Notes to Accounts of Everlon Financials Ltd.

Mar 31, 2015

1 SHARE CAPITAL

a) Rights and Restrictions of the Equity Shares holders

Following are the rights attached to 30273600 equity shares;

(I) Rights to receive dividend as may be approved by the Board/Annual General Meeting

(II) Rights to attend the Annual General Meeting of the Company and right to vote

Apart from the above, the Equity shares rank pari passu and are subject to the rights, preference and restrictions under the companies Act.

b) There are Nil number of shares (Previous year Nil) in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or subsidiary or assoicates of the holding company or the ultimate holding company in aggregate

c) There are Nil number of shares (Previous year Nil) reserved for issue under option and contracts/ commitment for the sale of shares/disinvestment inclusing the terms and amounts.

d) There are no securities (Previous year no)convertible into Equity/Preferential Shares,

e) There are no calls unpaid (Previous year no) including calls unpaid by Directors and Officers as on balance sheet date,

f) There is no change in number of shares outstanding at the beginning and at the end of the year,

02. Segement Results

During the year Company has only one reportable segment, i.e. manufacturing of Polyester Texturised & Twisted yarn. Hence separate segment report as required under accounting standard 17 is not presented.

03. Related Party Disclosures ( As identified by the Management)

i). Related Party Relationships

(a) Where control exists 1) Everest Yarn Agency Pvt.Ltd

2) Teekay International

(b) 100% Subsidiary NIL

(c) Key Management Personnel Mr. Jitendra K. Vakharia

Mrs.Varsha J. Vakharia

(d) Relative of Key Management Nil Personnel

(e) Other related Parties Nil

04. The Company has not recognised "Deferred Tax Assets" as required by Accounting Standard 22. Accounting for Taxes on Income" issued by Institute of Chartered Accountants of India as Company is not certain that sufficient taxable income will be available against which such "Deferred Tax Assets" can be realised.

05. a) The amount shown in Trade Payable, and Discount Receivables from Sundry Creditors under various heads are subject to confirmations.

b) The amount shown under Trade receivable under various heads are subject to confirmation.

06. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the same value as stated in the Balance Sheet if realised in the ordinary course of business.

07. There are no Micro, Small and Medium Enterprises, as defined in Mircro, Small, Medium Enterprises Development Act, 2006 to whom the Company owes on account of principal amount together with interest and accordingly no additional disclosures have been made.

08. Previous year''s figures have been regrouped, rearranged or recast wherever considered necessary, so as to make them comparable with current year figures.

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Mar 31, 2014

01. Segement Results

During the year Company has only one reportable segment, i.e. manufacturing of Polyester Texturised & Twisted yarn. Hence separate segment report as required under accounting standard 17 is not presented.

02. Related Party Disclosures (As identified by the Management) i). Related Party Relationships

(a) Where control exists 1) Everest Yarn Agency Pvt.Ltd

2) Vakharia Power Infrastructure Ltd.

(b) 100% Subsidiary NIL

(c) Key Management Personnel Mr. Jitendra K. Vakharia

Mrs.Varsha J. Vakharia

(d) Relative of Key Management Personnel Nil le) Other related Parties ii Nil

03. The Company has not recognised "Deferred Tax Assets" as required by Accounting Standard 22. Accounting for Taxes on Income" issued by Institute of Chartered Accountants of India as Company is not certain that sufficient taxable income will be available against which such "Deferred Tax Assets" can be realised.

04. a) The amount shown in Trade Payable, and Discount Receivables from Sundry Creditors under various heads are subject to confirmations.

b) The amount shown under Trade receivable under various heads are subject to confirmation

05. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the same value as stated in the Balance Sheet if realised in the ordinary course of business.

06. Contingent Liabilities: -

Excise Duty claim not acknowledged as Debt Rs.4,45,40,268/- (Previous Year Rs.4,45,40,268/-)

07. There are no Micro, Small and Medium Enterprises, as defined in Mircro, Small, Medium Enterprises Development Act, 2006 to whom the Company owes on account of principal amount together with interest and accordingly no additional disclosures have been made.

08 Previous year''s figures have been regrouped, rearranged or recast wherever considered necessary, so as to make them comparable with current year figures.

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Mar 31, 2013

1. Segement Results

During the year Company has only one reportable segment, i.e. manufacturing of Polyester Texturised & Twisted yarn. Hence separate segment report as required under accounting standard 17 is not presented.

2. Related Party Disclosures ( As identified by the Management)

1. Related Party Relationships

(a) Where control exists Everest Yarn Agency Pvt.Ltd

Vakharia Power Infrastructure Ltd

(b) 100% Subsidiary Nil

(c) Key Management Personnel Mr. Jitendra K. Vakharia

Mrs. Varsha J. Vakharia

(d) Relative of Key Management Personnel Nil

(e) Other related Parties Nil

3. The Company has not recognised "Deferred Tax Assets" as required by Accounting Standard 22. Accounting for Taxes on Income" issued by Institute of Chartered Accountants of India as Company is not certain that sufficient taxable income will be available against which such "Deferred Tax Assets" can be realised.

4. In terms of order dated 14th September 2012, Appointed date 01/09/2011 (effective date 18th October 2012) passed by Hon''ble Bombay High Court, approving Scheme of Arrangement for demerger of investment business of the company into Vakharia Power Infrastructure Ltd., the company has effected the following :- a) The Company has reorganized / restructured its subscribed and paid up share capital by effecting reduction of 40% of its share capital. The subscribed and paid up share capital now stands at 3,02,73,600 equity shares of Re.1/- each.

b) The face value of the equity share has been changed from Rs.10/- per equity share to Re.1/- equity share fully paid-up.

c) To give effect to the aforesaid Hon''ble Bombay High Court order, the company has passed necessary accounting entries for transfer of investment business of the company into Vakharia Power Infrastructure Ltd., as per applicable accounting standards.

d) Vakharia Power Infrastructure Ltd., has ceased to be subsidiary of the company w.e.f. 23/11/2012 due to allotment of equity shares by Vakharia Power Infrastructure Ltd., to the members of the company.

5. a) The amount shown in Trade Payable, and Discount Receivables from Sundry Creditors under various heads are subject to confirmations.

b) The amount shown under Trade receivable under various heads are subject to confirmation.

6. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the same value as stated in the Balance Sheet if realised in the ordinary course of business.

7. Contingent Liabilities : -

Excise Duty claim not acknowledged as Debt Rs.4,45,40,268/- (Previous Year Rs.4,45,40,268/-)

8. There are no Micro, Small and Medium Enterprises, as defined in Mircro, Small, Medium Enterprises Development Act, 2006 to whom the Company owes on account of principal amount together with interest and accordingly no additional disclosures have been made.

9. Previous year''s figures have been regrouped, rearranged or recast wherever considered necessary, so as to make them comparable with current year figures.

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Mar 31, 2012

1. Segement Results

During the year Company has only one reportable segment, i.e. manufacturing of Polyester exturised & Twisted yarn. Hence separate segment report as required under accounting standard 17 is not presented.

2. Sundry debtors and creditors are subject to confirmation

3. Previous year's figures have been regrouped, rearranged or recast wherever considered necessary, so as to make them comparable with current year figures.

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Mar 31, 2010

01. Segement Results

During the year Company has only one reportable segment, i.e. manufacturing of Polyester Texturised & Twisted yam. Hence separate segment report as required under accounting standard 17 is not presented.

02. Related Party Disclosures (As identified by the Management) 1. Related Party Relationships

(a) Where control exists Everest Yam Agency Pvt.Ltd

(b) Key Management Personnel Mr. Jitendra K. Vakharia

(c) Relative of Key

Management Personnel Mrs. Varsha J. Vakharia

(d) Other related Patties Nil

03. The Company has not recognised "Deferred Tax Assets" as required by Accounting Standard 22. Accounting for Taxes on Income" issued by Institute of Chartered Accountants of India as Company is not certain that sufficient taxable income will be available against which such "Deferred Tax Assets" can be realised.

04. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the same value as stated in the Balance Sheet if realised in the ordinary course of business.

05. Contingent Liabilities:-

1) On Partly paid equity shares Rs.50.000/- (Previous Year Rs.50,000/-)

2) Excise Duty claim not acknowledged as Debt Rs. 445.40 Lacs (Previous Year Rs.445.40 Lacs)

3) Income Tax demand raised by Income Tax Department for various years Rs.Nil (previous years Rs.207.59 lacs).

06. There are no Micro, Small and Medium Enterprises, as defined in Micro, Small, Medium Enterprises Development Act, 2006 to whom the Company owes on account of principal amount together with interest and accordingly no additional disclosures have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

07. The information required under paragraph 3 & 4 of part II of Schedule VI of Companys Act 1956 (As certified by the management) to the extent applicable are as under.

A) Licensed & Installed Capacity

I) Licensed Capacity

a) DadraUnit

The company has obtained Registration from Department of Industrial Development, Secretariat for Industrial Approvals, Entrepreneurial Assistance Unit of Ministry of Industry Government of India for: Manufacture of 4140 tons of Polyester Texturised Yam and Polyester Twisted Yam.

II) Installed Capacity:-

a) DadraUnit

I) Two Draw Texturising Machine of 312 spindles each (Previous Year Two Draw Texturising Machines of 312 spindles each) having a capacity of 2160 tons per annum.

II) Four Twisting Machines of 360 spindles each. (Previous Year four twisting machines) having a capacity of 80 Denier/300 TPM - 240 tons per annum.

Note: Installed capacities are certified by management and relied upon the Auditor without verification same being a technical matter.

08. Sundry debtors and creditors are subject to confirmation

09. Previous years figures have been regrouped, rearranged or recast wherever considered necessary, so as to make them comparable with current year figures.

10. The information required under PART-IV of schedule VI of Companies Act, 1956 (As certified by the management) to the extent applicable are as under:

V. Generic Names of Principal Products (as per monetary terms) Item Code No. 540242 (ITC Code) Product Descripation Polyester Texturised Yam and PolyesterTwisted Yam