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Notes to Accounts of Oxford Industries Ltd.

Mar 31, 2014

A) Previous years figures have been regrouped or rearranged, wherever necessary, to conform to current years'' classification.

b) Contingent Liabilities

(Rupees in lacs) Particulars 2013-14 2012-13

i) Claims against the Company not acknowledged as debts. NIL 13.55

ii) Income Tax matter relating to Ass. Year 2006-07 7.75 7.75

iii) VAT appeal relating to year 2008-09 13.87 Nil

iv) The Company, earlier having its plant at Gujarat Industrial Development Corporation (GIDC), Ankleshwar, was required to contribute towards equity of Bharuch Eco Aqua Infrastructure Ltd. (BEAIL), a company floated by GIDC and GPCB for implementing an effluent treatment and disposal system in GIDC, Ankleswar. BEAIL requires all member-companies to give a counter guarantee in favour of GIDC for loans sanctioned by financial institutions to BEAIL and guaranteed by GIDC. This counter-guarantee has been issued by the Company. However, no liability has been materialized as on 31st March 2014 due to this counter guarantee provided to GIDC. The Company will take necessary steps for withdrawal of this counter guarantee as it does not have any plant now in GIDC, Ankleswar.

c) Auction of Manufacturing Facilities of the company under SARFAESI Act, 2002 and Recovery case in DRT.

Indian Bank (Lead Bank) auctioned both the facilities of the company i.e. weaving unit and process house at Ankleshwar, under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) in February, 2012. Further, Indian Bank has filed a case in Debt Recovery Tribunal (DRT) Mumbai for recovery of dues which is going on.

d) Impairment of Assets

In opinion of the management, none of the assets of the company are required to be further Impaired as on the date of the balance sheet in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India on "Impairment of Assets".

e) Secured Loans

The Term Loans & Working Capital Loans from banks were/are secured by:

i. Pari passu first charge on fixed assets situated at Plot No. 5901/2, GIDC, Ankleshwar, Gujarat state, in favour of IDBI and Indian Bank and second charge thereon in favour of Indian Bank Consortium.

ii. Pari passu first charge on fixed assets situated at Plot No. 3608, GIDC, Ankleshwar, Gujarat state, in favour of Indian Bank Consortium and second charge thereon in favour of IDBI and Indian Bank.

iii. Personnel Guarantee of the promoter directors namely Shri Mazher N. Laila, Shri Salim T. Shahpurwala and Shri Shabbbir N. Laila.

iv. Pledge of promoter Director''s shareholding of 629381 shares in Oxford Industries Ltd.

v. Corporate Guarantee of Kachins Textiles Ltd., Panoli, Ankleswar.

vi. Pari passu first charge favouring Consortium Banks on Continuous Bleaching Range (CBR) machine for WCTL/FITL.

vii Hypothecation of inventories including consumable spares and book debts in respect of working capital facilities including WCTL and FITL, which are further secured by pari passu first charge by way of equitable mortgage of all fixed assets at Plot No. 3608, GIDC, Ankleshwar, Gujarat state.

(Note: Indian Bank (Lead Bank) had auctioned both the manufacturing facilities of the company i.e. Weaving unit situated at plot no. 3608 and Process House situated at plot no. 5901/2, at GIDC Ankleshwar in February 2012. Charges relating to point no. (i), (ii) and (vi) above have been satisfied during the year).

f) Interest On Secured Loan

As already reported, Indian Bank (Lead Bank) had exercised its enforcement right under SARFAESI Act, 2002 and auctioned both the facilities of the company i.e. weaving unit and process house at Ankleshwar in February, 2012. Indian Bank has filed a case in Debt Recovery Tribunal(DRT), Mumbai, which is going on. In view of this, Interest on secured loan from consortium of banks for the year of Rs. 589.66 lacs (Previous Year 514.73 lacs) cumulative interest as on 31st March 2014 of Rs. 2171.24 lacs (Previous Year Rs. 1581.58 lacs) has not been charged to revenue.

Note: Due to inadequacy of profits, managerial remuneration is paid as per Schedule XIII read with section 198 and other applicable provisions of the Companies Act, 1956 and hence no computation is given in the note.

i) Current Assets, loans & advances.

i) In the opinion of the Board of Directors, all current assets, loans & advances have a value on realisation in ordinary course of the company''s business, which is at least equal to the amount at which they are stated in Balance Sheet unless otherwise stated.

ii) The court case which was pending before Hon''ble Gujarat High Court, Ahmedabad, against Dakshin Gujarat Vii Company Ltd. (DGVCL) to refund the deposit of Rs.15.95 lacs had been pronounced in favour of the Company. But DGVCL has filed an appeal with Hon''ble Division Bench of Gujarat High Court, Ahemdabad, against this order which is pending.

iii) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and various others Debit/Credit balances including Bankers/Lenders/lnstitutions/Companies are subject to confirmation.

iv) The Company had placed fixed deposits with Oriental Bank of Commerce against L.C. margins. As per intimation received from the Bank, the same shall be apportioned on pro-rata basis between the bank and ARCIL against outstanding liabilities. No information has been received by the company on such apportionment.

j) Export incentives in form of DEPB Licence Entitlement/Duty Drawback at the end of the year are recognized at Rs. Nil ( P.Y. Nil)

k) Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable Preference Shares (that were already converted into equity shares as per the terms) for the year ended on 31-03-2001 Rs.18.00 lacs, & for the year ended on 31-03-2002 Rs.4,09,315 /- were not provided for in the books of accounts due to inadequacy of profit in 2001-02 and losses in 2002-03. This position remains the same as on 31.03.2014.

l) During the year, the company has capitalized borrowing costs amounting to Rs. NIL/- (Previous Year Rs.NIL) attributable to the acquisition or construction of fixed assets.

m) Deferred Tax: The net Loss of the Company (as per the provisions of the Income-tax Act, 1961) for financial years 2007-08, 2008-09, 2009-10 and 2010-11 were 319.60 Lacs, 933.73 Lacs,15.24 Lacs, 64.29 Lacs respectively. Further, in opinion of the management, given the present state of affairs, it is uncertain whether the operations of the Company would result in taxable income in the near future. As per the guidelines provided by Accounting Standard (''AS'') 22 issued by the Institute of Chartered Accountants of India, deferred tax assets should be recognized only in case that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Accordingly, the company has not recognized any Deferred Tax Asset as at 31st March 2014. As a matter of prudence the management has provided for Deferred Tax Liability as on that date.

n) Dues to Micro and Small Enterprises (SME):

In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, (''SME Act'') the outstanding payable to Micro and Small enterprises, as defined under the SME Act, are required to be disclosed in the prescribed format. However, such Enterprises are required to be registered under the SME Act. In the absence of the information about registration of the Enterprises as at 31s1 March 2014, the required information could not be furnished. However, the management is of the opinion that the company has not received any claim for overdue interest from such suppliers during the year.

o) The company''s objects mainly confined to manufacturing and selling of textile fabrics in India. Hence disclosure requirements of Accounting Standard 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable to the company.


Mar 31, 2013

A) Previous years figures have been regrouped or rearranged, wherever necessary, to conform to current years'' classification.

b) Auction of Manufacturing Facilities of the company under SARFAESI Act, 2002 and Recovery case in DRT.

Indian Bank (Lead Bank) auctioned both the facilities of the company i.e. weaving unit and process house at Ankleshwar, under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) last year. Further, Indian Bank has filed case in Debt Recovery Tribunal (DRT) Mumbai for recovery of dues.

c) Impairmentof Assets

In opinion of the management, none of the assets of the company are required to be further Impaired as on the date of the balance sheet in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India on "Impairment of Assets".

d) Secured Loans

The Term Loans & Working Capital Loans from banks were / are secured by:

i. Pari passu first charge on fixed assets situated at Plot No. 5901/2, GIDC, Ankleshwar, Gujarat state, in favour of IDBI and Indian Bank and second charge thereon in favour of Indian Bank Consortium.

ii. Pari passu first charge on fixed assets situated at Plot No. 3608, GIDC, Ankleshwar, Gujarat state, in favour of Indian Bank Consortium and second charge thereon in favour of IDBI and Indian Bank.

iii. Personnel Guarantee of the promoter directors namely Shri Mazher N. Laila, Shri SalimT. Shahpurwala and Shri Shabbbir N. Laila.

iv. Pledge of promoter Director''s shareholding of 629381 shares in Oxford Industries Ltd.

v. Corporate Guarantee of Kachins Textiles Ltd., Panoli, Ankleswar.

vi. Pari passu first charge favouring Consortium Banks on Continuous Bleaching Range (CBR) machine for WCTL/FITL.

vii. Hypothecation of inventories including consumable spares and book debts in respect of working capital facilities including WCTL and FITL, which are further secured by pari passu first charge by way of equitable mortgage of all fixed assets at Plot No. 3608, GIDC, Ankleshwar, Gujarat state.

e) Interest On Secured Loan

As already reported, Indian Bank (Lead Bank) had exercised its enforcement right under SARFAESI Act, 2002 and auctioned both the facilities of the company i.e. weaving unit and process house at Ankleshwar last year. Indian Bank has filed a case in Debt Recovery Tribunal, Mumbai. In view of this, Interest on secured loan from consortium of banks for the year of Rs. 514.73 lacs (Previous Year 569.98 lacs) cumulative interest as on 31 st March 2013 of Rs. 1581.58 lacs (Previous Year Rs. 1066.85 lacs) has not been charged to revenue.

i) Current Assets, loans & advances.

i) In the opinion of the Board of Directors, all current assets, loans & advances have a value on realisation in ordinary course of the company''s business, which is at least equal to the amount at which they are stated in Balance Sheet unless otherwise stated.

ii) The court case which was pending before Hon''ble Gujarat High Court, Ahmedabad, against Dakshin Gujarat Vij Company Ltd. (DGVCL) to refund the deposit of Rs.15.95 lacs has been pronounced in favour of the Company. But the Company has come to know that DGVCL has filed an appeal with Hon''ble Division Bench of Gujarat High Court, Ahmedabad, against this order which is pending.

iii) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and various others Debit / Credit balances including Bankers / Lenders are subject to confirmation.

iv) The Company had placed fixed deposits with Oriental Bank of Commerce against L.C. margins. As per intimation received from the Bank, the same shall be apportioned on pro-rata basis between the bank and ARCIL against outstanding liabilities.

f) Export incentives inform of DEPB Licence Entitlement/Duty Drawback at the end of the year are recognized at Rs. Nil ( P.Y. Nil)

g) Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable Preference Shares (that were already converted into equity shares as per the terms) for the year ended on 31-03-2001 Rs.18.00 lacs, & for the year ended on 31-03-2002 Rs.4,09,315/-were not provided for in the books of accounts due to inadequacy of profit in 2001-02 and losses in 2002-03. This position remains the same as on 31.03.2013.

h) Deferred Tax:

The net Loss of the Company (as per the provisions of the Income-tax Act, 1961) for financial years 2006-07, 2007-08, 2008-09, 2009-10 and 2010-11 were 166.33 Lacs, 319.60 Lacs, 933.73 Lacs, 15.24 Lacs and 64.29 lacs respectively. Further, in opinion of the management, given the present state of affairs, it is uncertain whether the operations of the Company would result in taxable income in the near future. As per the guidelines provided by Accounting Standard (''AS'') 22 issued by the Institute of Chartered Accountants of India, deferred tax assets should be recognized only in case that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Accordingly, the company has not recognized any Deferred Tax Asset as at 31 st March 2013. As a matter of prudence the management has provided for Deferred Tax Liability as on that date.

i) Dues to Micro and Small Enterprises (SME):

In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, (''SME Act'') the outstanding payable to Micro and Small enterprises, as defined under the SME Act, are required to be disclosed in the prescribed format. However, such Enterprises are required to be registered under the SME Act. In the absence of the information about registration of the Enterprises as at 31 st March 2013, the required information could not be furnished.

However, the management was of the opinion that the company has not received any claim for overdue interest from such suppliers during the year.

j) The company''s operations mainly confined to manufacturing and selling of textile fabrics in India. Hence disclosure requirements of Accounting Standard 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable to the company.


Mar 31, 2012

A) Previous years figures have been regrouped or rearranged, wherever necessary, to conform to current years' classification.

b) Contingent Liabilities

(Rupees in lacs)

Particulars 2011-12 2010-11

i) Claims against the Company not acknowledged as debts. NIL 6.00

ii) Income Tax Appeal 7.75 7.75

iii) Court case u/s 138 of The Negotiable Instrument 11.52 11.52 Act, 1881 by BEAIL

iv) The Company, having its plant at Gujarat Industrial Development Corporation (GIDC), Ankleshwar, was required to contribute towards equity of Bharuch Eco Aqua Infrastructure Ltd. (BEAIL), a company floated by GIDC and GPCB for implementing an effluent treatment and disposal system in GIDC, Ankleswar. BEAIL requires all member-companies to give a counter guarantee in favour of GIDC for loans sanctioned by financial institutions to BEAIL and guaranteed by GIDC. This counter-guarantee has been issued by the Company. However, no liability has been materialized as on 31 st March 2012 due to this counter guarantee provided to GIDC.

c) Auction of Manufacturing Facilities of the company under SARFAESI Act, 2002

Indian Bank (Lead Bank) auctioned both the facilities of the company i.e. weaving unit and process house at Ankleshwar, held under its physical possession upto 29th February 2012, under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Indian Bank approved the sale of both units for Rs. 10.12 crores on 7th February 2012 and handed over physical possession to successful bidders on 1 st March 2012. The entire sale proceeds has been appropriated by all the lenders according to ratio decided by them. Further, Indian Bank has filed a case against the company in Debt Recovery Tribunal (DRT) Mumbai for recovery of dues.

d) Impairment of Assets

In opinion of the management, none of the assets of the company are required to be further Impaired as on the date of the balance sheet in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India on "Impairment of Assets".

e) Secured Loans

The Term Loans & Working Capital Loans from banks were/are secured by:

i. Pari passu first charge on fixed assets situated at Plot No. 5901/2, GIDC, Ankleshwar, Gujarat state, in favour of IDBI and Indian Bank and second charge thereon in favour of Indian Bank Consortium.

ii. Pari passu first charge on fixed assets situated at Plot No. 3608, GIDC, Ankleshwar, Gujarat state, in favour of Indian Bank Consortium and second charge thereon in favour of IDBI and Indian Bank.

iii. Personnel Guaranteeofthepromoterdirectors namely Shri Mazher N. Laila, Shri SalimT. Shahpurwala and Shri Shabbbir N. Laila.

iv. Pledge of promoter Director's shareholding of 629381 shares in Oxford Industries Ltd.

v. Corporate Guarantee of Kachins Textiles Ltd., Panoli, Ankleswar.

vi. Pari passu first charge favouring Consortium Banks on Continuous Bleaching Range (CBR) machine for WCTL/FITL.

vii. Hypothecation of inventories including consumable spares and book debts in respect of working capital facilities including WCTL and FITL, which are further secured by pari passu first charge by way of equitable mortgage of all fixed assets at Plot No. 3608, GIDC, Ankleshwar, Gujarat state.

f) Interest On Secured Loan

Indian Bank (Lead Bank) had exercised its enforcement right under the section 13(4) of SARFAESI Act, 2002 and taken physical possession on 18th January 2010 of the secured assets against the outstanding secured loan. Since the secured Assets have been in the possession of Indian Bank (Lead Bank) upto 29th February 2012 and thereafter on auction of the secured assets handed over the possession to successful bidders on 1 st March 2012. Interest on secured loan for the year of Rs. 569.98 lacs (Previous Year 496.87 lacs) cumulative interest as on 31 st March 2012 of Rs. 1066.85 lacs (Previous Year Rs. 496.87 lacs) has not been charged to revenue.

i) Current Assets, loans & advances.

i) In the opinion of the Board of Directors, all current assets, loans & advances have a value on realisation in ordinary course of the company's business, which is at least equal to the amount at which they are stated in Balance Sheet unless otherwise stated.

ii) A court case pending before Hon'ble Gujarat High Court, Ahmedabad, against Dakshin Gujarat Vij Company Ltd. to refund the deposit of Rs.15.95 lacs.

iii) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and various others Debit / Credit balances including Bankers / Lenders are subject to confirmation.

iv) The Company had placed fixed deposits with Oriental Bank of Commerce against L.C. margins. As per intimation received from the Bank, the same shall be apportioned on pro-rata basis between the bank and ARCIL against outstanding liabilities.

g Export incentives in form of DEPB Licence Entitlement/Duty Drawback at the end of the year are recognized at Rs. Nil ( P.Y. Nil)

10 Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable Preference Shares (that were already converted into equity shares as per the terms) for the year ended on 31-03-2001 Rs. 18.00 lacs, & for the year ended on 31-03-2002 Rs.4,09,315 /- were not provided for in the books of accounts due to inadequacy of profit in 2001-02 and losses in 2002-03. This position remains the same as on 31.03.2012.

h During the year, the company has capitalized borrowing costs amounting to Rs. NIL/- (Previous Year Rs.NIL) attributable to the acquisition or construction of fixed assets.

i Quantitative Information

i) As per Annexure -I enclosed (as verified valued and certified by management).

ii) Cost of goods Consumed comprises of value of raw materials consumed and effect of increase/decrease in the value of opening/closing stock of finished goods/work in process.

j Deferred Tax:

The net Loss of the Company (as per the provisions of the Income-tax Act, 1961) for financial years 2006-07, 2007-08,2008-09,2009-10 and 2010-11 were 166.33 Lacs, 319.60 Lacs, 933.73 Lacs, 15.24 Lacs and 64.29 lacs respectively. Further, in opinion of the management, given the present state of affairs, it is uncertain whether the operations of the Company would result in taxable income in the near future. As per the guidelines provided by Accounting Standard ('AS') 22 issued by the Institute of Chartered Accountants of India, deferred tax assets should be recognized only in case that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Accordingly, the company has not recognized any Deferred Tax Asset as at 31 st March 2012. As a matter of prudence the management has provided for Deferred Tax Liability as on that date.

k Dues to Micro and Small Enterprises (SME):

In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, ('SME Act') the outstanding payable to Micro and Small enterprises, as defined under the SME Act, are required to be disclosed in the prescribed format. However, such Enterprises are required to be registered under the SME Act. In the absence of the information about registration of the Enterprises as at 31 st March 2012, the required information could not be furnished.

However, the management was of the opinion that the company has not received any claim for overdue interest from such suppliers during the year.

l Related Party Disclosures

For related party disclosures refertoAnnexure-ll enclosed.

m The company's operations mainly confined to manufacturing and selling of textile fabrics in India. Hence disclosure requirements of Accounting Standard 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable to the company.


Mar 31, 2011

1. Previous years figures have been regrouped or rearranged, wherever necessary, to conform to current year's classification.

2. Contingent Liabilities (Rupees in lacs)

Particulars 2010-11 2009-10

i) Claims against the Company not acknowledged as debts. 6.00 6.00

ii) Income Tax appeal 7.75 7.75

iii) Court case u/s 138 of The Negotiable Instruments Act, 1881 by BEAIL 11.52 11.52

iv) The Company, having its plant at Gujarat Industrial Development Corporation (GIDC), Ankleshwar, was required to contribute towards equity of Bharuch Eco Aqua Infrastructure Ltd. (BEAIL), a company floated by GIDC and GPCB for implementing an effluent treatment and disposal system in GIDC, Ankleswar. BEAIL requires all member-companies to give a counter guarantee in favour of GIDC for loans sanctioned by financial institutions to BEAIL and guaranteed by GIDC. This counter-guarantee has been issued by the Company. However, no liability has been materialized as on 31st March 2011 due to this counter guarantee provided to GIDC.

3. Physical Possession of Secured Assets by Lenders under SARFAESI ACT, 2002

Indian Bank (Lead Bank) continues to hold physical possession of all the secured assets of the company at the Weaving Unit and the Process House at Ankleshwar. The Bank has further placed both units of the company under auction for sale.

4. Abatement by Board for Industrial and Financial Restructuring (BIFR)

Reference made to BIFR under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) on 28th February 2008 was abated by BIFR in its last hearing on 17th February 2010 after taking cognizance of the fact that Indian Bank had already taken over physical possession of secured assets of the Company under section 13(4) of SARFAESI Act, 2002.

5. Impairment of Assets

In the opinion of the management, none of the assets of the company are required to be further impaired as on the date of the balance sheet in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India on "Impairment of Assets".

6. Secured Loans

The Term Loans & Working Capital Loans from financial Institution / banks are secured by:

a) Pari passu first charge on fixed assets situated at Plot No. 5901/2, GIDC, Ankleshwar, Gujarat state, in favour of IDBI and Indian Bank and second charge thereon in favour of Indian Bank Consortium.

b) Pari passu first charge on fixed assets situated at Plot No. 3608, GIDC, Ankleshwar, Gujarat state, in favour of Indian Bank Consortium and second charge thereon in favour of IDBI and Indian Bank.

c) Personal Guarantee of the promoter directors namely Shri Mazher N. Laila, Shri. Salim T. Shahpurwala and Shri. Shabbir N. Laila.

d) Pledge of promoter Director's shareholding of 629381 shares in Oxford Industries Ltd.

e) Corporate Guarantee of Kachins Textiles Ltd., Panoli, Ankleshwar.

f) Pari passu first charge favouring Consortium Banks on Continuous Bleaching Range (CBR) machine for WCTL/FITL

g) Hypothecation of inventories including consumable spares and book debts in respect of working capital facilities including WCTL and FITL, which are further secured by pari passu first charge by way of equitable mortgage of all fixed assets at Plot No. 3608, GIDC, Ankleshwar, Gujarat state.

7. Interest On Secured Loans

Indian Bank (Lead Bank) had exercised its enforcement right under the sectionl 3(4) of SARFAESI Act, 2002 and taken physical possession on 18th January 2010 of the secured assets against the outstanding secured loan. Since the secured Assets have been in the possession of Indian Bank (Lead Bank) throughout the year, interest on secured loan amounting of Rs. 4,96, 87, 386/- has not been charged to revenue.

8. Current Assets, loans & advances.

i) In the opinion of the Board of Directors, all current assets, loans & advances have a value on realisation in ordinary course of the company's business, which is at least equal to the amount at which they are stated in Balance Sheet unless otherwise stated.

ii) A court case is pending before Hon'ble Gujarat High Court, Ahmedabad, against Dakshin Gujarat Vij Company Ltd. to refund deposit of Rs.15.95 lacs.

iii) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and various others Debit /Credit balances including bankers/lenders are subject to confirmation.

iv) The Company had pledged fixed deposits with Oriental Bank of Commerce against L. C. margin. As per intimation received from the Bank, the same shall be apportioned on pro rata basis between the bank and ARCIL against outstanding liabilities.

9. Export incentives in form of DEPB Licence Entitlement/Duty Drawback at the end of the year are recognized at Rs. Nil (P.Y. Rs. 12,041/-).

10. Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable Preference Shares (that were already converted into equity shares as per the terms) for the year ended on 31 -03-2001 Rs. 18.00 lacs, & for the year ended on 31 -03-2002 Rs.4,09,315 /- were not provided for in the books of accounts due to inadequacy of profit in 2001 -02 and losses in 2002-03. In view of the loss incurred during the current year this position remains the same as on 31.03.2011.

11. During the year, the company has capitalised borrowing costs amounting to Rs. NIL/- (Previous Year Rs. NIL) attributable to the acquisition or construction of fixed assets.

12. Quantitative Information

i) As per Annexure- I 2009-10 enclosed (as verified valued and certified by management).

ii) Cost of goods Consumed comprises of value of raw materials consumed and effect of increase/ decrease in the value of opening/closing stock of finished goods/work in process.

13. Deferred Tax:

The net Loss of the Company (as per the provisions of the Income-tax Act, 1961) for financial years 2005-06, 2006-07,2007-08,2008-09 & 2009-10 were 87.14 Lacs, 166.33 Lacs, 319.60 Lacs, 933.73 Lacs and 15.24 Lacs respectively. In the current year the Company has reported marginal Cash Profit of Rs. 0.11 lacs (and has a negative taxable income as per the provisions of the Income tax Act, 1961). Further, in opinion of the management, given the present state of affairs, it is uncertain whether the operations of the Company would result in taxable income in the near future. As per the guidelines provided by Accounting Standard ('AS') 22 issued by the Institute of Chartered Accountants of India, deferred tax assets should be recognized only in case that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Accordingly, the Company has not recognized any Deferred Tax Asset as at 31st March 2011. As a matter of prudence the management has provided for Deferred Tax Liability as on that date.

14. Dues to Micro and Small Enterprises (SME):

In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, ('SME Act') the outstanding payable to Micro and Small enterprises, as defined under the SME Act, are required to be disclosed in the prescribed format. However, such Enterprises are required to be registered under the SME Act. In the absence of the information about registration of the Enterprises as at 31st March 2011, the required information could not be furnished.

However, the management was of the opinion that the company has not received any claim for overdue interest from such suppliers during the preceding year.

15. Related Party Disclosures

For related party disclosures refer to Annexure -II enclosed.

16. The company's operations mainly confined to manufacturing and selling of textile fabrics in India. Hence disclosure requirements of Accounting Standard 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable to the company.

RELATED PARTY DISCLOSURE

ANNEXURE - II TO PARA 26 OF SCHEDULE'S' ON NOTES TO ACCOUNTS

As per the Accounting Standard 18, issued by the Institute of Charterd Accountants of India, the disclosure of the transactions with the related parties as defined in the said accounting standards are given below:

I. Relationship

a. Holding Company : Nil

b. Subsidiaries Company : Nil

c. Fellow Subsidiaries : Nil

d. Associated Companies/ Firm : 1. Kachins Textiles Limited

e. Key Managerial Person/Director (s) : 1. Mr. Mazher N. Laila

f. Relatives of 'e' above : 1. Farida M. Laila


Mar 31, 2010

1. Previous years figures have been regrouped or rearranged, wherever necessary, to conform to current years classification.

2. Contingent Liabilities (Rupees in lacs)

Particulars 2009-2010 2008-2009

i) Claims against the Company not acknowledged as debts. 6.00 6.00

ii) Contested Labour Court Cases NIL 4.02

iii) Court case u/s 138 of The Negotiable Instruments Act, 1881 by BEAIL 11.52 -

iv) The Company, having its plant at Gujarat Industrial Development Corporation (CIDC), Ankleshwar, was required to contribute towards equity of Bharuch Eco Aqua Infrastructure Ltd. (BEAIL), a company floated by GIDC and GPCB for implementing an effluent treatment and disposal system in GIDC, Ankleswar. BEAIL requires all member-companies to give a counter guarantee in favour of GIDC for loans sanctioned by financial institutions to BEAIL and guaranteed by GIDC. This counter-guarantee has been issued by the Company. However, no liability has been materialized as on 31st March 2010 due to this counter guarantee provided to GIDC.

3. Physical Possession of Secured Assets by Lenders under SARF AESI ACT, 2002

Indian Bank (Lead Bank) had demanded repayment of the entire loan portfolio vide its notice dated 16th October 2008 under section 13(2) of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002(SARFAESI Act, 2002), failing which the Bank exercised its enforcement rights under section 13(4) of SARF AESI Act, 2002 and took over symbolic possession of all the secured assets of the company situated at the Weaving Unit and the Process House on 13th August 2009 and physical possession on 18th January 2010. The Bank has further placed both the units of the company (Weaving Unit and Process House) under auction for sale.

4. Abatement by Board for Industrial and Financial Restructuring (BIFR)

Reference made to BIFR under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) on 28th February 2008 was abated by BIFR in its last hearing on 1 7th February 2010 after taking cognizance of the fact that Indian Bank had already taken over physical possession of secured assets of the Company under section 13(4) of SARFAESI Act, 2002.

5. Impairment of Assets

In the opinion of the management, none of the assets of the company are required to be further impaired as on the date of the balance sheet in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India on "Impairment of Assets".

6. Secured Loans

The Term Loans & Working Capital Loans from financial Institution / banks are secured by:

a) Pari passu first charge on fixed assets situated at Plot No. 5901/2, GIDC, Ankleshwar, Gujarat state, in favour of IDBI and Indian Bank and second charge thereon in favour of Indian Bank Consortium.

b) Pari passu first charge on fixed assets situated at Plot No. 3608, GIDC, Ankleshwar, Gujarat state, in favour of Indian Bank Consortium and second charge thereon in favour of IDBI and Indian Bank.

c) Personal Guarantee of the promoter directors namely Shri Mazher N. Laila, Shri. Salim T. Shahpurwala and Shri. Shabbir N. Laila.

d) Pledge of promoter Directors shareholding of 629381 shares in Oxford Industries Ltd.

e) Corporate Guarantee of Kachins Textiles Ltd., Panoli, Ankleshwar.

f) Pari passu first charge favouring Consortium Banks on Continuous Bleaching Range (CBR) machine for WCTL/FITL.

g) Hypothecation of inventories including consumable spares and book debts in respect of working capital facilities including WCTL and FITL, which are further secured by pari passu first charge by way of equitable mortgage of all fixed assets at Plot No. 3608, GIDC, Ankleshwar, Gujarat state.

7. Current Assets, loans & advances.

i) In the opinion of the Board of Directors, all current assets, loans & advances have a value on realisation in ordinary course of the companys business, which is at least equal to the amount at which they are stated in Balance Sheet unless otherwise stated.

ii) A court case is pending before Honble Gujarat High Court, Ahmedabad, against Dakshin Gujarat Vij Company Ltd. to refund deposit of Rs.15.95 lacs.

iii) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and various others Debit/Credit balances including bankers/lenders are subject to confirmation.

8. Export incentives in form of DEPB Licence Entitlement/Duty Drawback at the end of the year are recognized at Rs.12,041/- (P.Y. Rs. 23,34,399/-) and the same would have a realizable value in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet unless otherwise stated.

9. Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable Preference Shares (that were already converted into equity shares as per the terms) for the year ended on 31-03-2001 Rs.18.00 lacs, &for the year ended on 31-03-2002 Rs.4,09,315 /- were not provided for in the books of accounts due to inadequacy of profit in 2001-02 and losses in 2002-03. In view of the loss incurred during the current year this position remains the same as on 31.03.2010.

10. During the year, the company has capitalised borrowing costs amounting to Rs. NIL/-(Previous Year Rs. NIL) attributable to the acquisition or construction of fixed assets.

11. Deferred Tax:

The net Loss of the Company (as per the provisions of the Income-tax Act, 1961) for financial years 2004-05, 2005-06, 2006-07, 2007-08 & 2008-09 were 628.16 Lacs, 87.14 Lacs, 166.33 Lacs, 319.60 Lacs and 933.73 Lacs respectively. Even in the current year the Company has incurred a Cash Loss (and has a negative taxable income as per the provisions of the Income tax Act, 1961). Further, in opinion of the management, given the present state of affairs, it is uncertain whether the operations of the Company would result in taxable income in the near future. As per the guidelines provided by Accounting Standard (AS) 22 issued by the Institute of Chartered Accountants of India, deferred tax assets should be recognized only in case that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Accordingly, the Company has not recognized any Deferred Tax Asset as at 31st March 2010. As a matter of prudence the management has provided for Deferred Tax Liability as on that date.

12. Dues to Micro and Small Enterprises (SME):

In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, (SME Act) the outstanding payable to Micro and Small enterprises, as defined under the SME Act, are required to be disclosed in the prescribed format. However, such Enterprises are required to be registered under the SME Act. In the absence of the information about registration of the Enterprises as at 31st March 2010, the required information could not be furnished.

However, the management was of the opinion that the company has not received any claim for overdue interest from such suppliers during the preceding reporting period.

13. The companys operations mainly confined to manufacturing and selling of textile fabrics in India. Hence disclosure requirements of Accounting Standard 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable to the company.

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