Rudra Ecovation Ltd. के अकाउंट के लिये नोट

Mar 31, 2024

Rights, preferences and restrictions attaching to each class of shares incl uding restrictions on the distribution of dividends and the repayment of capital:

Equity shares: The company has one class of equity share having par value of Rs. 1/- per share. Every member holding equity shares and entitled to vote and present in person or by proxy shall have voting rights which shall be in the same proportion as the capital paid on the equity share or shares (whether fully paid up or partly paid up) held by him bears to the total paid up equity capital of the company.

11. Other Equity

Redeemable Preference Shares

The Company has issued 12,00,000 (PY 12,00,000) 4% Non-Cumulative Redemable Preference Shares of Rs. 100/- Each on 31st August 2009. The said preference shares shall be redeemed after the expiry of 16th, 17th & 18th year from the date of allotment by repayments of the amounts paid up thereon along with such premium not exceeding 4% per annum (to be calculated for the period of 15 years) on the face value of preference shares for the period to be reckoned from the date of allotment in installment of 30%, 35%, and 35% respectively.

34. In the opinion of the management, all current assets, loan and advances their value if realized in the ordinary course of business, at least to the amount at which they are stated except expressly stated otherwise.

35. Balance of Sundry Debtors, Sundry Creditors and Loans and Advances are subject to confirmation and reconciliation.

36. Other Regulatory Information

(i) The Company does not have any benami property where any proceedings have been initiated or pending against the Company for holding such benami property

(ii) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year under review.

(iii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(iv) The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

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

(vi) 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:

(a) 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;

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

(vii) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(x) The Company does not have any immovable property whose title deeds are not held in the name of the Company.

(xi) As per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016, the Company is not a Core Investment Company (CIC) and the group does not have any CIC.

(xii) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

37. During the year under review, the company have issued and allotted 1,50,00,000 convertible warrants at a price of Rs.10/- per warrant to the non-promoters on preferential basis with a right to the warrent holders to apply for and be allotted 1 fully paid up equity share of the company of face value of Rs. 1/- each at a premium of Rs. 9/-per share for each warrant withina period of 18 months from the date of allotment of warrants.

38. The Company has made assessment of the inventories carried during the year under review on the basis its nature and ageing. On the basis of its assessment the company has identified inventories amounting to Rs.975.27 Lacs as slow moving inventories and segregated it under the head " Other non current assets" in the Statement of Assets & Liabilities as at 31st March 2024.

39. Leases:

(i) Leases as Lessee

The company has long term lease contract for factory land situated plot no.43-44, Industrial area Barotiwala District Solan which has lease term for 99 years. Generally, The Company''s obligations under its lease are secured by the lessor''s title to the leased assets. The company is restricted from assigning and subleasing the leased assets.

The company also has certain leases of office premises and machinery and equipment with lease term of 12 months or less. The company applies the short term lease recognition exemptions for these leases.

Payments associated with short term leases are recognized on a straight line basis as an expense in statement of profit and loss. Short term leases are leases with a lease term of 12 months or less.

40. There are cheques amounting to Rs.10.00 Lacs issued in FY 2018-19 which are not yet cleared from the bank accounts of the company as on 31.03.2024are shown under the other current liabilities at Note no.18.

42. The company is operating in single segment i.e Textiles i.e. Knitted Fabric and Blended Yarn. Hence segment reporting as required under INDAS108 (Operating Segments) is not applicable.

44. Dues to Micro And Small Enterprises - As Per Micro, Small And Medium Enterprises Development Act, 2006 (''MSMED'' ACT)

This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

45. The summarized position of Post-Employment benefits and long term employee benefits recognized in the Profit & Loss Account and Balance Sheet as required in accordance with Indian Accounting Standard (Ind AS 19 Employee Benefits) are as under:

a. Gratuity

The principal assumptions used in actuarial valuation of gratuity are as below:

b. Provident Fund

During the year the company has recognized an expense of Rs. 4.09 Lakhs (Previous Year Rs. 6.54Lakhs) towards

provident fund scheme.

c. Leave Encashment and Bonus

During the year the company has recognized an expense of Leave Encashment and Bonus for Rs. 12.58 Lakhs and Rs.

17.47 Lakhs respectively (Previous Year 11.58 Lakhs and Rs. 15.77 Lakhs respectively)

46. The Ministry of Corporate Affairs introduced Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, which requires the Company to have a feature of recording audit trail (edit log) facility for its accounting softwares used for maintaining its books of account and the same has operated throughout the year for all relevant transactions recorded in the respective softwares. The Company is in process of enabling the audit trail (edit log) feature for its accounting softwares. The Company will also ensure that audit trail (edit log) once enabled can not be changed.

47. The figures of the previous year have been rearranged/ regrouped, wherever necessary to facilitate comparison.

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Mar 31, 2023

. In the opinion of the management of the company, the current assets, loans& advances have a value, if realized, in the ordinary course of business, at least equal to that stated in the Balance Sheet.

. Balance of Sundry Debtors, Sundry Creditors and Loans &Advances are subject to confirmation and reconciliation.

The company had defaulted on payments of its debt obligations to its lender leading to its borrowing being classified as NPA the StateBank of India as on 31.03.2021.State Bank of India vide its letter No.SAMB/HFL/2021-22/958 dated 28.03.2022, has sanctioned One Time Compromise settlement for an amount of Rs.17.72 crores against principal outstanding of Rs.19.63 cr. and total dues of Rs.21.06 cr. in full & final settlement of the account. The said amount has been repaidby the company in various installments till 28.02.2023.

. The company has provided interest amounting to Rs.194.82 Lakhs on NPA Classififed accounts with State Bank of India upto 31.12.2021. However, the company has stopped any further provision of interest in its books of account in view of comprise settlement with State Bank of India vide their letter No.SAMB/HFL/2021-22/958 dated 28.03.2022. During the current year, after paying the interest, balance amount has been transferred to Profit & Loss account under the head ‘Exceptional Items’.

. The company has not submitted any quarterly returns or statements of current assets to State Bank of India since the accounts of the company were classified as NPA by State Bank of India during the year under reference.

. The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year under review.

Leases:

(i) Leases as Lessee

The company has long term lease contract for factory land situated plot no.43-44, Industrial area Barotiwala District Solan which has lease term for 99 years. Generally, The Company’s obligations under its lease are secured by the lessor’s title to the leased assets. The company is restricted from assigning and subleasing the leased assets.

The company also has certain leases of office premises and machinery and equipment with lease term of 12 months or less. The company applies the short term lease recognition exemptions for these leases.

Payments associated with short term leases are recognized on a straight line basis as an expense in statement of profit and loss. Short term leases are leases with a lease term of 12 months or less.

42.There are cheques amounting to Rs.10.00 Lacs issued in FY 2018-19 which are not yet cleared from the bank accounts of the company as on 31.03.2023are shown under the other current liabilities at Note no.18.

b. Provident Fund

During the year the company has recognized an expense of Rs. 6.54 Lakhs (Previous Year Rs. 9.44 Lakhs) towards provident fund scheme.

c. Leave Encashment and Bonus

During the year the company has recognized an expense of Leave Encashment and Bonus for Rs. 11.58 Lakhs and Rs. 15.77 Lakhs respectively (Previous Year 14.05 Lakhs and Rs. 19.52 Lakhs respectively)

46. The figures of the previous year have been rearranged/ regrouped, wherever necessary to facilitate comparison.

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Mar 31, 2016

1. The Company has paid/provided the managerial remuneration to the following persons which is in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act :-

2. The Company has no information about the parties who has registered themselves under Micro, Small and Medium Enterprises Development Act, 2006.

3. The earnings per share (EPS) disclosed in the profit and loss account have been calculated as under:-

*As per the re habilitation scheme sanctioned by the Hon''ble BIFR, the company have to redeem 1,50,000 16.5% Redeemable Preference Shares of Rs.100 each at 20% of its face value and without payment of dividend. Therefore No Dividend has been assumed on said redeemable preference shares while calculating EPS.

4. Deferred Taxation

The disclosure requirements as per the Accounting Standards (AS-22) on ''Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India is as under:-

5. (i) The related party disclosures as per Accounting Standard-18 issued by The Institute of Chartered Accountants of India are as under:-

I. Enterprises under the common control as the company

- M/s Shiva Texfab Limited

- M/s Shiva Specialty Yarns Ltd

- M/s Yogindera Worsted Limited

- M/s Shiva Spin-N-Knit Ltd

- M/s K.K.Fibres Ltd.

- M/s Indian Yarns Ltd.

II. Key Management Persons

- Sh. Akhil Malhotra

- Sh. Mayank Malhotra

- Sh. Gian Chand Thakur

- Sh. Ashwani Kumar (CFO)

- Sh. Amit Sharma (Company Secretary)

6. In the opinion of the management, all current assets, loan and advances their value if realized in the ordinary course of business, at least to the amount at which they are stated except expressly stated otherwise.

7. Balance of Sundry Debtors, Sundry Creditors and Loans and Advances are subject to confirmation and reconciliation.

8. As per the rehabilitation scheme sanctioned by the Hon''ble BIFR, the company shall redeem 1,65,000 16.5% Redeemable Preference Shares of Rs.100 each at 20% of its face value within period of two years starting from Financial Year 2010-11 towards full and final settlement and accumulated dividend of past years shall not be paid. Out of it 1,50,000 16.5% Redeemable Preference Shareholders has not approached the company for redemption of the same.

9. The company has only one segment "Cotton and Blended Yarn", so the disclosure requirements in accordance with guiding principles enunciated in Accounting Standard-17 "Segment Reporting", are not applicable.

10. The lease rentals charged during the period and the obligations on long term, non-cancellable operating leases payable as per the rentals stated in the respective arrangements are as follows:-15. The summarized position of Post-Employment benefits and long term employee benefits recognized in the Profit & Loss Account and Balance Sheet as required in accordance with Accounting Standard (AS15) are as under:

11.. Gratuity

The principal assumptions used in actuarial valuation of gratuity are as below:

12. Provident Fund

During the year the company has recognized an expense of Rs. 18,02,428/- (Previous Year Rs. 12,53,334/-) towards provident fund scheme.

13. Leave Encashment

During the year the company has recognized an expense of Rs. 9,64,674/- (Previous Year Rs. 8,72,951/-)

14. The figures of the previous year have been rearranged/ regrouped, wherever necessary to facilitate comparison.

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Mar 31, 2015

1. (a) The Company has furnished Bank Guarantee of Rs.36.40 lacs (PY Rs.26.80 Lacs) with H.P. Excise and Taxation Department under protest for Entry Tax. The matter is still pending with Hon'ble High Court of H.P. Shimla.

(b) The credit facilities being availed by the company are restructured by the lender bank i.e. State Bank of India. On the basis of restructuring scheme, the bank has stipulated the Right to Recompense amounting to Rs.5.91 crores.

2. Managerial Remuneration of Rs. 6.77 Lacs has been paid to Sh. Pawan Nagpal, Director and Sh.Gian Chand Thakur, Director of the Company during the year under review (Previous Year Rs.6.52 Lacs) which is as per provisions of section 197 and 198 of the Companies Act 2013.

3. The Company has no information about the parties who has registered themselves under Micro, Small and Medium Enterprises Development Act, 2006.

4. The earnings per share (EPS) disclosed in the profit and loss account have been calculated as under:-

*As per the re habilitation scheme sanctioned by the Hon'ble BIFR, the company have to redeem 1,65,000 16.5% Redeemable Preference Shares of Rs.100 each at 20% of its face value and without payment of dividend. Therefore No Dividend has been assumed on said redeemable preference shares while calculating EPS.

5. Deferred Taxation

The disclosure requirements as per the Accounting Standards (AS-22) on 'Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India is as under:- Net Deferred Tax Liability as on 31st March, 2014 has been recognized by applying the tax rate applicable for the current financial year as under:-

6. (i) The related party disclosures as per Accounting Standard-18 issued by The Institute of Chartered Accountants of India are as under:-

I. Enterprises under the common control as the company

- M/s Shiva Texfab Limited

- M/s Shiva Specialty Yarns Ltd

- M/s Yogindera Worsted Limited

- M/s Shiva Spin-N-Knit Ltd

- M/s K.K.Fibres Ltd.

- M/s Indian Yarns Ltd.

II. Key Management Persons

- Sh. Akhil Malhotra

- Sh. Daljeet Singh Rana (Resigned on 14.02.2015)

- Sh. Mayank Malhotra(Appointed on 12.04.2013)

- Sh. Pawan Nagpal (Resigned on 12.11.2014)

- Sh. Gian Chand Thakur(Appointed on 12.11.2014)

7. As per the rehabilitation scheme sanctioned by the Hon'ble BIFR, the company shall redeem 1,65,00016.5% Redeemable Preference Shares of Rs.100 each at 20% of its face value within period of two years starting from Financial Year 2010-11 towards full and final settlement and accumulated dividend of past years shall not be paid. Out of it 1,50,000 16.5% Redeemable Preference Shareholders has not approached the company for redemption of the same.

8. The company has only one segment "Cotton and Blended Yarn", so the disclosure requirements in accordance with guiding principles enunciated in Accounting Standard-17 "Segment Reporting", are not applicable.

9. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being depreciated / amortized over the revised/remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs.344.60 Lacs .

10. The summarized position of Post-Employment benefits and long term employee benefits recognized in the Profit & Loss Account and Balance Sheet as required in accordance with Accounting Standard (AS15) are as under:

b. Provident Fund

During the year the company has recognized an expense of Rs. 12,53,334/- (Previous Year Rs. 10,23,925/-) towards provident fund scheme.

c. Leave Encashment

During the year the company has recognized an expense of Rs. 8,72,951/- (Previous Year Rs. 4,73,247/-)

11. The figures of the previous year have been rearranged/ regrouped, wherever necessary to facilitate comparison.

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Mar 31, 2014

1. Contingent liability not provided for

(Rs. in Lacs)

Particulars As At As At 31.03.2014 31.03.2013

Contingent liability not provided for

-Entry Tax with H.PExcise and Taxation Deptt. 26.80 28.38

-Processing Fees of Dy.Director of Industries, Solan 149.77 149.16

-Overdrawal Demand and IDC Charges of HPSEB 12.24 12.24

-Demand against ED on Electrcity Charges of HPSEB 4.81 44.81

- Damages under ESI 15.00 59.40

- Debtors under Protest 62.70 50.90

Total 271.32 304.89

2. The Company has furnished Rs.26.80 lacs (PY Rs.28.38 Lacs) as Bank Guarantee with H.P Excise and Taxation Department under protest for Entry Tax. The matter is still pending with Hon''ble High Court of H.P. Shimla.

3. Managerial Remuneration of Rs. 6.52 Lacs has been paid to Sh. PPThakhural, Director and Sh.Pawan Nagpaul, Director of the Company during the period under review (Previous Year Rs.12.25 Lacs) which is as per provisions of section 198 and 309 of the Companies Act 1956.

4. The Company has no information about the parties who has registered themselves under Micro, Small and Medium Enterprises Development Act, 2006.

5. (i) The related party disclosures as per Accounting Standard-18 issued by The Institute of Chartered

Accountants of India are as under:-

I. Enterprises under the common control as the company

- M/s Shiva Texfab Limited

- M/s Shiva Specialty Yarns Ltd

- M/s Yogindera Worsted Limited

- M/s Shiva Spin-N-Knit Ltd

- M/s K.K.Fibres Ltd.

- M/s Balmukhi Textiles Pvt Ltd.

- M/s Brijeshwari Textiles Pvt Ltd

II. Key Management Persons

- Sh. Akhil Malhotra

- Sh. Rajinder Kumar (Resigned on 16.08.2013)

- Sh. Daljeet Singh Rana

- Sh. Prem Parkash Thukral(Resigned on 31.07.2013)

- Sh.Mayank Malhotra(Appointed on 12.04.2013)

- Sh.Pawan Nagpaul (Appointed on 01.08.2013)

6. In the opinion of the management, all current assets, loan and advances their value if realized in the ordinary course of business, at least to the amount at which they are stated except expressly stated otherwise.

7. As per the rehabilitation scheme sanctioned by the Hon''ble BIFR, the company shall redeem 1,65,000 16.5% Redeemable Preference Shares of Rs.100 each at 20% of its face value within period of two years starting from Financial Year 2010-11 towards full and final settlement and accumulated dividend of past years shall not be paid. Out of it 1,50,000 16.5% Redeemable Preference Shareholders has not approached the company for redemption of the same.

8. The company has only one segment "Cotton and Blended Yarn", so the disclosure requirements in accordance with guiding principles enunciated in Accounting Standard-17 "Segment Reporting", are not applicable.

b. Provident Fund

During the year the company has recognized an expense of Rs. 10,23,925/- (Previous Year Rs. 21,59,213/-) towards provident fund scheme.

c. Leave Encashment

During the year the company has recognized an expense of Rs. 4,73,247/- (Previous Year Rs. 5,71,085/-) 15. The figures of the previous year have been rearranged/ regrouped, wherever necessary to facilitate comparison.

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Mar 31, 2013

1. Contingent liability not provided for

(Rs. in Lacs) Particulars As At As at 31.03.2013 31.03.2012

Contingent liability not provided for

-Entry Tax with H.P Excise and Taxation Deptt. 28.38 14.71

-Processing Fees of Dy.Director of Industries, Solan 149.16 149.16

-Overdrawal Demand and IDC Charges of HPSEB 12.24 12.24

-Demand against ED on Electricity Charges of HPSEB 4.81 4.81

- Damages under ESI 59.40 59.40

- Debtors under Protest 50.90

Total 304.89 240.32

2. The Company has furnished Rs.28.38 lacs (PY Rs.14.71 Lacs) as Bank Guarantee with H.P. Excise and Taxation Department under protest for Entry Tax. The matter is still pending with Hon''ble High Court of H.P. Shimla.

3. Managerial Remuneration of to Rs. 19.81 Lacs has been paid to Sh. Akhil Malhotra, Managing Director and Sh. PPThukral, Director of the Company during the period under review (Previous Year Rs.19.03 Lacs) which is as per provisions of section 198 and 309 of the Companies Act 1956.

4. The Company has no information about the parties who has registered themselves under Micro, Small and Medium Enterprises Development Act, 2006.

5. The earnings per share (EPS) disclosed in the profit and loss account have been calculated as under:-

*As per the rehabilitation scheme sanctioned by the Hon''ble BIFR, the company have to redeem 1,65,000 16.5% Redeemable Preference Shares of Rs.100 each at 20% of its face value and without payment of dividend. Therefore No Dividend has been assumed on said redeemable preference shares while calculating EPS.

6. Deferred Taxation

The disclosure requirements as per the Accounting Standards (AS-22) on ''Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India is as under:-

7. (i) The related party disclosures as per Accounting Standard-18 issued by The Institute of Chartered

Accountants of India are as under:-

I. Enterprises under the common control as the company

- M/s Shiva Texfab Limited

- M/s Shiva Speciality Yarns Ltd

- M/s Yogindera Worsted Limited

- M/s Shiva Spin-N-Knit Ltd

- M/s K.K.Fibres Ltd.

- M/s Balmukhi Textiles Pvt Ltd.

- M/s Brijeshwari Textiles Pvt Ltd

- M/s Metro Synethics (Proprietorship concern of Sh. Rajinder Kumar)

8. Key Management Persons

- Sh. Akhil Malhotra

- Sh. Rajinder Kumar

- Sh. Daljeet Singh Rana

- Sh. Prem Parkash Thukral

9. In the opinion of the management, all current assets, loan and advances their value if realized in the ordinary course of business, at least to the amount at which they are stated except expressly stated otherwise.

10. Balance of Sundry Debtors, Sundry Creditors and Loans and Advances are subject to confirmation and reconciliation.

11. As per the rehabilitation scheme sanctioned by the Hon''ble BIFR, the company shall redeem 1,65,000 16.5% Redeemable Preference Shares of Rs.100 each at 20% of its face value within period of two years starting from Financial Year 2010-11 towards full and final settlement and accumulated dividend of past years shall not be paid. Out of it 1,50,000 16.5% Redeemable Preference Shareholders has not approached the company for redemption of the same.

12. The company has only one segment ''Cotton and Blended Yarn'', so the disclosure requirements in accordance with guiding principles enunciated in Accounting Standard-17 ''Segment Reporting'', are not applicable.

13. The figures of the previous year have been rearranged/ regrouped, wherever necessary to facilitate comparison.

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Mar 31, 2012

1. Contingent liability not provided for

(Rs. in Lacs)

Particulars As At As At

31.03.2012 31.03.2011

Contingent liability not provided for

- Entry Tax with H.P. Excise and Taxation Deptt. 14.71 Nil

- Processing Fees of Dy. Director of Industries, Solan 149.16 Nil

- Overdrawal Demand and IDC Charges of HPSEB 12.24 Nil

- Demand against ED on Electricity Charges of HPSEB 4.81 Nil

- Damages under ESI 59.4 Nil

Total 240.32

2. The Company has furnished Rs.14.71 lacs as Bank Guarantee with H.P. Excise and Taxation Department under protest for Entry Tax. The matter is still pending with Hon'ble High Court of H.P. Shimla.

3. Sh. Akhil Malhotra, Managing Director of the Company has drawn a Salary amounting to Rs. 1903226/-(Rs. 2.50 lacs per month) during the period under review (Previous Year Nil).

4. The Company has no information about the parties who has registered themselves under Micro, Small and Medium Enterprises Development Act, 2006.

5. Deferred Taxation

The disclosure requirements as per the Accounting Standards (AS-22) on ‘Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India is as under:-

6. (i) The related party disclosures as per Accounting Standard-18 issued by The Institute of Chartered

Accountants of India are as under:-

I. Enterprises under the common control as the company

- M/s Shiva Texfab Limited

- M/s Shiva Specialty Yarns Ltd

- M/s Yogindera Worsted Limited

- M/s Shiva Spin-N-Knit Ltd

- M/s K.K.Fibers Ltd.

- M/s Balmukhi Textiles Pvt Ltd.

- M/s Brijeshwari Textiles Pvt Ltd

- M/s Metro Synthetics (Proprietorship concerned of Sh. Rajinder Kumar)

11. Key Management Persons

- Sh. Akhil Malhotra

- Sh. Rajinder Kumar

- Sh. Raj Mittal

- Sh. Rajan Dhawan

- Sh. Sushil Kumar Singla

- Sh. Daljeet Singh Rana

- Sh. Prem Prakash Thukral

7. In the opinion of the management, all current assets, loan and advances their value if realized in the ordinary course of business, at least to the amount at which they are stated except expres H'y stated otherwise.

8. Balance of Sundry Debtors, Sundry Creditors and Loans and Advances are subject to confirmation and reconciliation.

9. As per the rehabilitation scheme sanctioned by the Hon'ble BIFR, the company shall redeem 1,65,000 16.5% Redeemable Preference Shares of Rs.100 each at 20% of its face value within period of two years starting from Financial Year 2010-11 towards full and final settlement and accumulated dividend of past years shall not be paid. Out of it the company has redeemed 15000 16.5% Redeemable Preference Shares of Rs.100 each of National Insurance Company Limited by paying Rs.3.00 lacs and balance amount of Rs.12.00 lacs has been transferred to Capital Reserve.

10. The company has only one segment “Cotton and Blended Yarn”, so the disclosure requirements in accordance with guiding principles enunciated in Accounting Standard-17 “Segment Reporting”, are not applicable.

11. The figures of the previous year have been rearranged/ regrouped, wherever necessary to facilitate comparison.

12. Schedules I to XIX form an integral part of the accounts.

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Mar 31, 2010

1. Contingent liability not provided for

Rs. in Lacs)

Particulars Particulars As At As At

31.03.2010 30.09.2009

Claims* (excluding claims by employees where amount are not ascertainable) not acknowledged as debt:

-Letter of Credit Unutilized (Net of Margin) _ -

-Estimated amount of contracts remaining to be executed on capital 250.00 250.00 account (Net of advances);_



2. There are no disputed dues of custom duty, wealth tax, Sales Tax, Service Tax, Central Excise and cess matters which have not been deposited by the Company.

3. No employee was in receipt of remuneration aggregating to Rs.2400000/- per annum through out the year or Rs.200000/- per month for a part of the year.

4. The company has drawn accounts for the current year for a period of 6 months period ended on 31.03.2010 as against 18 months for the immediately preceding year. Therefore the previous year figures are not comparable.

5. The Company has no information about the parties who has registered themselves under Micro, Small and Medium Enterprises Development Act, 2006.

6 Borrowing cost capitalized (including capital work in progress) during the period amounts to Rs.29.64 Lacs (Previous Year Rs.51.88 Lacs).

7. Deferred Taxation

In view of carried forward losses of earlier years, no provision, for deferred tax liability/assets has been provided.

8. (i) The related party disclosures as per Accounting Standard-18 issued by The Institute of Chartered Accountants of India are as under: -

I. Enterprises under the common control as the company

- Garg Corporation Limited

- Garg International Pvt Ltd.

- Punjab Coal Enterprises Pvt Ltd.

- Garg Infrastructures Pvt Ltd.

- Roland Impex Pvt Ltd.

- Roland Exports

- Liberty Cements Private Limited

II. Key Management Persons

Sh. Rajesh Gupta (Managing Director) Sh. Sanjay Goel

- Sh. Raj Mittal

- Sh. Sita Ram Singla Sh. Suraj Parkash Setia

Sh. Ajai Kumar Sukhram Singh

- Sh. Rahul Kalia

Sh. Daljeet Singh Rana

9. Cash Credit and Term Loan Facilities raised from State Bank of India, SCB, Miller Ganj, Ludhiana are secured primarily by way of 1st charge on all the current and fixed assets of the company including equitable mortgage of leasehold rights of factory land and building. Both the facilities are further secured by the personal guarantee of the directors.

10. Vehicle loan taken from ICICI Bank Ltd., Kotak Mahindra Bank Ltd and Magma Sharachi Finance Limited are secured by way of hypothecation of the vehicle against which the loan has been taken.

11. As per the rehabilitation scheme sanctioned by the Honble BIFR, the company shall redeem 1,65,000 16.5% Redeemable Preference Shares of Rs.100 each at 20% of its face value within period of two years starting from Financial Year 2010-11 towards full and final settlement and accumulated dividend of past years shall not be paid.

12. The company has only one segment "Cotton and Blended Yarn", so the disclosure requirements in accordance with guiding principles enunciated in Accounting Standard-17 "Segment Reporting", are not applicable.

13. The figures of the previous year have been rearranged/ regrouped, wherever necessary to facilitate comparison.

14. Schedules I to XX form an integral part of the accounts.