Notes to Accounts of Enterprise International Ltd.

Mar 31, 2014

1. Corporate Information

Enterprise International Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay & Kolkata Stock Exchanges in India. Enterprise International Limited is engaged in import of textile yarn and fabric and sale thereof in India.

2. Basis of Preparation of financial statements

The financial statements of the Company have been prepared and presented under the historical cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules 2006 as amended and the relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian Rupees.

3 Segment Reporting

Primary Segment

Based on the guiding principal given in the Accounting Standard -17 "Segment Reporting issued by the Central Government, the Company''s primary segment are SilkTextile & Financial Activities.

The above business segments have been identified considering

i) The nature of products

ii) The related risks and returns

iii) The internal financial reporting systems

Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Expenses". Assets and liabilities which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Assets / Liabilities".

B. SECONDARY SEGMENT

The Company caters mainly to the needs of Indian marks. Export turnover during the year being nil of the total turnover, there are no reportable geographical segments.

4. In the opinion of the Board of Directors current Assets, Loans & Advances are approximately of the value stated, if realised in the ordinary course of business.

5. Fixed Deposit with scheduled bank have been pledged to Bank:

a) against bank guarantee issued by the bank to the custom authorities, and b for availing of buyers''credit facility

6. The company has examined carrying cost of its identified Cash Generating Units (CGU) by comparing present value of estimated future cash flows from such CGU in terms of Accounting Standard on Impairment of Assets according to which no provision for Impairment is required as assets of non of CGU are impaired during thefinancial year ended 31st March, 2014.

7. Contingent Liability in respect of Bank Guarantee given by a scheduled bank to custom authorities due to duty is Rs. 83649863/- (Previous Year Rs. 3,55,42,674)

8. Related Party Disclosure

(Parties with whom transactions have taken place during the year)

Name of the related parties Name of Relationship

(i) Aahana Commerce Pvt. Ltd. Associates of the Company

(ii) GaneshAwas Private Limited Associates of the Company

(iii) GopalDasSarda(HUF) Associates of the Company

(iv) AdityaSarda(HUF) Associates of the Company

(v) Panache Associates of the Company

(vi) GopalDasSarda Key Management Person

(vii) AdityaSarda Key Management Person

(viii)BrijlataSarda Director''s Relative

(ix) RishuSarda Director''s Relative

The above parties are related parties in the broader sense of the term and are included for making the financial statements more transparent.

9. Operating Leases: Company as Leases

Certain office premises obtained on operating lease. The lease term is for 3 years and renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease agrranement. There is no sublease. The lease are cancelable.

Lease payment made for the year 6,000 6,000

Contingent rent recognized in Profits Loss Account Nil Nil

10. Operating Lease: Company as Lassor

The company has leased out certain building on operating leases. The lease term is for 3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease agreements. The lease are cancelable.

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Mar 31, 2013

1. Corporate Information

Enterprise International Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay & Kolkata Stock Exchanges in India. Enterprise International Limited is engaged in import of textile yarn and fabric and sale thereof in India.

2. Basis of Preparation of financial statements

The financial staten rents of the Company have been prepared and presented under the historical cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules 2006 as amended and the relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian Rupees.

3 Segment Reporting

Primary Segment

Based on the guiding principal given in the Accounting Standard - 17 "Segment Reporting" issued by the Central Government, the Company''s primary segment are Silk Textile & Financial Activities.

The above business segments have been identified considering :

i) The nature of products

ii) The related risks and returns

iii) The internal financial reporting systems

Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Expenses". Assets and liabilites which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Assets/ Liabilites".

B. SECONDARY SEGMENT

The Company caters mainly to the needs of Indian marks. Export turnover during the year being nil of the total turnover, there are no reportable geographical segments.

4 In the opinion of the Board of Directors current Assets, Loans & Advances are approximately of the value stated, if realised in the ordinary course of business.

5 Fixed Deposit with scheduled bank have been pledged to Bank:

a) against bank guarantee issued by the bank to the custom authorities, arid

b) for availing of buyers'' credit facility._

6 The company has examined carrying cost of its identified Cash Generating Units (CGU) by comparing present value of estimated future cash flows from such CGU in terms of Accounting Standard on Impairment of Assets according to which no provision for Impairment is required as assets of non of CGU are impaired during the financial year ended 31st March 2013.

7 Contingent Liability in respect of Bank Guarantee given by a scheduled bank to custom authorities due to dutyis Rs. 3,55,42,674 (Previous Year Rs. 1,96,52,450)

8 Operationa Lease : Company as Lassor

The Company has leased out certain buildings on operating leases. The lease term is for 3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease agreements. The lease are cancelable.

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Mar 31, 2012

1. Corporate Information

Enterprise International Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay & Kolkata Stock Exchanges in India. Enterprise International Limited is engaged in import of textile yarn and fabric and sale thereof in India.

2. Basis of Preparation of financial statements

The financial statements of the Company have been prepared and presented under the histori- cal cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and comply with the Accounting Standards notified under the Com- panies (Accounting Standards) Rules 2006 as amended and the relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian Rupees.

3 Segment Reporting

Primary Segment

Based on the guiding principal given in the Accounting Standard - 17 "Segment Reporting" issued by the Central Government, the Company's primary segment are Silk Textile & Financial Activities.

The above business segments have been identified considering :

i) The nature of products

ii) The related risks and returns

iii) The internal financial reporting systems

Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Expenses". Assets and liabilities which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Assets/ Labilities".

B. SECONDARY SEGMENT

The Company caters mainly to the needs of Indian marks. Export turnover during the year being nil of the total turnover, there are no reportable geographical segments.

4. In the opinion of the Board of Directors current Assets, Loans & Advances are approximately of the value stated, if realised in the ordinary course of business.

5. Fixed Deposit with scheduled bank have been pledged to a Bank against bank guarantee issued by the bank to the custom authorities.

6 The company has examined carrying cost of its identified Cash Generating Units (CGU) by comparing present value of estimated future cash flows from such CGU in terms of Accounting Standard on Impairment of Assets according to which no provision for Impairment is required as assets of non of CGU are impaired during the financial year ended 31st March 2012.

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Mar 31, 2010

1. In the opinion of the Board of Directors Current Assets, Loans and Advances are approximately of the value Stated, if realised in the ordinary course of business.

2. The Commissioner of Customs (Port), Kolkata had vide its order dated 25.02.05 enhanced the value of goods imported by the Company sum of Rs.53.00 lacs to Rs.69.84 lacs and consequently imposed fine, penalty and differential duty aggregating to Rs.13.11 lacs. The Company has preferred an appeal against the said order before the Appellate Tribunal In view of the legal opinion received by the Company, the Company is advised that it has very strong case on merits and hence no provision has been made.

3. The Assistant Commissioner of Customs, Kolkata had issued a showcause notice under the Customs Act, 1962 on 16.08.2004 intending to impose an anti-dumping duty of Rs. 13,15,862/- on certain goods imported by the Company. The Company has refutted the same before the Commissioner of Customs (Port), Kolkata. Also the Company has obtained the legal opinion and is advised that it has very strong case on merits and hence no provision has been made.

4. Fixed Deposit with scheduled Bank have been pledged to a Bank against bank guarantee issued by the Bank to the third party.

5. Information pursuant to the provisions of paragraph 3, 4C & 4D of part II of Schedule VI of the Companies Act, 1956.

A) There is no licensed or installed capacity.

i B) Particulars in respect of Raw Materials, production & Sales etc. :

6. Provision For Taxation :

(a) In accordance with the requirement under the Accounting Standard (AS-22) relating to the deferred tax, the deferred tax Assets at the year end works out to be in the region of Rs.1,98,763/- (as on 01.04.2009 Asset Rs. 31,366/-) and the same has not been recognized in the accounts.

7. Segment Reporting : Primary Segment

Based on the guiding principle given in the Accounting Standard - 17 "Segment Reporting" issued by the Central Government the Companys primary segment are Silk Textile, Financial Activities & Synthetic Organic Dyes. The above business segments have been identified considering : i) The nature of products ii) The related risks and returns iii) The internal financial reporting systems

Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Expenses", Assets and liabilities which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Assets/Liabilities".

8. In respect of the investments, in the opinion of the Board, the year end diminution value (estimated to be in the region of Rs. Nil (P.Y. - 31,09,794/-) is on account of temporary market features and these being long term investments, no provision has been deemed necessary.

9. Sundry Creditors include amount due to MICRO, Small & medium Enterprises as on 31.03.2009 - Nil (P.Y - Nil).

10. The Company has examined carrying cost of its identified Cash Generating Units (CGU) by compairing present value of estimated future cash flow from such CGU in terms of Accounting Standard 28 on impairment of assets according to which no provision for impairment is required as assets of non of C G U are impaired during the financial year ended 31st March 2010.

11. Related Party Disclosure :

(Parties with whom transactions have taken place during the year.)

Name of Related parties : Nature of Relationship

i) Enterprise Finance Limited Associates of the Company

ii) Shree Shelter Private Limited Associates of the Company

iii) Ganesh Awas Private Limited Associates of the Company

(iv) Gopal Das Sarda Key Management Person

(v) Aditya Sarda Key Management Person

(vi) Brijlata Sarda Directors relative

The above parties are related parties in the broader sense of the term and are included for making the financial statements more transparent.

12. Figures of previous year have been rearranged, regrouped, whererver necessary.