Notes to Accounts of K-Lifestyle & Industries Ltd.

Mar 31, 2015

1. Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

2. There is no payment due to small scale industries.

3. Deferred tax Assets / Liabilities has been provided in a accordance with the Accounting Standard-22 - "Accounting for taxes on income" issued by the ICAI applicable with effect from 1st April 2001.The Deferred tax Assets/ (Liabilities) as on 31st March, 2015 amounting to 3985.57 Lacs is the tax on the difference between the book depreciation and tax depreciation.

4. Current Assets, Loans & Advances are approximately of the value stated, if realized in the ordinary course of business.

5. The figures of the previous year are regrouped / rearranged whenever necessary to correspond with current year figure.

6. 1. AS-18 Related Party Disclosure: Nil

2. Other parties with whom the company has entered into transaction during the year.

i) Associates where key management personnel and their relatives have significant influence;- Nil

ii) Key Management Personnel:- Shivpratap Sitaram Jolly (Managing Director)

iii) Relative of Key Management Personnel:- Nil

7. Contingent Liabilities and Commitments (to the extent not provided for) :

(Rs.in Lacs)

Particular As at 31st As at 31st March 2015 March 2014

(i) Contingent Liabilities :

(a) Claims against the company not acknowledge as debt

(b) Guarantees

(i) Bank Guarantee

(ii) Corporate Guarantee Given :

(c ) Other money for which the company is contingently liable : 12895.00 12895.00

b 20 550.00

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Mar 31, 2014

''Secured by 1st Charge on all Fixed Assets both movable & immovable on paripassu basis and Personal guarantee of promoters/directors of the Company.

** Secured by Mortgage of property owned by two relative of directors (Terms of Repayment 5 Years)

***Accumulated interest facility under CDR machanism on Working Capital Loan.

*Secured by first charge on all Current Assets & Second charge on pari passu basis with other banks and personal guarantee of Promoters/Directors [Terms of Repayment 1 Years (Renewal every year)]

"Accumulated interest facility under CDR machanism on Term Loan

1. NOTES ON ACCOUNTS :

(a) There is no payment overdue to small-scale industries.

(b) The balance of advances, debtors and creditors are confirmed by majority of parties and efforts are being made for obtaining confirmations from remaining parties

(c) CENVAT: Capital expenditure and raw materials have been taken at net value after adjusting cenvat, wherever applicable as per guidelines issued by The Institute of Chartered Accountants of India..

(d) In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated, if realised in the ordinary course of business, the provisions for all known liabilities are adequate and not in excess than reasonably necessary.

2 Contingent Liabilities and Commitments (to the extent not provided for) :

(Rs. in Lacs)

Particular As at As at 31st March, 2014 31st March, 2013

(i) Contingent Liabilities :

(a) Claims against the company not acknowledge as debt - -

(b) Guarantees given by the Company 518.00 548.75

(c) Corporate Guarantee Given 3840.00 3840.00

Notes: Figures in brackets represent corresponding amount of previous year.

(3) Figures of previous year have been re-grouped/re-arranged wherever necessary.

(4) The company has only one business Segment that is "Textile" and hence Segment reporting as required under AS-17 issued by ICAI is not applicable.

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Mar 31, 2013

(a) There is no payment overdue to small-scale industries.

(b) The balance of advances, debtors and creditors are confirmed by majority of parties and efforts are being made for obtaining confirmations from remaining parties

(c) CENVAT: Capital expenditure and raw materials have been taken at net value after adjusting cenvat, wherever applicable as per guidelines issued by The Institute of Chartered Accountants of India..

(d) In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated, if realised in the ordinary course of business, the provisions for all known liabilities are adequate and not in excess than reasonably necessary.

(e) Some of the banker of the company has restructure the loan where by interest w.e.f 1/1/2012 to 31/03/2013 has been converted in to FITL at the rate approved by the bank at the time of restructuring

(f) Technology up gradation and Modernisation of plant and machinery:- To keep pace with the developments in the Textile Sector, the company set up an in house Expert Group to suggest measures for Technology up gradation and Modernisation of Plant and Machineries in the units. As per their recommendations, old machines including Ring Frames, requiring huge expenditure towards repairs and maintenance consuming high power with low out put have been identified and shifted to workshop/godowns for appropriate action.

(g) Figures of previous year have been re-grouped/re-arranged wherever necessary.

(h) THE COMPANY HAS ONLY ONE BUSINESS SEGMENT THAT IS "TEXTILE" AND HENCE SEGMENT REPORTING AS REQUIRED UNDER AS-17 ISSUED BY ICAI IS NOT APPLICABLE.

(i) AS-18 RELATED PARTY DISCLOSURE:

Related party disclosures as required by AS-18 "Related Party Disclosures" are given below. [Related parties are as identified by the Company and relied upon by the Auditors]:

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Mar 31, 2012

A) There is no payment overdue to small-scale industries.

b) The balance of advances, debtors and creditors are confirmed by majority of parties and efforts are being made for obtaining confirmations from remaining parties

c) CENVAT : Capital expenditure and raw materials have been taken at net value after adjusting cenvat, wherever applicable as per guidelines issued by The Institute of Chartered Accountants of India..

d) In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated, if realised in the ordinary course of business, the provisions for all known liabilities are adequate and not in excess than reasonably necessary.

e) Contingent Liabilities and Commitments (to the extent not provided for) :

(Rs in Lacs)

Particular As at 31st March 2012 As at 31st March 2011

(i) Contingent Liabilities :

(a) Claims against the company not acknowledge as debt

(b) Guarantees given by the Company 36.75 1.41

(c) Corporate Guarantee Given 3840.00 3840.00

Notes: Figures in brackets represent corresponding amount of previous year.

f) Figures of previous year have been re-grouped/re-arranged wherever necessary.

g) The company has only one business Segment that is "Textile" and hence Segment reporting as required under AS-17 issued by ICAI is not applicable.

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Mar 31, 2011

1. Retirement benefits:

(a) Provident fund has been paid regularly in time by the company

(b) Gratuity & Leave Encashment is accounted for in cash basis as and when paid.

2. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes as a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged.

3. The company has only one business Segment that is "Textile" and hence Segment reporting as required under AS-17 issued by ICAI is not applicable.

4. AS-18 Related Party Disclosure:

Related party disclosures as required by AS-18 "Related Party Disclosures" are given below. [Related parties are as identified by the Company and relied upon by the Auditors]:

A. List of Related Parties.

1. Parties where control exists: Nil

2. Other parties with whom the company has entered into transaction during the year.

i) Associates where key management personnel and their relatives have significant influence; - Nil

ii) Key Management Personnel: -

a. S.P.JOLLY Managing Director

iii) Relative of Key Management Personnel: - Nil

5. AS-19 Leases

Company has not taken any Assets on Lease basis

6. AS-22 Accounting for taxes on Income:

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provision of the Income Tax Act, 1961, and based on expected outcome of assessment / appeals. Deferred tax is recognised on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

7. There is no payment overdue to small-scale industries.

8 . The balance of advances, debtors and creditors are confirmed by majority of parties and efforts are being made for obtaining confirmations from remaining parties

9. CENVAT: Capital expenditure and raw materials have been taken at net value after adjusting cenvat, wherever applicable as per guidelines issued by The Institute of Chartered Accountants of India..

10. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated, if realised in the ordinary course of business, the provisions for all known liabilities are adequate and not in excess than reasonably necessary.

11. Contingent liabilities: Bank Gurantees of Rs 39.14 Cr.

12. Figures of previous year have been re-grouped/re-arranged wherever necessary.

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Mar 31, 2010

1. The expenditure on research and development activities as certified by the management has been taken into account.

2. Retirement benefits:

(a) Provident fund has been paid regularly in time by the company

(b) Gratuity & Leave Encashment is accounted for in cash basis as and when paid.

3. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes as a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to revenue.

4. The company has a single business segment namely "Textiles". Hence segment reporting as required under AS-17 issued by ICAI and made mandatory w.e.f 01/04/2001 for certain business enterprises is not applicable in case of company

5. AS-18 Related Party Disclosure:

Related party disclosures as required by AS-18 "Related Party Disclosures" are given below. [Related parties are as identified by the Company and relied upon by the Auditors]:

A. List of Related Parties.

1. Parties where control exists: Nil

2. Other parties with whom the company has entered into transaction during the year.

i) Associates where key management personnel and their relatives have significant influence; - Nil

ii) Key Management Personnel: -

a. S.P.JOLLY Managing Director

iii) Relative of Key Management Personnel: - Nil

6. AS-19 Leases

Company has not taken any Assets on Lease basis

7. AS-22 Accounting for taxes on Income:

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provision of the Income Tax Act, 1961, and based on expected outcome of assessment / appeals.

Deferred tax is recognised on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

8. There is no payment overdue to small-scale industries.

9. The balance of advances, debtors and creditors are confirmed by majority of parties and efforts are being made for obtaining confirmation from remaining parties

10. CENVAT: Capital expenditure and raw materials have been taken at net value after adjusting cenvat, wherever applicable as per guidelines issued by The Institute of Chartered Accountants of India.

11. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated, if realised in the ordinary course of business, the provisions for all known liabilities are adequate and not in excess than reasonably necessary.

12. Contingent liabilities: Bank Gurantees Rs 48.75 Lacs

13. Figures of previous year have been re-grouped/re-arranged wherever necessary.