Arunoday Mills Ltd. के अकाउंट के लिये नोट

Mar 31, 2014

1.1 Secured lenders had taken custody of all the assets of the Company on 17-10-2006 under Securitisation Act and sold the same by public auction on 8-2-2007 for a consideration of Rs. 3,500.00 Lakhs which was distributed amongst the lenders. The outstanding amount is reflected net of pro-rata consideration received by Bank of Baroda.

1.2 In O. A No. 44/2008 filed by Bank of Baroda before Debt Recovery Tribunal (DRT), Mumbai under RDB Act, DRT had issued notice for recovery of the dues of Rs. 785.92 Lacs. Based on One Time Settlement (OTS) of rest of the 5 secured lenders, the Company had made an offer for OTS to Bank of Baroda, the outcome of which is awaited and pending which no provision is made for the differential liability of Rs 339 69 lacs

1.3 In the absence of any security available the dues have been reflected under current liability.

1.4 Other payables includes Rs. 113.60 Lacs towards Electricity Duty on Captive Power Generation and Dividend of Rs. 33.50 Lacs received in 1998 and 1999 in respect of 10 (Ten) Lacs units of US-64 Scheme of Unit Trust of India (UTI) [since converted into 6.75% Tax-free US 64 Bonds upon termination of US 64 Scheme] and which were sold in 1992-93. Also refer Note No. 5.1

1.5 There are no amounts outstanding in respect of Principal or Interest due to Micro, Small and Medium Enterprises.

1.6 UTI had filed a suit in Bombay High Court for claim of Rs. 307.66 Lacs comprising of net dividend of Rs. 120.06 Lacs paid by it relating to the period 1992-93 to 1998-99, T.D.S. of Rs. 31.44 Lacs thereof and Re-purchase of Bonus Units of Rs. 14.65 Lacs allotted thereon alongwith interest thereon. The said suit which had been transferred to Debt Recovery Tribunal (DRT), Mumbai (bearing O.A. No. 41 of 2005), is pending

The Company had in turn filed a Suit in Hon''ble Bombay High Court (bearing OOCJ Suit No. 423 of 2003) against UTI for putting ''Stop Transfer Mark'' on the other units held by the Company and reflected as Non Current Investments, non-payment of Dividend thereon and non-issue of 6.75% Tax-free US-64 Bonds for the Units converted upon termination of US-64 Scheme. The said matter is also pending. Also refer Note No. 4.6

2 Segment Reporting : The Company''s operations relate only to Textile Segment and hence has only single reportable segment.

3 Related Party Disclosures :

Nature of related parties and relationship :

a) Key Management Personnel : Kantilal K. Sheth Chairman & Managing Director

b) Associates Resons Investments Pvt. Ltd. Udaysons Investments Pvt. Ltd.

4 Contingent Liabilities not provided for in respect of :

a) Bank Guarantees outstanding Rs. 0.95 Lacs (Rs. 0.95 Lacs)

b) Counter guarantee issued by the Company to Shri K. K. Sheth (Managing Director) having given personal guarantee for Company''s borrowings fom Bank & Financial Institutions to the extent of Rs. 4,775.00 Lacs (Rs.4,775.00 Lacs)

c) Claims against the Company not acknowledged as Debt

(i) Outstanding dues of Rs. 96,823/-claimed by Mahanagar Telephone Nigam Limited, Mumbai.

(ii) Outstanding Annual Listing Fees amounting to Rs. 1,22,062/- claimed by Ahmedabad Stock Exchange Limited.

5 Income-tax assessments of the Company have been completed upto Asst. Year 2011-12. As reported earlier, pursuant to re-opening of assessments u/s 147 for Asst. Years 2007-08 in respect of set-off of allowances for unabsorbed depreciation and business losses claimed against gains arising on account of sale procceds for disposal of assets of the Company by secured lenders under Securitisation Act.

Re-assessment Order was passed U/s 143(3) r.w.s. 147 and a demand of Rs. 999.21 Lacs was raised which was contested in Appeal before C.I.T. (Appeals) but dismissed and against which the Company has preferred second appeal before ITAT, Rajkot.

The Company had also filed an application for rectification U/s. 154 to adjust disallowance unabsorbed depreciaton against capital gain. However the said application was rejected against which the Company has preferred an appeal before CIT, Appeals which is pending.

The Company envisages substantial relief and reduction in tax liability as such no provision is made in respect thereof.

6 The Sales-tax department of Mumbai had passed ''ex parte'' orders for F.Y. 2004-05 and raised demand of Rs. 38.38 Lacs against which the Company had preferred an appeal. Revised order was passed by the appellate authority whereby the demand was reduced to Rs. 14.03 Lacs. Against the said order, the Company has filed a Restoration Application whch is pending.

7 The development referred to above vide note 4.2 amounts to disposal of practically entire undertaking. The Company has no manufacturing activity or any business activity. However, the accounts for the current year too have been prepared on the basis of ''going concern'' as followed hithereto.

8 The Company does not have the practice to call for balance confirmation in respect of Loans & Advances, Deposits, Sundry Debtors and Sundry Creditors. In view of substantial outstanding in accounts of borrowings from Bank and other scattered dormant bank accounts, it is not possible to obtain balance confirmation in respect thereof. Hence balances in these accounts are shown as per the books of accounts and are subject to confirmation or reconciliation, if any.

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Mar 31, 2013

1.1 Issued subscribed and paid up equity share capital includes (a) 37,50,000 (P.Y. 37,50,000) Equity Shares allotted as fully paid up Bonus Shares by Capitalisation of General Reserve and (b) 5,00,000 (P.Y. 5,00,000) Equity Shares allotted by Conversion of Unsecured Loan.

2.1 During the year, the dues of Bank of India were settled under One Time Settlement (OTS). After payment of Rs. 37.50 Lacs as OTS, balance amount of Rs. 3302.31 Lacs being on capital account has been transferred to Capital Reserve.

2.2 During the year, the dues of Exim Bank were also settled under OTS. After payment of Rs. 14.00 Lacs as OTS balance amount of Rs. 516.41 Lacs being on capital account has been transferred to Capital Reserve.

3.1 Borrowings of Term Loans & Working Capital Loans from the Banks and Financial Institutions were secured by mortgage of Company''s Fixed Assets and Hypethecation of Company''s Movable Assets and Personal Guarantee of the Managing Director

3.2 IDBI acting on behalf of Secured Lenders had taken possession of the Mill''s Premises; housing Land, Buildings, Plant & Machinery, Stores & Spares and all other Movable Assets on 17th October, 2006 under the Securitisation Act which were sold by public auction on 8th February, 2007 to a buyer for a consideration of Rs. 3,500.00 Lacs (including all statutory liabilites).

3.3 In O. A No. 44/2008 filed by Bank of Baroda before DRT, Mumbai under RDB Act, Demand Notice has been issued by DRT for recovery of dues aggregating to Rs. 785.92 Lacs. The Company has made an offer for settlement of its said dues under OTS, confirmation of which is awaited.

3.4 In the absence of any security and recall of the loans, amount outstanding in respect of borrowings from banks and financialinstitutions have been reflected as current liability.

3.5 Other payables includes Rs. 113.60 Lacs towards Electricity Duty on Captive Power Generation and Dividend of Rs. 33.50 Lacs received in 1998 and 1999 in respect of 10 (Ten) Lacs units of US- 64 Scheme of Unit Trust of India (UTI) [since converted into 6.75% Tax-free US 64 Bonds upon termination of US 64 Scheme] and which were sold in 1992-93. Also refer Note Nos. 5.1

3.6 There are no amounts outstanding in respect of Principal or Interest due to Micro, Small and Medium Enterprises.

4.1 UTI had filed a suit in Bombay High Court for claim of Rs. 307.66 Lacs comprising of net dividend of Rs. 120.06 Lacs paid by it relating to the period 1992-93 to 1998-99, T.D.S. of Rs. 31.44 Lacs thereof and Re-purchase of Bonus Units of Rs. 14.65 Lacs allotted thereon alongwith interest thereon. The said suit which had been transferred to Debt Recovery Tribunal (DRT), Mumbai (bearing O.A. No. 41 of 2005), is pending.

The Company had in turn filed a Suit in Hon''ble Bombay High Court (bearing OOCJ Suit No. 423 of 2003) against UTI for putting ''Stop Transfer Mark'' on the other units held by it and reflected as Long Term Investments, non-payment of Dividend thereon and non-issue of 6.75% Tax-free US- 64 Bonds for the Units converted upon termination of US-64 Scheme. The said matter is also pending. Also refer Note No. 4.6

5.1 The Company has not provided for liability in respect of Bonus for the current year, amount whereof is not ascertained.

5.2 In the absence of ascertainment of liability in respect of Leave Encashment due to employees as on 31st March, 2013, no provision has been made in accounts for the same, which is not in conformity with the Accounting Standard AS-15 viz. "Accounting for Retirement Benefits in the Financial Statements of Employer" issued by the Institute of Chartered Accountants of India.

6 Segment Reporting : The Company''s operations relate only to Textile Segment and hence has only single reportable segment.

7 Related Party Disclosures :

Nature of related parties and relationship :

a) Key Management Personnel : Kantilal K. Sheth

Chairman & Managing Director

b) Associates : Resons Investments Pvt. Ltd.

Udaysons Investments Pvt. Ltd.

Note: Related party relationship is identified by the Company and relied upon by the auditors. Figures in brackets relates to previous year.

8 Contingent Liabilities not provided for in respect of :

a) Bank Guarantees outstanding Rs. 0.95 Lacs (Rs. 0.95 Lacs)

b) Counter guarantee issued by the Company to Shri K. K. Sheth (Managing Director) having given personal guarantee for Company''s borrowings fom Bank & Financial Institutions to the extent of Rs. 4,775.00 Lacs (Rs. 4,775.00 Lacs)

c) Claims against the Company not acknowledged as Debt

(i) Outstanding dues of Rs. 96,823/-claimed by Mahanagar Telephone Nigam Limited, Mumbai.

(ii) Outstanding Annual Listing Fees amounting to Rs. 1,22,062/- claimed by Ahmedabad Stock Exchange Limited.

9 Income-tax assessments of the Company have been completed upto Asst. Year 2010-11. The Company had received notices for re-opening of assessments u/s 147 for Asst. Years 2007-08 & 2008-09 in respect of set-off of allowances for unabsorbed depreciation and business losses claimed against gains arising on account of sale procceds for disposal of assets of the Company by secured lenders under Securitisation Act.

During the year, re-assessment U/s 143(3) r.w.s. 147 was completed for Asst. Year 2007-08 and a demand of Rs. 999.21 Lacs was raised which has been contested in Appeal preferred before C.I.T. (Appeals) and the Company is hopeful of success thereat. In view of the above no provision is made in respect of the above demand.

10 The Sales-tax department of Mumbai had passed ''ex parte'' orders for F.Y. 2004-05 and raised demand of Rs. 38.38 Lacs against which the Company had preferred an appeal. Revised order was passed by the appellate authority whereby the demand was reduced to Rs. 14.03 Lacs. Against the said order, the Company has filed a Restoration Application which is pending.

11 The development referred to above vide note 4.2 amounts to disposal of practically entire undertaking. The Company has no manufacturing activity or any business activity. However, the accounts for the current year too have been prepared on the basis of ''going concern'' as followed hithereto.

12 The Company does not have the practice to call for balance confirmation in respect of Loans & Advances, Deposits Sundry Debtors and Sundry Creditors. In view of substantial outstanding in accounts of borrowings from Banks and Financial Institutions and other scattered dormant bank accounts, it is not possible to obtain balance confirmation in respect thereof. Hence balances in these accounts are shown as per the books of accounts and are subject to confirmation or reconciliation, if any.

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Mar 31, 2011

1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

a) Bank Guarantees Outstanding Rs. 0.95 Lacs (Rs. 0.95 Lacs)

b) Dividend of Rs. 36.38 Lacs on 9 % Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS) (Rs. 31.88 Lacs)

c) Counter guarantee issued by the Company to Shri K. K. Sheth (Managing Director) having given personal guarantee of Company's borrowings to the extent of Rs. 4,775.00 Lacs (Rs. 4,775.00 Lacs).

2. (i) The Secured Loans viz. Term Loans and Working Capital Loans from the Banks and Financial Institutions were secured by mortgage of Company's fixed assets and hypothecation of Company's movable assets.

(ii) These Loans are also collaterally secured by personal guarantee of Shri Kantilal K. Sheth (Managing Director)

3. (a) IDBI acting on behalf of Secured Lenders, took possession of the Mill's Premises housing Land, Buildings, Plant & Machinery, Stores & Spares and all other Movable Assets on 17th October, 2006 under the Securitisation Act and were sold by public auction on 8th February, 2007 to M/s. Nandan Exim Ltd. for a consideration of Rs. 3500 Lacs; which in turn transferred the said deal to its associate concern viz. Shanti Exports Pvt. Ltd. (SEPL)

(b) SEPL paid the consideration of Rs. 3500 Lacs plus interest of Rs. 20.51 Lacs for delayed payment to IDBI. The said total consideration was distributed amongst the secured lenders as reflected by IDBI in its Application filed before D.R.T at Ahmedabad. Based on this information, the Company has carried out effects in the accounts in the previous year for respective share of secured lenders as,reflected in Schedule III.

(c) During the current year:

(i) IDBI accepted proposal of the Company for One Time Settlement (OTS) of its total dues of Rs. 4040.45 Lacs for a consideration of Rs. 33 Lacs and the Company has paid the said amount in stages and settled the dues during FY 2011-12.

(ii) Likewise the Company accepted the proposal of Syndicate Bank for OTS of its dues and paid Rs. 12 Lacs against the total dues of Rs. 767.72 Lacs during FY 2011-12.

(iii) Demand Notices are issued by DRT for recovery of dues of Bank of Baroda aggregating to Rs. 785.92 Lacs and dues of Exim Bank aggregating to Rs. 831.92 Lacs against applications filed by the respective banks under RDB Act.

(iv) In O.A. No. 72 of 2008 filed by Bank of India, D.R.T. Mumbai passed an order Dt. 28-5-201C allowing the reliefs for recovery of Rs. 4,834.70 Lacs as prayed and directed for issue of recovery certificate.

(v) Accounting of the settled dues of IDBI and Syndicate Bank will be carried out in the financial year 2011-12.

4. The development referred to above vide para 4(a) amounts to disposal of practically entire undertaking. The Company has no manufacturing activity or any business activity, however the accounts for the current year too have been prepared on the basis of fundamental accounting assumption of 'going concern' as followed hitherto.

5. In Schedule IX, Sundry Creditors includes Dividend of Rs. 33.50 Lacs received in 1998 and 1999 in respect of 10 (Ten) Lacs units of US-64 Scheme of Unit Trust of India (UTI) [since converted into 6.75% Tax-free US 64 Bonds upon termination of US 64 Scheme] and sold in 1992-93.

UTI had filed a suit in Bombay High Court for claim of Rs. 307.66 Lacs comprising of net dividend of Rs. 120.06 Lacs paid by it relating to the period 1992-93 to 1998-99, T.D.S. of Rs. 31.44 Lacs thereof and Re-purchase of Bonus Units of Rs. 14.65 Lacs allotted thereon alongwith interest thereon. The said suit which had been transferred to Debt Recovery Tribunal (DRT), Mumbai. (bearing O.A. No. 41 of 2005), is pending.

The Company had in turn filed a Suit in Hon'ble Bombay High Court (bearing OOCJ Suit No. 423 of 2003) against UTI for putting 'Stop Transfer Mark' on the other units held by it and reflected as Long Term Investments, non-payment of Dividend thereon and non-issue of 6.75% Tax-free US-64 Bonds for the Units converted upon termination of US-64 Scheme. The said matter is also pending.

6. The Sales-tax Department of Mumbai had passed 'ex-parte' orders for financial years 2003-04 and 2004-05 and raised demand of Rs. 211.28 Lacs & Rs. 38.38 Lacs respectively, against which appeals have been preferred by the Company. In view of arbitrary additions made by the assessing officer, the Company is hopeful of getting due relief in appeal and the demand is not likely to subsist.

7. (a) The Company has not provided for liability in respect of Bonus for the current year, amount whereof is not ascertained.

(b) In the absence of ascertainment of liability in respect of Leave Encashment due to employees as on 31st March, 2011, no provision has been made in accounts for the same, which is not in conformity with the Accounting Standard AS - 15 viz. "Accounting for Retirement Benefits in the Financial Statements of Employer" issued by the Institute of Chartered Accountants of India.

8. In the absence of necessary information relating to the suppliers registered as Micro, Small and Medium enterprises under the Micro, Small and Medium Enterprises (Development) Act, 2006, the Company has not been able to identify such suppliers as a result of which the required information could not be complied and disclosed.

9. Income-tax:

(a) Assessments of the Company have been finalised upto and including Assessment Year 2009- 10. In view of further losses incurred, no provision for taxation is made for the current year.

(b) The Deferred Tax Asset of Rs. 14.74 Lacs provided in the year 2001-02 is reversed during the year as there is no certainty of its realisation.

10. The Company does not have the practice to call for balance confirmation in respect of Loans & Advances, Deposits, Sundry Debtors and Sundry Creditors. In view of substantial outstanding in accounts of secured borrowings which have become NPA and other scattered dormant bank accounts, it is not possible to obtain balance confirmation in respect thereof. Hence balances in these accounts are shown as per the books of accounts and are subject to confirmations and reconciliation, if any.

11. Segment Reporting : The Company's operations relate only to Textile Segment and hence has only single reportable segment.

12. Related Party Disclosures :

Nature of related parties and relationship :

a) Key Management Personnel : Kantilal K. Sheth Chairman & Managing Director

b) Associates : Resons Investments Pvt. Ltd.

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Mar 31, 2010

1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

a) Bank Guarantees Outstanding Rs. 0.95 Lacs (Rs. 0.95 Lacs)

b) Dividend of Rs. 31.88 Lacs on 9 % OptionallyConvertible Cumulative Redeemable Preference Shares (OCCRPS) (Rs. 27.38 Lacs)

c) Counter guarantee issued by the Company to Shri K. K. Sheth (Managing Director) having given personal guarantee of Companys borrowings to the extent of Rs. 4,775.00 Lacs (Rs. 4,775.00 Lacs).

2. (i) The Secured Loans viz. Term Loans and Working Capital Loans from the Banks and Financial Institutions were secured by mortgage of Companys fixed assets and hypothecation of Companys movable assets.

(ii) These Loans are also collaterally secured by personal guarantee of Shri Kantilal K. Sheth (Managing Director)

3. (a) IDBI acting on behalf of Secured Lenders, took possession of the Mills Premises housing Land, Buildings, Plant & Machinery, Stores & Spares and all other Movable Assets on 17th October, 2006 under the Securitisation Act and were sold by public auction on 8th February, 2007 to M/s. Nandan Exim Ltd. for a consideration of Rs,3500 Lacs; which in turn transferred the said deal to its associate concern viz. Shanti Exports Pvt. Ltd. (SEPL)

(b) SEPL paid the consideration of Rs. 3500 Lacs plus interest of Rs. 20.51 Lacs for delayed payment to IDBI. The said total consideration was distributed amongst the secured lenders as reflected by IDBI in its Application filed before D.R.T. at Ahmedabad.

(c) Based on the above information, the Company has carried out effects in accounts for respective share of secured lenders by appropriating the respective share against Interest Accrued & Due, Term Loans & Working Capital Loans as reflected in Schedule III.

(d) Development Credit Bank (DCB), one of the secured lenders had assigned its financial assistance to Asset Reconstruction Company India Ltd. (AFSCIL). During the year, the Company arrived at an One Time Settlement (OTS) of the dues to ARCIL for a sum of Rs. 7 Lacs and obtained No Due Certificate Dt. 28th October, 2009. Against total dues of Rs. 528.51 Lacs carried in the books; after considering a sum of Rs. 169.15 Lacs received by DCB towards its share from IDBI and OTS consideration of Rs. 7 Lacs, the balance of Rs. 352.36 Lacs comprising write-back of Principal amount has been transferred to Capital Reserve as reflected in Schedule II.

(e) Secured Lenders have filed applications before respective Debt Recovery Tribunal (DRT) under "Recovery of Debts Due to Banks and Financial Institutions Act, 1993" (RDB Act) for their respective gross dues aggregating to Rs. 11,396.26 Lacs.

As against this, after adjustment of Rs. 3,330.85 Lacs being pro-rata sale proceeds of the assets as referred to in para (b) above, a net-liability of Rs. 6,938.69 Lacs is carried in the books of the Company under Schedule III viz. Secured Loans.

During the current year, in O.A. No. 72 of 2008 filed by Bank of India, D.R.T. Mumbai passed an order Dt. 28-5-2010 allowing the reliefs of Rs. 4,834.70 Lacs as prayed and directed for issue of recovery certificate. Applications filed by other lenders are still pending.

Neither any provision is made in accounts in respect of difference of Rs. 1,126.72 Lacs between the amount claimed/payable and the amount carried in the books; nor any quantification is made in respect of additional liability arising on account of interest awarded/as may be awarded by D.R.T. in other pending cases.

4. The development referred to above videpara 4(a) amounts to disposal of practically entire undertaking. The Company has neither any manufacturing activity nor any business activity, however the accounts for the current year too have been prepared on the basis of fundamental accounting assumption of "going, concern as followed hitherto.

5. The Sales-tax Department at Morbi had passed Assessment Orders under Gujarat VAT & Central Sales-tax for the financial years 2003-04 & 2005-06 and raised demand of Rs. 176.62 Lacs in the previous year. Similar demand of Rs. 54.30 Lacs, has been raised during the year for Asst. Year 2006-07. Based on the High Court judgment Dt. 18th December, 2008 wherein it has been ruled that the Assets have been sold to Shanti Exports Pvt. Ltd. (SEPL) with statutory liabilities, the Company is not liable for these dues. Relevant orders/demand notices have been forwarded by the Company to SEPL. for doing needful.

6. Pursuant to reliefs and concessions announced by the Govt. of Gujarat to Earthquake Affected Units, the Industry Commissioner had sanctioned Rs. 46.20 Lacs as Capital Subsidy and Rs. 20 Lacs towards Interest Subsidy. Out of these Rs. 18.48 Lacs and Rs. 10 Lacs respectively were disbursed and accounted for in an earlier year on receipt basis. Balance of Rs. 27.72 Lacs and Rs. 10 Lacs respectively would be accounted for in the year of actual disbursement.

7. In Schedule IX, Sundry Creditors includes Dividend of Rs. 33.50 Lacs received in 1998 and 1999 in respect vf 10 (Ten) Lacs units of US-64 Scheme of Unjt Trust of India (UTI) and sold in 1992-93.

UTI had filed a suit in Bombay High Court for claim of Rs. 307.66 Lacs comprising of net dividend of Rs. 120.06 Lacs paid by it relating to the period 1992-93 to 1998-99, T.D.S. of Rs. 31.44 Lacs thereof and Re-purchase of Bonus Units of Rs. 14.65 Lacs allotted thereon alongwith interest thereon. The said suit which had been transferred to Debt Recovery Tribunal (DRT), Mumbai. (bearing O.A. No. 41 of 2005), is pending.

The Company had in turn filed a Suit in Honble Bombay High Court (bearing OOCJ Suit No. 423 of 2003) against UTI for putting Stop Transfer Mark on the other units held by it and reflected as Long Term Investments, non-payment of Dividend thereon and non-issue of 6.75% Tax-free US-64 Bonds for the Units converted upon termination of US-64 Scheme. The said matter is also pending.

8. (a) The Company has not provided for liability in respect of Bonus for the current year, amount whereof is not ascertained.

(b) In the absence of ascertainment of liability in respect of Leave Encashment due to employees as on 31st March, 2010, no provision has been made in accounts for the same, which is not in conformity with the Accounting Standard AS - 15 viz. "Accounting for Retirement Benefits in the Financial Statements of Employer" issued by the Institute of Chartered Accountants of India.

9. In the absence of necessary information relating to the suppliers registered as Micro, Small and Medium enterprises under the Micro, Small and Medium Enterprises (Development) Act, 2006, the Company has not been able to identify such suppliers as a result of which the required information could not be complied and disclosed.

10. Income-tax:

(a) Assessments of the Company have been finalised upto and including Assessment Year 2007- 08. In view of further losses incurred, no provision for taxation is made for the current year.

(b) Reference is invited to para 11(b) of Notes to Accounts for the year ended 31-3-2009 re: demand of Rs. 220.96 raised by Income-tax for Asst. Year 2002-03 towards penalty U/s 271 (1) (c) which was deleted by C.I.T. (A). The said order of C.I.T. (A) has been contested by revenue in second appeal before Income-tax Appellate Tribunal. However, the Company is confident of success thereat.

(c) The Company had recognised and accounted for.net Deferred Tax Asset of. Rs. 14.74 Lacs till the previous year ended 31st March, 2002 as provided in the Accounting Standard AS-22 viz. "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India.

In view of suspension of production and business activities since October 2006 and disposal of all the assets leading to absence of foreseeable profits in near future to absorb balance of brought forward losses/depreciation, no element has been recognised in accounts as on 31-3- 2010 in respect of Deferred Tax Asset arising therefrom.

11. The Company does not have the practice to call for balance confirmation in respect of Loans & Advances, Deposits, Sundry Debtors and Sundry Creditors. In view of substantial outstanding in accounts of secured borrowings which have become NPA and other scattered dormant bank accounts, it is not possible to obtain balance confirmation in respect thereof. Hence balances in these accounts are shown as per the books of accounts and are subject to confirmations and reconciliation, if any.

12. Segment Reporting : The Companys operations related only to Textile Segment and hence has only single reportable segment.

13. Earning per Share : Information as to Earning Per Share as per Accounting Standard AS - 20 viz. "Earning Per Share" issued by The Institute of Chartered Accountants of India:

14. Related Party Disclosures :

Nature of related parties and relationship :

a) Key Management Personnel : Kantilal K. Sheth

Chairman & Managing Director

b) Associates : Resons Investments Pvt. Ltd.

c) Transactions with Related Parties : (Amount Rs. Lacs)

15. Details in respect of Products Manufactured, Turnover, Opening Stocks, Closing Stocks, Purchases, Raw Materials Consumed etc.

16. Balance Sheet Abstract and Companys General Business Profile

(In terms of amendment to Schedule VI Part IV of the Companies Act, 1956)

I. Generic Name of Principal Products / Services of the Company (as per monetary terms)

Item Code No. (ITC Code) : 520535 /01

Product Description Yarn