Notes to Accounts of Kush Industries Ltd.

Mar 31, 2015

(1) Disclosure as required by AS 29 "Provisions, Contingent Liability and contingent Assets" in respect of provisions as at 31st March, 2015:

(a) Uncalled liability on partly paid up Shares Rs. 2500 (P.Y. Rs.2500).

(b) Excise matters under appeal Rs. 30.42 Lacs (P.Y. Rs. 30.42 lacs)

(c) Sales Tax matter under appeal Rs. 33.00 Lacs (P.Y. Rs. 33.00 Lacs)

(d) Income Tax disallowance, matter pending under appeal Rs. 18.64 Lacs (P.Y Rs.18.64)

(e) Income Tax disallowance, matter pending under appeal Rs. 50.64 Lacs (P.Y Rs. 50.64)

(f) The Company has imported certain Plant and Machinery at concessional rate of custom duty under Export promotion Capital Goods (EPCG) scheme. The unit has been granted license for pre-decided export obligation. As such, the liability that may arise for non-fulfillment of export obligation is currently non ascertainable. The said matter is pending with Deputy Commissioner of Customs, Raigad, Maharastra.

(2) Sundry debtors and Sundry creditors are subject to Confirmations and reconciliation, if any.

(3) Provision for taxation for the year ended 31st March, 2015 has not been made in view of unabsorbed depreciation / Business losses brought forward from previous years.

(4) In the previous years, the Company had undertaken the analysis to determine impairment of assets. Accordingly, the Company already has provided for the impairment of assets in terms of Para 112, 114 and 115 of the Accounting Standard 28 in the previous years. The company is of the opinion that there are no further assets that needs to be provided for, in respect of impairment during the year 01.04.2014 to 31.03.2015.

(5) In accordance with the Accounting Standard - 22, Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India ('ICAI'), deferred tax resulting from timing differences between book and tax profits is accounted for, at the current rate of tax, the resultant deferred tax asset has been recognized as under:

(6) Previous year's figures have been regrouped/recast, wherever considered necessary to make them comparable with current year's figure.

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Mar 31, 2014

(1) Additional information pursuant to Revised Schedule VI to the Companies Act, 1956:

(2) The company has identified only one segment i.e. Textiles.

(3) Related Party Disclosures:

Disclosure required as per AS-18 (to the extent applicable) issued by the ICAI in respect of related party is as under:

List of related parties where control exists and related parties with whom transactions have taken place and relationship.

(4) Sundry debtors and Sundry creditors are subject to Confirmations and reconciliation, if any.

(5) Provision for taxation for the year ended 31st March, 2014 has not been made in view of unabsorbed depreciation / Business losses brought forward from previous years.

(6) In the previous years, the Company had undertaken the analysis to determine impairment of assets. Accordingly, the Company already has provided for the impairment of assets in terms of Para 112, 114 and 115 of the Accounting Standard 28 in the previous years. The company is of the opinion that there are no further assets that needs to be provided for, in respect of impairment during the year 01.04.2013 to 31.03.2014.

(7) Previous year''s figures have been regrouped/recast, wherever considered necessary to make them comparable with current year''s figure.

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Mar 31, 2013

(1) Disclosure as required by AS 29 "Provisions, Contingent Liability and contingent Assets" in respect of provisions as at 31st March, 2013:

(a) Uncalled liability on partly paid up Shares Rs. 2500 (P.Y. Rs.2500).

(b) Excise matters under appeal Rs. 30.42 Lacs (P.Y. Rs. 30.42 lacs)

(c) Sales Tax matter under appeal Rs. 33.00 Lacs (P.Y. Rs. 33.00 Lacs)

(d) Income Tax disallowance, matter pending under appeal Rs. 18.64 Lacs (P.Y Rs.18.64)

(e) The Company has imported certain Plant and Machinery at concessional rate of custom duty under Export promotion Capital Goods (EPCG) scheme. The unit has been granted license for pre-decided export obligation. As such, the liability that may arise for non-fulfillment of export obligation is currently non ascertainable. The said matter is pending with Deputy General of Foreign Trade, Surat.

(2) The company has identified only one segment Viz Textiles, and commission income credited is also identifying to be relating to textile segment exclusively.

(3) Sundry debtors and Sundry creditors are subject to Confirmations and reconciliation, if any.

(4) There are no small-scale Industrial undertaking creditors, which are outstanding for more than 30 days.

(5) Provision for taxation for the year under review has not been made in view of unabsorbed depreciation/Business losses brought forward from previous years.

(6) In the previous years, the Company had undertaken the analysis to determine impairment of assets. Accordingly, the Company already has provided for the impairment of assets in terms of Para 112, 114 and 115 of the Accounting Standard 28 in the previous years. Company is of the opinion that there are no further assets that needs to be provided for, in respect of impairment during the year.

(7) Previous year''s figures have been regrouped/recast, wherever considered necessary to make them comparable with current year''s figure.

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Mar 31, 2012

(1 Disclosure as required by AS 29 "Provisions, Contingent Liability and contingent Assets" in respect of provisions as at 31st March, 2012:

(a) Uncalled liability on partly paid up Shares Rs. 2500 (P.Y. Rs.2500).

(b) Excise matters under appeal Rs. 30.42 Lacs (P.Y. Rs. 30.42 lacs)

(c) Sales Ta x matter under appeal Rs. 33.00 Lacs (P.Y. Rs. 33.00 Lacs)

(d) Income Ta x disallowance, matter pending under appeal Rs. 18.64 Lacs (P.Y Rs.18.64)

(e) The Company has imported certain Plant and Machinery at concessional rate of custom duty under Export promotion Capital Goods (EPCG) scheme. The unit has been granted license for pre-decided export obligation. As such, the liability that may arise for non-fulfillment of export obligation is currently non ascertainable. The said matter is pending with Deputy General of Foreign Trade, Surat.

(2) The company has identified only one segment Viz Textiles, and commission income credited is also identifying to be relating to textile segment exclusively.

(3) Sundry debtors and Sundry creditors are subject to Confirmations and reconciliation, if any.

(4) There are no small-scale Industrial undertaking creditors, which are outstanding for more than 30 days.

(5) Provision for taxation for the year under review has not been made in view of unabsorbed depreciation/Business losses brought forward from previous years.

(6) In the previous years, the Company had undertaken the analysis to determine impairment of assets. Accordingly, the Company already has provided for the impairment of assets in terms of para 112, 114 and 115 of the Accounting Standard 28 in the previous years. Company is of the opinion that there are no further assets that needs to be provided for, in respect of impairment during the year.

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Mar 31, 2011

(1) Contingent Liability:

(a) Uncalled liability on partly paid up Shares Rs. 2500 (P.Y. Rs.2500).

(b) Excise matters under appeal Rs. 30.42 Lacs (P.Y. Rs. 30.42 lacs)

(c) Sales Tax matter under appeal Rs. 33.00 Lacs (P.Y. Rs. 33.00 Lacs)

(d) Income Tax disallowance, matter pending under appeal Rs. 18.64 Lacs (P.Y Rs.18.64)

(e) The Company has imported certain Plant and Machinery at concessional rate of custom duty under Export promotion Capital Goods (EPCG) scheme. The unit has been granted license for pre-decided export obligation. As such, the liability that may arise for non-fulfillment of export obligation is currently non ascertainable. The said matter is pending with Deputy General of Foreign Trade, Surat.

(2) The company has identified only one segment Viz Textiles, and commission income credited is also identify to be relating to textile segment exclusively.

(3) Sundry debtors and Sundry creditors are subject to Confirmations and reconciliation, if any.

(4) There are no small-scale Industrial undertaking creditors, which are outstanding for more than 30 days.

(5) Provision for taxation for the year under review has not been made in view of unabsorbed depreciation/Business losses brought forward from previous years.

(6) Part IV of Schedule VI to the Companies Act, 1956 is as per Annexure "A".

(7) Share Application money pending allotment represents the application money received prior to year 2005-06.

(8) In the previous years, the Company had undertaken the analysis to determine impairment of assets. Accordingly, the Company already has provided for the impairment of assets in terms of para 112, 114 and 115 of the Accounting Standard 28 in the previous years. Company is of the opinion that there are no further assets that needs to be provided for, in respect of impairment during the year.

(9) Previous year's figures have been regrouped/recast, wherever considered necessary to make them comparable with current figure.

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Mar 31, 2010

(1) Contingent Liability

(a) Uncalled liability on partly paid up Shares Rs. 2500 (P.Y. Rs.2500).

(b) Excise matters under appeal Rs. 30.42 Lacs (P.Y. Rs. 30.42 Lacs)

(c) Sales Tax matter under appeal Rs. 33.00 Lacs (P.Y. Rs. 33.00 Lacs|

(d) Income Tax disallowance, matter pending under appeal Rs. 18.64 Lacs (P.Y Rs.18.64)

(e) The Company has imported certain Plant and Machinery at concessional rate of custom duty under Export promotion Capital Goods (EPCG) scheme. The unit has been granted license for pre-decided export obligation. As such, the liability that may arise for non-fulfillment of export obligation is currently non ascertainable. The said matter is pending with Deputy General of Foreign Trade, Surat

(2) The Company has identified only one segment Viz Textiles, and commission income credited is also identify to be relating to textile segment exclusively.

(3) Sundry debtors and Sundry creditors are subject to Confirmations and reconciliation, if any.

(4) There are no small-scale Industrial undertaking creditors, which are outstanding for more than 30 days

(5) Provision for taxation for the year under review has not been made in view of unabsorbed depreciation/Business losses brought forward from previous years

(6) Part IV of Schedule VI to the Companies Act, 1956 is as per Annexure "A".

(7) In the previous years, the Company had undertaken the analysis to determine impairment of assets. Accordingly, the Company already has provided for the impairment of assets in terms of para 112, 114 and 115 of the Accounting Standard 28 in the previous years. Company is of the opinion that there are no further assets that needs to be provided for, in respect of impairment during the year.

(8) Previous years figures have been regrouped/re cast, wherever considered necessary to make them comparable with current years figure.