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Notes to Accounts of Uniworth Ltd.

Mar 31, 2015

1. Rights, Preferances and Restrictions attached to Shares Issued :

Each Equity Shareholder holding shares of Rs. 10/- each is eligible for one vote per share held and is entitled to dividend when proposed by the Board of Directors subject to the approval of the sharesholders in the Annual General Meeting. Each Equity Shares holders is entitled to participate in repayament of Capital on liqudation after all secured creditors have been paid.

13% Non Convertible Cumulative Redeemable Preference Shares have already matured for redemption completely by 12th December, 2002 as per terms of redemtion. However, no part of this Share Capital amount could be redeemed by the aforesaid date. The Company has received during the year 2010-11 a letter from IDBI, The holders demanding forthwith the payament of the entire amount due on redemption togathet with the dividends due thereon.

However, the matter is pending restructuring of loans due to banks and financial institutions.

* The company, being a sick industrial undertaking could not redeem debentures & interest thereof as per the terms of issue, which will be dealt properly in the restructuring scheme. Accordingly no transfer has been made to the Account of Investor & Protection fund.

* Following the declaration of the Company as a Sick Industrial undertaking by the Board for Industrial and Financial Reconstruction (BIFR) vides its Order dated 30.01.2006 in terms of Section 3 (1) (A) of the Sick Industrial Companies (Special Provisions) Act, 1985 and also athe appointment of Industrial Development Bank of India as the Operating Agency for preparation of a viability study report to revive the Company, Appeals against the said order were preferred by some of the secured lenders as well as the Company before the AppellateAuthority for Industrial & Financial Reconstruction (AAIFR). The said appeals were taken up and adjudicated and vide its order dated 05.12.2007, AAIFR has remanded the case back to BIFR with a direction to reconsider the earlier references of the company on the basis of its earlier Balance Sheets also. During the year 2010-11 in one of the appeals pending before AAIFR and in pursuance of ARCIL's application . AAIFR has opined that in veiw of the actions taken by ARCIL under Section 13 (4) of SARFAESI Act, the reference filed by the Company stood abated in one of the appeals pending before AAIFR under the proviso to Section 15(1) of SICA.

Following the reference application filed by the company having stood abated under the proviso to Section 15(1) of SICA. ARCIL has asked Indoworth to handover to them the possession of assets of the company covered by the security.

However, matter is subjudice in a suit before the Kolkata High Court and necesssary adjustments would be made in the financial statements if required consequent to the final outcome of the proceedings. Pending the above, the financial statements have been drawn up on Going Concern basis as the Management is of the view that the going concern assumption is not vitiated for the reason as stated above.

* Under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), ARCIL has taken over possession of the secured assets of the Company's plants during the Financial Year 2008-09 and has appointed Indoworth India Ltd as the Custodian of such assets.

The Company's business continued since the aforesaid take over as usual. However, the matter is subjudice in a suit before the Calcutta High Court and necessary adjustments in the financial statements, if required, would be made upon final adjudication of the proceedings. However, these Accounts have been prepared on a Going Concern basis as the Management is of the view that the Going Concern assumption is not vitiated for the reason as stated above.

* The outstanding balance of Term Loans from Financial Institutions and some of the banks are subject to receipt of confirmation / statements, which couldnot be avialable due to restructuring in progress.

* Mode of valuation - Refer Accounting Policy Note-1(f)

2. Finished Goods

i) Value of ' 184.38 Lacs lying with thrid party.

ii) Value of ' 115.51 Lacs under seizer of the Excise Department for a storage of Stock with a third party without obtaining permission of the Excise Department.

* Trade Recievable includes Rs. 2041.21 Lacs due from a Company which has become sick and registered with BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985. Quantum of amount considered doubtful is not ascertainable at this Stage. Accordingly no provision has been made in the account in this regards.

* In respect of Sundry Debtors (including Domestic sales Debtors) adjustments are pending against supplies and other liabilities, etc due to the buyers Managent is confident of recovering the balance after such adjustments pending approval from concerned regulatory authority.

* Certain Debtors are subject to Confirmation.

* Trade Recievable includes :

i) Rs. 3697.89 Lacs representing overdue Export Bills outstanding for long against which the acompany has obtained a decree for realizing the outstanding debts over a period of time ranging up to twenty years. The company has also filed an appeal for reduction/variation of the period of time.

ii) Rs. 27097.12 lacs representing overdue Export Bills outstanding for long that will be set off against import liabilities, claims, and commission etc. of the respective parties.

iii) Rs. 992.30 lacs representing overdue Export Bills outstanding for long against which the management has taken appropriate steps for its recovery.

iv) Rs. 131.62 Lacs represanting other trade recievables outstanding for long against which the management has taken appropriate steps for recovery. According no provision gas been considered necessary at this stage.

* Balances with the Bank in Current Account include Debit balances in Current Account of Rs. 79.14 Lacs which are subject to receipt of confirmation because of restructuring being in progress.

* Fixed Deposit lodged with Bank as margin for Guarantee Rs. 4.07 Lacs and with Sales Tax Authorities Rs. 0.39

* During the year one of the banker of the company, Axis Bank Ltd, under instructions from ARCIL has made debit freeze (freezing all withdrawals ) of all current account of the company maintained with them, the balance of which as per books amounted to Rs. 65.23 lacs as on 31st March, 2015.As per Confirmation Certificates obtained from the Bank, total balance of all such Current Accounts works out to Rs. 4.26 lacs as on 31st March, 2015. in absence of any details of the withdrawals/other transactions made from such Accounts, necessary entries could not be made in the books of the company.

* During the year the company opened certain new Current Accounts with Banks (other than the bankers of the Company).

* Claim receivable of Rs. 689.36 lacs due from various banks on account of excess interest charged by them in earlier years are subject to confirmation. No provision has been made there against.

* Short Term Loans and Advances includes Rs. 1327.09 Lacs which have become sick and referred to BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985. Quantum of amount considered doubtful is not ascertainable at this Stage. Accordingly no provision has been made in the account in this regards.

* Advance includes Rs. 3144.73 Lacs due from a party which in opinion of the Management is considered t be fully recoverable.

* Advance includes Rs. 0.10 Lacs due from a director (Max Amount at any time during the year Rs. 1.08 Lacs)

* Certain Advances are subject to Confirmation.

* The adjustment of Rs. 5948.37 lacs pertaining to transfer of Fixed Assets of the company in earlier years under scheme of demerger is still pending and will be dealt in restructuring Scheme.

2. Contingent Liabilities and Commitments :

(To the extent not provided for)

i) Contingent Liabilities

a) Claim against the company not acknowledged as debt.

b) Guarantees 767,629 767,742

c) Other money for which the company is contingently liable :

* Letter of Credit 9,882 9,882

* Arrear Dividend on 13% Non Convertible Cumulative

Redeemable Preference Shares. (Refer Note 2 (b)) 38,224 38,224

* Entry Tax 8,858 8,858

* Central / Commercial Sale Tax Demands 20,463 20,463

* Excise Demands 104,329 127,129

* Interest on Lease rent 473

* TDS Demand Default 923

* Custom Demands 46,922 25,200

* Professional Tax/Labour Cases/Water Cess etc. 985 981

* Electricity Duty 11,545 242,604 115,450 346,187

Total 1,010,233 1,113,929

* Claims / Disputed liabilities not acknowledged as debt,the amount of which is not ascertained.

* Gaurantees include Corporate Guarantees Rs. 7000 lacs ( Previous Year Rs. 7000 lacs) given by the Company to financial Institutions and Banks for granting Term Loans and Working Capital Loans to certain Body Corporates.

* Interest provision on borrowing from some of the institutions and banks has been made in the accounts at prevailing/estimated rates on simple interest basis applicable on such loans. The impact of compound interest /Penal charges wherever applicable could not be ascertained. Besides there is dispute between the Company and Bankers/Creditors, over the issue of charging interest and payment to the Bankers/Creditors of interest and principal amount.The Bankers/Creditors have approached appropiate court of law for recovery of its due which is being defended by the Company.

* Pending restructuring interest provision on certain loans/borrowings has not been made and impact of the same is not presently ascertainable

3. Related Party disclosure as required by AS - 18, "Related Party Disclosure" are given below : a) Relationship :

Associates

Uniworth Textile Ltd.

Uniworth Power Ltd.

Uniworth Apparel Ltd.

Aviante International Ltd.

Key Management Personnel Mr S N Shenwai

a) Balance of ' 4250.51 lacs with Uniworth Textiles Limited (Related Party) as at 31st March, 2015 is under reconciliation.

4. Based on the guiding principles given in Accounting Standards on "Segment Reporting" (AS-17) the Company's primary business segment is Wool and Silk business.

5. Employee benefits (Revised Accounting Standard 15)

a) Defined Contribution Plan :

The company makes contribution towards Provident Fund and ESIC to a defined contribution retirement benefit plan for qualifying employees.

The Provident Fund plan is operated partly by RegionalProvident Fund Commissioners and partly by an independent Trust, ESIC by Government agencies. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

During the year the company has recognised Rs. 64.05 lacs for Provident fund contribution, Rs 18.98 lacs for ESIC. The Contribution payable to these plans by the Company is at the rates specified in the rules of the scheme.

b) Defined Benefit Plans :

i) The plan provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days basic salary payable for each completed year of service. Vesting occurs upon completion of five years of continuous service.

ii) The employees of the company are eligible for encashment of leave upon retirement up to 30 days for each year (Maximum 120 days). Leave is accounted for on accrual basis.

6. With the introduction of the companies Act, 2013 with effect from 1st Arpil, 2014, adoption of Schedule - II of the said Act regarding calculation of depreciation based on estimated Useful Life of each tangible asset has become mandatory from that date. However, as the company's Fixed Assets Register has not yet been fully updated with regard to estimated useful life of each asset, calculation of depreciation as per schedule -II could not be made by Company during the year. This tantamount to non- compliance of mandatory requirements of the Companies Act, 2013 read with Accounting Standard (AS) 6: Depreciation Accounting. Effect of such non-compliance on the Financial Statements of the Company is not presently ascertainable.

7. The Company has not recognized Deferred Tax Assets (Net) as per Accounting Standard - 22, regarding "Accounting for Taxation" estimation of future in view of consistent losses and of uncertainty regarding Profit with reasonable certainty.

8. Certain Banks and Financial Institutions have taken legal recourse for recovery of their dues from the company. Loans and Advances includes Rs. 150 lacs deposited with the Banks in the name of advocates on record for both parties as per order of Hon'ble Kolkata High Court in case of litigation with the Bank.

9. Due to non-completion of certain technical formalities, certain borrowing facilities,which were to be transferred to a body corporate pursuant to the original scheme of restructuring, could not be made.

10. The company has applied from time to time to The Reserve Bank of India for extension/ set off of certain over- due bills, approval of which is still awaited.

11. In preparation of these Accounts, cognizance has not been taken by the Company of a Debit Note sent by a body corporate in an earlier year , indicating the unilateral transfer back by the said body corporate of all the assets which were transferred to them on 01.04.2000, together with all existing and underlying securities/ charges as part of the restructuring scheme formulated by ICICI, in view of the various judicial proceedings pending at this juncture. However, the Company has been legally advised to deal with the above transfer back only after final disposal of the process of adjudication by the Court.

12. Export obligation for the assets acquired/taken on lease without payment of applicable duties lies with the Company under the provisions of the Exim Policy (Amount unascertained).

37. Discounts, commission & other selling expenses include commission Rs 235.91 lacs. (Pr. year Rs 133.81 Lacs).

13. Claims had been filed against the Compamy by a body corporate amounting to Rs. 21625 Lacs for non fulfillment of certain clauses of an agreement relating to transfer of Nagpur Unit to them in respect this we are unable to express our opinion on liablities that may arise eventualy on finalistion of suit.

14. The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary and practicable . Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2014

(Rs in 000''s) 2013-14 2012-13 Rs. Rs. Rs. Rs.

1. Contingent Liabilities and Commitments. (To the extent not provided for)

i) Contingent Liabilities

a) Claim against the company not acknowledged as debt.

b) Guarantees 7,67,742 7,67,222

c) Other money for which the company is contingently liable:

- Letter of Credit 9,882 9,882

- Arrear Dividend on 13% Non Convertible Cumulative

Redeemable Preference Shares. (Refer Note 2 (b) ) 38,224 38,224

- Entry Tax 8,858 5,035

- Central / Commercial Sale Tax Demands 20,463 23,357

- Excise Demands 1,27,129 20,965

- Custom Demands 25,200 77,393

- Professional Tax/Labour Cases/Water Cess etc. 981 981

- Electricity Duty 1,15,450 3,46,187 - 1,75,837

Total 11,13,929 9,43,059

Note :

1) Claims / Disputed liabilities not acknowledged as debtthe amount of which is not ascertained.

2) Gaurantees include Corporate Guarantees Rs.7000 lacs ( Previous Year Rs.7000 lacs) given by the Company to financial Institutions and Banks for granting Term Loans and Working Capital Loans to certain Body Corporates.

Note:

1. Interest provision on borrowing from some of the institutions and banks has been made in the accounts at prevailing/ estimated rates on simple interest basis applicable on such loans. The impact of compound interest/Penal charges wherever applicable could not be ascertained. Besides there is dispute between the Company and Bankers/Creditors, over the issue of charging interest and payment to the Bankers/Creditors of interest and principal amount. The Bankers/Creditors have approached appropiate court of law for recovery of its due which is being defended by the Company.

2. Pending restructuring interest provision on certain loans/borrowings has not been made and impact of the same is not presently ascertainable

3. Employee benefits (Revised Accounting Standard 15)

a) Defined Contribution Plan

The company makes contribution towards Provident Fund and ESIC to a defined contribution retirement benefit plan for qualifying employees.

The Provident Fund plan is operated partly by RegionalProvident Fund Commissioners and partly by an independent Trust, ESIC by Government agencies. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

During the year the company has recognised Rs 62.18 lacs for Provident fund contribution, Rs 21.24 lacs for ESIC. The Contribution payable to these plans by the Company is at the rates specified in the rules of the scheme.

Note: Above information have been compiled on the basis of certificate issued by the Actuaries.

4. The Company has not recognized Deferred Tax Assets (Net) as per Accounting Standard - 22, regarding "Accounting for Taxation" estimation of future in view of consistent losses and of uncertainty regarding Profit with reasonable certainty.

5. Certain Banks and Financial Institutions have taken legal recourse for recovery of their dues from the company. Loans and Advances includes Rs. 150 lacs deposited with the Banks in the name of advocates on record for both parties as per order of Hon''ble Kolkata High Court in case of litigation with the Bank.

6. Due to non-completion of certain technical formalities, certain borrowing facilities, which were to be transferred to a body corporate pursuant to the original scheme of restructuring, could not be made.

7. The company has applied from time to time to The Reserve Bank of India for extension/ set off of certain overdue bills, approval of which is still awaited.

8. In preparation of these Accounts, cognizance has not been taken by the Company of a Debit Note sent by a body corporate in an earlier year, indicating the unilateral transfer back by the said body corporate of all the assets which were transferred to them on 01.04.2000, together with all existing and underlying securities/charges as part of the restructuring scheme formulated by ICICI, in view of the various judicial proceedings pending at this juncture. However, the Company has been legally advised to deal with the above transfer back only after final disposal of the process of adjudication by the Court.

9. Export obligation for the assets acquired/taken on lease without payment of applicable duties lies with the Company under the provisions of the Exim Policy (Amount unascertained).

10. Discounts, commission & other selling expenses include commission Rs 133.81 lacs. (Pr. year Rs 161.97 Lacs)

11. Claims had been filed against the Compamy by a body corporate amounting to Rs. 21625 Lacs for non fulfillment of certain clauses of an agreement relating to transfer of Nagpur Unit to them in respect this we are unable to express our opinion on liablities that may arise eventualy on finalistion of suit

12. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary and practi- cable. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2013

1. Contingent Liabilities and Commitments.

(To the extent not provided for)

i) Contingent Liabilities

a) Claim against the company not acknowledged as debt.

b) Guarantees 7,67,222 7,67,222

c) Other money for which the company is contingently liable: < Letter of Credit 9,882

< Arrear Dividend on 13% Non Convertible Cumulative

Redeemable Preference Shares.

(Refer Note 2 (b) ) 38,224 38,224

< Entry Tax 5,035

< Central / Commercial Sale Tax Demands 23,357

< Excise Demands 20,965

< Custom Demands 77,393

< Professional Tax/Labour Cases/Water Cess etc. 981

< Non fulfilment of Export Obligation under ISIL Scheme 1,75,837 38,225

Total - 9,43,059 8,05,447



Note :

1) Claims/Disputed liabilities not acknowledged as debt,the amount of which is not ascertained.

2) Gaurantees include Corporate Guarantees Rs.7000 lacs (Previous Year Rs.7000 lacs) given by the Company to financial Institutions and Banks for granting Term Loans and Working Capital Loans to certain Body Corporates.

2. Based on the guiding principles given in Accounting Standards on "fSegment Reporting"f (AS-17) the Company''s primary business segment is Wool and Silk business. Segment wise Revenue, Results and Capital Employed under Clause 41 of the Listing Agreement for the year ended 31st March 2013.

3. Employee benefits (Revised Accounting Standard 15)

a) Defined Contribution Plan

The company makes contribution towards Provident Fund and ESIC to a defined contribution retirement benefit plan for qualifying employees.

The Provident Fund plan is operated partly by RegionalProvident Fund Commissioners and partly by an independent Trust, ESIC by Government agencies. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

During the year the company has recognised Rs 62.18 lacs for Provident fund contribution, Rs. 21.24 lacs for ESIC. The Contribution payable to these plans by the Company is at the rates specified in the rules of the scheme.

b) Defined benefit Plans :

i) The plan provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days basic salary payable for each completed year of service. Vesting occurs upon completion of five years of continuous service.

ii) The employees of the company are eligible for encashment of leave upon retirement up to 30 days for each year (Maximum 120 days). Leave is accounted for on accrual basis.

4. The Company has not recognized Deferred Tax Assets (Net) as per Accounting Standard – 22, regarding "fAccounting for Taxation"f estimation of future in view of consistent losses and of uncertainty regarding Profit with reasonable certainty.

5. Certain Banks and Financial Institutions have taken legal recourse for recovery of their dues from the company. Loans and Advances includes Rs. 150 lacs deposited with the Banks in the name of advocates on record for both parties as per order of Hon''ble Kolkata High Court in case of litigation with the Bank.

6. Due to non-completion of certain technical formalities, certain borrowing facilities,which were to be transferred to a body corporate pursuant to the original scheme of restructuring, could not be made.

7. The company has applied from time to time to The Reserve Bank of India for extension/ set off of certain over- due bills, approval of which is still awaited.

8. In preparation of these Accounts, cognizance has not been taken by the Company of a Debit Note sent by a body corporate in an earlier year , indicating the unilateral transfer back by the said body corporate of all the assets which were transferred to them on 01.04.2000, together with all existing and underlying securities/charges as part of the restructuring scheme formulated by ICICI, in view of the various judicial proceedings pending at this juncture. However, the Company has been legally advised to deal with the above transfer back only after final disposal of the process of adjudication by the Court.

9. Export obligation for the assets acquired/taken on lease without payment of applicable duties lies with the Company under the provisions of the Exim Policy (Amount unascertained).

10. Discounts, commission & other selling expenses include commission Rs 161.97 lacs. (Pr. year Rs 109.78 Lacs)

11. Claims had been filed against the Compamy by a body corporate amounting to Rs. 21625 Lacs for non fulfillment of certain clauses of an agreement relating to transfer of Nagpur Unit to them in respect this we are unable to express our opinion on liablities that may arise eventualy on finalistion of suit.

12. The Previous figure have been regrouped/rearranged whereever necessary.


Mar 31, 2012

A) Rights, Preferances and Restrictions attached to Shares Issued :

Each Equity Shareholder holding shares of Rs. 10/- each is eligible for one vote per share held and is entitled to dividend when proposed by the Board of Directors subject to the approval of the sharesholders in the Annual General Meeting. Each Equity Shares holders is entitled to participate in repayament of Capital on liquidation after all secured creditors have been paid.

Note :

13%- Non Convertible Cumulative Redeemable Preference Shares have already matured for redemption completely by 12 th December' 2002 as per terms of redemtion. However, no part of this Share Capital amount could be redeemed by the aforesaid date. The Company has received during the year 2010-11 a letter from IDBI, The holders demanding forthwith the payament of the entire amount due on redemption together with the dividends due thereon.

However, the matter is pending restructuring of loans due to banks and financial institutions.

Notes :

1) The company, being a sick industrial undertaking could not redeem debentures & interest thereof as per the terms of issue, which will be dealt properly in the restructuring scheme. Accordingly no transfer has been made to the Account of Investor & Protection fund.

2) Following the declaration of the Company as a Sick Industrial undertaking by the Board for Industrial and Financial Reconstruction (BIFR) vides its Order dated 30.01.2006 in terms of Section 3 (1) (A) of the Sick Industrial Companies (Special Provisions) Act, 1985 and also athe appointment of Industrial Development Bank of India as scheme for the Operating Agency for preparation of a viability study report and revised the Company, Appeals against the said order were preferred by some of the secured lenders as well as the Company before the AppellateAuthority for Industrial & Financial Reconstruction (AAIFR). The said appeals were taken up and adjudicated and vide its order dated 05.12.2007, AAIFR has remanded back to BIFR with a direction to reconsider the earlier references of the company on the basis of its earlier Balance Sheets also. During the year 2010-11 in one of the appeals pending before AAIFR and in pursuance of ARCIL application to AAIFR has opined that in veiw of the actions taken by ARCIL under Section 13 (4) of SARFAESI Act, the reference filed by the Company stood abated under in one of the appeals pendingbefore AAIFR and inpursuance of ARCIL application to AAIFR has opined that in veiw of the actions taken by ARCIL under Section 13 (4) of SARFAESI Act, the reference filed by the Company stood abated under the proviso to Section 15(1) of SICA.

3) Under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act ), ARCIL has taken over possession of the secured assets of the Company's plants during the Financial Year 2008-09 and has appointed Indoworth India Ltd as the Custodian of such assets. The Company's business continued since the aforesaid take over as usual. However, the matter is subjudice in a suit before the Calcutta High Court and necessary adjustments in the financial statements, if required, would be made upon final adjudication of the proceedings. However, these Accounts have been prepared on a Going Concern basis as the Management is of the view that the Going Concern assumption is not vitiated for the reason as stated above.

4) The outstanding balance of Term Loans from Financial Institutions and some of the banks are subject to receipt of confirmation /statements, which couldnot be avialable due to restructuring in progress.

Note :

1) Amount dues to suppliers, which are subject to cnfirmation of the parties.

2) There are certain cases pending in appropriate court regarding goods supplied by various creditors which are being disputed by the company. Advance given to them will be adjusted once the cases are disposed off and settled.

Note :

1) Sundry Debtors includes Rs.1229.69 Lacs due from a Company which has become sick and registered with BIFR under the Sick Industrial Companies ( Special Provisions ) Act, 1985. Quantum of amount considered doubtful is not ascertainable at this Stage. Accordingly no provision has been made in the account in this regards.

2) In respect of Sundry Debtors (including Domestic sales Debtors ) adjustments are pending against supplies and other liabilities, etc due to the buyers Managent is confident of recovering the balance after such adjustments pending approval from concerned regulatory authority.

3) Certain Debtors are subject to Confirmation.

4) Sundry Debtors includes :

i) Rs. 3697.89 Lacs representing overdue Export Bills outstanding for long against which the acompany has obtained a decree for realizing the outstanding debts over a period of time ranging up to twenty years. The company has also filed an appeal for reduction/variation of the period of time.

ii) Rs. 27097.12 lacs representing overdue Export Bills outstanding for long that will be set off against import liabilities, claims, and commission etc. of the respective parties.

Note :

1) Claim receivable of Rs. 689.36 lacs due from various banks on account of excess interest charged by them in earlier years are subject to confirmation. No provision has been made there against.

2) Short Term Loans and Advances includes Rs.1479.02 Lacs which have become sick and referred to BIFR under the Sick Industrial Companies ( Special Provisions ) Act, 1985. Quantum of amount considered doubtful is not ascertainable at this Stage. Accordingly no provision has been made in the account in this regards.

3) Certain Advances are subject to Confirmation.

Note :

The adjustment of Rs. 5948.37 lacs pertaining to transfer of Fixed Assets of the company in earlier years under scheme of demerger is still pending and will be dealt in restructuring Scheme.

(Rs in 000's)

2011-12 2010-11 Rs. Rs. Rs. Rs.

1. Contingent Liabilities and Commitments.

(To the extent not provided for)

i) Contingent Liabilities

a) Claim against the company not acknowledged as debt.

b) Guarantees 767,222 767,222

c) Other money for which the company is contingently liable :

< Letter of Credit 9,882

< Arrear Dividend on 13% Non Convertible Cumulative

Redeemable Preference Shares.(Refer Note 2 (b) 38,224 38,224

< Entry Tax

< Central /Commercial Sale Tax Demands

< Excise Demands

< Custom Demands 1 38,225 1 48,106

Total 805,447 815,328

Note :

1) Claims/Disputed liabilities not acknowledged as debt,the amount of which is not ascertained.

2) Gaurantees include Corporate Guarantees Rs.7000 lacs (Previous Year Rs.7000 lacs) given by the Company to financial Institutions and Banks for granting Term Loans and Working Capital Loans to certain Body Corporates.

2. Based on the guiding principles given in Accounting Standards on "Segment Reporting" (AS-17) the Company's primary business segment is Wool and Silk business.

Segment wise Revenue, Results and Capital Employed under Clause 41 of the Listing Agreement for the year ended 31st March 2012

3. Employee benefits (Revised Accounting Standard 15)

a) Defined Contribution Plan

The company makes contribution towards Provident Fund and ESIC to a defined contribution retirement benefit plan for qualifying employees.

The Provident Fund plan is operated partly by RegionalProvident Fund Commissioners and partly by an independent Trust, ESIC by Government agencies. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

During the year the company has recognised Rs 73.46 lacs for Provident fund contribution, Rs 23.05 lacs for ESIC. The Contribution payable to these plans by the Company is at the rates specified in the rules of the scheme.

b) Defined benefit Plans :

i) The plan provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days basic salary payable for each completed year of service. Vesting occurs upon completion of five years of continuous service.

ii) The employees of the company are eligible for encashment of leave upon retirement up to 30 days for each year (Maximum 120 days). Leave is accounted for on accrual basis.

4. The Company has not recognized Deferred Tax Assets (Net) as per Accounting Standard - 22, regarding "Accounting for Taxation" estimation of future in view of consistent losses and of uncertainty regarding Profit with reasonable certainty.

5. Certain Banks and Financial Institutions have taken legal recourse for recovery of their dues from the company. Loans and Advances includes Rs. 150 lacs deposited with the Banks in the name of advocates on record for both parties as per order of Hon'ble Kolkata High Court in case of litigation with the Bank.

6. Due to non-completion of certain technical formalities, certain borrowing facilities,which were to be transferred to a body corporate pursuant to the original scheme of restructuring, could not be made.

7. The company has applied from time to time to The Reserve Bank of India for extension/ set off of certain over-due bills, approval of which is still awaited.

8. In preparation of these Accounts, cognizance has not been taken by the Company of a Debit Note sent by a body corporate in an earlier year , indicating the unilateral transfer back by the said body corporate of all the assets which were transferred to them on 01.04.2000, together with all existing and underlying securities/charges as part of the restructuring scheme formulated by ICICI, in view of the various judicial proceedings pending at this juncture. However, the Company has been legally advised to deal with the above transfer back only after final disposal of the process of adjudication by the Court.

9. Export obligation for the assets acquired/taken on lease without payment of applicable duties lies with the Company under the provisions of the Exim Policy (Amount unascertained).

10. Discounts, commission & other selling expenses include commission Rs 199.78 lacs. (Pr. year Rs 181.13 Lacs)

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


Mar 31, 2011

1. Contingent Liabilities not provided for in respect of:

a) Guarantees outstanding Rs 672.22 lacs (Previous year Rs. 672.22 lacs)

b) Letter of credit Rs. 92.82 Lacs(Previous year Rs. 341.32 Lacs)

c) Arrear Dividend on 13% Non-Convertible Cumulative Redeemable Preference Shares as or- 31st March 2011 amounts to Rs. 382.24 lacs (Previous year Rs 382.24 lacs). See also Note B4 herein below

d) Claims/Disputed liabilities not acknowledged as debt, the amount of which is not ascertained.

e) Against outstanding Bank guarantee/letter of credit - Fixed deposit NIL (Previous year Rs. 257.00 Lacs) lacs lodged as security.

The company has received the following demands, which are disputed by the company and not provided for :

2. The Company has given Corporate Guarantees to Financial Institutions and Banks for granting Term Loans and Working Capital Loans to certain body corporates to the extent of Rs. 7000 lacs (Previous year Rs. 7000 lacs).

3.i) Following the declaration of the Company as a Sick Industrial undertaking by The Board for Industrial and Financial Reconstruction (BIFR) vide its order dated 30.01.2006 in terms of Section 3 (1) (A) of the Sick Industrial Companies (Special Provisions) Act, 1985 and also the appointment of Industrial Development Bank of India as the Operating Agency for preparation of a viability study report and revised scheme for the Company, Appeals against the said order were preferred by some of the secured lenders as well as the Company before the Appellate Authority for Industrial & Financial Reconstruction (AAIFR). The said appeals were taken up and adjudicated and vide its order dated 05.12.2007, AAIFR has remanded back to BIFR with a direction to reconsider the earlier references of the company on the basis of its earlier balance sheets also. During the year, in one of the appeals pending before AAIFR and in pursuance of ARCIL application to AAIFR, has opined that in view of the actions taken by ARCIL under Section 13(4) of SARFAESI Act, the reference filed by the Company stood abated under the proviso to Section 15(1) of SICA.

ii) Under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), ARCIL has taken over possession of the secured assets of the Company's plants during the Financial Year 2008-09 and has appointed Indoworth India Limited as the Custodian of such assets. The Companies business continued throughout the year as usual. However, the matter is subjudice in a suit before the Kolkata High Court and necessary adjustments in the financial statements, if required, would be made upon final adjudication of the proceedings.

However, these Accounts have been prepared on a Going Concern basis as the Management is of the view that the Going Concern assumption is not vitiated for the reason as stated above.

4. 13% Non-Convertible Cumulative Redeemable Preference Shares of the company has not been redeemed at par as per term of issue in 3 equal installments completely by 12th December, 2002. The company has received during the year a letter from IDBI , the holders demanding forthwith the payment of the entire amount due on redemption together with the dividends due thereon. However the matter is pending restructuring of loans due to Bank and Financial Institutions.

5. Sundry Debtors includes :

i) Rs. 3697.89 Lacs representing overdue Export Bills outstanding for long against which the company has obtained a decree for realizing the outstanding debts over a period of time ranging up to twenty years. The company has also filed an appeal for reduction/variation of the period of time.

ii) Rs. 27097.12 lacs representing overdue Export Bills outstanding for long that will be set off against import liabilities, claims, and commission etc. of the respective parties.

iii) Rs. 992.30 lacs representing overdue Export Bills outstanding for long against which the management has taken appropriate steps for its recovery.

6. i) The final settlement in respect of sales claims & commissions provided during the year 2002-03 for Rs. 8722.28 lacs is still pending & the necessary adjustment for such clairris & commissions will be made after finalisation on receipt of necessary approval from the concerned regulatory authorities. ii) Based on the past experience the company has provided Rs. 163.78 Lacs (Previous year Rs.72.23 lacs) during the year as sales claims which the management thinks adequate to meet future claims.

7. The company has applied from time to time to The Reserve Bank of India for extension/ set off of certain overdue bills, approval of which is still awaited.

8. There are certain cases pending in appropriate court regarding goods supplied by various creditors, which are being disputed by the Company. Advances given to them will be adjusted once the cases are disposed of and settled.

9. Current assets includes the understated amounts receivable from Companies, which have become sick and referred to BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985.

10. Export obligation for the assets acquired/taken on lease without payment of applicable duties lies with the Company under the provisions of the Exim Policy (Amount unascertained).

11. a) Interest provision on borrowing from some of the institutions and banks has been made in the accounts at prevailing/estimated rates on simple interest basis applicable on such loans. The impact of compound interest/Penal charges wherever applicable could not be ascertained.

b) The outstanding balance of Working Capital facilities from some of the banks and Term Loans from Financial Institutions are subject to receipt of confirmation/ statements. Balances in current account from some of the Banks are also subject to receipt of confirmation/ statement.

c) Pending restructuring interest provision on certain loans/borrowings has not been made and impact of the same is not presently ascertainable.

d) Certain Banks and Financial Institutions have taken legal recourse for recovery of their dues from the company. Loans and Advances include Rs. 150 Lacs deposited with the Banks in the name of advocates on record for both parties as per order of Hon'ble Kolkata High Court in case of litigation with a Bank.

12. As per technical opinion by the Company, the Company's Plant have been designed and operated on continuous process plant basis and depreciation has been provided at rates applicable to continuous process plant.

13. No interest income on loan amounting to Rs. 227.30 lacs has been accounted for during the year considering the financial health of the other Companies. However, the Management considers the outstanding principal amount of Rs. 227.30 lacs and interest receivable amounting to Rs. 136.69 lacs thereon as good and recoverable.

14. Due to non-completion of certain technical formalities, certain borrowing facilities, which were to be transferred to a body corporate pursuant to the original scheme of restructuring, could not be made.

15. The claim receivable includes Rs. 689.36 Lacs due from various banks on account of excess interest charged by them in earlier years are subject to confirmation. No provision has been made there against.

16. Certain Debtors, Creditors and Advances are subject to confirmation.

17. In respect of Sundry Debtors (including Domestic Sales Debtors) adjustments are pending against supplies and other liabilities etc due to the buyers. Management is confident of recovering the balance after such adjustments pending approval from concerned regulatory authority.

18. The company, being a sick industrial undertaking, could not redeem debentures & interest thereof as per the terms of issue, which will be dealt properly in the restructuring scheme.

19. The adjustment of Rs. 59.48 crores pertaining to transfer of Fixed Assets of the company in earlier years under scheme of demerger is still pending and will be dealt in the restructuring scheme.

20. In preparation of these Accounts, cognizance has not been taken by the Company of a Debit Note sent by a body corporate, indicating the unilateral transfer back by the said body corporate of all the assets which were transferred to them on 01.04.2000, together with all existing and underlying securities/charges as part of the restructuring scheme formulated by ICICI, in view of the various judicial proceedings pending at this juncture. However, the Company has been legally advised to deal with the above transfer back only after final disposal of the process of adjudication by the Court.

NOTES:

A) PRODUCTION :

Q Silk Waste dispatched includes recycled during the year 104222 Kgs (Previous year production excludes waste recycled 92551 kgs)- 5) Worsted Yarn Production excludes 44688 kgs of yarn (Previous year 9517 kgs) issued for reprocessing. Si) Worsted Yarn production exclude job account production of 544553 kgs (Previous year 445362 kgs)

B) SALES :

The above figure excludes the following; however consider the same in sales schedule.

i) Worsted yarn sales excludes job processing charges amounting to Rs 430.71 lacs (Previous year Rs. 235.06 lacs) and Top sale Rs 34.54 lacs (Previous year Top sale Rs 1430.15). ii) Silk Yarn sales excludes Silk Top sale of quantity 1640.65 kgs value Rs. 24.09 lacs (Previous year Qty 3927 kgs value Rs. 47.47 lacs). Si) OES Yarn sales excludes OESTop qty 500 kgs amounting to Rs 2.39 lacs.(Previous year Qty 2561 kgs value Rs. 12.14 lacs).

h) The Company has not recognized Deferred Tax Assets (Net) as per Accounting Standard 22, regarding "Accounting for Taxation" in view of consistent losses and of uncertainty regarding estimation of future Profit with reasonable certainty.

21. Employee benefits (Revised Accounting Standard 15)

a) Defined Contribution Plan :

The company makes contribution towards Provident Fund and ESIC to a defined contribution retirement benefit plan for qualifying employees. The Provident Fund plan is operated partly by Regional Provident Fund Commissioners and partly by an independent Trust, ESIC by Government agencies. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

During the year the company has recognised Rs. 54.98 lacs for Provident fund contribution, Rs. 16.87 lacs for ESIC. The Contribution payable to these plans by the Company are at the rates specified in the rules of the scheme.

b) Defined benefit Plans :

i) The plan provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days basic salary payable for each completed year of service. Vesting occurs upon completion of five years of continuous service.

ii) The employees of the company are eligible for encashment of leave upon retirement up to 30 days for each year (Maximum 120 days). Leave is accounted for on accrual basis.


Mar 31, 2010

1. Contingent Liabilities not provided for in respect of:

a) Guarantees outstanding Rs 672.22 lacs (Previous year Rs. 669.75 lacs)

b) Letter of credit Rs. 341.32 Lacs(Previous year Rs. 341.32 Lacs)

c) Arrear Dividend on 13% Non-Convertible Cumulative Redeemable Preference Shares as on 31st March 2010 amounts to Rs. 382.24 lacs (Previous year Rs 382.24 lacs)

d) Claims/Disputed liabilities not acknowledged as debt, the amount of which is not ascertained.

e) Against outstanding Bank guarantee/letter of credit- Fixed deposit Rs. 257(Previous year Rs. 204.76 Lacs) lacs lodged as security.

2. The Company has given Corporate Guarantees to Financial Institutions and Banks for granting Term Loans and Working Capital Loans to certain body corporates to the extent of Rs. 7000 lacs (Previous year Rs. 7000 lacs).

3. i) Following the declaration of the Company as a Sick Industrial undertaking by The Board for ..Industrial and Financial Reconstruction (BIFR) vide its order dated 30.01.2006 in terms of Section 3 (1) (A) of the Sick Industrial Companies (Special Provisions) Act, 1985 and also the appointment of Industrial Development Bank of India as the Operating Agency for preparation of a viability study report and revised scheme for the Company, Appeals against the said order were preferred by some of the secured lenders as well as the Company before the Appellate Authority for Industrial & Financial Reconstruction (AAIFR). The said appeals were taken up and adjudicated and vide its order dated 05.12.2007, AAIFR has remanded back to BIFR with a direction to reconsider the earlier references of the company on the basis of its earlier balance sheets also. During the year, in one of the appeals pending before AAIFR and in pursuance of ARCIL application toAAIFR, has opined that in view of the actions taken by ARCIL under Section 13(4) of SARFAESI Act, the reference filed by the Company stood abated under the proviso to Section 15(1) of SICA.

ii) Under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), ARCIL has taken over possession of the secured assets of the Companys plants during the last Financial Year and has appointed Indoworth India Limited as the Custodian of such assets. The Companies business continued throughout the year as usual. However, the matter is subjudice in a suit before the Kolkata High Court and necessary adjustments in the financial statements, if required, would be made upon final adjudication of the proceedings.

However, these Accounts have been prepared on a Going Concern basis as the Management is of the view that the Going Concern assumption is not vitiated for the reason as stated above.

4. 13% Non-Convertible Cumulative Redeemable Preference Shares of the company has not been redeemed at par as per term of issue in 3 equal installments completely by 12th December, 2002. The company has received during the year a letter from IDBI , the holders demanding forthwith the payment of the entire amount due on redemption together with the dividends due thereon. However the matter is pending restructuring of loans due to Bank and Financial Institutions.

5. Sundry Debtors includes :

i) Rs. 3697.89 Lacs representing overdue Export Bills outstanding for long against which the company has obtained a decree for realizing the outstanding debts over.a period of time ranging up to twenty years. The company has also filed an appeal for reduction/ variation of the period of time.

ii) Rs. 27097.12 lacs representing overdue Export Bills outstanding for long that will be set off against import liabilities, claims, and commission etc. of the respective parties.

iii) Rs. 992.30 lacs representing overdue Export Bills outstanding for long against which the management has taken appropriate steps for its recovery.

6. i) The final settlement in respect of sales claims & commissions provided during the year 2002-03 for Rs. 8722.28 lacs is still pending & the necessary adjustment for such claims & commissions will be made after finalisation on receipt of necessary approval from the concerned regulatory authorities.

ii) Based on the past experience the company has provided Rs. 72.23 Lacs (Previous year Rs. 189.53 lacs) during the year as sales claims which the management thinks adequate to meet future claims.

7. The company has applied from time to time to The Reserve Bank of India for extension/ set off of certain overdue bills, approval of which is still awaited.

8. There are certain cases pending in appropriate court regarding goods supplied by various creditors, which are being disputed by the Company. Advances given to them will be adjusted once the cases are disposed of and settled.

9. a) Interest provision on borrowing from some of the institutions and banks has been made in the accounts at prevailing/estimated rates on simple interest basis applicable on such loans. The impact of compound interest/Penal charges wherever applicable could not be ascertained.

b) The outstanding balance of Working Capital facilities from some of the banks and Term Loans from Financial Institutions are subject to receipt of confirmation/ statements. Balances in current account from some of the Banks are also subject to receipt of confirmation/ statement.

c) Pending restructuring interest provision on certain loans/borrowings has not been made and impact of the same is not presently ascertainable.

d) Certain Banks and Financial Institutions have taken legal recourse for recovery of their dues from the company. Loans and Advances include Rs. 150 Lacs deposited with the Banks in the name of advocates on record for both parties as per order of Honble Kolkata High Court in case of litigation with a Bank.

10. As per technical opinion by the Company, the Companys Plant have been designed and operated on continuous process plant basis and depreciation has been provided at rates applicable to continuous process plant.

11. No interest income on loan amounting to Rs. 227.30 lacs has been accounted for during the year considering the financial health of the other Companies. However, the Management considers the outstanding principal amount of Rs. 227.30 lacs and interest receivable amounting to Rs.136.69 lacs thereon as good and recoverable.

12. Due to non-completion of certain technical formalities, certain borrowing facilities, which were to be transferred to a body corporate pursuant to the original scheme of restructuring, could not be made.

13. The claim receivable includes Rs. 689.36 Lacs due from various banks on account of excess interest charged by them in earlier years are subject to confirmation. No provision has been made there against.

14. Certain Debtors, Creditors and Advances are subject to confirmation.

15. In respect of Sundry Debtors (including Domestic Sales Debtors) adjustments are pending against supplies and other liabilities etc due to the buyers. Management is confident of recovering the balance after such adjustments pending approval from concerned regulatory authority.

16. The company, being a sick industrial undertaking, could not redeem debentures & interest thereof as per the terms of jssue, which will be dealt properly in the restructuring scheme.

17. The adjustment of Rs. 59.48 crores pertaining to transfer of Fixed Assets of the company in earlier years under scheme of demerger is still pending and will be dealt in the restructuring scheme.

18. In preparation of these Accounts, congnizance has not been taken by the Company of a Debit Note sent by a body corporate within the year end, indicating the unilateral transfer back by the said body corporate of all the assetswhich were transferred to them on 01.04.2000, tegether with all existing and underlying securities/charges as part of the restructuring scheme formulated by ICICI, in view of the various judicial proceedings pending at this juncture. Howerver, the Company has been legally advised to deal with the above transfer back only after final disposal of the process of adjudication by the Court.

19. Discounts, commission & other selling expenses include commission Rs. 102.01 lacs (Previous year Rs. 46.53 lacs).

20. Related Party Disclosure :

Related Party disclosure as required by AS -18, "Related Party Disclosure" are given below :

a. Relationship :

Associates :

Uniworth Textiles Ltd. Uniworth Power Ltd. Uniworth Apparel Ltd. Aviante International Ltd.

Key Management Personnel Mr. Shiv Sharma

21. Employee benefits (Revised Accounting Standard 15)

a) Defined Contribution Plan :

The company makes contribution towards Provident Fund and ESIC to a defined contribution retirement benefit plan for qualifying employees. The Provident Fund plan is operated partly by Regional Provident Fund Commissioners and partly by an independent Trust, ESIC by Government agencies. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the. benefits.

During the year the company has recognised Rs. 41.48 lacs for Provident fund contribution, Rs 9.99 lacs for ESIC. The Contribution payable to these plans by the Company are at the rates specified in the rules of the scheme.

b) Defined benefit Plans :

i) The plan provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days basic salary payable for each completed year of service. Vesting occurs upon completion of five years of continuous service.

22. Previous Years figures have been re-grouped/re-arranged wherever considered necessary and figures in brackets relates to Previous Year.

23. Schedule 1 to 11 and 20-form part of the Balance Sheet as at 31st March 2010 and Schedule 12 to 20 - form part of the Profit & Loss Account for the year ended on that date.

 
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