Notes to Accounts of Subhash Silk Mills Ltd.

Mar 31, 2015

(1) CONTIGENT LIABILITIES

(a) The Company has to make payment of Rs.1.2 Crores towards Income Tax Dues for the year ended 31-Mar-2014.

(2) The Company has shown Sundry Debtors and Loans and Advances over six months as good as in the opinion of the management the same is recoverable and no provision is required to be made.

(3) Retirement Benefit Scheme

a) The Company has not provided for Leave Encashment which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

b) The Company has not provided for Gratuity which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

(4) The Company has not made any provisions for deferred tax asset as it is not certain that this amount will be realized in the near future.

(5) As per the Accounting Standard (AS) 28 - Impairment of Assets, the Management carried out an internal impairment test as of 31st March 2014 and provided for the impairment loss where recoverable amount was lower than the amount carried in the accounts by providing for the same in the books of account.

(6) Debit and Credit balances are subject to confirmation.

(7) Related Party disclosure under Accounting Standard 18 (i) Information about related party as required by AS-18

Sr. Related Party Relationship No.

1. Subhash Knitting Industries ) Enterprises over which Key Managerial Personnel are able )

To exercise significant influence )

2 Subhash Fabrics Pvt. Ltd. )

3. Subhash Trading Corp. )

4. Acuity International P Ltd )

5. Aquabrane Water Technologies Pvt Ltd )

6. Sparkle Clean Tech P Ltd )

7. Subhash Mehra ) Key Managerial Personnel

8. Dhiraj Mehra )

9. Sumeet Mehra )

10. Nandini Dhowan ) Relative of Key Managerial Personnel

(8) SEGMENT REPORTING

Since the Company is dealing in only one segment i.e. Textile and hence Segment reporting is not applicable.

(9) Figures have been rounded off to the nearest rupee.

(10) Previous years figures have been regrouped wherever necessary.

(11) The statement of significant accounting policies and the notes form an integral part of the accounts for the period ended.

(12) Previous period figures have been regrouped/reclassified wherever necessary.

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Mar 31, 2014

(1) CONTIGENT LIABILITIES

(a) There are no known contingent liabilities on the Company for the year.

(2) The Company has shown Sundry Debtors and Loans and Advances over six months as good as in the opinion of the management the same is recoverable and no provision is required to be made.

(3) Retirement Benefit Scheme

a) The Company has not provided for Leave Encashment which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

b) The Company has not provided for Gratuity which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

(4) The Company has not made any provisions for deferred tax asset as it is not certain that this amount will be realized in the near future.

(5) As per the Accounting Standard (AS) 28 - Impairment of Assets, the Management carried out an internal impairment test as of 31st March 2014 and provided for the impairment loss where recoverable amount was lower than the amount carried in the accounts by providing for the same in the books of account.

(6) Debit and Credit balances are subject to confirmation.

(7) SEGMENT REPORTING

Since the Company is dealing in only one segment i.e. Textile and hence Segment reporting is not applicable.

(8) Figures have been rounded off to the nearest rupee.

(9) Previous years figures have been regrouped wherever necessary.

(10) The statement of significant accounting policies and the notes form an integral part of the accounts for the period ended.

(11) Previous period figures have been regrouped/reclassifed wherever necessary.

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Mar 31, 2013

(1) CONTIGENT LIABILITIES

(a) There are no known contingent liabilities on the Company for the year.

(2) The Company has shown Sundry Debtors and Loans and Advances over six months as good as in the opinion of the management the same is recoverable and no provision is required to be made.

(3) Retirement Benefit Scheme

a) The Company has not provided for Leave Encashment which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

b) The Company has not provided for Gratuity which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

(4) The Company has not made any provisions for deferred tax asset as it is not certain that this amount will be realized in the near future.

(5) As per the Accounting Standard (AS) 28 - Impairment of Assets, the Management carried out an internal impairment test as of 31st March 2013 and provided for the impairment loss where recoverable amount was lower than the amount carried in the accounts by providing for the same in the books of account.

(6) Debit and Credit balances are subject to confirmation.

(7) Related Party disclosure under Accounting Standard 18

(i) Information about related party as required by AS-18

Sr. No. Related Party Relationship

1. Subhash Knitting Industries ) Enterprises over which Key

Managerial Personnel are able To exercise significant influence

2. Pragati Impex ) 3 Subhash Fabrics Pvt. Ltd. )

4. Subhash Trading Corp. )

5. Acuity International P Ltd )

6. Aquabrane Water Technologies Pvt Ltd )

7. Sparkle Clean Tech P Ltd )

(8) SEGMENT REPORTING

Since the Company is dealing in only one segment i.e. Textile and hence Segment reporting is not applicable.

(9) Figures have been rounded off to the nearest rupee.

(10) Previous years figures have been regrouped wherever necessary.

(11) The statement of significant accounting policies and the notes form an integral part of the accounts for the period ended.

(12) Previous period figures have been regrouped/reclassified wherever necessary.

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Mar 31, 2012

(1) CONTIGENT LIABILITIES

(a) There are no known contingent liabilities on the Company for the year.

(2) The Company has shown Sundry Debtors and Loans and Advances over six months as good as in the opinion of the management the same is recoverable and no provision is required to be made.

(3) Retirement Benefit Scheme

a) The Company has not provided for Leave Encashment which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

b) The Company has not provided for Gratuity which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

(4) The Company has not made any provisions for deferred tax asset as it is not certain that this amount will be realized in the near future.

(5) As per the Accounting Standard (AS) 28 - Impairment of Assets' the Management carried out an internal impairment test as of 31st March 2012 and provided for the impairment loss where recoverable amount was lower than the amount carried in the accounts by providing for the same in the books of account.

(6) Debit and Credit balances are subject to confirmation.

(7) SEGMENT REPORTING

Since the Company is dealing in only one segment i.e. Textile and hence Segment reporting is not applicable.

(8) Figures have been rounded off to the nearest rupee.

(9) Previous years figures have been regrouped wherever necessary.

(10) The statement of significant accounting policies and the notes form an integral part of the accounts for the period ended.

(11) Previous period figures have been regrouped/reclassified wherever necessary.

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Mar 31, 2011

(1) CONTIGENT LIABILITIES

(a) There are no known contingent liabilities on the Company for the year.

(2) The Company has shown Sundry Debtors and Loans and Advances over six months as good as in the opinion of the management the same is recoverable and no provision is required to be made.

(3) Retirement Benefit Scheme

a) The Company has not provided for Leave Encashment which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

b) The Company has not provided for Gratuity which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

(4) The Company has not made any provisions for deferred tax asset as it is not certain that this amount will be realized in the near future.

(5) As per the Accounting Standard (AS) 28 - Impairment of Assets, the Management carried out an internal impairment test as of 31st March 2011 and provided for the impairment loss where recoverable amount was lower than the amount carried in the accounts by providing for the same in the books of account.

(6) Debit and Credit balances are subject to confirmation.

(7) Additional information pursuant to provision of paragraphs 3, 4(c) & 4(d) of part II of Schedule V of the Companies Act, 1956:

(16) The Company is in the process of identifying suppliers concerned under SME and is yet to ascertain the account for liability, if any, in this regard which is however not expected to be material.

(8) SEGMENT REPORTING

Since the Company is dealing in only one segment i.e. Textile and hence Segment reporting is not applicable.

(9) Figures have been rounded off to the nearest rupee.

(10) Previous years figures have been regrouped wherever necessary.

(11) The statement of significant accounting policies and the notes form an integral part of the accounts for the period ended.

(12) Previous period figures have been re grouped/reclassified wherever necessary.

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Mar 31, 2010

(1) CONTIGENT LIABILITIES

(a) There are no known contingent liabilities on the Company for the year.

(2) The Company has shown Sundry Debtors and Loans and Advances over six months as good as in the opinion of the management the same is recoverable and no provision is required to be made.

(3) Retirement Benefit Scheme

a) The Company has not provided for Leave Encashment which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

b) The Company has not provided for Gratuity which is unascertained and will be provided as and when it is paid by which the profit of the Company has been overstated to that extent.

(4) The Company has not made any provisions for deferred tax asset as it is not certain that this amount will be realized in the near future.

(5) As per the Accounting Standard (AS) 28 - Impairment of Assets, the Management carried out an internal impairment test as of 31st March 2010 and provided for the impairment loss where recoverable amount was lower than the amount carried in the accounts by providing for the same in the books of account.

(6) Debit and Credit balances are subject to confirmation.

(16) The Company is in the process of identifying suppliers concerned under SME and is yet to ascertain the account for liability, if any, in this regard which is however not expected to be material.

(7) SEGMENT REPORTING

Since the Company is dealing in only one segment i.e. Textile and hence Segment reporting is not applicable.

(8) Figures have been rounded off to the nearest rupee.

(9) Previous year figures have been regrouped wherever necessary.

(10) The statement of significant accounting policies and the notes form an integral part of the accounts for the period ended.

(11) Previous period figures have been regrouped/reclassified wherever necessary.