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Notes to Accounts of Flexituff International Ltd.

Mar 31, 2016

(b) Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Each shareholder is entitled to one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2016, the amount of per share dividend recognized as distributions to equity shareholders was Nil (March 31, 2015: Rs.1).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Notes:

a. Term Loans from banks amounting to Rs. 628.40 (previous year: Rs. 970.23) and term loan from other parties amounting to Rs.189.17 (previous year: Rs. 236.85) are secured by equitable mortgage on all immovable fixed assets of the Company, hypothecation of the entire moveable machinery and other fixed assets (except specific equipment finance through GE Capital Services India) and a second charge on all current assets of the company. Above Term loans are further secured by Personal Guarantee of Shri Manish Kalani and corporate guarantee of M/S Kalani Industries Private Limited.

b. Term loans from other parties amounting to Nil (previous year: Rs 38.32) - (i) First and exclusive charge over Equipment financed through the Facility in accordance with the Deed of Hypothecation. (ii) Personal Guarantee of Mr. Manish Kalani. (iii) Corporate Guarantee of M/s Kalani Industries Private Limited.

c. Term Loan from other parties amounting to Rs. 200.00 (previous year: Nil) is secured by pari passu first charge on all current assets and pari passu second charge on entire fixed assets and further secured by personal guarantee of Mr. Saurabh Kalani and corporate guarantee of Kalani Industries Private Limited.

d. Term loan from banks amounting to Rs. 4.53 (previous year Rs. 6.32) and term loans from others amounting to Rs. 1.33 (previous year: Rs. 2.11) is secured by hypothecation of vehicles.

e. As at March 31, 2016, the Company has two foreign currency convertible bonds aggregating USD 34 million :

i) The Company has issued 9,000, 5.34% foreign currency convertible bond of USD 1,000 each aggregating to USD 9 million on December 24, 2013. The bonds are convertible at the option of bondholders into equity shares of Rs. 10 each fully paid at the conversion price of Rs.230 per share, subject to terms of issue, with fixed rate of exchange of Rs. 61.86 equal to USD 1 on January 30, 2019.

ii) The Company has issued 25,000, 5.44% foreign currency convertible bond of USD 1,000 each aggregating to USD 25 million on April 26, 2013. The bonds are convertible at the option of bondholders into equity shares of Rs. 10 each fully paid at the conversion price of Rs. 218 per share, subject to terms of issue, with fixed rate of exchange of Rs. 54.16 equal to USD 1 on April 26, 2018.

1. Current assets and loans and advance

In the opinion of the Board, the Current assets and loans and advances are approximately of the value stated, if realized in the ordinary course or business, except otherwise stated. The provision for all the known liabilities is adequate and not in excess of amount considered reasonably necessary.

2. Managerial remuneration receivable

Employee benefit expenses include Rs. 9.69 paid/payable during the year towards remuneration paid to one of its whole time director. The maximum remuneration payable under the provisions of section 197 read with Schedule V to the Companies Act, 2013 is Rs 6.41.The Company is in the process of obtaining necessary approval from shareholders for remuneration payable to one of its whole time director. Pending receipt of such approval, the excess remuneration amounting to Rs. 3.28 paid to one of its whole time director is held in trust by the said director, which is shown as recoverable under loans and advances.

3. MAT credit

The Company has an unexpired MAT credit entitlement amounting to Rs. 258.67 as at March 31, 2016 which is classified under current asset based on management’s estimation. The management believes that the unexpired MAT credit entitlement will be utilized in the near future.

4. Segment Information (AS 17)

As per Accounting Standard 17 on “Segment Reporting”, segment information has been provided under the Notes to Consolidated Financial Statement

5. Previous year figures

Previous year figures have been regrouped/ reclassified, where necessary, to conform to this year’s classification. As per our report of even date


Mar 31, 2015

A. Contingent liabilities and commitments

i. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 397.03 million (Previous Year Rs. 275.57 million).

ii. Guarantee given by Banks on behalf of the Company for Rs. 73.45 million (Previous year Rs. 47.06 million).)

iii. On account of Letter of Credit for Rs. 131.21 million (Previous year Rs. 40.36 million).

iv. Foreign Bills Discounted with Bank Rs. 287.04 million (Previous year Rs. 225.33 million).

v. Corporate Guarantee given by the Company is as under:

Sr. Given in Given on Amount favour of behalf of

1 Governor of Nanofil Rs. 0.2 million Uttarakhand Technologies (Previous Year

Pvt.Ltd., Rs. 0.2 million)

Kashipur

v. Outstanding of Taxes on account of disputes are as follows:

(a) The company filed appeal before CIT(A) / ITAT and contested Income Tax demand for the A.Y. 2004-05, 2005-06 and 2006-07 for Rs.26.19 million, Rs.22.62 million 8j Rs. 6.03 million respectively and also contested TDS demand for the A.Y.2005-06 to 2007-08 Rs. 0.71 million.

(b) The Income Tax department has filed an appeal before the M.P.High Court, challenging the order of ITAT passed in favor of Company for the A.Y.2003-04. The amount of tax and penalty is Rs 6.57 million and Rs. 1.45 million respectively.

(c) The company has contested M.P.VAT/CST. demand for F.Y. 2006-07, 2007-08, 2008- 09, 2009-10, 2010-11,2011-12 % 2012-13 for Rs. 3.85 million, Rs. 1.96 million, Rs. 1.05 million, Rs. 4.38 million, Rs.0. 92 million, Rs. 0.65 million 8j Rs.0.99 million respectively and Entry Tax demand for F.Y. 2006-07, 2007-08, 2008-09, 2009-10 $ 2010-11 for Rs. 2.42 million, Rs.2.77 million, Rs. 4.62 million, Rs. 3.72 million 8j Rs. 0.37 million respectively as per legal opinion obtained.

(d) The company has contested VAT/CST Demand for FY 2010-11, 2011-12, 2012-13,2013-14 % 2014-15 for Rs 20.55 million, Rs 8.92 million, Rs. 6.81 million, Rs 4.0 million $ Rs.2.0 million respectively at Kashipur unit.

B. In the opinion of the Board of Directors the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

C. During the year the Company has booked amount of interest subsidy of Rs.7.91 million (Previous year Rs. 13.83 million) and the same has been credited in interest paid on term loan account.

D. Segment Information (AS-17)

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements


Mar 31, 2014

A. CONTINGENT LIABILITIES AND COMMITMENTS :-

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.275.57 million (Previous Year Rs.318.02 million)

i. Guarantee given by Banks on behalf of the Company for Rs.47.06 million (Previous year Rs.79.78 million) iii. On account of Letter of Credit for Rs.40.36 million (Previous year Rs.139.98 million), iv. Foreign Bills Discounted with Bank Rs.225.33 million (Previous year Rs.354.97 million).

v. Claims against the Company/disputed liabilities not acknowledged as debts amounting to Rs. Nil (Previous year Rs.21.76 million) vi. Difference between the amount at which FCCB has been stated in the books and the amount of FCCB as calculated on the basis of rate of Foreign Currency on the date of reporting period Rs.174.74 million. (Previous year Nil)

vii. Corporate Guarantee given by the Company is as under

viii. Outstanding of Taxes on account of disputes are as follows- fa) The company filed appeal before CIT(A)/ITAT and contested Income Tax demand for the A.Y. 2004-05, 2005-06 and 2006-07 for Rs.17.14 million, Rs.1 5.39 million & Rs.6.03 million respectively and also contested TDS demand for the A.Y. 2005-06 to 2007-08 Rs.0.71 million

(b) The Income Tax department has filed an appeal before the M. P.High Court, challenging the order of ITAT passed in favor of Company for the A.Y.2003-04. The amount of tax and penalty is Rs.6.58 million and Rs.1.45 million respectively.

(c) The company has contested M.P.VAT/CST. demand for F.Y 2006-07,2007-08, 2008-09, 2009-10 & 2010-11 for Rs.3.85 million, Rs.1.96 million, Rs.1.06 million, Rs.4.38 million &Rs.0.92 million respectively and Entry Tax demand for F.Y. 2006-07,2007-08, 2008- 09, 2009-10 & 2010-11 forRs.2.41 million, Rs.2.77 million, Rs.4.62 million, Rs.3.72 million &Rs.0.38 million respectively as per legal opinion obtained

(d) The company has contested VAT/CST Demand for FY 2009-10, 2010-11 & 2011 -12 for Rs.1.74 million, Rs.23.30 million and Rs.7.82 million respectively at Kashipur unit.

D. During the year the Company has booked amount of interest subsidy of Rs.13.83 million (Previous year Rs.20.65 million) and the same has been credited in interest paid on term loan account.

E. During the year the Company has preferentially allotted 1902173 Equity shares of Rs.10/- each at a premium of Rs.220/- each through private placement to International Finance Corporation

F. The Company has fully disinvested from Satguru Polyfab Pvt. Ltd. on 02nd August 2013 hence it ceased to be subsidiary of the Company. Net loss on sale of investment of Rs.45.49 million considered in extra ordinary item

G. The Company has issued 5.44% Foreign Currency Convertible Bonds of USD 25.00 million to TPG Growth II SF Pte. Ltd. on 26th Apri 2013.As per the term of issue, the holder has an option to convert FCCBs into Equity Shares at a predetermined conversion rate of Rs.218/- per Equity Share on or before 5 years and one day.

H. Similarly Company has issued 5.34% Foreign Currency Convertible Bonds of USD 9.00 million to International Finance Corporation on 31st January 2014. As per the term of issue, the holder has an option to convert FCCBs into Equity Shares at a predetermined conversion rate of Rs.230/- per Equity Share on or before 5 years and one day.

Segment Information (AS-17)

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated

Financial Statements.

Names of related parties and description of relationship

1. Subsidiaries (i) Satguru Polyfab Pvt. Ltd. (till 02nd August 2013)

(ii) Flexiglobal Holdings Ltd., Cyprus- Wholly Owned Subsidiary (iii) Nanofil Technologies Pvt. Ltd.- Wholly Owned Subsidiary

2. Associates (i) Kalani Industries Pvt. Ltd

3. Key Management Personnel Mr. Saurabh Kalani, Mr. K K. Vijayvergiya and

Mr. Manoj Dwived

4. Relatives of Key Management Personnel Mrs. Padma Kalani,

Mr. Manish Kalani, Mr Kartikeya Kalani, Mr. Vinayak Kalani and Mrs. Kaushalya Vijayvergiya

K. Previous year figures are re-grouped or re-arranged to confirm to current year figures.


Mar 31, 2013

A. CONTINGENT LIABILITIES AND COMMITMENTS :- i. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.318.02 million (Previous Year Rs.57.43 million).

ii. Guarantee given by Banks on behalf of the Company for Rs.79.78 million (Previous year Rs.73.10 million).

iii. On account of Letter of Credit for Rs.139.98 million ( Previous year Rs.176.37 million).

iv. Foreign Bills Discounted with Bank Rs. 354.97 million ( Previous year Rs.329.51 million).

v. Claims against the Company /disputed liabilities not acknowledged as debts amounting to Rs.21.76 million ( Previous year Rs.30.70 million ).

vi. Corporate Guarantee given by the Company is as under :

vii. Outstanding of Taxes on account of disputes are as follows- (a) The company filed appeal before CIT(A) / ITAT and contested Income Tax demand for the A.Y. 2004-05, 2005-06 and 2006-07 for Rs.17.14 million, Rs.15.39 million & Rs.6.03 million respectively and also contested TDS demand for the A.Y.2005-06 to 2007-08 Rs.0.71 million.

(b) The Income Tax department has filed an appeal before the M.P.High Court, challenging the order of ITAT passed in favor of Company for the A.Y.2003-04. The amount of tax and penalty is Rs.6.58 million and 1.45 million respectively.

(c) The company has contested M.P.VAT. demand for F.Y. 2007-08 , 2008-09 & 2009-10 for Rs.1.96 million, Rs.1.06 million & Rs.4.30 million respectively and Entry Tax demand for F.Y. 2006-07 , 2007-08, 2008-09 and 2009-10 for Rs.10.86 million, Rs.1.68 million, Rs.2.90 million & Rs.3.51 million respectively as per legal opinion obtained.

(d) The company has contested VAT Demand for FY 2009-10, 2010-11& 2011-12 for Rs.0.10 million, Rs.2.75 million and Rs.7.82 million respectively at Kashipur unit.

B. In the opinion of the Board of Directors the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

C. During the year the Company has booked the amount of interest subsidy of Rs.20.65 million ( Previous year 23.08 million ) and the same has been credited in interest paid on term loan account.

D. During the year the Company has preferentially allotted 1227273 Equity share of Rs.10/- each at a premium of Rs.210/- each through private placement to TPG Growth II SF Pte. Ltd.

E. Insurance Claim pertaining to damage on 01.10.2012, to the factory premises at Kashipur including stock, building, plant & machinery etc Rs.13.96 million is provided. Claim from Insurer is yet to be settled, against which sufficient insurance coverage is available.

F. Segment Information (AS-17)

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.


Mar 31, 2012

1.1 7554053 Shares out of the issued, subscribed and paid up share capital were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium and Reserves (Previous year 7554053)

1.2 NIL Shares out of the issued, subscribed and paid up share capital were allotted on conversion of Fully convertible Debentures and exercise of warrants. (Previous year 5986492)

1.3 The Company has reserved issuance of 1075000 (Previous year 1075000) Options under Employees Stock Option Scheme (ESOP) 2011 for offering to eligible employees of the Company. The Company has granted 1068500 Options to the eligible employees at a price of Rs. 95/- per option. The options would vest over a maximum period of 5 years. During the year 2011- 12, 19700 options are exercised by the option holders (Previous year NIL).

Note 2

A. CONTINGENT LIABILITIES AND COMMITMENTS

i. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 57.43 million (Previous Year Rs. 8.47 million).

ii. Guarantee given by Bank on behalf of the Company for Rs.73.10 million (Previous year Rs. 30.38 million).

iii. Outstanding liabilities on account of Letter of Credit for Rs. 176.37 million (Previous year Rs. 53.05 million).

iv. Foreign Bills Discounted with Bank Rs.329.51 million ( Previous year Rs.77.95 million).

v. Forward purchase contracts remaining outstanding Rs. NIL against export sales (Previous year Euro 0.47 million and GBP 1.19 million ). The mark to market profit/(loss) of Rs.0.58 million (Previous year profit Rs.11.21 million) has been provided in the accounts.

vii. Outstanding of Taxes on account of disputes are as follows:

(a) The company filed appeal before CIT(A)/ITAT and contested the disputed Income Tax demand for the A.Y. 2004-05, 2005-06 and 2006-07 for Rs.17.13 million, Rs.15.39 million & Rs. 6.03 million respectively and also contested disputed of TDS demand for the A.Y.2005-06 to 2007-08 Rs.0.71 million .

(b) The company has contested disputed of M.P.C.T. demand for F.Y. 2005-06, 2007-08 & 2008-09 for Rs. 0.03 million , 1.96 million & 1.06 million respectively & Central Sales Tax demand for Rs. 1.96 million for the F.Y 2005-06 and Entry Tax demand for Rs. 1.67 million and 2.89 million for the F.Y 2007-08 and 2008-09 respectively as per legal opinion obtained.

(c) The company has contested disputed of Commercial Tax for FY 2010-11 for Rs 1.55 million at Kashipur unit.

viii. The Income Tax department has filed an appeal before the M.P.High Court, challenging the order of ITAT passed in favor of Company for the A.Y.2003-04. The amount of tax and penalty is Rs 6.58 million and 1.45 million respectively.

B. In the opinion of the Board of Directors the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

C. Earning per share (AS-20)

(a) Net Profit after Tax

(As per Profit / Loss Account) Number of fully paid up equity share

Rs. 343.60 million (Previous year Rs.274.36 million) 21731810 Equity Share of Rs. 10/- each (Previous year 17212110 EquityShares)

(b) Weighted average number of equity Shares outstanding during the year 19317368 Equity Shares

(Previous year 12650765 Equity shares)

(c) Effects of potential dilutive equity share

623292 Equity Shares

(Previous year 4078354 Equity Shares)

(d) Weighted average number of equity in computing diluted earning per share

19940660 Equity Shares

(Previous year 16729119 Equity Shares)

(e) Earning per share: – Basic [(a)/(b)]

Rs. 17.79

(Previous year Rs. 21.69)

– Diluted [(a)/(d)]

Rs. 17.23

(Previous year Rs. 16.40)

D. During the year the Company has booked the amount of interest subsidy of Rs.23.08 million (Previous year 11.07 million) and the same has been credited in interest paid on term loan account.

F. Insurance Claim pertaining to damage to the factory premises at Kasipur including stock, building, plant & machinery etc Rs 40.00 million (app.) is yet to be settled against which sufficient insurance coverage is available.The loss on account of this is provided in the books by valuation in case of inventory and repairs expenses in case of Plant & Machiney. Similar claim money stolen of Rs 2. 03 million is also yet to be settled against which sufficient insurance coverage is available. Loss of cash has been provided in the books.

G. Segment Information (AS-17) : As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

Names of related parties and description of relationship:

1. Subsidiaries

(i) Satguru Polyfab Pvt. Ltd., Gandhidham- Subsidiary (ii) Flexiglobal Holdings Ltd., Cyprus- Wholly Owned Subsidiary (iii) Nanofil Technologies Pvt. Ltd.- Wholly Owned Subsidiary

2. Associates

(i) Kalani Industries Pvt. Ltd. (ii) Entertainment World Developers Limited,

3. Key Management Personnel Mr. Manish Kalani

4. Relatives of Key Management Personnel Mr. Saurabh Kalani

I. Prior period item :

The sum of Rs. NIL ( Previous year Rs. 4.42 million) MAT Credit debited to Other Expenses as Net Prior Period item.

J. Previous year figures are re-grouped or re-arranged to confirm to current year figures


Mar 31, 2011

A. CONTINGENT LIABILITIES NOT PROVIDED FOR:

i. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 8.47 million (Previous Year Rs. 20.19 million)

ii. Guarantee given by Bank on behalf of the Company for Rs.30.38 million {Previous year Rs.25.60 million)

iii. Outstanding liabilities on account of letter of credit for Rs.53.05 million (Previous year Rs. 37.70 million).

iv. Foreign Bills Discounted with Bank Rs.77.95 million (Previous year Rs. 153.58 million).

v. Forward purchase contracts remaining outstanding equivalent to Euro 0.47 million and GBP 1.19 million against export sales (Previous year NIL). The marked to marked profit of Rs.11.21 million (Previous year Nil) has been provided in the accounts.

vi. Corporate Guarantee given by the Company is as under: Sr. GIVEN IN FAVOUR OF GIVEN ON BEHALF OF AMOUNT (Rs. in million)

1 Customs & Excise Department Entertainment World Developers Limited, Rs.4.55 million Mumbai (Previous Year Rs.4.55 million )

2 State Bank of Patiala Satguru Polyfab Pvt. Ltd., Gandhidham Rs.60.00 million (Previous Year Rs.60.00 million)

3 Governor of Uttarakhand Nanofil Technologies Pvt.Ltd., Kashipur Rs.0.20 million (Previous Year Nil)

vii. Outstanding of Taxes on account of disputes are as follows-

The company filed appeal before CIT(A)/ITAT and contested the disputed Income Tax demand for the A.Y 2004-05 and 2005- 06 for Rs.7.00 million & Rs.2.66 million respectively and also contested disputed of TDS demand for the A.Y.2005-06 to 2007- 08 Rs.0.71 million, A.Y.2009-10 Rs. 1.58 million and also contested disputed of M.P.Sales Tax demand for Rs. 0.02 million & Central Sales Tax demand for Rs. 1.96 million for the A.Y 2005-06 and Entry Tax demand for Rs. 1.68 million for the A.Y 2007- 08 as per legal opinion obtained.

viii. The Income Tax department has filed an appeal before the M.P.High Court, challenging the order of ITAT passed in favor of Company for the A. Y.2003-04. The amount of tax and penalty is Rs 6.58 million and 1.45 million respectively.

B. In the opinion of the Board of Directors the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

C. To company with the requirement of the Micro, Small and Medium Enterprises Development Act 2006, the company requested its suppliers to confirm whether they are covered as Micro, Small or Medium enterprises as is defined in the said Act. Based on the confirmation received, the Company has recognized them for the necessary treatment as provided under the Act, from the date of receipt of such confirmations and there is no default in payment to such enterprises as specified in the said Act, However, the amounts outstanding as well as interest applicable are insignificant and hence not separately discounted.

D. Out of 15,00,000 warrants issued to M/s. Kalani Industries Private Limited Indore on 10th January, 2008 @ Rs.118/- per warrant, 10,68,000 warrants (previous year 4,32,000 warrants) have been converted into equivalent number of fully paid-up equity shares during the year on receipt of unpaid amount.

E. 92 Nos. of Zero Percent Fully Convertible Debentures of Rs. 5.0 million each issued to M/s Clearwater Capital Partners (Cyprus) Limited, Cyprus are converted into 4486492 equity shares @102.53 per share during the year.

F. During the period the Company has booked the amount of interest subsidy of Rs.11.07 million (Previous year 23.31 million) and the same has been credited in interest paid on term loan account.

G. Segment Information (AS-17)

The Company is principally engaged in the business of Manufacturing of HD/PP Woven sacks and FIBC/Jumbo Bags. Accordingly there is no reportable segment as per Accounting Standard No. 17 issued by Institute of Chartered Accountant of India on segment reporting.

Notes :

1 The Cash Flow Statement has been prepared in indirect method with corresponding adjustment in Assets & Liabilities.

2 Cash & Cash Equivalents represent Cash & Bank Balances which are short-term in nature.


Mar 31, 2010

A. CONTINGENT LIABILITIES NOT PROVIDED FOR:

i. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 20.19 million (Previous Year Rs.9.07 million)

ii. Guarantee given by Bank on behalf of the Company for Rs. 25.60 million (Previous year Rs. 9.86 million)

iii. Outstanding liabilities on account of letter of credit for Rs. 37.70 million (Previous year Rs. 76.06 million).

iv. Foreign Bills Discounted with Bank Rs.153.58 million (Previous year Rs.241.73 million).

v. Forward purchase contracts equivalent to USD 11.23 million against import of raw material (Previous year NIL)

vii. Outstanding of Taxes on account of disputes are as follows- The company filed append before CIT(A) and contested the disputed Income Tax demand for the A. Y. 2003-04, 2004-05 and 2005-06 fir Rs. 2.10 milion, Rs. 7.00 milion & Rs. 2.66 milion respectively and also contested disputed M.P. Sales Tax demand for Rs. 0.02 milion and Central Tax demand for Rs. 1.96 milion for the A.Y 2005-06 as per legal opinion obtained.

B. In the opinion of the Board of Directors the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

C. To company with the requirement of the Micro, Small and Medium Enterprises Development Act 2006, the company requested its suppliers to confirm whether they are covered as Micro, Small or Medium enterprises as is defined in the said Act. Based on the confirmation received, the Company has recognized them for the necessary treatment as provided under the Act, from the date of receipt of such confirmations and there is no default in payment to such enterprises as specified in the said Act, However, the amounts outstanding as well as interest applicable are insignificant and hence not separately discounted.

D. Out of 15,00,000 warrants issued to M/s. Kalanii Industries Private Limited Indore on 10th January, 2088 @ Rs. 118/- per warrant, 2,09,000 partly paid-up warrants (previous year 2,23,000 warrants) have been converted into equivalent number of fully paid-up equity shares during the year on receipt of unpaid amount. Balance 10,68,000 share warrants are to be converted into equity shares prior to the fresh issue of equities to the public.

E. 92 Nos. of Zero Percent Fully Convertible Debentures of Rs. 5.0 million each issued to M/s Clearwater Capital Partner (Cyprus) Limited, Cyprus are pending for conversion mino equity shares.

F. During the year under review company has incorporated one wholly owned subsidiary in the name of Nanofil Technologies Private. Limited, Kashipur.

G. During the year the Company has written off earlier years' of Rs. 4.91 million depreciation on Plant & Machinery on account of receipt of capital subsidy of Rs. 18.50 million.

H. During the year the Company has received interest subsidy of Rs. 23.31 million and the same has been credited in interest paid on term loan account.

I. Segment Information (A5-17)

The Company is principally engaged in the business of Manufacturing of HD/PP Woven sacks and FIBC/Jumbo Bags. Accordingly there is no reportable segment as per Accounting Standard No. 17 issued by Institute of Chartered Accountant of _ India on segment reporting.

J. Previous year figures are re-grouped or re-arranged to confirm to current year figures.