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Notes to Accounts of Binayak Tex Processors Ltd.

Mar 31, 2015

NOTE : 1

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being depreciated/amortized over the revised/remaining useful lives by a revised WDV rate on written down value method. The written down value of fixed assets whose lives have expired as at 01.04.2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs.2,80,404.94

NOTE : 2

Expenditure in Foreign Currency:

- Foreign Traveling Expenses Rs.-16,18,171.00 (Previous Year Rs. 6,99,537.00)

- Earning in foreign Currency (Export/F.O.B.) Rs. 92,10,50,598.47 (P. Y. Rs. 81,55,16,566.26 )

NOTE : 3

The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute of Chartered Accountants of India.

NOTE : 4

Consequent to issue of Accounting standard 22 "Accounting for Taxes on Income" by 'The Institute of Chartered Accountant of India", the Company recorded the deferred Tax Liabilities on account of timing difference & deferred tax charge for the year is Rs 35,39,012.69 (P.Y. Rs. 33,65,267.56) which has been credited / debited to Statement of Profit & Loss.

NOTE : 5

Related parties Disclosures:-

i) (a) Key Management Personnel

Shree Pradip kumar Pacheriwala

Shree Ashok Kumar Agarwal

Smt. Heera Devi Pacheriwala

(b) Associates:-

Jimtex Pvt Ltd

S.V. Business Pvt Ltd

Hanuman Das Madanlal

Valiant Glass Works Pvt Ltd

Benkatesh Synth Processors Pvt Ltd

Paramount Finetex & Industries (I) Pvt. Ltd

Balaji Tex Knitting Mfg. Co. Pvt Ltd.

Wintry Engineering & Chemicals Pvt Ltd

(c) Relatives of key management personnel and their enterprises:

Mr Binodilal Pacheriwala, Mr Dilipkumar Pacheriwala, Smt. Bhagirathi Devi

Pacheriwala and Smt. Beladevi Pacheriwal.Vinita Pacheriwal

Note:- Related party relationship is as identified by the company and relied upon by the Auditors. Figures in brackets indicate previous year's figures.

NOTE : 6

Segment Reporting

A: Primary Segment (By business Segment):-

As the Company is mainly engaged in the business of Manufacturing/ Processing of textile fabrics considering the nature of business and financial reporting of the company. The Company has only one segment viz. "Textiles Products" as reportable segment.

B: Secondary Segment ( By Geographical demarcation):-

The Company operates in Local/ Export segment geographically of which the export sales have amounted to Rs. 9319.43 lacs (P.Y. Rs.- 8275.06Lacs) but due to the nature of business, the assets/ liabilities and expenses for these activities has not been bifurcated separately.

NOTE : 7

Company has advanced unsecured loan of Rs. 933.60 Lacs of companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 1,017.63 Lacs.

NOTE : 8

Derivative Instruments:

The Company uses forward contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. Details of outstanding forward contract as on 31.3.2015 have been given below:-

NOTE : 9

Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

NOTE : 10

As at March 31, 2015, the company has reviewed the future earnings of all the cash generating units in accordance with the Accounting Standard 28 "Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

NOTE : 11

In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realise at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

NOTE : 12

Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

NOTE : 13

Previous year's figures have been regrouped/ rearranged/ reclassified wherever necessary to conform to this year's presentation.


Mar 31, 2014

Note 1

Contingent Liability not Provided for in respect of:

Current Previous Year Year 31.03.2014 31.03.2013 (Rs.) (Rs.)

Bills Discounted / Purchases 387,846,593.85 321949951.53

Income Tax Matters for A.Y. 2465106.00 8317552.00 2000- 01 to A.Y. 2011-12.

The Company has received demand notice for various years and against the said notices the company has filed appeals with Income Tax Appellate Tribunal.

Note 2

Depreciation on fixed assets has been provided on straight line method basis in conformity with the provision of Section 205(2) (b) of the Companies Act 1956, at the rates prescribed in schedule XIV of the said act.

Note 3

The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute of Chartered Accountants of India.

Note 4

Consequent to issue of Accounting standard 22 “Accounting for Taxes on Income” by ‘The Institute of Chartered Accountant of India”, the Company recorded the deferred Tax Liabilities on account of timing difference & deferred tax charge for the year is Rs 33,65,267.56 (P.Y. Rs. 5,40,215.52) which has been debited to Statement of Profit & Loss.

Note 5

Segment Reporting

A: Primary Segment (By business Segment):-

As the Company is mainly engaged in the business of Manufacturing/ Processing of textile fabrics considering the nature of business and financial reporting of the company. The Company has only one segment viz. “Textiles Products” as reportable segment.

B: Secondary Segment ( By Geographical demarcation):-

The Company operates in Local/ Export segment geographically of which the export sales have amounted to Rs. 8275.06 lacs (P.Y. Rs.- 7641.73Lacs) but due to the nature of business, the assets/ liabilities and expenses for these activities has not been bifurcated separately.

Note 6

During earlier year, assessment of AY 2001-02 to AY 2008-09 was completed u/s 153A of Income Tax Act, 1961 which, resulted in certain demand which were amended vide order of rectification/ order giving effect to ITAT order & determined demand of Rs. 54.84 Lacs. The company has disputed said demand before appellate authorities hence related accounting entries will be made in the year when finality is reached.

Note 7

Derivative Instruments:

The Company uses forward contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. Details of outstanding forward contract as on 31.3.2014 has been given below:-

Note 8

Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

Note 9

As at March 31, 2014, the company has reviewed the future earnings of all the cash generating units in accordance with the Accounting Standard 28 “Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

Note 10

In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realise at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

Note 11

Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

Note 12

Previous year’s figures have been regrouped/ rearranged/ reclassified wherever necessary to conform to this year''s presentation.


Mar 31, 2013

NOTE ; 1

EXPENDITURE JN FOREIGN CURRENCY:

- Foreign Traveling Expenses Rs.- .15,46,760 (Previous Year Rs. 9,76,428.00)

- Earning in foreign Currency (Export/F.O.B.) Rs. 74,80,96,441.11 (P. Y. Rs. 75,93,48,304.30)

NOTE : 2

Depreciation on fixed assets has been provided on straight line method basis in conformity with the provision of Section 205(2) (b) of the Companies Act 1956, at the rates prescribed in schedule XIV of the said act.

NOTE : 3

The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute of Chartered Accountants of India.

NOTE : 4

Consequent to issue of Accounting standard 22 "Accounting for Taxes on Income" by The Institute of Chartered Accountant of India", the Company recorded the deferred Tax Liabilities on account of timing difference & deferred tax charge for the year is R^^^5t5j52 (P.Y. Rs. 12,30,888.47) which has been

NOTE : 5

SEGMENT REPORTING :

A- Primary Seqment (By business Segment)

Mainly engaged in the business of Manufacturef fabrics considering the nature of business and financial report.ng of the company. The Company has only one segment viz ''Textiles Products" as reportable segment.

R. Secondary Seqment ( By Geographical demarcation):-

Export segment geographically of which the export sales have amounted to Rs 7,641.73 lacs (P.Y. Rs, 7,725.05 Lacs) but due to the nature of business, the assets/ liabilities and expenses for these activities has not been bifurcated separately.

NOTE : 6

Durina earlier year assessment of AY 2001-02 to AY 2008-09 was completed u/s 153A of Income Tax M UflXesuffifn certain demand which were amended vide order of rectification/ ordergmng effec to ITAT o der & determined demand of Rs. 54.84 Lacs. The company has disputed sad demand before appellate authorities hence related accounting entries will be made ,n the year when finality is reached.

NOTE : 7

Company has advanced unsecured loan of Rs. 963.60 Lacs including interest free ^<***J*^* certain parties / companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 1,047.63 Lacs.

NOTE : 8

Company does not have complete information.

specified in Micro, Smali and Medium Enterprises development Act, 2006 hence it is no* po«= verify the amount due to such enterprises.

NOTE : 9

2011 at factory premises of the company During the previous year there was fire on 22 SePte™fr ah i ai i y h Business located at plot no. F 13-14, MIDC Phase-2, & spares Pvt Ltd. The fire damaged raw material, goods received from for job statement of pro, & loss.

NOTE : 10

does not exceed the future recoverable amount, consequently, no aajusimem y assets is considered necessary by the Management.

NOTE : 11

have been made in respect of all known liabilities.

NOTE : 12

Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconaitaton, ,f any.

NOTE : 13

Previous figures have been regrouped/ rearranged/ rectified wherever necessary to conform to this year''s presentation.


Mar 31, 2012

Note1 Capital commitments:

Estimated amount of Contracts remaining to be executed on Capital Account and not

Provided for Rs. Nil (P.Y. Rs. 40,00,000) against which advance of Rs. Nil (P.Y. Rs.10,00,000) have been paid.

if v Note27 Expenditure in Foreign Currency

- Foreign Traveling Expenses Rs.- .9,76,428 (Previous Year Rs. 11,61,251.00)

-C.I.F. Value of Import Rs.-NIL (Previous Year Rs.-20,35,341)

Earning in foreign Currency (Export/F.O.B.) Rs. 75,93,48,304.30. (P. Y. Rs. 66,67,77,407.45.)

Note2 Depreciation on fixed assets has been provided on straight line method basis in conformity with the provision of Section 205(2) (b) of the Companies Act 1956, at the rates prescribed in schedule XIV of the said act.

Note3 The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute Chartered Accountants of India. Consequent to issue of Recounting standard 22 "Accounting for Taxes tin Income" by

The Institute of Chartered Accountant of India", the Company recorded the deferred Tax Liabilities on account of timing difference & deferred tax charge for the year is Rs 1230888.47 (P.Y. Rs. 18,89,454.22) which has been debited to Statement of Profit & Loss.

Note4 Related parties Disclosures:-

i) (a) Key Management Personnel

Shree Pradip kumar Pacheriwala Shree Ashok kumar Agarwal Smt. Heera Devi Pacheriwala

(b) Associates:-

Jimtex Pvt Ltd S.V. Business Pvt Ltd Hanuman Das Madanlal Valiant Glass Works Pvt Ltd Benkatesh Synth Processors Pvt Ltd Paramount Finetex & Industries (I) Pvt. Ltd Balaji Tex Knitting Mfg. Co. Pvt Ltd. Wintry Engineering &Chemicals Pvt Ltd (c) Relatives of key management personnel and their enterprises:

Mr Binodilal Pacheriwala, Mr Dilipkumar Pacheriwala, Smt. Bhagirathi Devi Pacheriwala and Smt. Beladevi Pacheriwaf.

Note5 Segment Reporting

A: Primary Segment (By business Segment):-

As The Company is mainly engaged in the business of Manufacturing/ Processing of textile fabrics considering the nature of business and financial reporting of the company. The Company has only one segment viz. Textiles Products" as reportable segment.

B: Secondary Segment ( By Geographical demarcation):-

The Company operates in Local/ Export segment geographically of which the export sales have amounted to Rs. 7,725.05 lacs (P.Y. Rs.- 6,844.74 Lacs) but due to the nature of business, the assets/ liabilities and expenses for these activities has not been bifurcated separately.

Note6 During earlier year, assessment of AY 2001-02 to AY 2008-09 was completed u/s 153A of Income Tax Act, 1961 which, resulted in certain demand which were amended vide order of rectification/ order giving effect to ITAT order & determined demand of Rs. 54.84 Lacs. The company has disputed said demand before appellate authorities hence related accounting entries will be made in the year when finality is reached.

Note7 Company has advanced unsecured loan of Rs. 9,63,60,453 including interest free loan of Rs. 30,00,000 to certain parties / companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 8,28,93,521.

Note8 Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

Note9 During the year there was fire on 22nd September 2011 at factory premises of the company located at plot no. F 13-14, MIDC Phase-2, Dombivali (East), which is taken on Rent from S.V. Business Pvt. Ltd.. The fire damaged raw material, goods received from third parties for job work, Stores & Spares and Packing Materials. The total loss evaluated by the company is Rs. 1,65,77,333/- and insurance claim is lodged with United India Insurance Company Ltd. for such total loss which is shown as claim receivable under heading Non-current assets.

Note10 As at March 31, 2012, the company has reviewed the future earnings of all the cash generating units in accordance with the Accounting Standard 28 "Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

Note11 In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realise at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

Note12 Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

Note13 Previous year figures

Till the year ended 31st March 2011, the company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.


Mar 31, 2011

1. Contingent liability not provided for in respect of:

Current Year Previous Year 31.03.2011 (Rs.) 31.03.2010 (Rs.)

Bills Discounted/Purchases 20,98,15,305 21,20,81,348

Income Tax Matters for A.Y.2000-01 to A.Y.2008-09 54,83,780 1,60,28,906



The Company has received demand notice for various years and against the said notices the company has filed appeals with Income Tax Appellate Tribunal''

2. Estimated amount of contracts remaining to be executed on capital Account and not provided for Rs,40,00,000 (P.Y.Rs.25,00,000) against which advance of Rs,10,00,000 (P.Y.Rs.13.08.000) Have been paid.

3. i) Loans from union Bank of India on FDBP/PC/PCFC/Cash credit account are secured by first hypothecation charge on entire current assets consisting of raw material semi finished goods and receivables Extension of first charge on entire fixed assets of the company consisting of land building plant and machinery situated at dombivali Dist theme The loans are also guaranteed by the directors.

ii) Term loan from union Bank of India is secured by mortgage charges on land & building at dombivali and hypothecation change on entire current assets consisting of raw Material finished and level Extension of first charge on entire fined assets of the Company consisting of land. building, plant and Machinery situated at Dombivali Dist thane The loans are also guaranteed by the directors,

iii) Term foam tram Union Bank of naira m secured by mortgage clergies on land Priding at Dombrvalr and hypothecs Son charge on plant & Machinery and extension of Heerbadevi property hypothecation charge on the entire current assets of the Company consign q of Raw Material Stock in Process. Finished Coeds. Stores & Spares. Other Consumables. Book debts, both present future. The Tern loan is also guaranteed the directors (Repayment in next one year is (P Y. Rs.-55.55 lacs.}

iv) Loans from other banks and secured by hypothecation of the vehicles purchased from such loans. Repayment due in next one year is Rs.Nil lacs (P.Y.Rs22,07,lacs)

4. Eating in foreign currency (Export/F.O.B.) Rs.65,15,91,979.87 (P.Y.Rs 11,61,251,00)

5. Depreciation in fixed assets has been provided on straight line method basis in conformity with the provision of section 205 (b) of the companies Act 1956 at the rates prescribed in schedule XIV of the said act.

6. The Company has not provided for gratuity liabilities and leave salaries as game has not been ascertained however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS5 (Revised} issued by The institute of Chartered Accountant of India.

7. Consequent to issue of Accounting standard 22 "Accounting for Taxes on Income" by ''The institute of Chartered Accountant of India the Company recorded the deferred Tax charge for the year is Rs.18,69,454,22 (P.Y. Rs,1285050.63) which has been debited to profit & loss Account.

8. Related parties Disclosures.

i) (a) Key Management personal

Shree paradip kumar pecdheriwala

shree Ashok kumar Agarwal

Smt Hsera Devi pachair wala

9. Segment Reporting

A; Primary Segment [By business Segment);-

As The Company is mainly engaged in the business of Manufacture/ Processing of textile considering the nature of business and financial reporting of the company The Company has only one segment viz Textiles Products'' as reports segment.

B: Secondary Segment { By Geographical demark Action):-

The Company operates in Local/Export segment geographically of which the export sales have amounted to Rs. 6.645.28 lacs (p.V. Ra.- 3,344.74 Lacs) but due to the nature of business. the assets/liabilities and expenses for these activities has not been bifurcated separately.

10. During earlier year, assessment of AY 2001-02 to AY 2008-09 was completed u/s 153A of income Tax Act. 1961 which resulted in certain demand which were amended vide order of rectification/ order giving effect to ITAT order & determined demand of Rs 54.34 Lacs. The company has disputed said demand before appellate authorities hence related accounting entries will be made in the years when finality is reached.

11. Company has advanced unsecured loan of Rs 89.364.896 Including interest free loan of Rs. 30,00.000 to certain parties/companies in which directors are interested The maximum balance outstanding at any time during the year to such parties/companies is Rs.8,28,93,521

12. Sundry debtors closing balance includes Rs.11,98,77,702 receivable from one party in which directors are interested.

13. Company does not have complete information to determine Micro small and Medium enterprises as specified to Micro, Small and Medium Enterprises development Act 2006 hence it is not possible for Us to verify the amount due to such enterprises.

14. Other information required to be given under paragraph 3. 4 ( C ) and 4 ( D) of the part II of Schedule VI of Companies Act 1956 are not applicable.

15. There was major fire on 12th May 2009 at Packing Department of the company located at plot no. A,55, MIDC Phase-1 Dombivali (East), which is taken on lease The fire extensively damaged finished stock of the company, goods received from third parties for job work. Plant & Machinery aristae, Stored & Spares and Packing Materials. The Total loss evaluated by the company is Rs. 7.00,86,245.95 insurance Claim lodged with IFFCO Tokio General insurance Company limited Company received Rs 2,00,00.000/- as interim payment towards claim on 11th November 2009 and appropriated same on certain loss during the year ended 31st March 2010.The claim was finally settled during the year by receipt of Rs, 3,72,61,339 on 18th December 2010 and balance loss deteriorated to be irrecoverable has been written oh during the year as exceptional item.

16. As at March 31.2011, the company has reviewed the future earnings of all the cash generating, units in accordance with the Accounting Standard 28 ''Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently no adjustment to carrying amount of assets is considered necessary by the Management.

Notes:-

1. Previous Year''s figures are regrouped/reconsidered wherever necessary

2. Cash & Cash Equivalents represents cash and tank balances only.

Notes forming part of the accounts for the year ended 31st march 2011

17. In the opinion of the management the current Assets and Loans and Advances as shown in the books are expected to realize at their Book Values in the normal course of business and adequate provision have been made in respect of all know liabilities.

18. Certain balances under the heads sundry Debtors. Loans Advances Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation if any.

19. Additional information regarding Balance sheet abstract and general Business Profile as required under part iv of schedule vi to company Act, 1956 is annexed herewith.

20. Previous Years figures have been regrouped rearranged wherever found necessary.


Mar 31, 2010

1 Contingent Libility not Provided for in respect of:

Current Year Previous Year 31.03.2010 (Rs.) 31 03.2009 (Rs.)

Bills Discounted / Purchases 21,20,81,348 16,78,65,400 Income Tax Matters for A.Y. 2000-01 1,60,28,905 Nil to A.Y. 2008-09.

2. Estimated amount of Contracts remaining to be executed on Capital Account and not Provided for Rs. 2,500,000 (P.Y. Rs. 4,050,000) against which advance of Rs.1,308,000 (P.Y. Rs. 2,727,908) have been paid.

3. i) Loans from Union Bank of India on FDBP/PC/PCFC/ Cash Credit account are Secured by first hypothecation charge on entire current assets consisting of raw Material, semi finished goods and receivables. Extension of first charge on entire fixed assets of the Company consisting of land, building, plant and Machinery situated at Dombivali, Dist. Thane. The loans are also guaranteed by two of the directors.

ii) Term loan from Union Bank of India is secured by mortgage charges on land & building at Dombivali and hypothecation charge on plant & Machinery and extension of Kalbadevi property hypothecation charge on the entire current assets of the Company consisting of Raw Material, Stock in Process, Finished Goods, Stores & Spares, Other Consumables, Book debts, both present & future. The Tern loan is also guaranteed by two of the directors. (Repayment in next one year is Rs.55.56lacs (P.Y. Rs- 41.26 lacs.)

iii) Loans from other banks are secured by hypothecation of the vehicles purchased from such loans. Repayment due in next one year is Rs.28.54 Lacs (P.Y. Rs.28.54 Lacs).

4. Expenditure in Foreign Currency.

- Foreign Traveling Expenses Rs.- .1,161,251.00 (Previous Year Rs. 453,130.00)

- C.I.F. Value of Import Rs.- 2,035,341.00 (Previous Year Rs.- NIL)

5. Earning in foreign Currency (Expoft/F.O.B.) Rs. 666,777,407,45. (P. Y. Rs. 535,276.892.64.)

6. Depreciation on fixed assets has been provided on straight line method basis in conformity with the provision of Section 205(2) (b) of the Companies Act 1956, at the rates prescribed in schedule XIV of the said act.

7. The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute Of Chartered Accountants of India.

8. Consequent to issue of Accounting standard 22 "Accounting for Taxes on Income by The Institute of Chartered Accountant of India", the Company recorded the deferred Tax Liabilities on account Of timing difference & deferred tax charge for the year is Rs 1,285,050.63 (P.Y. Rs. 4,494,281.20) which has been debited to Profit & Loss Account.

9. Related parties Disclosures:-

i) (a) Key Management Personnel

Shree Pradip kumar Pacheriwala Shree Ashok kumar Agarwal Smt. Heera Devi Pacheriwala

(b) Associates:-

Jimtex Pvt Ltd

S.V. Business Pvt Ltd

Hanuman Das Madanlal

Valiant Glass Works Pvt Ltd

Benkatesh Synth Processors Pvt Ltd

Paramount Finetex & industries (I) Pvt. Ltd

Balaji Tex Knitting Mfg. Co. Pvt Ltd.

Wintry Engineering &Chemicals Pvt Ltd

c) Relatives of Key management personnel and their enterprises:

Mr Binodilal Pacheriwala, Mr Dilipkumar Pacheriwala, Smt. Bhagirathi Devi Pacheriwala and Smt. Beladevi Pacheriwal.

10. Segment Reporting

A: Primary Segment (By business Segment- As The Company is mainly engaged in the business of Manufacturing/ Processing of textile fabrics considering the nature of business and financial reporting of the company. The Company has only one segment viz. "Textiles Products" as reportable segment.

B: Secondary Segment (By Geographical demarcation):-

The Company operates in Local/ Export segment geographically of which the export sales have amounted to Rs. 6,844.74 lacs (P.Y. Rs.- 5,584.43 Lacs) but due to the nature of business, the assets/ liabilities and expenses for these activities has not been bifurcated separately.

11. During the year assessment of AY 2001-02 to AY 2008-09 was completed u/s 153A of Income Tax Act, 1961 which, resulted in certain demand which were amended vide order of rectification/ order giving effect to ITAT order & determined demand of Rs. 1.46 crores. The company has disputed said demand before appellate authorities hence related accounting entries will be made in the year when finality is reached.

12. Company has advanced unsecured loan of Rs. 82,893,521 including interest free loan of Rs. 3,000,000 to certain parties / companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 82,893,521.

13. Sundry debtors closing balance includes Rs. 32,169,801.81 receivable from one party in which directors are interested.

14. Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

15. Other information required to be given under paragraph 3.4(C) and 4 ( D) of the part II of Schedule VI of Companies Act. 1956 are not applicable.

Necessary accounting entries have been passed as per the details on record and final treatment will be given after finalization of assessment of the loss by the insurance company.

16. Additional Information regarding Balance Sheet abstract and general Business Profile as required under part IV of schedule VI to Company Act. 1956 is annexed herewith.

17. Previous Years Figures have been regrouped / rearranged wherever found necessary.

 
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