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Notes to Accounts of Siyaram Silk Mills Ltd.

Mar 31, 2022

40) CONTINGENT LIABILITIES & COMMITMENTS :

a) Contingent Liabilities :

i) Guarantees given by the Company''s Bankers

ii) Disputed claims for excise,sales tax and property tax

iii) Income tax Demand, interest & penalty under dispute **

** Income Tax Department has raised demand aggregating to '' 1050.56 Lakhs pertaining to A.Y 2012-13 to A.Y 2015-16 on account of disallowances made while doing reassessment of those years due to survey conducted by them. The Company has filed the appeal and confident to get the relief. Hence, no provision have been made the same has been considered as contingent liability. Further, demand of '' 161.68 Lakhs for the A.Y 2017-18, '' 79.02 Lakhs for the A.Y 2018-19 and '' 85.50 Lakhs is raised in the regular assessment and the Company is in appeal.

b) Commitments :

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advance)

717.95

984.36

1,376.76

987.72

757.36

931.26

1,291.26

2,960.56

42) RELATED PARTY DISCLOSURES :

As per Accounting Standard 24, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below.

List of related parties where control exists and related parties with whom transactions have taken place and relationships:

(a) Key Management Personnel (KMP) : Shri Ramesh D. Poddar -Chairman & Managing Director, Shri Pawan D. Poddar -Joint Managing Director, Shri Shrikishan Poddar - Executive Director, Shri Gaurav Poddar - President and Executive Director ,Shri Ashok Jalan - Sr. President cum Director, Shri Surendra Shetty - Chief Financial Officer, Shri William Fernandes- Company Secretary

(b) Relatives of Key Management Personnel (KMP) : Smt. Ashadevi R. Poddar, Shri Avnish Poddar, Smt Sangeeta Poddar, Smt. Vibha Poddar,Smt. Smriti Poddar, Smt.Anshruta Poddar, Shri Harshit S.Poddar,

(c) Non Executive Directors and Enterprises over which they are able to exercise significant influance: Smt.Mangala R.Prabhu, Shri .Ashok N.Desai, Shri.Chetan S.Thakkar, Shri.Deepak R.Shah, Shri.Sachindra N.Chaturvedi.

(d) Subsidiary: Cadini S.R.L (100% wholly owned subsidiary, incorporation in Italy)

(e) Other Related Parties (Enterprises - KMP having significant influence / Owned by Major Shareholders) :

Sanchana Trading & Finance Ltd.,S.P. Finance & Trading Ltd, Santigo Textile Mills Ltd., Vishal Furnishing Ltd., Golden Fibres LLP, Beetee Textile Industries Ltd., Oxemberg Fashions Ltd., Balkrishna Paper Mills Ltd.,Vishal Furinishing Singapore, White Lights Food Pvt.Ltd., Tarapur Enviorment Protection Society.,Kanga & Co.,Hindoostan Mills.Ltd.

VIII) Risk Exposure - Asset Volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities.

45) fair value measurement

Financial Instrument by category and hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be

exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values :

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

3. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instrument

by valuation technique.

Level 1 : Quoted (unadjusted) price in active markets for identical assets or liabilities

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

* The above Investments does not include equity investments in subsidiaries, associates and joint ventures which are carried at costs and hence are not required to be disclosed as per Ind AS 107 "Financial Instrument Disclosures.

Fair value measurements using significant unobservable inputs (level 3)

46) FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

In the course of business, the company is exposed to certain financial risk that could have considerable influence on the Company''s business and its performance. These include market risk ( including currency risk, interest risk and other price risk), credit risk and liquidity risk. The Board of Directors review and approves risk management structure and policies for managing risks and monitors suitable mitigating actions taken by the management to minimise potential adverse effects and achieve greater predictability to earnings.

In line with the overall risk management framework and policies, the treasury function provides service to the business, monitors and manages through an analysis of the exposures by degree and magnitude of risks. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The company uses derivative financial instruments to hedge risk exposures in accordance with the Company''s policies as approved by the board of directors. a) Market Risk - Interest rate risk :

Interest rate risk is risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

The Sensitivity analysis below has been determined based on the exposures to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming that the amount of the liability as at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents Management''s assessment of the reasonably possible changes in interest rates.

Market Risk- Foreign currency risk.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities. The Company manages its foreign Currency risk by hedging transaction that are expected to occur within a maximum 12 month periods for hedge of forecasted sales and purchases in foreign currency. The hedging is done through foreign currency forward contracts.

Equity Price Risk

Equity price risk is related to the change in market reference price of the investments in quoted equity securities. The fair value of some of the Company''s investments exposes the company to equity price risks. At the reporting date, the company do not held any equity securities. Investment in preference share are taken at fair value.

d) Credit Risk

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit worthiness and market intelligence. Trade receivables consist of a large number of customers, spread across geographical areas. Outstanding customer receivables are regularly monitored. The average credit period is in the range of 30 -90 days. However in select cases credit is extended which is backed by security deposit/bank guarantee/ letter of credit and other firms. The Company''s Trade receivables consist of a large number of customers, across geographies hence the Company is not exposed to concentration risk..

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates.

Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital limits from various banks. Furthermore, the Company access to funds from debt markets through commercial paper programs and short term working capital loans.

Capital Management :

The capital structure of the Company consists of net debt and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through an optimum mix of debt and equity within the overall capital structure. The Company''s Risk Management Committee reviews the capital structure of the Company considering the cost of capital and the risks associated with each class of capital.

export promotion capital goods (epcg)

Export Promotion Capital Goods (EPCG) scheme allows import of certain capital goods including spares at concessional duty subject to an export obligation for the duty saved on capital goods imported under EPCG scheme. The duty saved on capital goods imported under EPCG scheme being Government Grant, is accounted as stated in the Accounting policy on Government Grant.

The Company holds 17,00,000 9% Cumulative Redeemable Preference Shares (9% CRPS) of ''100/- each aggregating to ''1700/- lakhs of Balkrishna Paper Mills Ltd. (BPML). These 9% CRPS are non-convertible. The cumulative dividend accrued on the said 9% CRPS aggregating to ''557.51 lakhs (P.Y '' 404.51 lakhs) has not been declared by BPML and hence the same has not been accounted by the Company. The said investment has been carried at fair value through Statement of Profit and Loss (FVTPL) based on valuation report obtained by the Company from Independent valuer having appropriate qualification. The fair value measurement is categorised as Level 3.

The Company got voting power by virtue of provisions of second proviso to section 47(2) of the Companies Act, 2013 on said 9% CRPS which is equivalent to 47.57% of total voting power of BPML. Accordingly, BPML has become an Associate of the Company. However, the Company did not have any ownership interest (equity) in BPML, hence consolidation of financial account of Associate Company is not applicable.

The outbreak of Coronavirus (Covid-19) pandemic has caused significant disturbance and slowdown of economic activity. Consequent to opening of the economic activity in the country during the F.Y 2021-22, the demand for the Company''s products has improved compared to the initial phase of Covid -19 period. In the preparation of these financial statement the company has taken into account both the current situation and likely future development.

54) Exceptional item pertains to impairment of Investment made in 100% wholly owned subsidiary company "Cadini SRL".

55) Event occurring after balance sheet date :

The Company has recommended final dividend of '' 3.20 (160%) per equity share of '' 2/-each, for the financial year 2021-22 (Refer note 39)

56) The Code on Social Security, 2020 (''Code'') has been notified in the Official Gazette in September 2020 which could impact the contribution by the Company towards certain employment benefits. The effective date from which the changes and rules would become applicable is yet to be notified. Impact of the changes will be assessed and accounted in the relevant period of notification of relevant provisions.

57) Approval of Financial Statements

The financial statements were approved for issue by the directors on 07th May, 2022.

58) Other Statutory Information

i) The Company does not have any Benami Property, where any proceeding has been initiated or pending against the Company for holding any Benami Property.

ii) The Company does not have any transaction with companies struck off.

iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv) The company has not traded or invested in Crypto currency or Virtual currancy during the financial year.

v) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

vi) The Company has not been declared as Wilful defaulter by any Banks, Financial institution or Other lenders.

vii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

viii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understandin (whether recorded in writing or otherwise) that the Company shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

ix) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts."

x) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained."

xi) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

59) a) The Current years figures are not comparable with previous years figures on account of severe impact of Covid-19

pandemic in F.Y 2020-21.

b) The previous period figures have been regrouped reclassified, wherever considered necessary.


Mar 31, 2018

Notes :

i) Building Includes cost of ownership Flats/Office Premises/Industrial unit in respect of which :

a) Co-operative societies are formed Rs.231.30 lakhs (previous year Rs.231.30 lakhs) (including shares of the face value of Rs.0.06 lakhs)

b) Co-operative societies are yet to be formed Rs.8943.38 lakhs (previous year Rs.7500.73 lakhs)

ii) Furnitures & Equipments includes office equipments

iii) Refer note 20 for disclosure of property, plant and equipment pledged as security by the company.

iv) Addition to fixed assets and depreciation during the Financial year Includes Rs.66.93 lakhs and Rs.2.68 lakhs respectively (Previous year Rs.Nil) on account of reclassification from Investment Property.

v) Depreciation for the current year includes Rs.1.77 lakhs (Previous year Rs.Nil) capitalized as preoperative expense. Capitalised borrowing Cost :

Addition to block of Plant and equipment, Building and CWIP includes borrowing cost of Rs.347.81 lakhs (previous year Rs.Nil) on account of capital expansion for manufacturing plant at Amravati and other Capital Expenditure.

The fair valuation is based on current price in active market for similar properties. The main inputs used are quantum, area, location, demand, restrictive entry to the complex, age of building and trend of fair market in respective area. The valuation is based on valuation performed by accredited independent valuer. The fair valuation is based on replacement cost method. The fair value measurement is categorised in level 3 fair value hierarchy

The company has given certain investment properties on operating lease. These lease arrangements range for a period between 2 and 5 years and include both cancellable and non-cancellable lease. Most of the leases are renewable for further period on mutually agreeable terms.

The Total future minimum lease rentals receivables at the balance sheet date is as under :

ii) Terms/rights attached to equity :

The company has issued only one class of equity shares having a par value of Rs.2 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholdings.

iii) Shareholder’s holding more than 5 % shares in the Company

i) Capital Reserve : Capital Reserve is utilised in accordance with provision of the Act.

ii) Security Premium Reserve : Security Premium Reserve is used to record the premium on issue of shares. These reserve is utilised in accordance with the provision of the Act.

iii) Retained Earnings : Retained earnings are the profit that the Company has earned till date, less any transfer to general reserve, dividend or other distributions paid to shareholders.

Note :

i) Term loan aggregating to Rs.5,946.85 lakhs is secured by way of exclusive charge created/ to be created on immovable properties situated at Maharashtra except immovable assets exclusively charged to the lenders and charge on movable fixed assets procured from those term loans. The remaining tenure of loans is 2 to 5 years.

ii) Term loans in foreign currency (ECB) of Rs.6,883.94 Lakhs and Rupee term loan of Rs.3,000 Lakhs is secured by way of few office premises situated at Mumbai. The remaining tenure of the Loan is 2 to 7 years.

iii) Interest on above said term loan are ranging from 8% to 11%.

Note : Revenue from operations for period upto 30th June, 2017 included excise duty of Rs.87.07 Lakhs (Previous Year Rs.406.23 Lakhs). From 1st July, 2017 onwards the excise duty and most indirect taxes in India have been replaced with Goods and Service Tax (GST). The Company collect GST on behalf of the Government. Hence, GST is not included in Revenue from operations. In view of the aforesaid change in indirect taxes, Revenue from operations year ended 31st March, 2018 is not comparable with 31st March, 2017.

# As approved by the members of the Company in the last Annual General Meeting, the Equity Share of the face value of Rs.10/- each has been sub-divided into 5 equity shares of Rs.2/- each with effect from record date i.e. 26th October, 2017. The Earning per share figures for the year ended 31st March, 2017, have been restated to give effect to sub division of the shares as required by Ind AS 33.

1) RELATED PARTY DISCLOSURES :

As per Accounting Standard 24, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below.

List of related parties where control exists and related parties with whom transactions have taken place and relationships:

(a) Key Management Personnel (KMP) : Shri Ramesh D. Poddar - Chairman & Managing Director, Shri Pawan D. Poddar -Joint Managing Director, Shri Shrikishan Poddar - Executive Director, Shri Gaurav Poddar - President and Executive Director, Smt. Ashadevi R Poddar- Executive Director, Shri Ashok Jalan - Sr. President cum Director.

(b) Relatives of Key Management Personnel (KMP) : Shri Avnish Poddar, Smt. Sangeeta Poddar, Shri Harshit S. Poddar, Smt. Anshruta Poddar w.e.f. February 2017 Smt. Vibha Poddar, Smt. Smriti Poddar, Smt. Megha Poddar upto 15th August 2017, Shri Abhishek Poddar upto December 2016.

(c) Non Executive Directors and Enterprises over which they are able to exercise significant influence:

Shri Harish N. Motiwalla, Prof. (Dr.) Mangesh D. Teli, Shri Shailesh S. Vaidya, Shri Ashok N. Garodia, Shri Dileep Shinde, Shri Pramod S. Jalan, Shri Tarun Kumar Govil, H. N. Motiwalla & Co.

(d) Subsidiary : Cadini S.R.L. (100% wholly owned subsidiary, incorporated in Italy)

(e) Other Related Parties (Enterprises - KMP having significant influence / Owned by Major Shareholders) :

Sanchana Trading & Finance Ltd.,S.P. Finance & Trading Ltd, Santigo Textile Mills Ltd., Image Commercial Pvt. Ltd., Vishal Furnishings Ltd., Golden Fibres LLP, Beetee Textile Industries Ltd., MMI Foods, Balkrishna Paper Mills Ltd.

2) The Company is engaged only in Textile business and there are no separate reportable segments as per Ind AS 108.

3) Operating lease arrangements

The Company has significant operating leases for premises. These lease arrangements range for a period between 1 years to 12 years, which include both cancellable and non-cancellable leases. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

Defined Benefit Plan:- Gratuity (Funded)

The employees’ gratuity fund scheme managed by a Trust is a defined benefit fund. The present value of the obligation is determined based on actuarial valuation using the Projected unit Credit Method, which recognises each year of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

VII) Sensitivity Analysis :

The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared with the previous period.

VIII) Risk Exposure - Asset Volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities.

4) FAIR VALUE MEASUREMENT

Financial Instrument by category and hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values :

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

3. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instrument by valuation technique.

Level 1 : Quoted (unadjusted) price in active markets for identical assets or liabilities

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Financial risk management objectives and policies

In the course of business, the company is exposed to certain financial risk that could have considerable influence on the Company’s business and its performance. These include market risk ( including currency risk, interest risk and other price risk), credit risk and liquidity risk. The Board of Directors review and approves risk management structure and policies for managing risks and monitors suitable mitigating actions taken by the management to minimise potential adverse effects and achieve greater predictability to earnings.

In line with the overall risk management framework and policies, the treasury function provides service to the business, monitors and manages through an analysis of the exposures by degree and magnitude of risks. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The company uses derivative financial instruments to hedge risk exposures in accordance with the Company’s policies as approved by the board of directors.

a) Market Risk - Interest rate risk :

Interest rate risk is risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating interest rates. In order to optimize the Company’s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

The Sensitivity analysis below has been determined based on the exposures to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming that the amount of the liability as at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents Management’s assessment of the reasonably possible changes in interest rates.

b) Market Risk- Foreign currency risk.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities. The Company manages its foreign Currency risk by hedging transaction that are expected to occur within a maximum 12 month periods for hedge of forecasted sales and purchases in foreign currency.

The hedging is done through foreign currency forward contracts.

Derivative instruments and unhedged foreign currency exposure Market Risk - Foreign Currency Risk:-

c) Equity Price Risk

Equity price risk is related to the change in market reference price of the investments in quoted equity securities. The fair value of some of the Company’s investments exposes the company to equity price risks. At the reporting date, the company do not hold any equity securities.

d) Credit Risk

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit worthiness and market intelligence. Trade receivables consist of a large number of customers, spread across geographical areas. Outstanding customer receivables are regularly monitored.

The average credit period is in the range of 30 -90 days. However in select cases credit is extended which is backed by security deposit/bank guarantee/letter of credit and other forms. The Company’s Trade receivables consist of a large number of customers, across geographies hence the Company is not exposed to concentration risk.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates.

Financial Assets are considered to be of good quality and there is no significant increase in credit risk.

e) Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital limits from various banks. Furthermore, the Company access to funds from debt markets through commercial paper programs and short term working capital loans.

5) EXPORT PROMOTION CAPITAL GOODS (EPCG) :

Export Promotion Capital Goods (EPCG) scheme allows import of certain capital goods including spares at concessional duty subject to an export obligation for the duty saved on capital goods imported under EPCG scheme. The duty saved on capital goods imported under EPCG scheme being Government Grant, is accounted as stated in the Accounting policy on Government Grant.

6) As per legal opinion obtained, the contribution made towards the common effluent treatment plant of Rs.601.54 lakhs has been considered as revenue expenditure and is written off in the books of account during the year and shown as exception item. In the earlier year the said contribution was shown as other non-current assets.

7) Event after reporting period :

The Board of Directors of the Company has recommended a Final Dividend @ 100% i.e. Rs.2/- per equity share for the financial year 2017-18 (Refer Note 37).

8) Approval of Financial Statement

The financial statements were approved for issue by the Board of Directors on 29th May, 2018.

9) The previous period figures have been regrouped reclassified, wherever considered necessary.


Mar 31, 2017

1) FAIR VALUE MEASUREMENT

Financial Instrument by category and hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged

in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values :

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

3. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instrument by valuation

technique.

Level 1 : Quoted (unadjusted) price in active markets for identical assets or liabilities

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Financial risk management objectives and policies

In the course of business, the company is exposed to certain financial risk that could have considerable influence on the Company''s business and its performance. These include market risk ( including currency risk, interest risk and other price risk), credit risk and liquidity risk. The Board of Directors review and approves risk management structure and policies for managing risks and monitors suitable mitigating actions taken by the management to minimize potential adverse effects and achieve greater predictability to earnings.

In line with the overall risk management framework and policies, the treasury function provides service to the business, monitors and manages through an analysis of the exposures by degree and magnitude of risks. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The company uses derivative financial instruments to hedge risk exposures in accordance with the Company''s policies as approved by the board of directors.

a) Market Risk - Interest rate risk :

Interest rate risk is risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

The Sensitivity analysis below has been determined based on the exposures to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming that the amount of the liability as at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents Management''s assessment of the reasonably possible changes in interest rates.

b) Market Risk- Foreign currency risk.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities. The Company manages its foreign Currency risk by hedging transaction that are expected to occur within a maximum 12 month periods for hedge of forecasted sales and purchases in foreign currency.

The hedging is done through foreign currency forward contracts.

Derivative instruments and unhinged foreign currency exposure Market Risk - Foreign Currency Risk:-

a) The following table shows foreign currency exposures in USD, EUR and JPY on financial instruments at the end of the reporting period.

c) Equity Price Risk

Equity price risk is related to the change in market reference price of the investments in quoted equity securities. The fair value of some of the Company''s investments exposes the company to equity price risks. At the reporting date, the company do not hold any equity securities.

d) Credit Risk

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit worthiness and market intelligence. Trade receivables consist of a large number of customers, spread across geographical areas. Outstanding customer receivables are regularly monitored.

The average credit period is in the range of 30 -90 days. However in select cases credit is extended which is backed by security deposit/bank guarantee/letter of credit and other frms. The Company''s Trade receivables consist of a large number of customers, across geographies hence the Company is not exposed to concentration risk.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates.

Financial Assets are considered to be of good quality and there is no significant increase in credit risk.

e) Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital limits from various banks. Furthermore, the Company access to funds from debt markets through commercial paper programs and short term working capital loans.

The table below summarizes the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments.

2) EXPORT PROMOTION CAPITAL GOODS (EPCG) :

Export Promotion Capital Goods (EPCG) scheme allows import of certain capital goods including spares at concessional duty subject to an export obligation for the duty saved on capital goods imported under EPCG scheme. The duty saved on capital goods imported under EPCG scheme being Government Grant, is accounted as stated in the Accounting policy on Government Grant.

Note :

a) The previous GAAP figure are arrived after incorporating the figures of erstwhile Balkrishna Synthetics Ltd. on account of amalgamation. The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this note.

Notes to the reconciliation of equity as at 1st April, 2015 and 31st March 2016 and Total comprehensive income for the year ended 31st March, 2016.

i) Erstwhile shown investments:Rs, 0.05 Lakhs made for acquiring loom permits have been written off under Ind AS.

ii) Under Indian GAAP, proposed dividend (including DDT) is recognized as a liability in the period to which it relates, irrespective of when it is declared.

Under Ind AS, proposed dividend is recognized as a liability in the period in which it is declared by the Company ( usually when approved by the shareholders in a general meeting) or paid.

In the case of the Company, the declaration of dividend occurs after period end. Therefore, the liability for the year ended 31st March, 2015 recorded for the proposed dividend for the year along with dividend distribution tax is derecognized and provided in the financial year in which it is declared or paid under Ind AS.

iii) Both under Indian GAAP and Ind AS, the Company recognises costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, the actuarial gains and losses on re-measurements of net defined obligation are recognised in other comprehensive income. Thus the employee benefit cost is increased and re-measurement gains/losses on defined benefit plans has been recognized in the OCI net of tax.

Under previous GAAP, there was no separate record in the financial statements for other Comprehensive Income (OCI). Under Ind AS, specified items of income, expense, gains and losses are presented under OCI.

iv) Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is disclosed separately as an expenses in the statement of profit and loss. Further Under Indian GAAP, Cash discount were recorded under other expense. Under Ind AS they are reflected as adjustments in revenue for sale of products with as corresponding decrease in other expenses.

v) Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on difference between taxable profit and accounting profit for the period. Ind AS requires entities to account for deferred taxes using the balance sheet approach. The effect of these are reflected in total equity and profit or loss.

vi) Under the previous GAAP the premium or discount arising at the inception of forward exchange contract entered in to to hedge an existing asset/liability, was Amortized as expense or income over the life of the contract. Under the Ind AS, forward contract are carried at fair value and resultant gains and losses are recorded in the statement of profit and loss.

vii) Apportionment of Government Grant ecognised under Export Promotion Capital Goods (EPCG) scheme and corresponding charge of depreciation on account of grossing up of Property, plant & Equipment.

3) First time adoption of Indian Accounting Standards

These are Company''s first financial statements prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for period ended 31 March 2017, together with the comparative period data as at and for the year ended 31st March, 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2015, the Company''s date of transition to Ind AS.This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April 2015 and the financial statements as at and for the year ended 31 March 2016.

Exemptions Applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

i) Mandatory exemptions: a) Estimates

An entity estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP

ii) Optional exemptions:

a) Deemed Cost for Property Plant & equipment

lnd AS 101 permits a first time adopter to elect to fair value its property, plant and equipment as recognized in financial statements as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition or apply principles of Ind AS retrospectively. Ind AS 101 also permits the first time adopter to elect to continue with the carrying value for all of its property plant and equipment as recognized in the financial statements as at the date of transition to Ind AS. This exemption can be also used for intangible assets covered by Ind-AS 38.

Accordingly, as per Ind AS 101, the Company has elected to consider fair value of its property, plant and equipment, capital work in progress and intangibles as its deemed cost on the date of transition to Ind AS.

b) Leases

Appendix C to Ind AS17-a Leases requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 allows a first-time adopter to determine whether an arrangement existing at the date of transition to Ind AS contains a lease on the basis of facts and circumstances existing at that date, except where the effect is expected to be not material.

The Company has elected to apply this exemption for such contracts/arrangements.

iii) Fair value measurement of financial assets and liabilities Under IGAAP the financial assets and liabilities were being carried at the transaction value.

First-time adopters may apply Ind AS 109 to day one gain or loss provisions prospectively to transactions occurring on or after the date of transition to Ind AS. Therefore, unless a first-time adopter elects to apply Ind AS 109 retrospectively to day one gain or loss transaction, transactions that occurred prior to the date of transition to Ind AS do not need to be retrospectively restated.

The Company has measured its financial assets and liabilities at Amortized cost or fair value.

4) Standards issued but not yet effective up to the date of Financial Statements

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the group''s financial statements are disclosed below. The group intends to adopt these standards, if applicable, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and has amended the following standard:

i) Amendment to Ind AS 7 Statement of Cash Flows

The amendments to Ind AS 7 requires an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and noncash changes.

On initial application of the amendment, entities are not required to provide comparative information for preceding periods. These amendments are effective for annual periods beginning on or after 1 April 2017. Application of these amendments will not have any recognition and measurement impact. However, it will require additional disclosure in the financial statements.

The Company will adopt these amendments from their applicability date.

5) The ''Scheme'' of Amalgamation of Balkrishna Synthetics Ltd - the 100% subsidiary Company ( "Transferor Company" or "BSL" ) with Siyaram Silk Mills Ltd-the Holding Company, hereinafter referred to as ''the Company'' ("Transferee Company" or "SSML") was sanctioned by the Hon''ble High Court of Judicature at Bombay vide its order dated 22nd November, 2016. The said order was filed with Registrar of Companies (ROC) at Mumbai on 10th January, 2017 (Effective Date). As per the Court order appointed date of amalgamation is 1st April, 2015. Accordingly, the financials statements of the erstwhile BSL are incorporated in the account of the Company with retrospective effect from 1st April, 2015.

Pursuant to the Scheme of Amalgamation :

i) The assets, liabilities and reserves of BSL have been vested with the Company and have been recorded at their fair value, under the Purchase method of Accounting for Amalgamations (AS-14).

ii) 10,00,000 Equity Shares of Rs, 10 each fully paid of BSL held by the Company have been extinguished.

iii) The effect of the Scheme has been considered in these financial statements for the year ended 31st March, 2017.

iv) Pursuant to the Scheme the Goodwill of Rs, 1607.99 lakhs is accounted for as an intangible Asset and Amortized over the period of five years.

v) From the effective date the authorized share capital of the Company stands increased as per the court order dated 22nd November, 2016 to Rs, 1200 lakhs consisting of 1,10,00,000 Equity shares of Rs, 10/- each, 25,000, 11% Redeemable Cumulative Preference Shares of Rs, 100/-each and 7,50,000/- Redeemable Preference Share of Rs, 10/each.

6) The financial information of the Company for the year ended 31st March, 2016 and the transation date opening balance sheet as at 1st April, 2015 included in these Ind AS financial statements, are based on previously issued statutory financial statements for the year ended 31st March, 2016 and the year ended 31st March, 2015 prepared in accordnace with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited and the auditors had given unmodified opinion. The adjustments to those financial statements for the differences in accounting principles have been adopted by the Company on transation to the Ind AS.

7 The previous period figures have been regrouped reclassified, wherever considered necessary.


Mar 31, 2016

1) Prior period items included under respective accounts in the Profit and Loss Rs,28.11 Lacs debit (Rs,26.01 Lacs debit).


2) Related Party disclosures :

As per Accounting Standard 18, the disclosures of transactions with the related parties as defined in the Accounting Standard are
given below.

List of related parties where control exists and related parties with whom transactions have taken place and relationships:

(a) Key Management Personnel (KMP) :

Shri. Ramesh D. Poddar - Chairman & Managing Director, Shri. Pawan D. Poddar -Jt. Managing Director,

Shri. Shrikishan D.Poddar - Executive Director, Shri.Ashok Jalan - Sr.President cum Director,

Shri. Gaurav Poddar - Executive Director, Smt. Ashadevi R. Poddar- Executive Director (w.e.f. 01.08.2014)

(b) Relatives of Key Management Personnel (KMP) :

Smt. Vibha S. Poddar, Smt Sangeeta Poddar, Shri Abhishek Poddar, Shri. Avnish Poddar,

Smt. Megha Poddar, Smt.Smriti Poddar, Shri. Harshit S. Poddar, Smt. Ashadevi R. Poddar (till 31.07.2014)

(c) Subsidiary Company : Balkrishna Synthetics Ltd. (w.e.f. 21.12.2015)

(d) Other Related Parties (Enterprises - KMP having significant influence / Owned by Major Shareholders) Balkrishna Synthetics
Ltd (till 20/12/2015), S.P.Investrade (I) Ltd., Sanchana Trading & Finance Ltd., Santigo Textile Mills Ltd., Oxemberg Fashions
Ltd, Beetee Textile Industries Ltd, Futuristic Concepts Media Ltd., Vishal Furnishing Ltd., Poddar Bio Diesel Pvt. Ltd., Poddar
Brothers Investment Pvt. Ltd., Balkrishna Paper Mills Ltd, Balkrishna Industries Limited, Seeom Fabrics Ltd, Image Commercial
Pvt. Ltd., Nirvikara Paper Mills Ltd., SPG Reality Pvt. Ltd., SPG power Ltd., Golden Fibres LLP., S.P. Finance & Trading Ltd.


3) The Company is engaged only in Textile business and there are no separate reportable segments as per Accounting Standard 17.

4) Leases - Operating Leases :

i) The Company has taken various residential / commercial premises under cancellable operating leases. These lease agreements
are normally renewed on expiry.

ii) During the year the Company has given on non-cancellable operating leases commercial premises, the cost of which Rs, 3375.79
Lacs (Previous year Rs, 3304.32 Lacs) and the accumulated depreciation of Rs, 661.83 Lacs (Previous year Rs, 573.07 lacs) are
included under Fixed Assets Schedule. The depreciation provided on the above Assets in the Statement of Profit and Loss for the
year is Rs, 72.23 Lacs (Previous year Rs, 68.75 lacs).


5) Figures in brackets in these notes are in respect of previous year.

6) Previous year''s figures have been regrouped and rearranged wherever necessary to make them comparable with the current year
figures.


Mar 31, 2014

1) Contingent Liabilities & Commitments

a) Contingent Liabilities :

i) Guarantees given by the Company''s bankers on behalf of the Company 684.12 590.05

ii) Disputed claims for excise and sales tax 84.50 84.50

iii) Custom Duty which may arise if obligation for export is not fulfilled. 627.00 556.03

iv) Income tax Demand, interest & penalty under dispute 505.53 399.05

b) Commitments :

i) Estimated amount of contracts remaining to be executed on capital account and 174.73 1419.78 not provided for (Net of advance)

Defined Benefit Plan

An actuarial valuation was carried out in respect of Gratuity and long term Leave encashment benefit plans based on the following assumptions.

The estimates of rate of escalation in salary considered in actuarial valuation, taking into account inflation,seniority,promotion and other relevent factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors mainly, the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan asset management.

2) Prior period items included under respective accounts in the Profit and Loss Rs. 27.15 Lacs debit (Rs. 29.73 Lacs debit).

3) Related Party disclosures :

As per Accounting standard 18, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below.

List of related parties where control exists and related parties with whom transactions have taken place and relationships:

(a) Key Management Personnel (KMP) :

Shri Ramesh D. Poddar - Chairman & Managing Director, Shri Pawan D. Poddar - Jt. Managing Director,

Shri Shrikishan D. Poddar - Executive Director, Shri Ashok Jalan - Sr.President cum Director, Shri Arvind Poddar - Director,

Shri Gaurav Poddar - Executive Director

(b) Relatives of Key Management Personnel (KMP) :

Smt. Ashadevi R. Poddar, Smt. Vibha S. Poddar, Smt. Sangeeta Poddar, Shri Abhishek Poddar, Shri Avnish Poddar, Smt. Megha Poddar, Smt. Smriti Poddar.

(c) Other Related Parties (Enterprises - KMP having significant influence / Owned by Major Shareholders)

Balkrishna Synthetics Ltd., S.P.Investrade (I) Ltd., Sanchana Trading & Finance Ltd., Santigo Textile Mills Ltd., Oxemberg Fashions Ltd., Beetee Textile Industries Ltd., Futuristic Concepts Media Ltd., Vishal Furnishing Ltd., Fabwear Garments, Poddar Bio Diesel Pvt.Ltd., Poddar Brothers Investment Pvt. Ltd., Balkrishna Paper Mills Ltd., Balkrishna Industries Ltd., Seeom Fabrics Ltd., Govind Rubber Ltd., Image Commercial Pvt. Ltd., GRL International Ltd.

Notes : i) Parties identified by the Management and relied upon by the Auditors.

ii) No amount in respect of the related parties have been written off/back or are provided for during the year

4) Leases - Operating Leases.

i) The Company has taken various residential / commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry.

ii) During the year the Company has given on non-cancellable operating leases commercial premises, the cost of which Rs. 3315.86 Lacs (Previous year Rs. 2761.99 Lacs) and the accumulated depreciation of Rs. 466.13 Lacs (Previous year Rs. 398.77 lacs) are included under Fixed Assets Schedule. The depreciation provided on the above Assets in the statement of Profit and Loss for the year is Rs. 66.14 Lacs (Previous year Rs. 56.64 lacs).

The future minimum lease payments receivable in respect of aforesaid leases as at 31.03.2014 are as follows.

5) Figures in brackets in these notes are in respect of previous year.

6) Previous years figures have been regrouped and rearranged wherever necessary to make them comparable with the current year figures.


Mar 31, 2013

1) Contingent Liabilities & Commitments :

a) Contingent Liabilities :

i) Guarantees given by the Company''s bankers on behalf of the Company 590.05 728.47

ii) Disputed claims for excise and sales tax 84.50 128.86

iii) Custom Duty which may arise if obligation for export is not fulfilled. 556.03 63.00

iv) Income tax Demand, interest & penalty under dispute 399.05 69.93

b) Commitments:

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advance) - -

2) The Excise Department has valued texturised and twisted yam manufactured at Silvassa Unit on the higher side and raised additional demand of Rs.201 Lacs. On appeal, the excise Tribunal, Delhi has passed the order in favour of Company. However, the Department has filed an appeal in the Supreme Court, which is pending. The Company does not expect any liability on this account.

3) Prior period items included under respective accounts in the Statement of Profit and Loss Rs.29.73 Lacs debit (T1.80 Lacs debit).

4) Related Party disclosures :

As per Accounting Standard 18, the disclosures of transactions with the related parties as defined in the Accounting standard are given below.

List of related parties were control exists and related parties with whom transactions have taken place and relationships:

(a) Key Management Personnel (KMP) :

Shri Dharaprasad R. Poddar - Chairman (upto 16th May, 2012), Shri Ramesh D. Poddar - Chairman and Managing Director, Shri Pawan D. Poddar - Jt. Managing Director, Shri Shrikishan D. Poddar - Executive Director, Smt. Vijaylaxmi A Poddar - Executive Director (upto 30th May, 2012), Shri Ashok Jalan - Sr.President cum Director, Shri Arvind Poddar - Director, Shri Gaurav Poddar - Executive Director (w.e.f. 1st August, 2012).

(b) Relatives of Key Management Personnel (KMP):

Smt. Ashadevi R. Poddar, Smt. Vibha S. Poddar, Smt. Sangeeta Poddar, Shri Abhishek Poddar, Shri Avnish Poddar, Smt. Megha Poddar, Smt.Smriti Poddar.

(c) Other Related Parties (Enterprises - KMP having significant influence / Owned by Major Shareholders)

Balkrishna Synthetics Ltd., Govind Rubber Ltd., S.P.Investrade (I) Ltd., Sanchana Trading & Finance Ltd., S.P. Finance & Trading Ltd. Santigo Textile Mills Ltd., Balgopal Holdings and Traders Ltd, Oxemberg Fashions Ltd, Beetee Textile Industries Ltd., Futuristic Concepts Media Ltd.,Vishal Furnishing Ltd., Fabwear Garments, Poddar Bio Diesel Pvt Ltd.,Poddar Brothers Investment Pvt. Ltd., Balkrishna Paper Mill Ltd, GRL International Ltd., Balkrishna Industries Ltd.,Seeom Fabrics Ltd., Image Commercial Pvt. Ltd., SPG Realty Pvt. Ltd.

5) The Company is engaged only in Textile business and there are no separate reportable segments as per Accounting Standard 17.

6) Leases - Operating Leases.

i) The Company has taken various residential / commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry.

ii) During the year the Company has given on non-cancellable operating leases commercial premises, the cost of which Rs.2,761.99 Lacs( Previous year Rs.923.63 Lacs) and the accumulated depreciation of Rs.398.77 Lacs (Previous yearRs.348.80 lacs) are included under Fixed Assets Schedule. The depreciation provided on the above Assets in the statement of Profit and Loss for the year is Rs.56.64 Lacs (Previous year Rs. 28.21 lacs).

7) Figures in brackets in these notes are in respect of Previous Year.

8) Previous years figures have been regrouped and rearranged wherever necessary to make them comparable with the Current Year figures.


Mar 31, 2012

A) Terms/rights attached to equity/preference shares :

The company has issued only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

1) Contingent Liabilities & Commitments

a) Contingent Liabilities :

i) Guarantees given by the Company's bankers on behalf of the Company 728.47 696.13

ii) Disputed claims for excise and sales tax 128.86 128.86

iii) Custom Duty which may arise if obligation for export is not fulfilled. 63.00 75.00

iv) Income tax Demand, interest & penalty under dispute 69.93 415.19

b) Commitments :

i) Estimated amount of contracts remaining to be executed on 5,148.41 553.72 capital account and not provided for (Net of advance)

2) The Excise Department has valued texturised and twisted yam manufactured at Silvassa Unit on the higher side and raised additional demand of Rs. 203 Lacs. On appeal, the excise Tribunal, Delhi has passed the order in favour of Company. However, the Department has filed an appeal in the Supreme Court, which is pending. The Company does not expect any liability on this account.

3) Prior period items included under respective accounts in the Profit and Loss Account Rs. 1.80 Lacs debit (12.47 Lacs debit).

4) Related Party Disclosures :

As per Accounting Standard 18, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below.

(List of related parties were control exists and related parties with whom transactions have taken place and relationships:

(a) Key Management Personnel (KMP):

Mr. Dharaprasad R. Poddar- Chairman,

Mr. Ramesh D. Poddar - Vice Chairman & Managing Director,

Mr. Pawan D. Poddar - Jt. Managing Director,

Mr. Shrikishan D.Poddar - Executive Director,

Smt. Vijayalaxmi A Poddar -Executive Director,

Shri Ashok Jalan - Sr.President cum Director,

Shri Arvind Poddar- Director

(b) Relatives of Key Management Personnel (KMP):

Smt.Ashadevi R. Poddar,

Smt. Vibha S. Poddar,

Shri Gaurav Poddar,

Shri Abhishek Poddar

(c) Other Related Parties (Enterprises - KMP having significant influence / Owned by Major Shareholders)

Balkrishna Synthetics Ltd.,

Govind Rubber Ltd.,

S.P.Investrade (I) Ltd.,

Sanchana Trading & Finance Ltd.,

S.P. Finance & Trading Ltd.,

Santigo Textile Mills (P) Ltd.,

Balgopal Holdings and Traders Ltd,

Oxemberg Fashion Ltd.,

Beetee Textile Industries Ltd.,

Futuristic Concepts Media Ltd.,

Vishal Furnishing Ltd.,

Fabwear Garments, Poddar Bio Diesel Pvt Ltd.,

Poddar Brothers Investment Pvt. Ltd.,

Balkrishna Paper Mill Ltd.,

GRL International Ltd.,

Balkrishna Inds.Ltd.,

Seeom Fabrics Ltd.,

Image Commercial Pvt. Ltd.,

SPG Reality Pvt. Ltd.

5) The activities of the Company relate to only one Segment i.e. Textiles.

6) Leases - Operating Leases.

i) The Company has taken various residential / commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry.

ii) During the year the Company has given on non-cancellable operating leases commercial premises, the cost of which Rs. 923.63 Lacs( Previous year Rs. 861.22 Lacs) and the accumulated depreciation of Rs. 348.80 Lacs (Previous year Rs. 255.46 lacs) are included under Fixed Assets Schedule.

The depreciation provided on the above Assets in the Profit and Loss Account for the year is Rs. 28.21 Lacs (Previous year Rs. 24.55 lacs).

k) Amounts remitted during the year in Foreign Currency on account of Dividend.

The Company has not made remittances in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittance in foreign currencies on account of dividends have been made by or on behalf of Non-resident shareholders. The particulars of dividend paid to Non-resident shareholders are as under.

Dividend in respect of Year 2010-11

(103 Shareholder holding 45,363 Equity Shares) 3.18 -

Dividend in respect of Year 2009-10

(57 Shareholder holding 31,546 Equity Shares) - 1.89

7) Figures in brackets in these notes are in respect of previous year.

8) The previous years/periods figures have been regrouped to be in conformity with the revised schedule VI of the Companies Act, 1956.


Mar 31, 2011

Rs. in Lacs Current Year Previous Year

1) Contingent Liabilities in respect of

a) Guarantees given by the Companys bankers on behalf of the Company 696.13 607.95

b) Disputed claims for excise and sales tax 128.86 51.52

c) Custom Duty which may arise if obligation for export is not fulflled. 75.00 69.00

d) Income tax Demand,interest & penalty under dispute 415.19 361.80

2) The Excise Department has valued texturised and twisted yarn manufactured at Silvassa Unit on the higher side and raised additional demand of Rs.203 Lacs. On appeal, the excise Tribunal, Delhi has passed the order in favour of Company. However, the Department has fled an appeal in the Supreme Court, which is pending. The Company does not expect any liability on this account.

3) Prior period items included under respective accounts in the Profit and Loss Account Rs.12.47 Lacs debit (Rs.3.14 Lacs debit).

4) Related Party disclosures :

As per Accounting standard 18, the disclosures of transactions with the related parties as defned in the Accounting standard are given below.

List of related parties were control exists and related parties with whom transactions have taken place and relationships: (a) Key Management Personnel (KMP) :

Mr. Dharaprasad R. Poddar- Chairmain, Mr. Ramesh D. Poddar - Vice Chairman & Managing Director, Mr. Pawan D. Poddar - Jt. Managing Director, Mr. Shrikishan D.Poddar - Executive Director,Smt.Vijayalaxmi A Poddar -Executive Director, Shri Arvind Poddar- Director, Shri Ashok Jalan Sr.President & Director.

(b) Relatives of Key Management Personnel (KMP) :

Smt.Ashadevi R. Poddar, Smt. Vibha S. Poddar, Shri Gaurav Poddar, Shri Abhishek Poddar

(c) Other Related Parties (Enterprises - KMP having signifcant infuence / Owned by Major Shareholders) Balkrishna Synthetics Ltd., Govind Rubber Ltd., S.P.Investrade (I) Ltd., Sanchana Trading & Finance Ltd., S.P. Finance & Trading Ltd. Santigo Textile Mills (P) Ltd., Balgopal Holdings and Traders Ltd, Oxemberg Fashion Ltd., Beetee Textile Industries Ltd., Futuristic Concepts Media Ltd.,Vishal Furnishing Ltd., Fabwear Garments,Poddar Bio Diesel Pvt Ltd.,Poddar Brothers Investment Pvt. Ltd. Balkrishna Paper Mill Ltd,GRL International Ltd.,Balkrishna Inds.Ltd.,Seeom Fabrics Ltd.,Image Commercial Pvt. Ltd.

5) The activities of the Company relate to only one Segment i.e. Textiles.

6) Leases - Operating Leases.

i) The Company has taken various residential / commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry.

ii) During the year the Company has given on non-cancellable operating leases commercial premises, the cost of which Rs.861.22 Lacs( Previous year Rs.821.30 Lacs) and the accumulated depreciation of Rs.255.46 Lacs (Previous year Rs.222.72 lacs) are included under Fixed Assets Schedule.

The depreciation provided on the above Assets in the Profit and Loss Account for the year is Rs.24.55 Lacs (Previous year Rs. 26.36 lacs).

7) Figures in brackets in these notes are in respect of previous year.

8) Figures of previous year have been regrouped/rearranged, wherever necessary.


Mar 31, 2010

(Rs. In Lacs)

Current Year Previous Year

1) Contingent Liabilities in respect of:

a) Guarantees given by the Companys bankers on behalf of the Company 607.95 363.53

b) Disputed claims for excise and sales tax 51.52 21.54

Current Year Previous Year

c) Custom Duty which may arise if obligation for export is not fulfilled. 69.00 33.52

d) Income tax Demand,interest & penalty under dispute 361.80 105.57

e) Claims against the Company not acknowledge as debt State Government subsidy. - 172.51

The estimates of rate of escalation in salary considered in actuarial valuation,taking into account inflation, seniority, promotion and other relevent factors including supply and demand in the employment market. The above information is certified by the actuary. The expected rate of return on plan assets is determined considering several applicable factors mainly, the composition of plan assets held,assessed risks,historical results of return on plan assets and the Companys policy for plan asset management.

2) The demand raised by the State government due to closure of Murbad unit has been settled and net amount of Rs.61.10 Lacs has been paid during the year.

3) Demand in respect of TDS payable on account of the survey in the previous year has been settled and the net demand of Rs.0.71 Lacs has been paid during the year.

4) Related Party disclosures :

As per Accounting standard 18, the disclosures of transactions with the related parties as defined in the Accounting standard are given below. List of related parties were control exists and related parties with whom transactions have taken place and relationships:

(a) Key Management Personnel (KMP):

Shri Dharaprasad R. Poddar - Chairmain, Shri Ramesh D. Poddar - Vice Chairman & Managing Director, Shri Pawan D. Poddar - Jt. Managing Director, Shri Shrikishan D.Poddar - Executive Director, Smt.Vijayalaxmi A. Poddar-Executive Director, Shri Ashok Man Sr.President & Director, Shri Arvind Poddar - Director.

(b) Relatives of Key Management Personnel (KMP):

Smt. Ashadevi R. Poddar, Smt. Vibha S. Poddar, Shri Harshit S. Poddar, Shri Gaurav Poddar, Smt. Megha A. Poddar, Shri Shrikishan D. Poddar, Shri Abhishek S. Poddar,

(c) Other Related Parties (Enterprises - KMP having significant influence / Owned by Major Shareholders Balkrishna Synthetics Ltd. ,Govind Rubber Ltd., S. P. Investrade (India) Ltd., Sanchana Trading & Finance Ltd., S.P.Finance& Trading Ltd., Santigo Textile Mills Pvt. Ltd., Balgopal Holdings and Traders Ltd, Oxemberg Fashions Ltd., Beetee Textile Industries Ltd., Futuristic Concepts Media Ltd., Vishal Furnishings Ltd., Fabwear Garments, Poddar Bio Diesel Pvt. Ltd., Poddar Brothers Investment Pvt. Ltd. Balkrishna Paper Mills Ltd, GRL International Ltd, Balkrishna Inds Ltd.,

5) The activities of the Company relate to only one Segment i.e. Textiles.

6) Leases - Operating Leases.

i) The Company has taken various residential / commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry.

ii) During the year the Company has given on non-cancellable operating leases commercial premises, the cost of which Rs. 821.30 Lacs( Previous year Rs. 828.22 Lacs) and the accumulated depreciation of Rs. 222.72 Lacs (Previous year Rs. 246.76 lacs) are included under Fixed Assets Schedule.

The depreciation provided on the above Assets in the Profit and Loss Account for the year is Rs. 26.36 Lacs (Previous year Rs. 26.52 lacs).

m) Amounts remitted during the year in Foreign Currency on account of Dividend.

The Company has not made remittances in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittance in foreign currencies on account of dividends have been made by or on behalf of Non-resident shareholders. The particulars of dividend paid to Non-resident shareholders are as under.

7) Figures in brackets in these notes are in respect of previous year.

8) Figures of previous year have been regrouped/rearranged, wherever necessary.

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