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Notes to Accounts of Mahalaxmi Rubtech Ltd.

Mar 31, 2018

(a) Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts, in proportion of their shareholding.

However, no such preferential amounts exist currently.

(b) Aggregate number of shares issued for consideration other than cash:

Equity Shares include 1034775 shares of Rs. 10 each issued as fully paid up Bonus Shares and 3646400 shares of Rs. 10 each issued pursuant to a scheme of amalgamation of erstwhile Mahalaxmi Fabric Mills P Ltd. with the company without payment received in cash

Term Loans:

1 Rupee Term loan from Bank of Baroda of Rs. 53.73 lacs (P.Y. Rs. 108.81 lacs) secured by way of hypothecation of stock, book debts, plant & machineries & other movables and equitable mortgage of land and buildings and further secured by personal guarantee of promoter directors and repayable in 60 monthly installments commencing from September, 2014. Last installment due in March, 2019.

2 Rupee term loan from Bank of Baroda amounting to Rs. NIL ( P.Y 56.40 lacs) secured by way of hypothecation of stock, book debts, plant & machineries & other movables and equitable mortgage of land and buildings and further secured by personal guarantee of promoter directors and repayable in 60 monthly installments commencing from April, 2014. Last installment due in March, 2018.

3 Rupee term loan from Bank of Baroda amounting to Rs. 274.34 lacs ( P.Y Rs. 363.38 lacs) secured by way of hypothecation of stock, book debts, plant & machineries & other movables and equitable mortgage of land and buildings and further secured by personal guarantee of promoter directors and repayable in 60 monthly installments commencing from May, 2016. Last installment due in April, 2021.

4 Rupee term loan from Bank of Baroda amounting to Rs.334.10 lacs ( P.Y Rs. 274.28 lacs) secured by way of hypothecation of stock, book debts, plant & machineries & other movables and equitable mortgage of land and buildings and further secured by personal guarantee of promoter directors and repayable in 60 monthly installments commencing from June, 2017. Last installment due in May, 2022.

5 Rupee term loan from Bank of Baroda amounting to Rs.477.41 lacs ( P.Y Rs. Nil) secured by way of hypothecation of stock, book debts, plant & machineries & other movables and equitable mortgage of land and buildings and further secured by personal guarantee of promoter directors and repayable in 60 monthly installments commencing from May, 2018. Last installment due in April, 2023.

6 Rupee term loan from Bank of Baroda amounting to Rs.123.85 lacs ( P.Y Rs. Nil lacs) secured by way of hypothecation of stock, book debts, plant & machineries & other movables and equitable mortgage of land and buildings and further secured by personal guarantee of promoter directors and repayable in 60 monthly installments commencing from April, 2018. Last installment due in March 2023.

Vehicle Loans

1 Vehicle Loan from HDFC Bank amounting to Rs. Nil (P.Y.0.96 Lacs) secured by way of hypothecation of Motor Truck and repayable in 36 monthly installments commencing from November, 2014. Last installment due in October, 2017.

2 Vehicle Loan from HDFC Bank amounting to Rs. Nil (P.Y.1.14 Lacs) secured by way of hypothecation of Motor Truck and repayable in 36 monthly installments commencing from September, 2014. Last installment due in August, 2017.

3 Vehicle Loan from HDFC Bank amounting to Rs. Nil (P.Y.5.08 Lacs)secured by way of hypothecation of Staff Bus and repayable in 36 monthly installments commencing from March, 2015. Last installment due in February, 2018.

4 Vehicle Loan from Voxswagen Finance P.Ltd. amounting to Rs. 2.98 lacs (P.Y14.39 Lacs) secured by way of hypothecation of Motor Car repayable in 36 monthly installments commencing from July, 2015. Last installment due in June, 2018.

5 Vehicle Loan from HDFC Bank amounting to Rs. 5.70 lacs (P.Y.9.53 Lacs) secured by way of hypothecation of Motor Car Repayable in 36 monthly installments commencing from August 2016. Last installment due in July, 2019

6 Vehicle Loan from AXIS Bank amounting to Rs. 64.50 lacs (PYNil) secured by way of hypothecation of Motor Car Repayable in 60 monthly installments commencing from April 2018. Last installment due in March, 2022

Details of securities for working capital borrowings Cash Credit and Foreign Bills Purchase facilities are secured by way of hypothecation of stock, book debts, plant & machineries & other movables and equitable mortgage of land and buildings and further secured by personal guarantee of promoter directors and overdraft is secured by way of pledge of fixed receipts of the company.

1. First-time adoption of Ind-AS

These financial statements are the first set of Ind AS financial statements prepared by the Company. Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ending on 31 March 2018, together with the comparative year data as at and for the year ended 31st March 2017, as described in the significant accounting policies. The transition to Ind AS has been carried out in accordance with Ind AS 101- “First time adoption of Indian Accounting Standards” with 1st April, 2016 as the transition date.

This note explains the exemptions availed by the company on first time adoption of Ind As and the principal adjustment made by the company in restating its Indian GAAP financial statements as at 1st April 2016 and financial statements as at and for the year ended 31st March 2017 in accordance with Ind AS 101.

Exemptions applied

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

a) The company has elected to consider carrying amount of all items of property, plant and equipments measured as per Indian GAAP as recognized in the financial statements as at the date of transition, as deemed cost as the date of transition. The effect of consequential changes arising on the application of other Ind AS has been adjusted to the deemed cost of property, plant & Equipment.

b) The Company has availed the exemption of fair value measurement of financial assets or liabilities at initial recognition and accordingly will apply fair value measurement of financial assets or liabilities at initial recognition prospectively to transactions entered into on or after 1st April 2016.

c) The estimates at 1st April 2016 and 31st March, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items under Indian GAAP did not require estimation :

i) Fair values of Financial Assets & Financial Liabilities

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at 1st April,2016 and 31st March,2017.

Notes to the reconciliation of equity as at 1st April,2016 and 31st March,2017 and Total comprehensive Income for the year ended 31st March,2017.

i. Leasehold land

Under Indian GAAP, land on lease was not covered under ‘leases’ and therefore it was shown as Tangible assets. Under Ind AS, land on lease is considered as operating lease. Therefore, net block of leasehold land has been re-classified under the head “ other non current assets” and “ Other current assets” as’ Leasehold land’ further the amortization of leasehold payment for the year ended 31st March 2017 has been reclassified from Depreciation and amortization’ to ‘Other expenses’. However, the same has no impact on the total equity as at 31st March,2017.

ii. Fair value of Investments

Under Indian GAAP, investments in equity instruments are classified as long term investments based on the intended holding period and realizability . Long term investments were carried at cost less provision for other than temporary diminution in the value of investments. Ind AS requires such investments to be measured at fair value except investment in subsidiaries, associates and joint venture for which exemption has been availed. Accordingly, the Company has designated such investments as investment measured at FVTOCI cost in accordance with Ind AS. The difference between the instruments fair value and carrying amount as per Indian GAAP has been recognized in fair value measurement through OCI

iii. Financial instruments measured at amortized cost :

Under Indian GAAP, interest free Loan to employees are recorded at their transactions value. Under Ind AS, these loans are to be measured at amortized cost on the basis of effective interest rate method. Due to this, loans to employees has been decreased and difference between carrying amount and amortized cost has been recognized as Deferred employee cost’ under the head other ‘Non-current assets’ and ‘Other Current Assets’ Further, Employee benefit expense has been increased due to amortization of the deferred employee benefit which is offset by the notional interest income on loan to employee

iv. Defined benefit obligation

Under Ind AS remeasurements i.e. actuarial gains and losses are to be recognized in “ other comprehensive income” and are not to be reclassified to profit and loss in a subsequent period. Under the Indian GAAP, these remeasurements were forming part of the profit or loss . Therefore, actuarial gain / loss has been recognized in OCI which was earlier recognized as Employee benefits expenses. However, the same has no impact on the total equity.

v. Deferred Tax

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

Accordingly, deferred tax adjustments have been recognized in correlation to the underlying transaction in retained earning /OCI in accordance with Ind AS.

vi. Statement of Cash Flows

The transition from Indian GAAP to Ind AS has not had a material impact on statement of cash flows.

(b) Fair Value Measurement

(i) Fair Value hierarchy

Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2- Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e.as prices) or indirectly (i.e. derived from prices)

Level 3- Input for the assets or liabilities that are not based on observable market data (unobservable inputs)

2 Amortisation of Intangible assets

Commercial Right to use effluent treatment pipeline and CETP has been amortised @ 10% on straight line basis as the useful life thereof has been estimated to be not more than 10 years.

3 During the year the Company has received an amount of Rs.5,06,25,000 towards allotment of 1500000 equity shares upon conversion of 1500000 warrant made in the month of October 2017 on completion of required formalities (Refer Note 15). As per the objects of the preferential allotment, the end use of the funds raised is towards meeting of long term working capital requirement and capital expenditure for ongoing expansion of the company. The amounts raised is being applied by the Company during the year for the purposes for which the funds were raised, other than temporary deployment pending utilisation.

4 Based on review carried out as on 31.03.2018, no impairment loss is required to be provided for as per Accounting Standard 28 on “Impairment of Assets”.

5 The Disclosures as required to be made relating to Micro, Small and Medium Enterprise under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME) are not furnished in view of the non availability of the relevant information with the company from all such enterprises. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material.

6 Related Party Transactions:

As per Accounting Standard 18, Related Party Disclosure is as under:

(a) List of Related Parties with whom transactions have taken place during the year and relationship:

Name of the Related Party Relationship

Globale Tessile Private Limited Subsidiary

Shah Jeetmal Champalal Associate

Mahalaxmi Cal Chem Pvt. Ltd Associate

Anand Chem Industries Pvt. Ltd. Associate

Mahalaxmi Exports Associate

Rahul Textile Associate

Jeetmal B Parekh Key Managerial Personnel

Rahul J Parekh Key Managerial Personnel

Anand J. Parekh Key Managerial Personnel

7 Financial Risk Management

The principal financial assets of the Company include loans, trade and other receivables, and cash and bank balances that derive directly from its operations. The principal financial liabilities of the company, include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks and that advises on financial risks and the appropriate financial risk governance framework for the Company.

This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these risks:

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: foreign currency risk, interest rate risk, investment risk.

(i) Foreign currency risk

The company operates internationally and business is transacted in several currencies.

The export sales of company comprise around 11% of the total sales of the company, Further the company also imports certain assets and material from outside India. The exchange rate between the Indian rupee and foreign currencies has changed substantially in the future. Consequently the company is exposed to foreign currency risk and the results of the company may be affected as the rupee appreciates/ depreciates against foreign currencies. Foreign exchange risk arises from the future probable transactions and recognized assets and liabilities denominated in a currency other than company’s functional currency.

The company measures the risk through a forecast of highly probable foreign currency cash flows and manages its foreign currency risk by appropriately hedging the transactions. The Company uses a derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

The following table summarizes the company’s exposure foreign currency risk from financial instruments at the end of each reporting period:

Foreign Currency Risk Sensitivity

The impact on the Company’s profit before tax due to changes in the fair value of monetary assets and liabilities including foreign currency derivatives on account of reasonably possible change in USD and Euro exchange rates (with all other variables held constant) will be as under:

(ii) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates.

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates, which are included in interest bearing loans and borrowings in these financial statements. The company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

At the reporting date the interest rate profile of the Company’s interest bearing financial instrument is at its fair value: Exposure to Interest Rate risk

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:

(iii) Investment Risk

The company is exposed to equity price risk arising from equity investments.

The company manages equity price risk by investing in fixed deposits/Fixed Maturity Plans. The company does not actively trade equity investments. Protection principle is given high priority by limiting company’s investments to fixed deposits/Fixed Maturity plans only.

Liquidity Risk

The financial liabilities of the company, other than derivatives, include loans and borrowings, trade and other payables. The company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The company monitors its risk of shortage of funds to meet the financial liabilities using a liquidity planning tool. The company plans to maintain sufficient cash and deposits to meet the obligations as and when fall due.

The below is the detail of contractual maturities of the financial liabilities of the company at the end of each reporting period:

Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Credit risk on cash and bank balances is limited as the company generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies. Investments primarily include investment in liquid mutual fund units, bonds, fixed maturity plan etc. issued by institutions having proven track record. The Company’s credit risk in case of all other financial instruments is negligible.

The company assesses the credit risk for the overseas customers based on external credit ratings assigned by credit rating agencies. The company also assesses the creditworthiness of the customers internally to whom goods are sold on credit terms in the normal course of business. The credit limit of each customer is defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to overseas customers are generally covered by ECGC.

The impairment analysis is performed on client to client basis for the debtors that are past due at the end of each reporting date. The company has not considered an allowance for doubtful debts in case of trade receivables that are past due but there has not been a significant change in the credit quality and the amounts are still considered recoverable.

The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables as disclosed at Note 8 Write off policy

The financial assets are written off, in case there is no reasonable expectation of recovering from the financial asset.

8 Capital Management

The capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the company’s capital management is to maintain optimum capital structure to reduce cost of capital and to maximize the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.

The Company’s gearing ratio was as follows:

Further, there have been no breaches in the financial covenants of any interest-bearing loans and borrowing during the year ended 31st March 2018 and 31st March 2017. There were no changes in the objectives, policies or processes for managing capital during the year ended 31 March 2018 and 31 March 2017.

9 General Information

Mahalaxmi Rubtech Limited (the “Company”) is a listed public limited company domiciled in India and was incorporated on 25th September, 1991 under the provisions of the Companies Act, 1956 applicable in India. Its registered office is located at 47, New Cloth market , Ahmedabad. The Company is primarily engaged in the business of manufacturing of traditional textile and technical textiles products.


Mar 31, 2016

NOTE: 1 The power cost is net of value of captively consumed units of wind mill.

NOTE: 2 The Disclosures as required to be made relating to Micro, Small and Medium Enterprise under the Micro,Small and Medium Enterprises Development Act, 2006 (MSME) are not furnished in view of the non avaibility of the relevant information with the company from all such enterprises. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material.

NOTE: 3 The Company has export obligation to the extent of Rs. 11.98 Crores on account of concessional rate of custom duty availed under EPCG license Scheme on import of capital goods.

NOTE: 4 Based on review carried out as on 31.03.2016, no impairment loss is required to be provided for as per Accounting Standard 28 on “Impairment of Assets”.

NOTE: 5 In the opinion of the management the balances of sundry debtors, loans and advances have approximately the same realizable value as shown in the accounts.

NOTE: 6 During the year the face value of equity shares were consolidated from Rs. 1/- each to Rs. 10/- each by consolidating 10 (ten) equity shares of Rs. 1 /-into 1 (one) equity share of Rs. 10/- each.

NOTE: 7 Previous year figures have been regrouped, rearranged or reclassified , wherever necessary, to make them comparable with the current year figures.


Mar 31, 2015

NOTE: 1. THE DETAILS OF CONTINGENT LIABILITIES AND COMMITMETS

AS AT AS AT Particulars (TO THE EXTENT NOT PROVIDED FOR): March 31, 2015 March 31 2014

A Contingent Liabiities:

1 Outstanding Bank Guarantee 81.64 34.00

2 Outstanding of Letter of Credit 5.15 5.38

3 Disputed Excise Duty and service tax Liability 12.07 12.07

4 Disputed Income Tax Liability 1.61 14.88

5 Claims against suits filed and not acknowledged as debts by the company 36.38 23.40

B Commitments:

1 Estimated amount of capital contacts covered by Letter of Credit remaining to be executed on capital accountand not provided for (Net of Advances) 240.58 22.51

TOTAL 377.43 112.24

NOTE: 2 The power cost is net of value of captively consumed units of wind mill.

NOTE: 3 The Disclosures as required to be made relating to Micro, Small and Medium Enterprise under the Micro,Small and Medium Enterprises Development Act, 2006 (MSME) are not furnished in view of the non avaibility of the relevant information with the company from all such enterprises. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material.

NOTE: 4 The Company has export obligation to the extent of Rs.12.51 Crores on account of concessional rate of custom duty availed under EPCG licence Scheme on import of capital goods.

NOTE: 5 Based on review carried out as on 31.03.2015, no impairment loss is required to be provided for as per Accounting Standard 28 on "Impairment of Assets".

NOTE: 6 In the opinion of the management the balances of sundry debtors, loans and advances have approximately the same realisable value as shown in the accounts.

NOTE: 7 Consequent to the introduction of Schedule II of the Companies Act,2013, the management has decided to adopt the useful life as suggested in Part C of Schedule II of the Companies Act with effect from 1st April,2014 for all its fixed assets. Accordingly depreciation for the year is lower by Rs.19.53 lakhs for the year ended 31st March,2015. As per the transitional provision, depreciation of Rs.4.46 lakhs has been adjusted against retained earnings.

NOTE: 8 Previous year figures have been regrouped, rearranged or reclassified , wherever necessary, to make them comparable with the current year figures.


Mar 31, 2014

1. SHARE CAPITAL

The Company has only one class of equity shares having a par value of Re. 1 per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts, in proportion of their shareholding. However, no such preferential amounts exist currently.

2. CONTIGENT LIABLITIES

THE DETAILS OF CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

Particulars AS AT AS AT March 31, 2014 March 31, 2013 Rs. Rs.

A Contingent Liabilities:

1 Bank Guarantee and Letter of Credit (Net of Advance) 39.38 93.58

2. Textile Cess 17.06 17.06

3. Disputed Excise Duty and service tax Liability 12.07 9.98

4. Disputed Income Tax Liability 14.88 14.88

5. Claims against suits filed In Labour Courts not acknowledged by the company 16.58 15.33

6. Claims against suits by others not acknowledged by the company 6.82 6.82

B Commitments:

1 Estimated amount of capital contacts remaining to be executed on capital account and not provided for (Net of Advances) 22.51 11.99

TOTAL 129.30 169.64

3 RELATED PARTY TRANSACTIONS:

As per Accounting Standard 18, Related Party Disclosure is as under:

(a) List of Related Parties with whom transactions have taken place during the year and relationship:

Name of the Related Party Relationship Shah Jeetmal Champalal Associate

Mahalaxmi Cal Chem Pvt. Ltd Associate

Anand Chem Industries Pvt. Ltd. Associate

Mahalaxmi Exports Associate

Rahul Textile Associate

Jeetmal B Parekh Key Managerial Personnel

Rahul J Parekh Key Managerial Personnel Anand J. Parekh Key Managerial Personnel

4. The power cost is net of value of captively consumed units of wind mill.

5. The Disclosures as required to be made relating to Micro, Small and Medium Enterprise under the Micro,Small and Medium Enterprises Development Act, 2006 (MSME) are not furnished in view of the non avaibility of the relevant information with the company from all such enterprises. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material.

6. The Company has export obligation to the extent of Rs.12.53 Crores on account of concessional rate of custom duty availed under EPCG license Scheme on import of capital goods.

7. Based on review carried out as on 31.03.2014, no impairment loss is required to be provided for as per Accounting Standard 28 on "Impairment of Assets".

8. In the opinion of the management the balances of sundry debtors, loans and advances have approximately the same realisable value as shown in the accounts.

9. Previous year figures have been regrouped, rearranged or reclassified, wherever necessary, to make them comparable with the current year figures.


Mar 31, 2013

NOTE: 1. THE DETAILS OF CONTINGENT LIABILITIES AND COMMITMENTS

AS AT AS AT (TO THE EXTENT NOT PROVIDED FOR): March 31, 2013 March 31, 2012 Rs. Rs.

A Contingent Liabilities:

1 Bank Guarantee 93.58 43.38

2 Textile Cess 17.06 17.06

3 Disputed Excise Duty Liability 9.98 9.98

4 Disputed Income Tax Liability 14.88 14.88

5 Claims against suits filed In Labour Courts not acknowledged by the company 15.33 15.33

6 Claims against suits by others not acknowledged by the company 6.82 13.78

B Commitments:

1 Estimated amount of capital contacts remaining to be executed on capital 11.99 311.66

account and not provided for (Net of Advances)

TOTAL 169.64 426.07

NOTE: 2. The power cost is net of value of captively consumed units of wind mill.

NOTE: 3. The Disclosures as required to be made relating to Micro, Small and Medium Enterprise under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME) are not furnished in view of the non viability of the relevant information with the company from all such enterprises. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material.

NOTE: 4. The Company has export obligation to the extent of Rs.12.53 Crores on account of concessional rate of custom duty availed under EPCG license Scheme on import of capital goods.

NOTE: 5. Based on review carried out as on 31.03.2013, no impairment loss is required to be provided for as per Accounting Standard 28 on "Impairment of Assets".

NOTE: 6. In the opinion of the management the balances of sundry debtors, loans and advances have approximately the same realisable value as shown in the accounts.


Mar 31, 2012

NOTE: 1. THE DETAILS OF CONTINGENT AS AT AS AT LIABILITIES AND COMMITMENTS March 31, March 31, (TO THE EXTENT NOT 2012 2011 PROVIDED FOR): Particulars Rs. Rs.

A. Contingent Liabiities:

1. Bank Guarantee 43.38 8.38

2. Textile Cess 17.06 11.12

3. Disputed Excise Duty Liability 9.98 9.98

4. Disputed Income Tax Liability 14.88 14.88

5. Claims against suits filed In Labour Courts not acknowledged by the company 15.33 0.60

6. Claims against suits by others not acknowledged by the company 13.78 10.09

B. 1. Commitments: Estimated amount of capital contacts remaining to be executed on capital account and not provided for (Net of Advances) 311.66 570.88

TOTAL 426.07 625.93

NOTE: 2. RELATED PARTY TRANSACTIONS:

As per Accounting Standard 18, Related Party Disclosure is as Under:

(a) List of Related Parties with whom transactions have taken place during the year and relationship:

Name of the Related Party Relationship

Shah Jeetmal Champalal Associate

Mahalaxmi Cal Chem Pvt. Ltd Associate

Anand Chem Industries Pvt. Ltd. Associate

Mahalaxmi Exports Associate

Rahul Textile Associate

Jeetmal B Parekh Key Managerial Personnel

Rahul J Parekh Key Managerial Personnel Anand J. Parekh Key Managerial Personnel

NOTE: 3. The power cost is net of value of captively consumed units of wind mill.

NOTE: 4. The Disclosures as required to be made relating to Micro, Small and Medium Enterprise under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME) are not furnished in view of the non avaibility of the relevant information with the company from all such enterprises. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material.

NOTE: 5. Based on review carried out as on 31.03.2012, no impairment loss is required to be provided for as per Accounting Standard 28 on "Impairment of Assets".

NOTE: 6. In the opinion of the management the balances of sundry debtors, loans and advances have approximately the same realisable value as shown in the accounts.

NOTE: 7. The financial statements 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 under the Companies Act,1956, the financial statements for the year ended 31st March,2012 are prepared under revised Schedule VI. Accordingly, the previous year figures have also been reclassified to confirm to this year's classification.


Mar 31, 2011

1 Provision for Income Tax has been made in accordance with the provisions of the Income Tax Act, 1961.

2 The power cost is net of value of captively consumed units of Wind Mill.

3 Parsuant to approval of the shareholders of the company by way of postal ballot on 13th August, 2010 the company has sub-divided its equity shares of the face value of Rs. 10 each into 10 equity shares of the face value of Re.1 each.

4 Related Party Transactions:

As per Accounting Standard 18, Related Party Disclosure is as under:

(a) List of Related Parties with whom transactions have taken place during the year and relationship:

Name of the Related Party Relationship

Shah Jeetmal Champalal Associate

Mahalaxmi Cal Chem Pvt. Ltd Associate

Anand Chem Industries Pvt. Ltd. Associate

Mahalaxmi Exports Associate

Rahul Textile Associate

Jeetmal B Parekh Key Managerial Personnel

Rahul J Parekh Key Managerial Personnel

Anand J. Parekh Key Managerial Personnel

5 Contingent liabilities in respect of: 2010-11 2009-10

a) Bank Guarantee Rs. in lacs 8.38 8.38

b) Textile Cess Rs. in lacs 11.12 11.12

c) Disputed Excise Duty Liability Rs. in lacs 9.98 20.60

d) Disputed Income Tax Liability Rs. in lacs 14.88 12.89

e) Claims against suits filed in labour courts not acknowledged by the Company Rs. in lacs 0.60 0.67

f) Claims against suits by others not acknowledged by the Company Rs. in lacs 10.09 10.09

g) Estimated amount of Capital remaining to be Rs. in lacs 570.88 - executed on capital account and not provided for (Net of Advances)

6 In the opinion of the management the balances of sundry debtors, loans and advances have approximately the same realisable value as shown in the accounts.

7 The Disclosures as required to be made relating to Micro, Small and Medium Enterprise under the Micro,Small and Medium Enterprises Development Act, 2006 (MSME) are not furnished in view of the non avaibility of the relevant information with the company from all such enterprises. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material.

8 Based on review carried out as on 31.03.2011, no impairment loss is required to be provided for as per Accounting Standard 28 on "Impairment of Assets".

9 Sundry Debtors include Rs. 20258914 due from companies and firms in which directors of the company are directors or partners

10 Previous year's figures are regrouped and/or rearranged wherever considered necessary.


Mar 31, 2010

1. Provision for Income Tax has been made in accordance with the provisions of the Income Tax Act, 1961 after adjusting the MAT Credit entitlement.

2. The power cost is net of value of captively consumed units of Wind Mill.

3.1 Lacs Warrants which were issued on preferential basis and were due for conversion on August 24, 2009 were lapsed and the upfront amount received was forfeited and credited to Profit & Loss account.

4. Related Party Transactions:

As per Accounting Standard 18, Related Party Disclosure is as under:

(a) List of Related Parties with whom transactions have taken place during the year and relationship:

Name of the Related Party Relationship

Shah Jeetmal Champalal Associate

Mahalaxmi Cal Chem Pvt. Ltd Associate

Anand Chem Industries Pvt. Ltd. Associate

Mahalaxmi Exports Associate

Rahul Textile Associate

Jeetmal B Parekh Key Managerial Personnel

Rahul J Parekh Key Managerial Personnel

Anand J. Parekh Key Managerial Personnel

5. Contingent liabilities in respect of:

2009-2010 2008-2009 a) Bank Guarantee Rs.in lacs 8.38 8.38

b) Textile Cess Rs.in lacs 11.12 11.12 c) Disputed Excise Duty Liability Rs.in lacs 20.60 10.44

d) Disputed Income Tax Liability Rs. in lacs 12.89 12.89

e) Claims against suits filed ip labour Rs. in lacs 0.67 2.26 courts not acknowledged by the Company f) Claims against suits, by others not Rs. in lacs 10.09 10.09 acknowledged by the Company

6. In the opinion of the management the balances of sundry debtors, loans and advances have approximately the same realisable value as shown in the accounts.

7. In accordance with the Notification No.GSR 719 (E) dated 16.11.2007 issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises as defined under the Micro, Small and Medium Development Act, 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in their Financial Statements. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expexted to be material.

Note:

Geographical segment considered for disclosure are as follows: Revenue within India includes sales to customers located within India. Revenue outside India includes sales to customers located outside India.

8. Based on review carried out as on 31.03.2010, no impairment loss is required to be provided for as per Accounting Standard 28 on "Impairment of Assets".

9. Sundry Debtors include Rs. 10668628/- due from companies and firms in which directors of the company are directors or partners.

10. Previous years figures are regrouped and/or rearranged wherever considered necessary.

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