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Notes to Accounts of Century Enka Ltd.

Mar 31, 2015

1. short-terM BorroWings

a) Working Capital borrowings are secured by way of hypothecation of Inventories, Book Debts and Receivables, both present and future.

b) Working Capital borrowings carry an average interest rate of 9.79 % (Previous Year 10.10%) per annum and Buyers Import Credit for Raw Materials paid during the year carried an interest rate ranging from Libor 0.48% per annum to Libor 0.65 % per annum.

c) Working Capital Borrowings are renewed based on contract with bankers. Rupee term loans and Buyers Import Credit facility for Raw Material purchases carry maximum tenure of 30 days and 180 days respectively.

2. Defined Benefit Plans - gratuity and Provident Fund

Gratuity: The Company operates a gratuity plan which is administered through Life Insurance Corporation and a trust which is administered through trustees. Every employee is entitled to a minimum benefit equivalent to 15 days salary last drawn for each completed year of service in line with Payment of Gratuity Act, 1972. However, certain employees are entitled to benefit higher than the benefit prescribed under Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier or death in service.

Provident Fund: Provident fund for certain eligible employees is managed by the Company through trust, in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee.

3. Contingent Liability: Rs. / Lacs

Claims against the Company not acknowledged 31st March, 31st March, as debts (to the extent not 2015 2014 provided for) (Refer Note below)

a) 1) Income-Tax Matters 92 674

2) Sales-Tax Matters 47 534

3) Excise and Customs Matters 757 360

4) Others - 75

Total 896 1643

b) Excise Department had issued an order dated 31st December, 2013 denying the applicability of Notification No. 6/2000 dated 1st March, 2000 which allowed payment of duty at specific rate instead of advalorem basis and consequently raising a demand of Rs. 22927 Lacs plus interest thereon and penalty of Rs. 22927 Lacs against which the Company has filed an appeal with the Customs Excise and Service Tax Appellate Tribunal (CESTAT). The Hon''ble CESTAT has passed an order on 12th September, 2014 to grant a stay against the demand and admit the appeal on a pre deposit of Rs. 700 Lacs. The Company has deposited this amount on 24th December, 2014. The Company has been advised by legal experts that it has a fair chance of ultimately succeeding in the matter and accordingly no provision is required to be made in the accounts.

Note : It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

4. Other Commitments: The Company has entered into non cancellable agreement with Gas Utility Company on 22nd July, 2010 for purchase of LNG. Under this agreement, the Company is committed to purchase certain annual minimum quantity of LNG upto 30th April, 2017 failing which, it will pay the seller for any shortfall in offtake of LNG based on an agreed formula. The cost of the minimum committed quantity as at 31st March, 2015 for the remaining period of the contract at current market prices approximates Rs. 2561 Lacs (Previous Year Rs. 4138 Lacs). Based on the current projection Company does not expect shotfall in offtake of minimum commited quantity and therefore no material forseeable losses are expected.

5. Revenue expenditure incurred on Research and Development during the year is Rs. 221 Lacs (Previous Year Rs. 324 Lacs).

6. Production in Continuous Process Plant at Bharuch producing Polyester Yarn was suspended in November, 2013. A part of the said Plant was converted to non-continuous process and has been put into operation. Some of the portion of the plant is still in the process of conversion to non-continuous process. As the operation of remaining Plant continues to be unviable, the Company, for the time being, has decided to continue suspension of the remaining Plant to protect overall profitability of the Company.

8. The Gross Block of Fixed Assets was written up by Rs. 8301 Lacs on revaluations carried out in the year 1983 and 1989.

9. Exceptional items of Rs. 220 Lacs for the year ended 31st March 2014 represents loss on account of disposal/ write off due to non usability of certain fixed assets consequent to closure of operations at Mahad and is net of write back of provision for earlier years consequent to finalisation of the liability.

10. The Company has adopted useful lives of the fixed assets as those specified in Part C of Schedule II to the Companies Act, 2013 (''the Act'') effective 1st April, 2014. Accordingly carrying amount of assets, for which the useful lives as per the revised estimate are exhausted as of 1st April, 2014 have been recognised in the retained earning as on that date after retaining the residual value of these assets. For the other assets,the carrying amount as of 1st April, 2014 will be amortised over the remaining useful lives of the assets.

As a result :

a) An amount of Rs. 517 Lacs (Net of Deferred tax of Rs. 220 Lacs ) has been recognised to the opening retained earning as of 1st April, 2014.

b) An amount of Rs. 102 Lacs has been transferred from Revaluation reserves to General reserve with respect to previously revalued assets

c) Depreciation charge for the year ended 31st March, 2015 is lower by Rs. 2748 Lacs

11. Tax expenses for the year ended 31st March, 2015, includes Rs. 627 Lacs for additional charge of deferred tax due to change in effective rates of income-tax.

12. Previous Year''s figures have been regrouped / rearranged, wherever necessary.


Mar 31, 2014

1 DISCLOSURES IN ACCORDANCE WITH REVISED AS-15 ON "EMPLOYEE BENEFITS".

b) Defined benefit Plans - Gratuity and Provident Fund

Gratuity: The Company operates a gratuity plan which is administered through Life Insurance Corporation and a trust which is administered through trustees. Every employee is entitled to a minimum benefit equivalent to 15 days salary last drawn for each completed year of service in line with Payment of Gratuity Act, 1972. However, certain employees are entitled to benefit higher than the benefit prescribed under Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier or death in service.

Provident Fund: Provident fund for certain eligible employees is managed by the Company through trust, in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notifed by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the company or retirement, whichever is earlier.

The benefits vest immediately on rendering of the services by the employee.

xi) The estimates of future salary increases considered in actuarial valuation takes into account infation, seniority, promotion and other relevant factors.

xii) The above disclosures for Provident Fund are limited to the extent of disclosures provided by the actuary.

c) Para 132 of AS 15 (revised 2005) does not require any Specific disclosures except where the expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under AS 5 or AS 18 and accordingly,the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

2 Capital Commitments: Estimated amount of Contracts remaining to be executed on Capital Account and not provided for Rs. 1976 Lacs (Previous Year Rs. 242 Lacs) against which advances have been paid Rs. 208 Lacs (Previous Year Rs. 19 Lacs).

3 Contingent Liability: Rs. / Lacs

31st 31st March, Claims against the company not acknowledged as debts (to the extent not provided for) March, 2013 (Refer Note below) 2014

a) 1) Income-Tax Matters 674 674

2) Sales-Tax Matters 534 534

3) Excise and Customs Matters 360 336

4) Others 75 75

Total 1643 1619

b) Excise Department has issued an order dated 31st December,2013 denying the applicability of Notifcation No. 6/2000 dated 1st March, 2000 which allowed payment of duty at Specific rate instead of advalorem basis and consequently raising a demand of Rs. 22927 Lacs plus interest thereon and penalty of Rs. 22,927 lacs against which the Company has fled an appeal with the Customs Excise and Service Tax Appellate Tribunal (CESTAT). The Company has been advised by legal experts that it has a strong case and accordingly no provision has been made in the accounts.

Note : It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending disputed matters till these are resolved.

4 Other Commitments: The Company has entered into non cancellable agreement with Gas Utility Company on 22nd July, 2010 for purchase of LNG. Under this agreement, the Company is committed to purchase certain annual minimum quantity of LNG upto 30th April, 2017 failing which, it will pay the seller for any shortfall in offtake of LNG based on an agreed formula. The cost of the minimum committed quantity as at 31st March, 2014 for the remaining period of the contract at current market prices approximates Rs. 4138 Lacs (Previous Year Rs. 8789 Lacs). The Company expects to maintain the offtake of minimum commited quantity.

5 Revenue expenditure incurred on Research and Development during the year is Rs. 324 Lacs (Previous Year Rs. 223 Lacs).

6 From November 2013, Polyester operations at Bharuch were partially shutdown (Continuous Process Plant only) on account of preventive maintenance. While doing so, the Company also decided to carryout some modifications in the plant so as to increase fexibility in product mix and improve margins. This work is expected to continue for another 4 to 6 months.The partial stoppage of operations is not likely to have an adverse material impact on the profitability of the Company .

7 The Gross Block of Fixed Assets was written up by Rs. 8301 Lacs on revaluations carried out in the year 1983 and 1989.

8 Segment Reporting a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standards on Segment Reporting (AS - 17), the Company is primarily in the business of manufacture and sale of Synthetic Yarn and Tyre Cord Fabric which mainly have similar risks and returns. The Company''s business activity falls within a single geographical and business segment (Synthetic Yarn), hence it has no other primary reportable segments.

9 Exceptional items of:

(a) Rs. 220 Lacs for the year ended 31st March 2014 represents loss on account of disposal/ write off due to non usability of certain fixed assets consequent to closure of operations at Mahad and is net of write back of provision which was created as of 31st March 2013 consequent to finalisation of the liability.

(b) Rs. 1503 Lacs for the year ended 31st March 2013, represents (i)Expenses on account of suspension of operation at Mahad including retrenchment compensation to workmen and (ii) Compensation paid under Voluntary Retirement Scheme to employees at Pune.

10 Related Party Disclosures (As identified by the Management and where transactions exist) (i) Related Party Relationships

(a) Key Management Personnel Mr. G. M. Singhvi (Whole-time Director)

(b) Other Related Parties

Mr. B. K. Birla

Century Textiles and Industries Limited

Kesoram Industries Limited

Jay Shree Tea and Industries Limited

Parvati Tea Co. Ltd

Note: The parties listed under (b) above are not "related parties" as per the requirements of Accounting Standard AS-18. However, as a matter of abundant caution, they are being included for making the Financial Statements more transparent.

11 Previous Year''s figures have been regrouped / rearranged, wherever necessary.


Mar 31, 2013

(a) Rights, Preferences and Restrictions attached to Equity Shares

The Company has one class of Equity Shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share held. The dividend of Rs. 6.00 per share proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.

(a) Secured Working Capital borrowings , Rupee Term Loans and Buyers Import Credit for Raw Materials are secured by way of hypothecation of Inventories, Book Debts and Receivables, both present and future.

(b) All Working Capital borrowings, Rupee Term Loans carry an average interest rate of 10.12% (Previous Year 10.52%) per annum and Buyers Import Credit for Imported Raw Materials carry interest rate ranging from Libor 0.05% per annum to Libor 1.45% per annum (Previous Year Libor 0.25% per annum to Libor 2.90% per annum).

(c) Working Capital Borrowings are renewed based on contract with bankers. Rupee term loans and Buyers Import Credit facility for Raw Material purchases carry maximum tenure of 45 days and 365 days respectively.

(d) Fixed Deposits from Employees carry interest rate of 10% per annum (Previous Year 10% per annum) and are repayable at the end of one year from the date of deposit.

b) Defined Benefit Plans - Gratuity and Provident Fund

Gratuity: The Company operates a gratuity plan which is administered through Life Insurance Corporation and a trust which is administered through trustees.

Every employee is entitled to a minimum benefit equivalent to 15 days salary last drawn for each completed year of service in line with Payment of Gratuity Act, 1972. However, certain employees are entitled to benefit higher than the benefit prescribed under Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier or death in service.

Provident Fund: Provident fund for certain eligible employees is managed by the Company through trust, in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the company or retirement, whichever is earlier.

The benefits vest immediately on rendering of the services by the employee.

i) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

ii) The above disclosures for Provident Fund are limited to the extent of disclosures provided by the actuary.

c) Para 132 of AS 15 (revised 2005) does not require any specific disclosures except where the expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard No. 5 or Accounting Standard No. 18 and accordingly, the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

1 Capital Commitments: Estimated amount of Contracts remaining to be executed on Capital Account and not provided for Rs. 242 Lacs (Previous Year Rs. 987 Lacs) against which advances have been paid Rs. 19 Lacs (Previous Year Rs. 364 Lacs).

2 Other Commitments: The Company has entered into two non cancellable agreements with Gas Utility Companies on 22nd July, 2010 and 15th March, 2011 for purchase of LNG. Under these agreements, the company is committed to purchase certain annual minimum quantities of LNG upto 31st December, 2016 and 31st December, 2013 respectively, failing which, it will pay the seller for any shortfall in offtake of LNG calculated based on agreed formula. The cost of the minimum committed quantity as at 31st March, 2013 for the remaining period of the contract at current market prices approximates t 8789 Lacs (Previous Year Rs. 11400 Lacs).

3 Revenue expenditure incurred on Research and Development during the year is Rs. 223 Lacs ( Previous Year Rs. 206 Lacs).

4 The Ministry of Corporate Affairs has issued the amendment dated 29th December, 2011 to AS-11 " The Effect of Changes in Foreign Exchange Rate",to allow companies to deferral/capitalisation of exchange differences arising on Long-Term foreign currency monetary items.

In accordance with the amendment/earlier amendment to AS-11, the Company has capitalised exchange loss, arising on Long-Term foreign currency loan, amounting to Rs. 3 Lacs (Previous Year exchange loss Rs. 31 Lacs) to the cost of Plant and Machinery.

5 The Gross Block of Fixed Assets was written up by Rs. 8301 Lacs on revaluation carried out in the year 1983 and 1989.

6 Segment Reporting

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standards on Segment Reporting (AS -17), the Company is primarily in the business of manufacture and sale of Synthetic Yarn and Tyre Cord Fabric which mainly have similar risks and returns. The Company''s business activity falls within a single geographical and business segment (Synthetic Yarn), hence it has no other primary reportable segments.

b) Secondary Segment (by Geographical demarcation):

i) The secondary segment is based on geographical demarcation i.e. in India and outside India.

7 Exceptional items includes following:

(a) Due to operational losses, the production at both the factories at Mahad was suspended on 25th May, 2012. Effective 14th August, 2012, the Company has retrenched all workmen. The total expense due to suspension of operations including retrenchment compensation to workmen amounting to Rs. 1255 Lacs has been disclosed as an exceptional item.

(b) The company announced Voluntary Retirement Scheme for certain category of employees at Pune unit on 7th March, 2013. The compensation payable of Rs. 248 Lacs to the employees who accepted voluntary retirement has been disclosed as an exceptional item.

8 Related Party Disclosures (As identified by the Management and where transactions exist)

(i) Related Party Relationships

(a) Key Management Personnel Mr. G. M. Singhvi (Whole-time Director)

(b) Other Related Parties Mr. B. K. Birla

Century Textiles and Industries Limited Jay Shree Tea and Industries Limited Kesoram Industries Limited

9 Previous Year''s figures have been regrouped / rearranged wherever necessary.


Mar 31, 2012

(a) Pursuant to Special Resolution passed by the shareholders through postal ballot on 9th December, 2009, the Board of Directors in its meeting ' held on 17th December, 2009 allotted 18,00,000 Preferential Warrants to the Promoters of the Company at a price of Rs. 189.16 per warrant and received Rs 47.29 per warrant being 25% upfront price. The Promoters were entitled to apply for allotment of one fully paid up equity share of Rs. 10/- each against each warrant at any time after the date of allotment but on or before expiry of 18 months from the date of allotment.

The Promoters have exercised the option to convert preferential warrants into fully paid-up equity shares of Rs. 10/- each in two tranches and the Board of Directors accordingly, allotted 8,00,000 fully paid-up equity shares ofRs 10/- each on 27th January, 2010 and 10,00,000 fully paid-up equity shares of Rs. 10 each on 3rd May, 2010.

(b) Rights, Preferences and Restrictions attached to Equity Shares:

The Company has one class of Equity Shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.

Note: Deduction / Adjustment during the year represents additional depreciation for the year charged on Revaluation, transferred to Statement of Profit and Loss.

(a) Secured Working Capital borrowings , Rupee Term Loans and Buyers Import Credit for Raw Materials are secured by way of hypothecation of Inventories, Book Debts and Receivables, both present and future.

(b) All Working Capital borrowings , Rupee Term Loans carry an average interest rate of 10.52% per annum and Buyers Import Credit for Imported Raw Materials carry interest rate ranging from Libor 0.25% per annum to Libor 2.90% per annum.

(c) Fixed Deposits from Employees carry interest rate of 10% per annum (Previous Year 9.50% per annum)

i) The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

c) Para 132 of AS 15 (revised 2005) does not require any specific disclosures except where the expense resulting from compensated absence is of such size, nature or incidence that its disclosure Is relevant under Accounting Standard No. 5 or Accounting Standard No. 18 and accordingly, the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

d) Defined Benefit Plana Employer Managed Provident Fund

I) The Defined Benefit Obligation of interest rate guarantee on exempt provident fund in respect of certain employees of the Company at March 31,2012 is t Nil. The balance in the surplus account of the provident fund is approx f 178 Lacs and hence the net liability to be provided for In the books of accounts of the Company is Rs. Nil.

1. Other Commitments: The Company has entered into two non cancellable agreements with Gas Utility Companies for purchase of LNG. Under these agreements the company has commuted to purchase certain annual minimum quantities of LNG for the next two to five years, falling which, it will pay the seller for any shortfall in off take of LNG calculation based on agreed formula. The cost of the minimum committed quantity at current market prices approximates Rs 11400 Lacs.

2. Derivative Instruments and Unheeded Foreign Currency Exposures

The Company enters Into forward exchange contracts being derivative Instruments, which are not Intended for trading or speculative purposes, but for hedge purposes.

3. Revenue expenditure incurred on Research and Development during the year is Rs 206 Lacs ( Previous Year Rs. 195 Lacs).

4. The Ministry of Corporate Affairs has issued the amendment dated 29 December 2011 to AS-11 "The Effect of Changes in Foreign Exchange Rate", to allow companies deferral/capitalization of exchange differences arising on Long-Term foreign currency monetary items.

In accordance with the amendment/earlier amendment to AS-11, the Company has capitalized exchange loss, arising on Long-Term foreign currency loan, amounting to Rs. 31 Lacs (previous year exchange loss Rs. 52 Lacs) to the cost of Plant and Machinery.

5. The Gross Block of Fixed Assets was written up by Rs. 8301 Lacs on revaluation carried out in the year 1983 and 1989.

6. Segment Reporting

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standards on Segment Reporting (AS -17) the Company is primarily in the business of manufacture and sale of Synthetic Yarn and Tyre Cord Fabric which mainly have similar risks and returns. The Company's business activity falls within a single geographical and business segment (Synthetic Yarn), hence it has no other primary reportable segments.

b) Secondary Segment (by Geographical demarcation):

I) The secondary segment Is based on geographical demarcation ie. in India and outside India.

7. In view of inadequacy of net profit for the year ended March 31, 2012 determined in accordance with the provisions of Sec 349 of the Companies Act, 1956 of India, the remuneration of the Whole-time Director of the Company, payable under the terms of employment aggregating to Rs 95 lacs, has exceed the limit of Rs 48 lacs prescribed in Part II of Schedule XIII to the Act. The remuneration has been retrospectively approved by the remuneration committee in its meeting held on May 2, 2012. The Company, having become aware of the excess remuneration paid over the prescribed limit, will seek the approval of the Shareholders of the Company by way of a special resolution in the ensuing Annual General Meeting for the aforesaid remuneration paid by it to its Whole-time Director.

8. The financial statements for the year ended March 31,2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2011

1. DISCLOSURES IN ACCORDANCE WITH REVISED AS-15 ON "EMPLOYEES BENEFITS".

b) Defined Benefit Plans -

The following figures are as per the actuarial valuation, as at the Balance Sheet date, carried out by an independent actuary.

ix) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

x) Para 132 of AS 15 (revised 2005) does not require any specific disclosures except where the expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard No. 5 or Accounting Standard No. 18 and accordingly, the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

2. There was no impairment loss on Fixed Assets on the basis of review carried out by the Management in accordance with Accounting Standard 28.

3. Estimated amount of Contracts remaining to be executed on Capital Account and not provided for Rs.2011 Lacs (Previous Year Rs.8623 Lacs) against which advances have been paid Rs. 181 Lacs (Previous Year Rs.319 Lacs).

4. Contingent Liability in respect of:

(a) Taxation matters Rs. 899 Lacs (Previous Year Rs.231 Lacs)

(b) Taxation matters for which department has gone in appeals Rs. 730 Lacs (Previous Year Rs 369 Lacs)

(c) Other matters Rs. Nil Lacs ( Previous Year Rs.8 Lacs)

5. (a) Excise Department had retrospectively cancelled registration granted to one of the Companys factories at Mahad. This order was set aside by the Commissioner (Appeals). The appeal of the Department against the order of Commissioner (Appeals) was dismissed by the Tribunal against which Excise Department had fled an appeal before the High Court which appeal is yet to be admitted.

Excise Department had also issued various separate Show Cause cum Demand Notices(SCNs) on almost similar grounds pertaining to the period April 2000 to March 2003 for alleged short payment of duty on clearances of Polyester Filament yarn from one of the Companys factories at Mahad, denying applicability of an exemption notification. These SCNs are yet to be disposed off. In view of favourable order of the Tribunal (referred to in the foregoing paragraph) and legal opinions received by the Company, the demands are unjustified and the Company is advised that it has a very strong case on merits.

(b) The Gujarat Sales-Tax Department had in the earlier years retrospectively withdrawn its own circular which permitted Sales-Tax exemption on purchases of fuel oil by units exempted from payment of Sales Tax. It had consequently issued notices to the Company for reopening of assessments and levy of tax, interest and penalty amounting to Rs 360 Lacs for the earlier periods. Pursuant to applications fled by the industry, the Gujarat High Court decided the matter in favour of the industry. The Gujarat Government has fled an appeal before Supreme Court which is yet to be decided.

6. Revenue expenditure incurred on Research and Development during the year is Rs.195 Lacs ( Previous Year Rs.105 Lacs).

7. Pursuant to an option given in the Notification No.G.S.R 225 (E) issued by Ministry of Corporate affairs on 31.03.2009, the exchange rate loss of Rs 52 Lacs (Previous Year exchange gain Rs 91 Lacs) arising on account of reporting long term Foreign Currency monetary items relating to fixed assets has been added to (previous year reduced from) the cost of fixed assets. Consequently profit for the year is higher by 51 Lacs (previous year lower by 86 Lacs).

8. The Gross Block of Fixed Assets was written up by Rs.8301 Lacs on revaluation carried out in the year 1983 and 1989.

9. Segment Reporting

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standards on Segment Reporting ( AS - 17 ) the Company is primarily in the business of manufacture and sale of Synthetic Yarn and Tyre Cord Fabric which mainly have similar risks and returns. The Companys business activity falls within a single geographical and business segment (Synthetic Yarn), hence it has no other primary reportable segments.

b) Secondary Segment (by Geographical demarcation):

i) The secondary segment is based on geographical demarcation i.e. in India and outside India.

10. Related Party Disclosures (As identified by the Management and where transactions exist )

(i) Related Party Relationships

(a) Key Management Personnel Mr.G.M. Singhvi Whole-time Director

(b) Other Related Parties Mr.B.K. Birla Century Textiles and Industries Limited, Jay Shree Tea and Industries Limited, Kesoram Industries Limited NOTES:

1) The parties listed under (b) above are not "related parties" as per the requirements of Accounting Standard AS-18. However, as a matter of abundant caution, they are being included for making the Financial Statements more transparent.

2) In respect of the above parties, there is no provision for doubtful debts as on 31st March,2011 and no amount has been written off or written back during the year in respect of debts due from/to them.

11. Previous Years figures have been regrouped and rearranged, wherever necessary.

12. All the amounts in rupees have been rounded off to lacs as permitted under Notifcation No.GSR 545 (E) dated 1st August,2002 issued by Department of Company Affairs, Government of India. Figures less than Rs.50,000 have been shown as actuals in brackets.

NOTE: Signatures to schedules from Schedule A to Schedule I forming part of the Accounts

 
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