Enter the first few characters of Company and click 'Go'

Notes to Accounts of Pasupati Acrylon Ltd.

Mar 31, 2023

a) Includes premises cost of Rs.62.96 Lakh which is towards cost of premises,furniture & fixtures and air conditioners. Since separate breakup is not available,therefore depreciation has been charged on total cost at Straight Line Method.

b) Effective 1st April 2014, the Company had revised its estimated useful life of fixed assets, wherever appropriate, on the basis of useful life specified in Schedule II of the Companies Act, 2013. The carrying amount as on 1" April 2014 was depreciated over the revised remaining useful life. Based on technical evaluation, depreciation has been provided taking Plant & Machinery (except CPP Plant & Zero Liquid Discharge plant) & Captive Power Plant Life to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the useful life be taken to 25 years the depreciaton would have been Rs 186.41 Lakh (Previous year Rs. 219.20 Lakh) instead of Rs. 192.05 Lakh (Previous Year Rs. 224.83 lakh), resulting in excess charge of depreciation during the year by Rs. 5.64 Lakh. (Previous Year Rs. 5.63 Lakh).

Certain debit balances of sundry debtors are subject to confirmation and reconciliation. Difference, if any, shall be accounted for on such reconciliation. The Company \follows âsimplified approachâ for recognition of expected credit loss allowance on trade receivable. Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes expected credit loss allowance based on lifetime ECLs at each reporting date, right from initial recognition.

Credit risk is managed through credit approvals, establishing credit limits, continuous monitoring of creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company also assesses the financial reliability of customers taking into account the financial condition, current economic trends and historical bad debts and ageing of accounts receivables.

* Secured by hypothecation of book debts, raw-material, finished goods, semi-finished goods, consumable stores and spares including in transit and also secured by a second charge by way of mortgage of immovable properties both present and future and further guaranteed by the Managing Director.

Indian Bank has sanctioned Term Loan of Rs. 10800.00 Lacs for setting-up a 150 KL per day Grain based Ethanol Plant, which is yet to be availed.

a) Effective 1^st April 2014, the Company had revised its estimated useful life of fixed assets, wherever appropriate, on the basis of useful life specified in Schedule II of the Companies Act, 2013. The carrying amount as on 1^st April 2014 was depreciated over the revised remaining useful life.

b) Based on technical evaluation, depreciation has been provided taking Plant & Machinery (except CPP Plant & Zero Liquid Discharge Plant) & Captive Power Plant Life to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the useful life be taken to 25 years the depreciaton would have been Rs 186.41 Lakh (Previous year Rs. 219.20 Lakh) instead of Rs. 192.06 Lakh (Previous Year Rs. 224.83 lakh), resulting in excess charge of depreciation during the year by Rs. 5.65 Lakh (Previous Year Rs. 5.63 Lakh).

Reason for Variance

Note 1. Return on Equity, Net Profit Ratio and Return on Capital Employed: Decline in Profitability due to negative return on CPP Segment during the year caused by persistent fall in selling price due to excessive production capacity added in the market.

2. Return on Investment: Better Return from Investments in Liquid Funds.

35 Additional Regulatory Information

i) Title Deeds of all Immovable properties are held in the name of the company.

ii) The company does not have any investment property.

iii) During the year the company has not revalued its property,plant and Equipment (including right -of-Use Assets)

iv) During the year the company has not revalued its intangible assets

v) During the year the company has not granted any Loan or advance in the nature of loans to promoters, directors, KMPs and the

related parties (as defined under Companies Act, 2013), either severally or jointly with any other person that are:

a. repayable on demand : or

b. without specifying any terms or period of repayment,

vi) The company does not have Intangible assets under development

vii) No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

viii) The company has borrowings from banks or financial institiution on the basis of security of current assets and quarterly returns or statement of current assets filed by the company with banks or financial institutions are generally in agreement with books of accounts.

ix) The company is not declared wilful defaulter by any bank or financial Institution or other lender.

x) The company has not entered into any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

xi) No charges or satisfaction yet to be registered with ROC beyond the statutory period.

xii) The compnay has complied with the number of layers prescribed under clause (87) of section 2 of the act read with companies (Restriction on number of layers) rule 2017.

xiii) During the year any Scheme of Arrangements has not been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

xiv) Utilisation of Borrowed funds and share premium:-

A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

(B) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

37. Financial risk management objectives and policies

The Companyâs principal financial liabilities comprise loans and borrowings, trade and other payables . The main purpose of these financial liabilities is to support its operations. The Companyâs principal financial assets include investments, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk and credit risk. The Companyâs management advises on financial risks and the appropriate financial risk governance framework for the Company. The Companyâs financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companyâs policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist that have the appropriate skills, experience and supervision. It is the Companyâs policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below

i. 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 risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, trade payables, deposits and investments.

ii. Foreign Currency Risk

The Companyâs raw material are imported and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US$. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not Companyâs functional currency (INR).

The above sensitivity analysis is based on a reasonably possible change in the underlying foreign currency against the Indian rupee computed from historical data and is representative of the foreign exchange currency risk inherent in financial assets and financial liabilities reported at the reporting date.

(iii) Credit risk

Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

38. Disclosure as required under IND AS 108- Operating Segments Operating Segments:

a. Acrylic Fibre Division

b. Cast Polyproplyne Film Division (CPP Film)

Identification of Segments

The management monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit and loss and is measured consistently with profit and loss in the financial statements. The Operating segments have been identified on the basis of the nature of products.

Segment revenue and results

Expenses and Revenue that are directly identifiable with the segments are considered for determining the segment results. Expenses and Revenue which relate to the Company as a whole and not allocable to segments are included under unallocable expenditure and revenue respectively.

Segment assets and liabilities

Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable assets and liabilities, if any, represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.

SECONDARY SEGMENT (GEOGRAPHICAL SEGMENT)

The geographical segment has been considered as secondary segment. The analysis of geographical segment is based on the geographical location of the customers. The company operates primerly in India and has presence in international markets as well. Accordingly the company has considered domestic and export markets as the geographical segments.

41. Figures for the previous period have been regrouped / rearranged wherever considered necessary.

Mar 31, 2018

1. Company Overview

Pasupati Acrylon Limited is a public limited company domiciled in india incorporated under the provisions of the Indian Companies Act. The registered office is located at Thakurdwara,Distt.Moradabad(U.P), India. Its shares are listed on Bombay Stock Exchange (BSE). The Company is one of the leading manufacturer of Acrylic Fibre, Tow and Tops and was established in 1982 , the manufacturing facility is located at Thakurdwara, Distt. Moradabad, (UP) . The company has also during the year established plant to manufacture Cast Polyproplene Film (CPP Film) at Thakurdwara Distt. Moradabad (U.P.)

a) i) Since separate breakup of Rs. 62.96 Lakh being cost of office premises, furniture & fixtures and air conditioners at Mumbai are not available, depreciation has been provided on total cost as office premises.

ii) Includes cost of 5 shares (Previous year 5 shares) Rs.252 (Previous year Rs.252) in Arcadia Premises Co-operative Society Ltd., Mumbai.

b) Effective 1st April 2014, the Company had revised its estimated useful life of fixed assets, wherever appropriate, on the basis of useful life specified in Schedule II of the Companies Act, 2013. The carrying amount as on 1st April 2014 was depreciated over the revised remaining useful life. Based on technical evaluation, depreciation has been provided taking Plant & Machinery (except CPP Plant) & Captive Power Plant Life to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the useful life be taken to 25 years the depreciaton would have been Rs 276.02 Lakh (Previous year Rs. 305.21 Lakh for 31.03.2017 Rs.345.07 Lakh on 01.04.2016) instead of Rs. 330.26 Lakh (Previous Year Rs. 402.14 lakh for 31.03.2017 and Rs.636.27 Lakh for 01.04.2016), resulting in excess charge of depreciation during the year by Rs. 54.24 Lakh. (Previous Year Rs. 96.93 Lakh for 31.03.2017 and Rs.291.20 Lakh for 01.04.2016)

c) In pursuance of accounting standard 28 on impairment of assets (AS-28) issued by the Institute of Chartered Accountants of India, the company has reviewed the future earings of its cash generating units. Based on technical review the company has accounted for the impairment loss on ETP Equipments having value of Rs. NIL Lakh (Previous year 165.41 Lakh for 31.03.2017 and Nil for 01.04.2016) after considering the salvage value as the said equipment is unable to achive Zero liquid discharge of water and hence not further usable.

d) As reported in earlier years, the company had revalued its plant and machinery, resulting in net increase in its value by Rs. 7960.63 Lakh and created Revaluation Reserve to that an extent. The company has set off opening balance of Revaluation Reserve amounting Rs.1909.23 Lakh as on 01.04.2016, with the carrying amount of Fixed Asset, as the assets against which such revaluation reserve was created stands fully depreciated In View of above,the Gross Block and carry forward depreciation adjusted by revalued amount of Rs.7960.63 Lakh during previous year 31.03.2017 .

Certain debit balances of sundry debtors are subject to confirmation and reconciliation. Difference, if any, shall be accounted for on such reconciliation.

The Company follows âsimplified approachâ for recognition of expected credit loss allowance on trade receivable. Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes expected credit loss allowance based on lifetime ECLs at each reporting date, right from initial recognition.

a) Rupee Term Loan of Rs. NIL (Previous year 192.11 Lakh on 31.03.2017 and Rs. 583.47 Lakh on 01.04.2016) are secured by 1st charge on New Plant & Machinery on pari-passu basis. 2nd Pari-passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director.

b) Secured by hypothecation of specified assets acquired out of the loan amount There is no default as on the Balance Sheet date in repayment of loans and interest

* The Company has not received intimation from other 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 end together with interest paid / payable as required under the said Act have not been given.

** Includes liablities of Rs.228.33 Lakh (Previous year Rs. 167.31 Lakh as at 31.03.2017, Rs. Nil as at 01.04.2016) in respect of capital goods.

a) Company has repaid Working Capital Term Loan and Rupee Term Loan restructured under CDR in earlier years. However the respective charge with ROC is yet to be satisfied.

b) Loan of Rs. 197.18 Lakh (Previous year Rs.400 Lakh on 31.03.2017 and Rs. 400 Lakh on 01.04.2016) are secured by 1st charge on New Plant & Machinery on pari-passu basis. 2nd Pari-passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director

c) Vehicle Loan of Rs. 50.68 Lakh (Previous year Rs. 32.60 Lakh on 31.03.2017 and Rs. 30.56 Lakh on 01.04.2016 ) Secured by hypothecation of specified assets acquired out of the loan amount.

2. In the opinion of the board the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

b) Based on technical evaluation, depreciation has been provided taking Plant & Machinery (except CPP Plant) & Captive Power Plant Life to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the useful life be taken to 25 years, the depreciaton would have been Rs.276.02 Lakh (Previous year Rs. 305.21 Lakh) instead of Rs.330.26 Lakh (Previous year Rs. 402.14 Lakh), resulting in excess charge of depreciation during the year by Rs.54.24 Lakh(Previous Year Rs.96.93 Lakh)

c) In pursuance of accounting standard 28 on impairment of assets (AS-28) issued by the Institute of Chartered Accountants of India, the company has reviewed the future earnings of its cash generating units. Based on technical review the company has accounted for the impairment loss on certain Machinery having value of Rs. Nil (Previous year Rs. 165.41 Lakh) due to failure to perform, after considering saleable value, Rs. Nil (Previous year Rs.164.41 Lakh) has been written off in accounts.

Based on reference of Allahabad Bank, the lead bank, a financial restructuring package was approved by Empowered Group of Corporate Debt Restructuring (CDR- EG) at its meeting held on November 9, 2004, COD April 1, 2004. Since the company has repaid entire Term Loan and Working Capital Term Loan restructured under CDR as at 31.03.2016. Consequently recompense liability of Rs. 651.14 Lakh (Previous year Rs. 541.10 Lakh) has been provided as principally agreed by the lenders.

3 First Time Adoption of Ind AS

3.1 Transition to Ind AS

The Company has adopted The Indian Accounting Standards (âInd ASâ) prescribed under section 133 of the Companies Actâ 2013 from 1 April 2017 and accordingly financial statements have been prepared in accordance with the recognition and measurement principles laid down in the Ind AS, prescribed under Section 133 of the Companies Act 2013 read with the relevant rules issued thereunder. These are the Companyâs first financial statements prepared in accordance with Ind AS. The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet as at 1 April 2016 (the transition date).

In preparing the opening Ind AS balance sheet as at 1 April 2016, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). The impact of transition has been made in the Reserves as at 1 April 2016 in accordance with the Ind AS 101 and the figures of the previous year ended 1 April 2016 and 31 Mar 2017 have been presented/restated after incorporating the applicable Ind AS adjustments.

An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes.

3.2 Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows, from as reported in accordance with previous GAAP. The following tables represent the reconciliations from previous GAAP to Ind AS.

Explanatory Notes to First Time Adoption are as follows:

(a) (i) Transaction Cost on Borrowing

Under previous GAAP, transaction costs were charged to profit or loss as and when incurred. Under IND AS, transaction costs are deducted from the initial recognition amount of the financial liability and charged over the tenure of borrowing using the effective interest method.

(b) Defined benefit liabilities:

Under IND AS, Remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined liability, are recognized in other comprehensive income instead of profit or loss in previous GAAP.

Tax impact includes deferred tax impact, wherever applicable as per provisions of Ind AS 12 (Income Taxes), on account of difference between previous GAAP and Ind AS.

(d) Expected credit loss allowance

In determining the allowances for doubtful trade receivables, the company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.

(e) Fair valuation of Investments

The Company have considered fair value for Investments in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the reserves.

(f) Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as âother comprehensive incomeâ includes re-measurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

4. Financial risk management objectives and policies

(i) Market Risk

(ii) Foreign Currency Risk

(iii) Credit Risk

5. Disclosure as required under IND AS 108- Operating Segments

Operating Segments:

a. Acrylic Fibre Division

b. Cast Polyproplyne Film Division (CPP Film)

Identification of Segments

Segment revenue and results

Segment assets and liabilities

6. Figures for the previous period have been regrouped / rearranged wherever considered necessary.

Mar 31, 2016

(a) Depreciation amounting to Rs. Nil (Previous year Rs. 48.08 Lac, net of deferred tax assets of Rs. 21.50 lac) had been debited to opening balance of profit and loss account, in case of assets where remaining useful life is Nil in compliance with Schedule II of the Companies Act, 2013.

1. Long Term Borrowings

a) Loan of Rs.597.95 Lac(Previous year Rs.998 Lac) are secured by 1st charge on New Plant & Machinery on pari-passu basis. 2nd Pari-passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director.

b) Secured by hypothecation of specified assets acquired out of the loan amount.

There is no default as on the Balance Sheet date in repayment of loans and interest.

2. Short Term Borrowings

(a) Secured by hypothecation of book debts, raw-material, finished goods, semi-finished goods, consumable stores and spares including in transit and also secured by a second charge by way of mortgage of immovable properties both present and future and further guaranteed by the managing director.

3. Other Current Liabilities

a) Loans of Rs. Nil (Previous year Rs.281.92 Lac) are secured interse on pari-passu basis by way of mortgage of immovable properties and hypothecation of all movable properties (save and except book debts) both present and future subject to prior charges created in favour of companyâs bankers for working capital facilities and further guaranteed by the Managing Director. Company has repaid Working Capital Term Loan and Rupee Term Loan restructured under CDR during the year on 31.03.2016. However the respective charge with ROC is yet to be satisfied.

b) Loan of Rs.400 Lac(Previous year Rs.400 Lac) are secured by 1st charge on New Plant & Machinery on pari-passu basis. 2nd Pari-passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director

c) Vehicle Loan of Rs.30.56 Lac (Previous year Rs. 2.06 Lac ) Secured by hypothecation of specified assets acquired out of the loan amount.

$ Includes depreciation on revaluation of Rs. 663.82 Lac (Previous Year Rs.727.05 Lac) Netted from revaluation reserve.

# Depreciation amounting to Rs. Nil (Previous Year Rs. 69.58 Lac) had been debited to opening balance of profit and loss account, in case of assets where remaining useful life is Nil in compliance with Schedule II of the Companies Act, 2013.

a) i) Since separate breakup of Rs. 62.95 Lac being cost of office premises, furniture & fixtures and air conditioners at Mumbai are not available, depreciation has been provided on total cost as office premises.

ii) Includes cost of 5 shares (Previous year 5 shares) Rs.252 (Previous year Rs.252) in Arcadia Premises Co-operative Society Ltd., Mumbai.

b) The company revalued its imported Plant & Machinery as on 31.03.2001 based on the valuation made by an approved valuer. Accordingly, the original cost of such assets resulted in gross increase in the value of assets over their original cost by Rs.8585.83 Lac, increase in depreciation up to 30.03.2001 by Rs.2682.44 Lac and thereby net increase in replacement cost by Rs.5903.39 Lac. The net increase of Rs.5903.39 Lac in the value of such plant & machinery had been credited to revaluation reserve account.

c) Revaluation of indigenous plant & machinery was carried out as on 31.03.2002 by an approved valuer. The revaluation resulted in a gross increase in the value of assets over their original cost by Rs.3981.77 Lac, increase in depreciation upto 30.03.2002 by Rs.1930.53 Lac and thereby net increase in replacement cost by Rs.2051.24 Lac which has been taken as increase in the value of plant & machinery as on 31.03.2002 by creating a revaluation reserve to that an extent

d) Based on technical evaluation, depreciation has been provided taking Plant & Machinery & Captive Power Plant Life to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the useful life be taken to 25 years the depreciaton would have been Rs. 345.07 Lac (Previous Year Rs.514.10 Lac) instead of Rs.636.27 Lac (Previous Year Rs.732.16 Lac), resulting in excess charge of depreciation during the year by Rs.291.20 Lac. (Previous Year Rs.218.06 Lac)

a) In terms of Accounting Standard -22, Net Deferred Tax Liability of Rs.1389.51 Lac (Previous year Rs.667.09 Lac) has been recognized during the year and consequently Deferred Tax Assets as on 31st March, 2016 stands at Rs 298.00 Lac (Previous year Rs. 1687.51 Lac) there is carried forward unabsorbed depreciation and business loss at the balance sheet date. Based on future profitability projections, the company is certain that there would be sufficient taxable income in future, to claim the above tax credit.

b) Deferred Tax Assets Rs. Nil (Previous Year Rs.21.50 Lac) has been debited against opening balance of profit & loss account.

4. In the opinion of the board the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5. Depreciation & Amortization Expense

a) Effective 1st April 2014, the Company had revised its estimated useful life of fixed assets, wherever appropriate, on the basis of useful life specified in Schedule II of the Companies Act, 2013. The carrying amount as on 1st April 2014 was depreciated over the revised remaining useful life. As a result of these changes, the depreciation charged for the period ended 31st March, 2015 was higher by Rs.46.97 Lac and the effect relating to the period prior to 1st April, 2014 is Rs.48.08 Lac (Net of Deferred Tax Assets of Rs.21.50 Lac) which had been debited to opening balance of profit & loss account.

b) Based on technical evaluation, depreciation has been provided taking Plant & Machinery & Captive Power Plant Life to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the useful life be taken to 25 years, the depreciation would have been Rs. 345.07 Lac (Previous Year Rs.514.10 Lac) instead of Rs.636.27 Lac (Previous year Rs.732.16 Lac), resulting in excess charge of depreciation during the year by Rs.291.20 Lac. (Previous Year Rs.218.06 Lac)

6. Exceptional Items

(a) Exceptional item of Rs.307.76 Lac (Previous year Rs. Nil) is towards recompense amount payable to lenders on exit from Corporate Debt Restructuring Mechanism (CDR) in accordance with approved CDR scheme.

b) In pursuance of accounting standard 28 on impairment of assets (AS-28) issued by the Institute of Chartered Accountants of India, the company has reviewed the future earning of its cash generating units. Based on such review the company had accounted for the impairment loss on certain machinery having value of Rs. Nil (Previous year Rs.479.68 Lac) due to change in technology. In absence of reserves Rs. Nil (Previous year Rs.347.11 Lac) impairment loss has been reflected under exceptional item.

7. It is the managementâs opinion that since the company is exclusively engaged in the activity of manufacture of Acrylic Fibre, Tow/ Tops, which are considered to constitute a single reportable segment in the context of Accounting Standard on âSegment Reportingâ issued by the Institute of Chartered Accountants of India. However during the year steps are being taken to put up a CPP Film Project.

8. As reported in earlier years, an employee of the Company defrauded Rs.126 Lac (Previous year Rs.126 Lac) in connivance with certain customers. Criminal proceedings against the employee is being pursued.

9. Foreign Currency exposure that are not hedged by derivative instrument or forward contracts as at 31.3.2016 amounts to Rs.6997.57 Lac (US$105.61 Lac)(Previous Year 10837.98 Lac (US$ 172.58 Lac)

10. Figures for the previous year have been regrouped / rearranged wherever considered necessary.

11. Based on reference of Allahabad Bank, the Lead Bank, a financial restructuring package was approved by Empowered Group of Corporate Debt Restructuring (CDR-EG) at its meeting held on November 09, 2004, COD April 1, 2004. During the year, the Company paid entire term loan and working capital term loan restructured under CDR. Consequently, the recompense liability of Rs.307.76 Lac has been provided as determined in the restructuring scheme.

Mar 31, 2015

1. Share Capital

a) Authorised

@ Does not include 15800 Shares (Previous year 15800 Shares) forfeited in earlier years, amount forfeited Rs.0.79 lacs (Previous year Rs.0.79 lacs) included in share capital subscribed and paid up.

Presently no options are available on un-issued share capital except convertibility clause(s), which can be exercised by the Financial Institution(s) in terms of loan agreement(s).

Details of shares in the company held by each shareholder holding more than 5% of shares is as under:

(a) Depreciation amounting to Rs. 48.08 Lac (net of deferred tax asset of Rs. 21.50 lac) has been debited to opening balance of profit and loss account, in case of assets where remaining useful life is Nil in compliance with Schedule II of the Companies Act, 2013.

a) Loans of Rs.Nil (Previous year Rs.281.66 Lacs) are secured interse on pari-passu basis by way of mortgage of immovable properties and hypothecation of all moveable properties (save and except book debts) both present and future subject to prior charges created in favour of company''s bankers for working capital facilities and further guaranteed by the managing director.

b) Secured by hypothecation of specified assets acquired out of the loan amount.

c) Loan of Rs.998 Lacs (previous year Rs.1400 lacs) are secured by 1st charge on New Plant & Machinery on pari-passu basis. 2nd Pari- passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director.

There is no default as on the Balance Sheet date in repayment of loans and interest.

The above loans are repayable as follows:

(a) Secured by hypothecation of book debts, raw-material, finished goods, semi-finished goods, consumable stores and spares including in transit and also secured by a second charge by way of mortgage of immovable properties both present and future and further guaranteed by the Managing Director.

a) Loans of Rs. 281.92 Lacs (Previous year Rs.263.92 Lacs) are secured interse on pari-passu basis by way of mortgage of immovable properties and hypothecation of all moveable properties (save and except book debts) both present and future subject to prior charges created in favour of company''s bankers for working capital facilities and further guaranteed by the Managing Director.

b) Loan of Rs.400 Lacs(Previous year Rs.400 Lacs) are secured by 1st charge on New Plant & Machinery on pari-passu basis. 2nd Pari- passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director

c) Vehicle Loan of Rs.2.06 Lacs (Previous year Rs. 25.09 Lacs ) Secured by hypothecation of specified assets acquired out of the loan amount.

$ Includes depreciation on revaluation of Rs. 727.05 Lacs (Previous Year Rs.738.01 Lacs) Netted from revaluation reserve.

# Depreciation amounting to Rs. 69.58 Lac has been debited to opening balance of profit and loss account, in case of assets where remaining useful life is Nil in compliance with Schedule II of the Companies Act, 2013.

a) i) Since separate breakup of Rs. 62.95 lacs being cost of office premises, furniture & fixtures and air conditioners at Mumbai are not available, depreciation has been provided on total cost as office premises. ii) Includes cost of 5 shares (Previous year 5 shares) Rs.252 (Previous year Rs.252) in Arcadia Premises Co-operative Society Ltd., Mumbai.

b) The company revalued its imported plant & machinery as on 31.03.2001 based on the valuation made by an approved valuer. Accordingly, the original cost of such assets resulted in gross increase in the value of assets over their original cost by Rs.8585.83 lacs, increase in depreciation upto 30.03.2001 by Rs.2682.44 Lacs and thereby net increase in replacement cost by Rs.5903.39 Lacs. The net increase of Rs. 5903.39 Lacs in the value of such plant & machinery had been credited to revaluation reserve account.

c) Revaluation of indigenous plant & machinery was carried out as on 31.03.2002 by an approved valuer. The revaluation resulted in a gross increase in the value of assets over their original cost by Rs.3981.77 Lacs, increase in depreciation upto 30.03.2002 by Rs.1930.53 Lacs and thereby net increase in replacement cost by Rs.2051.24 Lacs which has been taken as increase in the value of plant & machinery as on 31.03.2002 by creating a revaluation reserve to that an extent

d) During the Year based on technical evaluaiton Depreciation has been provided taking Plant & Machinery & Captive Power Plant Life to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the life be taken to 25 years the depreciaton would have been Rs. 514.10 Lacs, instead of Rs.732.16 Lacs, resulting in excess charge of depreciation during the year by Rs.218.06 Lac.

e) Refer note No.30 (b) for impairment of Assets during the year

a) In terms of Accounting Standard -22, net Deferred Tax (Liability) of (Rs.667.09 Lac) (Previous Year Liability of Rs.476.08 Lac) has been recognized during the year and consequently Deferred Tax Assets as on 31st March, 2015 stands at Rs 1687.51 Lac (Previous year Rs. 2354.60 Lac) there is carried forward unabsorbed depreciation and business loss at the balance sheet date. Based on future profitability projections, the company is certain that there would be sufficient taxable income in future, to claim the above tax credit.

b) Deferred Tax Assets Rs.21.50 lac h as been debited against opening balance of Profit & Loss account.

*includes goods in transit Rs.4956.05 Lacs (Previous year Rs.5119.38 Lacs ) ** includes goods in transit Rs.2.88 Lacs (Previous year Rs.3.75 Lacs)

a) As reported in earlier years, an employee of the Company defrauded Rs.126 Lacs (Previous year Rs.126 Lacs) in connivance with certain customers. Criminal proceedings against the employee is being pursued.

b) Certain debit balances of sundry debtors are subject to confirmation and reconciliation. Difference, if any, shall be accounted for on such reconciliation.

a) Effective from 1st April 2014, the Company has revised its estimated useful life of fixed assets, wherever appropriate, on the basis of useful life specified in Schedule II of the Companies Act, 2013. The carrying amount as on 1st April 2014 is depreciated over the revised remaining useful life. As a result of these changes, the depreciation charged for the period ended 31st March, 2015 is higher by Rs.46.97 Lac and the effect relating to the period prior to 1st April, 2014 is Rs.48.08 Lac (Net of Deferred Tax Assets of Rs.21.50 Lac) which has been debited to opening balance of Profit & Loss account.

b) During the Year based on technical evaluation Depreciation has been provided considering useful life of Plant & Machinery & Captive Power Plant to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the useful life been taken as 25 years, the depreciaton would have been Rs. 514.10 Lacs, instead of Rs.732.16 Lacs, resulting in excess charge of depreciation during the year by Rs.218.06 Lac.

a) In earlier year, Company had detected a fraud committed by an employee amounting to Rs. 145.93 Lacs. An FIR was filed and said employee was arrested. Later with the intervention of court a settlement arrived at and Rs. 140.01 lacs has been recovered by way of cash and confiscation of various properties. For balance of Rs. 5.92 lacs, the company filed a claim with ICICI Lombard under Fidelity Guarantee Insurance Policy which has been received subsequently. The amount recovered in respect of earlier years has been credited to exceptional income.

b) In pursuance of accounting standard 28 on impairment of assets (AS-28) issued by the Institute of Chartered Accountants of India, the company has reviewed the future earings of its cash generating units. Based on such review the company has accounted for the impairment loss on certain machinery having value of Rs.479.68 Lacs due to change in technology. In absence of reserves Rs.347.11 Lacs impairment loss has been reflected under exceptional item.

2. Related Party Disclosure:

Related Party disclosures, as required by AS-18 "Related Party Disclosures" are given below:- 1. Relationship

(i) Subsidiaries Companies NIL

(ii) Joint Venture/Joint Control & Associates NIL

(iii) Key management personnel (Whole Time Directors)

Mr.Vineet Jain-Managing Director Mr. Rakesh Mundra-Director (Finance)

Relatives of key management personnel (with whom transactions have taken place.) Mr.Manish Jain-Brother

(iv) Enterprises over which key management personnel/relative have significant influence

Prabhat Capital Services Ltd Accurex Traders Pvt. Ltd.

Gurukripa Finvest Pvt Ltd Ujjwal Commodities Pvt.Ltd.

Sulabh Plantation & Finance Pvt.Ltd.

(v) Other related parties

Pasupati Officer''s Provident Fund Trust

The Pasupati Acrylon Ltd. Employees Superannuation Scheme The Pasupati Acrylon Ltd. Employees Group Gratuity Scheme

Note: Related party relationship is as identified by the company and relied upon by the auditors.

3. It is the management''s opinion that since the company is exclusively engaged in the activity of manufacture of Acrylic Fibre, Tow/ Tops, which are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

4. Foreign Currency exposure that are not hedged by derivative instrument or forward contracts as at 31.3.2015 amounts to Rs.10837.98 Lac (US$ 172.58 Lac) (Previous year Rs.10919.36 Lac) (US$ 180.75 Lac)

5. Figures for the previous year have been regrouped / rearranged wherever considered necessary.

6. Value of imported / indigenous Raw materials, Stores & spares consumed

Mar 31, 2014

1. Contingent Liabilities and Commitments (To the extent not provided for)

Particulars Amount (Rs./Lacs) As at 31.3.2014 As at 31.3.2013

a) Estimated amount of contracts - - remaining to be executed on capital account and not provided for (net of advances)

b) Contingent liabilities not provided for in respect of

i.Guarantee(s) given by banks and financial institutions 114.50 554.80

ii.Letters of Credit outstanding 108.74 829.88

iii.Sales Tax/Excise Duty/Custom Duty/Other Statutory dues/ 519.26 555.56

Service Tax disputed

iv.Labour Cases disputed In appeal 10.89 16.78

2. In the opinion of the board the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

For year ended 31st March 2014 Remuneration paid to Managing Director is in accordance with Schedule XIII of the Companies Act, 1956. In respect ot year ended 31st March 2013, upto 30.09.2012 it has been paid as per Central Government''s approval and from 1.10.12 to 31.03.13 as per Schedule XIII of the Companies Act, 1956.

The Estimates of rate of future salary increase takes account inflation, seniority, promotion and other relevant factors on long term basis. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of liability. The above information is certified by the actuary.

a) During the year Company detected a fraud committed by an employee amounting to Rs. 145.93 Lacs. An FIR was filed and said employee was arrested. Later with the intervention of court a settlement arrived at and Rs. 140.01 lacs has been recovered by way of cash and confiscation of various properties. For balance of Rs. 5.92 lacs, the company filed a claim with ICICI Lombard under Fidelity Guarantee Insurance Policy which has been received subsequently. The amount recovered in respect of earlier years has been credited to exceptional income.

b) Also refer Note No. 33.

3. Related Party Disclosure:

Related Party disclosures, as required by AS-18 "Related Party Disclosures" are given below:- 1. Relationship

(i) Subsidiaries Companies NIL

(ii) Joint Venture/Joint Control & Associates NIL

(iii) Key management personnel (Whole Time Directors)

Mr.Vineet Jain-Managing Director Mr.Rakesh Mundra-Director (Finance)

Relatives of key management personnel (with whom transactions have taken place.) Mr.Manish Jain-Brother (iv) Enterprises over which key management personnel/relative have significant influence

Prabhat Capital Services Ltd Accurex Traders Pvt. Ltd.

Gurukripa Finvest Pvt Ltd Ujjwal Commodities Pvt.Ltd.

Sulabh Plantation & Finance Pvt.Ltd.

(v) Other related parties

Pasupati Officer''s Provident Fund Trust

The Pasupati Acrylon Ltd. Employees Superannuation Scheme

The Pasupati Acrylon Ltd. Employees Group Gratuity Scheme

2. The following transactions were carried out with related parties in the ordinary course of business.

4 . Depreciation on new plant & machinery and power plant which was hitherto provided at straight line method has been recomputed at the rates prescribed in schedule XIV of the Companies Act, 1956 on written down value method with retrospective effect. As a result of above change:-(i) The increase in depreciation of Rs.454.86 Lacs in respect of earlier year has been shown as an exceptional item in order to reflect a more appropriate presentation of financial statements.(ii) Deffered tax asset of Rs.140.55 Lacs on said amount has been adjusted against the current year''s Deferred Tax Liability.Consequently depreciation for the year is higher by Rs.345.89 Lacs, the profit after tax including exceptional item is lower by Rs.553.33 Lacs & deferred tax asset higher by Rs.247.43 Lacs (includes Rs.140.55 Lac for earlier year) and Fixed Assets is lower by Rs.800.76 Lacs respectively

5. It is the management''s opinion that since the company is exclusively engaged in the activity of manufacture of Acrylic Fibre, Tow/ Tops, which are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

6. Foreign Currency exposure that are not hedged by derivative instrument or forward contracts as at 31.3.2014 amounts to Rs.10919.36 Lac (US$ 180.75 Lac) (Previous year Rs.13276.18 Lac; US$ 244.50 Lac).

7. Figures for the previous year have been regrouped / rearranged wherever considered necessary.

8. Company has during the year spent Rs. 32.45 lacs (Previous Year Rs. Nil) on Corporate Social Responsibility activities in Thakurdwara area.

Mar 31, 2013

1. In the opinion of the board the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

2. Related Party Disclosure:

Related Party disclosures, as required by AS-18 "Related Party Disclosures" are given below:-

1. Relationship

(i) Subsidiaries Companies NIL

(ii) Joint Venture/Joint Control & Associates NIL

(iii) Key management personnel (Whole Time Directors)

Mr.Vineet Jain-Managing Director Mr. Rakesh Mundra-Director (Finance)

Relatives of key management personnel (with whom transactions have taken place.) Mr.Manish Jain-Brother

(iv) Enterprises over which key management personnel/relative have significant influence

Prabhat Capital Services Ltd Accurex Traders Pvt. Ltd.

Gurukripa Finvest Pvt Ltd Ujjwal Commodities Pvt.Ltd.

Sulabh Plantation & Finance Pvt.Ltd.

(iv) Other related parties

Pasupati Officer''s Provident Fund Trust

The Pasupati Acrylon Ltd. Employees Superannuation Scheme The Pasupati Acrylon Ltd. Employees Group Gratuity Scheme

3. It is the management''s opinion that since the company is exclusively engaged in the activity of manufacture of Acrylic Fibre, Tow/ Tops, which are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

4. Foreign Currency exposure that are not hedged by derivative instrument or forward contracts as at 31.03.2013 amount to Rs.13276.18 lacs (US$ 244.50 Lacs ) (Previous Year Rs. 13428.22 Lacs - US$ 263.92 Lacs)

5. Figures for the previous year have been regrouped / rearranged wherever considered necessary.

6. Value of imported / indigenous Raw materials, Stores & spares consumed

Mar 31, 2012

1. Figures in brackets represent cash outflow.

2. Cash flow does not include non cash items.

3. Cash and cash equivalents includes balance in fixed deposit/margin money account Rs.1272.07 Lacs(Previous Year Rs.724.81 Lacs)

1. Long Term Borrowings

a) Loans of Rs.784.97 Lacs (Previous year Rs.1003.21 lacs) are secured interse on pari-passu basis by way of mortgage of immovable properties and hypothecation of all moveable properties (save and except book debts) both present and future subject to prior charges created in favour of company's bankers for working capital facilities and further guaranteed by the managing director.

b) Secured by hypothecation of specified assets acquired out of the loan amount.

c) Loan of Rs.2200 Lacs(previous year Rs.1500 lacs) are secured by 1" charge on New Plant & Machinery on pari-passu basis. 2nd Pari-passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director.

There is no default as on the Balance Sheet date in repayment of loans and interest.

(a) Secured by hypothecation of book debts, raw-material, finished goods, semi-finished goods, consumable stores and spares including in transit and also secured by a second charge by way of mortgage of immovable properties both present and future and further guaranteed by the managing director.

The Company has not received intimation from vendors regarding the status under the Micro, Small and Medium Enterprises Development Act, 2006 and therefore, disclosures under this Act have not been given.

2. Other Current Liabilities

a) Loans of Rs. 218.24 Lacs (previous year Rs.258.12 Lacs) are secured interse on pari-passu basis by way of mortgage of immovable properties and hypothecation of all moveable properties (save and except book debts) both present and future subject to prior charges created in favour of company's bankers for working capital facilities and further guaranteed by the Managing Director.

b) Loan of Rs.400 Lacs(previous year Rs.Nil) are secured by 1st charge on New Plant & Machinery on pari-passu basis. 2nd Pari- passu charge by way of hypothecation of current assets of the Company, subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director

c) Vehicle Loan of Rs. 19.38 Lacs (Previous year Rs. 17.00 Lacs ) Secured by hypothecation of specified assets acquired out of the loan amount.

a) Include Rs. Nil (Previous year Rs.9.90 Lacs) towards land for housing colony held by the company under a 30 year lease agreement from 12.10.1992. In the current year, lease has been surrendered.

b) i) Since separate breakup of Rs. 62.95 lacs being cost of office premises, furniture & fixtures and air conditioners at Mumbai are not available, depreciation has been provided on total cost as office premises.

ii) Includes cost of 5 shares (previous year 5 shares) Rs.252 (previous year Rs.252) in Arcadia Premises Co-operative Society Ltd., Mumbai.

c) The company revalued its imported plant & machinery as on 31.03.2001 based on the valuation made by an approved valuer. Accordingly, the original cost of such assets resulted in gross increase in the value of assets over their original cost by Rs.8585.83 lacs, increase in depreciation upto 30.03.2001 by Rs.2682.44 Lacs and thereby net increase in replacement cost by Rs.5903.39 Lacs. The net increase of Rs.5903.29 Lacs in the value of such plant & machinery had been credited to revaluation reserve account.

d) Revaluation of indigenous plant & machinery was carried out as on 31.03.2002 by an approved valuer. The revaluation resulted in a gross increase in the value of assets over their original cost by Rs.3981.77 Lacs, increase in depreciation upto 30.03.2002 by Rs.1930.53 Lacs and thereby net increase in replacement cost by Rs.2051.24 Lacs which has been taken as increase in the value of plant & machinery as on 31.03.2002 by creating a revaluation reserve to that extent

3. Deferred Tax Assets

In terms of Accounting Standard -22, net deferred tax assets (DTA) of Rs.2395.83 Lacs (Previous Year : Deferred Tax Assets of Rs.2015.10 lacs) has been recognized during the year and consequently DTA as on March 3T' 2012 stands at Rs.2395.83 Lacs (Previous year Rs. 2015.10 Lacs) there is carried forward unabsorbed depreciation and business loss at the balance sheet date. However, based on future profitability projections, the company is virtually certain that there would be sufficient taxable income in future, to claim the above tax credit. Deferred tax assets of Rs. 2015.10 Lacs relating to the period up to 31st March 2011 has been credited to opening debit balance of profit & Loss account.

a. As reported in earlier years, an employee of the Company defrauded Rs.126 Lacs (Previous year Rs.126 Lacs) in connivance with certain customers. Legal proceedings against the employee and customers are being pursued. The defrauded amount has been fully provided in the year of fraud.

b. Certain debit balances of sundry debtors are subject to confirmation and reconciliation. Difference, if any, shall be accounted for on such reconciliation.

(a) Includes Rs. Nil (Previous year Rs.127.21 lacs in Trust Retention Account for Capital Expenditure) Bank Deposits with more than 12 months maturity Rs. 508.42 Lacs (Previous year Rs. 125.02 Lacs).

4. Short Term Loans & Advances

(Unsecured-considered good)

(a) As reported in earlier years, DEPB licenses of Rs. 27.01 Lacs (Previous Year Rs. 27.01 Lacs) Purchased were found forged. The amount was provided for in the year of fraud. Legal proceedings are being pursued for recovery of balance amount.

5. Other Current Assets

During the year Excise duty payable on closing stock of Rs.376.80 lacs (Previous Period Rs. 506.51 lacs) has been adjusted against balance with Custom & Excise. 21. Contingent Liabilities and Commitments (To the extent not provided for) Un-provided contingent liabilities are disclosed in the accounts by way of notes giving nature and quantum of such liabilities.

6. In the opinion of the board the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

7. Earning Per Share (EPS)

8. Related Party Disclosure:

Related Party disclosures, as required by AS-18 "Related Party Disclosures" are given below:-

1. Relationship

(i) Subsidiaries Companies NIL

(ii) Joint Venture/Joint Control & Associates NIL

(iii) Key management personnel (Whole Time Directors)

Mr.Vineet Jain-Managing Director

Mr. Rakesh Mundra-Director (Finance)

Mr. S.C. Malik, Director (Finance)

(w.e.f. 14.02.2012) (up to 16.01.2012)

Relatives of key management personnel (with whom transactions have taken place.) Mr.Manish Jain-Brother

(iv) Enterprises over which key management personnel/relative have significant influence Prabhat Capital Services Ltd, Gurukripa Finvest Pvt Ltd

Sulabh Plantation & Finance Pvt.Ltd. Accurex Traders Pvt. Ltd.

(v) Other related parties

Pasupati Officer's Provident Fund Trust

The Pasupati Acrylon Ltd. Employees Superannuation Scheme

The Pasupati Acrylon Ltd. Employees Group Gratuity Scheme

Note: Related party relationship is as identified by the company and relied upon by the auditors.

9. It is the management's opinion that since the company is exclusively engaged in the activity of manufacture of Acrylic Fibre, Tow/Tops, which are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

8. Figures for the previous year have been regrouped / rearranged wherever considered necessary.

9. Value of imported / indigenous Raw materials, Stores & spares consumed.

Mar 31, 2010

Current Period Previous Period

(Rs. in lacs) (Rs./lacs)

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 528.60 -

2. Contingent liabilities not provided for in respect of

a. UPSEB demand under appeal - 101.25

b. Guarantee(s) given by banks and financial institutions 289.44 280.09

c. Letters of credit outstanding 7.00 243.63

d. SalesTax/Excise Duty/Custom Duty/Other Statutory dues /ServiceTax disputed in appeals 611.39 440.78

e. Labour Cases disputed In appeal 13.88 11.50

3. The Company has not received intimation from vendors regarding the status under the Micro, Small & Medium Enterprises Development Act, 2006 and therefore, disclosures under this Act have not been given. The management does not envisage any material impact on the financials in this regard.

4. (a) Previous years figures have been regrouped / rearranged wherever considered necessary.

(b) Current period consists of the period 1.10.09 to 31.03.10 and the previous period is for the period 1.4.08 to 30.09.09, accordingly current period figures are not comparable with pervious period figures.

5. Presently no options are available on un-issued share capital except convertibility clause(s), which can be excercised by the Financial Institution(s) in terms of loan agreement(s).

6. a. As reported in earlier years, an employee of the Company defrauded Rs.126 lacs in connivance with certain customers.

Legal proceedings against the employee and customers are being pursued. The defrauded amount has been fully provided in the year of fraud. b. As reported in earlier years, DEPB licenses of Rs. 27.01 lacs (Previous Period Rs. 27.01 lacs) Purchased were found forged. The amount was provided for in the year of fraud. Legal proceedings are being pursued for recovery of balance amount.

7. As per corporate Debt Restructuring Scheme, the Lenders have an option to convert 20% of interest bearing loan and entire 0% interest funded loan into equity, that remain outstanding after a period of seven years. The Lenders would also have an option to convert.entire / part of defaulted interest of principal, in the event of default continue beyond 90 days andÃ have the right to revoke the package in case of default.

8. Deferred Credit (Raw-Material) of Rs. 1383.64 lacs (Previous Period Rs. 1581.55 lacs) appearing under unsecured loans represents liability for raw material supplied by foreign suppliers under deferred credit facilities.

8. (a) As reported in earlier years that the Government of India reduced Excise Duty on Acrylic Fibre in the Union Budget 2006 while duty on raw materials were not reduced commensurately, resulting in inverted duty structure. Due to such anomaly the company is facing CENVAT accumulation, as at 31.03.2010, the CENVAT accumulation stood to Rs.1345.38 lacs (Previous Period Rs.1559.78 lacs). The Industrys plea to set right the anomaly has not been addressed by the Government. It is thus prudent to write off the accumulated CENVAT in the accounts. As such the Company has written off such CENVAT accumulation of Rsl345.38 Lacs in these accounts, the same has been shown under extra-ordinary item. As and when Government corrects the anomaly the Company shall account for the same accordingly.

b) During the period Excise duty payable on closing stock of Rs.128.30 lacs (Previous Period Rs.215.47 lacs) has been adjusted against balance with Custom & Excise. 12. (a) During the period under review the Company has entered into one time settlement (OTS) with Financial Institution, the payment of OTS amount has been made subsequent to the close of the financial year. Based on legal opinion obtained by the Company, it has taken credit of Rs. 3.54 lacs (Previous Period Rs. 637.32 lacs) in respect of extinguishment of liability towards principal amount to the Capital Reserve Account.

(b) Interest waiver on such OTS amounting to Rs. 6.37 lacs (Previous Period Rs. 1794.21 lacs ) has been shown under the extraordinary items in the Profit & Loss Account. 13. Depreciation on all assets which was hitherto being provided on straight line method basis, as per Schedule XIV of Companies Act, 1956 considering residual value at 5% of the value of assets has during the period been provided considering residual value at Rs.1.00. The said change has resulted in increase in depreciation by Rs.717.33 lacs for the period ended on 31.03.2010. Had the earlier method be applied the depreciation for the period would have been Rs.144.78 lacs.

9. In pursuance of accounting Standard 28, Impairment of assets (AS-28) issued by the Institute of*Chartered Accounts of India, the Company has reviewed the future earnings of its cash generating units. Based on such review, the company has accounted for the impairment loss on certain machinery and appearing under capital work in progress at a carrying value of Rs.68.90 Lacs due to change in technology. In the absence of reserves Rs.63.91 lacs impairment loss has been reflected under extra-ordinary items

10. Certain credit and debit balances of sundry debtors and secured loans are subject to confirmation and reconciliation. Difference, if any, shall be accounted for on such reconciliation.

11. (a) Foreign Currency exposure that are not hedged by derivative instrument or forward contracts as at 31.03.2010 amounting to Rs.9599.56 lacs (US$ 211.96 Lacs ) (Previous Period Rs.9574.01 lacs (US$ 198.78 Lacs) (b) Foreign currency exposure hedged by derivate instrument or forward contracts as at 31.03.10 amounting to Rs.142.26 Lacs; US$ 3 lacs). (Previous Period Rs.48.81 lacs, US$ 1.00 Lacs) (c ) Considering the principle of prudence and announcement made by The Institute of Chartered Accountants of India "Accounting for Derivatives" in March 2008, the Company has provided an amount of Rs 6.39 lacs (Previous Period Rs.0.59 lacs) on outstanding contracts to the Profits & Loss Account.

12. Raw material consumed is inclusive of gain due to fluctuation in exchange rate of Rs. 282.35 lacs (Previous Period loss of Rs.1605.97 lacs)

13. Unsecured loans from Bodies Corporate include interest free unsecured loan of Rs.1080 lacs (Previous Period Rs.1080 lacs) received from Promoter (s) in terms of conditions stipulated by term lending Banks.

14. No amount was due for credit to investor education & protection fund as at 31st March 2010.

15. Disclosure in respect of loan/advances and investments in its own shares by the company, its subsidiaries , associates, etc. (as required under clause 32 of listing agreement) is not being made as the company has not granted any loan or advances in the nature of loan.

16. In the opinion of the management, the current assets, loans and advances are expected to realise at least the amount at which they are stated, if realized in the ordinary course of business and provision for all known liabilities have been adequately made in the accounts

17. Related Party Disclosures

Related Party disclosures, as required by AS-18 "Related Party Disclosures" are given below:-

1. Relationship

(i) Subsidiaries Companies NIL

(ii) Joint Venture/Joint Control & Associates NIL

(iii) Key management personnel (Whole Time Directors)

Mr.Vineet Jain-Managing Director Mr.S.C.Malik- Director (Finance)

Relatives of key management personnel (with whom transactions have taken place)

Mrs.Anju Jain-Mother

Mr.Manish Jain-Brother (iv) Enterprises over which key management personnel/relative have significant influence

Prabhat Capital Services Ltd

Gurukripa Finvest Pvt Ltd

Sulabh Plantation & Finance Pvt.Ltd.

Accurex Traders Pvt. Ltd. (iv) Other related parties

Pasupati Officers Provident Fund Trust

The Pasupati Acrylon Ltd. Employees Superannuation Scheme

The Pasupati Acrylon Ltd. Employees Group Gratuity Scheme

2. The following transactions were carried out with related parties in the ordinary course of business:

18. Employee Benefit Obligations

(a) The Company makes contribution towards gratuity and superannuation to a defined contribution retirement benefits plan for qualifying employees. The fund have taken policy with Life Insurance Corporation of India to provide for payment of vested employees at retirement, death while in employment or on termination of employment. During the year contribution paid to the gratuity fund of Rs.11.36 lacs (Previous Period Rs.49.96 Lacs) and to the superannuation fund of Rs.9.39 lacs (Previous Period Rs.26.50 Lacs) by the Company to cover fully the benefits to be paid to the employees has been charged to the Profit and Loss Account.

(b) The Company has set up a separate Provident Fund in respect of certain categories of employees. For other employees, Provident Fund is accrued on monthly basis in accordance with the terms of contract with the employees and deposited with the "Statutory Provident Fund". During the period Rs.7.68 lacs (Previous Period Rs.22.42 lacs) has been paid as contribution to the fund and Rs.25.68 lacs (Previous Period Rs.72.10 lacs) paid as contribution the Statutory Provident Fund, which has been charged to the Profit & Loss Account.

(c) In respect of leave encashment, the present value of obligation is determined based on actuarial valuation by an Independent Actuary based on LIC 1994-96 (ultimate) mortality table. The actuarial valuation is based on terminal salary determined by assuming salary rise of 5% per annum and discounted by assuming the imputed rate of interest of 8% per annum. The difference between the obligations at the beginning of the Period Rs.74.46 lacs and at the end of the Period Rs.80.09 lacs together with the amount paid during the period Rs.3.80 lacs has been charged to the Profit & Loss Account.

19. Schedules A to Q annexed to and forming part of the statement of accounts have been duly authenticated.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article