Notes to Accounts of Indo Cotspin Ltd.

2.12 Contingent liabilities and provisions

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company
or a present obligation that is not recognised because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognised because it cannot be measured reliably.

A disclosure is made for a contingent liability when there is a:

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or
more uncertain events, not fully with in the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will
be required to settle the obligation;

c) present obligation, where a reliable estimate cannot be made.

A provision is recognised when the Company has a present obligation as a result of past events, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Provisions are not disclosed to their present value and

are determined based on best estimates required to settle the obligation at the reporting date. These estimates
are reviewed at each reporting date and are adjusted to reflect the current best estimates.

2.13 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

2.14 Cash, Cash Equivalents and Bank Balances

Cash, Cash Equivalents and Bank Balances for the purpose of Cash Flow Statement comprise Cash at Bank,
Cash in Hand, Cheques / Drafts in Hand, Deposits with Bank within 12 months maturity and other permissible
instruments as per Accounting Standard AS-3.

2.15 Borrowing Cost:

Borrowing Cost attributable to the acquisition or construction of a qualifying asset is capitalized as part of the
cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

2.16 Segment Information:

Based on the principles for determination of segments given in Accounting Standard 17 “Segment Reporting”
issued by accounting standard notified by Companies (Accounting Standard) Rules, 2008, the Company is
mainly engaged in the activity surrounded with main business of the Company hence there is no reportable
segment.

2.17 Prior Period Expenditure:

The change in estimate due to error or omission in earlier period is treated as prior period items. The items in
respect of which liability has arisen/crystallized in the current year, though pertaining to earlier year is not
treated as prior period expenditure.

2.18 Extra Ordinary Items:

The income or expenses that arise from event or transactions which are clearly distinct from the ordinary
activities of the Company and are not recurring in nature are treated as extra ordinary items. The extra ordinary
items are disclosed in the statement of profit and loss as a part of net profit or loss for the period in a manner
so as the impact of the same on current profit can be perceived.

2.12 Contingent liabilities and provisions

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably.

A disclosure is made for a contingent liability when there is a:

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully with in the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;

c) present obligation, where a reliable estimate cannot be made.

A provision is recognised when the Company has a present obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not disclosed to their present value and

are determined based on best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and are adjusted to reflect the current best estimates.

2.13 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

2.14 Cash, Cash Equivalents and Bank Balances

Cash, Cash Equivalents and Bank Balances for the purpose of Cash Flow Statement comprise Cash at Bank, Cash in Hand, Cheques / Drafts in Hand, Deposits with Bank within 12 months maturity and other permissible instruments as per Accounting Standard AS-3.

2.15 Borrowing Cost:

Borrowing Cost attributable to the acquisition or construction of a qualifying asset is capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

2.16 Segment Information:

Based on the principles for determination of segments given in Accounting Standard 17 “Segment Reporting” issued by accounting standard notified by Companies (Accounting Standard) Rules, 2008, the Company is mainly engaged in the activity surrounded with main business of the Company hence there is no reportable segment.

2.17 Prior Period Expenditure:

The change in estimate due to error or omission in earlier period is treated as prior period items. The items in respect of which liability has arisen/crystallized in the current year, though pertaining to earlier year is not treated as prior period expenditure.

2.18 Extra Ordinary Items:

The income or expenses that arise from event or transactions which are clearly distinct from the ordinary activities of the Company and are not recurring in nature are treated as extra ordinary items. The extra ordinary items are disclosed in the statement of profit and loss as a part of net profit or loss for the period in a manner so as the impact of the same on current profit can be perceived.

1.1 Provision for Taxation of Rs.1,64,998.00 for the financial year 2014-15 represents Income Tax computed as per, MAT prescribed under the Income Tax Act, 1961.

1.2 Based on the given by the with the company , in respect of MSME (as defined in the Micro Small & Medium Enterprises Development Act, 2006) there are no outstanding payments to such companies at the end of the year. This has been relied upon by the auditor.

1.3 In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated, if realised, in the ordinary course of business.

1.4 Additional Information, where applicable, pursuant to the provisions of Schedule VI of the Companies Act, 1956, is as under :

A. Licensed CapacityThe Company is not required to obtain License under the Industrial Development & Regulation Act, 1951 as informed by the management; therefore the said details are not applicable.

B. Installed Capacity The said details are not applicable.

Notes to Accounts Forming Integral Part of the Balance Sheet as at 31st March, 2014.

1. Provision for Taxation of Rs.31,69,900.00 for the financial year 2013-14 represents Income Tax computed as per, MAT prescribed under the Income Tax Act, 1961.

2. Based on the given by the with the company , in respect of MSME (as defined in the Micro Small & Medium Enterprises Development Act, 2006) there are no outstanding payments to such companies at the end of the year. This has been relied upon by the auditor.

3. In the opinion of the Board, the Current Assets, Loans &Advances are approximately of the value stated, if realised, in the ordinary course of business.

4. Related party disclosures for the year ended 31st March, 2014.

a) Particulars Year Ended Year Ended 31st March, 2014 31st March, 2013

1 Key Management Personnel Sh. Bal Krishan Sh. Bal Krishan Aggarwal Aggarwal

Sh. Raj Pal Sh. Raj Pal Aggarwal Aggarwal

Mr. Arpan Mr. Arpan Aggarwal Aggarwal

Mr. Sanil Aggarwal Mr. Sahi Aggarwal

Mr. Sahi Aggarwal

2 Relative of Key Management Personnel Nil Nil

3 Enterprise that directly indirectly through one or more intermediaries control or controlled by. or uner common control with, the company. Nil Nil

4 Associate company Indo non Women Pvt. Indo non Women Ltd. Pvt. Ltd.

5 Members of their relative having significant influence cover the company by having an interest in the voting powe of the company. Nil Nil

6 Enterprise in which substained interest in the voting power is owned directlyindirectly by the key personnel or thier relatives including directors and senior management of the company. Nil Nil

1. The Company has only one class of Equity Share having Par Value of Rs. 10 Per Share and Each Shareholder is eligible for One Vote Per Share.

9,99,000 Forfeited Shares, were re-issued during the year at a premium Rs. 5 Each.

2. Provision for Taxation of Rs. 1,34,827.00 for the financial year 2012-13 represents Income Tax computed as per, MAT prescribed under the Income Tax Act, 1961.

3. Based on the given by the with the company , in respect of MSME (as defined in the Micro Small & Medium Enterprises Development Act, 2006) there are no outstanding payments to such companies at the end of the year. This has been relied upon by the auditor.

4. In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated, if realised, in the ordinary course of business.

5 A. Licensed Capacity

The Company is not required to obtain License under the Industrial Development & Regulation Act, 1951 as informed by the management; therefore the said details are not applicable.

B. Installed Capacity

The said details are not applicable.

C. Earnings in Foreign Currency -Nil

D. Amount remitted during the year in foreign currency on dividends and number of non-resident Shareholders - Nil.

1 a) Working Capital Loan from Union Bank of India is secured by mortgage and personal gurantee of the directors.

b) The Company has a sanctioned limit of Rs. 4800000, however the limit is not availed by the Co. rather having credit balance in their account.

c) The loan is payable on demand.

AS AT AS AT 31.03.2012 31.03.2011

2 CONTINGENT LIABLITIES AND COMMITMENTS NIL NIL