Notes to Accounts of Flora Textiles Ltd.

Mar 31, 2015

1. GENERAL INFORMATION

FLORA TEXTILES LIMITED is a public limited company incorporate in India under the provisions of the Companies Act, 1956. The company is engaged in the business of Manufacturing of fabric.

2. Terms/Rights attached to Equity shares

The company has only one class of equity shares having par value of Rs10/- per share. Each share holder is eligible for one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion of their share holding.

3. The balance in parties accounts are subject to confirmation and reconciliation, if any. In the opinion of the management all current assets including stock in trade/sundry debtors and loans and advances in the normal course of business would realize the value atleast to the extent stated in the Balance sheet.

4. Based on information available with Company, there are no outstanding dues to enterprise under MSMED Act 2006, at the year end.

5. RELATED PARTY DISCLOSURE:

1) Name of Related Parties and description of Relationships:

a Holding companies, Subsidiaries & Fellow Subsidiaries Nil

b Associates & Joint Ventures Nil

c Individuals owning control or significant influence over the enterprise, and relatives of any such Nil individual;

d Key management Personnel Mrs Nidhi Gupta [MD] Mr Hemant Kumar Gupta [CFO]

Relatives of Key management Personnel Nil e Enterprises over which any person described in (c) or (d) is able to exercise significant influence Nil

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Mar 31, 2013

1.The Company has not accounted for Deferred Tax in accordance with the Accounting Standard 22 issued by the Institute of Chartered Accountants of India. The deferred tax asset on account of opening unabsorbed loss and unabsorbed depreciation has not been recognised as the Company is of the opinion that there is no virtual certainty of realisation of the same.

2. The balance in parties accounts are subject to confirmation and reconciliation, if any. In the opinion of the management all current assets including stock in trade/sundry debtors and loans and advances in the normal course of business would realize the value atleast to the extent stated in the Balance sheet.

3. Based on information available with Company, there are no outstanding dues to small scale undertakings as at the year end.

4. As notified by Ministry of Corporate Affairs, Revised schedule VI under the Companies act 1956 is applicable to the financial statements for the financial year commencing on or after 1st April 2011. Accordingly the financial statements for the year ended March 2012 are prepared in accordance with the Revised Schedule VI. The amounts and disclosures of the previous year have been reclassified to conform to the requirements of Revised Schedule VI.

5. The Company has only one reportable business segment namely manufacture of fabric.

6.The Company has fulfilled its export obligation against all EPCG Licences and received letters of discharge from JDGFT, Coimbatore against import of machinery .

7. RELATED PARTY DISCLOSURE:

1. RELATED PARTIES :

KEY MANAGEMENT PERSONNEL:

a. Shri V.R.Gupta-Chairman

b. Shri A.K. Gupta - Managing Director

2. RELATED PARTY TRANSACTIONS:

a. NIL

b. NIL

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Mar 31, 2012

A. Terms/Rights attached to Equity shares

The company has only one class of equity shares having par value of Rs10/- per share. Each share holder is eligible for one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion of their shareholding.

1.The Company has not accounted for Deferred Tax in accordance with the Accounting Standard 22 issued by the Institute of Chartered Accountants of India. The deferred tax asset on account of opening unabsorbed loss and unabsorbed depreciation has not been recognised as the Company is of the opinion that there is no virtual certainty of realisation of the same.

2. The balance in parties accounts are subject to confirmation and reconciliation, if any. !n the opinion of the management all current assets including stock in trade/sundry debtors and loans and advances in the normal course of business would realize the value atleast to the extent stated in the Balance sheet.

3. Based on information available with Company, there are no outstanding dues to small scale undertakings as at the year end.

4. Figures have been rounded to the nearest thousand and decimals thereof.

5. As notified by Ministry of Corporate Affairs, Revised schedule VI under the Companies act 1956 is applicable to the financial statements for the financial year commencing on or after 1st April 2011. Accordingly the financial statements for the year ended March 2012 are prepared in accordance with the Revised Schedule VI. The amounts and disclosures of the previous year have been reclassified to conform to the requirements of Revised Schedule VI.

6. The Company has only one reportable business segment namely manufacture of fabric.

7.The Company is contingently liable to a sum of Rs. 125.84 lakhs for concession in customs duty availed against import of machinery for which the company has undertaken export obligation to the extent of Rs. 2557.06 lakhs due to be performed within a period of 5 years from the date of import. This liability is secured by guarantee executed by the Vysya Bank, Catholic Syrian Bank and Andhra Bank in favour of the Government of India, for which the Company has executed Counter Guarantee to the bankers. The bankers guarantee is secured by a lieu on Fixed Deposits lakhs held by the Company with its bankers.

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Mar 31, 2010

A. OTHER INFORMATION:

a. The estimated amount of contracts remaining to be executed on Capital Accounts and not provided for accounted to Rs. NIL (Previous Year Rs.NIL)

b The Company is contingently liable to a sum of Rs. 125.84 lakhs for concession in customs duty availed against import of machinery for which the company has undertaken export obligation to the extent of Rs. 2557.06 lakhs due to be performed within a period of 5 years from the date of import. This liability is secured by guarantee executed by the Vysya Bank, Catholic Syrian Bank and Andhra Bank in favour of the Government of India, for which the Company has executed Counter Guarantee to the bankers. The bankers guarantee is secured by a lieu on Fixed Deposits of Rs. 24.56 lakhs held by the Company with its bankers.

c. Based on information available with Company, there are no outstanding dues to small scale undertakings as at the year end.

d. SEGMENT INFORMATION

According to the concept of segment reporting, we are of the opinion that the business of the company viz yarn and cloth manufacturing falls under one segment. Hence no separate statement of segment reporting is reported.

e. RELATED PARTY DISCLOSURE:

1. RELATED PARTIES:

KEY MANAGEMENT PERSONNEL:

Shri V.R. Gupta - Chairman

Shri A.K. Gupta - Managing Director

RELATIVES OF KEY MANAGEMENT PERSONNEL:

Relatives of Shri A.K.Gupta

a. Aditya Gupta Son

b. Indira Devi Gupta Wife

c. Nidhi Gupta daughter in law

d. VR Gupta Father

b. Transacting Related Party - M/s Anamika Enterprises Private Limited Relationship - Enterprise in which Relative of KMP i.e

Mrs. Anamika Kajaria has significant influence. Transactions During the Year:

a. Opening Balance (1.04.2009)- , Rs. nil

b. Sales to Anamika Enterprises - Rs. 2805.00

c. Amounts Received from same - Rs. 2805.00

d. Closing Balance (31.03.2010) -Rs. NIL

c. As per the explanations given to us, there are no operating or Financial lease.

f. The Company has non accounted for Deferred Tax in accordance with the Accounting Standard 22 issued by the Institute of Chartered Accountants of India. The deferred tax asset on account of opening unabsorbed loss and unabsorbed depreciation has not been recognised as the Company is of the opinion that there is no virtual certainty of realisation of the same.

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Mar 31, 2003

I) The estimated amount of contracts remaining to be executed on Capital accounts and not provided for accounted to Rs. NIL (Previous year Rs. Nil).

ii) The company is contingently liable in a sum of Rs. 125.84 lakhs for concession in customs duty availed against import of machinery for which the company has undertaken export obligation to the extent of Rs. 2557.06 lakhs due to be performed within a period of 5 years from the date of import. This liability is secured by Guarantee executed by the Vysya Bank, Catholic Syrian Bank and the Andhra Bank in favour of the Government of India, for which the company has executed Counter Guarantee to the Bankers. The bankers guarantee is secured by a lieu on Fixed deposits of Rs. 24.75 Lakhs held by the company with its bankers.

iii) Based on information available with Company, there are no outstanding dues to small scale undertakings as at the year end.

iv) Interest amounting to Rs. 1,2046,105/- has been reversed during the current year as it is no longer payable. The Details of as under:

Interest to Parties Reversed : Rs. 29,06,556

Interest on Term loan with

The Catholic Syrian Bank Ltd. Reversed : Rs. 91, 39, 549

v) SEGMENT INFORMATION :

There exists only Business segment. The Company is organised into two main business segments namely

Yam-Comprising of the manufacture of yarn

Cloth - Comprising of manufacture of cloth

The above business segments have been identified based on

Differing Risks and Returns Differing Production Process Differing Customer Base Internal Financial Reporting System

vi.) The Company has accounted for Deferred Tax in accordance with the Accounting Standard 22 issued by the Institute of Chartered Accounttants of India. The deferred tax asset on account of opeining unabsorbed loss and unabsorbed depreciation has not been recognised as the Company is of the opinion that there is no virtual certainty of realisation of the same.

In the current year there is Deferred tax Benefit on account of depreciation differential to the extent of Rs. 26,43575.00.

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Mar 31, 2002

A. BALANCE SHEET:

a) Term Loan from Catholic Syrian Bank is secured by equitable mortgage of the Companys land and building by deposit of title deeds and also by hypothecation of the plant and machinery, stores and spares acquired under the project for manufacture of fabric. This loan is secured by the personal guarantee of the Chairman, Managing Director and a Director of the Company.

b) Auditors remuneration consisted of Audit fee Rs. 15,000/- towards Tax Audit and Taxation Services Rs. 11,000/-

c) Tax deducted at source out of interest amounted to Rs. 36,410/- (Previous year RS. /-)

B. OTHER INFORMATION:

i) The estimated amount of contracts remaining to be executed on Capital accounts and not provided for accounted to Rs. NIL (Previous year Rs. Nil).

ii) The company is contingently liable in a sum of Rs. 125.84 lakhs for concession in customs duty availed against import of machinery for which the company has undertaken export obligation to the extent of Rs. 2557.06 lakhs due to be performed within a period of 5 years from the date of import. This liability is secured by Guarantee executed by the Vysya Bank, Catholic Syrian Bank and the Andhra Bank in favour of the Government of India, for which the company has executed Counter Guarantee to the Bankers. The bankers guarantee is secured by a lieu on Fixed deposits of Rs. 24.51 Lakhs held by the company with its bankers.

iii) Based on information available with Company, there are no outstanding dues to small scale undertakings as at the year end.

iv) Interest amounting to Rs. 706438/- charged for the year ended 31st March 2001 has been reversed during the current year as it is no longer payable.

v. SEGMENT INFORMATION:

There exists only Business segment. The Company is organised into two main business segments namely Yarn - Comprising of the manufacture of yarn Cloth - Comprising of manufacture of cloth

The above business segments have been identified based on

Differing Risks and Returns

- Differing Production Process

- Differing Customer Base

- Internal Financial Reporting System

Segment revenue, results, assets and liabilities have been accounted on the basis of their relationship to the operating activities of the segment and amounts allocated on reasonable basis.

vi. RELATED PARTY DISCLOSURE

1. RELATED PARTIES : ENTERPRISES:

a. Anamika Enterprises (P) Limited

b. Antique Industries Limited

KEY MANAGEMENT PERSONNEL :

a. Shri. V.R. Gupta - Chairman

b. Shri. A.K. Gupta - Managing Director

RELATIVES OF KEY MANAGEMENT PERSONNEL: Relatives of Shri. A.K. Gupta

a. Shri. Aditya Gupta - Son

b. Shri. P.K. Gupta - Brother

c. Shri. Rajesh Kumar Gupta - Brother

d. Shri. Pushpa Bansal - Sister

q. During the year the company has for the first time accounted for Deferred Tax in accordance with the Accounting Standard 22 issued by the Institute of Chartered Accountants of India. Consequently the Company has recognised in these Financial Statements the Deferred tax Liability amounting to Rs. 1,85,05,690.00 due to Fixed assets value differential and the same is credited to the Profit and Loss Account. The deferred tax asset on account of opening unabsorbed loss and unabsorbed depreciation has not been recognised as the Company is of the opinion that there is no virtual certainty of realisation of the same. In the current year there is Defferred tax Benefit on account of depreciation differential to the extent of Rs. 19,51,113.00.