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Notes to Accounts of Satia Industries Ltd.

Mar 31, 2015

1. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provision for all known liabilities is adequate and neither is excess nor short of the amount reasonably necessary.

2. The liability of Excise Duty on finished goods remaining nucleated in the factory premises and lying in stock at the end of the year estimated at Rs 56.33 lacs (Previous year Rs 26.69 lacs) are not included in the valuation of inventory of such goods. However they said liability if provided in accounts would have no effect on the profits for the period.

Earning Per Share (EPS)

Basic

Diluted

Diluted EPS is calculated after taking into consideration of potential equity share capital.

3. During the period the company has made provision for Tax amounting to Rs. 127.00 lacs.

4. The management of the company has not recognized any loss for impairment of any of the fixed assets of the company

5. Depreciation

Effective from April 01, 2014, the company has with retrospective effect changed its method of providing depreciation on fixed assets from " Straight Line" method to them, "Written Down Value " method, at the rates keeping in view the remaining useful life as certified by the Chartered Engineers, except the Captive Power Plants(CO-Gen Division) where in the useful life of the assets has been taken wherever necessary with the help of a Technical Advice keeping in view the terms of Schedule II of Companies Act 2013. Had the company continued to use the earlier method the depreciation would have been at a figure

6. Current Assets including advances are considered good and in view of the management of the company to be realizable within 12 months from the date of Balance Sheet.

7. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.

8. Figures in brackets represent figures of previous year.

9. Previous Year's figures have been regrouped and/or re-arranged wherever considered necessary.


Mar 31, 2014

1. Corporate Information:-

Satia Industries Limited formerly known as Satia Paper Mills Limited (herein after referred to as 'The Company') is a manufacturer of Writing and Printing Paper. The company is also engaged in generation of power and trading activities in Cotton & Yarn.

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share.

20,00,000 Shares out of the issued,subscribed and paid up share capital were allotted as bonus shares in the last five years by capitalization of reserves.

In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.Share Application Money

The Company has received Share Application money of Rs.300.00 Lacs ( Rs.175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the financial year 2004-2005 and 32.55 Lacs in financial year 2005- 2006) from promoters and associates to partly finance the project cost approved and stipulated by Financial Institution and Bank.

During the year ended 31.03.06 the company allotted 20,00,000 Equity shares @ Rs. 10 per share amounting to Rs.200 .00 lacs to the promoters and their associates on preferential basis as per approval received from SEBI and remaining share application money of Rs.100.00 lacs against which shares will be allotted in future as permitted under the statue. These funds were utilized in the year of receipt for purpose of capital expenditure as per scheme approved by the financial institutions and the terms of allotment are as below:-

No. of Balance Shares May be issued: 118003 The amount of premium: Rs. 74.74

The company has sufficient authorised share capital amount for allotment of shares against the share application.

3. The loans are further secured by pledge of 24 lacs equity shares held by the promoters

4. Vehicle loans are secured by hypothecation of specific assets only.

5. Instalments for repayment of term loans due to be paid in the next year amountng to Rs. 1397.59 lacs ( PY Rs.1538.34 lacs) has been treated as long term liability.

6. Working capital Borrowings are secured by hypothecation of all stocks of raw material stores,work in progress finished stock and book debts,personal guarantee by M.D & a Director of the company.In addition to this the working capital limits are further secured by way of second parri passu charge on all the fixed assets of the company.

7. The loan due to PNB is further secured by pledge of 24 lacs equity shares held by the promoters

8. Exceptional Items

There were no exceptional Items during the year.

9. Extraordinary Items

In includes prior period expenses.

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

Year Ended Year Ended Particulars As On As On 31March,2014 31March,2013

Bank Guarantee 540.94 81.14

Unexpired Letter of Credit 1681.33 1962.53 (Opened by Bank) (Material received against LCs has been accounted for and credited to suppliers account)

Excise & Customs duty demand 3.83 3.83 in dispute

Sales Tax demand in dispute 3.86 3.86

Customs Duty in respect of 73.72 53.27 Export Obligation

Corporate Guarantee in favour 1210.00 490.00 of Uco Bank on Behalf of T.C Spinners Pvt.Ltd (Outstanding balance Rs. 838.65)

11. DISCLOSURE REQUIREMENT AS PER AS-18, ON RELATED PARTY DISCLOSURE.

Nature of Relationship Name of Related Party

Individual Owing directly or M/s T.C. Spinners Pvt. Ltd. indirectly substantial interest in the voting power of the company. Associates

Key Management Personnel Dr. Ajay Satia

Mr. R.K. Bhandari Mr. Janak Raj Sharma

Relative of key Management(Relevant Mrs Bindu Satia (Wife of Dr. Personnel) Ajay Satia)

Mr. Anil Satia (Brother of Dr. Ajay Satia)

Mrs. Saloni Satia( Wife of Mr Anil Satia)

Smt.Krishna Satia (Mother of Dr. Ajay Satia)

Mrs. Renu Pahwa (Sister of Dr. Ajay Satia)

Mr. Rajat Mehta (son in law of Dr.Ajay Satia)

Ms. Yachna Satia (Daughter of Dr. Ajay Satia)

Mr. Chirag Satia (Son of Dr. Ajay Satia)

Mr. Kulbir Pahwa (Sisters Husband of Dr. Ajay Satia)

Mr. Vinod Saluja (Sisters Husband of Dr. Ajay Satia)

Mrs. Archana Saluja (Sister of Dr. Ajay Satia)

Mrs.Pushpa Bhandari (Mother of Mr. R.K. Bhandari)

Mrs. Kiran Bhandari (Wife of Mr. R.K. Bhandari)

Ms. Vasudha Bhandari (Daughter of Mr. R.K. Bhandari)

Mr. Amit Sharma (Son of Mr. Janak Raj. Sharma)

Mr. Dhruv Satia (Son of Dr Ajay Satia)

12. MSMED ACT2006

The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006).Based on the information available with the company, balance due to Micro & Small Enterprises as defined under the MSMED ACT,2006 is Rs. 35.73 lacs (previous year Rs.24.88 lacs). Further no interest during the year has been paid under the terms of the MSMED Act, 2006.

13. EMPLOYEE BENEFITS

Effective from 1st January,2007 the company adopted Accounting Standard 15 (revised 2005) on Employees Benefits issued by the Institute of Chartered Accountants of India.

14. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provi- sion for all known liabilities is adequate and neither is excess nor short of the amount reasonably necessary.

15. The liability of Excise Duty on finished goods remaining uncleared in the factory premises and lying in stock at the end of the year estimated at Rs 26.69 lacs (Previous year Rs.28.48 lacs) are not included in the valuation of inventory of such goods. However the said liability if provided in accounts would have no effect on the profits for the period.

16. During the period the company has made provision for Tax amounting to Rs. 710 lacs.

17. The management of the company has not recognised any loss for impairement of any of the fixed of the company.

18. The management of the company has recognised the loss of advance of Rs.8.52 crores given to PSIDC being irrecoverable.

19. Depreciation

The management has decided to account for depreciation during the year on the basis of remaining useful life of the fixed assets as determined by an independent agency. Consequently the depreciation charge for the current year is higher.

20. Segment Reporting

A. Business Segments:

Based on the guiding principles given in AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Groups business segment include: Writing & Printing Paper, power generation and yarn division.

B. Geographical Segments:

Since the Group activities/operations are primarily within the country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment

C. Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business segments as set out in note no.1 of "Notes to the accounts", the accounting policies in relation to segment reporting are as under:

a) Segment Revenue and expenses:

Segment revenue and expenses are directly attributable to the segments.

b) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist prin- cipally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and ac- crued liabilities.

c) Inter segment revenue:

Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

d) Information about business segments: The detailed reporting is as per annexure. During the year company has started a new segment for agriculture operations of plantation. The cost incurred in this segment has been treated as prepaid expenses and included in the inventories which will be set off against the future income under the segment.

21. Current Assets including advances are considered good and in view of the management of the company to be realizable within 12 months from the date of Balance Sheet.

22. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.

23. Figures in brackets represent figures of previous year.

24. Previous Year's figures have been regrouped and/or re-arranged wherever considered necessary.


Mar 31, 2013

1. Corporate Information:-

Satia industries Limited formerly known as Satia Paper Mills Limited (herein after referred to as The Company') is a manufacturer of Writing and Printing Paper. The company is also engaged in generation of power and trading activities in Cotton & Yarn.

2. The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-, Each holder of equity shares is entitled to one vote per share.

20,00,000 Shares out of the issued,subscribed and paid up share capital were allotted as bonus (20,00,000) shares in the last five years by capitalization of Reserves.

In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Share Application Money

The Company has received Share Application money of Rs.300.00 Lacs (Rs. 175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the financial year 2004-2005 and 32.55 Lacs in financial year 2005-2006) from promoters and associates to partly finance the project cost approved and stipulated by Financial Institution and Bank. During the year ended 31.03.06 the company has allotted 20,00,000 Equity shares @10 per shares amounting to Rs.200.00 lacs to the Promoters and their associates on preferential basis as per approval received from SEBI and remaining share application money of Rs. 100.00 lacs against which shares will be allotted in future as permitted under the statue. These funds were utilized in the year of receipt for purpose of capital expenditure as per scheme approved by the financial institutions and the terms of allotment are as below:-

No. of Balance Shares Proposed to be issued: 140357 The amount of premium: Rs. 61.25

The company have sufficient authorised share capital amount for allotment of shares against the share application.

4. Contingent Liabilities and Commitments to the extent not provided for)

Year Ended Year Ended Particulars As On As On 31 March,2013 31March,2012

Bank Guarantee 81.14 227.98

Unexpired Letter of Credit 1962.53 1239.09 (Opened by Bank)

(Material received against LCs has been accounted for and credited to suppliers account)

Excise & Customs duty demand in dispute 3.83 4.40

Sales Tax demand in dispute 3.86 3.86

Customs Duty in respect of Export Obligation 53.27 22.78

Corporate Guarantee in favour of Uco Bank on 490.00 490.00

Behalf of T.C Spinners Pvt.Ltd(Outstanding balance Rs. 204.83)

5. DISCLOSURE REQUIREMENT AS PER AS-18, ON RELATED PARTY DISCLOSURE.

Nature of Relationship Name of Related Party

Individual Owing directly or M/s T.C. Spinners Pvt. Ltd. indirectly substantial interest in the voting power of the company.

Key Management Personnel Mr. Ajay Satia

Mr. R.K. Bhandari Mr. Janak Raj Sharma

Relative of key Management(Relevant Mrs Bindu Satia (Wife of Sh. Personnel) Ajay Satia)

Mr. Anil Satia (Brother of Sh. Ajay Satia)

Mrs Saloni Satia( Wife of Sh Anil Satia)

Smt.Krishna Satia (Mother of Sh. Ajay Satia)

Mrs. Renu Pahwa (Sister of Sh. Ajay Satia)

Ms Yachna Satia (Daughter of Sh. Ajay Satia)

Mr. Chirag Satia (Son of Sh. Ajay Satia)

Mr. Kulbir Pahwa (Sisters Husband of Dr. Ajay Satia)

Mr. Vinod Saiuja (Sisters Husband of Dr. Ajay Satia)

Mrs. Archana Saiuja (Sister of Dr. Ajay Satia)

Mrs. Pushpa Bhandari (Mother of Sh. R.K. Bhandari)

Mrs. Kiran Bhandari (Wife of Sh. R.K. Bhandari)

Ms. Vasudha Bhandari (Daughter of Sh. R.K. Bhandari)

Mr. Amit Sharma (Son of Sh. Janak Raj. Sharma)

Mr. Dhruv Satia (Son of Dr Ajay Satia)

6. MSMED ACT2006

The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006). Based on the information available with the company, balance due to Micro & Small Enterprises as defined under the MSMED ACT, 2006 is Rs. 24.88 lacs (previous year Rs. 20.28 lacs). Further no interest during the year has been paid under the terms of the MSMED Act, 2006.

7. CER/VER/REC ACCOUNTING

Carbon Emission Reductions (CER), Voluntary Emission Reductions (VER) and Renewable Energy Certificates have been accounted for on accrual basis against the Clean Development Mechanism registered (CDM) project with the United Nations Framework Convention on Climate Change (UNFCCC).

8. EMPLOYEE BENEFITS

Effective from 1st January, 2007 the company adopted Accounting Standard 15 (revised 2005) on Employees Benefits issued by the Institute of Chartered Accountants of India.

9. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provision for all known liabilities is adequate and neither is excess nor short of the amount reason- ably necessary.

10. The liability of Excise Duty on finished goods remaining uncleared in the factory premises and lying in stock at the end of the year estimated at Rs 28.48 lacs (Previous year Rs.22.26 lacs) are not included in the valuation of inventory of such goods. However the said liability if provided in accounts would have no effect on the profits for the period.

11. During the period the company has made provisions for Minimum Alternative Tax amounting to Rs 386 Lacs against which the Company is entitled to MAT Credit entitlment of 386 lacs. The managemant of the Company has not recognised any loss for imparcment of any of the fixed of the Company.

12. Segment Reporting

A. Business Segments:

Based on the guiding principles given in AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Groups business segment include: Writing & Printing Paper, power generation and yarn division.

B. Geographical segments:

Since the Group activities/operations are primarily within the country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment.

C. Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business segments as set out in note no.1 of "Notes to the accounts", the accounting policies in relation to segment reporting are as under:

a) Segment Revenue and expenses:

Segment revenue and expenses are directly attributable to the segments.

b) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

c) Inter segment revenue:

Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

d) Information about business segments:

The detailed reporting is as per annexure. During the year company has started a new segment for agriculture operations of plantation. The cost incurred in this segment has been treated as prepaid expenses and included in the inventories which will be set of against the future income under the segment.

13. Current Assets including advances are considered good and in view of the management of the company to be realizable within 12 months from the date of Balance Sheet.

14. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.

15. Figures in brackets represent figures of previous year.

16. Previous Year's figures have been regrouped and/or re-arranged wherever considered necessary. Figures have been rounded off to the nearest rupee.


Mar 31, 2012

1. Nature of Operations:-

Satia Industries Limited formerly known as Satia Paper Mills Limited (herein after referred to as The Company') is a manufacturer of Writing and Printing Paper. The company is also engaged in generation of power and trading activities in Cotton & Yarn.

2. Share Application Money

The Company has received Share Application money of Rs.300.00 Lacs ( Rs.175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the financial year 2004-2005 and 32.55 Lacs in financial year 2005-2006) from promoters and associates to partly finance the project cost approved and stipulated by Financial Institution and Bank. During the year ended 31.03.06 the company has allotted 20,00,000 Equity shares @ 10 per shares amounting to Rs.200 .00 lacs to the and asso- ciates on preferential basis as per approval received from SEBI and remaining share applica- tion money of Rs.100.00 lacs against which shares will be allotted in future as permitted under the statue. These funds were utilized in the year of receipt for purpose of capital expenditure as per scheme approved by the financial institutions and the terms of allotment are as below:-

No. of Balance Shares Proposed to be issued: 174322 The amount of premium: Rs. 47.36

The company have sufficient authorised share capital amount for allotment of shares against the share application.

3. Contingent Liabilities and Commitments to the extent not provided for)

Year Ended Year Ended Particulars As On As On 31 March,2012 31 March,2011

Bank Guarantee 227.98 721.97

Unexpired Letter of Credit 1239.09 1129.02 (Opened by Bank) (Material received against LCs has been accounted for and credited to suppliers account)

Excise & Customs duty demand 4.40 4.40 in dispute

Sales Tax demand in dispute 3.86 3.86

Customs Duty in respect of 22.78 0.12 Export Obligation

Corporate Guarantee in favour 490.00 490.00 of Uco Bank on Behalf of T.C Spinners Pvt. Ltd (Outstanding balance Rs. 287.92)

4. DISCLOSURE REQUIREMENT AS PER AS-18, ON RELATED PARTY DISCLOSURE.

Nature of Relationship Name of Related Party

Individual Owing directly or M/s T.C. Spinners Pvt. Ltd. indirectly substantial interest in the voting power of the company.

Key Management Personnel Mr.Ajay Satia Mr. R.K. Bhandari Mr. Janak Raj Sharma

Relative of key Management Mrs Bindu Satia (Wife of Sh. (Relevant Personnel) Ajay Satia)

Mr. Anil Satia (Brother of Sh. Ajay Satia)

Mrs Saloni Satia( Wife of Sh Anil Satia)

Smt.Krishna Satia (Mother of Sh. Ajay Satia)

Mrs. Renu Pahwa (Sister of Sh. Ajay Satia)

Ms Yachna Satia (Daughter of Sh. Ajay Satia)

Mr. Chirag Satia (Son of Sh. Ajay Satia)

Mr.Kulbir Pahwa (Sisters Husband of Dr. Ajay Satia)

Mr. Vinod Saluja (Sisters Husband of Dr. Ajay Satia)

Mrs. Archana Saluja (Sister of Dr. Ajay Satia)

Mrs.Pushpa Bhandari (Mother of Sh. R.K. Bhandari)

Mrs. Kiran Bhandari (Wife of Sh. R.K. Bhandari)

Ms.Vasudha Bhandari (Daughter of Sh. R.K. Bhandari)

Mr. Amit Sharma (Son of Sh. Janak Raj. Sharma)

Mr. Dhruv Satia (Son of Dr Ajay Satia)

5. MSMED ACT2006

The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006).Based on the information available with the company, balance due to Micro & Small Enterprises as defined under the MSMED ACT, 2006 is Rs. 20.28 lacs (previous year Rs. 37.84lacs). Further no interest during the year has been paid under the terms of the MSMED Act, 2006.

6. CER/VER ACCOUNTING

Carbon Emission Reductions (CER) and Voluntary Emission Reductions (VER) have been accounted for on accrual basis against the Clean Development Mechanism (CDM) project registered with the United Nations Framework Convention on Climate Change (UNFCCC).

7. EMPLOYEE BENEFITS

Effective from 1st January, 2007 the company adopted Accounting Standard 15 (revised 2005) on Employees Benefits issued by the Institute of Chartered Accountants of India.

The following table sets out the status of the gratuity scheme plan as at 31.03.2012.

8. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provision for all known liabilities is adequate and neither is excess nor short of the amount reasonably necessary.

9. The liability of Excise Duty on finished goods remaining uncleared in the factory premises and lying in stock at the end of the year estimated at Rs 22.26 lacs (Previous year Rs.28.64 lacs) are not included in the valuation of inventory of such goods. However the said liability if provided in accounts would have no effect on the profits for the period.

Diluted EPS is calculated after taking into consideration of potential equity share capital. The com- pany proposes to issue 174322 nos. of equity shares to promoters and associates (calculated on basis of book value of equity shares as on 31.03.12) under obligation to financial institutions and banks as per scheme sanctioned by financial institution and bank.

10. During the period the company has made provision for Tax amounting to Rs 100,29 Lacs.

11. Segment Reporting

A. Business Segments:

Based on the guiding principles given in AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Groups business segment include: Writing & Printing Paper, power generation and yarn division.

B. Geographical segments:

Since the Group activities/operations are primarily within the country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment.

C. Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business segments as set out in note no.1 of "Notes to the accounts", the accounting policies in relation to segment reporting are as under:

a) Segment Revenue and expenses:

Segment revenue and expenses are directly attributable to the segments.

b) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

c) Inter segment revenue:

Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

d) Information about business segments:

12. Current Assets including advances are considered good and in view of the management of the company to be realizable within 12 months from the date of Balance Sheet.

13. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.

14. Figures in brackets represent figures of previous year.

15. Previous Year's figures have been regrouped and/or re-arranged wherever considered necessary. Figures have been rounded off to the nearest rupee.


Mar 31, 2011

1. Nature of Operations:-

Satia Industries Limited formerly known as Satia Paper Mills Limited (herein after referred to as 'The Company') is a manufacturer of Writing and Printing Papers.

2. Estimated amount of contract remaining to be executed on capital account and not provided for net of advance Rs. 1177.65 Lacs (previous year Rs. 713.62 Lacs).

3. Contingent liabilities not provided for in respect of:

a) Bank Guarantee Rs. 721.97 Lacs (P.Y. Rs. 1386.54 Lacs)

b) Unexpired Letter of Credit: Rs. 1129.62 (P.Y. Rs.427.67 Lacs.)

However the company has accounted for the materials received against the LCs by way of credit to the account of the party.

c) Excise & custom duty demands in dispute Rs. 4.40 (P.Y. Rs.4.52 Lacs)

d) Sales Tax demand in dispute Rs 3.86 lacs (P.Y.Rs.3.86 Lacs)

e) Customs Duty in respect of Export Obligation 0.12 (P.Y. Rs.6.33)

f) Corporate Guarantee Rs.490 lacs ( P.Y. 490 Lacs) in favour of Uco Bank on behalf of T.C. Spinners Pvt. Ltd., Lalru (Outstanding Balance Rs. 374.25 lacs).

4. The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006). Based on the information available with the company, balance due to Micro & Small Enter- prises as defined under the MSMED ACT, 2006 is Rs. 37.84 lacs (previous year Rs. 20.22 lacs). Further no interest during the year has been paid under the terms of the MSMED Act, 2006.

5. Carbon Emission Reductions (CER) and Voluntary Emission Reductions (VER) has been ac- counted for on accrual basis against the Clean Development Mechanism (CDM) project registered with the United Nations Framework Convention on Climate Change (UNFCCC).

6. Employee Benefits

Effective from 1st January, 2007 the company adopted Accounting Standard 15 (revised 2005) on Employees Benefits issued by the Institute of Chartered Accountants of India.

The following table sets out the status of the gratuity scheme plan as at 31.03.2011.

7. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provision for all known liabilities is adequate and neither is excess nor short of the amount reasonably necessary.

8. The liability of Excise Duty on finished goods remaining uncleared in the factory premises and lying in stock at the end of the year estimated at Rs 28.64 lacs (Previous year Rs.15.25 lacs) are not included in the valuation of inventory of such goods. However the said liability if pro- vided in accounts would have no effect on the profits for the period.

9. The Company has received Share Application money of Rs.300.00 Lacs (Rs.175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the financial year 2004-2005 and 32.55 Lacs in financial year 2005-2006) from promoters and associates to partly finance the project cost approved and stipulated by Financial institutions and bank. During the year ended 31.03.06 the company has allotted 20,00,000 equity shares @ 10 per shares amounting to Rs.200 .00 lacs to the promoters and associates on preferential basis as per approval received from SEBI and remaining share application money of Rs. 100.00 lacs against which shares will be allotted in future as permitted under the statue. These funds were utilized in the year of receipt for purpose of capital expenditure as per scheme approved by the financial institutions and banks.

10. Disclosure requirement as per AS-18, on related party disclosure:-

Nature of Relationship Name of Related Party

Individual Owing directly or M/s T.C. Spinners Pvt. Ltd. indirectly a substantial interest in the voting power of the company

Key Management Personnel Mr.Ajay Satia Mr. R.K. Bhandari Mr. Dhruv Satia Mr. Janak Raj Sharma

Relative of key Management Mrs Bindu Satia (Wife of Sh. Ajay (Relevant Personnel) Satia)

Mr. Anil Satia (Brother of Sh. Ajay Satia)

Mrs Saloni Satia( Wife of Sh Anil Satia)

Smt.Krishna Satia (Mother of Sh. Ajay Satia)

Mrs. Renu Pahwa (Sister of Sh. Ajay Satia)

Ms Yachna Satia (Daughter of Sh. Ajay Satia)

Mr. Chirag Satia (Son of Sh. Ajay Satia)

Mr.Kulbir Pahwa (Sisters Husband of Dr. Ajay Satia)

Mr. Vinod Saluja (Sisters Husband of Dr. Ajay Satia)

Mrs. Archana Saluja (Sister of Dr. Ajay Satia)

Mrs.Pushpa Bhandari (Mother of Sh. R.K. Bhandari)

Mrs. Kiran Bhandari (Wife of Sh. R.K. Bhandari)

Ms.Vasudha Bhandari (Daughter of Sh. R.K. Bhandari)

Mr. Amit Sharma ( Son of Sh. Janak Raj. Sharma)

Transaction with parties as listed above during the period under consideration:

11. During the period the company has made provision for tax amounting to Rs 149.06 lacs under Minimum Alternative Tax. In view of the improving business conditions and requisite addition to the Plant & Machinery, the Management is of the opinion that the company would be able to generate adequate profits to claim credit of tax paid under Mat as per the provisions of income Tax Act. Accordingly the tax credit has been accounted for though part payment of the tax liability under MAT is yet to be made.

12. Segment Reporting

A. Business Segments:

Based on the guiding principles given in AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Groups business segment include: Writing & Print- ing Paper, power generation and yarn division.

B. Geographical segments:

Since the Group activities/operations are primarily within the country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment.

C. Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business segements as set out in note no.2 of schedule no. 18 "Notes to the accounts", the accounting policies in relation to segment reporting are as under:

a) Segment Revenue and expenses:

Segment revenue and expenses are directly attributable to the segments.

b) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provi- sions which are reported as direct offsets in the balance sheet. Segment liabilities in- clude all operating liabilities and consist principally of creditors and accrued liabilities.

c) Inter segment revenue:

Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

d) Information about business segments:

13. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.

14. Figures in brackets represent figures of previous year.

15. Previous Year's figures have been regrouped and/or re-arranged wherever considered necessary. Figures have been rounded off to the nearest rupee.