Notes to Accounts of Newtrac Foods & Beverages Ltd.

Mar 31, 2024

k. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized
when there is a present obligation as a result of past events, and it is probable that
there will be an outflow of resources. Contingent liabilities are not recognized but
are disclosed in the notes. Contingent assets are neither recognized nor disclosed in
the financial statements.

l. FINANCIAL INSTRUMENTS

A financial instrument is any contract that gives rise to a financial asset of one entity
and a financial liability or equity instrument of another entity.

Financial Assets

Initial Measurement:

All financial assets are recognised initially at fair value plus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset. Purchases or sales of financial
assets that require delivery of assets within a time frame established by regulation or
convention in the market place (regular way trades) are recognised on the trade
date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent Measurement:

Subsequent measurement is determined with reference to the classification of the
respective financial assets and the contractual cash flow characteristic of the
financial assets, the company classifies financial assets as subsequently measured at
amortized cost, fair value through other comprehensive income or fair value through
profit and loss.

Financial Assets carried at amortised cost

A financial asset is measured at amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding

Financial Assets at fair value through other Comprehensive Income (FVOCI)

A financial asset is measured at FVOCI if it is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling financial
assets and the contractual terms of the financial asset give rise on specified dates to

cash flows that are solely payments of principal and interest on the principal amount
outstanding.

Financial Assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured
at FVTPL

Debt instruments included within the FVTOCI category are measured at fair value
with all changes recognized in profit and loss. However currently the company does
not have any financial instrument in this category.

Equity Investment

All equity investments in scope of Ind AS 109 are measured at fair value except
unquoted equity investments which are stated at cost. Equity instruments which are
held for trading are classified as at FVTPL. For other equity instruments, the company
decides to classify the same either as at FVTOCI or FVTPL. The company makes such
election on an instrument by instruments basis. The Classification is made on initial
recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, all fair value
changes on the instrument, excluding dividends are recognized in other
comprehensive income. There is no recycling of the amount from other
comprehensive income to profit and loss even on sale of investment. However, the
company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value
with all changes recognized in the profit or loss.

m. FAIR VALUE MEASUREMENT

The Company measures financial assets and financial liability at fair value at each
balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset
or liability

The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market
participant''s ability to generate economic benefits by using the asset in its highest
and best use or by selling it to another market participant that would use the asset in
its highest and best use. The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising
the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the fair value measurement as a
whole:

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

- Level 2 - Valuation Techniques for which the lowest level input that is significant to
the fair value measurement is directly or indirectly observable

- Level 3 - Valuation Techniques for which the lowest level input that is significant to
the fair value measurement is unobservable. For assets and liabilities that are
recognised in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.

The Management analyses the movements in the values of assets and liabilities
which are required to be remeasured or re-assessed as per the Company''s
accounting policies. For this analysis, the Management verifies the major inputs
applied in the latest valuation by agreeing the information in the valuation
computation and other relevant documents.

o. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Financial Risk Factors

The Company''s financial risk management is an integral part of how to plan and
execute its business strategies. The Company''s overall risk management program
focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the Company.

Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates,
interest rates and equity prices will affect the Company''s income or the value of its
holdings of financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while
optimising the return.

Interest Rate Risk

The Company has financial assets which are at fixed interest rates and is therefore
not exposed to the risks associated with the effects of fluctuation in interest rates.

Foreign Exchange Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in foreign exchange rates. As the
company does not deal in forex transaction, there is not foreign risk.

Credit Risk

Credit Risk represents the potential loss that the Company would incur if counter
parties fail to perform pursuant to the terms of their obligations to the Company.
The Company limits its credit risk by carrying out transactions. The maximum
exposure to credit risk is represented by the carrying amount of each financial asset
in the statement of financial position.

There is no risk in terms of Bank Balances, since the counterparty is a reputable bank
with high quality external credit ratings.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial
obligations as they fall due. The Company''s approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company''s reputation. The Company
manages liquidity risk by maintaining adequate reserves, by continuously monitoring
forecast and actual cash flows and matching the maturity profiles of the financial
assets and liabilities.

Derecognition of financial assets

The Company has elected to apply the derecognition requirements for financial
assets and financial liabilities in Ind AS 109 prospectively for transactions occurring
on or after the date of transition to Ind AS.

Classification and movement of financial assets and liabilities

The Company has classified the financial assets and liabilities in accordance with Ind
AS 109 on the basis of facts and circumstances that existed at the date on transition
to Ind AS.

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Mar 31, 2014

1 Terms/Rights attached to Equity Shares:

The Company has issued only one class of shares referred to as equity shares having a par value of Rs.10/- per share. All equity shares carry one vote per share without restrictions and are entitled to dividend, as and when declared. All shares rank equally with regards to the Company''s residual assets.

2. a) In pursuance of the order dated 24th September 2002 of Hon''ble Supreme Court, the company has been held liable for payment of Excise duty on its Finished product (Fur Fabrics). In pursuance of the said order the Central Excise Authorities has asked the company to pay amount of Rs 1,45,78,305/- towards Central Excise duty payable on the goods cleared by the company during the period from 20.10.1987 to 31.07.1990. The company has accordingly provided a sum of Rs 1, 45, 78,305/- towards Central Excise duty liability in its accounts during the year ended 31st March 2003. The company has however not provided for interest on the demand of Rs 1, 45, 78,305/- from the date of the Order of the Hon''ble Supreme Court.

b) In pursuance of the order dated 30th November 2004 of Additional Commissioner, Central Excise, Mahad, the Company has been held liable for demand of BED, AED, and AD (T & T) under section 11 A of Central Excise Act, 1944 on its finished products Fur Fabrics. In pursuance of the said order, the Central Excise authorities had asked the company to pay an amount of Rs 1, 60, 29,381/- towards Central Excise Duty payable on goods cleared by the Company during the period from Sept 1996 to Nov 2000, The company accordingly provided a sum of Rs 1, 60, 29,381/- towards Central Excise Duty liability in its accounts during the year ended 31st March 2005. The company has however not provided for interest on demand of Rs 1, 60, 29,381/- from the date of order.

c) In pursuance of the order dated 16th March 2005 of Assistant Commissioner, Central Excise, Mahad, the Company has been held liable for demand of short payments arising out of the finalisation of the provisional assessment of its finished products Fur Fabrics. In pursuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 2, 29, 16,596/- towards Central Excise Duty payable on goods cleared by the Company during the period from 24.03.1987 to 31.05.1994 the company accordingly provided a sum of Rs 2, 29, 16,596/- towards Central Excise Duty liability in its account during the year ended 31st March 2005.

However against the above demands the Company had received a letter dated 20-12-2012 from the Office of the Deputy Commissioner Central Excise, Mahad Division for the recovery of the said demands. The Company had filed a detailed proposal to the Excise Department for the revival of the Company, but the proposal was not considered by the Department and an Order of attachment of Company''s Property at plot No B-5, B-6, MIDC Mahad, Taluka Mahad, Dist - Raigad dated 23-04-2013 has been issued from the Office of the Deputy Commissioner of Central Excise, Mahad Division, attaching the Company''s property at plot No B-5, B-6, MIDC Mahad, Taluka Mahad, Dist - Raigad, and in persuance of the said order, the Excise Department issued a letter dated 4th March, 2014 mentioning that the Company''s attached property at plot No 8-5, B-6, MIDC Mahad, Taluka Mahad, Dist - Raigad has been put for auction for recovery of their dues. No further information has been received thereafter.

3. In pursuance of the order dated 19th December, 2006 of The Commissioner, Central Excise (ADJ), Mumbai, the Company has been held liable for demand of duty under section 11 A (2) of Central Excise Act, 1944 for Rs 2,22,34,778/- and also penalty imposed of Rs 2,00,91,308/- u/s 11 AC and Rs 5,00,000/- under rule 209 of CER,1944 regarding its deemed export transactions under 100% EOU with GCU Ltd, during the period August 1996 to July 1998. Although the company has disputed the same and filed appeal against the same before the Appellate Tribunal u/s 358 of the Central Excise Act, the Company has provided for total amount of Duty and Penalty amounting to Rs 4,28,26,086/- towards Central Excise Duty liability in its accounts during the year ended 31st March 2007. The matter is before the Appellate Tribunal (CESTAT). The adjustments if any will be made in the books of accounts in the yearas & when the appeal is decided.

4. In pursuance of the assessment proceedings before the Sales Tax officer, the company has received demand notices from Sales tax Office under the Bombay Sales TaxAct & Central Sales TaxAct in respect of the following financial years.

Although the company has disputed the same and filed appeal against the same before The Sales Tax Tribunal, Mumbai the company has provided for the total demand amounting of Rs 18, 44,683/- towards Sales Tax liability in its accounts during the year ended 31st March 2007. The adjustment if any will be made in the books of accounts in the year as and when the appeal is decided.

5. In the opinion of the Board of Directors, all the assets other than Fixed Assets and Non-Current Investments have a value on realisation in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet.

6. Some of the books and records of the company pertaining to the period from October 1995 to January 1997 have been taken by the Central Excise authorities on 01.02.1997 and the books and records of the company pertaining to the period from February 1997 to July 1998 have also been taken by the central excise authorities on 23.07.1998 and are still lying with the concerned Authorities. The accounts for these period were therefore reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the books and records by the concerned authorities. .

7. RELATED PARTY TRANSACTIONS:

As per Accounting Standard -18 on "Related Party Disclosure", related parties of the Company are disclosed below:

8. The company has taken interest free loan from Premier Consultant & Traders Ltd. (Shareholder) of Rs. 2900000/- (Previous year Rs. 2760000/-) till the commencement of The Companies Act 2013, the same is to be intimated to the Registrar of Companies.

9. SEGMENT REPORTING

The Company is operating in one segment only i.e. Textiles, but during the year there is no business conducted by the Company, hence no segment reporting is given.

10. There are no Micro, Small and Medium Enterprises, as provided under the Micro, Small and Medium Enterprises Development Act, 2006, to whom the company owes dues, which are outstanding for more than 45 days as at Balance Sheet date.

11. In view of the Losses during the year, the company does not have taxable Income, hence the Provision for current Income Tax has not been made.

12. Previous year''s figures have been regrouped / rearranged / reclassified wherever necessary to confirm with current year''s classification / disclosure.

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Mar 31, 2013

1. a) In pursuance of the order dated 24th September 2002 of Hon''ble Supreme Court, the company has been held liable for payment of Excise duty on its Finished product (Fur Fabrics). In pursuance of the said order the Central Excise Authorities has asked the company to pay amount of Rs. 1,45,78,305/- towards Central Excise duty payable on the goods cleared by the company during the period from 20.10.1987 to 31.07.1990. The company has accordingly provided a sum of Rs 1,45.78,305/- towards Central excise duty liability in its accounts during the year ended 31st March 2003. The company has however not provided for interest on the demand of Rs 1,45,78,305/- from the date of the Order of the Hon''ble Supreme Court.

b) In pursuance of the order dated 30th November 2004 of Additional Commissioner, Central Excise, Mahad, the Company has been held liable for demand of BED, AED, and AD (T & T) under section 11 A of Central Excise Act, 1944 on its finished products Fur Fabrics. In pursuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 1,60,29,381/- towards Central Excise Duty payable on goods cleared by Company during the period from Sept 1996 to Nov 2000 the company accordingly provided a sum of Rs 1,60,29,381/- towards Central Excise Duty liability in its account during the year ended 31st March 2005. The company has however not provided for interest, on demand of Rs 1,60,29,381/- from the date of order.

c) In pursuance of the order dated 16th March 2005 of Assistant Commissioner, Central Excise, Mahad, the Company has been held liable for demand of short payments arising out of the finalisation of the provisional assessment of its finished products Fur Fabrics. In pursuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 2,29,16,596/- towards Central Excise Duty payable on goods cleared by Company during the period from 24.03.1987 to 31.05.1994 the company accordingly provided a sum of Rs 2,23,16,596/- towards Central Excise Duty liability in its account during the year ended 31st March 2005. However against the above demands the Company has received a letter dated 20-12-2012 from the Office of the Deputy Commissioner Central Excise, Mahad Division for the recovery of the said demands. The Company has filed a detailed proposal to the Excise Department and the matter is under consideration.

2. In pursuance of the order dated 19th December, 2006 of The Commissioner, Central Excise (ADJ), Mumbai, the Company has been held liable for demand of duty under section 11 A (2) of Central Excise Act, 1944 for Rs 2,22,34,778/- and also penalty imposed of Rs 2,00,91,308/- u/s 11 AC and Rs 5,00,000/- under rule 209 of CER.1944 regarding its deemed export transactions under 100% EOU with GCU Ltd, during the period August 1996 to July 1998. Although the company has disputed the same and filed appeal against the same before the Appellate Tribunal u/s 35B of the Central Excise Act, the Company has provided for total amount of Duty and Penalty amounting to Rs 4,28,26,086/- towards Central Excise Duty liability in its accounts during the year ended 31st March 2007. The matter is before the Appellate Tribunal (CESTAT). The adjustments if any will be made in the books of accounts in the year as & when the appeal is decided.

3. in the opinion of the Board of Directors the company expect that there would be no liabilty of custom duty & other charges payable on raw materials imported under Duty Exemption Scheme for non - fulfilment of Export obligation due to major fire in the factory premises of the company on 28th May 1993, hence no provision for the same has been made in the books of account. However the Company is in correspondence with DGFT, Mumbai for closure of the said advance licence and accordingly the Company has paid Custom Duty with Interest amounting to Rs 703303/- during the year under consideration. The Company expects the closure of the said licence shortly.

4. In the opinion of the Board of Directors, all the assets other than Fixed Assets and Non Current Investments have a value on realisation in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet.

5. a) Some of the books and records of the company pertaining to the period October 1995 to January 1997 have been taken by the central excise authorities on 01/02/1997 and are still lying with the concerened Authorities. The accounts for these period were therefore reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.

b) Some of the books and records of the company pertaining to the period February 1997 to July 1998 have also been taken by the central excise authorities on 23.07.98 and are still lying with concerened Authorities. The accounts for these periods were therefore reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.The company is therefore not in a position to ascertain the quantum of liability if any arising and therefore the same will be provided as and when demand is raised.

6. SEGMENT REPORTING

The Company is operating in one segment only i.e. Textiles, but during the year there is no business conducted by the Company, hence no segment reporting is given.

7. There are no Micro, Small and Medium Enterprises, as provided under the Micro, Small and Medium Enterprises Development Act, 2006, to whom the company owes dues, which are outstanding for more than 45 days as at Balance Sheet date.

8. In view of the Losses during the year, the company does not have taxable Income, hence the Provision for current Income Tax has not been made.

9. Previous year''s figures have been regrouped / rearranged / reclassified wherever necessary to confirm with current year''s classification / disclosure.

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Mar 31, 2012

1.1 Terms / Rights attached to Equity Shares :

The Company has Issued only one class of shares referred to as equity shares having a par value of Rs.10/- per share. All equity shares carry one vote per share without restrictions and are entitled to dividend, as and when declared. All shares rank equally with regards to the Company's residual assets.

During the year ended 31 st March, 2012. the amount of per share dividend recognized as distributions to equity shareholders was Rs NIL (31 st March, 2011 Rs Nil.).

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets Df the Company. The distribution will be in proportion to the number of equity shares held by the shareholders,

2 a) In pursuance of the order dated 24th September 2002 of Hon'ble Supreme Court, the company has been held liable for payment of Excise duty on its Finished product (Fur Fabrics). In pursuance of the said order the Central Excise Authorities has asked the company to pay amount of Rs 1 45 78 305/- towards Central Excise duty payable on the goods cleared by the company during the period from 20.10.1987 to 31.07.1990. The company has accordingly provided a sum of Rs 1,45,78,305/- towards Central excise duty liability in its accounts during the year ended 31st March 2003. The company has however not provided for interest on the demand of Rs 1,45,78,305/- from the date of the Order of the Honble Supreme Court.

b) In pursuance of the order dated 30th November 2004 of Additional Commissioner, Central Excise, Mahad, the Company has been held liable for demand of BED AED and AD (T & T) under section 11 A of Central Excise Act. 1944 on Its finished products Fur Fabrics. In pursuance of the said order the Central Excise authorities had asked the company to pay w amount of Rs 1,60,29,381/- towards Central Excise Duty payable on goods cleared by Company during the period from Sept 1996 to Nov 2000 the company accordingly provided a sum of Rs 1,60,29,381/- towards Central Excise Duty liability in its account during the year ended 31st March 2005. The company has however not provided for interest on demand of Rs 1,60,29,381/-from the date of order.

3 in pursuance of the order dated 16th March 2005 of Assistant Commissioner, Central Excise. Mahad. the Company has been held liable for demand of short payments arising out of the finalisation of the provisional assessment of its finished products Fur Fabrics. In pursuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 2,29,16,596/- towards Central Excise Duty payable on goods cleared by Company during the period from 24.03.1987 to 31.05.1994 the company accordingly provided a sum of Rs 2,29,16,596/- towards Central Excise Duty liability in its account during the year ended 31st Mardr2O05.

4. In pursuance of the order dated 19th December, 2006 of The Commissioner, Central Excise (ADJ), Mumbai, the Company has been held liable for demand of duty under section 11 A (2) of Central Excise Act, 1944 for Rs 2,22,34,776/- and also penalty imposed of Rs 2,00,91,308/- u/s 11 AC and Rs 5,00,000/- under rule 209 of CER.1944 regarding its deemed export transactions under 100% EOU with GCU Ltd, during the period August 1996 to July 1998. Although the company has disputed the same and filed appeal against the same before the Appellate Tribunal u/s 35B of the Central Excise Act, the Company has provided for total amount of Duty and Penalty amounting to Rs 4,26,26,086/- towards Central Excise Duty liability in ils accounts during the year ended 31 st March 2007. The adjustments if any will be made In the books of accounts in the year as & when the appeal is decided.

5. In the opinion of the Board of Directors the company except that there would be no liabilty of custom duty & other charges payable Rs 556.00 Lacs (Approx) on raw materials imported under Duty Exemption Scheme for non - fulfilment of Export obligation due to major fire in the factory premises of the company on 26th May 1993, hence no provision for the same has been made in the books of account.

6. In the opinion of the Board of Directors, all the assets other than Fixed Assets and Non Current Investments have a value on realisation in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet,

7. a) Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 01/02/1997 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available Information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.

b) Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 23.07.96 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.The company Is therefore not in a position to ascertain the quantum of liability if any arising and therefore the same will be provided as and when demand is raised.

8. RELATED PARTY TRANSACTIONS :

As per Accounting Standard -18 on "Related Party Disclosure", related parties of the Company are disclosed below :

A. List of Related Parties (As certified by the management).

1) Associate Companies

1. Premier Consultant & Traders Limited

2) Key Management Personnel Including Relatives

a) Shri M O Shanbhag - Director

b) Shri Rajendra M Bolya - Director

B. Transactions with related parties



Nature of Transactions 2011-12 2010-11 (RS) (RS)

Loans, Advances and Deposits Received 996500 1153500





9. SEGMENT REPORTING

The Company Is operating in one segment only i.e. Textiles, but during the year there is no business conducted by the Company, hence no segment reporting is given.

10. There are no Micro, Small and Medium Enterprises, as provided under the Micro, Small and Medium Enterprises Development Act, 2006, to whom the company owes dues, which are outstanding for more than 45 days as at Balance Sheet date.

11. In view or the Losses during the year, the company does not have taxable Income, hence the Provision for current Income Tax has not been made.

12. The Revised Schedule VI has become effective from 1 April 2011 for the preparation of Financial Statements. This has significantly impacted the disclosures and presentation made In these Financial Statements. Previous year's figures have been regrouped / rearranged / reclassified wherever necessary to confirm with current year's classification / disclosure.

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Mar 31, 2011

1a In pursuance of the order dated 24th September 2002 of Supreme Court, the company has been held liable for payment of Excise duty on its Finished product (Fur Fabrics). In pursuance of the said order the Central Excise Authorities has asked the company to pay amount of Rs 1,45,78,305/- towards Central Excise duty payable on the goods cleared by the company during the period from 20.10.1987 to 31.07.1990. The company has accordingly provided a sum of Rs 1,45,78,305/- towards Central excise duty liability in its accounts during the year ended 31st March 2003. the company has however not provided for interest on the demand of Rs 1,45,78,305/- from the date of the Order of the Hon'ble Supreme Court.

b. In pursuance of the order dated 30th November 2004 of Additional Commissioner, Central Excise, Mahad, the Company has been held liable for demand of BED, AED, and AD (T & T) under section 11 A of Central Excise Act, 1944 on its finished products Fur Fabrics. In persuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 1,60,29,381/- towards Central Excise Duty payable on goods cleared by Company during the period from sept 1996 to nov 2000 the company accordingly provided a sum of Rs 1,60,29,381/- towards Central Excise Duty liability in its account during the year ended 31st March 2005. The company has however not provided for interest on demand of Rs 1,60,29,381/- from the date of order.

c. In pursuance of the order dated 16th March 2005 of Assistant Commissioner, Central Excise, Mahad, the Company has been held liable for demand of short payments arising out of the finalisation of the provisional assessment of its finished products Fur Fabrics. In persuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 2,29,16,596/- towards Central Excise Duty payable on goods cleared by Company during the period from 24.03.1987 to 31.05.1994 the company accordingly provided a sum of Rs 2,29,16,596/- towards Central Excise Duty liability in its account during the year ended 31st March 2005.

d. In pursuance of the order dated 19th December, 2006 of The Commissioner, Central Excise (ADJ), Mumbai, the Company has been held liable for demand of duty under section 11 A (2) of Central Excise Act, 1944 for Rs 2,22,34,778/- and also penalty imposed of Rs 2,00,91,308/- u/s 11 AC and Rs 5,00,000/- under rule 209 of CER,1944 regarding its deemed export transactions under 100% EOU with GCU Ltd. During the period August 1996 to July 1998. Although the company has disputed the same and filed appeal against the same before the Appellate Tribunal u/s 35B of the Central Excise Act, the Company has provided for total amount of Duty and Penalty amounting to Rs 4,28,26,086/- towards Central Excise Duty liability in its accounts during the year ended 31st March 2007. The adjustments if any will be made in the books of accounts in the year as & when the appeal is decided.

2 In pursuance of the assessment proceedings before the Sales Tax officer, the company has received demand notices from Sales tax Office under the Bombay Sales Tax Act & Central Sales Tax Act in respect of the following financial years.

Although the company has disputed the same and filed appeal against the same before The Sales Tax Tribunal, Mumbai the company has provided for the total demand amount of Rs 18,24,980/- towards Sales Tax liability in its accounts during the year ended 31st March 2007. The adjustment if any will be made in the books of accounts in the year as and when the appeal is decided.

3.In the opinion of the Board of Directors the company except that there would be no liabilty of custom duty & other charges payable Rs 558.00 Lacs (Approx) on raw materials imported under Duty Exemption Scheme for non - fulfilment of Export obligation due to major fire in the factory premises of the company on 28th May 1993, hence no provsion for the same has been made in the books of account.

4 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realization in the ordinary course of business atleast equal to the amount stated in the balance sheet unless otherwise stated.

5 a Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 01/02/1997 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.

b Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 23.07.98 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available information and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.The company is therefore not in a position to ascertain the quantum of liability if any arising and therefore the same will be provided as and when demand is raised.

6 The Company's claim for Cash Compensatory Support (CCS) against its Deemed Exports was rejected by the concerned authorities of the Joint Chief Controller of Imports and Exports against which though a writ petition filed by the Company was admitted by the Bombay High Court, The Honourable Court in its judgement dated 12.03.2010 has given an order for a claim of Rs 3,14,621/- as against the CCS claim of Rs 7,74,786/- for the year ended 31.03.1992 with an interest of 6% thereon from the date of petition. The above claim has been received by the Company and the same has been accounted during the year hence now no CCS claim will be receivable.

7 Related Party Disclosures :

a. List of Related Parties (As certified by the management).

1) Related Parties

1. Premier Consultant & Traders Limited

8 There are no Micro, Small and Medium Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at Balance Sheet date..

9 In view of the Losses during the year, the company doesnot have taxable Income, hence the Provision for current Income Tax has not been made.

10 The figures have been rounded off to the nearest rupee.

11 Previous year's figures have been regrouped and rearranged wherever considered necessary.

12 Additional information pursuant to the paragraphs 3, 4(c) and 4(d) of Part I of Schedule VI of The Companies Act, 1956 are either NIL or not applicable to the company.

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Mar 31, 2010

1 a In pursuance of the order dated 24th September 2002 of Supreme Court, the company has been held liable for payment of Excise duty on its Finished product (Fur Fabrics). In pursuance of the said order the Central Excise Authorities has asked the company to pay amount of Rs 1,45,78,305/- towards Central Excise duty payable on the goods cleared by the company during the period from 20.10.1987 to 31.07.1990. The company has accordingly provided a sum of Rs 1,45,78,305/- towards Central excise duty liability in its accounts during the year ended 31st March 2003. the company has however not provided for interest on the demand of Rs 1,45,78,305/- from the date of the Order of the Honble Supreme Court.

b In pursuance of the order dated 30th November 2004 of Additional Commissioner, Central Excise, Mahad, the Company has been held liable for demand of BED, AED. and AD (T & T) under section 11A of Central Excise Act, 1944 on its finished products Fur Fabrics. In persuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 1,60,29,381/- towards Central Excise Duty payable on goods cleared by Company during the period from sept 1996 to nov 2000 the company accordingly provided a sum of Rs 1,60,29,381/- towards Central Excise Duty liability in its account during the year ended 31st March 2005 The company has however not provided for interest on demand of Rs 1,60,29,381/- from the date of order.

c In pursuance of the order dated 16th March 2005 of Assistant Commissioner, Central Excise, Mahad, the Company has

been held liable for demand of short payments arising out of the finalisation of the provisional assessment of its finished products Fur Fabrics. In persuance of the said order the Central Excise authorities had asked the company to pay an amount of Rs 2,29,16,596/- towards Central Excise Duty payable on goods cleared by Company during the period from 24.03.1987 to 31.05.1994 the company accordingly provided a sum of Rs 2,29,16,596/- towards Central Excise Duty liability in its account during the year ended 31st March 2005.

d In pursuance of the order dated 19th December, 2006 of The Commissioner, Central Excise (ADJ), Mumbai, the Company has been held liable for demand of duty under section 11 A (2) of Central Excise Act, 1944 for Rs 2,22,34,778/- and also penalty imposed of Rs 2,00,91,308/- u/s 11 AC and Rs 5,00,000/- under rule 209 of CER.1944 regarding its deemed export transactions under 100% EOU with GCU Ltd. During the period August 1996 to July 1998. Although the company has disputed the same and filed appeal against the same before the Appellate Tribunal u/s 35B of the Central Excise Act, the aompany has provided for total amount of Duty and Penalty amounting to Rs 4,28,26,086/- towards Central Excise Duty liability in its accounts during the year ended 31st March 2007. The adjustments if any will be made in the books of accounts in the year as & when the appeal is decided.

Although the company has disputed the same and filed appeal against the same before The Sales Tax Tribunal, Mumbai the company has provided for the total demand amount of Rs 18,24,980/- towards Sales Tax liability in its accounts during the year ended 31st March 2007. The adjustment if any will be made in the books of accounts in the year as and when the appeal is decided.

2 In the opinion of the Board of Directors the company except that there would be no liabilty of custom duty & other charges payable Rs 558.00 Lacs (Approx) on raw materials imported under Duty Exemption Scheme for non - fulfilment of Export obligation due to major fire in the factory premises of the company on 28th May 1993, hence no provsion for the same has been made in the books of account.

3 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realization in the ordinary course of business atleast equal to the amount stated in the balance sheet unless otherwise stated.

4 a Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 01/02/1997 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available inofrmation and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.

b Some of the books and records of the company pertaining to previous financial years taken by the central excise authorities on 23.07.98 are still lying with concerened Authorities. The accounts for the previous financial years therefore were reconstructed and reconciled from available inofrmation and records. Adjustments as may be deemed necessary will be made in the accounts after the release of the Books and records by the concerned authorities.The company is therefore not in a position to ascertain the quantum of liability if any arising and therefore the same will be provided as and when demand is raised.

5 The Companys claim for Cash Compensatory Support (CCS) against its Downed Exports was rejected by the concerned authorities of the Joint Chief Controller of Imports and Exports against which though a writ petition filed by the Company was admitted by the Bombay High Court, The Honourable Court in its judgement dated 12.03.2010 has given an order for a claim of Rs 3,14,621/- as against the CCS claim of Rs 7,74,786/- for the year ended 31.03.1992 with an interest of 6% thereon from the date of petition. But the above is still not been received by the Company and the same will be accounted for in the year of receipt.

6 Related Party, Disclosures;

a. List of Related Parties (As certified by the management).

1) Related Parties

1. Premier Consultant & Traders Limited

7 There are no Micro, Small and Medium Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at Balance Sheet date. Further, the Company has neither paid nor payable any interest to any Micro, Small and Medium Enterprises on the Balance Sheet date. The above information 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.

8 In view of the Losses during the year, the company doesnot have taxable Income, hence the Provision for current Income Tax has not been made.

9 The figures have been rounded off to the nearest rupee.

10 Previous years figures have been regrouped and rearranged wherever considered necessary.

11 Additional information pursuant to the paragraphs 3, 4(c) and 4(d) of Part of Schedule VI of The Companies Act, 1956 are either NIL or not applicable to the company.