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Notes to Accounts of Rai Saheb Rekhchand Mohota Spg. & Wvg. Mills Ltd.

Mar 31, 2015

I The Board of Directors has issued Bonus shares from its permitted reserves/surplus @ 1:6 in its meeting held on 05/01/2015 and same has been approved by members in EGM dated 05/02/2015 and listed on BSE & NSE dated 27/03/2015.

ii Out of the issued, subscribed and paid-up share capital of 36,000 Equity shares have been forfeited, vide Resolution passed at the meeting of the Board of Directors held on 11th Sept.1999.

iii Out of the issued subscribed and paid-up share Capital of 3700 shares pertaining to Mr. Rami Reddy K. of Guntur having Folio No.450, who has made the payment of Application money by Stock Invest, which could not be encashed and co case is pending Allotment Money Arrears Rs. 7,500/-& First Call Money arrears Rs. 11,100/-Total Rs. 18,600/-.

iv Rights, Preference and Restriction attached to shares

Each holder of equity shares is entitled to one vote per share with a right to receive per share dividend declared by the company. In the event of liquidation, the equity shareholders are entitled to receive remaining assets of the Company (after distribution of all preferential amounts) in the proportion of equity shares held by the shareholders.

Notes : - Secured Term Loans from Banks includes Term Loans from State Bank of India & Bank of India secured by 1st pari passu charge over the company's all immovable properties including all fixed assets & movable machineries at Hinganghat & Burkoni. The said loan is further collaterally secured by 2nd charge on the entire stock of inventory,book debts etc. on pari passu basis. It is further secured by personal guarantee of three directors of the company.

Term Loan from SBI & BOI carries Interest @ 13.55% & 12.40% p.a.

* Excludes Term Loan repayment of Rs.920.25 lacs shown under the current liabilities under head long term debts due within one year.

Notes : - Working capital loans includes working capital loans from State Bank of India & Bank of India is secured by hypothecation of stocks of raw materials, finished goods, stock-in-process, spare parts and book debts and is collaterally secured by way of second charge on the entire Fixed Assets of the company, both present and future at Hinganghat & Burkoni.

Working Capital Limit from SBI & BOI carries Interest @ 13.35% & 12.40% p.a.

Notes Micro and Small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the company. There are no over dues to parties on account of principal amount and/or interest and accordingly no additional disclosures are required

(Rs.in lacs) 2014-2015 2013-2014

2. Contingent liability not provided

For Bank Guarantee issued 136.05 39.05

3. A sum of Rs. 19,665/- is transferred from Revaluation Reserve to credit of Statement of Profit and Loss, which is equivalent to the amount of depreciation on the sum by which the value of Plant & Machinery & Building was increased respectively as a result of revaluation.

4. (a) In accordance with the transitional provisions of Accounting Standard 15 Gratuity liability as on 31.03.2015 is Rs. 522.31 lacs as per actuarial valuation and present value of plan assets at the end of period is Rs. 529.51. Hence no Gratuity provision has been made during the financial year.

5. RELATED PARTY DISCLOSURE 1. Relationships: -

a. Other Related Parties

M/s. Veenadevi & Swatidevi Mohota M/s. Crome Textiles Pvt. Ltd.

M/s. Navrang Enterprises

b. Key Management Personnel Dr. Ranchhoddas Mohota

Shri Vinod Kumar Mohota Shri Vinay Kumar Mohota Shri Shantilal B. Singhvi Shri M. B. Mahajan

c. Relatives of Key Management Personnel Executor (Suryakantadevi Mohota)

Smt. Kiran Bhagat Smt. Vibha Agarwal Smt. Veena Mohota Shri Vaibhav Kumar Mohota

6. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Company during the year carried out an exercise of identifying the assets that may have been impaired in respect of each cash generating unit in accordance with the said Accounting Standard. Accordingly, there is no impairment of the assets during the current year.

7. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions; Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

Contingent Liabilities; Contingent liabilities are disclosed when there is a possible obligation arising from post events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control or the company or a present obligation that arises from past events where it Is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent Assets; Contingent Assets are neither recognized nor disclosed in the financial statements.

8. a) Inter Corporate advance amounting to Rs.2.92 lacs have become long overdue.

Legal proceedings have been initiated for recovery of the same. b) The Company is in the process of closing its old weaving shed and is in discussions with the workers for settlement of their retrenchment dues aggregating Rs. 300 lacs (approx) closure and settlement of dues is subject to government / court approvals.

Pending such approvals and outcome of discussions with workers, no provision has been made in the books of account as on March 31, 2015.

9. The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made.

10. Income Tax Assessment of the company has been completed up to A. Y. 2012-2013.

11. a) During the current year, the Company has revised its accounting policy in respect of depreciation method of its fixed assets where depreciation was provided in the previous years under the 'written down value method'. Based on an evaluation carried out by the management in the current year, fixed assets are now being depreciated on 'straight line method' over the expected useful life of the fixed assets as against written down value method. This change in accounting policy has been made as it would result in a more appropriate presentation of the financial statements. As a result of this change, depreciation has been calculated retrospectively on straight line method and accordingly the Company has recorded reversal of depreciation expense amounting to Rs. 5,72,81,347/- pertaining to previous years in the current year's Statement of Profit & Loss.

b) Pursuant to the transitional provisions prescribed in Schedule II of the Companies Act, 2013, the company has fully depreciated the carrying value of assets (determined after considering the change in the method of depreciation from WDV to SLM), after retaining the residual value, where the remaining useful life of the asset was determined to be nil as on April 1, 2014, and has adjusted an amount off. 2,78,76,584/- (Net of Deferred Tax) against the opening balance of General Reserves.

c) The depreciation expense in the Statement of Profit & Loss for the year is higher by Rs.2,48,52,146/- consequent to the above change in the method of Depreciation and higher by Rs.6,37,43,455/- due to change in estimates.

12. Segment Information

The Company operates in one business segment namely "Textiles". The company's secondary segments are the geographical distribution of activities. Revenue and receivables are specified by location of customers. The following table present revenue, expenditure and certain information regarding company's geographical segments:

Fixed Assets used in the company's business and liabilities contracted have not been identified with any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The Company believes that it is not practical to provide segment disclosures relating to Capital Employed.

13. In accordance with Accounting Standard on Leases (AS-19) notified under companies (Accounting Standards) Rules, 2006 disclosures in respect of Leases are made below:

Operating Leases (Company as Lessee)

i) The Company has taken certain office/factory premises on operating lease basis. Lease payments in respect of such leases recognized in the statement of profit and loss of T 25.56 Lacs (P. Y. Rs. 26.65 Lacs)

ii) Except for escalation contained in certain lease arrangements providing for increase in the lease contain in certain lease arrangements providing for increase in the lease payment by specified percentage /amounts after completion of specified period. Further the lease terms do not contain any exceptional / restrictive covenants other than prior approval of the lessee before the renewal of lease.

iii) There are no restrictions such as those concerning dividend and additional debt other that in some cases where prior approval of lesser is required for further leasing. There is no contingent rent payment.

14. The Company has appointed a full time Company Secretary ,However he will be joining by June, 2015.


Mar 31, 2014

1.Notes: -

i The Board of Directors has declared issue of Bonus shares from its permitted reserves/surplus @2:1 in its meeting held on 18/12/2013 and same has been approved by members in EGM dated 22/01/2014 and listed on BSE & NSE dated 17/02/2014.

ii Out of the issued, subscribed and paid-up share capital of Rs.4,20,44,300/- consisting of 42,04,430 Equity shares of Rs.10/- each, 36,000 Equity shares have been forfeited, vide Resolution passed at the meeting of the Board of Directors held on 11th Sept.1999.

iii Out of the issued subscribed and paid-up share Capital of Rs. 4,20,44,300/- consisting of 42,04,430 Equity Shares of Rs.10/- each -3700 shares pertaining to Mr. Rami Reddy K. of Guntur having Folio No.450, who has made the payment of Application money by Stock Invest, which could not be encashed and court case is pending Allotment Money Arrears Rs. 7,500/- & First Call Money arrears Rs.11,100/-Total Rs. 18,600/-.

iv Rights, Preference and Restriction attached to shares Each holder of equity shares is entitled to one vote per share with a right to receive per share dividend declared by the company. In the event of liquidation, the equity shareholders are entitled to receive remaining assets of the Company (after distribution of all preferential amounts) in the proportion of equity shares held by the shareholders.

2.Notes :- Secured Term Loans from Banks includes Term Loans from State Bank of India & Bank of India is secured by 1st pari passu charge over the company''s all immovable properties including all fixed assets & movable machineries at Hinganghat & Burkoni. The said loan is further collaterally secured by 2nd charge on the entire stock of inventory.book debts etc. on pari passu basis. It is further secured by personal guarantee of three directors of the company.

* Excludes Term Loan repayment of Rs.1048 lacs shown under the current liabilities under head long term debts due within one year.

3.Notes : - Working capital loans includes working capital loans from State Bank of India & Bank of India is secured byn hypothecation of stocks of raw materials, finished goods, stock-in-process, spare parts and book debts and is collaterally secured by way of second charge on the entire Fixed Assets of the company, both present and future at Hinganghat & Burkoni.

Notes Micro and Small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the company. There are no overdues to parties on account of principal amount and/or interest and accordingly no additional disclosures are required Notes Intangible Assets includes premium on Key man insurance policy transfer from M/s. Vibha Synthetics Pvt.Ltd. and SICOM Sales Tax Defferal Loan Transfer from The Rai Saheb Rekhch and Mohota Spg.&Wvg. Mills Ltd. Wani Unit.

# Capital work in progress includes new TFO building construction at Burkoni Unit.

(Rs. in lacs) 2013-2014 2012-2013

4. Contingent liability not provided for Bank Guarantee issued Rs. 139.05 Rs. 138.55

5. A sum of Rs. 42,40,876/- is transferred from Revaluation Reserve to credit of Statement of Profit and Loss, which is equivalent to the amount of depreciation on the sum by which the value of Plant & Machinery & Building was increased respectively as a result of revaluation.

6. (a) In accordance with the transitional provisions of Accounting Standard 15 Gratuity liability as on 31.03.2014 is Rs. 541.05 lacs as per actuarial valuation and present value of plan assets at the end of period is Rs. 596.95. Hence no Gratuity provision has been made during the financial year.

7. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Company during the year carried out an exercise of identifying the assets that may have been impaired in respect of each cash generating unit in accordance with the said Accounting Standard. Accordingly, there is no impairment of the assets during the current year.

8. During the year 1995-96 the company had made Public Issue of Equity Shares. In respect of some investor(s) who had applied for Equity Shares through Stock Invest(s) were returned unpaid by the Bank. As such, in the following cases though the shares have been allotted the application money has not been received.

No of shares Capital (Rs.) Premium (Rs.)

3700 14,800/- 96,200/-

Further with regard to Public Issue allotment money and First & Final Call Money from those investors whose stock investments were returned unpaid by the Bank is still to be received. The said non-receipt of allotment money is shown as call in arrears.

9. Inter Corporate advance amounting to Rs. 2.92 lacs have become long overdue. Legal proceedings have been initiated for recovery of the same.

10. The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end togetherwith interest paid/payable as required under the said Act have not been made.

11. Income Tax Assessment of the company has been completed up to A. Y. 2012-2013.

12. The Company operates in one business segment namely "Textiles"

13. The previous yearfigures are regrouped wherever necessary.


Mar 31, 2013

(Rs. in lacs)

2012-2013 2011-2012

1. Contingent liability not provided for Bank Guarantee issued Rs. 138.55 Rs. 129.99

2. A sum of Rs.47,98,181/- is transferred from Revaluation Reserve to credit of Profit & Loss account, which is equivalent to the amount of depreciation on the sum by which the value of Plant & Machinery & Building was increased respectively as a result of revaluation.

3. (a) In accordance with the transitional provisions of Accounting Standard 15 Gratuity liability as on 31.03.2013 is Rs.507.51 lacs as per actuarial valuation and present value of plan assets at the end of Period is Rs. 622.68 lacs. Hence no Gratuity provision has been made during the financial year.

4. In accordance with Accounting Standard 22 issued by the Institute of Chartered Accountants of India, Company has recognized Deferred Tax Assets of Rs. 8,03,406/- in the Profit & Loss Account.

The Break-up of deferred tax balances are as under :-

5. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Company during the year carried out an exercise of identifying the assets that may have been impaired in respect of each cash generating unit in accordance with the said Accounting Standard. Accordingly, there is no impairment of the assets during the current year.

6. During the year 1995-96 the company had made Public Issue of Equity Shares. In respect of some investor(s) who had applied for Equity Shares through Stock Invest(s) were returned unpaid by the Bank. As such, in the following cases though the shares have been allotted the application money has not been received.

Further with regard to Public Issue allotment money and First & Final Call Money from those investors whose stock investments were returned unpaid by the Bank is still to be received. The said non-receipt of allotment money is shown as call in arrears.

7. Inter Corporate advance amounting to Rs. 2.77 lacs have become long overdue. Legal proceedings have been initiated for recovery of the same.

8. The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made.

9. Income Tax Assessment of the company has been completed upto A.Y.2009-2010. Company''s appeals in respect of some of the earlier assessment orders are pending before the IT. Authorities

10. The Company operates in one business segment namely "Textiles"

11. The previous year figures are regrouped wherever necessary.


Mar 31, 2012

1 Rights, Preference and Restriction attached to shares

Each holder of equity shares is entitled to one vote per share with a right to receive per share dividend declared by the company. In the event of liquidation, the equity shareholders are entitled to receive remaining assets of the Company (after distribution of all preferential amounts) in the proportion of equity shares held by the shareholders.

Notes : - Secured Term Loans from Banks includes Term Loans from SBI & BOI is secured by 1 st pari passu charge over the company's all immovable properties including all fixed assets & movable machineries at Hinganghat & Burkoni. The said loan is further collaterally secured by 2nd charge on the entire stock of inventory,book debts etc. on pari passu basis. It is further secured by personal Guarantee of three directors of the company.

* Excludes Term Loan repayment of Rs. 755 lacs shown under the current liabilities under head long term debts due within one year.

(Rs. in lacs)

2011-2012 2010-2011

2. Contingent liability not provided for:

For Bank Guarantee issued Rs. 129.99 Rs. 129.74

3. Asum of Rs.54,33,003/- is transferred from Revaluation Reserve to credit of Profit & Loss account, which is equivalent to the amount of depreciation on the sum by which the value of Plant & Machinery & Building was increased respectively as a result of revaluation and revaluation reserve is writen off by Rs. 2,64,447/- in respect of sale of Plant & Machinery.

4. The Company accounts for leave encashment benefits in the year of payment and the liability thereof at the year end is not provided. Thus, accumulated liability for leave encashment not provided for in the books of accounts till the close of the previous year (i.e. 2010-11) was Rs.43.50 lacs, payment made during the year and debited to profit & loss account is Rs.52.76 lacs and estimated liability at the close of the current year stands at Rs.48.59 lacs.

5. (a) In accordance with the transitional provisions of Accounting Standard 15 Gratuity liability as on 31.03.2012 is Rs.549.59 lacs as per actuarial valuation and present value of plan assets at the end of period is Rs.622.72. Hence no Gratuity provision has been made during the financial year. Provision pertaining to earlier year 96.72 Lacs has been reversed and credited to Profit & Loss appropriation account showing under Prior year adjustment.

6. (a) Term loan of Rs.2633.01 lacs from State Bank of India, Mumbai and Rs. 758.00 from Bank of India, Nagpur are secured by 1st pari passu charge over the Company's all immovable properties including all fixed assets & movable machineries at Hinganghat & Burkoni. The said loan is further collaterally secured by 2nd charge on the entire stock of inventory, book debts etc. on pari passu basis. It is further secured by personal guarantee of three promoter directors of the Company.

(b) Working Capital Loans from SBI & BOI is Secured by hypothecation of stocks of raw materials, finished goods, stock in process, stores spare parts and book debts and is collaterally secured by way of second charge on the entire Fixed Assets of the company, both present and future at Hinganghat & Burkoni.

7. During the year 2000-2001, primary lease period of 1 No. pirn winding machine (Value Rs.20,136/-) taken on lease from ICICI Ltd. expired on 15th Sept' 2000, but it could not be transferred to the company by ICICI Ltd. as Income Tax Department has raised the demand of income tax on them for disallowance of depreciation in their assessment. The ICICI Ltd. wants to recover this demand from the company. The ICICI Ltd. has preferred appeal before appellate authorities.

8. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Company during the year carried out an exercise of identifying the assets that may have been impaired in respect of each cash generating unit in accordance with the said Accounting Standard. Accordingly, there is no impairment of the assets during the current year.

9. During the year 1995-96 the company had made Public Issue of Equity Shares. In respect of some investor(s) who had applied for Equity Shares through Stock Invest(s) were returned unpaid by the Bank. As such, in the following cases though the shares have been allotted the application money has not been received.

Further with regard to Public Issue allotment money and First & Final Call Money from those investors whose stock investments were returned unpaid by the Bank is still to be received. The said non-receipt of allotment money is shown as call in arrears.

10 Inter Corporate advance amounting to Rs. 2.77 lacs have become long overdue. Legal proceedings have been initiated for recovery of the same.

11. The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made.

12. Income Tax Assessment of the company has been completed up toA.Y.2009-2010. Company's appeals in respect of some of the earlier assessment orders are pending before the I.T. Authorities.

13. The Company operates in one business segment namely "Textiles"

14. The Financial statements for the year ended 31st March, 2011 had been prepared as per the applicable, pre-revised Schedule VI to the Companies Act 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956 the financial statements for the year ended 31st March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statement.


Mar 31, 2011

(Rs. in lacs) 2010-2011 2009-2010

1. Contingent liability not provided for:

For Bank Guarantee issued Rs. 129.74 Rs. 116.42

2. A sum of Rs. 62,04,748/- is transferred from Revaluation Reserve to credit of Profit & Loss account, which is equivalent to the amount of depreciation on the sum by which the value of Plant & Machinery & Building was increased respectively as a result of revaluation and revaluation reserve is write off by Rs. 4,65,008/- in respect of sale of Plant & Machinery.

3. The Company accounts for leave encashment benefits in the year of payment and the liability thereof at the year end is not provided. Thus, accumulated liability for leave encashment not provided for in the books of accounts till the close of the previous year (i.e. 2009-10) was Rs.38.99 lacs, payment made during the year and debited to profit & loss account is Rs.50.28 lacs and estimated liability at the close of the current year stands at Rs.43.50 lacs.

4. (a) In accordance with the transitional provisions of Accounting Standard 15 Gratuity liability as on 31.03.2011 is Rs.541.53 lacs as per actuarial valuation and present value of plan assets at the end of period is Rs.594.16. Hence no Gratuity provision has been made during the financial year.

5. (a) Term loan of Rs.3714.26 lacs from State Bank of India, Mumbai and Rs. 774.99 from Bank of India,

Nagpurare secured by 1st pari passu charge over the Company's all immovable properties including all fixed assets & movable machineries at Hinganghat & Burkoni. The said loan is further collaterally secured by 2nd charge on the entire stock of inventory, book debts etc. on pari passu basis. It is further secured by personal guarantee of three promoter directors of the Company.

(b) Working Capital Loans from SBI is Secured by hypothecation of stocks of raw materials, finished goods, stock in process, stores spare parts and book debts and is collaterally secured by way of second charge on the entire Fixed Assets of the company, both present and future.

6. During the year 2000-2001, primary lease period of 1 No. pirn winding machine (Value Rs.20,136/-) taken on lease from ICICI Ltd. expired on 15th Sept' 2000, but it could not be transferred to the company by ICICI Ltd. as Income Tax Department has raised the demand of income tax on them for disallowance of depreciation in their assessment. The ICICI Ltd. wants to recover this demand from the company. The ICICI Ltd. has preferred appeal before appellate authorities.

7. RELATED PARTY DISCLOSURE

a) Name of the Related Party Relationship

i) M/s. Veenadevi & Swatidevi Mohota Under significant influence of Key management personnels

ii) Key Management Personnel

Shri Dr.Ranchhoddas Mohota Chairman

Shri Vinod Kumar Mohota Managing Director

Shri Vinay Kumar Mohota Director

Shri Shantilal B. Singhvi Director

iii) Relatives of Key Management Personnel

Smt. Suryakantadevi Mohota

Smt. Kirandevi Bhagat

Mr. Vaibhav Kumar Mohota

8. In accordance with Accounting Standard 22 issued by the Institute of Chartered Accountants of India, Company has recognized Deferred Tax Liability of Rs. 185.80 lacs in the Profit & Loss Account.

9. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Company during the year carried out an exercise of identifying the assets that may have been impaired in respect of each cash generating unit in accordance with the said Accounting Standard. Accordingly, there is no impairment of the assets during the current year.

10. During the year 1995-96 the company had made Public Issue of Equity Shares. In respect of some investor(s) who had applied for Equity Shares through Stock Invest(s) were returned unpaid by the Bank. As such, in the following cases though the shares have been allotted the application money has not been received.

No of shares Capital (Rs.) Premium Rs.

3700 14,800/- 96,200/-

Further with regard to Public Issue allotment money and First & Final Call Money from those investors whose stock investments were returned unpaid by the Bank is still to be received. The said non-receipt of allotment money is shown as call in arrears.

11. Inter Corporate advance amounting to Rs. 2.77 lacs have become long overdue. Legal proceedings have been initiated for recovery of the same.

12. The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made.

13. Income Tax Assessment of the company has been completed up to A.Y.2007-2008. Company's appeals in respect of some of the earlier assessment orders are pending before the IT. Authorities

14. Previous years figures have been reworked, regrouped and rearranged wherever necessary.

15. The Company operates in one business segment namely "Textiles"


Mar 31, 2010

(Rs. in lacs)

2009-2010 2008-2009

1. Contingent liability not provided for:

a) For bills discounted with Bankers Rs. Nil Rs.28.67

b) For Bank Guarantee issued Rs. 116.42 Rs.81.00



2. A sum of Rs. 70,92,412/- is transferred from Revaluation Reserve to credit of Profit & Loss account, which is equivalent to the amount of depreciation on the sum by which the value of Plant & Machinery & Building was increased respectively as a result of revaluation and revaluation reserve is written off by Rs. 32,34,973/- by sale of Plant & Machinery.

3. The Company accounts for leave encashment benefits in the year of payment and the liability thereof at the year end is not provided. Thus, accumulated liability for leave encashment not provided for in the books of accounts till the close of the previous year (i.e. 2008-09) was Rs.38.10 lacs, payment made during the year and debited to profit & loss account is Rs.41.17 lacs and estimated liability at the close of the current year stands at Rs.38.99 lacs.

4. (a) In accordance with the transitional provisions of Accounting Standard 15 Gratuity liability as on 31.03.2010 is Rs.96.75 lacs debited to the Profit & Loss Account as per actuarial valuation.

5. (a) Term loan of Rs.3988.18 lacs from State Bank of India, Mumbai and Rs. 782.00 from Bank of India, Nagpur are secured by 1st pari passu charge over the Companys all immovable properties including all fixed assets & movable machineries at Hinganghat & Burkoni. The said loan is further collaterally secured by 2nd charge on the entire stock of inventory, book debts etc. on pari passu basis. It is further secured by personal guarantee of three promoter directors of the Company.

(b) Working Capital Loans from SBI is Secured by hypothecation of stocks of raw materials, finished goods, stock in process, stores spare parts and book debts and is collaterally secured by way of second charge on the entire Fixed Assets of the company, both present and future.

6. During the year 2000-2001, primary lease period of 1 No. pirn winding machine (Value Rs.20,136/-) taken on lease from ICICI Ltd. expired on 15th Sept 2000, but it could not be transferred to the company by ICICI Ltd. as Income Tax Department has raised the demand of income tax on them for disallowance of depreciation in their assessment. The ICICI Ltd. wants to recover this demand from the company. The ICICI Ltd. has preferred appeal before appellate authorities.

7. In accordance with Accounting Standard 22 issued by the Institute of Chartered Accountants of India, Company has recognized Deferred Tax Liability of Rs. 55.02 lacs in the Profit & Loss Account.

8. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Company during the year carried out an exercise of identifying the assets that may have been impaired in respect of each cash generating unit in accordance with the said Accounting Standard. Accordingly, there is no impairment of the assets during the current year.

9. During the year 1995-96 the company had made Public Issue of Equity Shares. In respect of some investor(s) who had applied for Equity Shares through Stock Invest(s) were returned unpaid by the Bank. As such, in the following cases though the shares have been allotted the application money has not been received.

Further with regard to Public Issue allotment money and First & Final Call Money from those investors whose stock investments were returned unpaid by the Bank is still to be received. The said non-receipt of allotment money is shown as call in arrears.

10. Inter Corporate advance amounting to Rs. 2.77 lacs have become long overdue. Legal proceedings have been initiated for recovery of the same.

11. The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made.

12. Income Tax Assessment of the company has been completed up to A.Y.2007-2008. Companys appeals in respect of some of the earlier assessment orders are pending before the IT. Authorities

Notes :

a. Production & Clearance includes 2200 mtrs. cloth issued as sample.

b. Production & Clearance includes 2293 mtrs. Cloth return & sold during the year.

c. Production & Clearance includes 87083 mtrs. Cloth processed for outside party on job basis.

d. Above cloth figures includes Finished Cloth Opening Stock 5166 mtrs. Rs.1,24,149/- purchases Mtrs. 621630 Rs. 2,35,20,374/- Sales 529849 Mtrs. Rs. 2,23,26,770/- & Closing Stock 96947 Mtrs. Rs. 36,57,116/-.

e. Above figures excludes Dhoti (Opening Stock 20143 Pes. Value Rs.45,76,999/-), Purchases (14275 Pes. Value Rs. 25,28,962), Sales (27571 Pes. Rs.59,49,066/-, Closing Stock (6847 Pes. Rs. 23,55,255/-).

f. Closing stock includes 4104 kgs. of yarn returned and lying outside the bonded warehouse.

g. Above yarn figure excludes 678806 kg.yarn captively consumed at Hinganghat Unit, 488278 kg. yarn captively consumed at Burkoni weaving unit & balance 134191 kg. yarn issued on job to outside weavers on job for manufacturing grey cloth.

h. Production & Turnover includes 1745 kg. yarn pertaining to previous year job issue returned in current year.

i. Above yarn figures excludes 1306432 kg. purchased from outside & subsequently issued to Burkoni unit 1097126 kg., to weaving at Hinganghat 129806 kg., & Spining at Hinganghat 79500 kg.

13. Previous years figures have been reworked, regrouped and rearranged wherever necessary.

14. The Company operates in one business segment namely "Textiles"




Mar 31, 2004

(Rs. in Lacs) 1. Contingent liability not provided for 2003-2004 2002-2003

a. For bills discounted with Bankers Rs. 26.97 Rs. 24.89

b. For Bank Guarantee issued. Rs. 61.25 Rs. 46.41

2. In terms of doctrine of charging the depreciation in proportion to the user of the assets, the depreciation for the strike period during F. Y. 1999-2000,2000- 2001 and 2001-2002 on Plant & Machineries of Hinganghat Unit was not provided to the tune of Rs. 214.63 lacs (Rs. 41.67 lacs + Rs. 88.55 lacs + 84.4] lacs for respective year.)

However, in the context of upgraded technology in textile industry, the depreciation for these years after recalculating written down value on year to year basis of the respective Plant and Machineries worked out in aggregate to Rs. 144.01 lacs and this has been charged to Profit & Loss Account as arrears of depreciation and an equivalent amount is withdrawn from General Reserve and has been credited to Profit & Loss Account. Resultantly, the profit for the year remained unaffected inspite of the aforesaid change.

3. The Company has been accounting liability for Excise Duty on finished goods as and when cleared. The liability of Excise Duty on finished goods lying in stock at the close of the year estimated at Rs. 54.58 Lacs has not been provided for in the accounts and hence not included in valuation of inventory of such goods. However the said liability, if accounted, would have caused no effect on the profit for the year.

4. Company has not provided for/or made any provision towards liability for Leave encashment. The estimated non-provision on this account approximately amounts to Rs. 36.05 lacs resulting in profit being overstated to that extent.

5. Working capital loans from Banks are secured by hypothecation of stocks of raw materials, finished goods, stock in process, stores & spare parts and book debts and is collateraly secured by way of second charge on the entire Fixed Assets of the company, both present and future on a pari-passu basis.

6. During the year 2000-2001, primary lease period of 1 No. pirn winding machine (value Rs. 20,136/-) taken on lease from ICICI Ltd. expired on 15th Sept. 2000, but it could not be transferred to the company by ICICI Ltd. as Income Tax department has raised the demand of income tax on them for disallowance of depreciation in their assessment. The ICICI Ltd. wants to recover this demand from the Company. The ICICI Ltd. has prefered appeal before appealate authorities.

7. RELATED PARTY DISCLOSURE

a) Name of the Related Party Relationship

i) M/s. Prashant Commercial Under significant influence of Key management personnels

ii) Key Management Personnels

Shri G. 0. Mohota Chairman

Shri B. K. Mohota Managing Director

Shri R. D. Mohota Jt. Managing Director

Shri V. K. Mohota Director

Shri Vinay K. Mohota C E. 0.

iii) Relatives of Key Management Personnels

Mr. Prashant Kumar Mohota

Mr. Anurag Kumar Mohota

Mr. Vaibhav Kumar Mohota

Smt. Shantadevi Mohota

Smt. Veenadevi Mohota

Smt. Ushadevi Somani

Smt. Kirandevi Bhagat

Smt. Sunitadevi Chitlangia

Smt. Suryakantadevi Mohota

8. During the year 1995-96 the company had made Public Issue of Equity Shares. In respect of some investor(s) who had applied for Equity Shares through Stock Invests), it were returned unpaid by the Bank. As such, in the following cases though the shares have been allotted the application, allotment and further call money has not been received.

Further with regard to Public Issue allotment money and First & Final Call Money from those investors whose stock investments were returned unpaid by the Bank is still to be received. The said non receipt of allotment money is shown as call in arrears.

9. Inter Corporate Deposit advanced amounting to Rs. 2.70 Lacs have become long overdue. Legal proceedings have been initialed for recovery of the same.

10. The company has not received any information from any of the suppliers of their being a small scale industrial unit. Hence, the amounts due to small scale industrial units outstanding as on 31st March 2004 are not ascertainable.

11. Income Tax Assessment of the company has been completed upto A. Y. 2001 -02. Companys appeals in respect of some of the earlier assessment orders are pending before the I. T. Authorities.

12. Licenced and installed capacity, Production, Turnover and Stock :

i. HINGANGHAT UNIT

Notes

a. Production & Turnover excludes 2400 Mtrs. of Cloth issued as samples.

b. Production and Turnover excludes 451218 Mtrs. of cloth processed for outside party on job (Job amount including excise Rs. 6013932/-)

c. Above cloth figure excludes 11461 Mtrs. Grey cloth purchased from outside party and subsequently sold as it is (Sale value Rs. 813865/-) d.. Turnover is reduced by 68721.50 Mtrs. cloth sold but subsequently rejected & lying outside and is included in closing stock.

e. Production excludes 1162321 kgs. Yarn used as captive consumption and 498094.5 kgs. Yarn issued on job to outside weavers for manufacturing cloth.

f. Turnover exludes 4062 Kg. yarn (Sale Value Rs. 491143/-) sold out of 4254.5 kg. (value Rs. 517173/-) rejected yarn of preveious year lying outside. The balance 192.5 (value Rs. 24063/-) Kg. excise duty paid is still in stock and it is not included in above closing stock figures.

g. Turnover includes 950 kgs. Yarn earlier sold out subsequently rejected/returned and diverted to outside weavers on job for manufacturing grey cloth.

ii. WANI UNIT

Notes

a. Out of 145078 kg. single yarn purchased from outside, 26460 kg. yarn issued on job for manufacturing cloth as it is and 22824 kg. yarn issued on job after doubling and 94173 kgs. yarn used for doubling yarn production and doubled yarn has been packed and included in production figures as given above and balance was in process stock.

b. Out of 49284 kgs. yarn (26460 + 22824} issued on job for manufacturing grey cloth, only 36652.370 kgs. yarn was actually consumed from which 279211 mtrs. of grey cloth was produced and balance 12631.630 kgs. yarn was lying in stock at weavers premises and is not included in above closing stock figure.

c. Out of total 770453 kgs. cotton (purchased & ginned), 337971 kgs. cotton have been consumed for producing 283750 kgs. cotton yarn on job from which 128750 kg. cotton yarn has been sold for total consideration of Rs. 12821651/- and these figures are included in above production and turnover figures.

13. C. Trading Activity (Coal) - Opening Stock (40.340 MT, Value Rs. 43817/-) Sale (40.340 ML, Value Rs. 44414/-).

14. Previous years figures have been reworked, regrouped & rearranged wherever necessary.

15. The Company operates in one business segment namely "Textiles"


Mar 31, 2003

(Rs. in Lacs)

1. Contingent liability not provided for 2002-2003 2001-2002

a. For bills discounted with Bankers Rs. 24.89 Rs. 89.62

b. For Bank Guarantee issued. Rs. 46.41 Rs. 27.47

2. a. In order to reflect the true valuation based on remaining useful life of Factory Building and Motor Vehicles, the company has changed the policy for providing depreciation on these assets from SLM to WDV method.

Consequent to this change, there is an additional charge of depreciation during the year of Rs. 78.55 Lacs relating to previous years and an equivalent amount has been withdrawn from General Reserve and credited to Profit and Loss Account.

Had there been no change in the method of depreciation on Factory Building and Motor Vehicles, the depreciation charge for the year would have been lower by Rs. 7.95 Lacs excluding the charge relating to previous year. Consequently, Reserve and surplus and net block of fixed assets would have been higher by Rs. 86.50 Lacs. b. Depreciation includes Rs. 42.26 Lacs on account of depreciation provided on addition due to revaluation portion of assets and it has not been adjusted against revaluation reserve.

3. The Company has been accounting liability for Excise Duty on finished goods as and when cleared. The liability of Excise Duty on finished goods lying in stock at the close of the year estimated at Rs. 120.42 Lacs has not been provided for in the accounts and hence not included in valuation of inventory of such goods. However the said liability, if accounted, would have caused no effect on the profit for the year.

4. In view of the inadequacy of Profit, Company has not provided for/or made any contribution to Group Gratuity Fund managed by Life Insurance Corporation in the year under consideration. The estimated non-provision/contribution on this account approximately amounts to Rs. 93.50 Lacs resulting in profit being overstated to that extent.

5. Company has not provided for/or made any provision towards liability for Leave encashment. The estimated non-provision on this account approximately amounts to Rs. 31.97 lacs resulting in profit being overstated to that extent.

6. (a) 01. Term Loan of Rs. 131.88 Lacs (P. Y. 267.78 Lacs) from Bank of India is secured by a pari passu first mortgage and charge of all the immovable properties both present and future and a first charge by way of hypothecation of all the movables (save and except book debts) including movable machinery, machinery spares, tools and accessories, present and future subject to prior charges created and/or to be created;

i) In favour of the Bankers on the stocks of raw materials, semi finished and finished goods, consumable stores and such other movable as may be agreed to by the lenders for securing the borrowings for working capital requirement in the ordinary course of business.

ii) Further secured by a personal guarantee of Four Directors. 02. Loan from Life Insurance Corporation Rs. 19.67 lacs (P. Y. Rs. 15.46 lacs) is secured against Keyman Policy taken by the company

(b) Working capital loan from Banks is secured by hypothecation of stocks of raw materials, finished goods, stock in process, stores & spareparts and book debts and is collateraly secured by way of second charge on the entire Fixed Assets of the company, both present and future on a pari-passu basis.

7. During the year 2000-2001, primary lease period of 1 No. pirn winding machine (value Rs. 20,136/-) taken on lease from ICICI Ltd. expired on 15th Sept. 2000, but it could not be transferred to the company by ICICI Ltd. as Income Tax department has raised the demand of income tax on them for disallowance of depreciation in their assessment. The ICICI Ltd. wants to recover this demand from the Company. The ICICI Ltd. has prefered appeal before appealate authorities.

8. RELATED PARTY DISCLOSURE

a) Name of the Related Party Relationship

i) M/s. Prashant Commercial Under significant influence of Key management personnels

ii) M/s. Vibha Synthetics Pvt. Ltd. Under significant influence of Key management personnels

iii) Key Management Personnels

Shri G. D. Mohota Chairman

Shri B. K. Mohota Managing Director

Shri R. D. Mohota Jt. Managing Director

Shri V. K. Mohota Director

Shri Vinay K. Mohota C. E. 0.

iv) Relatives of Key Management Personnels

Mr. Prashant Kumar Mohota

Mr. Anurag Kumar Mohota

Mr. Vaibhav Kumar Mohota

Smt. Shantadevi Mohota

Smt. Veenadevi Mohota

Smt. Ushadevi Somani

Smt. Kirandevi Bhagat

Smt. Sunitadevi Chitlangia

Smt. Suryakantadevi Mohota

9. Inter Corporate Deposits advanced amounting to Rs. 7.62 Lacs have become long overdue. Legal proceedings have been initiated for recovery of the same.

10. The company has not received any information from any of the suppliers of their being a small scale industrial unit. Hence, the amounts due to small scale industrial units outstanding as on 31st March 2003 are not ascertainable.

11. Income Tax Assessment of the company has been completed upto A. Y. 2000-01. Companys appeals in respect of some of the earlier assessment orders are pending before the I. T. Authorities.

Notes

a. Production & Turnover excludes 2425 Mtrs. Cloth issued as samples.

b. Production and Turnover includes 67477 Mtrs. of cloth (Job amount including excise Rs. 810498) processed for outside party on job.

c. Production and Turnover includes 13070 Mtrs. Grey Cotton cloth manufactured on job from outside weavers in Wani Unit (Out of 3072 Kgs. Cotton Yarn supplied)

d. Above cloth figure excludes 1802042.05 Mtrs. Grey cloth purchased from outside out of which 307137 mtrs. Grey Cloth subsequently sold (Sale value Rs. 13120643)

e. Opening stock and Turnover includes 1000 kgs. excise duty paid rejected yarn lying outside, resold in current year.

f. Opening stock and Turnover includes 16423 kgs. Cotton Yarn sold in Wani Unit.

g. Production & Turnover includes 2041.200 Kgs. Yarn purchased and subsequently sold.

h. Production and turnover excludes 1055022 kgs. Yarn used as captive consumption and 515852 kgs. Yarn issued on job to outside weavers for manufacturing grey cloth.

i. Production & Turnover excludes 30 kgs. Yarn issued as samples.

j. Turnover includes 11271.50 kgs. Yarn earlier sold out subsequently returned and diverted to outside weavers on job for manufacturing grey cloth.

k. Above yarn figures exlcludes 158876 kgs. of yarn purchase from outside out of which 184 kgs. of yarn issued on job to outside weavers for manufacturing cloth, 3968 kgs. issued for doubling (i. e. captive), 152683 kgs. issued to weaving (i. e. captive) and 2041.20 kgs. yarn sold as it is.

l. Closing stock of yarn exludes 4254.50 kgs. excise duty paid yarn (value Rs. 517173) rejected and lying outside.

12 (C) TRADING ACTIVITY - Coal purchase (1470 MT, Value Rs. 1497667) Coal Sale (1429.60 ML, Value Rs. 1461740), Closing stock (40.340 MT, Value Rs. 43817)

13. Previous years figures have been reworked, regrouped & rearranged wherever necessary.

14. The Company operates in one business segment namely Textiles"


Mar 31, 2002

(Rs. in Lacs)

1. Contingent liability not provided for 2001-2002 2000-2001

a. For bills discounted with Bankers since realised Rs. 89.62 Rs.21.45

b. For Bank Guarantee issued. Rs. 27.47 Rs. 27.08

2. In order to reflect the true valuation based on remaining useful life of Non-Factory Building and Furniture and Fixtures, the company has changed the policy for providing depreciation on these assets from SLM to WDV method.

Consequent to this change, there is an additional charge of depreciation during the year of Rs. 39.61 Lacs relating to previous years and an equivalent amount has been withdrawn from General Reserve and credited to Profit and Loss Account.

Had there been no change in the method of depreciation on Non-factory Building and Furniture and Fixture, the depreciation charge for the year would have been lower by Rs. 5.90 Lacs excluding the charge relating to previous year. Consequently, Reserve and surplus and net block of fixed assets would have been higher by Rs. 45.51 Lacs.

3. a. During the year, due to labour strike, Companys Hinganghat Unit and Wani Unit were closed for 122 days and 31 days respectively. Hence, proportionate depreciation on Plant and Machinery for closure period amounting to Rs. 84.41 lacs and Rs. 19.05 Lacs respectively (Total Rs. 103.46 Lacs) has not been provided in the books of account which has resulted in Profit being overstated to that extent.

b. Depreciation includes Rs. 31.33 Lacs on account of depreciation provided on addition due to revaluation portion of assets which was not set-off against revaluation reserve as against past practice of setting off the same against revaluation reserves.

4. The Company has been accounting liability for Excise Duty on finished goods as and when cleared. The liability of Excise Duty on finished goods lying in stock at the close of the year estimated at Rs. 57.49 Lacs has not been provided for in the accounts and hence not included in valuation of inventory of such goods. However the said liability, if accounted, would have caused no effect on the profit for the year.

5. In view of the inadequacy of Profit, Company has not provided for/or made any contribution to Group Gratuity Fund managed by Life Insurance Corporation in the year under consideration. The estimated non-provision/contribution on this account approximately amounts to Rs. 48.18 Lacs resulting in profit being overstated to that extent.

6. Diminution in market value of quoted investment to the extent of Rs. 9.00 Lacs is being considered of temporary nature and hence not provided for. To this extent profits of the year and the cost of investments have been overstated.

7. (a) 01. A Term Loan of Rs. 5.00 Lacs (P. Y. 212.50 Lacs) from IDBI secured by a pari passu first mortgage and charge of all the immovable properties both present and future and a first charge by way of hypothecation of all the movables (save and except book debts) including movable machinery,machinery spares, tools and accessories, present and future subject to prior charges created and/or to be created for:

i) In favour of the Bankers on the stocks of raw materials, semi finished and finished goods, consumable stores and such other movable as may be agreed to by the lenders for securing the borrowings for working capital requirement in the ordinary course of business. ii) Further secured by a personal guarantee of three Directors.

02. A Term Loan of Rs. 267.78 Lacs (P. Y. Rs. 403.78 Lacs) from Bank of India secured by a pari passu first mortgage and charge of all the immovable properities both present and future and a first charge by way of hypothecation of all the movables (save and except book debts) including movable machinery, machinery spares, tools and accessories, present and future subject to prior charges created and/or to be created:

i) In favour of the Bankers on the stocks of raw materials, semi finished and finished goods, consumable stores and such other movable as may be agreed to by the lenders for securing the borrowings for working capital requirement in the ordinary course of business. ii) Further secured by a personal guarantee of four Directors.

03. Loan from Life Insurance Corporation Rs. 15.46 Lacs (P. Y. Rs. 8.79 Lacs) is secured against Keyman Policy taken by the Company.

8.(b) Working capital loan from Banks is secured by hypothecation of stocks of raw materials, finished goods, stock in process, stores & spareparts and book debts and is collateraly secured by way of second charge on the entire Fixed Assets of the company, both present and future on a pari-passu basis. The working capital loan amount includes short term corporate loan of Rs. 250.00 Lacs availed from Bank of India and secured by pari-passu charge by way of hypothecation of movable fixed assets and personal guarantee of 4 Directors.

9. During the year 2000-2001, primary lease period of 1 No. pirn winding machine (value Rs. 20,136/-) taken on lease from ICICI Ltd. expired on 15th Sept. 2000, but it could not be transferred to the company by ICICI Ltd. as Income Tax department has raised the demand of income tax on them for disallowance of depreciation in their assessment. The ICICI Ltd. wants to recover this demand from the Company. The ICICI Ltd. has prefered appeal before appealate authorities.

10. RELATED PARTY DISCLOSURE

10.a)Name of the Related Party Relationship

i) M/s. Prashant Commercial Under significant influence of Key management personnels

ii) M/s. R. S. R. Mohota & Sons Under significant influence of Key management personnels

iii) Key Management Personnels

Shri G. D. Mohota Chairman

Shri B. K. Mohota Managing Director

Shri R. D. Mohota. Managing Director

Shri V. K. Mohota Director

iv) Relatives of Key Management Personnels

Mr. Prashant Kumar Mohota Mr. Anurag Kumar Mohota Mr. Vaibhav Kumar Mohota Smt. Shantadevi Mohota Smt. Veenadevi Mohota Smt. Ushadevi Somani Smt. Kirandevi Bhagat Smt. Sunitadevi Chitlangia

11. Advances given to suppliers aggregating Rs. 64.66 Lacs and Inter Corporate Deposits advanced amounting to Rs. 7.62 Lacs have become long overdue. Legal proceedings have been initiated for recovery of the same.

12. The company has not received any information from any of the suppliers of their being a small scale industrial unit. Hence, the amounts due to small scale industrial units outstanding as on 31st March 2002 are not ascertainable.

13. Income Tax Assessment of the company has been completed upto A. Y. 1998-99. Companys appeals in respect of some of the earlier assessment orders are pending before the I. T. Authorities.

Notes

a. Production & Turnover excludes 18655 Mtrs. Cloth (Job amount including excise Rs. 174772/-) processed for outside party on job.

b. Opening stock and delivery includes 21451 Mtrs.. excise duty paid cloth lying outside.

c. Production and Turnover of cloth includes 1200 Mtrs. of cloth issued as sample.

d. Above cloth figure excludes 42698 Mtrs. (Rs. 1701972) grey cloth purchased from outside and subsequently sold.

e. Production & Turnover includes 38651 Mtrs. grey cotton cloth manufactured on job from outside weavers (out of 6379 Kg. cotton yarn supplied)

f. Closing stock of cloth excludes 2661 Mtrs., value Rs. 153494/- rejected goods lying outside.

g. Opening stock includes 3460 kgs. excise duty paid yam lying rejected at outside.

h. Production and delivery excludes 843337 kgs. yarn used as captive consumption and 412924.1 kgs. yarn issued on job to outside weavers for manufacturing grey cloth.

i. Delivery includes out of opening rejected (3460 kg.), 2660 kg. yarn issued to outside weavers on job for manufacturing grey cloth and 500 kgs. sold on as it is basis.

j. Above figures excludes yarn purchase 70770.70 kg. (70848-77.3 waste) from outside and subsequently issued to outside weavers on job for manufacturing grey cloth.

k. Delivery includes 6450 kg. of yarn earlier sold but subsequently returned and diverted to outside weavers on job for manufacturing grey cloth.

I. Closing stock of yarn includes 1000 kg. excise duty paid yarn rejected and lying outside (300 kg. old + 700 kg. new).

m. Above figures excludes 7287.2 kg. yarn issued in previous year (2000-2001) on job to outside weavers for manufacturing grey cloth, but subsequently returned in the year (2001-2002) and sold as it is.

n. Production includes 43302 kg. cotton yarn manufactured from outside parties on job.

o. Turnover quantity and value includes 20500 kg. of cotton yarn manufactured on job subsequently sold and turnover quantity further includes 6379 kg. cotton yarn issued to outside weavers on job for manufacturing grey cloth.

14. Previous years figures have been reworked, regrouped & rearranged wherever necessary.

15. The Company operates in one business segment namely Textiles


Mar 31, 2000

1999-2000 1998-99 (Rs. in Lacs) (Rs. in Lacs)

1. Contingent liability not provided for:

a. For bills discounted with Bankers since realised Rs. 41.49 Rs.53.95

b. For Bank Guarantee issued. Rs. 16.33 Rs.7.75

2. Salaries, wages & bonus include Rs. 40,37,576/- being contribution to Employees Gratuity Fund.

3. A sum of Rs. 62.06 lacs is transferred from revaluation reserve account to credit of profit and loss account, which is equal to the amount of depreciation on the sum by which the value of plant and machinery was increased as a result of revaluation.

4. The Company has been accounting liability for Excise Duty on finished goods as and when cleared. The liability of Excise Duty on finished goods lying in stock at the close of the year estimated at Rs. 21.07 Lacs has not been provided for in the accounts and hence not included in valuation of inventory of such goods. However the said liability, if accounted, would have caused no effect on the profit for the year.

5. During the year, due to an illegal labour strike, Companys Hinganghat Unit was closed for 94 days. Hence, proportionate depreciation on Plant and Machinery for closure period amounting to Rs. 41.67 lacs has not been provided in the books of account which has resulted in profit being overstated to that extent.

6. A change in the method of valuation of finished goods inventory was effected in order to comply with revised Accounting Standard (AS-2) "Valuation of Inventories" issued by the Institute of Chartered Accountants of India. As an effect of this change valuation is reduced by Rs. 4.46 lacs.

7.(a) 01. Term Loan of Rs. 164.58 Lacs (1998-99 Rs. 305.91 Lacs) from IDBI under Assets Credit Scheme (ACS) are secured by an exclusive charge by way of hypothecation of assets acquired under the Scheme. Further secured by first mortage and charge of all the companys movable properties both present and future.

First charge by way of all hypothecation of the companys movables excluding those which are exclusively charged in favour of IDBI present and future (save and except Book Debts) subject to prior charges created and/or to be created in favour of the Companys Bankers on the Companys stock of raw materials, semi finished and finished goods, consumable stores and such other movables as may be agreed to by IDBI for securing the borrowing for working capital requirements in the ordinary course of business.

02. A Term Loan of Rs. 482.50 Lacs from IDBI secured by a first mortgage and charge of all the immovable properties both present and future and a first charge by way of hypothecation of all the movables (save and except book debts) including movable machinery, machinery spares, tools and accessories, present and future subject to prior charges created and/or to be created -

i) In favour of the Bankers on the stocks of raw materials, semi finished and finished goods, consumable stores and such other movable as may be agreed to by the lenders for securing the borrowings for working capital requirement in the ordinary course of business.

ii. Assets acquired under the ACS scheme are under exclusively charge of IDBI for its Financial Assitance of Rs. 600.00 Lacs granted under the ACS scheme.

Further secured by a personal guarantee of three Directors.

03. A Term Loan of Rs. 539.78 Lacs (1998-99 Rs. 404.33 Lacs) from Bank of India secured by a first mortgage and charge of all the immovable properties both present and future and a first charge by way of hypothecation of all the movables (save and except book debts) including movable machinery, machinery spares, tools and accessories, present and future subject to prior charges created and / or to be created -

i. In favour of the Bankers on the stocks of raw materials, semi finished and finished goods, consumable stores and such other movables as may be agreed to by the lenders for securing the borrowings for working capital requirement in the ordinary course of business.

ii. Assets acquired under the ACS scheme are under exclusive charge of IDBI for its Financial Assitance of Rs. 600.00 Lacs granted under the ACS scheme.

Further secured by a personal guarantee of four Directors.

(b) Working capital loan from Bank is secured by hypothecation of stocks of raw materials, finished goods, stock in process, stores & spareparts and book debts and is collateraly secured by way of second charge on the entire Fixed Assets of the company, both present and future on a pari-passu basis.

8. During the year company has prepaid outstanding balance of term loan availed from IDBI for its expansion project at Wani on pre-payment premium of Rs. 17,14,116/-. The pre-payment premium of Rs. 17,14,116/- being deferred revenue expenses is to be amortised over a period of remaining original repayment schedule.

9. Sundry Debtors includes debts due by companies in which directors are interested amount to Rs. 85.67 (Previous year Rs. 290.46 Lacs), Maximum amount outstanding during the year are Rs. 470.35 Lacs (Previous year Rs. 325.64 Lacs)

11. Unexpired future lease rent payable by the Company is Rs. 15.33 lacs (last year 57.23 Lacs).

12. The company has not received any information from any of the suppliers of their being a small scale industrial unit. Hence, the amounts due to small scale industrial units outstanding as on 31 st March 2000 are not ascertainable.

13. Income Tax Assessment of the company has been completed upto A. Y. 1997-98. Companys appeals in respect of sum of the earlier assessment orders are pending before the I.T. Authorities.

14. Company is liable to book profit tax (MAT) amounting to Rs. 2.75 lacs and provision for same is made in the books of account.

Notes:

1. Production & turnover of cloth excludes 14,80,099 Mtrs. Cloth (Job amount including excise Rs. 1,69,84,335/-) processed for outside parties on job.

2. Production of yarn excludes 9,28,298 kgs. of yarn used for captive consumptions and 2,56,249 kgs. of yarn issued to outside parties on job for manufacuring cloth.

3. Closing stock of yarn includes 13,945.5 kg. of excise duty paid yarn earlier delivered but subsequently rejected and lying outside.

4. Turnover excludes sale of erstwhile Export Division Cloth 1,26,140 Mtrs, value Rs. 48,69,062/-

19. Previous years figures have been reworked, regrouped & rearranged wherever necessary.

 
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