KC Textiles Ltd. के अकाउंट के लिये नोट

Mar 31, 2010

1. Contingent liabilities not provided for liability for Municipal Tax Rs.4.81 Lacs (Rs. 4.81 Lacs).

2. In the opinion of the Board, all the Current Assets, Loans &Advances (other than shown doubtful) have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

3. Some of the Current liabilities, Debtors and Advances are subject to confirmation/reconciliation.

4. Advances (Schedule—7) include the insurance claims of Rs.41 Lacs (Rs. 41 Lacs) for which application is pending before National Consumer Dispute Redressel Forum, New Delhi.

5. Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in the accounts. However in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of thisAct is not expected to be material.

6. In accordance with Accounting Standard-22 Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, the Company has not recognised cumulative deferred tax assets for preceding years and for the year as there is no certainty that sufficient future taxable income will be available against which unabsorbed depreciation or carried forward losses as per Income Tax Assessments can be realised/set off. Due to the above reasons the break up of deferred tax assets into major components of the respective balance has not been calculated & disclosed.

7. As per AS (15) Revised on Employee Benefits details of expenses for the year ended 31st March 2010 are given as under:-

8. Related Party Disclosures under Accounting Standard-18List of Related Parties (As identified by the Management)

I) Enterprises owned or significantly influenced by key management personnel or their relatives:

K. C INTERNATIONAL LIMITED, RITEX EXPORTS LIMITED, K.C FIBRES LIMITED, K.C. CASTINGS LIMITED , H.R SPINNING MILLS PVT. LIMITED, K.C. GOEL & SONS (H.U.F.), RATI LAL HARI LAL & CO., INDIAN YARN & CANVAS TRADERS

ii) Key Management Personnel- Directors- Mr. SATISH KUMAR GOEL

iii) Transactions with Related Parties: Particulars of Enterprises owned or significantly influencedby key management PersonnelVolumeoftransactionsfortheyear

Note : Amounts written off or written back in respect of debts due from & to related parties Nil (previous year Nil). In respect of above parties there is no.provision for doubtful debts as on 31st March, 2010.

9. The company had sold substantial part of its fixed assets to pay the loans which has affected the manufacturing activities of the company. However, the company is pursuing the other main objects of trading in goods and therefore sale of fixed assets do not affect the going concern assumption.

10. As per Accounting Standard-17 "Segment reporting" issued by the Institute of Chartered Accountants of India the company has only one business segment hence no separate disclosure of segment wise information is made.

11. Additional information as required by Part II of Schedule VI of the Companies Act, 1956.

C) RAW MATERIALS CONSUMED NIL (NIL)

D) STORES & SPARES CONSUMED NIL (NIL)

E) VALUE OF IMPORTS ON CIF BASIS NIL (NIL)

F) EXPENDITURE IN FOREIGN CURRENCY NIL (NIL)

G) EARNINGS IN FOREIGN CURRENCY NIL (NIL)

Note : Figures in brackets above are in respect of previous year.

12. Previous year figures have been regrouped/rearranged wherever found necessary to make them comparable with those of Current year.

13. Schedules 1 to 15 form an integral part of Balance Sheet and Profit and Loss Account and have been duly authenticated.