Notes to Accounts of AI Champdany Industries Ltd.

Mar 31, 2018

1. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Information about Significant judgments and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

- Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized. In addition, significant judgment is required in assessing the impact of any legal or economic limits.

- Classification of Leases: The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

- Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.

- Provisions and Contingencies: The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS] 37, ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events is applied best judgment by management regarding the probability of exposure to potential loss.

- Impairment of Financial Assets: The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.

- Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

- Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The input to these models are taken from observable markets where possible, but where this not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility.

- Sales Return: The Company accounts for sales returns accrual by recording an allowance for sales returns concurrent with the recognition of revenue at the time of a product sale. This allowance is based on the Company''s estimate of expected sales returns. The Company deals in various products and operates in various markets. Accordingly, the estimate of sales returns is determined primarily by the Company''s historical experience in the markets in which the Company operates.

Mr.SM Palia

Dr.G Goswami

Mr.N Das(Up to 21.09.2017)

Dr.B Sen(Up to 21.09.2017)

Mr.B Wadhwa Ms.Ramya Hariharan (O)Others (Entities under significant influence) AIC Properties LTD Landale & Clerk Ltd G Jerambhai Exports Ltd Gunny Dealers ltd Libra Exporters Ltd Libra Transport Ltd Macgregor & Balfour India Ltd.

Jessor Industries (India) Ltd.

Naffar Chandra Jute Mills Ltd.

Eastern Services ltd.

Baidyabati Industries Ltd.

West Bengal Multifibre Jute Park Ltd. Jerambhai Seva Trust V.B.Seva Trust

Circus Avenue Properties Pvt. Ltd.

Sibir India Ltd.(Up to 31.12.2017)

Amar Investments Ltd.(Up to 31.12.2017) Rishra Investments Ltd.(Up to 31.12.2017) Gojer Brothers Pvt. Ltd.

West Range Properties Pvt.Ltd.

Coopers Commodities Ltd.

9 Mandatory Exceptions

a Estimates

As per para 14 of Ind AS 101, an entity''s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity''s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per para 16 of the standard, where application ofInd AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition or at the end of the comparative period.

The Company''s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statement that were not required under the previous GAAP are listed below:

-Fair Valuation of financial instruments carried at FVTPL and/ or FVOCI.

-Impairment of financial assets based on the expected credit loss model.

-Determination of the discounted value for financial instruments carried at amortized cost.

9.1 Impact of Transition to Ind AS

The following is a summary of the effects of the differences between IND AS and Indian GAAP on the Company''s total equity shareholders'' funds and profit and loss for the financial periods previously reported under Indian GAAP following the date of transition to IND AS.

2. Notes to First Time Adoption

a Expected Credit Loss Model

Under Ind A She allowance for doubtful debts has been determined based on expected credit loss model. b Provision for Expected Sales Return

The Company has recognized provision for expected sales return on account of breakage and expiry of goods. The same has resulted in decrease in revenue and increase in provisions. c Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to different temporary differences. According to the accounting policies, the company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity. d Remeasurements of post-employment benefit obligations

Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. e Reclassification between Previous GAAP and Ind AS

i. Excise duty has been reclassified from revenue to other expenses.

ii. Trade discounts to customers has been reclassified from other expenses to revenue. f Retained Earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

H Categories of Financial Assets & Financial Liabilities

As at 31st March 2018 and 31st March 2017____

3. Joint Arrangement under IND AS-111

Operational Income in others Column includes Rs.1305.34 lacs (previous year - nil) being the consideration of transfer of right in inventories of landed property, forming part of current assets, placed under joint arrangement (within the meaning of clause 5(a) of IND AS-111) the company has entered into with a participant under contractual arrangement, to set-up jute diversified project including land development. Respective share therein being 40% and 60%.

Relevant arrangement being of the nature of joint operation as defined in clause 15 of IND AS-111, company''s interest in said arrangement is recognized in application of clause-20 in said standard. Inventories include Rs.43.73 lacs (previous year - nil) pertaining to beneficial right of the company therein.

4.Previ our GAA P figures have been reclassified/ regrouped to co infirm the presentation requirements under IND AS and the requirements laid down in Division II of the schedule III of the Companies Act 2013.

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Mar 31, 2016

2.2 2,683,045 equity shares has been alloted on 15.05.2013 and 2,204,786 equity shares has been alloted on 25.09.2012 to promoter group companies on preferential basis under SEBI (ICDR) Regulation 2009 with a locking period of 3 years. Equity Shares carry voting rights at the General Meeting of the Company and are entitled to dividend and to participate in surplus, if any, in the event of winding up. The Company has alloted 22,00,000 7% Cumulative Preference Shares of Rs 10 each on 25.09.2004. which are redeemable at par on or before the expiring of 20 years from the date of allotement has been redeemed during the year 2012-13. The company has alloted 12,414,353 non-convertible 2% Cumulative Preference Shares of Rs 5 each on 30.03.2010 which are redeemable at par on or before fifteen years from the date of allotment with a locking period of 3 years. Preference shareholders are entitled to get fixed rate of dividend in preference to the equity share but are not entitled to vote at General Meeting of the Company unless dividend has been in arrears for the prescribed minimum period.

*Loan from Bank of Baroda is secured by first paripassu charge on the entire fixed assets of the company, present and future and second paripassu charge on the entire current assets of the company, present and future and lien on fixed deposit of Rs 10 lacs. Loan is repayable in 20 quarterly installments by September 2019. Loan from Export Import Bank of India (Exim Bank) is secured by first paripassu charge on the entire fixed assets of the company, present and future excluding Anglo India Jute Mill (Middle Mill) and second paripassu charge on the entire current assets of the company, including receivable, present and future. Loan is repayable in 24 quarterly installments by July 2022.

* Secured by hypothecation on stocks of raw material, stock -in-process, stores, manufactured goods, book debts, bill, moveable plant & machinery and other current assets and also mortgage on second charge basis by deposit of title deeds by constructive delivery with Exim Bank, Exim Bank acting as agent of the consortium of banks, all documents of title evidences, deeds and writings in order to create a security on the Company’s immovable properties together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, and also by way of second charge on 100% shareholding of Champdany Constructions Ltd a wholly owned subsidiary of the company.

There are no dues to Micro and Small Enterprises, determined to the extent such parties have been identified on the basis of information available with the Company, as at March requires disclosures under the Micro, Small and Medium Enterprises Development Act, 2006.

1. During the year 2015-16 Fixed Assets of Rs. 44.76 lacs have been transferred to Stock-in-Trade in respect of certain Machineries belongs to Yarn Unit at Rishra and Konnagar Unit of the Company.

(ii) Dividend on Cumulative Preference Shares are in arrears since 30 March 2010, Rs.89.73 lacs (previous year Rs. 74.56 lacs) including Dividend Distribution Tax Rs. 15.18 lacs (previous year Rs. 12.42 lacs).

2. Revenue from operations comprises of Sale of Jute / Jute diversified Products & Services Rs.19,280.82 lacs (2014-15 - Rs. 24,468.76 lacs), Sale of Flax Products Rs.1,500.90 lacs (2014-15 - Rs. 2,215.64 lacs), Sale of Raw Jute Rs. 62.08 lacs (2014-15 -Rs. 2,867.75 lacs), Sale of Flax Fibre Rs. 178.05 lacs (2014-15 Rs. 173.48 lacs) and Sales Related Income Rs.755.41 lacs (2014-15- Rs.664.81 lacs).

3. Jute Carpets / Jute diversified Products & Services have been treated as belonging to the same class as Jute / Jute Diversified Products & Services.

4. Inventory comprises of Stock of Finished goods and in trade of Jute / jute diversified Products & Services (Packed/ unpacked) Opening Stock Rs.9,477.60 lacs (2014-15 - Rs. 9,822.77 lacs) Closing Stock Rs.9,102.07 lacs (2014-15 - Rs. 9,477.60 lacs).

Stock of Finished goods and in trade of Flax Products (Packed/ unpacked) Opening Stock Rs.726.64 lacs (2014-15 - Rs. 610.76 lacs) Closing Stock Rs. 1,201.26 lacs (2014-15 - Rs. 726.64 lacs).

5. Shalimar Units have been closed with due process of law. Operations at Konnagar and Choudwar units continued to be under suspension. The working at Weaving Unit at Rishra is under suspension of work since 23 May 2015. The working at Anglo-India Jute Mill (Middle Mill) at Jagatdal has been temporarily suspended from 26 May 2015 to 13 September 2015. The working at Yarn unit, Rishra has been temporarily suspended from 20 June 2015 to 28 August 2015, 26 September 2015 to 27 October 2015, 12 November 2015 to 19 November 2015, 22 December 2015 to 5 January 2016 and also from 21 March 2016 which is still continuing.

The working at Wellington Jute Mill, Rishra has been temporarily suspended from 26 March 2016 which is still continuing. Management is of the view that the sale proceeds of the Fixed Assets relating to the Choudwar, Konnagar and Shalimar Units would not be lower than the amount at they are carried in the books. The carrying values of assets of the cash generating units at Balance Sheet date are reviewed for impairment and management is of the view that there is no impairment exists. This has been relied upon by the Auditors’.

6. The Company’s application to the Competent Authority for exemption from the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 is pending approval.

7. The Company has maintained separate books of account for Wellington Jute Mills, Weaving and Yarn Units at Rishra, Middle Mill, Fine Yarn and Flax Units at Jagatdal and Weaving Unit at Konnagar, Beldanga, Shalimar and Kankinara Units at West Bengal and Libra Carpet Unit at Choudwar, Odisha.

8. As approved by way of special Resolution passed by shareholders on 14.03.2014 by way of Postal Ballot, the Company sold its Anglo-India Jute Mill (Middle Mill) located at Jagatdal, Dist. 24 Parganas (North), West Bengal w.e.f. 01.05.2016 to M/s P & A Distilleries Private Limited (subsequently name changed to Anglo-India Jute & Textile Industries Private Limited w.e.f. 14.05.2016).

9. Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for Anglo-India Jute Mill (Middle Mill) from 1997-98 to 2006-07 treated on cash basis and liability for the staid period is not ascertained, but from financial year 200708 provided on accrual basis. However, the said unit has been sold with effect from 1 May 2016 alongwith all its gratuity liability both past and future.

10. By an Order passed by the Hon’ble Division Bench of the High Court at Calcutta, six winding-up matters were relegated to Civil Suits for a claim of Rs.319 lacs of the erstwhile promoters of Anglo-India Jute Mills Co Ltd (now AI Champdany Industries Ltd), being the unsecured loan disputed by the Company. As per direction of the High Court, Calcutta, the Company has provided required securities to the satisfaction of the Registrar, Original Side, Calcutta High Court till the disposal of the suits.

Six suits were filed by the erstwhile promoters by their six respective companies. In the said suits a composite decree to the tune of Rs.2.77 crores is passed. Challenging the said decree six appeals are preferred by AI Champdany Industries Limited which are allowed and the cross appeal filed by respondents are dismissed, and the entire claim of the six unsecured creditors have been placed for trial. Written statements in six suits have been filed by the company as per order of the Hon’ble Division Bench of Calcutta High Court. Special Leave Petition (SLP) filed before the Hon’ble Supreme Court by six companies of erstwhile promoters of AIJM against the order passed by the Division Bench of the Hon’ble High Court at Calcutta. Hon’ble Supreme Court dismissed the SLP filed by six companies of erstwhile promoters of AIJM. After trial, the above suits (six in numbers) have been decreed in terms of the claims in the plaints depicted Rs.13 crores approximately. The said decrees are challenged in the Hon’ble Court of Appeal. In terms of the order passed by the Hon’ble Court of Appeal, the decrees passed in the said six suits have been stayed upon furnishing security, needless to say, the requisite securities have been furnished. The appeals are pending adjudication.

11. The Company has obtained possession of its flat at Woodland Syndicate as per the Order of the Court and the said flat has also been sold to a third party. The Company has filed an Application for final decree for mesne profits for wrongful occupation of the flat, before the Learned Civil Judge, Senior Division, 1st Court at Alipore,

12 Parganas (South), which is directed to attach with the suit proceeding. The decree passed in favour of the Company was challenged in the Hon’ble High Court and the same was dismissed on merits. Proceeding for realization of the manse profit is pending before the Ld Civil Judge (Sr. Division) 1st Court at Alipore.

13. Previous year’s figures have been rearranged / reclassified / regrouped wherever necessary and to make it in confirmatory with the amended Schedule III to the Companies Act, 2013.

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Mar 31, 2015

Rs. in lacs 1. Contingent liabilities in respect of: Year ended Year ended 31.03.15 31.03.14

(i) a) Bank Guarantees 740.47 1,978.44

b) Bank Guarantees issued on pledge of shares by other 432.54 432.54 companies

c) Claims for Commercial Taxes and Income Tax not 2057.63 693.10 acknowledged as debt and under appeal

d) Other claims not acknowledged as debt 733.44 485.93

e) Bills drawn on customers and discounted with banks and 318.36 649.98 advances against collection

(ii) Dividend on Cumulative Preference Shares are in arrears since 30 March 2010, Rs.74.56 lacs (previous year Rs. 58.18 lacs) including Dividend Distribution Tax Rs.12.42 lacs (previous year Rs. 8.45 lacs).

2. Revenue from operations comprises of Sale of Jute / Jute diversified Products & Services Rs24,468.76 lacs (2013-14 - Rs. 27,852.45 lacs), Sale of Flax Products Rs.2,215.64 lacs (2013-14 - Rs. 2,839.52 lacs), Sale of Raw Jute Rs. 2,867.75 lacs (2013-14 -Rs. 2,595.19 lacs), Sale of Flax Fibre Rs. 173.48 lacs (2013- 14 - Rs. 35.07 lacs) and Sales Related Income Rs.664.81 lacs (2013-14- Rs. 495.19 lacs).

3. Jute Carpets / Jute diversified Products & Services have been treated as belonging to the same class as Jute / Jute Diversified Products & Services.

4. Inventory comprises of Stock of Finished goods and in trade of Jute / jute diversified Products & Services (Packed/ unpacked) Opening Stock Rs.9,822.77 lacs (2013-14 - Rs. 8,493.80 lacs) Closing Stock Rs.9,477.60 lacs (2013-14 - Rs. 9,822.77 lacs).

Stock of Finished goods and in trade of Flax Products (Packed/ unpacked) Opening Stock Rs.610.76 lacs (2013-14 - Rs. 769.73 lacs) Closing Stock Rs. 726.64 lacs (2013-14 - Rs. 610.76 lacs).

5. Cost of materials consumed includes purchase of (i) Jute goods for Trading Rs..465.66 lacs (2013-14 - Rs. 753.16 lacs) and (ii) Raw materials for Trading Rs.3,037.14 lacs (2013-14 -Rs. 2,613.84 lacs).

6. Shalimar Units have been closed with due process of law. Operations at Yarn Unit at Konnagar continued to be under suspension. Working at Yarn Unit and Libra Carpet Unit at Choudwar have been suspended from 28 December 2005 and 1 May 2006 respectively. Weaving Unit at Konnagar is under suspension of work since 6 February 2014. The working at Weaving Unit at Rishra and Anglo-India Jute Mill (Middle Mill) at Jagatdal have been temporarily suspended from 23 May 2015 and 26 May 2015 respectively. Management is of the view that the sale proceeds of the Fixed Assets relating to the Choudwar, Konnagar and Shalimar Units would not be lower than the amount at they are carried in the books. The carrying values of assets of the cash generating units at Balance Sheet date are reviewed for impairment and management is of the view that there is no impairment exists. This has been relied upon by the Auditors''.

7. The Company''s application to the Competent Authority for exemption from the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 is pending approval.

8. The Company has maintained separate books of account for Wellington Jute Mills, Weaving and Yarn Units at Rishra, Middle Mill, Fine Yarn and Flax Units at Jagatdal and Yarn and Weaving Units at Konnagar, Beldanga, Shalimar and Kankinara Units at West Bengal and Libra Carpet and Yarn Units at Choudwar, Odisha.

9. The Company has received consent from shareholders on 14 March 2014 by way of postal ballot, for sale of one of the undertakings namely Anglo-India Jute Mill (Middle Mill) located at Jagatdal, District. 24 Parganas (North), West Bengal. The matter is under process.

10. Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for one unit of the company from 1997-98 to 2006- 07 treated on cash basis and liability for the said period is not ascertained, but from financial year 2007- 08 provided on accrual basis.

11. In respect of the fire occurred on 21 January 2011 at Wellington Jute Mill, Rishra, the adjustment has been made to the accounts to the extent of estimated loss of goods - 565 MT - Rs.388.36 lacs during the year.

12. By an Order passed by the Hon''ble Division Bench of the High Court at Calcutta, six winding-up matters were relegated to Civil Suits for a claim of Rs. 319 lacs of the erstwhile promoters of Anglo-India Jute Mills Co. Ltd. (now AI Champdany Industries Ltd.), being the unsecured loan disputed by the Company. As per direction of the High Court, Calcutta, the Company has provided required securities to the satisfaction of the Registrar, Original Side, Calcutta High Court till the disposal of the suits.

Six suits were filed by the erstwhile promoters by their six respective companies. In the said suits a composite decree to the tune of Rs. 2.77 crores is passed. Challenging the said decree six appeals are preferred by AI Champdany Industries Limited which are allowed and the cross appeal filed by respondents are dismissed, and the entire claim of the six unsecured creditors have been placed for trial. Written statements in six suits have been filed by the company as per order of the Hon''ble Division Bench of Calcutta High Court. Special Leave Petition (SLP) filed before the Hon''ble Supreme Court by six companies of erstwhile promoters of AIJM against the order passed by the Division Bench of the Hon''ble High Court at Calcutta. Hon''ble Supreme Court dismissed the SLP filed by six companies of erstwhile promoters of AIJM. The suits (six in nos) are pending adjudication and trial before the Hon''ble High Court at Calcutta.

13. The Company has obtained possession of its flat at Woodland Syndicate as per the Order of the Court and the said flat has also been sold to a third party. The Company has filed an Application for final decree for mesne profits for wrongful occupation of the flat, before the Learned Civil Judge, Senior Division, 1st Court at Alipore, 24 Parganas (South), which is directed to attach with the suit proceeding. The decree passed in favour of the Company was challenged in the Hon''ble High Court and the same was dismissed on merits. Proceeding for realization of the mesne profit is pending before the Ld Civil Judge (Sr. Division) 1st Court at Alipore.

14. Previous year''s figures have been rearranged / reclassified / regrouped wherever necessary and to make it in conformatory with the amended Schedule III to the Companies Act, 2013.

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Mar 31, 2014

Rs in lacs Year ended Year ended 31.03.14 31.03.13

1. Estimated amount of contract remaining to be executed on capital account not provided for 52.48 54.20

2.(i) Contingent liabilities in respect of :

a) Bank Guarantees 1,978.44 1,826.16

b) Bank Guarantees issued on pledge of shares by other companies 432.54 432.54

c) Claims for Commercial Taxes and Income Tax not acknowledged as debt and under appeal 693.10 476.15

d) Other claims not acknowledged as debt 485.93 373.45

e) Bills drawn on customers and discounted with banks and advances against collection 649.98 665.65

(ii) Dividend on Cumulative Preference Shares are in arrears since 30 March 2010, Rs.58.18 lacs (previous year Rs. 43.65 lacs) including Dividend Distribution Tax Rs.8.45 lacs (previous year Rs. 6.34 lacs).

3. The Company has allotted 2,683,045 nos of Equity Shares of face value of Rs. 5/- each on conversion of 2,683,045 nos of convertible share warrants at a price of Rs.20.50 (including premium of Rs.15.50 per warrant), 25% paid up during the previous year and 75% paid during the year with the right to convert each warrant into one fully paid up Equity share of face value of Rs.5/- not before 31.03.2013 and not later than 18 months from the date of allotment of convertible warrants i.e. within 25.03.2014. These shares on conversion of warrants were allotted to promoter group companies on 15.05.2013 on preferential basis under SEBI (ICDR) Regulation 2009, with a lock in period of 3 years.

4. Revenue from operations comprises of Sale of Jute / Jute diversified Products & Services Rs.27,852.45 lacs (2012-13 - Rs.32,117.64 lacs), Sale of Flax Products Rs. 2,839.52 lacs (2012-13 - Rs. 1,590.85 lacs), Sale of Raw Jute Rs. 2,595.19 lacs (2012-13 –Rs. 1131.32 lacs), Sale of Flax Fibre Rs.35.07 lacs (2012-13 - Rs.30.57 lacs) and Sales Related Income Rs.495.19 lacs (2012-13- Rs. 550.07 lacs).

5. Jute Carpets / Jute diversified Products & Services have been treated as belonging to the same class as Jute / Jute Diversified Products & Services.

6. Inventory comprises of Stock of Finished goods and in trade of Jute / jute diversified Products & Services (Packed/ unpacked) Opening Stock Rs.8,493.80 lacs (2012-13 - Rs. 7,643.46 lacs) Closing Stock Rs.9,822.77 lacs (2012-13 - Rs. 8,493.80 lacs).

Stock of Finished goods and in trade of Flax Products (Packed/ unpacked) Opening Stock Rs769.73 lacs (2012-13 - Rs. 1,016.80 lacs) Closing Stock Rs. 610.76 lacs (2012-13 – Rs. 769.73lacs). Shortage of 33 MT, valued Rs.211.29 lacs of flax yarn was found upon physical verification as on 31 March 2014 and such shortage has been adjusted during the year 2013-14.

7. Raw material consumed - i) Jute/Jute yarn Rs. 13,984.06 lacs (2012-13 - Rs. 14,509.07 lacs)

ii) Flax fibre, Rs. 1,489.65 lacs (2012-13 - Rs. 1,003.57 lacs).

8. Cost of materials consumed includes purchase of (i) Jute goods for Trading Rs.753.16 lacs (2012-13 - Rs. 2,523.56 lacs) and (ii) Raw materials for Trading Rs. 2,613.84 lacs (2012-13 -Rs. 1,171.42 lacs).

9. Segment Information :

The Company has considered two Business Segments viz; Jute/jute diversified Products & Services and Flax Products.

10. Related Party Disclosures :

(a) List of Related Parties and Relationships :

Party Relationship

a) Landale & Clark Limited Subsidiary-100%

b) Champdany Constructions Limited Subsidiary 100%

c) AIC Properties Limited Subsidiary 100%

d) Mr. Nirmal Pujara Key Management Personnel

11. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8 February 2011 and 21 February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act 1956 subject to fulfillment of conditions stipulated in the circular. The company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to subsidiary has been included in the consolidated financial statement.

12. Narayanpur and Shalimar Units have been closed with due process of law. Operations at Yarn Unit at Konnagar continued to be under suspension. Working at Yarn Unit and Libra Carpet Unit at Choudwar have been suspended from 28 December 2005 and 1 May 2006 respectively. Weaving Unit at Konnagor is under suspension of work since 6 February 2014. Management is of the view that the sale proceeds of the Fixed Assets relating to the Narayanpur, Choudwar, Konnagar and Shalimar Units would not be lower than the amount at they are carried in the books. The carrying values of assets of the cash generating units at Balance Sheet date are reviewed for impairment and management is of the view that there is no impairment exists. This has been relied upon by the Auditors''.

13. The Company''s application to the Competent Authority for exemption from the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 is pending approval.

14. The Company has maintained separate books of account for Wellington Jute Mills, Weaving and Yarn Units at Rishra, Middle Mill, Fine Yarn and Flax Units at Jagatdal and Yarn and Weaving Units at Konnagar, Beldanga, Narayanpur, Shalimar and Kankinara Units at West Bengal and Libra Carpet and Yarn Units at Choudwar, Odhisa.

15. As approved by the shareholders at the Annual General Meeting of the company held on 29 July 2008, the face value has been subdivided from one Equity Share of Rs.10/- each into two Equity shares of Rs.5/- each with effect from 19 September 2008.

16. In accordance with the policy consistently followed by the company, the outstanding commodity hedging contracts are accounted on the date of their settlement and realised gain / loss in respect of settled contracts are recognised in the Statement of Profit and Loss, along with the underlying transactions. However, the Company has not entered any hedging contracts as such there is no implication.

17. In respect of the fire occurred on 21 January 2011 at Wellington Jute Mill, Rishra, the final assessment to the damage caused to Assets is yet to be completed by the insurance authorities. Pending such assessments, no adjustment has been made to the accounts to the extent of estimated loss of goods – 565 MT - Rs.388.36 lacs.

The company has filed necessary claims with the insurance authorities and adjustments to the accounts would be effected on completion of assessment and settlement of related claims.

18. Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for one unit of the company from 1997-98 to 2006-07 treated on cash basis and liability for the said period is not ascertained, but from financial year 2007-08 provided on accrual basis.

19. The company has received the eligibility certificate from Sales Tax Authorities for the net value of fixed capital assets amounting to Rs.773 lacs and on gross addition to fixed assets amounting to Rs.616 lacs for the period from 1995-1996 to 1999-2000 and pending disposal of company''s appeal for additional eligibility on the basis of gross value of fixed capital assets, an amount of Rs.1,119.57 lacs has been availed by the company on this account upto April, 2000. Adjustment, if any, on this account being currently not ascertainable, shall be considered as and when it arises.

20. By an Order passed by the Hon''ble Division Bench of the High Court at Calcutta, six winding-up matters were relegated to Civil Suits for a claim of Rs.319 lacs of the erstwhile promoters of Anglo-India Jute Mills Co Ltd (now AI Champdany Industries Ltd), being the unsecured loan disputed by the Company. As per direction of the High Court, Calcutta, the Company has provided required securities to the satisfaction of the Registrar, Original Side, Calcutta High Court till the disposal of the suits.

Six suits were filed by the erstwhile promoters by their six respective companies. In the said suits a composite decree to the tune of Rs.2.77 crores is passed. Challenging the said decree six appeals are preferred by AI Champdany Industries Limited which are allowed and the cross appeal filed by respondents are dismissed, and the entire claim of the six unsecured creditors have been placed for trial. Written statements in six suits have been filed by the company as per order of the Hon''ble Division Bench of Calcutta High Court. Special Leave Petition (SLP) filed before the Hon''ble Supreme Court by six companies of erstwhile promoters of AIJM against the order passed by the Division Bench of the Hon''ble High Court at Calcutta. Hon''ble Supreme Court dismissed the SLP filed by six companies of erstwhile promoters of AIJM. The suits (six in nos) are pending adjudication and trial before the Hon''ble High Court at Calcutta.

21. The Company has obtained possession of its flat at Woodland Syndicate as per the Order of the Court. The Company has filed an Application for final decree for mesne profits for wrongful occupation of the flat, before the Learned Civil Judge, Senior Division, 1st Court at Alipore, 24 Parganas (South), which is directed to attach with the suit proceeding. The decree passed in favour of the Company was challenged in the Hon''ble High Court and the same was dismissed on merits.

22. The Company has received consent from shareholders on 14 March 2014 by way of postal ballot, for sale of one of the undertakings namely Anglo-India Jute Mill (Middle Mill) located at Jagatdal, District. 24 Parganas (North), West Bengal. The matter is under process.

23. Previous year''s figures have been rearranged / reclassified / regrouped wherever necessary and to make it in conformatory with the amended Schedule VI to the Companies Act, 1956.

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Mar 31, 2013

1. I) Contingent liabilities in respect of:

a) Bank Guarantees 1826.16 1915.95

b) Bank Guarantees issued on pledged of shares by other companies 432.54 432.54

c) Claims for Commercial Taxes and Income Tax not acknowledged as 476.15 522.58 debt and under appeal

d) Other claims not acknowledged as debt 373.45 396.21

e) Bills drawn on customers and discounted with banks and advances 665.65 502.98 against collection

II) Arrears of Cumulative Preference Shares Dividend Rs.43.65 lacs (previous year Rs.82.63 lacs) including Dividend Distribution Tax Rs. 6.34 lacs (previous year Rs. 11.53 lacs).

2. The Company has issued 2204786 nos of Equity Shares of face value of Rs. 5/- each at a price of Rs. 20.50 (including premium of Rs. 15.50) per share and 2683045 nos of convertible share warrants at a price of Rs. 20.50 (including premium of Rs. 15.50) per warrant, 25% paid up during the year with the right to convert each warrants into one fully paid up Equity share of face value of Rs. 5/- not before 31.03.2013 and not later than 18 months from the date of allotment of convertible warrants i.e. within 25.03.2014.These shares and warrants were allotted to promoter group companies on preferential basis issued under SEBI (ICDR) Regulation 2009, with a lock in period of 3 years.

3. Sale of Jute / Jute diversified Products & Services Rs.32,117.64 lacs (2011-12 - Rs.34,907.20 lacs), Sale of Flax Products Rs.1,590.85 lacs (2011-12 - Rs.1,576.93 lacs), Sale of Raw Jute Rs.1,131.32 lacs (2011-12 –Rs.1,146.06 lacs), Sale of Flax Fibre Rs. 30.57 lacs (2011-12 - Rs. 36.15 lacs) and Sales Related Income Rs.550.07 lacs (2011-12- Rs.1641.50 lacs).

4. Jute Carpets / Jute diversified Products & Services have been treated as belonging to the same class as Jute / Jute Diversified Products & Services.

5. Stock of Finished goods and in trade of Jute / jute diversified Products & Services (Packed/ unpacked) Opening Stock Rs. 7,634.45 lacs (2011-12 - Rs.7,763.78 lacs) Closing Stock Rs. 8,493.79 lacs (2011-12 - Rs. 7,634.45 lacs).

Stock of Finished goods and in trade of Flax Products (Packed/ unpacked) Opening Stock Rs. 1,016.80 lacs (2011-12 - Rs. 1,244.49 lacs) Closing Stock Rs.769.73 lacs (2011-12 –, Rs.1,016.80 lacs). Shortage of 45 MT, Rs.128.13 lacs of Flax Yarn was found upon physical verification of stock as on 31.03.2013 and the matter is under investigation and such shortage has been adjusted.

6. Raw material consumed - i) Jute/Jute yarn Rs.14509.07 lacs (2011-12 - Rs.13,309.07 lacs)

ii) Flax fibre Rs. 1003.57 lacs (2011-12 - Rs. 793.64 lacs).

7. Cost of materials consumed includes purchase of (i) Jute goods Rs. 2523.56 lacs (2011-12 - Rs.8475.10 lacs) and (ii) Raw materials for Trading Rs,1171.42 lacs (2011-12 - Rs. 1145.59 lacs).

8. Segment Information:

The Company has considered two Business Segments viz; Jute/jute diversified Products & Services and Flax Products.

9. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8 February

2011 and 21 February 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act 1956 subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to subsidiary has been included in the consolidated financial statement.

10. Narayanpur and Shalimar Units have been closed with due process of law. Working at Yarn Unit and Libra Carpet Unit at Choudwar have been suspended from 28 December 2005 and 1 May 2006 respectively. Flax Unit at Jagatdal was under suspension of work from 2 January 2012 to 16 August 2012. Management is of the view that the sale proceeds of the Fixed Assets relating to the Narayanpur, Choudwar and Shalimar Units would not be lower than the amount at they are carried in the books. The carrying values of assets of the cash generating units at Balance Sheet date are reviewed for impairment and management is of the view that there is no impairment exists. This has been relied upon by the Auditors''.

11. The Company''s application to the Competent Authority for exemption from the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 is pending for approval.

12. As approved by the shareholders at the Annual General Meeting of the company held on 29 July 2008, the face value has been subdivided from one Equity Share of Rs.10/- each into two Equity shares of Rs.5/- each with effect from 19 September 2008.

13. Commodity Hedging Transactions:

In accordance with the policy consistently followed by the company, the outstanding commodity hedging contracts are accounted on the date of their settlement and realised gain / loss in respect of settled contracts are recognised in the Statement of Profit and Loss , along with the underlying transactions.

14. In respect of the fire occurred on 22 April 2006 and 21 January 2011 at Wellington Jute Mill, Rishra, the final assessment to the damage caused to Assets is yet to be completed by the insurance authorities. Pending such assessments, no adjustment has been made to the accounts to the extent of estimated loss of goods – 1059 MT - Rs. 770.70 lacs (2011-12 - 1059 MT - Rs. 770.70 lacs).

The company has filed necessary claims with the insurance authorities and adjustments to the accounts would be effected on completion of assessment and settlement of related claims.

15. Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for one unit of the company from 1997-98 to 2006-07 treated on cash basis and liability for the said period is not ascertained, but from financial year 2007-08 provided on accrual basis.

16. a) The company has received the eligibility certificate from Sales Tax Authorities for the net value of fixed capital assets amounting to Rs.773 lacs and on gross addition to fixed assets amounting to Rs.616 lacs for the period from 1995-1996 to 1999-2000 and pending disposal of company''s appeal for additional eligibility on the basis of gross value of fixed capital assets, an amount of Rs.1,119.57 lacs has been availed by the company on this account upto April, 2000. Adjustment, if any, on this account being currently not ascertainable, shall be considered as and when it arises.

b) Other loans and advances - considered good includes Rs.26.93 lacs where although recoveries are not forthcoming but no provision has been made in the Accounts as the management considers these amounts are recoverable.

17. By an Order passed by the Hon''ble Division Bench of the High Court at Calcutta, six winding-up matters were relegated to Civil Suits for a claim of Rs.319 lacs of the erstwhile promoters of Anglo-India Jute Mills Co Ltd (now AI Champdany Industries Ltd), being the unsecured loan disputed by the Company. As per direction of the High Court, Calcutta, the Company has provided required securities to the satisfaction of the Registrar, Original Side, Calcutta High Court till the disposal of the suits.

Six suits were filed by the erstwhile promoters by their six respective companies. In the said suits a composite decree to the tune of Rs.2.77 crores is passed. Challenging the said decree six appeals are preferred by AI Champdany Industries Limited which are allowed and the cross appeal filed by respondents are dismissed, and the entire claim of the six unsecured creditors have been placed for trial. Written statements in six suits have been filed by the company as per order of the Hon''ble Division Bench of Calcutta High Court. Special Leave Petition (SLP) filed before the Hon''ble Supreme Court by six companies of erstwhile promoters of AIJM against the order passed by the Division Bench of the Hon''ble High Court at Calcutta. Hon''ble Supreme Court dismissed the SLP filed by six companies of erstwhile promoters of AIJM. The suits (six in nos) pending before the Hon''ble High Court at Calcutta for deciding the claim.

18. The Company has obtained possession of its flat at Woodland Syndicate as per the Order of the Court. The Company has filed an Application for final decree for mesne profits for wrongful occupation of the flat, before the Learned Civil Judge, Senior Division, 1st Court at Alipore, 24 Parganas (South), which is pending.

19. During the year 2012-13 Fixed Assets of Rs. 13.86 lacs has been transferred to stock-in-trade in respect of 4.44 acres of land and structure thereon at Beldanga and a flat at Woodland Syndicate.

20. The Company has maintained separate books of account for each of its 100% Export Oriented Weaving Unit at Rishra (de-bonded w e f 25 May 2012), Narayanpur (de-bonded w e f 7 December 2011) and for the Wellington Jute Mills and Yarn Unit at Rishra, Middle Mill, Fine Yarn and Flax Unit at Jagatdal and for the other units at, Konnagar (Weaving), Beldanga, Shalimar, Kankinara at West Bengal and Libra Carpet unit and Yarn unit at Choudwar, Orissa.

21. Previous year''s figures have been rearranged / reclassified / regrouped wherever necessary and to make it in conformatory with the amended Schedule VI to the Companies Act, 1956.

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Mar 31, 2012

1. (Note No.23 of Accounts)

Estimated amount of contract remaining to be executed on capital account not provided for Rs. 193.20 lacs (Previous year Rs. 190.88 lacs).

2. (Note No.24 of Accounts)

(i) Contingent liabilities Rs. 3770.26 lacs (Previous year Rs. 4149.40 lacs).

(ii) Arrears of Cumulative Preference Shares Dividend Rs. 82.63 lacs (previous year Rs.50.38 lacs) including Dividend Distribution Tax Rs. 11.53 lacs (previous year Rs. 7.02 lacs).

3. (Note No.26 of Accounts)

Sale of Jute/Jute diversified Products -59,656 MT, Rs. 34,907.20 lacs (2010-11-52,898 MT, Rs. 30,941.54 lacs), Sale of Flax Products-409 MT, Rs. 1,576.93 lacs (2010-11-718 MT, Rs. 2,319.82 lacs), Sale of Raw Jute-4,504 MT, Rs. 1,146.06- lacs (2010-11-2,027 MT, Rs. 662.14 lacs) and Sale of Flax Fibre-42 MT, Rs. 36.15 lacs (2010-11-31 MT, Rs. 18.01 lacs).

hedging contracts are accounted on the date of their settlement and realised gain/loss in respect of settled contracts are recognised in the Profit and Loss Account, along with the underlying transactions.

4. (Note No.46 of Accounts)

In respect of the fire occurred on 22nd April 2006 and 21st January 2011 at Wellington Jute Mill, Rishra, the final assessment to the damage caused to Assets is yet to be completed by the insurance authorities. Pending such assessments, no adjustment has been made to the accounts to the extent of estimated loss of goods - 1059 MT - Rs. 770.70 lacs (2010-11 - 1059 MT - Rs. 770.70 lacs).

The company has filed necessary claims with the insurance authorities and adjustments to the accounts would be effected on completion of assessment and settlement of related claims.

5. (Note No-47 of Accounts)

Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for one unit of the company from 1997-98 to 2006-07 treated on cash basis and liability for the said period is not ascertained, but from financial year 2007-08 provided on accrual basis.

6. (Note No.48 (a) of Accounts)

The company has received the eligibility certificate from Sales Tax Authorities for the net value of fixed capital assets amounting to Rs. 773 lacs and on gross addition to fixed assets amounting to Rs. 616 lacs for the period from 1995-1996 to 1999-2000 and pending disposal of company's appeal for additional eligibility on the basis of gross value of fixed capital assets, an amount of Rs. 1,119.57 lacs has been availed by the company on this account upto April, 2000. Adjustment, if any, on this account being currently not ascertainable, shall be considered as and when it arises.

7. (Note No.48 (b) of Accounts)

Advances recoverable in cash or kind or value to be' received - considered good includes Rs. 26.93 lacs where although recoveries are not forthcoming but no provision has been made in the Accounts as the management considers these amounts are recoverable.

8. (Note No.53 of Accounts)

As per gratuity actuarial valuation certificate, the "Contribution to Provident Funds and other Funds" for the year 2011-12 is after adjustment of Rs. Nil (2010-11 - Rs. 703.21 lacs) relating to earlier years.

9. Previous year's figures have been rearranged/reclassified/regrouped wherever necessary and to make it in conformatory with the amended Schedule VI to the Companies Act, 1956.

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Mar 31, 2010

1. Contingent liabilities in respect of: Rs. in lacs

Year ended Year ended

31.03.10 31.03.09

a) Bank Guarantees: 1798.05 3111.09

b) Bank Guarantees issued on pledged of shares by other companies 432.54 432.54

c) Claims for Income Tax, Wealth Tax, Commercial Taxes not acknowledged as debt and under appeal 889.29 1019.07

d) Other claims not acknowledged as debt 349.99 344.45

e) Bills drawn on customers and discounted with banks

and advances against collection 311.86 523.31

2. Sale of Jute / Jute diversified Products - 47,790 MT, Rs.22,562.36 lacs (2008-09 - 72,796 MT, Rs.28,596.21 lacs), Sale of Flax Products - 425 MT, Rs.1,073.68 lacs (2008-09 - 454 MT, Rs.1,291.21 lacs), Sale of Raw Jute - 3,327 MT, Rs.809.21 lacs (2008-09 - 5,402 MT, Rs. 797.17 lacs) and Sale of Flax Fibre - Nil MT, Rs. Nil (2008-09 - 20 MT, Rs.12.55 lacs).

3. Jute Carpets / Jute diversified Products have been treated as belonging to the same class as Jute / Jute Diversified Products and accordingly, information relating to Turnover, Capacities and Production of Jute Carpets / Jute diversified Products have been included in note 4 and 5 respectively.

4. Stock of Finished goods of Jute / jute diversified Products (Packed/ unpacked) Opening Stock - 11,212 MT, Rs. 5,019.91 lacs (2008-09 - 15,828 MT, Rs. 5,672.80 lacs) Closing Stock - 10,615 MT, Rs.5,364.32 lacs (2008-09 – 11,212 MT, Rs. 5,019.91 lacs).

Stock of Finished goods of Flax Products (Packed/ unpacked) Opening Stock - 598 MT, Rs. 1,572.04 lacs (2008 09 - 534 MT, Rs. 1,147.64 lacs) Closing Stock - 589 MT, Rs.1,921.21 lacs (2008-09 - 598 MT, Rs. 1,572.04 lacs).

5. Raw material consumed - Jute/Jute yarn - 48,227 MT, Rs.11,218.92 lacs (2008-09 - 62,953 MT, Rs. 10,458.57 lacs)

Flax Fibre - 634 MT, Rs. 717.48 lacs (2008-09 - 665 MT, Rs. 1,079.48 lacs)

6. Purchase of goods includes purchase of jute goods - 2023 MT, Rs.837.07 lacs (2008-09 – 12,020 MT, Rs. 3,378.07 lacs).

7. 100% EOU Narayanpur and Shalimar Units have been closed with due process of law. Operations at 100% EOU Yarn Unit at Konnagar, continued to be under suspension. Working at Yarn Unit and Libra Carpet Unit at Choudwar have been suspended from 28th December 2005 and 1st May 2006 respectively. 100% EOU yarn Unit at Rishra (debonded with effect from 17th December 2009) and Weaving Unit at Rishra were under suspension of work from 30th August 2009 to 8th December 2009 and 6th September 2009 to 11th December 2009 respectively due to labour unrest. There was an industry wide strike from 14th December 2009 to 12th February 2010. Management is of the view that the sale proceeds of the Fixed Assets relating to the Narayanpur, Choudwar and Shalimar Units would not be lower than the amount at they are carried in the books. The carrying values of assets of the cash generating units at Balance Sheet date are reviewed for impairment and management is of the view that there is no impairment exists. This has been relied upon by the Auditors.

8. The Company-s application to the Competent Authority for exemption from the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 is pending approval.

9. As approved by the shareholders at the Annual General Meeting of the company held on 29th July 2008, the face value has been subdivided from one Equity Share of Rs.10/- each into two Equity shares of Rs.5/- each with effect from 19th September 2008.

10. Commodity Hedging Transactions:

In accordance with the policy consistently followed by the company, the outstanding commodity hedging contracts are accounted on the date of their settlement and realised gain / loss in respect of settled contracts are recognised in the Profit and Loss Account, along with the underlying transactions.

11. In respect of the fire occurred on 22nd April 2006 at Wellington Jute Mill, Rishra, the final assessment to the damage caused to Assets is yet to be completed by the insurance authorities. Pending such assessments, no adjustment has been made to the accounts.

The company has filed necessary claim with the insurance authorities and adjustments to the accounts would be effected on completion of assessment and settlement of related claim.

12. Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for one unit of the company from 1997-98 to 2006-07 treated on cash basis and liability for the said period is not ascertained, but from financial year 2007-08 provided on accrual basis.

13. (a) The company has received the eligibility certificate from Sales Tax Authorities for the net value of fixed capital assets amounting to Rs.773 lakhs and on gross addition to fixed assets amounting to Rs.616 lakhs for the period from 1995-1996 to 1999-2000 and pending disposal of company-s appeal for additional eligibility on the basis of gross value of fixed capital assets, an amount of Rs.1,119.57 lakhs has been availed by the company on this account upto April, 2000. Adjustment, if any, on this account being currently not ascertainable, shall be considered as and when it arises.

(b) Advances recoverable in cash or kind or value to be received - considered good includes Rs.26.93 lacs where although recoveries are not forthcoming but no provision has been made in the Accounts as the management considers these amounts are recoverable.

(c) In the opinion of the management, no diminution of permanent nature in the year-end carrying value of investment with Landale & Clark Limited is likely to arise and accordingly no provision is considered necessary.

14. By an Order passed by the Hon-ble Division Bench of the High Court at Calcutta, six winding-up matters were relegated to Civil Suits for a claim of Rs.319 lacs of the erstwhile promoters of Anglo-India Jute Mills Co Ltd (now AI Champdany Industries Ltd), being the unsecured loan disputed by the Company. As per direction of the High Court, Calcutta, the Company has provided required securities to the satisfaction of the Registrar, Original Side, Calcutta High Court till the disposal of the suits.

15. The Company obtained an order passed by the Learned 1st Civil Judge, Senior Division at Alipore, directing Bailiff for handing over the vacant possession of the Companys flat at Woodland Syndicate, to the Company on the score of non-compliance of the order passed by the Honble High Court wherein the decree passed by the Trial Court is under challenge. The process of handing over is still pending owing to resistance (forcefully) by the Judgement-Debtors and/or their men and agents. Company duly filed a miscellaneous proceeding for police help. The exact amount of claim on account of mesne-profit that will be ultimately received in respect of the wrongful occupation of the flat is not ascertainable at this stage and accordingly nothing has been ac- counted for as income in these accounts in respect of the aforesaid claim. Such claim will be accounted for as and when such amount is received by the company.

16. (a) According to Calcutta High Court Order of February, 1987 as modified in February 1988 in connection with pending litigation initiated by Goodricke Group Ltd. against Cosmopolitan Investments Ltd. and others including the company, the company is refrained from transferring the Fixed Assets (except dealing with the said Fixed Assets by creating charges and / or mortgages in favour of Financial Institutions / Nationalized Banks) till disposal of related applications except with the leave of Court. Accordingly, the deed of Conveyance pertaining to the relevant lower Mill‘s assets transferred in October 1986 pursuant to an agreement of sale dated 17th September 1986 is yet to be executed. This matter is sub-judice before the High Court of Calcutta.

(b) Liability for Sales Tax and Raw Jute Tax dues pertaining to the period upto 4th February, 1994 (date of sanction of the Rehabilitation Scheme by BIFR) as finally confirmed in terms of BIFR Order dated 20th July, 1995, was Rs.466 lacs which has been paid by the company as per the Scheme sanctioned by BIFR and agreed by Sales Tax authorities.

17. The Company has maintained separate books of account for each of its 100% Export Oriented units at Rishra(debonded on 17th. December, 2009), Narayanpur and Konnagar (Yarn) and for the Wellington Jute Mills at Rishra, Middle Mill, Fine Yarn and Flax Unit at Jagatdal and for the other units at, Konnagar (Weaving), Beldanga, Shalimar, Kankinara at West Bengal and Libra Carpet unit and Yarn Unit at Choudwar, Orissa.

18. The name of the company had been changed with the consent of the Central Government, from Anglo India Jute Mills Company Limited to AI Champdany Industries Limited with effect from 19th May, 2005.