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Notes to Accounts of High Street Filatex Ltd.

Mar 31, 2015

1.1 Contingent Liabilities

(Amount in Rs.)

Particulars 2014-15 2013-14

Claims against company not acknowledged as debts* 142048.00 142048.00

(*Demand of Rs.1,42,048 raised by Land & Building Tax Deptt. which is challanged by the company in appropriate court.)

Deposited with ESI under protest against demand for the period from October 2007 to December 2008 during which period the factory was closed . This demand has been challenged by the company in appropriate court. 92035.00 92035.00

Demand of of registration fees on Land Rs 594250.

The same was deposited under protest and revision petition was filed before Revnue board, Ajmer. The appeal of the company has since been decide in favour of the company and the demand has been waived. 0.00 594250.00

1.2 Due to non availability of reliable information regarding SSI status of suppliers/ sundry creditors, information regarding outstanding toward them can not be ascertained. However the amount is not likely to be significant.

1.3 The accounting of deferred tax in terms of "Accounting Standard ( AS22) on " Accounting for Taxes on Income" results in deferred Tax Assets. However in view of sickness of the company there is no certainity of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

1.4 Segments are identified in line with the Accounting Standard 17 ( AS17) taking into account the organisation structure. Expenses which were identified were attributed directly i.e manufacturing and depreciation related to Socks segment only and other expenses were attributed on pro-rata basis of sale value.

Segment Reporting

(a) Primary Segment Information

The company''s operation primarily relates to manufacturing and trading of Knitted socks, head band and wrist band and trading in yarn. Accordingly segments have been identified in line with Accounting Standard on Segment Reporting "AS-17". Manufacturing/ trading of socks and trading of yarn are the primary segment and there is no other segment.

Secondary segment information

The company caters mainly to the need of Indian market and there is no Export sale, therefore no reportable geographical segments.

1.5 In view of paucity of funds no salary were paid to any of the Director for the financial year, however in view of directors confirmations not to avail any remuneration, no provision for liability is required.

Note 2. Share Capital

Authorised Capital was rearranged in 4,000,000 Equity Shares having nominal value of Rs. 10 each and 350,000 6% Redeemable Cumulative Non Convertible Preference Shares of Rs. 100/-each vide decision of shareholders in Annual General Meeting held on 25th September 2010.

Issued, Subscribed and Paid Up Capital was reduced from 6,470,000 Equity shares of Rs. 10/- each to 647,000 Equity Shares of Rs. 10/- each consequent to decision of reduction of share capital approved by shareholders and High Court of Rajasthan had also approved the same vide itsorder dtd 22nd April 2010.

278,000 6% Cumulative Non Convertible Preference Shares of Rs. 100/- each were issued fresh on 9th october 2010 as per decision of shareholders. Arrears of fixed cumulative dividends on preference shares as at 31st March, 2015 is 7469442/- (As at 31 March, 2014 Rs 5801442/-).

2.1 Terms / Rights attached to shares

The Company has only one class of equity shares having a par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.The Company also has only one class of Redeemable Preference Shares shares having a par value of Rs 100 per share entitled for 6 % preferential Dividend. In the event of liquidation of the Company, the holders of such shares will be entitled to receive remaining assets of the Company prior to equity share holders. The distribution will be in proportion to the number of shares held by the shareholders.The Preference shares are not redeemable before three Years ( i.e 8th October 2013) and not later than five years i.e 8th october 2015 from the date of allotment.

3.1 Pursuant to Schedule 2 of Companies Act, 2013 and rules made thereunder, residual life of all depreciable assets has been worked out in line with recommended useful life . All assets except building are past their useful life and hence their carrying value has been considered Nil. For building salvage value is estimated at Rs. 399779 (@ 3% of original cost of the building). The total useful life of building is estimated as 30 years and hence, the remaining life as on 31st March, 2014 is 11.41 years and depreciation has been adjusted accordingly. Similarly the depreciation on revalued portion of building has also been recomputed and is reduced from revaluation reserve. The opening written down value of all assets, whose residual life is nil (amounting to Rs. 1294849.14) has been reduced from opening balance of Reserve & Surplus.

3.2 The Leasehold land was allotted on 99 year lease w.e.f. 4/10/1991 by RIICO.

3.3 In terms of decision of Board of Directors, revaluation of Land and Building of the company was got done during 2008-09 by approved valuer so as to represent the true realizable value of assets. The cost of acquisition in case of land and written down value in case of building was substituted with value arrived as per revaluation report and the difference was credited to Revaluation reserve. Accordingly depreciation is calculated on revalued portion of building, As per schedule 2 of Companies act 2013, as adjusted to write off the entire value in residual life and the same has been shown reduced from revaluation reserve.

Notes:

3.4 Inventories are taken and valued at lower of cost or net realisable value as certified by the management.Cost is valued on Average rate method for raw material and FIFO method for others.

3.5 Finished goods and work in progress are valued at lower of cost or net realisable value. Cost of finished goods includes cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

4.1 In the opinion of 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.


Mar 31, 2014

1.1 Contingent Liabilities (Amount in Rs.)

Particulars 2013-14 2012-13

Claims against company not acknowledged as debts* (*Demand of Rs.1,42,048 raised by Land & Building Tax Deptt. which is challanged by the company in appropriate court. The matter has been resolved and it is supposed that deposit amount shall be received in the next F.Y. 2014-15.) 142048.00 142048.00

Deposited with ESI under protest against demand for the period from October 2007 to December 2008 during which period the factory was closed.

This demand has been challenged by the company in appropriate court. 92035.00 92035.00

Deposit of 25% of registration fees of Land for filling revision petition before Ajmer Revnue board to revise rate of registry charges to 5% instead of demand of full duty i.e. Rs. 594250/- vide decision dated 19-1-2012 and demand note dated 4-10-2012. 0.00 594250.00

1.2 Due to non availability of reliable information regarding SSI status of suppliers/ sundry creditors, information regarding outstanding toward them can not be ascertained. However the amount is not likely to be significant.

1.3 The accounting of deferred tax in terms of "Accounting Standard ( AS22) on " Accounting for Taxes on Income" results in deferred Tax Assets. However in view of sickness of the company there is no certainity of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

1.4 Segments are identified in line with the Accounting Standard 17 ( AS17) taking into account the organisation structure. Expenses which were identified were attributed directly i.e manufacturing and depreciation related to Socks segment only and other expenses were attributed on pro-rata basis of sale value.

Segment Reporting

(a) Primary Segment Information

The company''s operation primarily relates to manufacturing of Knitted socks, head band and wrist band and trading in yarn. Accordingly segments have been identified in line with Accounting Standard on Segment Reporting "AS-17". Sale of socks and yarn are the primary segment and there is no other segment.

1.5 In view of paucity of funds no salary were paid to any of the Director for the financial year, however in view of directors confirmations not to avail any remuneration, no provision for liability is required.

1.6 In Terms of Provisions of Accounting Standard 28 ( AS28) issued by The Institute of Chartered Accountants of India the company had provided for loss due to impairment of assets during 2004-05. The Value in use being uncertain due to sickness of unit, recoverable amount was reduced from carrying amount and resultant loss ( impairment loss) was debited to balance of Profit and Loss a/c .In view of high obsolence rate of machinery the board had decided to provide depreciation on original value of block of machinery.

2.1 Terms / Rights attached to shares

The Company has only one class of equity shares having a par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.The Company also has only one class of Redeemable Preference Shares shares having a par value of Rs 100 per share entitled for 6 % preferential Dividend. In the event of liquidation of the Company, the holders of such shares will be entitled to receive remaining assets of the Company prior to equity share holders. The distribution will be in proportion to the number of shares held by the shareholders.The Preference shares are not redeemable before three Years ( i.e 8th October 2013) and not later than five years i.e 8th october 2015 from the date of allotment.

3.1 Depreciation on revalued part of Building is transferred to revaluation Reserve and balance amount of depreciation is charged to Profit & Loss A/c. Total life of Building was considered 30 years and residual life as on 1-4-09 (i.e. date of revaluation) was 15 years and depreciation is computed @ 6.67% on revalued assets so as to write off the entire value in residual life of Assets.

3.2 Depreciation on Plant & Machinery is restricted up to the amount of gross block leaving a residual value of Rs 1/- 6.3 The Leasehold land was allotted on 99 year lease w.e.f. 4/10/1991 by RIICO.

3.3 In terms of decision of Board of Directors, revaluation of Land and Building of the company was got done during 2008- 09 by approved valuer so as to represent the true realizable value of assets. The cost of acquisition in case of land and written down value in case of building was substituted with value arrived as per revaluation report and the difference was credited to Revaluation reserve. Accordingly depreciation is calculated on revalued portion of building as adjusted to write off the entire value in residual life and the same has been shown reduced from revaluation reserve.

3.4 Inventories are taken and valued at lower of cost or net realisable value as certified by the management.Cost is valued on Average rate method for raw material and FIFO method for others.

3.5 Finished goods and work in progress are valued at lower of cost or net realisable value. Cost of finished goods includes cost of conversion and other cost incurred in bringing the inventories to their present location and condition.


Mar 31, 2013

1.1 Contingent Liabilities (Amount in Rs.) Particulars 2012-13 2011-12 Claims against company not acknowledged as debts* (*Demand of Rs.1,42,048 raised by Land & Building Tax Deptt. which is challanged by the company in appropriate court.) 142048.00 142048.00 Deposited with ESI under protest against demand for the period from October 2007 to December 2008 during which period the factory was closed.

This demand has been challenged by the company in appropriate court. 92035.00 92035.00 Deposit of 25% of registration fees of Land for filling revision petition before Ajmer Revnue board to revise rate of registry charges to 5% instead of demand of full duty i.e Rs. 594250/- vide descision dated 19-1-2012 and demand note dated 4-10-2012. 594250.00 0.00

1.2 Due to non availability of reliable information regarding SSI status of suppliers/ sundry creditors, information regarding outstanding toward them can not be ascertained. However the amount is not likely to be significant.

1.3 The accounting of deferred tax in terms of "Accounting Standard ( AS22) on " Accounting for Taxes on Income" results in deferred Tax Assets. However in view of sickness of the company there is no certainity of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

1.4 Segments are identified in line with the Accounting Standard 17 ( AS17) taking into account the organisation structure. Expenses which were identified were attributed directly i.e manufacturing and depreciation related to Socks segment only and other expenses were attributed on pro-rata basis of sale value.

Segment Reporting

(a) Primary Segment Information

The company''s operation primarily relates to manufacturing of Knitted socks, head band and wrist band and trading in yarn. Accordingly segments have been identified in line with Accounting Standard on Segment Reporting "AS-17". Sale of socks and yarn are the primary segment and there is no other segment.

Secondary segment information:

The company caters mainly to the need of Indian market and there is no Export sale, therefore no reportable geographical segments.

1.5 In view of paucity of funds no salary were paid to any of the Director for the financial year, however in view of directors confirmations not to avail any remuneration, no provision for liability is required.

1.6 In Terms of Provisions of Accounting Standard 28 ( AS28) issued by The Institute of Chartered Accountants of India the company had provided for loss due to impairment of assets during 2004-05. The Value in use being uncertain due to sickness of unit, recoverable amount was reduced from carrying amount and resultant loss ( impairment loss) was debited to balance of Profit and Loss a/c .In view of high obsolence rate of machinery the board had decided to provide depreciation on original value of block of machinery.


Mar 31, 2012

Note 1. SHARE CAPITAL

Authorised Capital was rearranged in 4,000,000 Equity Shares having nominal value of Rs. 10 each and 350,000 6% Redeemable Cumulative Non Convertible Preference Shares of Rs. 100/- each vide decision of shareholders in Annual General Meeting held on 25th September 2010.

Issued, Subscribed and Paid Up Capital was reduced from 6,470,000 Equity shares of Rs. 10/- each to 647,000 Equity Shares of Rs. 10/- each consequent to decision of reduction of share capital approved by shareholders & High Court of Rajasthan has approved the same vide its order dtd 22nd April 2010.

278,000 6% Cumulative Non Convertible Preference Shares of Rs. 100/- each were issued fresh on 9th October 2010 as per decision of shareholders.

Arrears of fixed cumulative dividends on preference shares as at 31 March, 2012 '2465442/- (As at 31 March, 2011 '797442/-)

The Preference shares are not be redeemable before three Years ( i.e 8th October 2013) and not later than five years i.e 8th October 2015 from the date of allotment.

Note 2: FIXED ASSETS

2.1 Depreciation on revalued part of Building is transferred to revaluation Reserve and balance amount of depreciation is charged to Profit & Loss A/c. Total life of Building was considered 30 years and residual life as on 1-4-09 ( i.e date of revaluation) was 15 years and depreciation is computed @ 6.67% on revalued assets so as to write off the entire value in residual life of Assets.

2.2 Depreciation on Plant & Machinery is restricted up to the amount of net block i.e Rs. 1455869.06/- leaving a residual value of Rs 1/-

2.3 The Leasehold land was allotted on 99 year lease w.e.f. 4-10-1991 by RIICO.

2.4 In terms of decision of Board of Directors, revaluation of Land and Building of the company was got done during 2008-09 by approved valuer so as to represent the true realizable value of assets. The cost of acquisition in case of land and written down value in case of building was substituted with value arrived as per revaluation report and the difference was credited to Revaluation reserve. Accordingly depreciation is calculated on revalued portion of building as adjusted to write off the entire value in residual life and the same has been shown reduced from revaluation reserve.

Note 3. Inventories

3.1 Inventories are taken and valued at lower of cost or net realisable value as certified by the management. Cost is valued on Average rate method for raw material and FIFO method for others.

3.2 Finished goods and work in progress are valued at lower of cost or net realisable value. Cost of finished goods includes cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

1. The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figure have accordingly been regrouped/reclassified, to correspond with the current year's classification/disclosure.

2. Contingent Liabilities 2011-12 2010-11

Claims against company not acknowledged as debts* 142048.00 142048.00

* Demand of Rs. 1,42,048 raised by Land & Building Tax Deptt. Which is challanged by the company in appropriate court. 92035.00 92035.00

(Deposited with ESI under protest against demand for the period from October 2007 to December 2008 during which period the factory was closed . This demand has been challenged by the company in appropriate court.)

3. Due to non availability of reliable information regarding SSI status of suppliers/sundry creditors, information regarding outstanding toward them can not be ascertained. However the amount is not likely to be significant.

4. The accounting of deferred tax in terms of "Accounting Standard ( AS22) on "Accounting for Taxes on Income results in deferred Tax Assets. However in view of sickness of the company there is no certainty of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

5. Segments are identified in line with the Accounting Standard 17 (AS17) taking into account the organisation structure. Expenses which were identified were attributed directly i.e manufacturing and depreciation related to Socks segment only and other expenses were attributed on pro-rata basis of sale value.

Segment Reporting

(a) Primary Segment Information

The company's operation primarily relates to manufacturing of Knitted socks, head band and wrist band and trading in yarn. Accordingly segments have been identified in line with Accounting Standard on Segment Reporting "AS-17". Sale of socks and yarn are the primary segment and there is no other segment.

Secondary segment information

The company caters mainly to the need of Indian market and there is no Export sale, therefore no reportable geographical segments.

6. In view of paucity of funds no salary were paid to any of the Director for the financial year, however in view of directors confirmations not to avail any remuneration, no provision for liability is required.

7. In Terms of Provisions of Accounting Standard 28 ( AS28) issued by The Institute of Chartered Accountants of India the company had provided for loss due to impairment of assets during 2004-05. The Value in use being uncertain due to sickness of unit, recoverable amount was reduced from carrying amount and resultant loss ( impairment loss) was debited to balance of Profit and Loss a/c .In view of high obsolence rate of machinery the board had decided to provide depreciation on original value of block of machinery.


Mar 31, 2010

1. The previous years figures have been re-worked, re grouped, re-arranged and re classified wherever necessary.

Current Year Previous Year (Rs.) (Rs.)

2. Contingent Liabilities Claims against company not

acknowledged as debts* 1,42,048.00 1.42.048.00

Demand of Rs.1,42,048 raised by Land & Building Tax Deptt. which is challenged by the company in appropriate court.

3. In the opinion of 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.

4. Loans & Advances due from Directors - Nil and due from officers Rs. Nil (Maximum amount due at any time during the year Rs. NIL)

5. As the production of the company has restarted from 19-2-2010 so depreciation on fixed assets has been provided for two months only in terms of decision of Board of Directors..

6. The loan of Stressed Assets Stabilization Fund (SASF) to whom account was transferred by IOBI was fully paid during the veer.

7. Due to non availability of reliable information regarding SSI status ofsuppliers/sundrycreditors, information regarding outstanding toward them can not be ascertained. However the amount is not likely to be significant.

6. In terms of decision of Board of Directors, revaluation of Land and Building of the company was got done during 2006-09 by approved valuers so as to represent the true realizable value of assets. The cost of acquisition in case of Land and written down value in case of Building were substituted with the value arrived as per revaluation report and the difference was credited to revaluation reserve. Accordingly depreciation is calculated on revalued portion of Building as adjusted to write off entire value in residual life and the same has been shown reduced from revaluation reserve. In terms of decision of Board of Directors the depreciation has been calculated for two months only .

9. The accounting of deferred tax in terms of "Accounting Standard ( AS22) on " Accounting for Taxes on Income" results in deferred Tax Assets. However in view of sickness of the company there is no certainty of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

10. Related Party Disclosure as per Accounting Standard (AS 18) issued by Institute of Chartered Accountants of India.

Name of The Party : Raj Kumar Sethla

Nature of Relationship : Key Promoter

Unsecured Loan op. balance : 186.89 lacks credit

Received During the Year : 107,25 lacks credit

Closing Balance as on 31-3-2010 : 294.14 lacks credit

11 Segments are identified in line with the Accounting Standard 17 (AS17) taking into account the organisation structure. Expenses which were identified were attributed directly i.e manufacturing and depreciation related to Socks segment only and other expenses were attributed on pro-rata basis of sate value.

Segment Reporting

(a) Primary Segment Information

The companys operation primarily relates to manufacturing of Knitted socks, head band and wrist band and trading in yarn. Accordingly segments have been identified in line with Accounting Standard on Segment Reporting "AS-17". Sale of socks and yam are the primary segment and there is no other segment.

12. In view of paucity of funds no salary were paid to any of the Director for the financial year, however in view of directors confirmations not to avail any remuneration, no provision for liability is required.

13. In Terms of Provisions of Accounting Standard 28 (AS28) issued by The Institute of Chartered Accountants of India the company had provided for loss due to impairment of assets during 2004-05. The Value in use being uncertain due to sickness of unit, recoverable amount has been reduced from carrying amount and resultant loss (impairment loss) was debited to balance of Profit and Loss a/c .In view of high obsolence rate of machinery the board had decided to provide depreciation on original value of block of machinery.

14. The Board of Director have approved vide its meeting dt May 30, 2009, a proposal for reduction of share capital from Rs. 6,47,00,000/- to 64,70,000. The proposal was approved by Share holders of the company at Annual General Meeting dt July 10,2009. On the basis of the approval the company has filed petition in Honble High court of Jaipur . Honble High court of Jaipur by its order no 1/2010 has passed the scheme for reduction of Capital on April 22, 2016.

15. The company has applied to The Central Excise Department for De-bonding of 100% Export oriented status on 28- 1-2010. The central excise has issued final De-bonding of their 100% EOU and LOP dt. 30-9-1994.

16. Additional Information pursuant to the provision of Schedule VI of the Companies Act 1956 for current Year.

 
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