Notes to Accounts of Krishna Filament Industries Ltd.

Mar 31, 2015

1 The Schedules referred to in the Balance Sheet & Profit and Loss Account form an integral part of the accounts.

2 In the opinion of the Board of Directors current assets, loans and advances are having the value at they are stated in the balance sheet at which they are stated if realized in the ordinary course of action.

3 The balance of all current assets, loans and advances, current liabilities are subject to confirmation and consequent adjustment if any.

4 The company has not received any intimation from 'suppliers' regarding their status under the Micro Small And Medium Enterprises Development Act 2006, and hence disclosures , if any , relating to amounts unpaid as at the year ended together with interest paid/payable as required under the said Act have not been given.

5 Previous year figure have been regrouped & rearranged wherever necessary to correspond to the figure of current year.

6. Contingent Liabilities - -

7. Disclosures on Related Parties transactions

i) Nature and Relationship of Related Parties

a) Subsidiary Company

Nil

b) Fellow Subsidiary Company

Nil

c) Investment in Partnership Firm

Nil

d) Key Management Personnel

e) Relatives of Key Management Personnel

Nil

f) Entities where Key Management Personnel have Significant Influence

1. Krishna Vlnvls Limited

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Mar 31, 2014

The Schedules referred to in the Balance Sheet & Profit and Loss Account form an integral part of the accounts.

In the opinion of the Board of Directors current assets, loans and advances are having the value at they are stated in the balance sheet at which they are stated if realized in the ordinary course of action.

The balance of all current assets, loans and advances, current liabilities are subject to confirmation and consequent adjustment if any.

The company has not received any intimation from ''suppliers'' regarding their status under the Micro Small And Medium Enterprises Development Act 2006, and hence disclosures , if any , relating to amounts unpaid as at the year ended together with interest paid/payable as required under the said Act have not been given.

Previous year figure have been regrouped & rearranged wherever necessary to correspond to the figure of current year.

(Amt. in Rs.) Particulars 31-Mar-14 31-Mar-13

2. Contingent Liabilities

Disputed Income Tax Demand - 1,641,443,870

- 1,641,443,870

3. Disclosures on Related Parties transactions

i) Nature and Relationship of Related Parties

a) Subsidiary Company

Nil

b) Fellow Subsidiary Company

Nil

c) Investment in Partnership Firm

Nil

d) Key Management Personnel

e) Relatives of Key Management Personnel

Nil

f) Entities where Key Management Personnel have Significant Influence

1. Clever Capital Services Limited

2. Krishna Vinyls Limited

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Mar 31, 2013

- The Schedules referred to in the Balance Sheet & Profit and Loss Account form an integral part of the accounts.

- Sundry Debtors and Loans & Advances are subject to confirmation and consequent adjustment.

- The company has not received any intimation from ''suppliers'' regarding their status under the Micro Small And Medium Enterprises Development Act 2006, and hence disclosures , if any , relating to amounts unpaid as at the year ended together with interest paid/payable as required under the said Act have not been given.

- Previous year figure have been regrouped & rearranged wherever necessary to correspond to the figure of current year.

1. Contingent Liabilities

Disputed Income Tax Demand 1,641,443,870 1,641,443,870

1,641,443,870 1,641,443,870

2. Disclosures on Related Parties transactions

i) Nature and Relationship of Related Parties

a) Subsidiary Company

Nil

b) Fellow Subsidiary Company

Nil

c) Investment in Partnership Firm

Nil

d) Key Management Personnel

e) Relatives of Key Management Personnel

Nil

f) Entities where Key Management Personnel have Significant Influence

1. Clever Capital Services Limited

2. Jehu Industries Limited

Note 1: Related Parties as disclosed by Management and relied upon by auditors

Note 2: No amount pertaining to related parties have been provided for as doubtful debts. Also, no amount has been written off I back which was due from I to related parties.

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Mar 31, 2010

1. The Schedules referred to in the Balance Sheet & Profit and Loss Account form an integral part of the accounts.

2. Contingent Liabilities not provided for :

Disputed Income Tax demand of Rs. 1,641,443,870 /- (P.Y. Rs. 1,641,443,870/-)

3. No interest has been provided on unpaid installments of loans from the respective due date of installment No provision has been made for interest on working capital loans and its effect on loss for the year is unascertained.

4. Balances of Sundry Debtors, Sundry Creditors, Deposits, Loans & Advances from parties / Banks / Financial Institution and Bank Balances are subject to confirmation however as informed to us the company has initiated legal proceeding against its debtors amounting to Rs. 11,72,26,941/- for recovery.

5. The future liability on account of lease rent on Land to be paid over remaining period of 82 years and 3 months is Rs. 98,70,000/-.

6. As against Secured Loans of Rs.4,40,49,665,/- the book value of relevant assets aggregate Rs.59,12,554/-.

7. Earning per share:-

Earnings per Share is calculated by dividing the (Loss)/Profit attributable to the Equity Shareholders by the weighted average no. of equity shares outstanding during the period. The numbers used in calculating basic and diluted earnings per Equity Share are stated below:

8. Related Party Disclosure:

(A) List of Related Parties:

(I) Associates:

(i) Krishna Vinyls Ltd.

(ii) Clever Capital Services Ltd.

(II) Directors:

(i) Shri Krishna Kumar Agarwal

(ii) Ms. Julie Jani

(iii) Mrs. Amita Agarwal

(B) Transaction during the year with related parties:

(I) Advance received during the year from Krishna Vinyls Ltd. Rs. 17,60,000/-, balance outstanding at the year end Rs.79,43,170/-

There is no write off/ write back of any amount from related parties

9. In terms of prudence accounting policy and in view of the fact that the reference is made to BIFR, no provision is required to be made for deferred tax in accordance with Accounting Standard 22.

B. Expenditure in Foreign Currency: Nil

C. Earnings in Foreign Exchange: Nil

10. Figures given in brackets relate to previous year. Previous years figures have been re-grouped, re- arranged and re-cast wherever necessary to correspond with the figures of the current year.