company has issued Nos.8,00,000 equity shares of Rs.10/- each at a premium of Rs.115/-per share to the existing
members of the company in the proportion of 1 equity share for every 12 equity shares held in the company.

3. Authorised capital of the company has been increased during the year on account of addition of authorised capital of
amalgamated company " Asia Pacific Commodities Ltd.,)
 Note -3
As At 31st As At 31st
RESERVES AND SURPLUS
March2015 March 2014

Capital Reserves

Capital Redemption Reserve

Opening Balance 29600000
Add: Amount Transferred during the year - 29600000 29600000

Securities Premium
Opening Balance -
Add: Issued during the year -Right Issue 91991145 91991145 -

Debenture Redemption Reserve 10000000 10000000

General Reserve
Balance as per the last Financial Statements 166267550
ADD: General Reserve of APCL on account of Scheme of Amalgamation 5067000
Less: Amount withdrawn during the year ** (11599961) 159734589 143267550

Add : Amount transferred from

Surplus Balance in the Statement of Profit And Loss 23000000 23000000
Closing Balance 182734589 166267550

Surplus/(Deficit) In The Statement of Profit And Loss

Balance as per the last Financial Statements 1090308216 1001098597

ADD: Balance in surplus account of APCL on account of Scheme of Amalgamation 130112852
Profit for the year 203119435 157401123

Less : Appropriations

Proposed Final Equity Dividend 26141620 38626900

Interim Dividend 24141813 -
Tax on Distributed Profits 5321820 6564603
Transfer to General Reserve 23000000 23000000
Add: Excess provision of Tax on Distributed profits of earlier years credited back 6564603 -
Total Appropriations 72040650 68191503

Net Surplus In Statement Of Profit And Loss 1351499853 1090308217

Total Reserves And Surplus Taken To Balance Sheet 1665825587 1296175767

** Transitional Adjustment of Rs. 11599961 (Net of Deferred Tax of Rs.6139152) on application of Schedule II of the
Companies Act2013, being the Depreciation on those Assets whose useful life is Nil.
 Note -4
4.1. Non -current portion 4.2. Current maturities
LONG TERM BORROWINGS: As At 31st As At 31st As At 31st As At 31st
March2015 March 2014 March 2015 March 2014

Term Loans
Indian rupee loan from banks (secured )
: AXIS - Krishnapatnam Project 277975705 358750000 75000000 6250000
: APSFC-APCL Loan - 4200000

Foreign Currency loan from banks ( Secured ) - - - -

:Standard Chartered Bank-Krishnapatnam Project 101580000 304740000 203160000 203160000
:Standard Chartered Bank-Wind Mills - 27979132 27979132 37356000

Other Term Loans - - - -

: Vehicle Loans 1049598 3127601 2607738 2844317

380605303 694596733 312946870 249610317

Others:
Deferred sales tax loan (Unsecured)
Deferred Sales Tax - I
(Repayable with effect from Financial Year 2014 - 15) 43780859 57870674 14089815 2186400
Deferred Sales Tax - I (APCL) # (Refer Note No.32) 75527700
(Repayable with effect from Financial Year 2019 - 20)
Deferred Sales Tax - II

(Repayable with effect from Financial Year 2022 - 23) 134510110 134510110 - -

Deposits (unsecured)
Public 142641000 148711000 70521000 84315000

396459669 341091784 84610815 86501400

Total Amount 777064972 1035688517 397557685 336111717
The above amount includes
Secured borrowings 380605303 694596733 312946870 249610317
Unsecured borrowings 396459669 341091784 84610815 86501400
Amount disclosed under the head
"Other current liabilities"(Note 9.2 ) 397557685 336111717

Net Amount 777064972 1035688517 - -

Term Loans From Banks Comprises of :

Name of the Bank i) SCB ii) SCB iii) AXIS BANK

Project Krishna Patnam Wind Mill Krishna Patnam

a) Loan Availed 660270000 149424000 365000000

b) No. of Installments 13 16 72
c) Installments Commencing From 12-Sep-13 4-Jan-12 24-Feb-15
d) Rate of Interest per annum 10.25% 9.65% 12.00%
e) Installment Amount per Quarter/Month 50790000 9339000 6250000

A) Term Loans from Standard Chartered Bank ( i ) are secured by first and exclusive hypothecation charge over all the identified
movable fixed assets consisting of plant & Machinery situated at Krishnapatnam , Andhra Pradesh .

B) Term Loan from Standard Chartered Bank ( ii ) are secured by exclusive charges of asset purchased and further guaranteed
by some of the directors of the company

C) Term Loan from Axis Bank (iii ) is secured by exclusive first charge on all movable fixed assets created out of term loan and
Paripassu first charge on immovable fixed assets of the Krishnapatnam Project ie., Land and Building at Krishnapatnam , along
with Standard Chartered Bank . ( Loan i)

Vehicle Loans from Banks :-

Particulars Vento High line Skoda Superb Skoda (Octiva) Ford (Figo) BMW

Name of the Bank ICICI KOTAK KOTAK KOTAK BMW Financials

a) Loan Availed 8,98,000 21,96,000 17,81,000 492,000 1,550,000

b) No. of Installments 36 36 36 36 36
c) Installments Commencing From 15-Mar-13 18-Nov-13 18-Nov-13 22-Nov-13 16-Nov-13
d) Rate of Interest per annum 10.25% 9.85% 9.85% 9.85% 12.44%
e) EMI amount 28,835 70,141 56,910 15,714 51,811

Vehicle Loans are Secured by exclusive charge on assets purchased against and further guaranteed by two directors of the
company in their personal capacity

Note -5
DEFFERED TAX LIABILITY (Net) As At 31st As At 31st
March2015 March 2014

Deferred Tax Liability

Fixed assets: Difference between Tax depreciation and
depreciation/amortisation charged for the financial reporting 499044227 419316849

Others
Gross deferred tax liability 499044227 419316849

Deferred tax asset

Impact of expenditure charged to the statement of profit and
loss in the current year but allowed for tax purposes on
payment basis 5336341 40225863
Gross Deferred tax asset 5336341 40225863
Net Deferred Tax Liability 493707886 379090986
 Note -6
As At 31st March As At 31St March
OTHER LONG TERM LIABILITIES 2015 2014

Trade Payables - -
Total - -
Others

Trade Deposits 22258872 21653909

Total 22258872 21653909

Note -7
7.1 Long Term 7.2 Short Term
PROVISIONS As At 31st As At 31st As At 31st As At 31st
March2015 March 2014 March 2015 March 2014
Provision for employee benefits:

Provision for Gratuity 11540674 10579601 2007669 842795

Provision for leave benefits - - 6228578 4759866
11540674 10579601 8236247 5602661

Other Provisions:

Provision for Income tax 191000000 217000000 58200000 93000000

Proposed equity dividend - - 26141620 38626900

Provision for Dividend Tax - - 5321820 6564642
191000000 217000000 89663440 138191542
202540674 227579601 97899687 143794203

Note -8
As At 31st As At31st
SHORT TERM BORROWINGS
March 2015 March 2014

Cash credit from Banks (Secured) @ 17267451 37082084

Packing Credit From Banks ( Secured ) @ 437135354 623257411

Foreign Bills Payable Against Buyer's Credit (Secured)@ 770492769 -

Unsecured Loans
Loans from Related Parties {Refer Note No.34(16)} 44582504 23066504

Deposits
: from Public 102867000 208222000
1372345078 891627999
The above amount includes
Secured borrowings 1224895574 660339495
Unsecured borrowings 147449504 231288504
@

Cash Credits, Packing Credits , Buyers Credits are Secured by first charge on current assets present and future on parripassu
basis with other consortium banks, Second charge on fixed assets ( excluding assets specifically charged to banks / FI s) on
parripassu basis with other consortium banks and are further guaranteed by some of the directors in their personal capacity
 Note -9
As At 31st As At 31st
OTHER CURRENT LIABILITIES
March2015 March 2014

9.1 Trade payables 3362434444 3552939230

3362434444 3552939230
9.2 Other Liabilities:

Current maturities of long Term Borrowings (Refer Note No. 4.2 ) 397557685 336111717
Interest accrued and due on borrowings 20800398 18156877
Interest accrued but not due on borrowings 36292931 42595900
Advance from customers 49486028 33973257
Advance for Expenses 13256344 12479852
Accrued Salaries and Benefits 48329794 41155258
Staff Security Deposits 175000 135000
Statutory Dues 35758043 34736286
Unclaimed Dividend 1542675 -
Unclaimed Matured Deposits 10691000 3355000
Forward Premium Payable 15005608 -
Others 29717544 27119897
658613051 549819043
4021047495 4102758273
3F INDUSTRIES LIMITED

A).TANGIBLE ASSESSTS NOTE-10.1

GROSS BLOCK DEPRECIATION NET BLOCK
ACCUMUL
ADDITIO DEDUCT ATED AMOUN
UPTO AS AT AS AT
UPTO 31st ADDTION NS ON IONS UPTO 31st DEPRECIA ON T UPTO 31st
31st FOR 31st 31st
DESCRIPTION MARCH S FOR AMALGAM FOR MARCH TION DEDUC CHARGE MARCH
MARCH THE YEAR MARCH MARCH
2014 THE YEAR ATION OF THE 2015 FROM TIONS D TO 2015
2014 2015 2014
APCL YEAR MERGING( RESERVE
APCL)
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Land - - - - - 194572177 194572177
185480629 2290600 6800948 194572177 -
Factory Buildings 151862435 960339 18164553 170987327 55288300 11465531 9839381 - 5503 76598715 94388612 103273157

Non Factory Building 101259714 1017971 7053230 109330915 29776801 2749297 7506093 - 1350002 41382192 67948723 75786844

Roads 16445216 1367681 2983205 20796102 1570836 877309 6756583 - 3666727 12871455 7924647 16980276

Plant and Machinery 2938037448 158854188 281607114 7484542 3371014207 708377605 141327750 87578365 4038983 10862219 944106956 2426907251 2369939207

11982167 533935 1567047 14083149 7088043 1026241 1551332 - 149778 9815394 4267755 5404786
Furniture Fittings
17548599 2544917 486325 20579841 14126538 448082 2605277 - 424750 17604647 2975194 3460304
Computers and Data processing units
9879462 344909 - 10224371 2709511 - 2159148 - 19789 4888448 5335923 7169951
Electrical Installations and Equipment
13671371 824369 599092 15094832 8917448 312975 2067926 - 1216360 12514709 2580123 5040041
Office Equipment
61053630 1717552 17415 776351 62012246 39432447 17415 7192442 497598 43985 46188691 15823555 21621183
Motor Vehicles
4333165 - - 4333165 4333164 - - - - 4333164 1 1
Ships
Grand Total 3511553836 170456461 319278929 8260893 3993028332 871620691 158224600 127256547 4536581 17739113 1170304371 2822723962 2803247927

Previous year 3F 3155939911 379102087 - 23488166 3511553832 724634390 163314334 16328030 871620694 2639933138 2431305516

Previous year APCL 319058045 220884 - - 319278929 142094183 16130414 - 158224597 161054326 176963824

B) INTANGIBLE ASSETS
NOTE-10.2
G R O S S B L O C K D E P R E C I A T I O N NET BLOCK
ADDTIONS DEDUCTIO ON
DESCRIPTION UPTO 31st UPTO 31st UPTO 31st MARCH FOR THE UPTO 31st AS AT 31st AS AT 31st MARCH
FOR THE NS FOR DEDU
MARCH 2014 MARCH 2015 2014 YEAR MARCH 2015 MARCH 2015 2014
YEAR THE YEAR CI
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

GOOD WILL 5224903 5224903 3134943 1044981 4179924 1044979 2089960

 Note -11

As At 31st As At 31st
NON-CURRENT INVESTMENTS
March2015 March 2014

(a) Trade - Unquoted

Investments in Equity Instruments of
Subsidiary Companies :-
i) 6,93,607 (Nos.186369) Ordinary shares of Singapore $ 1/- each fully paid
Up in 3f Global ( Singapore ) Pte. Ltd ., Singapore (Bonus shares issued during the year 507238Nos) 4869220 4869220
ii) 30,00,000 Ordinary Shares of Rs 10 /- each in Asia Pacific Commodities Ltd., - 30000000
iii) 23,31,088 Ordinary Shares of Ghana Cedie 1 /- each in 3F Ghana Ltd., Ghana 93469384 93469384
iv) 1,57,49,240 Shares of Srilakan Rs 10 /- each in
Ceylone Speciality Fats Pvt Ltd., 68224591
Less: Provision for Diminution in value of Investment 68224591 - 34930990

v)7,30,000 Ordinay Shares of Ghana Cedie 1/- each in 3F Ghana Trading Limited 23951650 23951650
vi)1,00,10,000 Ordinary Shares of Rs. 10 /- each in 3F Oil Palm Agro Tech Pvt Ltd., 100100000 100100000
vii) 53,65,100 Shares of Rs 10/- in Chakranemi Infrastructure Private Limited 53651000 53651000
viii) 66,30,000 Shares of Rs. 10 /- each in Viaton Energy Private Ltd. 66300000 66300000

Joint Venture Companies:-

i) 1,44,000,00 Shares of Rs. 10- each in 3F Fuji Foods Pvt., Ltd.,(Purchased during the year) 144000000 -

ii) Share Application Money 3F Fuji Foods - 90000000

Total (a) 486341254 497272244
(b) (i) Non - Trade Quoted
Investments in Mutual Funds :-
i) 48,900 Units in HSBC Progressive Themes Fund-Dividend 500000 500000
ii)29,266 Units in L&T India Special Situations Fund-Growth 300000 300000
(Fidelity India Special Situations Fund - Growth)
iii)8,366 Units Sundaram Infrastructure Advantage Fund Regular Growth
(Sundaram Energy Opportunities Fund -Growth) 200000 200000
iv)10,000 Units of Rs.10/-each in Birla Sun life Special Situations Fund - Growth 100000 100000
v)715 Units in Reliance Vision Fund Growth Plan Growth Option 200000 200000
(Reliance Natural Resources Fund-Growth)
vi)9,780 Units in Kotak Infra Structure & Economic Reform Fund Standard Growth-Reg.
(AIG Infrastructure and Economic Reform Fund Reg-Growth) 100000 100000
vii)48,778 Units of Rs.10/-each in L&T Indo Asia Fund-Growth 500000 500000
viii)48,900 Units of Rs.10/-each in L&T Indo Large Cap Fund-Growth 500000 500000
ix)5092.537 Units of Rs.33.50 /- each in UTI Infrastructure Fund - Growth 170600 170600

Total (b)(i) 2570600 2570600

Investments in Government or trust securities :-
i) National Saving Certificates 253000 209100
253000 209100
Less: Provision for diminution in value of investments
Total (b)(ii) 253000 209100

Total (b) 2823600 2779700

TOTAL (a+b) 489164854 500051944

Aggregate amount of : quoted investments 2570600 2570600
: market value 4574653 3349319
Aggregate amount of unquoted investments 486594254 497481344
Aggregate provision for diminution in value of investments 68224591 33293601

As at 31/03/2014 the company held 30,00,000Nos. Equity shares of Rs. 10/- each at a cost of Rs. 3,00,000,000/- in its subsidiary
company

" Asia Pacific Commodities Ltd., the said subsidiary has been merged with the company during the year. (Refer Point No. 36 )
 Note -12
Non-current Current
LOANS AND ADVANCES As At 31st As At 31st As At 31st As At 31st
March2015 March 2014 March2015 March 2014

Capital Advances

Secured, considered good

Unsecured, considered good 36693945 48770187 - -
(A) 36693945 48770187 - -

Security Deposit
Secured, considered good
Unsecured, considered good 55922649 56647209 - -
Doubtful
55922649 56647209

Provision for doubtful security deposit - - - -

(B) 55922649 56647209 - -

Loans and advances to related

parties
Unsecured, considered good (Ref. Note No:33/16/17 ) 141094365 - 162915289 250215246

Loans and advances

Inter corporate Deposits
Unsecured, considered good - - 25000000 57000000

(C) 141094365 - 187915289 307215246

Advances recoverable in cash or Kind

Secured, considered good
Unsecured, considered good - - 54434711 45342393
Doubtful
- - 54434711 45342393

Provision for doubtful advances - - - -

(D) - - 54434711 45342393

Other Loans and Advances

Advance payment of Direct Taxes 178497401 210843905 58206747 90350000
Income Tax deducted at source 15215146 12296863 5592369 1295523
MAT Credit Entitlement - - 130400160 95856648
Claims Receivables - - 3721052 3486843
Prepaid expenses - - 15672408 7337601
Balances with statutory/ 'Government authorities 200000000 - 229225927 192415383
Income Tax Refund Receivable - - 5773491 -
Income Tax Paid Under protest - - 8255193 -
Dividend Tax Refund Receivable - - 8606415 -
Advance payment of Fringe Benefit Tax - - 11852 -

(E) 393712547 223140768 465465614 390741998

Total [A+B+C+D+E] 627423505 328558164 707815614 743299637
 Note -13.1
Non-current Current
TRADE RECEIVABLES
As At 31st As At 31st As At 31st As At 31st
March 2015 March 2014 March2015 March 2014

Secured, considered good - - - -

Unsecured, considered good

- - 704741732 569889531
Less than 6 Months from the due date for Payment:
108336978 94546730
More than 6 Months from the due date for Payment:
- -
Doubtful
- - 813078710 664436262

Provision for doubtful receivables - -

- - 813078710 664436262

Total - - 813078710 664436262

Note -13.2
Non-current Current
OTHER ASSETS As At 31st As At 31st As At 31st As At 31st
March2015 March 2014 March2015 March 2014

Non-current bank balances - - - -

(A) - - - -

Unamortized expenditure - - - -

(B) - - - -
Others

Interest accrued on fixed deposits - - 5044540 2255787

- - 15636850 15183707
Interest accrued on Others
13627808 16505555 29978631
Interest accrued on Loans to Subsidiary Companies
10511287
Deferred Forward Premium
[C] 13627808 - 47698232 47418125
Total [A+B+C] 13627808 - 47698232 47418125
 Note -14
As At 31st As At 31st
INVENTORIES (VALUED AT LOWER OF COST AND NET REALIZABLE VALUE)
March2015 March 2014

Raw materials (includes in transit of Rs. 28,46,92,307)

(PY : Rs.55,11,44,243)
: At Cost 1691934791 1720864948

Work-in-progress
: At Cost 493336303 502548444

Finished goods
: At Cost 515405560 423807482
: At Market Value 136823531 33575538

Stock in Trade 6264565 161425996

Stores and spares at Cost 130663471 120600883

Total 2974428220 2962823291

Note -15
Non-current Current
CASH AND CASH EQUIVALENTS As At 31st As At 31st As At 31st As At 31st
March2015 March 2014 March2015 March 2014
Cash and Cash Equivalents :

Balances with Banks:

On current accounts 71209732 167398758

Other Bank Balances :

Cash Credit ( Debit Balances ) 6763264 5939793
Cash on hand 2607047 1975225
Others (VKGUY Licenses) 2575354 -
- - 83155397 175313777
Other Bank Balances :
Unclaimed Dividend 1555007 -
Margin Money Deposits on FD's 1650000 3400000
Margin money deposit 93013735 74651296
- - 96218742 78051296
Total - - 179374139 253365073
3F INDUSTRIES LIMITED
Notes Forming Part of Accounts (Rs.)
Note -16

REVENUE FROM OPERATIONS This Year Previous Year

Sale of products:

Finished goods 13843463620 10392758839

Traded goods 1510575351 910694324
15354038971 11303453163
Other operating revenue

Incentives (Export) 14679778 14737195

Incentives (Sales Tax) 113958810 93135198
Insurance Claims Received 4304447 2367359
132943035 110239752

Revenue from operations (gross) 15486982006 11413692915

Less: Excise Duty 276023148 182423712
Revenue from operations (net) 15210958858 11231269203

DETAILS OF PRODUCT SOLD This Year Previous Year

Finished goods sold

Refined Oils 8535861603 6082399522

Vanaspati 2524242640 2551999077
Extractions 165371183 138465090
Fatty Acids 2384554433 1485631959
Power 143600648 121519254
Others 89833114 12743937
13843463620 10392758839

Traded Goods Sold

Raw Oils 246635424 -

Refined Oils 147466527 158857637
Fatty Acids - 22111870
Maize 764117424 571051794
Vivo Royal Crème 34153230 22848689
Others 2679638 3537773
Rice 306477725 123440140
Capital Goods 9045383 8846421
1510575351 910694324
 Note -17

OTHER INCOME This Year Previous Year

Interest Income on
Bank deposits 8594449 8274184
Others 49782560 43192898

Dividend income on
Current Investments 3566302 3522073
Non - Current Investments (from Subsidiaries 3F Ghana and 3F Oil Palm) 63630550 27462000

Others
Rent received 600000 15000
Commission income 13508 -
Processing Charges Received 7529208 -
Other non-operating income # 81824231 119554282
215540808 202020438

#OTHER NON-OPERATING INCOME INCLUES This Year Previous Year

Sale/Purchase Commitments & Settlement s (Net) 2972551 3714847

Reimbursement of power cost of earlier years - 53285820
Forex Fluctuation Gain & Loss (Net) 16725995 24929102
Unclaimed Balance Credited Back 264144 6285265
Insurance Claims Received 7000151 1139528
Storage and Handling 4104000 6790319
Income From Agriculture (Net) 268260 254480
Other Service Charges Received 28178523 -
Misc. Scrap Receipts 21699621 2074442
Net gain on Sale of Assets 12120 21080480
Prior Period Income 598866 -
Total 81824231 119554282

Note -18

COST OF RAW MATERIALS CONSUMED This Year Previous Year

Inventory at the beginning of the year 1720864948 962067636

Add: Opening Inventory of APCL on account of Scheme of Amalgamation 5878973 -

Add: Purchases 11490176550 9232311671

13216920472 10194379307
Less: Transfer to Traded Goods 372443828 163605619
Less: Inventory at the end of the year 1691934791 1720864948
Cost of Raw Material Consumed 11152541852 8309908742

DETAILS OF RAW MATERIALS CONSUMED This Year Previous Year

Oil Seeds & Cakes 1368784959 1129307045

Raw Oils 8468350829 7180498149
Refined Oils 705138166 -
Fatty Acids & Acids Oils 610267900 -
Others - 103548

Total 11152541853 8309908742

 DETAILS OF INVENTORY This Year Previous Year

Raw Materials
Oil Seeds & Cakes 1099410405 1040528981
Raw Oils 516851740 680335967
Refined Oils 19424585 -
Fatty Acids & Acid Oils 56248061 -

Total 1691934791 1720864948

DETAILS OF PURCHASE OF TRADED GOODS This Year Previous Year

Raw Oils 233725926 -

Refined Oils 139390004 147931011
Maize 622094139 713601068
Rice & Rice Broken 296087956 115332322
Fruit Powder 7328136 -
Packing Materials & Others 8383878 -
Vivo Royal Crème 28043631 18483831
Fatty Acids - 15674608
Capital Goods 8272506 8402179
1343326176 1019425019

Note -19
(Increase)/
(INCREASE)/DECREASE IN INVENTORIES This Year Previous Year
Decrease
Inventories at the End of the year 2014-2015

Work in Progress 493336303 502548444 11929291

ADD: APCL Opening Inventory on scheme of Amalgamation - 2717150
Finished Goods 652229090 457383020 (182692404)
ADD: APCL Opening Inventory on scheme of Amalgamation - 12153666
Traded Goods 6264565 161425996 158646679
ADD: APCL Opening Inventory on scheme of Amalgamation 3485248
1151829958 1139713524 (12116434)
Inventories at the Beginning of the year 2013-2014

Work in Progress* 505265594 434466306 (70799288)

Finished Goods* 469536686 378845672 (90691014)
Traded Goods* 164911244 21124464 (143786780)

1139713524 834436442 (305277082)

* Opening Inventory of APCL added to the opening Inventory of 3FIL on the scheme of amalgamation

PARTICULARS This Year Previous Year

[Increase]/ Decrease in Inventories of Finished goods,

Work in Progress and Traded goods (12116434) (305277082)
 DETAILS OF INVENTORY This Year Previous Year
Work-in-progress
Raw Oils 130810266 177040404
Refined Oils 234213290 256556879
Fatty Acids 126860407 63345637
Others 1452340 5605524
Total 493336303 502548444

Finished goods
Refined Oils 387813006 159872045
Fatty Acids 60509185 52930124
Vanaspati 161707661 198195306
Others 42199239 46385545
Total 652229090 457383020

Traded Goods 6264565 161425996

6264565 161425996
TOTAL 1151829958 1121357460

Note -20
EMPLOYEE BENEFIT EXPENSE This Year Previous Year

Salaries, Wages and Bonus 195067473 156481939

(Includes Managerial Remuneration of Rs.48452993)(PY: Rs.40565735)
16768165 13295951
Contribution to Provident and other fund

Gratuity expense 3967044 7068898

Staff welfare expenses 129571231 94438780

Total 345373913 271285568

Note -21
DEPRECIATION AND AMORTISATION EXPENSE This Year Previous Year

Depreciation on Tangible assets 127256547 163314334

Amortization of Intangible Assets 1044981 1044981

Total 128301528 164359315

Note -22
FINANCE COST This Year Previous Year

Interest 217636961 244366242

Other Borrowing Costs 46562437 24402408

Total 264199399 268768650

 Note -23

OTHER EXPENSES This Year Previous Year

Consumption of stores and spares 418947010 319660740

Power and fuel 583629026 491261397
Rent 36896307 30571883
Repairs and maintenance
Plant and Machinery 54703861 55514876
Buildings 5835642 2825700
Others 3794479 6935715
Insurance 15166011 9145133
Rates and Taxes 23056627 9860126
Increase/ (Decrease) of Excise Duty on Inventory 964782 4774420
Periodicals & Subscriptions 969790 1488745
Processing Charges 11279631 10382606
Maintenance Expenses 17494849 14837610
Vehicles Maintenance 30769981 26956273
Advertising and sales promotion 75501207 30146064
Freight & Handling Expenses 364855043 261209329
Discount Allowed 16864479 2211362
Sales Commission 28063358 19533373
Travelling and conveyance 45570806 34848216
Communication costs 6390794 5726574
Security Charges 10906192 7953482
Donations 7446818 2536981
CSR Expenditure 4810000 -
Legal and professional fees 36398517 18873721
Payment to auditors (Refer details below) 1465617 951196
Printing & Stationary 2707700 2290158
Recruitment Expenses 1688278 388685
Bad debts/advances written off 5861981 4168995
Provision for Diminution in Long term Investments 34930990 8732748
Loss on sale of Assets 645558 437576
Bank Charges 19347958 19549009
Assets Written off - 4048
Miscellaneous expenses 12273758 6534950

Total 1879237047 1410311690

PAYMENT TO AUDITORS This Year Previous Year

As Auditor 786520 674160

For Taxation Matters 11236 36518
For Other Certifications 412359 81089
For Reimbursement of expenses 52565 47069

As Cost Auditors 202937 112360

Fee for Certification - -
For Reimbursement of expenses - -

Total 1465617 951196

3F INDUSTRIES LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2015 (Rs.)
PARTICULARS 31st March 2015 31st March 2014

Cash flow from operating activities

325636184 276151675
Profit before tax from continuing operations

Adjustments for
Depreciation/amortization on continuing operation 128301528 164359315
[profit] on sale of fixed assets (12120) (21080480)
Loss on sale of fixed assets 645558 437576
Assets Written Off - 4048
Interest expense 217636961 244366242
Interest income (58377009) (51467082)
Dividend income (67196852) (30984073)
Provision For Investments 34930990 8732748
Net (Gain )/ Loss on Foreign currency translations & transactions (16725995) (24929102)
564839244 565590867
Operating profit before working capital changes

Movements in working capital:

Increase/[decrease] in trade payables (190504786) 1025818737
Increase/[decrease] in long-term provisions 961073 6966429
Increase/[decrease] in short-term provisions 2633586 (680998)
Increase/[decrease] in other current liabilities 112453454 109506897
Increase/[decrease] in other long-term liabilities 604963 1315395
Decrease/[increase] in trade receivables (148642448) (381261517)
Decrease/[increase] in inventories (11604929) (1080300239)
Decrease/[increase] in long-term loans and advances (128293563) 649080
Decrease/[increase] in short-term loans and advances 42181129 15385231
Decrease/[increase] in other current assets (10511287) -
Cash generated from/[used in] operations 234116437 262989822
74358617 53627542
Direct taxes paid [net of refunds]
159757820 209362280
Net cash flow from/[used in] operating activities (A)

Cash flows from investing activities

Purchase of fixed assets, including intangible assets, CWIP and
capital advances (352654004) (230805027)
Proceeds from sale of fixed assets 3090873 27298811
Purchase of non-current investments (54043900) (90030000)
Purchase of current investments - (52747134)
Interest received 54980381 52010034
Dividends received from current investments 67196852 30984073
Buy Back of shares (Including Premium) (120000000)
Net cash flow from/[used in] investing activities (B) (281429797) (383289243)

Cash flows from financing activities

Proceeds from long term borrowings (258623545) (145443460)
Proceeds from short term borrowings 480717079 542331613
Interest paid (221296409) (250547656)
Dividends Paid (69832453) -
Foreign Exchange Fluctuations 16725995 24929102
Proceeds from Increase in Share Capital (including Premium) 99990375 -
47681042 171269599
Net cash flow from/[used in] in financing activities [C]
(73990935) (2657364)
Net increase/[decrease] in cash and cash equivalents (A+B+C)
Cash and cash equivalents at the beginning of the year 253365074 256022438
179374139 253365074
Cash and cash equivalents at the end of the year
Components of cash and cash equivalents
Cash on hand 2607047 1975226
Cash Credit & Packing Credit 6763264 5939794
With Banks 71209732 170798758
Margin Money deposit accounts 94663735 74651296
VKGUY Licenses on Hand 2575354 -
unpaid dividend accounts* 1555007 -
Total cash and cash equivalents (Note 15) 179374139 253365074

(Previous year figures are regrouped wherever necessary)

For and on behalf of the Board As per our report of even date

For BRAHMAYYA & Co.,

Chartered Accountants
(Firm Regn. No.
Sd/- 000513S)
S.B.Goenka
Director
Sd/-
T.V. Ramana
Partner
Sd/- Membership No: 200523
O.P.Goenka
Director

Sd/-
S.Rangarajan
VP- Finance & Company Secretary

Sd/-
R.V.S.S.S.Prasada Rao
Chief Financial Officer

Chennai
Vijayawada
Date : 03/09/2015 Date : 03/09/2015
3F INDUSTRIES LIMITED 55th Annual Report
Notes Forming Part of Accounts
As at As at
24. CONTINGENT LIABILITIES AND COMMITMENTS March 31st,2015 March 31st,2014
(i) Contingent Liabilities Rs. Rs.

a. Claims against the Company, not acknowledged as debts:

(1) Disputed demands for Income Tax 1548521 665401
(2) Disputed demands for Customs 59647984 -
(Rs.93,99,711/-(Rs.9,12,197/-)Paid under protest against the above)
(3) Disputed demands for Central Excise 33051106 -
(4) Disputed demands for Service Tax 79361
(Rs.39289/- Paid under protest against the above)
(5) Disputed demands for Sales Tax
( Rs.22,64,91,736/-(Rs.1,16,27,829/-) paid under protest against the above) 450869808 336472856
(6) Others-EPDCL 11571615 11117247
b. Amount of Guarantee given to (Outstanding as on 31/03/2015)
-- M/s. Asia Pacific Commodities Ltd ( a wholly owned subsidiary) - 9800000
-- M/s. Viaton Energy Private Ltd., ( Subsidiary)* 517357005 504500000
-- M/s. 3F Global Singapore Pte. Ltd., ( a wholly owned subsidiary) (in USD62,00,000) 392460000 311532000
-- M/s. 3F Ghana Ltd., ( a wholly owned subsidiary) (In USD50,00,000) 316500000 299550000
-- M/s 3F Oil Palm Agro tech Pvt.Limited,(a wholly owned Subsidary ) - 201400000
c. Pending Litigations with the Government Authorities:-
The Company manufacturing the Dutiable products like Stearic Acid, Fatty Acid, Fatty Acid Pitch, etc. and manufacturing
exempted products like Vanaspati, Bakery Shortening Interestified fat, Margarine, Refined oils etc. The company used the
common inputs like Crude Oils, Hydrogen gas and Nickel catalyst and claimed the CENVAT Credit on Pro-rata basis.. The
Revenue proceeded against the appellants on the ground that the appellants were required (under Rule 6(3)(b) of the Cenvat
Credit Rules, 2002/2004) to maintain separate accounts for both the dutiable and exempted products and take the Cenvat
credit only on that quantity of input which is intended for use in the manufacture of dutiable products. The CESTAT decided the
case in favor of the company and held that the availment of pro-rata credit is perfectly in order and therefore Rule 6(3)(b)
cannot be applied. The Central Excise department filed an Tax revision case before the Hon’ble High court of Andhrapradesh.
The Tax litigation amount was Rs.41,53,39,870/- including interest and penalty. Judgment is awaited.

d) Pending litigations with Others-

Commodities Trading with National Spot Exchange Limited :-

The Company has entered in to contracts of Trading of Commodities with National Spot Exchange Limited(NSEL) in the Year
2013-2014The Company has commodity trade receivables amounting to Rs.5,23,13,200/- as on 31st March, 2015 pertaining to
various commodities contracts executed through brokers on the National Spot Exchange Limited (NSEL). Over past few
months, NSEL is unable to fulfill its scheduled payment obligations as agreed by them The assets of the NSEL were attached
under the Maharastra Protection of Interest of Depositors (MPID) Act and a case was filed in the Bombay High Court.
Consequently, the Company has pursued a legal action against NSEL through NSEL Investor Forum which has also filed
complaint in Economic Offences Wing of Mumbai (EOW). Considering the recent development and action taken by EOW
against various borrowers of NSEL. The Company has received Rs.1,77,800/- In the Year2014-2015.The Company believes that
it shall recover the outstanding dues.
ICICI BANK :-
The Company entered in to an agreement with ICICI Bank for purchase of 14612 Sq.ft of residential Property in Chennai and
paid an amount of Rs.1,22,00,000/- as advance. The Bank has failed to execute the contract on their part. The company filed a
civil suit in the High Court of Madras vide C.S No2164/2010. Judgment is awaited
TICEL BIO-PARK :-

The Company has purchased two modules in Ticel Bio Park, Taramani, Chennai to carry out the scientific research activities.
The total sale consideration was Rs.1,51,20,000/-. The Company paid an advance of Rs.1,10,00,000/- Ticel Bio Park has
suddenly increased the sale Price. The Company challenged the price revision the High Court of Madras by way of Writ
petition in vide W.P No No25884/2007.Judgement is awaited

(ii) Commitments
a. Estimated amount of contracts remaining to be executed on Capital Account, and 1096648 8640000
not provided for
b. Other commitments (Sale contracts to be executed) 446568814 414426948
c .Purchase commitments ( Purchase contracts to be executed) 412778121 81935061
25) FOREIGN EXCHANGE TRANSACTIONS
a) Foreign exchange fluctuations are accounted in respective revenue heads of account (ie. Loss against. Purchase of Raw
materials Rs. 29,43,84,353/- and Gain against. Sale of Goods Rs.5,16,87,151). Net foreign exchange loss is Rs.24,26,97,202/-
.(Previous Year Net Loss Rs.26,52,73,774/-)
b)Net gain or loss on foreign currency transaction and translation of buyers credit (other than
considered as finance cost) is Rs.43,496/-

b) DERIVATIVE INSTURMENTS FOR HEDGING PURPOSE

The Company has entered into the following derivative instruments for hedging purpose associated with foreign currency
fluctuations related to certain firm commitments and is not intended for trading or speculation, the period end foreign exchange
exposures that have been hedged by a derivative instrument are stated below.

Indian Rupees Outstanding Indian Rupees

Particulars CURRENCY Loan Amount
Equivalent Amount Equivalent
US Dollars 3300000 149424000 618750 27979132
Wind Mill Loan
US Dollars 11142857 660270000 5142857 304740000
Krishna Patnam Project
14442857 809694000 5761607 332719132
Total

In Order to Manage Foreign exchange fluctuation on foreign currency loans, the company has entered into cross currency swaps
for USD 14442857 equaling to INR 809694000 which has fixed our future interest and principal payments in U.S. dollars vis-vis
in Indian rupees, as well as mitigated the impact of foreign currency transaction gains or losses.
The Settlement of the related cross currency swap will not have any impact on our financial statements as the exchange rate
for both principal repayment and interest payments have been fixed in this structure for the entire period of repayment .
Hence as of 31st March 2015 the foreign exchange fluctuation on the above loans are not Considered while preparing the
financial statements.

26.Disclosures on payments and dues to "Suppliers" as defined in Micro, Small and Medium enterprises Development
Act. 2006 ( 'The Act').
As at As at
March March
31st,2015 31st,2014
Rs. Rs.
1. Amount remaining unpaid, beyond the appointed/agreed date at the end
of the year. Nil Nil
(a) Principal amount of bills to be paid Nil Nil
(b) Interest due thereon Nil Nil
2. (a) Payments made to suppliers, during the year, but beyond
appointed/agreed day interest thereon in terms of Sec.16 of the Act., Nil Nil
(b) Interest paid along with such payments during the year
(c) Interest due and payable at the end of the year, on such payments made during the year Nil Nil
3. Amount of interest, for the year, U/s.16 of the Act, Including that Nil Nil
accrued and remaining unpaid, at the end of the year.
4. Total amount of interest, U/s 16 of the Act, Including that arising in Nil Nil
earlier years, accrued and remaining unpaid at the end of the year

Note :- For the purpose of the above details of the status of the supplier's under the Act has to be determined, to the extent
of and based on information furnished by the respective parties, and has accordingly, been relied upon by the company and its
auditors.
27.Comparison between consumption of Imported and Indigenous Raw Materials during the year:-

This year Previous Year

DETAILS
Value Percentage Value Percentage
Imported 8642353314 77.49% 6151140500 74.02%
Indigenous 2510188539 22.51% 2158768242 25.98%
11152541853 100.00 8309908742 100.00

28. Comparison between Consumption of Imported and Indigenous spare parts and components during the year (charged to
appropriate heads):-

This year Previous Year

DETAILS Value Percentage Value Percentage
Imported 6910627 0.74% 6407162 1.10%
Indigenous 933045180 99.26% 577175909 98.90%
939955807 100 583583071 100

29. Value of Imports made by the company during the year calculated on C.I.F. basis:-

DETAILS This year Previous Year

Oils , Seeds & Others 8090399800 6462701829

Stores 35204736 37103218
8125604536 6499805047

30. Earnings in foreign exchange :-

DETAILS This year Previous Year

FOB Value of Exports 2674101648 1980654010
Interest from Subsidiaries 23484767 22518132
Commodity Washout Charges 1846051 20407965
Others Services 16893468 10793122
2716325934 2034373229

31. Expenditure incurred in foreign currency: -

DETAILS This year Previous Year

Travelling (Excluding tickets purchased in India) 1437236 1030281
Subscriptions 12211 181213
Consultancy Charges 106520 825968
Demurrage Charges 6231587 -
Brokerage 6060812 1707988
Ocean Freight 20634516 13867773

32. The Government of Andhrapradesh has sanctioned the Sales Tax Holiday to the company vide sanction letter
No20/01/2003/679/FD Dt.28.06.2002 for a period of 7Years from 30.03.2003 to 29.03.2009. After introduction of APVAT vide
rule 67 r.w.s 69 the sales tax holiday was converted in to sales tax deferment and altered the repayment period. The company
has challenged the above amendment before the Supreme court of India by way of Special Leave Petition
No24837/2013(FY2005-06), 20451/2014(FY2006-07),13645/2015(FY2007-08) the Apex Court granted the stay for the above
three years
33. INFORMATION ABOUT RELATED PARTY RELATIONSHIPS AND TRANSACATIONS:-
Sl.No. NATURE OF RELATIONSHIP
1. Subsidiaries 3F Oil Palm Agrotech Pvt. Ltd
Simhapuri Agro Products Pvt.Ltd
Viaton Energy Pvt. Ltd.
3F Global Singapore Pte Ltd.,
3F Ghana Limited, Ghana.
Ceylone Speciality Fats Pvt., Ltd.,
Ceylone Edible Oils Pvt . Ltd.,
Chakranemi Infrastructure Pvt Ltd.,
3F Ghana Commodities Limited, Ghana.
3F Ghana Trading Limited.
3F Benin Sarl.
3F Mali Sarl.
3F Burkina Faso Sarl.
3F Nigeria Impex Ltd.,
3F Senegal Sarl.

2. Joint Venture Companies 3F Fuji Foods Pvt Ltd.,

3. Key Management Personnel Executive Directors

S.B.Goenka
O.P.Goenka
Bharat Kumar Goenka
S.R.Goenka
Sushil Goenka
Jivesh Goenka
Jitendra Goenka
Seema Goenka (W.e.f.19/02/2015)
RVSSS Prasada Rao -- CFO
S.Ranga Rajan -- CS
4. Relatives of Key Management Personnel Sudhir Goenka S/o.S.B.Goenka
Sudha Goenka W/o.S.B.Goenka
Bimala Goenka W/o.Bharat Kumar Goenka
Tapesh Goenka S/o.Bharat Kumar Goenka
Pranav Goenka S/o.Sushil Goenka
Aditi Goenka D/o.Sushil Goenka
Ambika Goenka D/o.Bharat Kumar Goenka
Ashish Goenka S/o.Sanjay Goenka
Amritha Goenka W/o. Jivesh Goenka
Kavitha Goenka W/o. Jitendra Goenka
Sanjay Goenka S/o.O.P.Goenka
5. Enterprises controlled by Key
Management personnel/Relatives of KMP Krishnas Creations
Bharat Export corporation
Speciality Rubbers Pvt. Ltd.,
Ashirvad Enterprises
Best Investments Pte. Ltd.
Samyak Udyog Plastics Pvt. Ltd.
Mikachi Electronics
Fashion Handloom & Handycrafts
3F Investments
Golden Needle Apparels
Goenka Blom Infrastructure Pvt. Ltd.,
Raj Syntax Pvt. Ltd.,
Genetwister Biotech Pvt. Ltd.,
Forever New Apparels Pvt Ltd.,
Apostle Trading Consultants Pvt. Ltd.,
Creative Garments Private Ltd.,
D.R.Goenka Womens Degree College
Goenka Infotech Limited
Simhapuri Agro Products Private Limited
Viaton Infrastructure Private Limited
Kottu Oil Private Limited
Note: accordingly Related party relationship is as identified and borne out by the records maintained by the company and relied upon by the auditors accordingly.
 Enterprises
Relatives of
Key /Controlled Joint
Subsidiary Key
Particulars Management by KMP/ Venture Total
Company Management
Personnel Relatives of Companies
Personnel
KMP
1. Purchase of goods/Services from
i) Goods
3F Oil Palm Agro Tech Private Ltd 763131925 763131925
(326035771) (326035771)
Asia Pacific Commodities Ltd. - -
(932926000) (932926000)
3F Ghana Commodities Ltd - -
(226585307) (226585307)
3F Global Singapore, Singapore 1200493614 1200493614
(1151723749) (1151723749)
Ceylone Speciality Fats Pvt. Ltd. 15631200 15631200
(21114000) (21114000)
3F Ghana Limited 55334740 55334740
- -
Samyak Udyog Plastics Pvt Ltd., 12265064 12265064
(14960850) (14960850)
ii) Services
Asia Pacific Commodities Ltd. - -
(10924956) (10924956)
Total 2034591479 - - 12265064 - 2046856543
Total (Previous Year) (2669309783) - - (14960850) - (2684270633)
2.Sale of goods/Services to
i) Goods
Asia Pacific Commodities Ltd. - -
(445708018) (445708018)
3F Ghana Limited,Ghana. 8579836 8579836
(9034699) (9034699)
3F Global Singapore Pte Ltd., 127537787 127537787
- -
ii) Services -
Asia Pacific Commodities Ltd. - -
(1783356) (1783356)
3F Ghana Limited., 4211171 4211171
(3059697) (3059697)
3F Global Singapore, Singapore 12682297 12682297
(7733425) (7733425)
Ceylone Speciality Fats Pvt. Ltd. 1574566 1574566
- -
3F Oil Palm Agro Tech Ltd., 1190899 1190899
- -
Vaiton Energy Pvt Ltd., 5175 5175
- -
3F Fuji Foods Pvt Ltd., 29905714 29905714
- -
Total 155781731 - - - 29905714 185687445
Total (Previous Year) (467319195) - - - - (467319195)
3.Rent paid to
Fashion Handloom & Handycrafts 108000 108000
(108000) (108000)
S.B.Goenka 1000000 1000000
(2400000) (2400000)
Sushil Goenka 248000 248000
(528000) (528000)
Seema Goenka 1548000 1548000
(1548000) (1548000)
Sudha Goenka 600000 600000
(1440000) (1440000)
Sudhir Goenka 200000 200000
(480000) (480000)
Others - -
(12600) (12600)
Total - 1248000 2348000 108000 - 3704000
Total (Previous Year) - (2928000) (3468000) (120600) - (6516600)
 Enterprises
Key Relatives of Key /Controlled Joint
Subsidiary
Particulars Management Management by KMP/ Venture Total
Company
Personnel Personnel Relatives of Companies
KMP
4.Remuneration paid to
Shivbhagavan Goenka 13374755 13374755
(7555385) (7555385)
Om Prakash Goenka 8035800 8035800
(8032000) (8032000)
Bharat Kumar Goenka 4418200 4418200
(4403200) (4403200)
Sita Ram Goenka 9472000 9472000
(9487000) (9487000)
Sushil Goenka 8974209 8974209
(8746165) (8746165)
Jitendra Goenka 2036000 2036000
(1019645) (1008000) (2027645)
Jivesh Goenka 2016000 2016000
(1022340) (1008000) (2030340)
G.S.Goenka - -
(300000) (300000)
Seema Goenka 126029 953600 1079629
- (1075200) (1075200)
Asish Goenka - -
(600000) (600000)
Sunil Goenka - -
(89600) (89600)
Sasi Mohan Goenka - -
(89600) (89600)

Total 48452993 953600 - - 49406593

Total (Previous Year) (40565735) (3870400) - - (44436135)
5.Interest paid to
Speciality Rubbers Pvt Ltd 10108411 10108411
(13051526) (13051526)
Others - 857380 857380
(5031) (795096) (800127)
Total - - 857380 10108411 - 10965791
Total (Previous Year) - (5031) (795096) (13051526) - (13851653)
6.Interest received from
3F Ghana LimitedGhana. 1395881 1395881
(12868548) (12868548)
3F Global Singapore Singapore 22088886 22088886
(9649584) (9649584)
Viaton Energy Pvt. Ltd. 15142009 15142009
(8289443) (8289443)
Total 38626776 - - - - 38626776
Total (Previous Year) (30807575) - - - - (30807575)
7.Rents Received from
Asia Pacific Commodities Ltd. - -
(15000) (15000)
3F Fuji Foods Pvt ltd. 606744 606744
- -
Total - - - - 606744 606744
Total (Previous Year) (15000) - - - - (15000)
8.Dividend Received from
3F Ghana Ltd. 49700800 49700800
(27462000) (27462000)
3F Oil Palm Agro Tech Private Ltd 13929750 13929750
- -
Total 63630550 - - - - 63630550
Total (Previous Year) (27462000) - - - - (27462000)
 Relatives of Enterprises
Key Joint
Subsidiary Key /Controlled by
Particulars Management Venture Total
Company Management KMP/ Relatives
Personnel Companies
Personnel of KMP
9. Loans/Advances Issued/Paid
3F Ghana Limited,Ghana. 61520000 61520000
(110138689) (110138689)
3F Global Singapore Pte Ltd. 382238044 382238044
(92530932) (92530932)
Vaiton Energy Pvt Ltd. 35000000 35000000
(118777778) (118777778)
Chakranemi Infrastructure Pvt Ltd. 291780 291780
(867821) (867821)
Speciality Rubbers Pvt Ltd (Paid) 154600000 154600000
(271950000) (271950000)
3F Oil Palm Agro Tech Ltd. 1190899 1190899
(Reimbursement of Payments) - -
3F Fuji Foods Pvt Ltd. 18776579 18776579
(Reimbursement of Payments) (38712709) (38712709)
Total 480240723 - - 154600000 18776579 653617302
Total (Previous Year) (322315220) - - (271950000) (38712709) (632977929)
10. Loans/Advances Returns/Received
3F Ghana LimitedGhana. 61520000 61520000
(259266533) (259266533)
3F Global Singapore Pte Ltd. 315865544 315865544
(67801932) (67801932)
3F Oil Palm Agro Tech Private Ltd - -
(36573778) (36573778)
Vaiton Energy Pvt Ltd. 20039501 20039501
(61000000) (61000000)
Ceylone Speciality Fats Pvt Ltd. 28158577 28158577
- -
Speciality Rubbers Pvt Ltd ( Received) 176116000 176116000
(162350000) (162350000)
3F Fuji Foods Pvt Ltd. 18447022 18447022
(Reimbursement of Payments) (38661975) (38661975)
Total 425583622 - - 176116000 18447022 620146644
Total (Previous Year) (424642243) - - (162350000) (38661975) (625654218)
11.Sale of Fixed Assets
G.S.Goenka -
(20000000) -
Total - 20000000 - - 20000000
Total (Previous Year) - (20000000) - - -
 Key Relatives of Key Enterprises Joint
Subsidiary
Particulars Management Management /Controlled by KMP/ Venture Total
Company Relatives of KMP Companies
Personnel Personnel
12.Rights Issue
Om Prakash Goenka 8384250 8384250
Sita Ram Goenka 10074375 10074375
Shivbhagavan Goenka 8373000 8373000
Bharat Kumar Goenka 9890250 9890250
Sita Ram Goenka(HUF) 5533875 5533875
Bharat Kumar Goenka(HUF) 3040250 3040250
Sushil Goenka 14180000 14180000
Sushil Goenka (HUF) 2118125 2118125
Seema Goenka 1739750 1739750
Jitendra Goenka 3451250 3451250
Sudhir Goenka(HUF) 723250 723250
Jitendra Goenka (HUF) 1200000 1200000
Asish Goenka 2903125 2903125
Sudha Goenka 2198750 2198750
Shivbhagavan Goenka (HUF) 2052000 2052000
Om Prakash Goenka (HUF) 1670875 1670875
Sudhir Goenka 700000 700000
Bimala Devi Goenka 3003875 3003875
Jivesh Goenka 2813125 2813125
Prnav Goenka 1847125 1847125
Ambica Goenka 3392500 3392500
Kavitha Goenka 1278750 1278750
Adithi Goenka 91500 91500
Jivesh Goenka (HUF) 1204000 1204000
Amritha Goenka 351000 351000
Sanjay Goenka 3890625 3890625
Sanjay Goenka (HUF) 1674625 1674625
Total - 73985375 23794875 - - 97780250
13. Buy Back of Shares
Om Prakash Goenka - -
(17500000) (17500000)
Sita Ram Goenka - -
(13959500) (13959500)
Shivbhagavan Goenka - -
(34383125) (34383125)
Bharat Kumar Goenka - -
(13437500) (13437500)
Sita Ram Goenka(HUF) - -
(5687500) (5687500)
Bharat Kumar Goenka(HUF) - -
(5687500) (5687500)
Sushil Goenka - -
(2484375) (2484375)
Sushil Goenka (HUF) - -
(1039500) (1039500)
Seema Goenka - -
(6459375) (6459375)
Jitendra Goenka - -
(5833500) (5833500)
Sudhir Goenka(HUF) - -
(3750000) (3750000)
Jitendra Goenka (HUF) -
(875000) (875000)
Asish Goenka - -
(2503125) (2503125)
Tapesh Goenka - -
(875000) (875000)
Sudha Goenka - -
(5525000) (5525000)
-
Total (Previous Year) - (94179000) (25821000) - - (120000000)
 Relatives of Enterprises
Key
Subsidiary Key /Controlled by Joint Venture
Particulars Management Total
Company Management KMP/ Relatives Companies
Personnel
Personnel of KMP
14.Diminution in Value of Investments
Ceylone Speciality Fats Pvt Ltd. 34930990 34930990
(8732748) (8732748)
Total 34930990 - - - - 34930990
Total(Previous Year) (8732748) - - - - (8732748)
Balances as on 31st March 2015

15. Investment in Equity Shares

Asia Pacific Commodities Ltd. - -

(30000000) (30000000)
3F Oil Palm Agro Tech Private Ltd 100100000 100100000
(100100000) (100100000)
3F Ghana Limited,Ghana. 93469384 93469384
(93469384) (93469384)
Ceylone Speciality Fats Pvt Ltd. - -
(34930990) (34930990)
Chakranemi Infrastructure Pvt Ltd 53651000 53651000
(53651000) (53651000)
Viaton Energy Pvt Ltd., 66300000 66300000
(66300000) (66300000)
3F Global Singapore Pte Ltd., 4869220 4869220
(4869220) (4869220)
3F Ghana Trading Limited. 23951650 23951650
(23951650) (23951650)
3F Fuji Foods Pvt Ltd., 144000000 144000000
(90000000) (90000000)
Total 342341254 - - - 144000000 486341254
Total (Previous Year) (407272244) - - - (90000000) (497272244)
16. Loans and Advances
3F Global Singapore Pte Ltd., 156237500 156237500
(89865000) (89865000)
Vaiton Energy Pvt Ltd., 141094365 141094365
(126133866) (126133866)
Ceylone Speciality Fats Pvt Ltd. - -
(28158577) (28158577)
Chakranemi Infrastructure Pvt Ltd 6298849 6298849
(6007069) (6007069)
D.R.Goenka Women's Degree College - -
(994915) (994915)
Total 303630714 - - - - 303630714
Total (Previous Year) (250164512) - - (994915) - (251159427)
17. Receivables from
3F Ghana Ltd 18526485 18526485
(11292406) (11292406)
3F Global Singapore Pte Ltd., 37863346 37863346
(7644037) (7644037)
3F Oil Palm Agro Tech Pvt Ltd - -
(711163) (711163)
Ceylone Speciality Fats Pvt Ltd. - -
(5009077) (5009077)
Dr.Goenka Women's Degree College - -
(994915) (994915)
Vaiton Infrastructure Pvt Ltd., 125000 125000
(125000) (125000)
3F Fuji Foods Pvt Ltd., 378940 378940
(50734) (50734)
3F Investments 104506 104506
(104506) (104506)
Total 56514831 - - 104506 378940 56998277
Total (Previous Year) (24781683) - - (1099421) (50734) (25931838)
 Key Relatives of Enterprises
Joint
Subsidiary Manageme Key /Controlled by
Particulars Venture Total
Company nt Management KMP/ Relatives
Companies
Personnel Personnel of KMP
18. Payable to
Asia Pacific Commodities Ltd - -
(101311947) (101311947)
3F Oil Palm Agro Tech Pvt Ltd 7069401 7069401
(11991155) (11991155)
3F Global Singapore Pte Ltd., - -
(737011572) (737011572)
Speciality Rubbers Pvt Ltd - 44582504 44582504
- (23066504) (23066504)
Ceylone Speciality Fats Pvt Ltd. - -
(21114000) (21114000)
Samyak Udyog Plastics Pvt Ltd., 500220 500220
(1084288) (1084288)
Golden Needle Apperals - -
(435416) (435416)
Smt. Seema Goenka(Rent) 112500 112500
(112500) (112500)
Best Investments (Dividend) 1542675 1542675
- -
3F Fuji Foods Pvt. Ltd., 3110394 3110394
- -
Total 7069401 - 112500 46625399 3110394 56917693
Total (Previous Year) (871428674) - (112500) (24586208) - (896127382)

19.Corporate Guarantee Given to

Asia Pacific Commodities Ltd - -
(9800000) (9800000)
Vaiton Energy Pvt Ltd., 612440934 612440934
(504500000) (504500000)
3F Global Singapore Pte Ltd., 379800000 379800000
(311532000) (311532000)
3F Ghana Ltd., 316500000 316500000
(299550000) (299550000)
3F Oil Palm Agro Tech Pvt., Ltd., -
(201400000) (201400000)
Total 1308740934 - - - - 1308740934
Total (Previous Year) (1326782000) - - - - (1326782000)

20.Deposits held by
Seema Goenka - -
(1330000) (1330000)
Total - - - - - -
Total (Previous Year) - - (1330000) - - (1330000)

21. Interest Receivable from Subsidiaries

3F Global Singapore Pte Ltd., 16505555 16505555
(9649584) (9649584)
3F Ghana Ltd., - -
(12868548) (12868548)
Viaton Energy Pvt. Ltd. 13627808 13627808
(7460499) (7460499)
Total 30133363 - - - - 30133363
Total (Previous Year) (29978631) - - - - (29978631)
 Enterprises
Key Relatives of Key Joint
Subsidiary /Controlled by
Particulars Management Management Venture Total
Company KMP/ Relatives of
Personnel Personnel Companies
KMP
22.Share Capital in Company held by
Sitaram Goenka (Indl) 10151330 10151330
(9345380) (9345380)
Sitaram Goenka (HUF) 4956440 4956440
(4513730) (4513730)
Sushil Goenka (Indl) 12042800 12042800
(10908400) (10908400)
Sushil Goenka (HUF) 2812780 2812780
(2643330) (2643330)
Shivbhagavan Goenka(Indl) 7191840 7191840
(6522000) (6522000)
Shivbhagavan Goenka (HUF) 3167900 3167900
(3003740) (3003740)
Bharat Kumar Goenka(Indl) 4971550 4971550
(4180330) (4180330)
Bharat Kumar Goenka(HUF) 4074550 4074550
(3831330) (3831330)
Om Prakash Goenka (Indl) 8369640 8369640
(7698900) (7698900)
Om Prakash Goenka (HUF) 1935170 1935170
(1801500) (1801500)
Jitendra Goenka (Indl) 2142770 2142770
(1866670) (1866670)
Jitendra Goenka (HUF) 1182660 1182660
(1086660) (1086660)
Jivesh Goenka (Indl) 2723270 2723270
(2498220) (2498220)
Jivesh Goenka (HUF) 1256320 1256320
(1160000) (1160000)
M/S. Best Investment 6167250 6167250
(6167250) (6167250)
Sanjay Goenka(Indl) 2544420 2544420
(2233170) (2233170)
Sanjay Goenka (HUF) 2710470 2710470
(2576500) (2576500)
Ambica Goenka 1952330 1952330
(1680930) (1680930)
Ashih Goenka 2869250 2869250
(2637000) (2637000)
Ashih Goenka (HUF) 290940 290940
(290940) (290940)
Seema Goenka 2815850 2815850
(2676670) (2676670)
Sudha Goenka 3714900 3714900
(3539000) (3539000)
Tapesh Goenka 2160400 2160400
(2160400) (2160400)
Tapesh Goenka(HUF) 1490670 1490670
(1490670) (1490670)
Bimala Devi Goenka 3553980 3553980
(3313670) (3313670)
Amritha Goenka 568080 568080
(540000) (540000)
Kavitha Goenka 1083240 1083240
(980940) (980940)
Pranav Goenka 1135770 1135770
(98800) (98800)
Pranav Goenka(HUF) 700000 700000
 (700000) (700000)
Sudhir Goenka 416000 416000
(360000) (360000)
Sudhir Goenka (HUF) 756190 756190
(698330) (698330)
Aditi Goenka 148250 148250
(140930) (140930)
Others - -
(889200) (889200)
Total - 69794870 26094890 6167250 - 102057010
Total (Previous Year) - (61060190) (27007150) (6167250) - (94234590)

LEFT BLANK INTENTIONALLY

34) JOINT VENTURE DISCLOSURE

The Company has 45% disclosure in its joint venture company 3F Fuji Foods pvt ltd incorporated in India
The Company's share(at 45%) of the Capital commitments of 3F Fuji Foods Pvt Ltd at the Balance Sheet Date works out to
Rs.2,85,28,451/-(Rs.8,25,69,528/-).
The interest of the Company (at 45%) in the aggregate amount of the assets, income and expenses of 3F Fuji Foods Pvt Ltd was
as follows:

As at As at
PARTICULARS
31 March 2015 31 March 2014
EQUITY AND LIABILITIES
Shareholders' funds
Share capital 144000000 27000000
Reserves and surplus (7072327) (1275845)
Share application money pending allotment - 63000000
136927673 88724155
Non - Current Liabilities -
Long-Term Borrowings 119986564 -
Long-Term Provisions 156868 -
120143432 -
Current liabilities
Trade Payables 4709581
Other Current Liabilities 22502249 227921
Short term Provisions 562263 49649
27774093 277569
TOTAL 284845198 89001725
ASSETS
Fixed Assets
Tangible Assets 18788287 13695570
Intangible Assets 5818
Capital Work In Progress 245658672
Deferred Tax asset(net) 48472
Long Term Loans and advances 8606325 22012823
273107574 35708393
Current assets
Inventories 4524774
Trade Receivables 1399678
Current Investments 4971354 19892338
Cash and Bank Balances 670111 33361952
Short term Loans and advances 171707
Other Current Assets - 39041
11737624 53293331
284845198 89001725
Performance of the Company:
As at As at
PARTICULARS
31 March 2015 31 March 2014
Income
Revenue from operation 1514748 -
Other Income 3760434 309897
Total revenue 5275182 309897
Expenses - -
Purchase of Traded goods 6041877 -
Changes in Inventories of Stock in Trade (4524774)
Employee benefits 368036 -
Depreciation and amortisation 221552 -
Finance Cost 76744
Other expenses 8056062 1518242
Total expenses 10239496 1518242
Loss before tax (4964314) (1208345)
Tax expense
-Current tax 877811 67500
-Deferred tax 48472 -
-Taxes Paid for earlier years 2831
Loss for the period 832169 67500
Loss after Tax (5796482) (1275845)
35. DISCLOSURES REQUIRED BY ACCOUNTING STANDARD-15 (REVISED)- EMPLOYEE BENEFITS

a) Reconciliation for present value of obligations Gratuity

Present value of obligations as at beginning of year 29907849

Interest Cost 2392628
Current Service Cost 3228655
Benefits paid (2173157)
Actuarial loss on obligation 80771
Present value of obligations as at end of year 33436746

b) Reconciliation for Fair Value of Plan Assets

Fair value of plan assets at beginning of year 18457855

Expected return on plan assets 1735010
Contributions 1868695
Benefits paid (2173157)
Actuarial gain on plan assets -
Fair value of plan assets at the end of year 19888403

c) Expenses Recognised in statement of Profit & Loss a/c

Current Service cost 3228655

Interest Cost 2392628
Expected return on plan assets 1735010
Net Actuarial loss recognised in the year 80771
Expenses to be Recognised in the profit & loss 3967044

d) Net Liability Recognised in the Balance Sheet

Present value of obligations as at the end of year 33436746

Fair value of plan assets as at the end of the year 19888403
Funded status 13548343
Net Liability Recognised in the Balance Sheet 13548343

e) Actuarial Assumptions 31/03/2015

Discount Rate 8.00%
Salary Escalation 7.00%
Attrition rate 1-3%
Expected return on plan assets 8.00%
Mortality LIC 94-96
Mortality Rates

36. (A)Salient features of Scheme of Amalgamation of Asia Pacific commodities limited (APCL)with the Company(3F Industries
Limited) under section 391 to Section 394 of the Companies Act 1956.

a)Pursuant to the scheme of amalgamation of the erstwhile APCL (100% subsidiary of the company) with the Company, as
approved by the Shareholders at the meeting of the Company held on 09th December, 2013 and the sanction of the
Honourable High Court of Judicature at Hyderabad, for the state of Telangana and the state of AndhraPradesh to the Scheme of
Amalgamation, the assets and liabilities of the erstwhile AsiaPacific commodities limited were transferred to and vested in the
Company with effect from the Appointed date viz., 1st April, 2014. The Scheme has accordingly, been given effect to in the
Accounts.

(b) The amalgamation has been accounted for under the "Pooling of Interest” method as prescribed by Accounting Standard
14 (Accounting for Amalgamation) issued by the Ministry of Corporate Affairs. Accordingly the assets, liabilities and other
reserves of the erstwhile Asia Pacific commodities limited as at 1st April, 2014 have been taken over at their book values.
 (c) Consequent to amalgamation, 3000000 Equity shares of Rs.10 each held by the Company in the erstwhile Asia Pacific
commodities limited and Trade payables amounting to Rs.101311947 have been cancelled.

(d)Pursuant to the Scheme, The Authorised share Capital of Asia Pacific Commodities Limited shall stand combined with the
Authorised Share Capital of 3F Industries Limited.

(e) Pending completion of the relevant formalities for transfer of some of the assets and liabilities acquired pursuant to the
scheme in the name of the company, such assets and liabilities continue to be in the name of the erstwhile Asia Pacific
Commodities Limited.

(B)The figures for the previous year do not include figures for the erstwhile Asia Pacific commodities limited and accordingly the
current year's figures are not comparable to those of the previous year.

37. A) Loans and advances include an amount of Rs.3036.31 Lakhs being amount given as
inter corporate deposit u/s 186 of the Companies Act, 2013 to the following subsidiaries.
3F Global Chakranemi
Vaiton Energy Ceylon Speciality
Name of the Company Singapore Pte Infrastructure 3F Ghana Ltd.,
Pvt Ltd., Fats pvt Ltd
Ltd., Pvt Ltd
Amount of Advance as on 31/03/2015 141094365 156237500 6298849 - -
Maximum Balance during the Year 141094365 456076250 6298849 61520000 28158577
Date of Advance Various Dates Various Dates Various Dates Various Dates Various Dates
Interest rate 12% 10% Nil 14.75% Nil
Security NA unsecured unsecured unsecured unsecured
To meet To meet
To meet long To meet To meet working
working working
term Project work capital
capital capital
requirements requirements requirements
Purpose of Advance requirements requirements
Tenor NA One Year NA NA NA
Advances given to 3F Ghana Ltd and Ceylon Speciality Fats Pvt Ltd have been received during the year

B) (i)The amount advanced to Ceylone Speciality Fats Pvt Ltd has been recovered in full during the year. No interest has been
charged on this loan since the project has turned unviable due to conditions prevalent in Srilanka. Hence the Company decided
to close the operations in Srilanka

ii) Chakranemi Infrastructure pvt ltd is a Wholly owned subsidiary of the Comapany. The expenditure on the Project work are
funded by the Company. Hence no interest has been charged on the advance amount as the Commercial operations are yet to
start
C) List of Corporate Guarantees which are covered u/s 186 of the Companies Act, 2013
3F Global
Vaiton Energy Vaiton Energy Vaiton Energy Singapore Pte
Name of the Company Pvt Ltd., Pvt Ltd., Pvt Ltd., Ltd., 3F Ghana Ltd.,
Amount of Corporate guarantee Rs.90000000 Rs.150000000 USD 9750000 USD 6200000 USD 5000000
Amount of Corporate Guarantee Rs.440839240
given as on 31/03/2015 Rs.90000000 Rs.76517765 (USD 6964285) Rs.392460000 Rs.316500000
Date of Corporate guarantee Various Dates Various Dates Various Dates Various Dates Various Dates
Security unsecured unsecured unsecured unsecured unsecured
To meet To meet
working To meet working To meet To meet
capital working capital capital working capital working capital
Purpose of Guarantee requirements requirements requirements requirements requirements
On Closer of On Closer of On Closer of On Closer of On Closer of
Tenor of corporate guarantee Loan Loan Loan Loan Loan

38. The balances shown in personal accounts are subject to confirmation/reconciliation by respective parties. In the opinion of
the management, all the amounts stated under sundry debtors and loans and advances are recoverable at the values at which
they are stated.

39. Previous year figures have been re-grouped wherever necessary.

40.Paise have been rounded off to the nearest rupee.

 Independent Auditor’s Report
To the Members of 3F INDUSTRIES LIMITED, TADEPALLIGUDEM

Report on Consolidated Financial Statements:

We have audited the accompanying consolidated financial statements of 3F Industries Limited (the
“Holding Company”) and its Indian subsidiaries (collectively referred to as “the Group”) and its jointly
controlled entity, comprising of the Consolidated Balance sheet as at 31st March, 2015, the Consolidated
Statement of Profit and Loss and the Consolidated Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements:

The Holding Company’s Board of Directors is responsible for the preparation of these consolidated
financial statements in terms with the requirement of the Companies Act, 2013(“the Act”) read with
Rule 6 of Companies (Accounts) Rules,2014,as amended vide Notification F.No.01/19/2013-CL-V-Part,
dated 16.01.2015, that give a true and fair view of the consolidated financial position, consolidated
financial performance and consolidated cash flows of the Group including its Jointly controlled entity
company in accordance with the accounting principles generally accepted in India, including the
Accounting standards specified under section 133 of the Act, read with Rule 7 of Companies (Accounts)
Rules, 2014. The respective Board of Directors of the companies included in the Group and of its jointly
controlled entity are responsible for maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting the
frauds and other irregularities; the selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and the design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of
the financial statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error, which have been used for the purpose of preparation of the consolidated financial
statements by the Directors of the Holding Company, as aforesaid.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our
audit. While conducting the audit, we have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10)
of the Act. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the consolidated financial
statements, whether due to fraud of error. In making those risk assessments, the auditor considers
internal financial control relevant to the Holding Company’s preparation of the consolidated financial
statements that give a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on whether the Holding Company has in
place an adequate internal financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made by the Holding Company’s
Board of Directors, as well as evaluating the overall presentation of the consolidated financial
statements.

We believe that the audit evidence obtained by us and the audit evidence obtained by the other
auditors in terms of their reports referred to in Sub-paragraph (a) of the Other Matters paragraph
below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial
statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the
consolidated financial statements give the information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting principles generally accepted in India, of
the consolidated state of affairs of the Group, and its jointly controlled entity as at 31st March, 2015, and
their consolidated Profit and their consolidated cash flows for the year ended on that date.

Other Matters

(a) We did not audit the financial statements / financial information of Five Indian subsidiaries,
whose financial statements / financial information reflect total assets of Rs.195,65,91,135/- as at
31st March, 2015, total revenues of Rs. 159,54,27,028/-, and net cash flows amounting to Rs.
5,10,65,700/- for the year ended on that date, as considered in the consolidated financial
statements. These financial statements/financial information have been audited by other
auditors whose reports have been furnished to us by the Management and our opinion on the
consolidated financial statements, in so far as it relates to the amounts and disclosures included
in respect of these subsidiaries, and our report in terms of sub-sections (3) and (11) of Section
143 of the Act in so far as it relates to the aforesaid subsidiaries, is based solely on the reports of
the other auditors.
(b) We did not audit the financial statements / financial information of 3F Fuji Foods Private Limited
(a jointly controlled entity), whose financial statements / financial information reflect total
assets of Rs. 28,47,96,727/- as at 31st March, 2015, total revenues of Rs. 15,14,748/-, and net
cash flows amounting to Rs. 16,94,87,642/- for the year ended on that date, as considered in the
consolidated financial statements. These financial statements/financial information are
 unaudited and have been furnished to us by the Management and our opinion on the
consolidated financial statements, in so far as it relates to the amounts and disclosures included
in respect of the jointly controlled entity, and our report in terms of sub-sections (3) and (11) of
Section 143 of the Act in so far as it relates to the aforesaid jointly controlled entity, is based
solely on such unaudited financial statements / financial information. In our opinion and
according to the information and explanations given to us by the Management, these financial
statements / financial information are not material to the Group.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory
Requirements below, is not modified in respect of the above matters with respect to our reliance on
the work done and the report of the other auditor and the financial statements/financial
information certified by the Management.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor’s Report) Order, 2015(“the Order”) issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Act, based on the
comments in the auditor’s report of the Holding company and its Subsidiaries and its jointly
controlled entity incorporated in India, (together referred to as “the Covered entities” in this
report), we give in the Annexure a statement on the matters specified in the paragraph 3 and 4
of the Order, to the extent applicable.
2) As required by Section 143(3) of the Act, we report to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit of the aforesaid
consolidated financial statements.
b) In our opinion, proper books of account as required by law relating to preparation of the
aforesaid consolidated financial statements have been kept so far as it appears from our
examination of those books and the reports of the other auditors.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, and the
Consolidated Cash Flow Statement dealt with by this Repot are in agreement with the
relevant books of account maintained for the purpose of preparation of the consolidated
financial statements;
d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014;
e) On the basis of written representations received from the directors of the Holding Company
as on 31st March, 2015 taken on record by the Board of Directors of the Holding Company,
and the reports of the statutory auditors of its subsidiary companies incorporated in India,
none of the directors of the Group Companies incorporated in India is disqualified as on 31st
March, 2015 from being appointed as a director in terms of Section 164(2) of the Companies
Act;
 f) With respect to the other matters to be included in the Auditor’s report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of
our information and according to the explanations given to us:
i. The Consolidated financial statements disclose the impact of pending litigations on the
consolidated financial position of the Group and its jointly controlled entity -- Refer
Note 24 to the Consolidated financial statements;
ii. The Group and its jointly controlled entity, wherever applicable has made provision, as
required under the applicable law and accounting standards, for any material
foreseeable losses, if any, on long term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Holding Company, its Subsidiaries and its
jointly controlled entity incorporated in India.

For BRAHMAYYA & Co

Chartered Accountants
Firm Registration. No. 000513S

Sd/-
(T. V. Ramana)
Partner
(ICAI Membership. No. 200523)

Place: Vijayawada
Date: 03rd September 2015
 Annexure to the Independent Auditors’ Report

The Annexure referred to in Paragraph 1 under the heading of “Report on other Legal and Regulatory
Requirements’ of our report of even date, to the Members of 3F INDUSTRIES LIMITED on the
consolidated financial statements for the year ended 31 March 2015.

Our reporting on the CARO 2015 includes Five Indian Subsidiary Companies, to which CARO 2015 is
applicable, which have been audited by other auditors and our report in respect of these entities is
based solely on the reports of the other auditors, to the extent considered applicable for reporting
under CARO 2015 in the case of the consolidated financial statements.

In respect of a jointly controlled entity, incorporated in India, which has been included in the
consolidated financial statements based on unaudited financial statements of such entity provided to
us by the Management and hence no Report under CARO 2015 is available, and accordingly the
possible effects of the same on our reporting under CARO 2015 has not been considered.

We report that:

(i) (a) The covered entities have maintained proper records showing full particulars including
quantitative details and situation of Fixed assets, except 3F Oil Palm Agrotech Private
Limited, where the other auditor has reported that, ‘the fixed assets register of the said
company is in the process of updating records to include quantitative details and situation
of its fixed assets’.

(b) The Fixed assets of the covered entities have been physically verified by the respective
managements according to a phased program designed to cover all the items over a period
of time which, in our opinion and in the opinion of the other auditor, is reasonable having
regard to the size of the company and the nature of its assets. According to the
information and explanation given to us and the other auditors, no material discrepancies
were noticed on such physical verification.

(ii) (a) The inventory of the covered entities has been physically verified by the Management of
respective entities at reasonable intervals during the year under report. In our opinion and in
the opinion of the other auditors, the frequency of such verification is reasonable.

(b) In our opinion and in the opinion of the other auditors, the procedures of physical
verification of inventories followed by the Management of respective entities are
reasonable and adequate in relation to the size of the covered entities and the nature of
their businesses.

(c) On the basis of our examination of the inventory records, in our opinion and in the opinion
of the other auditors, the covered entities are maintaining proper records of its inventory.
The discrepancies noticed on physical verification of inventories as compared to book
records were not material and the same have been properly dealt within the books of the
covered entities.

Page 1 of 5
 (iii) The Holding Company has granted loans to its five subsidiaries covered in the register
maintained under Section 189 of the Companies Act 2013, whose aggregate outstanding
balance as on reporting date is Rs.30,36,30,714/-(Maximum balance Rs.69,31,48,041/-) and
these loans are in the nature of working capital except long term loan given to Viaton Energy
Private Limited. Out of the above subsidiaries, the Holding Company has advanced interest free
loan to Chakranemi Infrastructure Pvt ltd and Ceylon Speciality Fats Pvt ltd.

a) The borrowers have been regular in the payment of interest in respect of above said
loans given by Holding company except Viaton Energy private Limited. The interest
receivable from Viaton Energy Private Limited was converted into term loan.

b) The loans/advances given by Holding company to its subsidiaries are in the nature of
working capital, except Viaton Energy Private Limited, hence, the para No. 3(iii)(b) of
CARO 2015 with regard to overdue amounts of more than one lakh rupees in respect of
loans/advances granted does not arise, and as per the terms of repayment, there is no
overdue from Viaton Energy Private Limited as on the date of our report.

The other covered entities except holding company have not granted any loans secured or
unsecured to companies, firms or other parties covered in the register maintained under
section 189 of the Companies Act 2013.

(iv) In our opinion and in the opinion of the other auditors and according to the information and
explanations given to us, there is an adequate internal control system commensurate with the
size of the covered entities and the nature of their business with regard to purchases of
inventory, fixed assets and with regard to the sale of goods and services.

Further, during the course of our audit and the other auditors audit, we have not come across
any instances of major weaknesses in such internal control system that require correction and
have so continued without correction.

(v) In our opinion and in the opinion of the other auditors and according to the information and
explanation given to us and the other auditors, the covered entities which have accepted public
deposits have complied with the provisions of section 73 to 76 and other applicable provisions of
the Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014 with regard to
the deposits accepted from the public. According to the information furnished to us, no Order
has been passed on the covered entities, which have accepted deposits from public, by the
Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal for non-compliance with the provisions of Sections 73 to 76 of the Companies
Act 2013.

(vi) We have broadly reviewed the books of account and records maintained by the Holding
Company, and two other subsidiaries (3F Oil Plam Agrotech Private Limited and Viaton Energy
Private Limited) pursuant to the Rules made by the Central Government for the maintenance of
Cost Records under section 148 of the Companies Act, 2013 and in our opinion and in the
opinion of the other auditors, prima facie, the prescribed accounts and records have been made
and maintained. We have not, however, made a detailed examination of the records with a view
to determine whether they are accurate or complete. In respect of other covered entities, the
requirements of Section 148(1) of the Companies Act, 2013 with regard to maintenance of cost
records do not apply.

Page 2 of 5
 (vii)(a) In our opinion and in the opinion of the other auditors and according to the information and
explanations given to us and the other auditors and on the basis of our examination of the
records of the covered entities, the covered entities are generally regular in depositing with
the appropriate authorities, the undisputed statutory dues including Provident Fund,
Employees’ State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of
Customs, duty of Excise, Value added tax, cess and other material statutory dues applicable
to them.

According to the information and explanations given to us, no undisputed amounts payable
in respect of Provident Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of
customs, duty of excise, Value added tax, cess and other material statutory dues were in
arrears as at 31st March 2015 for a period of more than six months from the date they
became payable.

(b) According to the information and explanations given to us, there were no amounts of Sales
Tax, Customs Duty, Cess, Income Tax, Wealth Tax, Service Tax that have been disputed by
the covered entities, and hence, were not remitted to the concerned authorities at the date
of the Balance Sheet under report, except as detailed hereunder:

Nature of the Amount in Period to which the Forum where the dispute
Name of the statute
dues Rupees amount relates is pending

Asst. Commissioner Sales

1,25,308 2003-04 tax, Berhampur, Orissa
Asst. Commissioner,
Sales tax, Berhampur,
32,963 2003-04 Orissa
Asst. Commissioner,
Commercial taxes,
49,564 2000-01 Berhampur
62,645 2010-11 Kerala State – Sales Tax
Sales-tax laws Sales tax Sales Tax appellate
9,08,437 2007-08 Tribunal-Mumbai
Sales Tax appellate
2,43,219 2008-09 Tribunal-Mumbai
Sales Tax appellate
15,14,850 2009-10 Tribunal-Mumbai
2005-06 To 2012-
Supreme court of India
18,70,84,584 13
Sales Tax appellate
3,45,70,445 2013-14 Tribunal-Kerala
Income Tax Act, 1961 Income tax 58,22,991 2011-12 Income tax officer
2006-07, 2008-09, Commissioner of Income
Income Tax Act, 1961 Income tax
15,48,521 2010-11 & 2011-12 Tax (Appeals)
Customs Act, 1962 Customs Duty 5,02,48,273 Different periods CESTAT
Central Excise Act, 1944 Excise duty 330,51,104 Different periods CESTAT
Service Tax law Service tax 40,072 Different periods CESTAT

Page 3 of 5
 (c) In our opinion and in the opinion of the other auditors, and according to the information and
explanations given to us, the amounts which were required to be transferred to the Investor
Education and Protection Fund in accordance with relevant to the provisions of the
Companies Act, 1956 and rules there under have been transferred to such fund by the
covered entities within time.

(viii) The Covered entities, other than Viaton Energy Private Limited, Chakranemi Infrastructure
Private Limited, Simhapuri Agro Products Private Limited and Kottu Oil Private Limited had no
accumulated losses at the end of the financial year, and they did not incur cash losses during the
financial year covered by audit and in the immediately preceding financial year.

The accumulated losses of the Subsidiaries, Viaton Energy Private Limited and Chakranemi
Infrastructure Private Limited are less than 50% of the net worth of the company as at the end of
the financial year and the company has incurred cash losses during the year under report and
during the immediately preceding financial year.

The accumulated losses of the Subsidiary, Simhapuri Agro Products private Limited and Kottu Oil
Private Limite are not less than 50% of the net worth of the company as at the end of the
financial year and the company has incurred cash losses during the year under report and it did
not incur cash loss during the immediately preceding financial year.

The accumulated losses of the Subsidiary, Kottu Oil Private Limited are not less than 50% of the
net worth of the company as at the end of the financial year and the company has incurred cash
losses during the year under report and during the immediately preceding financial year.

(ix) In our opinion and in the opinion of the other auditors, and according to the records of the
covered entities examined by us and other auditors, and the information and explanations given
to us, there were no defaults in repayment of dues to banks or financial institutions or
debenture holders at the date of the Balance Sheet.

(x) In our opinion and in the opinion of the other auditors, and according to the information and the
explanations given to us, the terms and conditions of guarantees given by the holding company
and a subsidiary company incorporated in India, for loans taken by others from banks or
financial institutions during the year under report, are not prima facie prejudicial to the interest
of the respective companies.

(xi) In our opinion and in the opinion of the other auditors and according to the information and
explanations given to us, the term loans taken by the covered entities have been applied for the
purposes for which they were raised, other than temporary deployment pending application.

(xii) During the course of our examination of the books and records of the covered entities, carried
out in accordance with the generally accepted audited practices in India, and according to the
information and explanations given to us, we have neither come across any instance of material

Page 4 of 5
 fraud on or by the covered entities, noticed or reported during the year, nor have we been
informed of any such case by the management.

For BRAHMAYYA & Co

Chartered Accountants
Firm’s Registration. No. 000513S

Sd/-
(T. V. Ramana)
Partner
(ICAI Membership. No. 200523)
Place: Vijayawada
Date: 03rd September 2015

Page 5 of 5
3F INDUSTRIES Ltd.
Notes Forming Part of Accounts

CONSOLIDATED ACCOUNTING POLICIES

1.1 GENERAL

a) The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these
financial statements to comply in all material respects with the accounting standards as prescribed under section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts)
Rules 2014 and the provisions of the Act (to the extent notified). The financial statements have been prepared under the historical cost convention on accrual basis.

b) Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in India requires management, where necessary, to make the
estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results may differ from the estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to
accounting estimates are recognised in the period in which the estimate is revised.

1.2 FIXED ASSETS :

Fixed Assets are capitalised at acquisition cost, net of Cenvat, less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of directly attributable cost of bringing the assets to
their working condition for the intended use. Financing costs incurred up to the date of commissioning of assets are capitalised. Revenue expenses incidental to new projects are capitalized.

1.3 BORROWING COSTS :

Borrowing costs incurred in connection with the funds borrowed for acquisition / erection of assets that necessarily take substantial period of time to get ready for intended use, are capitalized
as part of cost of such assets. All other borrowing costs are charged to revenue.

1.4. INVESTMETNS

Long Term Investments including (investment in subsidiary) are stated at cost and income thereon is accounted for on accrual. Provision towards decline in the value of long-term investments
is made only when such decline is other than temporary.

Current Investments are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investments.

1.5. INVENTORIES

Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in brining the inventories to their present location and Condition.

· Finished goods are valued at lower of cost or net realisable value.

· Raw-materials(under FIFO method), Stores, Spares and Packing material(under Weighted average method), Work –in- process, and Materials in transit are valued at cost except where
net realisable value of the finished goods they are used in is less than the cost of finished goods and in such an event, if the replacement cost of such materials etc., is less than their book
values, they are valued at replacement cost.

· By-products and scrap are valued at net realisable value.

· Machinery spares which can be used only in connection with an item of fixed assets and whose use is expected to be irregular are amortised over the life of the principal assets.
1.6. SALES AND OTHER EARNINGS

a) Revenue from sales is recognized when the property in the goods is transferred to the buyers along with the significant risks and rewards of ownership of such goods.

b) Consignment sales are recognized on confirmation from consignees

c) Sales are inclusive of Excise Duty, packing charges and Freight charges, wherever applicable, and net off returns, rebates and Sales Tax
d) Electricity generated by the power units of the company, sold to its other units is accounted at the tariff rates charged by the State Electricity Boards. Such earnings are adjusted to the
power charges.

e)       Other income –

i) Interest : Interest is recognised on time proportion basis taking into account the amount outstanding and the interest applicable

ii) Mutual Funds: Profit /Loss on sale of mutal funds are recongnised when the title to mutual funds ceases to exist.

iii) Dividend : Dividend income recognised when the right to receive paymen is established.

Revenue in respect of other incomes are recognised when there is a reasonable certainty as to its realisation.

1.7.INTER UNIT TRANSFERS :

The product of one unit used as raw materials, stores and spares and energy in another unit of the company is adjusted at market value.

1.8. EMPLOYEE BENEFITS

a) Short Term Employee Benefits :

Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

b) Post-Employment Benefits :

(i) Defined Contribution plans: The Company’s employees are covered under state governed provident fund scheme, Employee state insurance scheme and employee pension
scheme, which are in the nature of Defined Contribution plans. The contributions paid/payable under the schemes are recognized during the period in which the employee renders the related
service.

(ii) Defined Benefit plans:

The company’s liability of gratuity on retirement of its eligible employees is funded under a Defined Benefit plan with the Life Insurance corporation of India. The present value of the
obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method. The incremental expense thereon for each year is arrived at as
per actuarial valuation and is recognized and charged to the Profit and loss account in the year in which the employee has rendered service.
The fair value of the plan assets and the gross plan obligation, under the said plan, are recognized in each Balance Sheet on net basis.

Actuarial Gains/losses are charged to the Profit and loss account immediately in each year.

Contribution to Provident fund is made monthly, at a notified rate, to the Commissioner of Provident fund and debited to the Profit and Loss account on accrual. Contributions to Gratuity are
made periodically to the Trust duly approved by the Income Tax authorities and such contributions paid/payable are debited to Profit and Loss Account on accrual. Provision is made in the
accounts for liability towards un encashed leave wages of eligible employees, on the basis as if all such employees retire on the Balance Sheet date.

1.9. EXPENDITURE :
Revenue expenditure is charged to Profit & Loss Account and Capital expenditure is added to the cost of Fixed Assets in the year in which it is incurred.
1.10. DEPRECIATION :

Accounting Policies with respect to Depreciation of Fixed Assets

Asset Depreciation 3F Industries Limited 3F Oil Palm Agro Tech Pvt Ltd., Simhapuri Agro Products Viaton Energy Pvt Ltd., 3F Fuji Foods Pvt Ltd.,

Plant & Machinery SLM SLM SLM SLM SLM

Wind Mill SLM WDV SLM SLM SLM

Ships SLM WDV SLM SLM SLM

Others WDV WDV SLM SLM SLM

1.11. FOREIGN EXCHANGE TRANSACTIONS:

· Export sales are initially accounted at the exchange rate prevailing on the date of documentation/invoicing and the same is adjusted with the difference in the rate of exchange arising on
actual receipt of proceeds in foreign exchange

· Earnings in foreign currency other than export sales are accounted for at the exchange rate prevailing on the dates of documentation/invoicing and the same is adjusted with the
difference in the rate of exchange arising on actual receipt of proceeds in foreign exchange.

· Imports of material/capital equipments are initially accounted at the exchange rate prevailing on the date of booking of purchase and the same is adjusted with the difference in the rate
of exchange arising on actual payment of bills in foreign exchange.

· At each Balance Sheet date foreign currency monetary items are reported using the rate of exchange on that date. Foreign currency non-monetary items are reported using the
exchange rate at which they were initially recognized.

· In respect of forward exchange contracts in the nature of hedges

a) Premium or discount on the contract is amortized over the term of the contract,

b) Exchange differences on the contract are recognized as profit or loss in the period in which they arise.
1.12. ACCOUNTING FOR DERIVATIVES

The Company uses foreign exchange forward contracts and option contracts (derivatives) to mitigate its risk of changes in foreign currency exchange rates and does not use them for trading
or speculative purposes.

The premium or discount on foreign exchange forward contracts is amortized as income or expense over the life of the contract. The exchange difference is calculated and recorded in
accordance with AS-11 (revised). The exchange difference on such a forward exchange contract is calculated as the difference of the foreign currency amount of the contract translated at the
exchange rate at the reporting date, or the settlement date where the transaction is settled during the reporting period and the corresponding foreign currency amount translated at the later
of the date of inception of the forward exchange contract and the last reporting date. Such exchange differences are recognized in the statement of profit and loss in the reporting period in
which the exchange rates change. The changes in the fair value of foreign currency option contracts are recognised in the statement of profit and loss as they arise. Fair value of such option
contracts is determined based on the appropriate valuation techniques considering the terms of the contract.

Pursuant to ICAI Announcement “Accounting for Derivatives” on the early adoption of Accounting Standard AS-30 “Financial Instruments: Recognition and Measurement”, the Company
has adopted the Standard, to the extent that the adoption does not conflict with existing mandatory accounting standards and other authoritative pronouncements, Company law and other
regulatory requirements.

1.13. IMPAIRMENT OF ASSETS :

An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. An impairment loss is charged to the Profit and loss account in the year in which an asset is
identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

3F INDUSTRIES ltd.
Notes Forming Part of Accounts

1.14. EXPENDITURE DURING CONSTRUCTION PERIOD:

An identifiable revenue expenses including interest on term loans incurred in respect of various projects/expansions are allocated to capital cost of respective assets/capital work in
progress.

1.15. PROVISIONS/ CONTINGENT LIABILITIES AND ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow
of resources. Contingent liabilities are not recognised, but are disclosed in the notes on accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

1.16. TAXATION :

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax
laws prevailing in the respective tax jurisdictions where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the
statement of profit and loss.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each reporting date, the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case
may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually
certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain
or virtually certain, as the case may be, that sufficient future taxable income will be available

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the
same taxable entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognizes MAT credit available as an asset only to the extent that there is convincing
evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as
an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement
of profit and loss and shown as “MAT Credit Entitlement.” The Company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent the Company does not have
convincing evidence that it will pay normal tax during the specified period.
1.17. DIVIDENDS :

Provision is made in the Accounts for the Dividends payable by the Company as recommended by the Board of Directors, pending approval of the Shareholders at the Annual General Meeting.
Tax on distributable Profits is provided for in the year to which such distributable Profits relate.

1.18 EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the company’s Basic EPS is the attributable net profit or loss to the equity shareholders as per AS-20 “Earnings Per Share”. The number of shares
used in computing Basic EPS is the weighted average number of shares outstanding during the period. The Diluted EPS is calculated on the same basis as Basic EPS, after adjusting for the
effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive.

1.19 GOVERNMENT GRANTS

(i) Grants from government are recognised when there is reasonable assurance that the grant will be received and all attaching conditions will complied with.

(ii) Government grants relating to Specific fixed assets is shown as deduction from the gross value of the asset concerned in arriving at its book value.

(iii) Grants related to revenue items are presented under general heading such as “Other Income” or they are deducted in reporting the related expense.
1.20 Leases

Assets taken on lease where the company acquires substantially the entire risks and rewards incidental to ownership are classified as finance leases. The amount recorded is the lesser of the
present value of minimum lease rental and other incidental expenses during the lease term or the fair value of the assets taken on lease. The rental obligations, net of interest charges, are
reflected as secured loans. Leases that do not transfer substantially all the risks and rewards of ownership are classified as operating leases and recorded as expense as and when the payments
are made over the lease term.

1,21 Segment Reporting

Identification of segments:

The Company’s operating businesses are organised and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers

different products and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operate.

Inter segment Transfers:

The Company accounts for intersegment sales/ transfers as if the sales or transfers were to third parties at current market prices.

Allocation of common costs:

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

Unallocated Items:

Includes income tax, deferred tax charge or credit and the related tax liabilities and tax assets. Also includes interest expense or interest income and related interest generating assets, interest bearing liabilities,
which are not allocated to any business segment.

Segment Policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.
3F INDUSTRIES LIMITED

CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH 2015

(Rs.)
st
PARTICULARS Notes As at 31 March2015

I.EQUITY AND LIABILITIES

(1) Shareholders' Funds
Share Capital 2 104566480
Reserves and Surplus 3.1 1914916926
Minority Interest 3.2 44599650
2064083056
(2)Non-Current Liabilities
Long-term Borrowings 4 1493057053
Deferred Tax Liability (Net) 5 522000987
Other Long-term liabilities 6 151015947
Long-term Provisions 7.1 205864594
2371938581
(3)Current Liabilities
Short-term Borrowings 8 1635274927
Trade Payables 9.1 3389618246
Other Current Liabilities 9.2 805825936
Short term Provisions 7.2 117906748
5948625858

TOTAL 10384647495
II. ASSESTS
(1) Non-current Assets
Fixed Assets 10
Tangible Assets 10.1 4127753291
Intangible Assets 10.2 70958001
Capital Work in Progress 10.3 444570837
4643282129

Non-current Investments 11 125114354

Long term Loans and Advances 12.1 541738035
Other Non Current Assets 13.2 51725
666904114
2)Current Assets
a)Current Investments 11.1 4971354
a) Inventories 14 3184964810
b) Trade Receivables 13.1 880396621
c) Cash and Cash Equivalents 15 221124533
d)Short term Loans and Advances 12.2 718948710
e) Other Current Assets 13.2 64055224
5074461251
TOTAL 10384647496

Notes Forming part of the consolidated Financial Statements 1

For and on behalf of the Board As per report of even date
For BRAHMAYYA & Company
Chartered Accountants
Sd/- Sd/- (Firm Regn. No. 000513S)
S.B.Goenka O.P.Goenka
Director Director Sd/-
T.V. Ramana
Partner
Sd/- Sd/- Membership No: 200523
S.Rangarajan R.V.S.S.S.Prasada Rao
VP- Finance & Company Secretary Chief Financial Officer

Chennai Vijayawada
rd
Date : 03 September 2015 Date : 03rd September 2015
3F INDUSTRIES LIMITED
CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH2015
(Rs.)

PARTICULARS Notes 2014-2015

INCOME
Revenue From Operations 16
Group Companies 16279220441
Less: Excise Duty 276023148

Joint Venture 1514748

Less: Excise Duty -
Revenue from Operations (Net) 16004712041

Other Income 17
Group Companies 199066414
Joint Venture 3760434
202826848
Total Revenue 16207538889

Expenses
Cost of Raw Materials Consumed 18 11493948405
Purchase of Traded Goods 1372053624
(Increase)/Decrease in inventories of Finished goods, Work in Process and Traded Goods 19 (33045002)
Employee Benefits Expenses 20 434671172
Depreciation and Amortization Expense 21 187017550
Finance Cost 22 350923762
Other Expenses 23 2036127517
Total Expenses 15841697027
Profit /(Loss) Before Tax 365841862

ADD: Income Tax Excess Provision credited Back 6940579

Less:
Current Tax 93877811
Deferred Tax 91709172
ADD:
MAT Credit Entitlement C/fd. (34543512)

Total Tax Expenses 144102892

Profit/(Loss) After Tax 221738970

Less: Minority Interest -7621462

Profit/(Loss) after Minority Interest 229360432
Profit Attributable to Owners of Parent Company -8018795

For and on behalf of the Board As per our Report of Even date
For BRAHMAYYA & Co.,
Chartered Accountants
Sd/- Sd/- (Firm Regn. No. 000513S)
S.B.Goenka O.P.Goenka
Director Director Sd/-
T.V. Ramana
Partner
Sd/- Sd/- Membership No: 200523
S.Rangarajan R.V.S.S.S.Prasada Rao
VP- Finance & Company Secretary Chief Financial Officer

Chennai Vijayawada
rd rd
Date : 03 September 2015 Date : 03 September 2015
3F INDUSTRIES LIMITED
CONSOLIDATION CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2015
PARTICULARS AMOUTN IN RS.
Cash flow from operating activities
Profit before tax from continuing operations 365841864
Adjustments for
Depreciation/amortization on continuing operation 187017550
[profit] on sale of fixed assets (12120)
Loss on sale of fixed assets 645558
Net gain on sale of current investments (73164)
Interest expense 317298920
Interest income (61046868)
Dividend income (69287237)
Provision For Investments 34930990
Net (Gain )/ Loss on Foreign currency translations & transactions (13015609)
Operating profit before working capital changes 762299885
Movements in working capital:
Increase/[decrease] in trade payables (191082742)
Increase/[decrease] in long-term provisions 961073
Increase/[decrease] in short-term provisions 51172987
Increase/[decrease] in other current liabilities 20382245
Increase/[decrease] in other long-term liabilities 604963
Decrease/[increase] in trade receivables (141916490)
Decrease/[increase] in inventories (43085018)
Decrease/[increase] in long-term loans and advances (157032923)
Decrease/[increase] in short-term loans and advances 56744307
Decrease/[increase] in other current assets (24704157)
Cash generated from/[used in] operations 334344129
Direct taxes paid [net of refunds] 74726643
Net cash flow from/[used in] operating activities (A) 259617485
Cash flows from investing activities
Purchase of fixed assets, including intangible assets, CWIP and (216662260)
capital advances (404569033)
Proceeds from sale of fixed assets 3206772
Proceeds from current Investments 194383202
Purchase of non-current investments (54043900)
Purchase of current investments (179462218)
Interest received 59129418
Dividends received from current investments 69287237
(Increase)/Decrease in Capital work in progress (92224605)
Net cash flow from/[used in] investing activities (B) -620955386
Proceeds from long term borrowings (86347848)
Repayment of long term borrowings 26126381
Proceeds from short term borrowings 549308709
Interest paid (321736776)
Dividends Paid (69832453)
Foreign Exchange Fluctuations 16725995
Proceeds from Increase in Share Capital (including Premium) 153990375
Net cash flow from/[used in] in financing activities [C] 268234384
Net increase/[decrease] in cash and cash equivalents (A+B+C) -93103517
Cash and cash equivalents at the beginning of the year 314228050
Cash and cash equivalents at the end of the year 221124533
3F INDUSTRIES LIMITED

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS

1.1 Basis of preparation

The 3F Industries Limited (3FIL), the parent company has prepared the group consolidated financial statements by
consolidating its accounts of those „5‟ domestic subsidiaries and one joint venture company Viz.,

1. 3F Oil Palm Agro Tech Pvt Ltd.,

2. Viaton Energy Pvt Ltd.,
3. Simhapuri Agro Oil Pvt Ltd.,
4. Kottu Oils Pvt ltd.,
5. Chakranemi Infrastructure Pvt Ltd.,
And Joint Venture Company “3F Fuji Foods Pvt Ltd.,”

In accordance with Accounting Statndard-21 “Consolidated Financial Statements” prescribed by companies

(Accounting Standards) Rules, 2006.

Financial Statements of the subsidiaries used in the consolidation are drawn up to the same reporting date as
st
that of the parent company i.e., year ended 31 March2015.

1.2 Principles of consolidation

The consolidated financial statements of the group are prepared according to the accounting policies as stated in
the “Statements on Accounting Policies” in the respective group companies and published separately. The
accounting policies of the group companies are uniform except for the method of charging depreciation in
respect of some of the items like assets. It is not practicable to use uniform accounting policies in preparing
consolidated financial statements and in the opinion of the management, the effect of such differences in the
accounting policies is not material.

1.3 Minority Interest

Subsidiary Companies % of Voting Power held

a. Viaton Energy Pvt Ltd., 49.00%

b. Chakranemi Infra Structure Pvt Ltd., 00.01%
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE-2

SHARE CAPITAL TOTAL

Authorised Shares: 180000000

1,80,00,000 (31st March 2014: 1,30,00,000 )'Equity shares of Rs.10 /- each
180000000

Issued Shares
1,04,56,725 (31st March2014: 9,656,725)'Equity shares of Rs.10 /- each 104567250

104567250

Subscribed and fully paid up shares

1,04,56,648 (31st March 2014; 96,56,725)'Equity shares of Rs.10 /- each fully paid up 104566480
104566480

As At 31st
a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting Period MARCH2015
No. Rs.
Equity Shares
At the beginning of the period 9656725 96567250
Add: Fresh Issue during the year-Rights Issue 799923 7999230
Less: Buy Back of Shares during the year - -

Outstanding at the end of the period 10456648 104566480

b. Shareholders holding more than 5% shares % of Holding No. Shares

a)Shri . Sushil Goenka 11.52% 1204280

b)Shri. Sita Ram Goenka 9.71% 1015133
c)Shri Om Prakash Goenka 8.00% 836964
d)Shri .Shiv Bhagwan Goenka 6.88% 719184
e)Best Investments pte Ltd., 5.90% 616725

42.00% 4392286

1. During the year 2013-14, the Company had bought back 9,60,000 shares @Rs.10/- each at a premium of Rs. 115/- each

Right Issue:

2.The Company has issued Nos.8,00,000 equity shares of Rs.10/- each at a premium of Rs.115/-per share to the existing members of
the company in the proportion of 1 equity share for every 12 equity shares held in the company.

3. Authorised capital of the company has been increased during the year on account of addition of authorised capital of
amalgamated company " Asia Pacific Commodities Ltd.,)
 NOTE-3.1

As at 31st March2015
RESERVES AND SURPLUS GROUP JOINT
TOTAL
COMPANIES VENTURE
Capital Reserves
Capital Redemption Reserve
Opening Balance 34824903 - 34824903
Add: Amount Transferred during the year - - -

Securities Premium
Opening Balance
Add: Issued during the year -Right Issue 91991145 - 91991145

Debenture Redemption Reserve 10000000 10000000

General Reserve
Balance as per the last Financial Statements 166267550
ADD: General Reserve of APCL on account of Scheme of
5067000
Amalgamation
Less: Amount withdrawn during the year ** (11599961) 159734589 159734589

Add : Amount transferred from

Surplus Balance in the Statement of Profit And Loss 23000000 23000000

Stock Reserve on Unrealised Profits 1456359 1456359

Closing Balance 184190948 184190948

Surplus/(Deficit) In The Statement of Profit And Loss

Balance as per the last Financial Statements 1309209498 (1275845) 1307933653
ADD: Balance in surplus account of APCL on account of Scheme of
130112852 130112852
Amalgamation

Profit for the year 243175711 - 243175711

Profit /(Loss) attributable to Owners of parent Company (8018795) (8018795)
Profit /(Loss) from Joint Venture (5796482) (5796482)

Less : Appropriations
Proposed Final Equity Dividend 26141620 26141620
Interim Dividend 24141813 24141813
Tax on Distributed Profits 5321820 5321820
Transfer to General Reserve 23000000 23000000
Stock Reserves on Unrealised Profits 1456359 1456359
Add: Excess provision of Tax on Distributed profits of earlier years
6564603 6564603
credited back
Total Appropriations 73497009 - 73497009
Net Surplus In Statement Of Profit And Loss 1600982257 (7072327) 1593909930
Total Reserves And Surplus Taken To Balance Sheet 1921989253 (7072327) 1914916926

** Transitional Adjustment of Rs. 11599961 (Net of Deferred Tax of Rs.6139152 ) on application of Schedule II of the Companies
Act2013, being the Depreciation on those Assets whose useful life is Nil.

NOTE-3.2

MINORITY INTEREST As at 31st March2015

Share Capital
Vaiton Energy Pvt Ltd., consisting of No. Shares 6370000 of Rs. 10/- each 63700000
Chakranemi Infrastructure Pvt Ltd., consisting of No.Shares 4900 of Rs. 10/- each 49000

Profit & Loss Account (19149350)

TOTAL 44599650
 NOTE-4

As at 31st March2015

LONG TERM BORROWINGS: Non-Current Current Total

Group Joint Group Joint
Non Current Current
Companies Venture Companies Venture

Term Loans
Indian rupee loan from banks (secured ) 868465910 119986564 113625316 988452474 113625316

Foreign Currency loan from banks (

101580000 231139132 101580000 231139132
Secured )

Other Term Loans 6564909 4204285 6564909 4204285

: Vehicle Loans
976610820 119986564 348968733 - 1096597384 348968733

Others:
Deferred sales tax loan (Unsecured) 43780859 14089815 43780859 14089815
Deferred Sales Tax - I
(Repayable with effect from Financial Year 2014 - 15)
Deferred Sales Tax - I (APCL)
75527700 - 75527700 -
# (Refer Note No.32)
(Repayable with effect from Financial Year 2019 - 20)
Deferred Sales Tax - II 134510110 - 134510110 -
(Repayable with effect from Financial Year 2022 - 23)

Deposits (unsecured)
Public 142641000 70521000 142641000 70521000
Total Amount 396459669 - 84610815 - 396459669 84610815
The above amount includes 1373070489 119986564 433579548 - 1493057053 433579548
Secured borrowings 976610820 119986564 348968733 - 1096597384 348968733
Unsecured borrowings 396459669 - 84610815 - 396459669 84610815
Amount disclosed under the head
"Other current liabilities"(Note 9.2 ) 433579548 433579548
Net Amount 1373070489 119986564 - - 1493057053 -

Term Loans From Banks Comprises of :

Name of the Bank/Institution i)SCB ii)SCB iii) AXIS BANK

Name of the Company 3FIL 3FIL 3FIL
Project Krishna Patnam Wind Mill Krishna Patnam
a) Loan Availed 660270000 149424000 365000000
b) No. of Instalments 13 16 72
c) Instalments Commencing From 12-Sep-13 04-Jan-12 24-Feb-15
d) Rate of Interest per annum 10.25% 9.65% 12.00%
e) Instalment Amount per Quarter/Month 50790000 9339000 6250000

A) Term Loans from Standard Chartered Bank ( i ) are secured by first and exclusive hypothecation charge over all the identified
movable fixed assets consisting of plant & Machinery situated at Krishnapatnam , Andhra Pradesh .

B) Term Loan from Standard Chartered Bank ( ii ) are secured by exclusive charges of asset purchased and further guaranteed by
some of the directors of the company

C) Term Loan from Axis Bank (iii ) is secured by exclusive first charge on all movable fixed assets created out of term loan and
Paripassu first charge on immovable fixed assets of the Krishnapatnam Project ie., Land and Building at Krishnapatnam , along with
Standard Chartered Bank . ( Loan i)
 A) B) C) D)
Name of the Loan 3FOIL PALM VIATON ENERGY SIMHAPURI 3F FUJI

Vehicle Loan Outstanding as on 31/03/2015 7111858 - - -

Term Loans Outstanding as on 31/03/2015 39225316 530690206 49000000 266636808

A)
Vehicle loans of 3F Oil Palm Agro tech secured by hypothecation of vehicles and are repayable over a periods as given below

Year Amount Repayable

2015-16 1596547
2016-17 1422268
2017-18 1451645
2018-19 1371037
2019-20 1270361
Rate of Interest as at the year end on vehicle loans ranges between 11.75% and 12%

Term Loans of 3F Oil Palm Agro Tech Pvt Ltd., Secured by Exclusive charge on the entire fixed assets of the company ( both Present
& Future) other than vehicles, including mortgage on the following properties

Equitable Mortgage on industrial land in R.S.No.305&192 , admeasuring AC11.24 cents at yernagudem village, Kovvuru
Taluq, Deverapalli Mandal, West Godavari District with buildings & the Plant and Machinery thereon

Equitable Mortgage on industrial land admeasuring AC 7.30 cents inSy No.182/1,182/2 situated at yernagudem village,
Kovvuru Taluq, Deverapalli Mandal, West Godavari District.

Equitable Mortage of converted industrial land admeasuring AC 5.14 guntas inSy No.14/2,14/3 and non-converted
(Agricultural land) admeasuring Ac.4.16 guntas in Sy.no. 15/3 at Rampura village, Musalapura Panchayat,Karnataka.

Equitable Mortage on Agricultural land admeasuring AC 6.25 gunts inSy No.15/5,47/3,47/2, at Rampura Village,
Musalapura Panchayat,Karnataka.

Collateral
Extension of Exclusive charge over entire current assets of the company ( both present & Future)

Rate of interest as at the year end on term loans is 12.65% p.a.

B)

Term loans of Vaiton Energy rate of interest as at the year end on from Axis Bank Ltd., Dubai is @5.0445%

D)

The term loan of "3F Fuji Foods Pvt Ltd., carries an interest rate of LIBOR+70 basis points per annum. The term loan is repayable jin
six equal semi- annual instalments for the period from 20th August2016 to 20th February2019.

The term loan is secured by way of paripassu first charge on the entire fixed assets and parrissu second charge on entire current
assets of the company shared by Fuji Oil Asia Pte Ltd., and Axis Bank Limited ., in the ratio of 55:45
 NOTE-5

As at 31st March2015
Deferred Tax Liability (Net)
Group Companies Joint Venture Total

Deferred Tax Liability

Fixed assets: Difference between Tax depreciation and 527384284 527384284
depreciation/amortisation charged for the financial reporting

Others
Gross deferred tax liability 527384284 527384284

Deferred tax asset

Impact of expenditure charged to the statement of profit and
loss in the current year but allowed for tax purposes on
payment basis 5334825 48472 5383297
Provision for doubtful debts and advances - - -
Others - - -
Gross Deferred tax asset 5334825 48472 5383297
Net Deferred Tax Liability/(Assets) 522049459 (48472) 522000987

NOTE-6

As at 31st March2015
OTHER LONG TERM LIABILITIES:
GROUP COMPANIES JOINT VENTURE TOTAL
Trade payables - - -
Total
Others
Trade Deposits 22258872 22258872
Unsecured Loans 128757075 128757075

Total 151015947 - 151015947

NOTE-7.1 NOTE-7.2

As at 31st March2015
PROVISIONS Long Term Short Term Total
Group
Joint Venture Group Companies Joint Venture Long Term Short term
Companies

Provision for employee benefits:

Provision for Gratuity 14707726 156868 2007669 562263 14864594 2569932

Provision for leave benefits - - 6428124 - - 6428124

14707726 156868 8435793 562263 14864594 8998056

Other Provisions:

Provision for Income tax 191000000 - 77445252 - 191000000 77445252

Proposed equity dividend - - 26141620 - - 26141620
Provision for Dividend Tax - - 5321820 - - 5321820
191000000 - 108908692 - 191000000 108908692
205707726 156868 117344485 562263 205864594 117906748
 NOTE-8

As at 31st March2015
SHORT TERM BORROWINGS
Group Companies Joint Venture Total

Cash credit from Banks (Secured) @ 280197301 280197301

Packing Credit From Banks ( Secured ) @ 437135354 437135354

Foreign Bills Payable Against Buyer's Credit (Secured)@ 770492769 770492769

Unsecured Loans
Loans from Related Parties {Refer Note No.34(16)} 44582504 44582504

Deposits
: from Public 102867000 102867000
1635274927 - 1635274927
The above amount includes
Secured borrowings 1487825424 - 1487825424
Unsecured borrowings 147449504 - 147449504

NOTE 9

As at 31st March2015
OTHER CURRENT LIABILITIES
Group Companies Joint Venture Total

9.1 Trade payables 3385079188 4539058 3389618246

9.2 Other Liabilities:

Current maturities of long Term Borrowings (Refer Note No. 4.2 ) 433579548 - 433579548
Interest accrued and due on borrowings 20800398 601511 21401909
Interest accrued but not due on borrowings 36292931 136809 36429740
Advance from customers 57484805 - 57484805
Advance for Expenses 36396115 - 36396115
Accrued Salaries and Benefits 48761833 459437 49221270
Staff Security Deposits 175000 - 175000
Statutory Dues 40556977 1333053 41890030
Unclaimed Dividend 1542675 - 1542675
Unclaimed Matured Deposits 10691000 - 10691000
Forward Premium Payable 15005608 - 15005608
Others 82036798 19971439 102008237
783323688 22502249 805825936
4168402876 27041307 4195444183
TANGIBLE ASSETS - CONSOLIDATED
NOTE-10.1

GROSS BLOCK DEPRECIATION NET BLOCK

ADDITIONS ACCUMULATED AMOUNT

ADDTIONS DEDUCTION UPTO 31st UPTO 31st ON AS AT
DESCRIPTION UPTO 31st ON DEPRECIATION FOR CHARGE UPTO 31st
FOR S FOR MARCH MARCH DEDUCT 31st MARCH
MARCH 2014 AMALGAMATI FROM THE YEAR D TO MARCH 2015
THE YEAR THE YEAR 2015 2014 IONS 2015
ON OF APCL MERGING(APCL) RESERVE

LAND
Group Companies 304544295 11710787 6800948 - 323056030 - - - - - - 323056030
Joint Venture 13695570 4169427 - - 17864997 - - - - - - 17864997

BUILDINGS- FACTORY
Group Companies 391822044 10218527 18164553 - 420205124 76584581 11465531 20300473 - 5503 108356087 311849036
Joint Venture - 218961 - - 218961 - - 40767 - - 40767 178195

BUILDINGS- NON
FACTORY
Group Companies 149511105 3086946 10036435 - 162634486 31475470 3626605 14768381 - 5016729 54887185 107747301

PLANT & MACHINERY

Group Companies 3939203045 180795582 281607114 8052184 4393553556 800162544 141327750 126774763 4050822 10882008 1075096244 3318457312

COMPUTERS
Group Companies 22392846 3213325 486325 - 26092496 17602440 448082 3791293 - 596312 22438127 3654369
Joint Venture - 363071 - - 363071 - - 82640 - - 82640 280431

OFFICE EQUIPMENTS
Group Companies 15807031 1232656 599092 - 17638779 9488542 312975 2510522 - 1459420 13771459 3867320
Joint Venture - 301044 - - 301044 - - 24785 - - 24785 276259

FURNITURE & FIXTURES

Group Companies 31637730 2331518 1567047 - 35536294 14978863 1026241 7008327 - 1697189 24710621 10825674
Joint Venture - 260158 - - 260158 - - 71753 - - 71753 188405

VEHICLES
Group Companies 78367577 10208153 17415 1881313 86711832 48120308 17415 10455282 1558348 169210 57203867 29507966

SHIPS
Group Companies 4333165 - - - 4333165 4333164 - - - - 4333164 1
TOTAL 4951314407 228110155 319278929 9933497 5488769994 1002745911 158224600 185828985 5609170 19826371 1361016698 4127753296

Group Companies 4937618837 222797494 319278929 9933497 5469761763 1002745911 158224600 185609041 5609170 19826371 1360796753 4108965009
Joint Venture 13695570 5312662 - - 19008232 - - 219945 - - 219945 18788287
INTANGIBLE ASSETS-CONSOLIDATED NOTE - 10.2

GROSS BLOCK DEPRECIATION

NET BLOCK
ADDTIONS DEDUCTIONS AMOUNT UPTO 31st
DESCRIPTION UPTO 31st MARCH UPTO 31st UPTO 31st FOR AS AT 31ST
FOR THE FOR CHARGED MARCH
2014 MARCH 2015 MARCH 2014 THE YEAR MARCH 2015
YEAR THE YEAR TO RESERVE 2015

GOOD WILL
Parent 5224903 - - 5224903 3134943 1044981 - 4179924 1044979
Group Companies 69792110 - - - - - - - 69792110

COMPUTER SOFTWARES
Group Companies 1069156 - - 1069156 807445 141977 4641 954063 115093
Joint Venture - 7425 - 7425 - 1607 - 1607 5818

TOTAL 76086169 7425 - 6301484 3942388 1188565 4641 5135594 70958000

Group Companies 76086169 - - 6294059 3942388 1186958 4641 5133987 70952182

Joint Venture - 7425 - 7425 - 1607 - 1607 5818

CAPITAL WORK IN PROGRESS CONSOLIDATED NOTE 10.3

NAME OF THE COMPANY Group Companies Joint Venture Total

3F INDUSTIRES LIMITED 80876715 80876715

3F OIL PALM 31006095 31006095
VAITON ENERGY 3086378 3086378
SIMHAPURI AGRO 81174409 81174409
CHAKRANEMI 2768569 2768569
3F FUJI FOODS 245658672 245658672
198912166 245658672 444570837
 NOTE-11

As at 31st March2015
NON-CURRENT INVESTEMENTS
Group Companies Joint Venture Total

(a) Trade - Unquoted

Investments in Equity Instruments of
Subsidiary Companies :- 122290254 - 122290254
Joint Ventures - - -

Total (a) 122290254 - 122290254

(b) (i) Non - Trade Quoted

Investments in Mutual Funds :- 2570600 - 2570600

Total (b)(i) 2570600 - 2570600

(b) (ii) Non Trade - Unquoted

Investments in Government or trust securities :-
i) National Saving Certificates 253500 - 253500

Total (b)(ii) 253500 - 253500

Total (b) 2824100 - 2824100

TOTAL (a+b) 125114354 - 125114354

NOTE-11.1

As at 31st March2015
CURRENT INVESTMETNS
Group Companies Joint Venture Total

Other Investments -Non Quoted

Investment in Brila Sunlife Cash Plus - 4971354 4971354

Less: Provision for diminution in value of investments - - -

Total - 4971354 4971354

Aggregate amount of : quoted investments

: market value - - -

Aggregate provision for diminution in value of investments - - -

 NOTE 12.1 NOTE 12.2 NOTE 12

As at 31st March2015

LOANS AND ADVANCES Non-Current Current TOTAL

Group Joint Group Joint Non-
Current
Companies Venture Companies Venture Current

Capital Advances
Secured, considered good
Unsecured, considered good 64862272 7705312 - - 72567584 -
(A) 64862272 7705312 - - 72567584 -

Security Deposit
Secured, considered good
Unsecured, considered good 61359395 901013 27245 - 62260407 27245
Doubtful -
61359395 901013 27245 - 62260407 27245

Provision for doubtful security deposit - - - - - -

(B) 61359395 901013 27245 - 62260407 27245

Loans and advances to related Parties

Unsecured, considered good (Refer Note No : ) - 156445916 - 156445916

Loans and advances

Inter corporate Deposits
Unsecured, considered good 25000000 - 25000000

(C) 181445915.8 - 181445916

Advances recoverable in cash or Kind

Secured, considered good
Unsecured, considered good 2417385 - 71826228 112065 2417385 71938293
Doubtful - - - - - -
2417385 - 71826228 112065 2417385 71938293
Provision for doubtful advances - - - - - -
(D) 2417385 - 71826228 112065 2417385 71938293

Other Loans and Advances

Advance payment of Direct Taxes 178497401 58206747 - 178497401 58206747
Income Tax deducted at source 15367180 5592369 - 15367180 5592369
MAT Credit Entitlement 4783809 130400160 - 4783809 130400160
Claims Receivables - 3721052 - - 3721052
Prepaid expenses - 15684408 59643 - 15744051
Balances with statutory/ 'Government authorities 205844269 229225927 - 205844269 229225927
Income Tax Refund Receivable - 5773491 - - 5773491
Income Tax Paid Under protest - 8255193 - - 8255193
Dividend Tax Refund Receivable - 8606415 - - 8606415
Advance payment of Fringe Benefit Tax - 11852 - - 11852

(E) 404492659 - 465477614 59643 404492659 465537257

Total [A+B+C+D+E] 533131710 8606325 718777003 171707 541738035 718948710
 NOTE-13.1

As at 31st March2015

TRADE RECEIVABLES Non-Current Current TOTAL

Group Joint Group Joint Non-
Current
Companies Venture Companies Venture Current

Secured, considered good

Unsecured, considered good
Less than 6 Months from the due date for
- - 757349101 - - 757349101
Payment:
More than 6 Months from the due date for
- - 123047520 - - 123047520
Payment:
Doubtful - - - - - -
- - 880396621 - - 880396621

Provision for doubtful receivables - - - - - -

- - - - - -
Total - - 880396621 - - 880396621

NOTE -13.2

As at 31st March2015

OTHER ASSETS Non-Current Current TOTAL

Group Joint Group Joint
Non-Current Current
Companies Venture Companies Venture

Non-current bank balances - - - - - -

(A) - - - - - -

Unamortized expenditure - - - - - -

(B) - - - - - -
Others
Interest accrued on fixed deposits - - 5044540 - - 5044540
Interest accrued on Others - - 15636850 - - 15636850
Interest accrued on Loans to Subsidiary
- - 16505555 - - 16505555
Companies
Deferred Forward Premium - - 10511287 - - 10511287
Prepaid Expenses 51725 16356992 - 51725 16356992
(C) 51725 - 64055224 - 51725 64055224
Total [A+B+C] 51725 - 64055224 - 51725 64055224

NOTE-14

As at 31st March2015
INVENTORIES (VALUED AT LOWER OF COST AND NET REALIZABLE VALUE)
Group Companies Joint Venture Total

Raw materials 1791638594 1791638594

Work-in-progress 564593510 564593510

: At Cost

Finished goods 539260239 539260238

: At Cost 136823531 136823530
: At Market Value
Stock in Trade 6264565 4524774 10789338

Stores and spares at Cost 141859598 141859598

Total 3180440036 4524774 3184964810

 NOTE-15

As at 31st March2015

CASH AND CASH EQUIVALENTS Non-Current Current TOTAL

Group Joint Group Joint Non-
Current
Companies Venture Companies Venture Current
Cash and Cash Equivalents :
Balances with Banks:
On current accounts - 97079476 659577 - 97739053
Deposits with original maturity of less than 3 months
Other Bank Balances :
Earmarked Balances with Banks
Unclaimed Dividend
Margin Money Deposits on FD's
Deposits with original maturity more than three
months but less than 12 Months
Cash Credit ( Debit Balances ) 6763264 - - 6763264
Packing Credit from Banks(Debit Balances)
Cheques/drafts on hand
Cash on hand 5162698 10533 - 5173231
Others (VKGUY Licenses) 2575354 - 2575354
111580792 670111 - 112250903
Other Bank Balances :
Deposits with original maturity for more than 12 months
Earmarked Balances with Banks
Unclaimed Dividend 1555007 - 1555007
Margin Money Deposits on FD's 1650000 - 1650000
For more than 3 months but less than 12 months - -
Margin money deposit 105668623 - 105668623
- - 108873630 - - 108873630
Total - - 220454422 670111 - 221124533
 NOTE-16

This Year
REVENUE FROM OPERATIONS Group Joint
Total
Companies Venture

Sale of products:
Finished goods 14591208667 1514748 14592723415
Traded goods 1555068739 - 1555068739

Other operating revenue 16146277406 1514748 16147792154

Incentives (Export) 14679778 - 14679778

Incentives (Sales Tax) 113958810 - 113958810
Insurance Claims Received 4304447 - 4304447
132943035 132943035

Revenue from operations (gross) 16279220441 1514748 16280735189

Less: Excise Duty 276023148 - 276023148
Revenue from operations (net) 16003197293 1514748 16004712041

NOTE-17

This Year
OTHER INCOME
Group Companies Joint Venture Total
Interest Income on

Bank deposits 10005399 1659922 11665321

Others 34640551 - 34640551
Dividend income on
Current Investments 3566302 2090385 5656687
Non - Current Investments (from Subsidiaries 3F Ghana and 3F Oil Palm) 63630550 - 63630550
Rent received 357000 - 357000
Commission Income 7429 7429
Processing Charges Received 7529208 - 7529208
Other non-operating income # 79329975 10128 79340103
199066414 3760434 202826848

This Year
# OTHER NON-OPERATING INCOME INCLUDES :
Group Companies Joint Venture Total

Sale/Purchase Commitments & Settlement s (Net) 2972551 - 2972551

Forex Fluctuation Gain & Loss (Net) 16725995 10128 16736123
Unclaimed Balance Credited Back 264144 - 264144
Insurance Claims Received 7000151 - 7000151
Storage and Handling 4104000 - 4104000
Income From Agriculture (Net) 268260 - 268260
Other Service Charges Received 24711742 - 24711742
Misc. Scrap Receipts 22598982 - 22598982
Net gain on Sale of Assets 85284 - 85284
Prior Period Income 598866 - 598866
Total 79329975 10128 79340103
 NOTE-18

This Year
COST OF RAW MATERIALS CONSUMED
Group Companies Joint Venture Total

Inventory at the beginning of the year 1805821779 - 1805821779

Add: Opening Inventory of APCL on account of Scheme of Amalgamation 5878973 - 5878973
Add: Purchases 11839225982 - 11839225982
13650926735 - 13650926735
Less: Transfer to Traded Goods 372443828 - 372443828
Less: Inventory at the end of the year 1784534502 - 1784534502
Cost of Raw Material Consumed 11493948405 - 11493948405

PURCHASE OF TRADED GOODS Group Companies Joint Venture Total

Traded Goods Purchases 1366011747 6041877 1372053624

NOTE-19

This Year
(INCREASE)/DECREASE INVENTORY
Group Companies Joint Venture Total

[Increase]/ Decrease in Inventories of Finished goods, (28520228) (4524774) (33045002)

Work in Progress and Traded goods

NOTE-20

This Year
EMPLOYEE BENEFIT EXPENSES
Group Companies Joint Venture Total

Salaries, Wages and Bonus 275408003 296543 275704546

Contribution to Provident and other fund 21092467 - 21092467
Gratuity expense 3967044 - 3967044
Staff welfare expenses 133835622 71493 133907115

Total 434303136 368036 434671172

NOTE-21

This Year
DEPRECIATION AND AMORTIZATION EXPENSES
Group Companies Joint Venture Total

Depreciation on Tangible assets 185609041 219945 185828986

Amortization of Intangible Assets 1186957 1607 1188564
Total 186795998 221552 187017550

NOTE-22

This Year
FINANCE COST
Group Companies Joint Venture Total

Interest 292528863 76744 292605607

Other Borrowing Costs 58318155 - 58318155
Total 350847018 76744 350923762
 NOTE-23

This Year
OTHER EXPENSES
Group Companies Joint Venture Total

Consumption of stores and spares 428911166 - 428911166

Power and fuel 611212332 18824.85 611231157
Rent 45410987 825215 46236202
Repairs and maintenance
Plant and Machinery 69612376 - 69612376
Buildings 5869636 - 5869636
Others 6700127 77018 6777145
Insurance 18567851 168706 18736557
Rates and Taxes 26010847 126479 26137326
Increase/ (Decrease) of Excise Duty on Inventory 964782 - 964782
Periodicals & Subscriptions 969790 - 969790
Processing Charges 11279631 - 11279631
Maintenance Expenses 28930100 - 28930100
Vehicles Maintenance 32843924 - 32843924
Advertising and sales promotion 77025782 44798 77070580
Freight & Handling Expenses 388857582 174036 389031617
Discount Allowed 24057140 - 24057140
Sales Commission 28868080 - 28868080
Travelling and conveyance 59352653 1178307 60530960
Communication costs 8885983 78405 8964388
Security Charges 17023001 376316 17399317
Donations 7546818 - 7546818
CSR Expenditure 4810000 - 4810000
Legal and professional fees 43234633 1112036 44346669
Payment to auditors (Refer details below) 1935393 - 1935393
Printing & Stationary 3739178 43506 3782684
Recruitment Expenses 1688278 - 1688278
Bad debts/advances written off 5867981 - 5867981
Provision for Diminution in Long term Investments 34930990 - 34930990
Loss on sale of Assets 645558 - 645558
Bank Charges 19437598 15352 19452950
Miscellaneous expenses 16597119 101202 16698321
2031787316 4340202 2036127517
 Net Assets, i.e., total assets minus total
liabilities Share in profit or loss

Name of the enterprise

As % of consolidated As % of consolidated
Amount in Rs. Amount in Rs.
net assets profit or loss

1 2 3 4 5
Parent
3F INDUSTRIES LIMITED 65.60% 13541.39 88.56% 2031.19
Subsidiaries
Indian
3F OIL PALM AGRO TECH 19.63% 4050.79 23.79% 545.67
VAITON ENERGY 4.39% 905.74 (6.78%) (155.54)
SIMHAPURI AGRO (0.01) (175.98) (6.32%) (144.88)
CHAKRA NEMI 2.44% 503.24 (0.04%) (0.86)
KOTTU OILS 0.00% 0.38 (0.01%) (0.23)

Minority in all subsidiaries Associates 2.16% 446.00 3.32% 76.21

Joint Venture (as per proportionate consolidation)

3F FUJI FOODS PVT LTD., 6.63% 1369.28 (2.53%) (57.96)

TOTAL 100.00% 20640.83 100.00% 2293.60

3F INDUSTRIES LIMITED 55th Annual Report
Notes Forming Part of Consolidated Accounts
As at
24. CONTINGENT LIABILITIES AND COMMITMENTS March 31st,2015
Rs.
(i) Contingent Liabilities - 3F Industries Ltd.
a. Claims against the Company, not acknowledged as debts:
(1) Disputed demands for Income Tax 1548521
(2) Disputed demands for Customs 59647984
(Rs.93,99,711/-(Rs.912197/-) Paid under protest against the above)
(3) Disputed demands for Central Excise 33051106
(4) Disputed demands for Service Tax 79361
(Rs.39,289/- Paid under protest against the above)
(5) Disputed demands for Sales Tax
( Rs.22,64,91,736/-(Rs. 1,16,27,829/-) paid under protest against the above) 450869808
(6) Others-EPDCL 11571615
b. Amount of Guarantee given to (Outstanding ason 31/03/2015)
-- M/s. Viaton Energy Private Ltd., ( Subsidiary) 517357005
-- M/s. 3F Global Singapore Pte. Ltd., ( a wholly owned subsidiary) (in USD 62,00,000) 392460000
-- M/s. 3F Ghana Ltd., ( a wholly owned subsidiary) (In USD 50,00,000) 316500000
-- M/s. Department of Horticulture by 3F Oilpalm Agro Tech Private Ltd 9720000

c) Pending Litigations with the Government Authorities:- Rs.41,53,39,870 (Central Excise) the company won the cases , the
department filed theappeal in Higher Courts.

The Holding Company(3F Industries Limited) manufacturing the Dutiable products like Stearic Acid, Fatty Acid, Fatty Acid Pitch, etc. and
manufacturing exempted products like Vanaspati, Bakery Shortening Interestified fat, Margarine, Refined oils etc. The company used the
common inputs like Crude Oils, Hydrogen gas and Nickel catalyst and claimed the CENVAT Credit on Pro-rata basis.. The Revenue
proceeded against the appellants on the ground that the appellants were required (under Rule 6(3)(b) of the Cenvat Credit Rules, 2002/2004)
to maintain separate accounts for both the dutiable and exempted products and take the Cenvat credit only on that quantity of input which is
intended for use in the manufacture of dutiable products. The CESTAT decided the case in favour of the company and held that the availment
of pro-rata credit is perfectly in order and therefore Rule 6(3)(b) cannot be applied. The Central Excise department filed an Tax revision case
before the Hon’ble High court of Andhrapradesh. The Tax litigation amount was Rs.41,53,39,870/- including interest and penalty. Judgment is
awaited

d) Pending litigations with Others-

Commodities Trading with National Spot Exchange Limited

The Holding Company (3F Industries Limited) has entered in to contracts of Trading of Commodities with National Spot Exchange
Limited(NSEL) in the Year 2013-2014The Company has commodity trade receivables amounting to Rs.5,23,13,200/- as on 31st March, 2015
pertaining to various commodities contracts executed through brokers on the National Spot Exchange Limited (NSEL). Over past few months,
NSEL is unable to full-fill its scheduled payment obligations as agreed by them The assets of the NSEL were attached under the Maharastra
Protection of Interest of Depositors (MPID) Act and a case was filed in the Bombay High Court. Consequently, the Company has pursued a
legal action against NSEL through NSEL Investor Forumwhich has also filed complaint in Economic Offences Wing of Mumbai (EOW).
Considering the recent development and action taken by EOW against various borrowers of NSEL.The Company has received Rs.1,77,800/- In
the Year2014-2015.The Company believes that it shall recover the outstanding dues.

ICICI BANK

The Holding Company (3F Industries Limited) entered in to an agreement with ICICI Bank for purchase of 14612 Sq.ft of residential
Property in Chennai and paid an amount of Rs.1,22,00,000/- as advanceThe Bank has failed to execute the contract on their part.The
company filed a civil suit in the High Court of Madras vide C.S No2164/2010. Judgement is awaited

TICEL BIO-PARK

The Holding Company (3F Industries Limited) has purchased two modules in Ticel Bio Park, Taramani, Chennai to carryout the scientific
research activities. The total sale consideration was Rs.1,51,20,000/-. The Company paid an advance of Rs.1,10,00,000/- Ticel Bio Park has
suddenly increased the sale Price. The Company challenged the price revision the High Court of Madras by way of Writ petition in vide W.P
No No25884/2007.Judgement is awaited
 (ii) Commitments

a. Estimated amount of contracts remaining to be executed on Capital Account, and not provided for
48958510
b.Other commitments (Sale contracts to be executed)
446568814
c.Purchase commitments ( Purchase contracts to be executed)
412778121
25) FOREIGN EXCHANGE TRANSACTIONS

a) Foreign exchange fluctuations in the Holding Company (3F Industries Limited) are accounted in respective revenue heads of account (ie.
Loss against. Purchase of Raw materials Rs. 29,43,84,353/- and Gain against. Sale of Goods Rs.5,16,87,151). Net foreign exchange loss
is Rs.24,26,97,202/-.(Previous Year Net Loss Rs.26,52,73,774/-)

b)Net gain or loss on foreign currency transaction and translation of buyers credit (other than
considered as finance cost) is Rs.43496/-

b) DERIVATIVE INSTURMENTS FOR HEDGING PURPOSE

The Parent Company 3F Industries Ltd., has entered into the following derivative instruments for hedging purpose associated with foreign
currency fluctuations related to certain firm commitments and is not intended for trading or speculation, the period end foregin exchange
exposures that have been hedged by a derivative instrument are stated below.

Indian Rupees Outstanding Indian Rupees

Particulars CURRENCY Loan Amount
Equivalent Amount Equivalent

Wind Mill Loan US Dollars 3300000 149424000 618750 27979132

Krishna Patnam Project US Dollars 11142857 660270000 5142857 304740000

Total 14442857 809694000 5761607 332719132

In Order to Manage Foreign exchange fluctuation on foreign currency loans, the company has entered into cross currency swaps for USD
14442857 equalling to INR 809694000 which has fixed our future interest and principal payments in U.S.dollrsvis-a-vis in Indian rupees, as well
as mitigated the impact of foreign currency transaction gains or losses.

The Settlement of the related cross currency swap will not have any impact on our financial statements as the exchange rate for both principal
repayment and interest payments have been fixed in this structure for the entire period of repayment . Hence as of 31st March 2015 the
foreign exchange fluctuation on the above loans are not Considered while preparing the financial statements.

The subsidiary company " Viaton Energy Pvt Ltd.,(VEPL) is exposed to exchange rate risk which primarily arises from its foreign currency debt
in U.S. Dollars. The Company uses forward contracts and option contracts(derivatives) to mitigate its risk of changes in foreign currency
exchange rates.

During the previous year ended 31st March2015, the company adopted Accounting Standard AS-32 " Financial Instruments; Disclosures " as
issued by ICAI, to the extent that the adoption does not conflict with existing mandatory accounting standards and other authorities
pronouncements, Company law and other regulatory requirements. The Objective of this standard is to provide information relating to
various financial instruments to which the Company is exposed to. Further, the standard requires disclosure for the risk management
strategies that management adopts to address the specific risk factors to the extent they are considered to be material.

The subsidiary company Viaton Energy Pvt Ltd., has entered into hedging contract with Axis Bank Ltd.,.It has purchased call option to hedge
the foreign currency exposure towards payment of principal and Interest to Axis Bank DIFC Branch.

The call option outstanding as on 31st March2015 is USD 34,82,143

There are no outstanding foreign exchange derivative contracts for Vaiton Energy Pvt Ltd., as on 31st March2015
 b)INSTURMENTS FOR UN HEDGING FOREIGN CURRENCY EXPOSURE

Indian
Particulars CURRENCY Outstanding Amount Rupees
Equivalent
Trade Payable (3F Fuji) US Dollars 63617 3981864
Long Term Borrowings -ECB (3F Fuji) US Dollars 1917000 119986564
Interest Accrued on ECB (3F Fuji) US Dollars 9610 601511
Interest Accrued but not due on ECB (3F Fuji) US Dollars 2186 136809
Term Loan From Axis Bank,Dubai (Viaton) US Dollars 3482143 217950106
Total 5474556 342656853

26.Disclosures on payments and dues to "Suppliers" as defined in Micro, Small and Medium enterprises Development Act 2006 ( 'Th

The domestic group companies, has sent out letters seeking confirmations form its suppliers whether they fall under the
category of micro, small and medium enterprises as mentioned under the Micro, Small and Medium Enterprises Development
Act,2006(MSMDA). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31st March2015
has been made in the financial statements based on information received and available with the Group companies. Further the
company has not paid any interest to the micro, small and medium enterprises.

As at
March
31st,2015
Rs.
1. Amount remaining unpaid, beyond the appointed/agreed date at the end of
Nil
the year.

(a) Principal amount of bills to be paid Nil

(b) Interest due thereon Nil
2. (a) Payments made to suppliers, during the year, but beyond appointed/agreed
day
Interest thereon in terms of Sec 16 of the Act. Nil
(b) Interest paid along with such payments during the year Nil
(c) Interest due and payable at the end of the year, on such payments made during
Nil
the year
3. Amount of interest, for the year, U/s.16 of the Act, Including that accrued and remaining unpaid, at
Nil
the end of the year.
4. Total amount of interest, U/s 16 of the Act, Including that arising in earlier years, accrued and
Nil
remaining unpaid at the end of the year

Note :- For the purpose of the above details of the status of the supplier's under the Act has to be determined, to the extent of and
based on information furnished by the respective parties, and has accordingly, been relied upon by the company and its auditors.

27. Comparison between consumption of Imported and Indigenous Raw Materials during the year

DETAILS This year

Value Percentage
Imported 8642353314 75.19%
Indigenous 2851595091 24.81%
11493948405 100.00

28. Comparison between Consumption of Imported and Indigenous spare parts and components during the year
(charged to appropriate heads):

This year
DETAILS Value Percentage
Imported 6910627 0.73%
Indigenous 943009336 99.27%
949919963 100
29. Value of Imports made by the company during the year calculated on C.I.F. basis

DETAILS This year

Oils , Seeds & Others 8101267787

Stores 35204736

8136472523

30. Earnings in foreign exchange

DETAILS This year

FOB Value of Exports 2674101648

Interest from Subsidiaries 23484767

Commodity Washout Charges 1846051

Others Services 16893468

2716325934

31. Expenditure incurred in foreign currency: -

DETAILS This year

Travelling (Excluding tickets purchased in India) 4132495

Subscriptions 12211

Consultancy Charges 658234

Demurrage Charges 6231587

Brokerage 6060812

Ocean Freight 20634516

Interest 778408

32. The Govt.ofAndhrapradesh has sanctioned the Sales Tax Holiday to the parent company "3F Industries Ltd.,"vide sanction letter
No20/01/2003/679/FD Dt.28.06.2002 for a period of 7Years from 30.03.2003 to 29.03.2009. After introduction of APVAT vide rule 67 r.w.s
69 the sales tax holiday was converted in to sales tax deferment and altered the repayment period. The company has challenged the above
amendment before the Supreme court of India by way of Special Leave Petition No24837/2013(FY2005-06), 20451/2014(FY2006-
07),13645/2015(FY2007-08) the Apex Court granted the stay for the above three years.
33. Information About Related Party Relationships And
Transacations (AS 18):

Sl.No. NATURE OF RELATIONSHIP

1. Subsidiaries
3F Oil Palm Agrotech Pvt. Ltd
Simhapuri Agro Products Pvt.Ltd
Viaton Energy Pvt. Ltd.
3F Global Singapore Pte Ltd.,
3F Ghana Limited, Ghana.
Ceylone Speciality Fats Pvt., Ltd.,
Ceylone Edible Oils Pvt . Ltd.,
Chakranemi Infrastructure Pvt Ltd.,
3F Ghana Commodities Limited, Ghana.
3F Ghana Trading Limited.
3F Benin Sarl.
3F Mali Sarl.
3F Burkina Faso Sarl.
3F Nigeria Impex Ltd.,
3F Senegal Sarl.
3F IVC
3F Viatnam

2. Joint Venture Companies 3F Fuji Foods Pvt Ltd.,

3. Key Management Personnel Executive Directors

S.B.Goenka
O.P.Goenka
Bharat Kumar Goenka
S.R.Goenka
SushilGoenka
JiveshGoenka
JitendraGoenka
SeemaGoenka (W.e.f.19/02/2015)
RVSSS PrasadaRao -- CFO
S.RangaRajan -- CS

4. Relatives of Key Management Personnel SudhirGoenka S/o.S.B.Goenka

SudhaGoenka W/o.S.B.Goenka
BimalaGoenka W/o.Bharat Kumar Goenka
TapeshGoenka S/o.Bharat Kumar Goenka
PranavGoenka S/o.SushilGoenka
AditiGoenka D/o.SushilGoenka
AmbikaGoenka D/o.Bharat Kumar Goenka
AshishGoenka S/o.SanjayGoenka
AmrithaGoenka W/o. JiveshGoenka
KavithaGoenka W/o. JitendraGoenka
Sanjay Goenka S/o.O.P.Goenka

5. Enterprises controlled by Key

Management personnel/Relatives of KMP Krishnas Creations
Bharat Export corporation
Speciality Rubbers Pvt. Ltd.,
Ashirvad Enterprises
Best Investments Pte. Ltd.
SamyakUdyog Plastics Pvt. Ltd.
Mikachi Electronics
Fashion Handloom &Handycrafts
3F Investments
Golden Needle Apparels
GoenkaBlom Infrastructure Pvt. Ltd.,
Raj Syntax Pvt. Ltd.,
Genetwister Biotech Pvt. Ltd.,
Forever New Apparels Pvt Ltd.,
Apostle Trading Consultants Pvt. Ltd.,
Creative Garments Private Ltd.,
D.R.GoenkaWomens Degree College
GoenkaInfotech Limited
Simhapuri Agro Products Private Limited
Viaton Infrastructure Private Limited
Kottu Oil Private Limited
 Relatives of Enterprises
Joint
Key Key /Controlled
Subsidiary Venture
Particulars Managemen Manageme by KMP/ Total
Company Companie
t Personnel nt Relatives of
s
Personnel KMP
1. Purchase of goods/Services from
i) Goods
3F Global Singapore, Singapore 1200493614 1200493614
Ceylone Speciality Fats Pvt. Ltd. 15631200 15631200
3F Ghana Limited 55334740 55334740
Samyak Udyog Plastics Pvt Ltd., 12265064 12265064
ii) Stock - in - trade
Woodlands Sunny- Foods Pte Ltd 3991992 3991992

Total 1275451546 - - 12265064 - 1287716610

2.Sale of goods/Services to
i) Goods
3F Ghana Limited,Ghana. 8579836 8579836
3F Global Singapore Pte Ltd., 127537787 127537787
ii) Services
3F Ghana Limited., 4211171 4211171
3F Global Singapore, Singapore 12682297 12682297
Ceylone Speciality Fats Pvt. Ltd. 1574566 1574566
3F Fuji Foods Pvt Ltd., 16448143 16448143
Total 154585657 - - - 16448143 171033800
3.Rent paid to
Fashion Handloom & Handycrafts 108000 108000
S.B.Goenka 1000000 1000000
Sushil Goenka 248000 248000
Seema Goenka 1548000 1548000
Sudha Goenka 600000 600000
Sudhir Goenka 200000 200000
Total - 1248000 2348000 108000 - 3704000
4.Remuneration paid to
Shivbhagavan Goenka 13374755 13374755
Om Prakash Goenka 8035800 8035800
Bharat Kumar Goenka 4418200 4418200
Sita Ram Goenka 9472000 9472000
Sushil Goenka 8974209 8974209
Jitendra Goenka 2036000 2036000
Jivesh Goenka 2016000 2016000
Smt. Seema Goenka 126029 953600 1079629
Sanjay Goenka 1800000 1800000
Shinichi Nakao 1409999 1409999
Ms.Radhika Purohit 118306 118306
Total 51781298 953600 - - 52734898
5.Interest paid to
Speciality Rubbers Pvt Ltd 10108411 10108411
Fuji Oil Asia Pte ltd - Singapore 778408
Others - 857380 857380
Total 778408 - 857380 10108411 - 10965791
6.Interest received from
3F Ghana Limited,Ghana. 1395881 1395881
3F Global Singapore, Singapore 22088886 22088886
Total 23484767 - - - - 23484767
7. Rents Received from
3F Fuji Foods Pvt Ltd., 333709 333709
- - - - 333709 333709
8.Dividend Received from
3F Ghana Ltd., 49700800 49700800
Total 49700800 - - - - 49700800
9. Loans/Advances Issued/Paid
Creative Global Services Private Limited 5500000
Element Seven Garments and Textiles 16850000
3F Ghana Limited,Ghana. 61520000 61520000
3F Global Singapore Pte Ltd., 382238044 382238044
Creative Home Furnishing International Pvt
64950000 64950000
Ltd.,
Mr. Arunanshu Agarwal 41350000 41350000
(Reiumbursement of Expenses)
Speciality Rubbers Pvt Ltd (Paid) 154600000 154600000
Fuji Oil Co., Ltd., Japan 589374 589374

Total 443758044 41350000 - 219550000 589374 705247418

10. Loans/Advances Returns/Received
3F Ghana Limited,Ghana. 61520000 61520000
3F Global Singapore Pte Ltd., 315865544 315865544
Ceylone Speciality Fats Pvt Ltd. 28158577 28158577
Fuji Oil Asia Pte Ltd- Singapore 116266050 116266050
Creative Global Services Private Limited 5871100 5871100
Speciality Rubbers Pvt Ltd ( Received) 176116000 176116000
Creative Home Furnishing International Pvt Ltd., 26350000 26350000
Mr. Arunanshu Agarwal 134300000 134300000
Mr. Amit Dalmia 15000000 15000000
Total 521810171 149300000 - 208337100 - 879447271
11(a).Share Capital Issued
Fuji Oil Asia Pte Ltd-Sinagpore 37950003
11(b).Rights Issue
Om Prakash Goenka 8384250 8384250
Sita Ram Goenka 10074375 10074375
Shivbhagavan Goenka 8373000 8373000
Bharat Kumar Goenka 9890250 9890250
Sita Ram Goenka(HUF) 5533875 5533875
Bharat Kumar Goenka(HUF) 3040250 3040250
Sushil Goenka 14180000 14180000
Sushil Goenka (HUF) 2118125 2118125
Seema Goenka 1739750 1739750
Jitendra Goenka 3451250 3451250
Sudhir Goenka(HUF) 723250 723250
Jitendra Goenka (HUF) 1200000 1200000
Asish Goenka 2903125 2903125
Sudha Goenka 2198750 2198750
Shivbhagavan Goenka (HUF) 2052000 2052000
Om Prakash Goenka (HUF) 1670875 1670875
Sudhir Goenka 700000 700000
Bimala Devi Goenka 3003875 3003875
Jivesh Goenka 2813125 2813125
Prnav Goenka 1847125 1847125
Ambica Goenka 3392500 3392500
Kavitha Goenka 1278750 1278750
Adithi Goenka 91500 91500
Jivesh Goenka (HUF) 1204000 1204000
Amritha Goenka 351000 351000
Sanjay Goenka 3890625 3890625
Sanjay Goenka (HUF) 1674625 1674625
Total 37950003 75725125 22055125 - - 97780250
12. Diminution in Value of Investments
Ceylone Speciality Fats Pvt Ltd., 34930990 34930990
34930990 - - - - 34930990

Balances as on 31st March 2015

13. Investment in Equity Shares
3F Ghana Limited,Ghana. 93469384 93469384
3F Global Singapore Pte Ltd., 4869220 4869220
3F Ghana Trading Limited. 23951650 23951650
Total 122290254 - - - - 122290254
14. Loans and Advances (Receivable)
3F Global Singapore Pte Ltd., 156237500 156237500
3F Fuji Foods Pvt Ltd., 208417 208417
Total 156237500 - - - 208417 156445917
15. Loans and Advances ( Payable)
Mr. Amit Dalmia 15000000 15000000
Mr. Arunashu Vijaykumar Agarwal 92950000 92950000
Fuji Oil Asia Pte Ltd., Singapore 119986564 119986564
119986564 107950000 - - - 227936564
15. Receivables from
3F Ghana Ltd 18526485 18526485
3F Global Singapore Pte Ltd., 37863346 37863346
Vaiton Infrastructure Pvt Ltd., 125000 125000
3F Investments 104506 104506
Total 56514831 - - 104506 - 56619337
16. Payable to
Speciality Rubber Pvt Ltd., 44582504 44582504
Interest Accrued and Due on Borrowings-
601511 601511
Fuji Oil Asia Pte Ltd - Singapore
Interest Accrued but not due on
136809 136809
Borrowings-Fuji Oil Asia Pte Ltd - Singapore
Samyak Udyog Plastics Pvt Ltd., 500220 500220
Smt. Seema Goenka(Rent) 112500 112500
Woodlands Sunny - Foods Pte Ltd 3981864 3981864
3F Investments (Dividend) 1542675 1542675
3F Industries Limited 208417 208417
3F Fuji Foods Pvt Ltd., 1710717 1710717
Fuji Oil Asia Pte Ltd., Singapore 738320 738320
Total 4720184 - 112500 2042895 47239957 54115535

17.Corporate Guarantee Given to

3F Global Singapore Pte Ltd., 379800000 379800000
3F Ghana Ltd., 316500000 316500000
Viaton Energy Pvt Ltd., 612440934 612440934

Total 1308740934 - - - - 1308740934

18. Interest Receivable from Subsidaries

3F Global Singapore Pte Ltd., 16505555 16505555
Total 16505555 - - - - 16505555
 Relatives of Enterprises
Joint
Key Key /Controlled
Subsidiary Venture
Particulars Managemen Manageme by KMP/ Total
Company Companie
t Personnel nt Relatives of
s
Personnel KMP
19.Share Capital in Company held by
Sitaram Goenka (Indl) 10151330 10151330
Sitaram Goenka (HUF) 4956440 4956440
Sushil Goenka (Indl) 12042800 12042800
Sushil Goenka (HUF) 2812780 2812780
Shivbhagavan Goenka(Indl) 7191840 7191840
Shivbhagavan Goenka (HUF) 3167900 3167900
Bharat Kumar Goenka(Indl) 4971550 4971550
Bharat Kumar Goenka(HUF) 4074550 4074550
Om Prakash Goenka (Indl) 8369640 8369640
Om Prakash Goenka (HUF) 1935170 1935170
Jitendra Goenka (Indl) 2142770 2142770
Jitendra Goenka (HUF) 1182660 1182660
Jivesh Goenka (Indl) 2723270 2723270
Jivesh Goenka (HUF) 1256320 1256320
M/S. Best Investment 6167250 6167250
Sanjay Goenka(Indl) 2544420 2544420
Sanjay Goenka (HUF) 2710470 2710470
Ambica Goenka 1952330 1952330
Ashih Goenka 2869250 2869250
Ashih Goenka (HUF) 290940 290940
Seema Goenka 2815850 2815850
Sudha Goenka 3714900 3714900
Tapesh Goenka 2160400 2160400
Tapesh Goenka(HUF) 1490670 1490670
Bimala Devi Goenka 3553980 3553980
Amritha Goenka 568080 568080
Kavitha Goenka 1083240 1083240
Pranav Goenka 1135770 1135770
Pranav Goenka(HUF) 700000 700000
Sudhir Goenka 416000 416000
Sudhir Goenka (HUF) 756190 756190
Aditi Goenka 148250 148250
Total - 69794870 26094890 6167250 - 102057010
34. CONSOLIDATED SEGMENT REPORTING 2014-2015

BUSINESS SEGMENT

MANUFACTURING TRADING POWER ELIMINATOINS

Description TOTAL
Group Companies Joint venture Group Companies Joint Venture Group Companies Joint Venture MANUFACTURING

Segment Revenue
Gross Sales (External) 14763683201 - 1563803506 1514748 478899179 803188593 16004712041
InterSegment Sales 166478303 166478303 -
Total Segment Revenue 14763683201 - 1563803506 1514748 645377482 969666896 16004712041

Segment Expenditure 14364392763 8645649 1366011747 6041877 578526591 799800360 15523818266

Increase & Decrease Inventory -180062815 158646679 (4524774) 7104092 (33045002)

I) Segment Result/Operating Profit 579353253 (8645649) 39145080 (2354) 66850891 - 162762443 513938778
Less: Interest 259138265 - 34284136 76744 72566626 15142009 350923762
320214988 (8645649) 4860944 (79098) (5715735) - 147620434 163015016

Add: Other Income 217524583 3760434 - - 399700 - 18857869 202826848

Profit Before Tax 537739571 (4885215) 4860944 (79098) (5316035) - 166478303 365841864
Provision for Taxation 143270723 832169 144102892
Net Profit After Tax 394468848 (5717384) 4860944 (79098) (5316035) 166478303 221738972

Less: Minority Interest 79 - - - 7621383 - 7621462

Profit after Minority Interest 394468927 (5717384) 4860944 (79098) 2305348 166478303 229360434

II) Other Segment

Segment Assets 8020377542 275123074 6264565 4524774 1257501162 613997100 8949794017
Un Allocated Assets 1434853480
Total Assets 8020377542 275123074 6264565 4524774 1257501162 613997100 10384647497

Segment Liabilities 4558773253 147869053 981858929 5688501235

Un Allocated Liabilities 2632063204
Total Liabilities 4558773253 147869053 - - - - 8320564439
Capital Expenditure 195756622 245658672 - - 3155544 - 444570837
Depreciation& Amortization 144711804 221552 - - 42084194 - 187017550
35. DISCLOSURES REQUIRED BY ACCOUNTING STANDARD-15 (REVISED)- EMPLOYEE BENEFITS
Defined benefit Plan

Gratuity

Every employee is entitled to a benefit equalling to 15 days last drawn basic salary for each completed year of service in line with 'The Payment
of Gratuity Act.,1972'. The same is payable at the time of separation from the Company or retirement, whichever is earlier.

The Liability for gratuity has been actuarially determined and provided for in the books of account.

a) Reconciliation for present value of obligations TOTAL

Present value of obligations as at beginning of year 32006123
Interest Cost 2560490
Current Service Cost 3979800
Benefits paid (2333079)
Actuarial(Gain)/ loss on obligation 265839
Present value of obligations as at end of year 36479173
b) Reconciliation for Fair Value of Plan Assets
Fair value of plan assets at beginning of year 18457855
Expected return on plan assets 1735010
Contributions 1868695
Benefits paid (2173157)
Actuarial gain on plan assets -
Fair value of plan assets at the end of year 19888403

c) Expenses Recognised in statement of Profit & Loss a/c

Current Service cost 3979800

Interest Cost 2560490
Expected return on plan assets 1735010
Net Actuarial loss recognised in the year 265839
Expenses to be Recognised in the profit & loss 5071119

d) Net Liability Recognised in the Balance Sheet

Present value of obligations as at the end of year 36479173

Fair value of plan assets as at the end of the year 19888403
Funded status 16590770
Net Liability Recognised in the Balance Sheet 16590770

e) Actuarial Assumptions 31/03/2015

Discount Rate 8.00%
Salary Escalation 6.00%
Attrition rate
Expected return on plan assets 8.00%
Mortality IALM 2006-08 Ultimate
In respect of 3F oil Palm agro Tech Pvt Ltd., ,the rate of escalation in salary considered in actuarial valuation is estimated taking into
accountinflation, seniority, promotion and other relevant factors.

In respect of "3F Fuji Foods Pvt Ltd., mentioned the actuarial assumptions as follows

Summary of Actuarial Assumption

Discount Rate 8%

Salary Escalation 10%

Attrition rate 5%

Retirement age 58 Years

Employee benefits

In respect of Viaton Energy is regular in depositing PF and other statutory dues with respective government authorities.

36. (A)Salient features of Scheme of Amalgamation of Asia Pacific commodities limited (APCL)with the Company(3F Industries Limited)
under section 391 to Section 394 of the Companies Act 1956.

(a) Pursuant to the scheme of amalgamation of the erstwhile APCL (100% subsidiary of the company) with the Company, as approved by the
Shareholders at the meeting of the Company held on 09th December, 2013 and the sanction of the HonorableHigh Court of Judicature at
Hyderabad, for the state of Telangana and the state of Andhra Pradesh to the Scheme of Amalgamation, the assets and liabilities of the
erstwhile AsiaPacific commodities limited were transferred to and vested in the Company with effect from the Appointed date viz., 1st April,
2014. The Scheme has accordingly, been given effect to in the Accounts.

(b) The amalgamation has been accounted for under the "Pooling of Interest” method as prescribed by Accounting Standard 14 (Accounting
for Amalgamation) issued by the Ministry of Corporate Affairs. Accordingly the assets, liabilities and other reserves of the erstwhile Asia
Pacific commodities limited as at 1st April, 2014 have been taken over at their book values.

(c) Consequent to amalgamation, 3000000 Equity shares of Rs.10 each held by the Company in the erstwhile Asia Pacific commodities
limitedand Trade payables amounting to Rs.101311947 have been cancelled.

(d)Pursuant to the Scheme, The Authorised share Capital of Asia Pacific Commodities Limited shall stand combined with the Authorised
Share Capital of 3F Industries Limited.

(e) Pending completion of the relevant formalities for transfer of some of the assets and liabilities acquired pursuant to the scheme in the
name of the company, such assets and liabilities continue to be in the name of the erstwhile Asia Pacific Commodities Limited.

(B)The figures for the previous year do not include figures for the erstwhile Asia Pacific commodities limited and accordingly the current
year's figures are not comparable to those of the previous year.

37 .A) Loans and advances of Holding Company (3F Industries Limited) include an amount of Rs.3036.31 Lakhs being amount give
Companies Act, 2013 to the following subsidiaries.

3F Global Chakranemi
Viaton Energy Ceylon Speciality
Name of the Company Singapore Pte Infrastructur 3F Ghana Ltd.,
Pvt Ltd., Fats pvt Ltd
Ltd., e Pvt Ltd
Amount of Advance as on 31/03/2015 141094365 156237500 6298849 - -
Maximum Balance during the Year 141094365 456076250 6298849 61520000 28158577
Various
Date of Advance Various Dates Various Dates Dates Various Dates Various Dates
Interest rate 12% 10% Nil 14.75% Nil
Security NA unsecured unsecured unsecured unsecured
To meet To meet working To meet To meet working
To meet working
longterm capital Project work capital
capital requirements
requirements requirements requirements requirements
Purpose of Advance
Tenor NA One Year NA NA NA
Advances given to 3F Ghana Ltd and Ceylon Speciality Fats Pvt Ltd have been received during the year
B) (i)The amount advanced to Ceylone Speciality Fats Pvt Ltd has been recovered in full during the year. No interest has been charged on this
loan since the project has turned unviable due to conditions prevalent in Srilanka. Hence the Company decided to close the operations in
Srilanka

ii) Chakranemi Infrastructure pvt ltd is a Wholly owned subsidiary of the Comapany. The expenditure on the Project work are funded by the
Company. Hence no interest has been charged on the advance amount as the Commercial operations are yet to start

C) List of Corporate Guarantees which are covered u/s 186 of the Companies Act, 2013
Vaiton Energy Pvt Vaiton Energy Vaiton Energy 3F Global 3F Ghana
Name of the Company
Ltd., Pvt Ltd., Pvt Ltd., Singapore Pte Ltd., Ltd.,
USD
Amount of Corporate guarantee Rs.90000000 Rs.150000000 USD 9750000 USD 6200000
5000000
Amount of Corporate Guarantee given Rs.440839240 Rs.31650000
Rs.90000000 Rs.76517765 Rs.392460000
as on 31/03/2015 (USD 6964285) 0
Various
Date of Corporate guarantee Various Dates Various Dates Various Dates Various Dates
Dates
Security unsecured unsecured unsecured unsecured unsecured
To meet
To meet To meet To meet working
To meet longterm working
Purpose of Guarantee working capital working capital capital
requirements capital
requirements requirements requirements
requirements
On Closer of On Closer of On Closer of
Tenor of corporate guarantee On Closer of Loan On Closer of Loan
Loan Loan Loan

38. The balances shown in personal accounts are subject to confirmation/reconciliation by respective parties. In the opinion of the
management, all the amounts stated under sundry debtors and loans and advances are recoverable at the values at which they are stated.

39. Corporate Social Responsibility (CSR)

3FIL, follow the section 135 of the Companies Act, 2013, a CSR Committee has been formed by the company. The company proposed areas
for CSR activities, as per CSR policy of the company are education and rural development activities at villages around the Company's which
are specified in schedule VII of the companies Act,2013. 3FIL Company is required to spend a minimum amount of Rs. 48.10 Lakhs for the
purpose of CSR for the year.

Average net Profits of last 3 Financial years is Rs.240476018/-

Prescribed Corporate Social Responsibility Committee Expenditure

Rs.48,10,000/- (2% of the amount of Rs.240476018/-)

3F Oil Palm Agrotech (3FOP), follow the section 135 of the Companies Act, 2013, a CSR Committee has been formed by the company.
The company proposed areas for CSR activities, as per CSR policy of the company are Oil palm plantation for enhancement of farmers'
livelihood and health, education and rural development activities at villages nearer to Company's operations which are specified in schedule
VII of the companies Act,2013. 3FOP Company is required to spend a minimum amount of Rs. 16.25 Lakhs for the purpose of CSR for the
year.

40. Operating Lease

The Joint Venture Company"3F Fuji Foods Pvt Ltd., has cancellable leases. Lease payments relating to cancellable operating leases amounting to
Rs. 23,73,812/- has been disclosed as "Rent" in the statement of profit and Loss.

41.The Fixed assets of Chakranemi Infrastructures Private Limited are stated at Historical Cost.No depreciation has been claimed as the
assets have not yet been put to use during this year.

42. Segment Information

"3F Oil Palm Agro Tech" is primarily in the business of Palm Oil manufacturing and trading only. Hence, there are no other reportable
segments as per the Accounting Standard (AS-17) on " Segment Reporting"

" Simhapuri Agro Products Pvt., Ltd., is engaged in the business of extracting palm oil from fresh fruit bunches and sale of crude palm oil.
Accordingly, pursuant to the explanation given in Accounting Standard-17" Segment Reporting", no segment disclosure has been made in
the financial statements as the Company has only one primary business segment ie., manufacturing and one geographical segment ie., India.
43. Transfer Pricing
The Joint Venture Company "3F Fuji Foods Pvt Ltd.," has established a comprehensive system of maintenance of information and documents as
required by the transfer pricing legislation under Sections 92-92F of the Income tax Act. The Management is of the opinion that its
international transactions are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particular on
the amount of tax expenses and that of provision for taxation.

44 . The Company "3F Fuji Foods Pvt Ltd., Following are delays in payment of interest on borrowings which were outstanding as at 31st
March2015

Name of the Lender Amount Due Date Delay in days as at 31st March2015
Fuji Oil Asia Pte., Ltd., 601511 19th February2015 40

45.During the year ended 31st March2015, " 3F Fuji Foods Pvt Ltd., had received an amount of Rs. 11,00,00,000/- form Fuji Oil Asia Pte.Ltd.,-
Singapore towards allotment of equity shares. The Company had allotted such equity shares on 23/04/2014. The company has filed form FC-
GPR on 28/05/2014 for intimation of allotment of such equity shares to the Reserve Bank of India through the Authorised Dealer Category I
Bank (RBI). In terms of Notification No. FEMA 20/2000-RB dated 3rd May2000 read with Master Circular No.15/2012-13 dated 02/07/2012, as
amended from time to time ('notification'), form FC-GPR is required to be filed within 30 days forallotment of shares. The Company has filed
condonation of delay in form FC-GPR with the RBI. Pending condonation of such delayed filing, potential penalties,if any that may arise are
currently not determinable. Further, Management believes that these are not expected to be significant as they have already filed for
condonation with the RBI.

46 Earning/Loss per share

Name of the Company For the year ended 31st March2015

Face Value of Share 10

3F Industries Limited 19.42

3F Oil Palm Agro Tech Private Limited 5.45

Viaton Energy Private Limited (1.20)

Simhapuri Agro Products Private Limited (19.31)

Kottu Oils Private Limited (2.32)

3F Fuji Foods Private Limited (0.21)

47. Auditors Remuneration
Name of the Company For the year ended 31st March2015

3F Industries Limited 1465617

3F Oil Palm Agro Tech Private Limited 285000
Viaton Energy Private Limited 135982
Simhapuri Agro Products Private Limited 60000
Kottu Oils Private Limited
3F Fuji Foods Private Limited 491985

With respect to"3F Fuji Foods Pvt the following expenditure capitalised during the year

48.Capital work-in-Progress (expenditure during construction period pending allocation (net) upto 31st March2015
particulars Additions during the year As at 31st March2015

Interest and finance charges 4111882 4111882

Legal and Professional fees 11484221 11484221
Salaries & Wages 4196401 4196401
Electricity Charges 720274 720274
Repairs & Maintenance Others 37005 37005
Rate & Taxes 108000 108000
Miscellaneous expenses 18698 18698
20676481 20676481
49. This is the first year of preparation and presentation of consolidation of Indian subsidiaries, hence as per transitional provisions of the
Accounting Standard -21 “Consolidated Financial Statements", comparative figures for the previous year were not presented in 3F Group
financial Statements".

50 .Paise have been rounded off to the nearest rupee.