Notes to Accounts of Vertex Spinning Ltd.

Mar 31, 2015

1. General Information

Vertex Spinning Limited (the 'Company') is engaged in business of Trading of Textile . The Company was incorporated on April 6, 1994. The Company's equity shares are listed on the Bombay Stock Exchange Limited

The Company is coming with Asia,s Biggest VERTEX INTEGRATED TEXTILES PARK Project at Nardana Dist Dhule (Maharashtra) The Project Comprises Industrial, Residential and other required facility such as School, College, Five Star Hotels, Hospital, Shopping Complex etc. and is located at a total of 400 acres land in Nardhana Industrial Area, Dist. Dhule (Mahrashtra)

The Company is also planning to enter in to the Field of Media, Entertainment etc.

2. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for 'more than 45 days at the Balance Sheet date. The information regarding Micro and Small enterprises 'have been determined to the extent such parties have been identified on the basis of information 'available with the Company.

3. Due to financial crises of the company, instead of cash, some Goods had been sold to the parties having Credit balance for satisfaction of their claim.

4. Related Party Disclosures

Related Party Disclosures, as required by Accounting Standard 18 - "Related Party Disclosures", notified under the Act, read with General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 are given below:

Key Management Personnel: Mr. Suresh Sharma ( Managing Director) Relative: Mr. Sachin Sharma (Director)

5. Contingent Liabilities:

Particulars 2014-2015 AS ON 2013-2014

Disputed Income Tax Liability (including Interest and Penalty to the extent 176,598,636 162,684,676 ascertainable) not acknowledged as debts

Any other Matter

Total

6. Commitments:

Capital Commitment:

Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. Nil

7.Previous year's figures have been rearranged to conform with current year's presentation, where applicable.

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Mar 31, 2013

1. Relating to Current Assets, Current Liabilities, Loans and Advances

In the opinion of the management the balances of current assets, current liabilities, loans and advances have a realizable value in the ordinary course of business at least equal to the value at which they are stated in the balance sheet. The balance standing the said accounts are subject to confirmation and reconciliations.

2. Related Party Transactions-

The Disclosure as per AS - 18 ''Related Party Transactions''

a) Key Managerial Person/ Directors/ Persons having significant influence in the company

- Suresh Sharma

b) Relatives of a) above.

- Sachin Sharma

c) Entities over which Company or Key Managerial Personnel or their relatives, exercise significant influence.

In view of the management of the company the transactions entered, payments received and given are in ordinary course of business and are done at arm length price.

3. Micro, Small and Medium Enterprises Development Act, 2006

Based on the information available with the company, there are no suppliers who are registered under the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2013. Hence, the information as required under the Micro, Small and Medium Enterprises Development Act, 2006 is not disclosed.

4. Previous year figures have been regrouped or rearranged wherever necessary so as to make them comparable with current year classifications.

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Mar 31, 2012

[NOTE-A] CORPORATE PROFILE

VERTEX SPINNING LIMITED (the "Company'') is engaged in Trading Business. The company was incorporated on 12th September 1994. The company''s Equity Shares are listed on the Bombay stock Exchange Limited (BSE).

The Company has coming with Asia''s Biggest VERTEX INTERGRATED TEXTILES PARK project at Nardhana. Dist. Dhule. (Maharashtra). The project comprises Industrial, Resedential and other required facility such as School, College, Five star Hotels, Hospital, Shopping Complex etc., is located at total 400 acres land at Nardhana Industrial Area, Dist. Dhule. (MH)

1. Segmental Reporting

The reporting requirements of Segmental Reporting (AS-17) are not applicable on the company.

2. Contingent Liabilities

- Claims against the Company disputed and not acknowledged as debts - NIL

- The contingent liability which might arise from pending assessments under various statutes. In view of the management the effect of same is not ascertainable.

3. Foreign Exchange Transactions

It is explained to us that No Foreign Exchange Transaction has been carried out during the year.

4. Relating to Current Assets, Current Liabilities, Loans and Advances

In the opinion of the management the balances of current assets, current liabilities, loans and advances have a realizable value in the ordinary course of business at least equal to the value at which they are stated in the balance sheet. The balance standing the said accounts are subject to confirmation and reconciliations.

5. Related Party Transactions -

The Disclosure as per AS - 18 ''Related Party Transactions''

a) Key Managerial Person/ Directors/ Persons having significant influence in the company

- Suresh Sharma

b) Relatives of a) above.

- Sachin Sharma

c) Entities over which Company or Key Managerial Personnel or their relatives, exercise significant influence.

- Brakes Auto India Limited

- S S Forgings & Engineering Limited

- Nardhana Infrastructure Limited

In view of the management of the company the transactions entered, payments received and given are in ordinary course of business and are done at arm length price.

6. Micro, Small and Medium Enterprises Development Act, 2006

Based on the information available with the company, there are no suppliers who are registered under the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2012. Hence, the information as required under the Micro, Small and Medium Enterprises Development Act, 2006 is not disclosed.

7. Previous year figures have been regrouped or rearranged wherever necessary so as to make them comparable with current year classifications.

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Mar 31, 2010

1) Contingent Liabilities

- Claims against the Company disputed and not acknowledged as debts - NIL

- The contingent liability which might arise from pending assessments under various statute can not be ascertained.

2) Revaluation of Leasehold Land

The company has revalued its Leasehold Land to Rs.240 crores, located at Plot No, T-l 8s T-2 in the Nardana Industrial Area at Textile Park at Nardana (Dist, Nandurbar) Taluka, Shindikheda, Dist. Dhule, on the basis of valuation report obtained from experts. The aforesaid land has been allotted to the company by MIDC for the purpose of development of textile park.

3) Quantitative Details -

During the previous financial year 2009-2010 the company has traded certain VAT free goods (Fabrics, Shirtings and Suiting) and certain vat able goods relating to hardware and software.

Items traded in category of vat able goods being many; hence quantitative detail of same can not be produced.

The details of SALES, OPENING STOCK AND CLOSING STOCK of VAT free goods are as under:-

4) Unsecured Loans -

The company has during the current financial year allotted plots at its Textile Park in Dhulia, Nardana to companies from whom unsecured loans were obtained. Consequently amount lying to the credit of unsecured loans amounting to Rs. 56795129 has been regrouped as Advance from customer and would be adjusted towards their dues on the sale of plot.

5) Related Party Transactions -

The Disclosure as per AS - 18 "Related Party Transactions

a) Key Managerial Person/ Directors/ Persons having significant influence in the company

* Suresh Sharma

b) Relatives of a) above.

- Sachin Sharma

c) Entities over which Company or Key Managerial Personnel or their relatives, exercise significant influence.

c Brakes Auto India Limited

- Pithampur Steels Limited

- S S Forgings and Engineering Limited

6) SECURED LOANS

The company has got banking facilities (OD, TL and CC) sanctioned from Syndicate Bank, Indore, the outstanding of which was Rs. 284663021 at the start of the FY 2009-2010. Syndicate Bank vide its letter dated 22.12.2009 agreed on a One Time Settlement for Rs. 2650 lacs, pursuance to which the company has paid Rs. 100 lacs and has written back Rs. 197 lacs to the credit of Profit and Loss Account for the current financial year on account of write back of old interest expenses to bring the outstanding as on March 31, 2010 at Rs. 2550 lacs

The bank has levied certain interest during the current financial year to which the company has disputed along with certain terms of OTS and accordingly no interest expenses has been recognized during the year,

7) SHARE APPLICATION MONEY PENDING ALLOTMENT-

At the start of the financial year the company has Rs. 5,47,71,054/- lying to the credit of Share Application Money pending allotment. Out the above Rs. 5,47,71,054/ the company has during the current financial year allotted industrial plots at its Textile Park in Dhulia, Nardana to companies from whom Rs. 4,92,11,754/- were received. Consequently money lying to the credit of application money has been regrouped as Advance from customer and would be adjusted towards their dues on the sale of plot.

For the remaining amount of Rs. 55,59,300/ - the management is of the view that the same needs to be paid back and will be paid back in the year 2010-2011 and consequently the same has been regrouped in Sundry Creditors for Others.

8) REGROUPING/REARRANGEMENT

Previous year figures have been regrouped or rearranged wherever necessary so as to make them comparable with current year classifications.

9) VALUATION

In the opinion of the management the balances of current assets, current liabilities, loans and advances have a realizable value in the ordinary course of business at least equal to the value at which they are stated in the balance sheet.

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