Notes to Accounts of Mohite Industries Ltd.

Mar 31, 2018

I. Basis of Preparation :

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed by Ministry of Corporate Affairs under Companies (Indian Accounting Standards) Rules, 2015, provisions of the Companies Act, 2013, to the extent notified and pronouncements of the Institute of Chartered Accountants of India.

Disclosures under Ind AS are made only in respect of material items and in respect of the items that will be useful to the users of financial statements in making economic decisions.

The financial statements for the year ended 31^st March 2018 (including comparatives) are duly adopted by the Board on 30^th May, 2018 for consideration and approval by shareholders.

Note -

a) Equity Shareholders List holding more than 5% of equity shares along with the number of equity shares held is as given below

b) The Company has only one class of equity share of par value Rs. 10/- Each holder of the equity shares is entitled to one vote per share.

c) During the previous Five years, the company has not issued bonus shares/bought back shares / issued shares for consideration other than cash

Notes :

1. LIC loan against policy is availied against assignment of Key Man Insurance Policies

2. LIC loan against property is secured by exclusive first charge on personal property of directors located at Plot No.1 Survey No. 250B/1A/4, E Ward, Nagala Park, Kolhapur

3. Daimler Finance Vehicle Loan is secured by hypothecation of respective vehicle against which loan is sanctioned.

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Mar 31, 2016

1. Company has only one class of equity share of par value Rs. 10 /-. Each holder of the equity shares is entitled to one vote per share.

2. During the previous five years, the company has not issued bonus shares/ bought back shares / issued shares for consideration other than cash.

3. Bank of Baroda term loan are secured by exclusive first charge on fixed assets (Present & Future) of the Company relating to the Hydro Power Project.

Collateral

4. Second Pari passu charge on the fixed asset of the Co. (except vehicles) relating to the textile Unit.

5. Second Pari passu charge on the current asset of the Company relating to the textile unit.

6. Personal guarantee of Mrs. Monika Mohite and Shri .Shivaji Mohite

7. LIC loan against policy is availed against assignment of Key Man Insurance Policies

3. LIC loan against property is secured by exclusive first charge on personal property of directors located at Plot No. 1, Survey No. 250B/1 A/4, E Ward, Nagala Park, Kolhapur.

Note : -8

Working Capital Facilities in (i) to (iii) and Non - Fund Limits are secured by First charge on entire stock of Raw material, Stock in Process, finished Goods, consumables, stores and spare, book debts on pari passu with other bank (present & future)

9. Gratuity is administrated through Group Gratuity Scheme with LIC of India.

10. Salary Escalation Rate :-

Future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

11. Expected rate of return in plan assets :-

This is based on actuaries expectations of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

12. Discount Rate :-

The discount rate is based on the prevailing market yields of Indian Government securities as at balance sheet date for the estimated term of the obligations.

13. Segment Reporting :

Segment have been identified in line with Accounting Standard on Segment reporting (AS-17)

14. Related Party Disclosures:

15. Related Parties and their relationship

16. Key Management Personnel:

Mr. Shivaji R. Mohite, Chairman & Managing Director

Mrs. Monika S. Mohite, Joint Managing Director

Mr. Abhay S. Bhide, Executive Director & Chief Executive Officer

Mr. Neehal M. Pathan, Non-Execute Director

Mr. Shreyas S. Alatkar, Chief Financial Officer

Ms. Ashvini P. Kalekar, Company Secretary

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Mar 31, 2015

1. Bank of Baroda Term Loan are secured by exclusive First charge on fixed assets (Present & Future) of the Company relating to the Hydro Power Project.

Collateral

a) Second Pari passu charge on the fixed asset of the Co. (except vehicles) relating to the textile Unit.

b) Second Pari passu charge on the current asset of the Company relating to the textile unit.

c) Personal guarantee of Mrs. Monika Mohite and Mr. Shivaji Mohite

2. The Loan against Property is Secured by the Mortgage of Property located at Plot No. 1, Survey NO.250B/1A/4, 'E' Ward, Nagala Park, Kolhapur.

3. a) Term Loan under TUF's scheme is secured by first pari passu charge with BOB on fixed assets of spinning unit at Vadgaon.

b) Pledge of Thirty Lacs Equity Shares of Mr. Shivaji Mohite

4. LIC Loan is availed against assignment of Keyman Insurance Policies

Note: -

Working Capital Facilities in (i) to (iii) and Non - Fund Limites above are secured by First charge on entire stock of Raw material, Stock in Process, finished Goods, consumables, stores and spare, bookdebtsonpari passu with other bank (present & future)

Note- Short Term Loans and advances includes amount receivables from employees against interest free loan given to them in the ordinary corse of business and as per rules of the Company.

i) Expected rate of return in plan assets -

This is based on actuaries expectations of the average long-term rate of return expected on investments of thefund during the estimated term of the obligations.

ii) Discount Rate-

The discount rate is based on the prevailing market yields of Indian Government securities as at balance sheet date for the estimated term of the obligations.

c) Retirement and Other Benefits to Employees:

a] Provident fund is accounted on monthly basis in accordance with the terms of the contract with the employees and is deposited with the "Employees Provident Fund Organization (EPFO)".

b] Encashment of leave is accounted for in the year in which the employees exercise the option of encashment.

c] Gratuity Liability is defined benefit obligation and Liability on account of retirement gratuity is provided in accordance with the Company's Group Gratuity Cash Assurance Scheme with LIC of India.

iii) Deferred Tax Liability/Assets at the end of the year:

As on 31st March, 2015 there is reversal of Deferred Tax Liability on account of timing difference of depreciation of Rs, 3861646/-.

iv) Segment Reporting:

Segment have been identified in line with Accounting Standard on Segment reporting (AS-17)

v) Related Party Disclosures:

As per the Accounting Standard on 'Related Party Disclosures' (AS 18)

-Name of the Parties

i) Key Management Personnel:

Mr. Shivaji Ramchandra Mohite (Chairman & Managing Director) Mrs.Monika Shivaji Mohite (Joint Managing Director) Mr. Abhay Shamrao Bhide (Executive Director & CEO) Mr. Neehal M. Pathan (Non-Execute Director)

ii) Other related parties (Associates), where transaction have taken place during the year.

M/s. Mahalaxmi Cotton, Ginning, Pressing & Oil Industries

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Mar 31, 2014

I) Contingent liabilities:

Contingent Liabilities not provided in respect of- Rs in Lacs As at As at Particulars 31 March 2014 31 March 2013

1.Claims not acknowledged as debts in respect of matters in appeals. - 359.89

2. Commitments

a) Estimated amount of contracts remaining to be executed - -

b) Other Commitments :

Guarantee given by banks, counter guaranteed by the Company 380.29 660.59

c) Other Significant Commitments - -

a] Gratuity is administrated through Group Gratuity Scheme with LIC of India.

b] Salary Escalation Rate-

Future salary increases considered in acturial valuation taken into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

i) Expected rate of return in plan assets-

This is based on actuaries expectations of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

ii) Discount Rate-

The discount rate is based on the prevailing market yields of Indian Government securities as at balance sheet date for the estimated term of the obligations.

iii) Deferred Tax Liability/Assets at the end of the year:

As on 31st March, 2014 the Deferred TaxAsset comprises of timing difference on account of Depreciation only of Rs. 39,15,221/- which is shown under Deferred Tax Liability (Net).

v) Retirement and Other Benefits to Employees:

a] Provident fund is accounted on monthly basis in accordance with the terms of the contract with the employees and is deposited with the "Employees Provident Fund Organization (EPFO)".

b] Encashment of leave is accounted for in the year in which the employees exercise the option of encashment.

c] Gratuity Liability is defined benefit obligation and Liability on account of retirement gratuity is provided in accordance with the Company''s Group Gratuity Cash Assurance Scheme with LIC ofIndia.

vi) Segment Reporting:

Segment have been identified in line withAccounting Standard on Segment reporting (AS-17)

viii) Related Party Disclosures:

As per theAccounting Standard on ''Related Party Disclosures''(AS 18)

-Name of the Parties

i) Key Management Personnel:

Mr. Shivaji RamchandraMohite (Chairman & Managing Director)

Mrs. Monika Shivaji Mohite (Joint Managing Director)

ii) Other related parties (Associates), where transaction have taken place during the year. M/s. Mahalaxmi Cotton, Ginning, Pressing & Oil Industries

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Mar 31, 2013

I) Contingent Liabilities :

Contingent Liabilities not provided in respect of - Rs. in Lacs

As at As at Partlculars 31st March 2013 31st March 2012

1. Claims not acknowledged as debts in respect of matters in appeals. 359.89 359.89

2. Commitments

a) Estimated amount of contracts remaining to be executed

b) Other Commitments :

Guarantee given by banks, counter guaranteed by the Company 660.59 668.21

c) Other Significant Commitments - -

ii) Deferred Tax Liability / Assets at the end of the year :

As on 31st March, 2013 the Deferred Tax Asset comprises of timing difference on account of Depreciation only of Rs. 39,66,167/- which is shown under Deferred Tax Liability (Net).

iii) Retirement and Other Benefits to Employees:

a] Provident fund is accounted on monthly basis in accordance with the terms of the contract with the employees and is deposited with the "Employees Provident Fund Organization (EPFO)".

b] Encashment of leave is accounted for in the year in which the employees excerise the option of encahsment.

c] Gratuity Liability is defined benefit obligation and Liability on account of retirement gratuity is provided in accordance with the Company''s Group Gratuity Cash Assurance Scheme with LIC of India.

iv) Segment Reporting :

Segment have been identified in line with Accounting Standard on Segment reporting (AS-17) Segment -wise information for the year ended 31st March 2013.

v) Related Party Disclosures:

As per the Accounting Standard on ''Related Party Disclosures'' (AS 18)

-Name of the Parties

i) Key Management Personnel :

Mr. Shivaji Ramchandra Mohite (Chairman & Managing Director)

Mrs. Monika Shivaji Mohite (Joint Managing Director)

ii) Other related parties (Associates), where transaction have taken place during the year.

M/s. Mahalaxmi Cotton, Ginning, Pressing & Oil Industries

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Mar 31, 2012

A. Right of Equity Shareholders :

Company has only one class of equity shares of par value Rs.10/- Each holder of the equity shares is entitled to one vote per share. In the event of liquidation of the company the holder of equity share will be entitled to receive remaining assets of the company after distribution of the preferential payments. The distribution will be in proportion to the number of equity shares held by the shareholders.

b. During the previous five years, the company has not issued bonus shares / bought back shares/issued shares for consideration other than cash.

Notes :

1. Term Loan No. I above is secured by First pari passu charge on the fixed asset (Present & Future) re lating to the weaving unit with IDBI Bank

Collateral

a) First pari passu charge on the fixed asset of the Company (except vehicles) relating to the textile unit.(pari passu with IDBI Bank)

b) Extension of first charge on fixed assets (present & future) of Hydro Power Project at Radhanagari

c) Second pari passu charge on the current assets relating to the textile unit (pari passu with SBI & IDBI)

d) Personal guarantee of Shri R M Mohite, Mrs Monika Mohite and Shri Shivaji Mohite

2. Term Loan No. II & III above are secured by exclusive First charge on fixed assets (Present & Future) of the Company relating to the Hydro Power Project

Collateral

a) Second pari passu charge on the fixed asset of the Company (except vehicles) relating to the textile unit.

b) Second pari passu charge on the current asset of the Company relating to the textile unit.

c) Personal guarantee of Shri R M Mohite, Mrs Monika Mohite and Shri Shivaji Mohite

3. The Loan against property is secured by the mortgage of property located at Plot No. 1, Survey No. 250B/1A /4, E Ward, Nagala Park, Kolhapur.

4. a) Term Loan under TUF's scheme is secured by first pari passu charge with BOB on fixed assets of spinning unit at Vadgaon, Weaving unit at Kagal & Khotwad Ichalkaranji

b) Pledge of Thirty Lacs Equity Shares of Shivaji Mohite

5. LIC Loan is availed against assignment of Key Man Insurance Policies

6. All Vehicle Loans are secured by the mortgage of the particular vehicles.

Note :

Above Working Capital Facilities are secured by First charge on entire stock of raw material, stock in process, finished goods, consumables, stores & spare and book debts on pari passu with other banks (present & future)

Short Term Loans and advances includes amount receivable from employees against interest free loan given to them in the ordinary course of business and as per rules of the Company. No repayment schedule or repayment is beyond seven years.

i) Contingent liabilities:

Contingent Liabilities not provided in respect of :-

Rs. in Lacs As at As at Particulars March, March, 31, 2012 31, 2011

1. Claims not acknowledged as debts in respect of matters in appeals. 359.89 359.89

2. Commitments

a) Estimated amount of contracts remaining to be executed -- --

b) Other Commitments :

Guarantee given by banks, counter guaranteed by the 668.21 675.85

Company

c) Other Significant Commitments -- --

a) Gratuity is administered through Group Gratuity Scheme with Life Insurance Corporation of India.

b) Salary Escalation Rate:

Future salary increases considered in actuarial valuation taken into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

i) Expected rate of return in plan assets :

This is based on actuaries expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

ii) Discount Rate:

The discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

iii ) Deferred Tax Liability/Assets at the end of the year :

As on 31st March, 2012 the Deferred Tax Asset comprises of timing difference on account of Depreciation only of Rs. 33,11,670/- which is shown under Deferred Tax Liability (Net)

(v) Retirement and Other benefits to Employees

[a] Provident fund is accounted on monthly basis in accordance with the terms of contract with the employees and is deposited with the "Employees Provident Fund Organization (EPFO)".

[b] Encashment of leave is accounted for in the year in which the employees exercise the option of encashment.

[c] Gratuity Liability is defined benefit obligation and Liability on account of retirement gratuity is provided in accordance with the Company's Group Gratuity Cash Assurance Scheme with Life Insurance Corporation of India.

(viii) Related Party Disclosures:

As per the Accounting Standard on 'Related Party Disclosures' (AS 18)

Name of the Parties

i) Key Management Personnel :

Mr. Shivaji Ramchandra Mohite (Chairman & Managing Director)

Mrs. Monika Shivaji Mohite (Joint Managing Director)

ii) Other related parties (Associates), where transaction have taken place during the year. M/s. Mahalaxmi Cotton, Ginning, Pressing & Oil Industries

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Mar 31, 2010

1. Contingent liabilities:

[a] Guarantees given by banks, counter guaranteed by the Company - Rs. 6,49,50,000/-(previous year Rs. 2,71,15,000/-)

[b] Letter of credit (for import of machinery) established by banks, counter guaranteed by the Company - Euro 1,84,680 (previous year- Rs.l 0,03,00,000)

[c] Income tax/sales tax demands against which the Company has preferred appeals - Nil (previous year Rs. 2,22,69,110)

Central Excise duty demands against which the Company has preferred appeals - Rs.3,59,89,388/- (previous year Rs. 3,59,89,388/-)

[d] Guarantees given on behalf of a sister /associate concerns —Rs. 4,00,00,000 (previous year NIL)

2. Share Capital:

During the year the Company has not issued any shares. There is no change in issued, subscribed and paid up capital of the Company during the year.

3. Fixed Assets:

Estimated amount of contracts remaining to be executed on capital account and not provided for (net advances) is NIL (Previous year NIL)

4. Current Assets, Loans & Advances:

[a] Debtors do not include any overdue amount which has not been settled over long periods or which is under dispute and arbitration. In the opinion of the management, all the outstanding debts as on 31.03.2010 are considered good.

[b] Advances recoverable in cash or in kind do not include any sort of loan or advance to the Chairman, Managing Director or to Joint Managing Director.

[c] In the opinion of the Board of Directors of the Company, the value of realization of current assets, loan and advances, in the ordinary course of business, would not be less than the amount at which they are stated in the Balance Sheet and the provision for all known and determined liabilities, is adequate and not in excess of the amount reasonably required.

[d] The balances of debtors and creditors are subject to confirmation.

[e] The Company does not have information regarding their vendors status "The Small, Medium and Micro Enterprises Development Act, 2006", therefore bifurcation between Total Outstanding dues of Micro Enterprises and Small Enterprises and Other dues are not disclosed under the head "Current Liabilities and Provisions".

[f] Mr.Rajendar Prabhakar Kinkar, an independent director of the Company, is a director of Shri.Mahalaxmi Co-operative Bank Ltd. with whom the Company has banking relationship.

5. Profit and Loss Account:

a] Provident fund is accounted on monthly basis in accordance with the terms of contract with the employees and is deposited with the "Employees Provident Fund Organization (EPFO)".

b] Encashment of leave is accounted for in the year in which the employees exercise the option of encashment.

c] Provisions for additional accrued-gratuity—liability for the year is estimated to be Nil (Previous year Rs.4,99,334/-). Liability on account of retirement gratuity is provided in accordance with the Companys Group Gratuity Cash Assurance Scheme with Life Insurance Corporation of India.

6. Segment Reporting:

The Company is engaged in the business of 100% cotton yarn of various counts/plies and knitted fabric . In context of Accounting Standard 17 issued by the Institute of Chartered Accountants of India, it is considered to be the only one business segment.

7. Related Party Disclosures:

As per the Accounting Standard on Related Party Disclosures (AS 1 8) issued by The Institute of Chartered Accountants of India, the related parties of the Company are as follows: 1) List of Related Parties & Relationship

(a) Mr. Shivaji Ramchandra Mohie

(b) Mrs. Monika Shivaji Mohite

(c) Mahalaxmi Cotton, Ginning Pressing & Oil Ind.

(d) United Real Estate Developers Pvt. Ltd.

(e) Shantanu Developers Pvt. Ltd.

(f) Shivam Earth-Movers Pvt. Ltd.

(g) Shiv-Dhruv Developers Pvt. Ltd.

(h) D & S (Engineers & Contractors) Pvt. Ltd.

(i) First Steps Baby Wear Pvt.Ltd.

(j) Mohitex Kinnts Pvt. Ltd

(k) Rosary Developers Pvt. Ltd

(l) Divine Contractors Pvt. Ltd

(m) Musk Developers Pvt. Ltd

(n) Precision Developers Pvt. Ltd

(o) Starlit Developers Pvt. Ltd

8. Previous years figures have been re-grouped and reclassified to make them comparable with the figures of the current year.