Notes to Accounts of AI Champdany Industries Ltd.

Mar 31, 2025

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event and it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation. Provisions are determined by discounting the
expected future cash flows (representing the best estimate of the expenditure required to settle the present
obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

4B.7.2 Contingent Liabilities

Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events but is not recognized because it is not possible that
an outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of
the amount of the obligations cannot be made. The Company discloses the existence of contingent liabilities in
Other Notes to Financial Statements.

4B.7.3 Contingent Assets

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an
inflow of economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow of
economic benefits is probable.

4B.8 NON-CURRENT ASSETS HELD FOR SALE

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use. This condition is regarded as met only
when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that
are usual and customary for sales of such asset (or disposal group) and its sale is highly probable. Management
must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one
year from the date of classification.

Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying
amount and fair value less costs to sell. Non-current assets are not depreciated or amortised.

4B.9 LEASES

Where the Company is the lessee
Right of use assets and lease liabilities

A lease is defined as ''a contract, or part of a contract, that conveys the right to use an asset (the underlying asset)
for a period of time in exchange for consideration''. The Company enters into leasing arrangements for various
assets. To assess whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether: (I) the contract involves the use of an identified asset (ii) the Company obtains substantially all
of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to
direct the use of the asset.

At lease commencement date, the Company recognizes a right-of-use asset and a lease liability on the balance
sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability,
any initial direct costs incurred by the Company, an estimate of any costs to dismantle and remove the asset at the
end of the lease (if any), and any lease payments made in advance of the lease commencement date (net of any
incentives received).

Subsequent measurement

The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to
the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Company also
assesses the right-of use asset for impairment when such indicators exist.

At lease commencement date, the Company measures the lease liability at the present value of the lease
payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or
the Company''s incremental borrowing rate. Lease payments included in the measurement of the lease liability are
made up of fixed payments (including in substance fixed payments) and variable payments based on an index or
rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest.
It is re-measured to reflect any reassessment or modification, or if there are changes in in-substance fixed
payments. When the lease liability is re measured, the corresponding adjustment is reflected in the right-of-use
asset.

The Company has elected to account for short-term leases and leases of low-value assets using the practical
expedients. Instead of recognizing a right-of-use asset and lease liability, the payments in relation to these are
recognized as an expense in statement of profit and loss on a straight-line basis over the lease term.

Where the Company is the lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are
classified as operating leases. Rental income from operating lease is recognized on a straight-line basis or another
systematic basis as per the terms of the relevant lease. Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the
same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from
the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the
Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a
constant periodic rate of return on the net investment outstanding in respect of the lease.

4B.10 MEASUREMENT OF FAIR VALUES

A number of the Company''s accounting policies and disclosures require the measurement of fair values, for both
financial and non-financial assets and liabilities.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a
liability is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in best of their economic interests. A fair value measurement of a non
financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in
its highest and best use or by selling it to another market participant that would use the asset in its highest and best
use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the input that is significant to the fair value
measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Inputs of lowest level that is significant to fair value measurement are observable for the asset or liability,
either directly or indirectly; and

• Level 3 — Inputs of lowest level that is significant to fair value measurement are unobservable for the asset or
liability. External valuers are involved for valuation of significant assets & liabilities. Involvement of external valuer
is decided by the management of the company considering the requirements of Ind AS and selection criteria
include market knowledge, reputation, independence and maintenance of professional standards.

Transfer of assets and liabilities (recognized on recurring basis), if occurs between the levels of hierarchy are
determined by re-assessing categorization (based on lowest level input that is significant for fair value
measurement as a whole) at the end of each reporting period.

The company determines policies and procedures for both recurring fair value measurement, such as derivative
instruments and unquoted financial assets measured at fair value and non-recurring measurement such as assets
held for distribution in discontinued operation.

4B.11 INVENTORIES

Inventories are valued at the lower of cost and net realizable value (NRV). Cost is measured by including, unless
specifically mentioned below, cost of purchase and other costs incurred in bringing the inventories to their present
location and condition. NRV is the estimated selling price in the ordinary course of business, less estimated costs
of completion and the estimated costs of sale.

4B.12 FINAN IAL INSTRUMENTS

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

Recognition and Initial Measurement:

All financial assets are initially recognized when the company becomes a party to the contractual provisions of the
instruments. A financial asset is initially measured at fair value plus, in the case of financial assets not recorded at
fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Financial assets are classified, at initial recognition as financial assets measured at fair value or financial assets at
amortized cost.

• Classification and Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classified in four categories:

• Measured at Amortized Cost;

• Measured at Fair Value Through Other Comprehensive Income (FVTOCI);

• Measured at Fair Value Through Profit or Loss (FVTPL); and

• Equity Instruments designated at Fair Value Through Other Comprehensive Income (FVTOCI).

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company
changes its business model for managing financial assets.

• Measured at Amortized Cost: A debt instrument is measured at the amortized cost if both the following conditions
are met :

• Business Model Test

• The asset is held within a business model whose objective is achieved by both
collecting contractual cash flows; and

• Cash Flow Characteristic Test.

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective
interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income
in the statement of profit or loss. The losses arising from impairment are recognised in the profit or loss. This
category generally applies to trade receivables, cash and bank balances, loans and other financial assets of the
company.

• Measured at FVTOCI: A debt instrument is measured at the FVTOCI if both the following conditions are met:

• Business Model Test:

• The objective of the business model is achieved by both collecting contractual cash flows and selling the financial
assets; and

• Cash Flow Characteristic Test:

• The asset''s contractual cash flows represent SPPI.

Debt instruments meeting these criteria are measured initially at fair value plus transaction costs. They are
subsequently measured at fair value with any gains or losses arising on re-measurement recognized in other
comprehensive income, except for impairment gains or losses and foreign exchange gains or losses. Interest
calculated using the effective interest method is recognized in the statement of profit and loss in investment
income.

• Measured at FVTPL: FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet
the criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. In addition, the company
may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the
statement of profit and loss. Equity instruments which are, held for trading are classified as at FVTPL.

• Equity Instruments designated at FVTOCI: For equity instruments, which has not been classified as FVTPL as
above, the company may make an irrevocable election to present in other comprehensive income subsequent
changes in the fair value. The company makes such election on an instrument-by-instrument basis. The
classification is made on initial recognition and is irrevocable. In case the company decides to classify an equity
instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the
OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment.

• Derecognition:

The Company derecognizes a financial asset on trade date only when the contractual rights to the cash flows
from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity.

• Impairment of Financial Assets:

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets
is impaired. Ind AS - 109 requires expected credit losses to be measured through a loss allowance. The
company recognizes impairment loss for trade receivables that do not constitute a financing transaction using
expected credit loss model, which involves use of a provision matrix constructed on the basis of historical
credit loss experience. For all other financial assets, expected credit losses are measured at an amount equal
to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit
risk on the financial asset has increased significantly since initial recognition.

4B.12.2 Financial Liabilities

• Recognition and Initial Measurement:

Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and
borrowings, payables or as derivatives, as appropriate. All financial liabilities are recognized initially at fair
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

• Subsequent Measurement:

Financial liabilities are measured subsequently at amortized cost or FVTPL. A financial liability is classified as
FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest
expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized
cost using the effective interest rate method. Interest expense and foreign exchange gains and losses are
recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

• Financial Guarantee Contracts:

Financial guarantee contracts issued by the company are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in
accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a
liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as
per impairment requirement of Ind AS 109 and the amount recognized less cumulative amortization.

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
4B.12.3 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or
realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on
future events and must be enforceable in the normal course of business and in the event of default, insolvency
or bankruptcy of the counterparty.

4B.12.4 Derivative financial instruments:

The Company deals in derivative financial instruments viz. foreign exchange forward contracts, to manage its
exposure to foreign exchange rate risks. The Company does not hold derivative financial instruments for
speculative purposes.

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are
subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is
recognised in profit or loss immediately.

4B.13 OPERATING SEGMENT

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision makers. The chief operating decision maker of the Company is responsible for allocating resources and
assessing performance of the operating segments and accordingly is identified as the chief operating decision
maker. The Company has identified two reportable segments i.e. Jute/Jute diversified products & Services & ''flax
products'' based on the information reviewed by the CODM.

4C. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES

Estimates and judgements are continually evaluated. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Company and that are believed to
be reasonable under the circumstances. Information about Significant judgements and Key sources of estimation
made in applying accounting policies that have the most significant effects on the amounts recognized in the
financial statements is included in the following notes:

• Recognition of Deferred Tax Assets:

The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the
Company''s future taxable income against which the deferred tax assets can be utilized. In addition, significant
judgement is required in assessing the impact of any legal or economic limits.

• Classification of Leases:

The Company enters into leasing arrangements for various assets. The classification of the I easing arrangement
as a finance lease or operating lease is based on an assessment of several factors, including, but not I imited to,
transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of

exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of
minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

• Defined Benefit Obligation (DBO):

Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and
withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends,
anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to
measure its obligations are appropriate. However, any changes in these assumptions may
have a material impact on the resulting calculations.

• Provisions and Contingencies:

The assessments undertaken in recognising provisions and contingencies have been made
in accordance with Indian Accounting Standards (Ind AS) 37, ''Provisions, Contingent Liabilities and Contingent
Assets''. The evaluation of the likelihood of the contingent events is applied best judgement by management
regarding the probability of exposure to potential loss.

• Impairment of Financial Assets:

The Company reviews its carrying value of investments carried at amortized cost or fair

value annually, or more frequently when there is indication of impairment. If recoverable amount is less than its

carrying amount, the impairment loss is accounted for.

• Allowances for Doubtful Debts:

The Company makes allowances for doubtful debts through appropriate estimations of
irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the
expectation is different from the original estimate, such difference will impact the carrying value of the trade and
other receivables and doubtful debts expenses in the period in which such estimate has been changed.

• Fair value measurement of financial Instruments:

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the Discounted Cash Flow model. The input to these models are taken from observable markets
where possible, but where this not feasible, a degree of judgement is required in establishing fair values.
Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

• Sales Return:

The Company accounts for sales returns accrual by recording an allowance for sales returns concurrent with
the recognition of revenue at the time of a product sale. This allowance is based on the Company''s estimate of
expected sales returns. The Company deals in various products and operates in various markets. Accordingly,
the estimate of sales returns is determined primarily by the Company''s historical experience in the markets in
which the Company operates.

(b) Fair value of Investment Property costing Rs 188.64 Lakhs in each 2 financial years under reference works out to Rs 6085 Lakhs
in terms of last valuation report which is subject to revaluation in each 5 years.

(c) Identification of Micro & Small enterprises within the meaning of MSMED Act 2006 have been made on the basis of disclosure
to the effect in invoices & challan by the vendor as mandated .No such vendors has been found to dealing in with the company so as
to make disclosures thereon.

30.1 Defined Benefit Plan:

The following are the types of defined benefit plans

30.1.1 Gratuity Plan

Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the
provisions of the Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are
measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.

30.1.2 Provident Fund

Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and
Miscellaneous Provisions Act, 1952.

30.1.8 Asset-Liability Matching Strategy

The company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that
has been developed to achieve long-term investments that are in line with the obligations under the employee benefit
plans. Within this frameowrk, the company''s ALM objective is to match assets to the obligations by investing in long-term
fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected
cash outflows arising from the employee benefit obligations. The company has not changed the processes used to manage
its risks from previous periods. The company uses derivatives to manage some of its risk. Investments are well diversified,
such that the failure of any single investment would not have a material impact on the overall level of assets.

30.1.10 The estimates of future salary increases/decreases, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.

30.1.11 Employee Benefit Expense also includes provident funds in the nature of defined benefit plans contribution amounting to
Rs. 4616.54 lakhs (previous year Rs. 1567.13 lakhs)

30.1.12 Sensitivity Analysis

The sensitivity analyses below have been determined based on a method that extrapolates the impact on defined benefit
obligation as a result of reasonable changes in key assumptions occuring at the end of the reporting period. Reasonably
possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant,
would have affected the defined benefit obligation by the amounts shown below:

34.2 The management assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, short term borrowings, and
other financial liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments.

34.3 For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to their fair values.

34.4 The fair value of the financial assets and financial liabilities is included at the amount at which the instruments could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.

34.5 The following methods and assumptions were used to estimate the fair values:

34.5.1 The fair values for loans, security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as
Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risks, which has been
assessed to be i nsignificant.

34.5.2 The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. They are classified as Level
3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risks, which was assessed as on the
balance sheet date to be insignificant.

35 Fair Value Hierarchy

The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a)
recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial
statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified
its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value
Measurement". An explanation of each level follows underneath the tables.

35.2 During the year ended March 31, 2025 and March 31, 2024, there were no transfers between Level 1 and Level 2 fair value measurements,
and no transfer into and out of Level 3 fair value measurements.

35.3 Explanation to the fair value hierarchy

The Company measures financial instruments, such as, quoted investments at fair value at each reporting date. Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

35.3.1 Level 1 Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded

bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in
the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

35.3.2 Level 2 The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter

derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
included in level 2.

35.3.3 Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the

case for unlisted equity securities, contingent consideration included in level 3.

36 Financial Risk Management

Financial management of the Company has been receiving attention of the top management of the Company. The management considers
finance as the lifeline of the business and therefore, financial management is carried out meticulously on the basis of detailed management
information systems and reports at periodical intervals extending from daily reports to long-term plans. Importance is laid on liquidity and
working capital management with a view to reduce over-dependence on borrowings and reduction in interest cost. Various kinds of financial
risks and their mitigation plans are as follows:

36.1 Credit Risk

The credit risk is the risk of financial loss arising from counter party failing to discharge an obligation. The credit risk is controlled by analysing
credit limits and credit worthiness of customers on continuous basis to whom the credit has been granted,obtaining necessary approvals for
credit and taking security deposits from trade channels.

Existing practice is to create allowances for doubtful debts on the basis of outstanding non-government dues for above three years subject to
due recognition of ongoing negotiation for realisation of dues in this regard without creation of provision in respect of parties reflexing on
silverline towards recoverability of old dues.Govenment dues are generally considered recoverable."

36.2 Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings up cash
forecast for short term and long term needs.

The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay
or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and
cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing
assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are
invested in certain mutual funds and fixed deposit which provide flexibility to liquidate. Besides, it generally has certain
undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

c The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting
agreements (if any). The interest payments on variable interest rate loans in the tables above reflect market forward interest
rates at the respective reporting dates and these amounts may change as market interest rates change. The future cash flows
on derivative instruments may be different from the amount in the above tables as exchange rates change. Except for these
financial liabilities, it is not expected that cash flows included in the maturity analysis could occur significantly earlier, or at
significantly different amounts. When the amount payable is not fixed, the amount disclosed has been determined with
reference to conditions existing at the reporting date.

36.3 Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three type of risks: Foreign Exchange Risk, Interest Rate Risk and Other Price Risk.

36.3.1 Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of movements in foreign exchange rates. The
Company imports various raw materials viz. chemicals, drugs, API, packing materials viz. granules, items of stores and spares
and capital goods as per its requirements from time to time and also borrows funds in foreign currencies. This results in foreign
currency risk to the Company. Similarly, company''s exports are also exposed to foreign currency risks.

For the Foreign Exchange exposures risk management, the Company''s Policy is to adopt a flexible approach in hedging its
risk. For this, the Company from time to time takes the view from banks and foreign exchange experts and based upon the
same and also considering macro-economic factors, forms a view and whenever deemed necessary, hedges its foreign
exchange risk. The hedging strategies are taken after careful study/ analysis of foreign exchange market to minimize to the
extent possible, any effect of the fluctuation in foreign exchange rates.

36.3.2 Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed
as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing
capability and view on future interest rate. Such interest rate risk is actively evaluated and is managed through portfolio
diversification and exercise of prepayment/refinancing options where considered necessary. The Company is also exposed to
interest rate risk on surplus funds parked in fixed deposits and lnvestments viz. mutual funds, bonds. To manage such risks,
such investments are done mainly for short durations, in line with the expected business requirements for such funds.

36.3.4 Capital Management

The Company objective to manage its capital is to ensure continuity of business while at the same time provide reasonable
returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is
reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic
Investments. Sourcing of capital is done through judicious combination of equity/internal accruals and borrowings, both short
term and long term. Net debt ( total borrowings less investments and cash and cash equivalents) to equity ratio is used to
monitor capital.

37 Impairment

The Company has not found any indication of impairment of the assets as per Ind AS 36 and accordingly no further exercise
for calculating impairment loss has been undertaken.

38 Particulars of disclosure under section 186(4) of the Companies Act,2013.The company has not made any investment or given
any loan or furnished any guarantee attracting provision of section 186(4) of the Companies Act,2013.

41 The company does not have any charge pending satisfaction with ROC beyond the statutory period.

42 The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

43 The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (inter
mediaries) 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."

44 The company has not received any fund to any other 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 to or on behalf of the Ultimate Beneficiaries."

45 The company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the in the tax assessments under Income Tax Act, 1961.

46 The company has not been declared as wilful defaulter by any bank or financial institution (asdefined under the Companies Act,
2013) or any other lender or consorium thereof, in accordance with the guidelines on wilful defaulters issued by RBI.

47 The company does not have any transaction during the year with the companies struck off under section 248 of Companies Act,
2013.

48 As per Rule 3(1) of Companies (Accounts) Rules, 2014 ( as amended), the company has used accounting software for maintaining
its books of accounts which, along with change log management, has a feature of recording audit trail (edit log) facility in terms
of laid down requirements, and the same has operated throughtout the financial year 2024-25 for all relevant transactions
recorded in the software.

49 The company''s investment in its subsidiary (named Champdany Constructions Limited) since intendead to be desposed of with
in 12 months, no consolidated financial statement is done.

50 Previous years figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2018

1. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Information about Significant judgments and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

- Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized. In addition, significant judgment is required in assessing the impact of any legal or economic limits.

- Classification of Leases: The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

- Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.

- Provisions and Contingencies: The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS] 37, ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events is applied best judgment by management regarding the probability of exposure to potential loss.

- Impairment of Financial Assets: The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.

- Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

- Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The input to these models are taken from observable markets where possible, but where this not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility.

- Sales Return: The Company accounts for sales returns accrual by recording an allowance for sales returns concurrent with the recognition of revenue at the time of a product sale. This allowance is based on the Company''s estimate of expected sales returns. The Company deals in various products and operates in various markets. Accordingly, the estimate of sales returns is determined primarily by the Company''s historical experience in the markets in which the Company operates.

Mr.SM Palia

Dr.G Goswami

Mr.N Das(Up to 21.09.2017)

Dr.B Sen(Up to 21.09.2017)

Mr.B Wadhwa Ms.Ramya Hariharan (O)Others (Entities under significant influence) AIC Properties LTD Landale & Clerk Ltd G Jerambhai Exports Ltd Gunny Dealers ltd Libra Exporters Ltd Libra Transport Ltd Macgregor & Balfour India Ltd.

Jessor Industries (India) Ltd.

Naffar Chandra Jute Mills Ltd.

Eastern Services ltd.

Baidyabati Industries Ltd.

West Bengal Multifibre Jute Park Ltd. Jerambhai Seva Trust V.B.Seva Trust

Circus Avenue Properties Pvt. Ltd.

Sibir India Ltd.(Up to 31.12.2017)

Amar Investments Ltd.(Up to 31.12.2017) Rishra Investments Ltd.(Up to 31.12.2017) Gojer Brothers Pvt. Ltd.

West Range Properties Pvt.Ltd.

Coopers Commodities Ltd.

9 Mandatory Exceptions

a Estimates

As per para 14 of Ind AS 101, an entity''s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity''s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per para 16 of the standard, where application ofInd AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition or at the end of the comparative period.

The Company''s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statement that were not required under the previous GAAP are listed below:

-Fair Valuation of financial instruments carried at FVTPL and/ or FVOCI.

-Impairment of financial assets based on the expected credit loss model.

-Determination of the discounted value for financial instruments carried at amortized cost.

9.1 Impact of Transition to Ind AS

The following is a summary of the effects of the differences between IND AS and Indian GAAP on the Company''s total equity shareholders'' funds and profit and loss for the financial periods previously reported under Indian GAAP following the date of transition to IND AS.

2. Notes to First Time Adoption

a Expected Credit Loss Model

Under Ind A She allowance for doubtful debts has been determined based on expected credit loss model. b Provision for Expected Sales Return

The Company has recognized provision for expected sales return on account of breakage and expiry of goods. The same has resulted in decrease in revenue and increase in provisions. c Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to different temporary differences. According to the accounting policies, the company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity. d Remeasurements of post-employment benefit obligations

Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. e Reclassification between Previous GAAP and Ind AS

i. Excise duty has been reclassified from revenue to other expenses.

ii. Trade discounts to customers has been reclassified from other expenses to revenue. f Retained Earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

H Categories of Financial Assets & Financial Liabilities

As at 31st March 2018 and 31st March 2017____

3. Joint Arrangement under IND AS-111

Operational Income in others Column includes Rs.1305.34 lacs (previous year - nil) being the consideration of transfer of right in inventories of landed property, forming part of current assets, placed under joint arrangement (within the meaning of clause 5(a) of IND AS-111) the company has entered into with a participant under contractual arrangement, to set-up jute diversified project including land development. Respective share therein being 40% and 60%.

Relevant arrangement being of the nature of joint operation as defined in clause 15 of IND AS-111, company''s interest in said arrangement is recognized in application of clause-20 in said standard. Inventories include Rs.43.73 lacs (previous year - nil) pertaining to beneficial right of the company therein.

4.Previ our GAA P figures have been reclassified/ regrouped to co infirm the presentation requirements under IND AS and the requirements laid down in Division II of the schedule III of the Companies Act 2013.

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Mar 31, 2016

2.2 2,683,045 equity shares has been alloted on 15.05.2013 and 2,204,786 equity shares has been alloted on 25.09.2012 to promoter group companies on preferential basis under SEBI (ICDR) Regulation 2009 with a locking period of 3 years. Equity Shares carry voting rights at the General Meeting of the Company and are entitled to dividend and to participate in surplus, if any, in the event of winding up. The Company has alloted 22,00,000 7% Cumulative Preference Shares of Rs 10 each on 25.09.2004. which are redeemable at par on or before the expiring of 20 years from the date of allotement has been redeemed during the year 2012-13. The company has alloted 12,414,353 non-convertible 2% Cumulative Preference Shares of Rs 5 each on 30.03.2010 which are redeemable at par on or before fifteen years from the date of allotment with a locking period of 3 years. Preference shareholders are entitled to get fixed rate of dividend in preference to the equity share but are not entitled to vote at General Meeting of the Company unless dividend has been in arrears for the prescribed minimum period.

*Loan from Bank of Baroda is secured by first paripassu charge on the entire fixed assets of the company, present and future and second paripassu charge on the entire current assets of the company, present and future and lien on fixed deposit of Rs 10 lacs. Loan is repayable in 20 quarterly installments by September 2019. Loan from Export Import Bank of India (Exim Bank) is secured by first paripassu charge on the entire fixed assets of the company, present and future excluding Anglo India Jute Mill (Middle Mill) and second paripassu charge on the entire current assets of the company, including receivable, present and future. Loan is repayable in 24 quarterly installments by July 2022.

* Secured by hypothecation on stocks of raw material, stock -in-process, stores, manufactured goods, book debts, bill, moveable plant & machinery and other current assets and also mortgage on second charge basis by deposit of title deeds by constructive delivery with Exim Bank, Exim Bank acting as agent of the consortium of banks, all documents of title evidences, deeds and writings in order to create a security on the Company’s immovable properties together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, and also by way of second charge on 100% shareholding of Champdany Constructions Ltd a wholly owned subsidiary of the company.

There are no dues to Micro and Small Enterprises, determined to the extent such parties have been identified on the basis of information available with the Company, as at March requires disclosures under the Micro, Small and Medium Enterprises Development Act, 2006.

1. During the year 2015-16 Fixed Assets of Rs. 44.76 lacs have been transferred to Stock-in-Trade in respect of certain Machineries belongs to Yarn Unit at Rishra and Konnagar Unit of the Company.

(ii) Dividend on Cumulative Preference Shares are in arrears since 30 March 2010, Rs.89.73 lacs (previous year Rs. 74.56 lacs) including Dividend Distribution Tax Rs. 15.18 lacs (previous year Rs. 12.42 lacs).

2. Revenue from operations comprises of Sale of Jute / Jute diversified Products & Services Rs.19,280.82 lacs (2014-15 - Rs. 24,468.76 lacs), Sale of Flax Products Rs.1,500.90 lacs (2014-15 - Rs. 2,215.64 lacs), Sale of Raw Jute Rs. 62.08 lacs (2014-15 -Rs. 2,867.75 lacs), Sale of Flax Fibre Rs. 178.05 lacs (2014-15 Rs. 173.48 lacs) and Sales Related Income Rs.755.41 lacs (2014-15- Rs.664.81 lacs).

3. Jute Carpets / Jute diversified Products & Services have been treated as belonging to the same class as Jute / Jute Diversified Products & Services.

4. Inventory comprises of Stock of Finished goods and in trade of Jute / jute diversified Products & Services (Packed/ unpacked) Opening Stock Rs.9,477.60 lacs (2014-15 - Rs. 9,822.77 lacs) Closing Stock Rs.9,102.07 lacs (2014-15 - Rs. 9,477.60 lacs).

Stock of Finished goods and in trade of Flax Products (Packed/ unpacked) Opening Stock Rs.726.64 lacs (2014-15 - Rs. 610.76 lacs) Closing Stock Rs. 1,201.26 lacs (2014-15 - Rs. 726.64 lacs).

5. Shalimar Units have been closed with due process of law. Operations at Konnagar and Choudwar units continued to be under suspension. The working at Weaving Unit at Rishra is under suspension of work since 23 May 2015. The working at Anglo-India Jute Mill (Middle Mill) at Jagatdal has been temporarily suspended from 26 May 2015 to 13 September 2015. The working at Yarn unit, Rishra has been temporarily suspended from 20 June 2015 to 28 August 2015, 26 September 2015 to 27 October 2015, 12 November 2015 to 19 November 2015, 22 December 2015 to 5 January 2016 and also from 21 March 2016 which is still continuing.

The working at Wellington Jute Mill, Rishra has been temporarily suspended from 26 March 2016 which is still continuing. Management is of the view that the sale proceeds of the Fixed Assets relating to the Choudwar, Konnagar and Shalimar Units would not be lower than the amount at they are carried in the books. The carrying values of assets of the cash generating units at Balance Sheet date are reviewed for impairment and management is of the view that there is no impairment exists. This has been relied upon by the Auditors’.

6. The Company’s application to the Competent Authority for exemption from the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 is pending approval.

7. The Company has maintained separate books of account for Wellington Jute Mills, Weaving and Yarn Units at Rishra, Middle Mill, Fine Yarn and Flax Units at Jagatdal and Weaving Unit at Konnagar, Beldanga, Shalimar and Kankinara Units at West Bengal and Libra Carpet Unit at Choudwar, Odisha.

8. As approved by way of special Resolution passed by shareholders on 14.03.2014 by way of Postal Ballot, the Company sold its Anglo-India Jute Mill (Middle Mill) located at Jagatdal, Dist. 24 Parganas (North), West Bengal w.e.f. 01.05.2016 to M/s P & A Distilleries Private Limited (subsequently name changed to Anglo-India Jute & Textile Industries Private Limited w.e.f. 14.05.2016).

9. Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for Anglo-India Jute Mill (Middle Mill) from 1997-98 to 2006-07 treated on cash basis and liability for the staid period is not ascertained, but from financial year 200708 provided on accrual basis. However, the said unit has been sold with effect from 1 May 2016 alongwith all its gratuity liability both past and future.

10. By an Order passed by the Hon’ble Division Bench of the High Court at Calcutta, six winding-up matters were relegated to Civil Suits for a claim of Rs.319 lacs of the erstwhile promoters of Anglo-India Jute Mills Co Ltd (now AI Champdany Industries Ltd), being the unsecured loan disputed by the Company. As per direction of the High Court, Calcutta, the Company has provided required securities to the satisfaction of the Registrar, Original Side, Calcutta High Court till the disposal of the suits.

Six suits were filed by the erstwhile promoters by their six respective companies. In the said suits a composite decree to the tune of Rs.2.77 crores is passed. Challenging the said decree six appeals are preferred by AI Champdany Industries Limited which are allowed and the cross appeal filed by respondents are dismissed, and the entire claim of the six unsecured creditors have been placed for trial. Written statements in six suits have been filed by the company as per order of the Hon’ble Division Bench of Calcutta High Court. Special Leave Petition (SLP) filed before the Hon’ble Supreme Court by six companies of erstwhile promoters of AIJM against the order passed by the Division Bench of the Hon’ble High Court at Calcutta. Hon’ble Supreme Court dismissed the SLP filed by six companies of erstwhile promoters of AIJM. After trial, the above suits (six in numbers) have been decreed in terms of the claims in the plaints depicted Rs.13 crores approximately. The said decrees are challenged in the Hon’ble Court of Appeal. In terms of the order passed by the Hon’ble Court of Appeal, the decrees passed in the said six suits have been stayed upon furnishing security, needless to say, the requisite securities have been furnished. The appeals are pending adjudication.

11. The Company has obtained possession of its flat at Woodland Syndicate as per the Order of the Court and the said flat has also been sold to a third party. The Company has filed an Application for final decree for mesne profits for wrongful occupation of the flat, before the Learned Civil Judge, Senior Division, 1st Court at Alipore,

12 Parganas (South), which is directed to attach with the suit proceeding. The decree passed in favour of the Company was challenged in the Hon’ble High Court and the same was dismissed on merits. Proceeding for realization of the manse profit is pending before the Ld Civil Judge (Sr. Division) 1st Court at Alipore.

13. Previous year’s figures have been rearranged / reclassified / regrouped wherever necessary and to make it in confirmatory with the amended Schedule III to the Companies Act, 2013.

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Mar 31, 2015

Rs. in lacs 1. Contingent liabilities in respect of: Year ended Year ended 31.03.15 31.03.14

(i) a) Bank Guarantees 740.47 1,978.44

b) Bank Guarantees issued on pledge of shares by other 432.54 432.54 companies

c) Claims for Commercial Taxes and Income Tax not 2057.63 693.10 acknowledged as debt and under appeal

d) Other claims not acknowledged as debt 733.44 485.93

e) Bills drawn on customers and discounted with banks and 318.36 649.98 advances against collection

(ii) Dividend on Cumulative Preference Shares are in arrears since 30 March 2010, Rs.74.56 lacs (previous year Rs. 58.18 lacs) including Dividend Distribution Tax Rs.12.42 lacs (previous year Rs. 8.45 lacs).

2. Revenue from operations comprises of Sale of Jute / Jute diversified Products & Services Rs24,468.76 lacs (2013-14 - Rs. 27,852.45 lacs), Sale of Flax Products Rs.2,215.64 lacs (2013-14 - Rs. 2,839.52 lacs), Sale of Raw Jute Rs. 2,867.75 lacs (2013-14 -Rs. 2,595.19 lacs), Sale of Flax Fibre Rs. 173.48 lacs (2013- 14 - Rs. 35.07 lacs) and Sales Related Income Rs.664.81 lacs (2013-14- Rs. 495.19 lacs).

3. Jute Carpets / Jute diversified Products & Services have been treated as belonging to the same class as Jute / Jute Diversified Products & Services.

4. Inventory comprises of Stock of Finished goods and in trade of Jute / jute diversified Products & Services (Packed/ unpacked) Opening Stock Rs.9,822.77 lacs (2013-14 - Rs. 8,493.80 lacs) Closing Stock Rs.9,477.60 lacs (2013-14 - Rs. 9,822.77 lacs).

Stock of Finished goods and in trade of Flax Products (Packed/ unpacked) Opening Stock Rs.610.76 lacs (2013-14 - Rs. 769.73 lacs) Closing Stock Rs. 726.64 lacs (2013-14 - Rs. 610.76 lacs).

5. Cost of materials consumed includes purchase of (i) Jute goods for Trading Rs..465.66 lacs (2013-14 - Rs. 753.16 lacs) and (ii) Raw materials for Trading Rs.3,037.14 lacs (2013-14 -Rs. 2,613.84 lacs).

6. Shalimar Units have been closed with due process of law. Operations at Yarn Unit at Konnagar continued to be under suspension. Working at Yarn Unit and Libra Carpet Unit at Choudwar have been suspended from 28 December 2005 and 1 May 2006 respectively. Weaving Unit at Konnagar is under suspension of work since 6 February 2014. The working at Weaving Unit at Rishra and Anglo-India Jute Mill (Middle Mill) at Jagatdal have been temporarily suspended from 23 May 2015 and 26 May 2015 respectively. Management is of the view that the sale proceeds of the Fixed Assets relating to the Choudwar, Konnagar and Shalimar Units would not be lower than the amount at they are carried in the books. The carrying values of assets of the cash generating units at Balance Sheet date are reviewed for impairment and management is of the view that there is no impairment exists. This has been relied upon by the Auditors''.

7. The Company''s application to the Competent Authority for exemption from the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 is pending approval.

8. The Company has maintained separate books of account for Wellington Jute Mills, Weaving and Yarn Units at Rishra, Middle Mill, Fine Yarn and Flax Units at Jagatdal and Yarn and Weaving Units at Konnagar, Beldanga, Shalimar and Kankinara Units at West Bengal and Libra Carpet and Yarn Units at Choudwar, Odisha.

9. The Company has received consent from shareholders on 14 March 2014 by way of postal ballot, for sale of one of the undertakings namely Anglo-India Jute Mill (Middle Mill) located at Jagatdal, District. 24 Parganas (North), West Bengal. The matter is under process.

10. Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for one unit of the company from 1997-98 to 2006- 07 treated on cash basis and liability for the said period is not ascertained, but from financial year 2007- 08 provided on accrual basis.

11. In respect of the fire occurred on 21 January 2011 at Wellington Jute Mill, Rishra, the adjustment has been made to the accounts to the extent of estimated loss of goods - 565 MT - Rs.388.36 lacs during the year.

12. By an Order passed by the Hon''ble Division Bench of the High Court at Calcutta, six winding-up matters were relegated to Civil Suits for a claim of Rs. 319 lacs of the erstwhile promoters of Anglo-India Jute Mills Co. Ltd. (now AI Champdany Industries Ltd.), being the unsecured loan disputed by the Company. As per direction of the High Court, Calcutta, the Company has provided required securities to the satisfaction of the Registrar, Original Side, Calcutta High Court till the disposal of the suits.

Six suits were filed by the erstwhile promoters by their six respective companies. In the said suits a composite decree to the tune of Rs. 2.77 crores is passed. Challenging the said decree six appeals are preferred by AI Champdany Industries Limited which are allowed and the cross appeal filed by respondents are dismissed, and the entire claim of the six unsecured creditors have been placed for trial. Written statements in six suits have been filed by the company as per order of the Hon''ble Division Bench of Calcutta High Court. Special Leave Petition (SLP) filed before the Hon''ble Supreme Court by six companies of erstwhile promoters of AIJM against the order passed by the Division Bench of the Hon''ble High Court at Calcutta. Hon''ble Supreme Court dismissed the SLP filed by six companies of erstwhile promoters of AIJM. The suits (six in nos) are pending adjudication and trial before the Hon''ble High Court at Calcutta.

13. The Company has obtained possession of its flat at Woodland Syndicate as per the Order of the Court and the said flat has also been sold to a third party. The Company has filed an Application for final decree for mesne profits for wrongful occupation of the flat, before the Learned Civil Judge, Senior Division, 1st Court at Alipore, 24 Parganas (South), which is directed to attach with the suit proceeding. The decree passed in favour of the Company was challenged in the Hon''ble High Court and the same was dismissed on merits. Proceeding for realization of the mesne profit is pending before the Ld Civil Judge (Sr. Division) 1st Court at Alipore.

14. Previous year''s figures have been rearranged / reclassified / regrouped wherever necessary and to make it in conformatory with the amended Schedule III to the Companies Act, 2013.

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Mar 31, 2014

Rs in lacs Year ended Year ended 31.03.14 31.03.13

1. Estimated amount of contract remaining to be executed on capital account not provided for 52.48 54.20

2.(i) Contingent liabilities in respect of :

a) Bank Guarantees 1,978.44 1,826.16

b) Bank Guarantees issued on pledge of shares by other companies 432.54 432.54

c) Claims for Commercial Taxes and Income Tax not acknowledged as debt and under appeal 693.10 476.15

d) Other claims not acknowledged as debt 485.93 373.45

e) Bills drawn on customers and discounted with banks and advances against collection 649.98 665.65

(ii) Dividend on Cumulative Preference Shares are in arrears since 30 March 2010, Rs.58.18 lacs (previous year Rs. 43.65 lacs) including Dividend Distribution Tax Rs.8.45 lacs (previous year Rs. 6.34 lacs).

3. The Company has allotted 2,683,045 nos of Equity Shares of face value of Rs. 5/- each on conversion of 2,683,045 nos of convertible share warrants at a price of Rs.20.50 (including premium of Rs.15.50 per warrant), 25% paid up during the previous year and 75% paid during the year with the right to convert each warrant into one fully paid up Equity share of face value of Rs.5/- not before 31.03.2013 and not later than 18 months from the date of allotment of convertible warrants i.e. within 25.03.2014. These shares on conversion of warrants were allotted to promoter group companies on 15.05.2013 on preferential basis under SEBI (ICDR) Regulation 2009, with a lock in period of 3 years.

4. Revenue from operations comprises of Sale of Jute / Jute diversified Products & Services Rs.27,852.45 lacs (2012-13 - Rs.32,117.64 lacs), Sale of Flax Products Rs. 2,839.52 lacs (2012-13 - Rs. 1,590.85 lacs), Sale of Raw Jute Rs. 2,595.19 lacs (2012-13 –Rs. 1131.32 lacs), Sale of Flax Fibre Rs.35.07 lacs (2012-13 - Rs.30.57 lacs) and Sales Related Income Rs.495.19 lacs (2012-13- Rs. 550.07 lacs).

5. Jute Carpets / Jute diversified Products & Services have been treated as belonging to the same class as Jute / Jute Diversified Products & Services.

6. Inventory comprises of Stock of Finished goods and in trade of Jute / jute diversified Products & Services (Packed/ unpacked) Opening Stock Rs.8,493.80 lacs (2012-13 - Rs. 7,643.46 lacs) Closing Stock Rs.9,822.77 lacs (2012-13 - Rs. 8,493.80 lacs).

Stock of Finished goods and in trade of Flax Products (Packed/ unpacked) Opening Stock Rs769.73 lacs (2012-13 - Rs. 1,016.80 lacs) Closing Stock Rs. 610.76 lacs (2012-13 – Rs. 769.73lacs). Shortage of 33 MT, valued Rs.211.29 lacs of flax yarn was found upon physical verification as on 31 March 2014 and such shortage has been adjusted during the year 2013-14.

7. Raw material consumed - i) Jute/Jute yarn Rs. 13,984.06 lacs (2012-13 - Rs. 14,509.07 lacs)

ii) Flax fibre, Rs. 1,489.65 lacs (2012-13 - Rs. 1,003.57 lacs).

8. Cost of materials consumed includes purchase of (i) Jute goods for Trading Rs.753.16 lacs (2012-13 - Rs. 2,523.56 lacs) and (ii) Raw materials for Trading Rs. 2,613.84 lacs (2012-13 -Rs. 1,171.42 lacs).

9. Segment Information :

The Company has considered two Business Segments viz; Jute/jute diversified Products & Services and Flax Products.

10. Related Party Disclosures :

(a) List of Related Parties and Relationships :

Party Relationship

a) Landale & Clark Limited Subsidiary-100%

b) Champdany Constructions Limited Subsidiary 100%

c) AIC Properties Limited Subsidiary 100%

d) Mr. Nirmal Pujara Key Management Personnel

11. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8 February 2011 and 21 February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act 1956 subject to fulfillment of conditions stipulated in the circular. The company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to subsidiary has been included in the consolidated financial statement.

12. Narayanpur and Shalimar Units have been closed with due process of law. Operations at Yarn Unit at Konnagar continued to be under suspension. Working at Yarn Unit and Libra Carpet Unit at Choudwar have been suspended from 28 December 2005 and 1 May 2006 respectively. Weaving Unit at Konnagor is under suspension of work since 6 February 2014. Management is of the view that the sale proceeds of the Fixed Assets relating to the Narayanpur, Choudwar, Konnagar and Shalimar Units would not be lower than the amount at they are carried in the books. The carrying values of assets of the cash generating units at Balance Sheet date are reviewed for impairment and management is of the view that there is no impairment exists. This has been relied upon by the Auditors''.

13. The Company''s application to the Competent Authority for exemption from the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 is pending approval.

14. The Company has maintained separate books of account for Wellington Jute Mills, Weaving and Yarn Units at Rishra, Middle Mill, Fine Yarn and Flax Units at Jagatdal and Yarn and Weaving Units at Konnagar, Beldanga, Narayanpur, Shalimar and Kankinara Units at West Bengal and Libra Carpet and Yarn Units at Choudwar, Odhisa.

15. As approved by the shareholders at the Annual General Meeting of the company held on 29 July 2008, the face value has been subdivided from one Equity Share of Rs.10/- each into two Equity shares of Rs.5/- each with effect from 19 September 2008.

16. In accordance with the policy consistently followed by the company, the outstanding commodity hedging contracts are accounted on the date of their settlement and realised gain / loss in respect of settled contracts are recognised in the Statement of Profit and Loss, along with the underlying transactions. However, the Company has not entered any hedging contracts as such there is no implication.

17. In respect of the fire occurred on 21 January 2011 at Wellington Jute Mill, Rishra, the final assessment to the damage caused to Assets is yet to be completed by the insurance authorities. Pending such assessments, no adjustment has been made to the accounts to the extent of estimated loss of goods – 565 MT - Rs.388.36 lacs.

The company has filed necessary claims with the insurance authorities and adjustments to the accounts would be effected on completion of assessment and settlement of related claims.

18. Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for one unit of the company from 1997-98 to 2006-07 treated on cash basis and liability for the said period is not ascertained, but from financial year 2007-08 provided on accrual basis.

19. The company has received the eligibility certificate from Sales Tax Authorities for the net value of fixed capital assets amounting to Rs.773 lacs and on gross addition to fixed assets amounting to Rs.616 lacs for the period from 1995-1996 to 1999-2000 and pending disposal of company''s appeal for additional eligibility on the basis of gross value of fixed capital assets, an amount of Rs.1,119.57 lacs has been availed by the company on this account upto April, 2000. Adjustment, if any, on this account being currently not ascertainable, shall be considered as and when it arises.

20. By an Order passed by the Hon''ble Division Bench of the High Court at Calcutta, six winding-up matters were relegated to Civil Suits for a claim of Rs.319 lacs of the erstwhile promoters of Anglo-India Jute Mills Co Ltd (now AI Champdany Industries Ltd), being the unsecured loan disputed by the Company. As per direction of the High Court, Calcutta, the Company has provided required securities to the satisfaction of the Registrar, Original Side, Calcutta High Court till the disposal of the suits.

Six suits were filed by the erstwhile promoters by their six respective companies. In the said suits a composite decree to the tune of Rs.2.77 crores is passed. Challenging the said decree six appeals are preferred by AI Champdany Industries Limited which are allowed and the cross appeal filed by respondents are dismissed, and the entire claim of the six unsecured creditors have been placed for trial. Written statements in six suits have been filed by the company as per order of the Hon''ble Division Bench of Calcutta High Court. Special Leave Petition (SLP) filed before the Hon''ble Supreme Court by six companies of erstwhile promoters of AIJM against the order passed by the Division Bench of the Hon''ble High Court at Calcutta. Hon''ble Supreme Court dismissed the SLP filed by six companies of erstwhile promoters of AIJM. The suits (six in nos) are pending adjudication and trial before the Hon''ble High Court at Calcutta.

21. The Company has obtained possession of its flat at Woodland Syndicate as per the Order of the Court. The Company has filed an Application for final decree for mesne profits for wrongful occupation of the flat, before the Learned Civil Judge, Senior Division, 1st Court at Alipore, 24 Parganas (South), which is directed to attach with the suit proceeding. The decree passed in favour of the Company was challenged in the Hon''ble High Court and the same was dismissed on merits.

22. The Company has received consent from shareholders on 14 March 2014 by way of postal ballot, for sale of one of the undertakings namely Anglo-India Jute Mill (Middle Mill) located at Jagatdal, District. 24 Parganas (North), West Bengal. The matter is under process.

23. Previous year''s figures have been rearranged / reclassified / regrouped wherever necessary and to make it in conformatory with the amended Schedule VI to the Companies Act, 1956.

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Mar 31, 2013

1. I) Contingent liabilities in respect of:

a) Bank Guarantees 1826.16 1915.95

b) Bank Guarantees issued on pledged of shares by other companies 432.54 432.54

c) Claims for Commercial Taxes and Income Tax not acknowledged as 476.15 522.58 debt and under appeal

d) Other claims not acknowledged as debt 373.45 396.21

e) Bills drawn on customers and discounted with banks and advances 665.65 502.98 against collection

II) Arrears of Cumulative Preference Shares Dividend Rs.43.65 lacs (previous year Rs.82.63 lacs) including Dividend Distribution Tax Rs. 6.34 lacs (previous year Rs. 11.53 lacs).

2. The Company has issued 2204786 nos of Equity Shares of face value of Rs. 5/- each at a price of Rs. 20.50 (including premium of Rs. 15.50) per share and 2683045 nos of convertible share warrants at a price of Rs. 20.50 (including premium of Rs. 15.50) per warrant, 25% paid up during the year with the right to convert each warrants into one fully paid up Equity share of face value of Rs. 5/- not before 31.03.2013 and not later than 18 months from the date of allotment of convertible warrants i.e. within 25.03.2014.These shares and warrants were allotted to promoter group companies on preferential basis issued under SEBI (ICDR) Regulation 2009, with a lock in period of 3 years.

3. Sale of Jute / Jute diversified Products & Services Rs.32,117.64 lacs (2011-12 - Rs.34,907.20 lacs), Sale of Flax Products Rs.1,590.85 lacs (2011-12 - Rs.1,576.93 lacs), Sale of Raw Jute Rs.1,131.32 lacs (2011-12 –Rs.1,146.06 lacs), Sale of Flax Fibre Rs. 30.57 lacs (2011-12 - Rs. 36.15 lacs) and Sales Related Income Rs.550.07 lacs (2011-12- Rs.1641.50 lacs).

4. Jute Carpets / Jute diversified Products & Services have been treated as belonging to the same class as Jute / Jute Diversified Products & Services.

5. Stock of Finished goods and in trade of Jute / jute diversified Products & Services (Packed/ unpacked) Opening Stock Rs. 7,634.45 lacs (2011-12 - Rs.7,763.78 lacs) Closing Stock Rs. 8,493.79 lacs (2011-12 - Rs. 7,634.45 lacs).

Stock of Finished goods and in trade of Flax Products (Packed/ unpacked) Opening Stock Rs. 1,016.80 lacs (2011-12 - Rs. 1,244.49 lacs) Closing Stock Rs.769.73 lacs (2011-12 –, Rs.1,016.80 lacs). Shortage of 45 MT, Rs.128.13 lacs of Flax Yarn was found upon physical verification of stock as on 31.03.2013 and the matter is under investigation and such shortage has been adjusted.

6. Raw material consumed - i) Jute/Jute yarn Rs.14509.07 lacs (2011-12 - Rs.13,309.07 lacs)

ii) Flax fibre Rs. 1003.57 lacs (2011-12 - Rs. 793.64 lacs).

7. Cost of materials consumed includes purchase of (i) Jute goods Rs. 2523.56 lacs (2011-12 - Rs.8475.10 lacs) and (ii) Raw materials for Trading Rs,1171.42 lacs (2011-12 - Rs. 1145.59 lacs).

8. Segment Information:

The Company has considered two Business Segments viz; Jute/jute diversified Products & Services and Flax Products.

9. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8 February

2011 and 21 February 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act 1956 subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to subsidiary has been included in the consolidated financial statement.

10. Narayanpur and Shalimar Units have been closed with due process of law. Working at Yarn Unit and Libra Carpet Unit at Choudwar have been suspended from 28 December 2005 and 1 May 2006 respectively. Flax Unit at Jagatdal was under suspension of work from 2 January 2012 to 16 August 2012. Management is of the view that the sale proceeds of the Fixed Assets relating to the Narayanpur, Choudwar and Shalimar Units would not be lower than the amount at they are carried in the books. The carrying values of assets of the cash generating units at Balance Sheet date are reviewed for impairment and management is of the view that there is no impairment exists. This has been relied upon by the Auditors''.

11. The Company''s application to the Competent Authority for exemption from the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 is pending for approval.

12. As approved by the shareholders at the Annual General Meeting of the company held on 29 July 2008, the face value has been subdivided from one Equity Share of Rs.10/- each into two Equity shares of Rs.5/- each with effect from 19 September 2008.

13. Commodity Hedging Transactions:

In accordance with the policy consistently followed by the company, the outstanding commodity hedging contracts are accounted on the date of their settlement and realised gain / loss in respect of settled contracts are recognised in the Statement of Profit and Loss , along with the underlying transactions.

14. In respect of the fire occurred on 22 April 2006 and 21 January 2011 at Wellington Jute Mill, Rishra, the final assessment to the damage caused to Assets is yet to be completed by the insurance authorities. Pending such assessments, no adjustment has been made to the accounts to the extent of estimated loss of goods – 1059 MT - Rs. 770.70 lacs (2011-12 - 1059 MT - Rs. 770.70 lacs).

The company has filed necessary claims with the insurance authorities and adjustments to the accounts would be effected on completion of assessment and settlement of related claims.

15. Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for one unit of the company from 1997-98 to 2006-07 treated on cash basis and liability for the said period is not ascertained, but from financial year 2007-08 provided on accrual basis.

16. a) The company has received the eligibility certificate from Sales Tax Authorities for the net value of fixed capital assets amounting to Rs.773 lacs and on gross addition to fixed assets amounting to Rs.616 lacs for the period from 1995-1996 to 1999-2000 and pending disposal of company''s appeal for additional eligibility on the basis of gross value of fixed capital assets, an amount of Rs.1,119.57 lacs has been availed by the company on this account upto April, 2000. Adjustment, if any, on this account being currently not ascertainable, shall be considered as and when it arises.

b) Other loans and advances - considered good includes Rs.26.93 lacs where although recoveries are not forthcoming but no provision has been made in the Accounts as the management considers these amounts are recoverable.

17. By an Order passed by the Hon''ble Division Bench of the High Court at Calcutta, six winding-up matters were relegated to Civil Suits for a claim of Rs.319 lacs of the erstwhile promoters of Anglo-India Jute Mills Co Ltd (now AI Champdany Industries Ltd), being the unsecured loan disputed by the Company. As per direction of the High Court, Calcutta, the Company has provided required securities to the satisfaction of the Registrar, Original Side, Calcutta High Court till the disposal of the suits.

Six suits were filed by the erstwhile promoters by their six respective companies. In the said suits a composite decree to the tune of Rs.2.77 crores is passed. Challenging the said decree six appeals are preferred by AI Champdany Industries Limited which are allowed and the cross appeal filed by respondents are dismissed, and the entire claim of the six unsecured creditors have been placed for trial. Written statements in six suits have been filed by the company as per order of the Hon''ble Division Bench of Calcutta High Court. Special Leave Petition (SLP) filed before the Hon''ble Supreme Court by six companies of erstwhile promoters of AIJM against the order passed by the Division Bench of the Hon''ble High Court at Calcutta. Hon''ble Supreme Court dismissed the SLP filed by six companies of erstwhile promoters of AIJM. The suits (six in nos) pending before the Hon''ble High Court at Calcutta for deciding the claim.

18. The Company has obtained possession of its flat at Woodland Syndicate as per the Order of the Court. The Company has filed an Application for final decree for mesne profits for wrongful occupation of the flat, before the Learned Civil Judge, Senior Division, 1st Court at Alipore, 24 Parganas (South), which is pending.

19. During the year 2012-13 Fixed Assets of Rs. 13.86 lacs has been transferred to stock-in-trade in respect of 4.44 acres of land and structure thereon at Beldanga and a flat at Woodland Syndicate.

20. The Company has maintained separate books of account for each of its 100% Export Oriented Weaving Unit at Rishra (de-bonded w e f 25 May 2012), Narayanpur (de-bonded w e f 7 December 2011) and for the Wellington Jute Mills and Yarn Unit at Rishra, Middle Mill, Fine Yarn and Flax Unit at Jagatdal and for the other units at, Konnagar (Weaving), Beldanga, Shalimar, Kankinara at West Bengal and Libra Carpet unit and Yarn unit at Choudwar, Orissa.

21. Previous year''s figures have been rearranged / reclassified / regrouped wherever necessary and to make it in conformatory with the amended Schedule VI to the Companies Act, 1956.

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Mar 31, 2012

1. (Note No.23 of Accounts)

Estimated amount of contract remaining to be executed on capital account not provided for Rs. 193.20 lacs (Previous year Rs. 190.88 lacs).

2. (Note No.24 of Accounts)

(i) Contingent liabilities Rs. 3770.26 lacs (Previous year Rs. 4149.40 lacs).

(ii) Arrears of Cumulative Preference Shares Dividend Rs. 82.63 lacs (previous year Rs.50.38 lacs) including Dividend Distribution Tax Rs. 11.53 lacs (previous year Rs. 7.02 lacs).

3. (Note No.26 of Accounts)

Sale of Jute/Jute diversified Products -59,656 MT, Rs. 34,907.20 lacs (2010-11-52,898 MT, Rs. 30,941.54 lacs), Sale of Flax Products-409 MT, Rs. 1,576.93 lacs (2010-11-718 MT, Rs. 2,319.82 lacs), Sale of Raw Jute-4,504 MT, Rs. 1,146.06- lacs (2010-11-2,027 MT, Rs. 662.14 lacs) and Sale of Flax Fibre-42 MT, Rs. 36.15 lacs (2010-11-31 MT, Rs. 18.01 lacs).

hedging contracts are accounted on the date of their settlement and realised gain/loss in respect of settled contracts are recognised in the Profit and Loss Account, along with the underlying transactions.

4. (Note No.46 of Accounts)

In respect of the fire occurred on 22nd April 2006 and 21st January 2011 at Wellington Jute Mill, Rishra, the final assessment to the damage caused to Assets is yet to be completed by the insurance authorities. Pending such assessments, no adjustment has been made to the accounts to the extent of estimated loss of goods - 1059 MT - Rs. 770.70 lacs (2010-11 - 1059 MT - Rs. 770.70 lacs).

The company has filed necessary claims with the insurance authorities and adjustments to the accounts would be effected on completion of assessment and settlement of related claims.

5. (Note No-47 of Accounts)

Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for one unit of the company from 1997-98 to 2006-07 treated on cash basis and liability for the said period is not ascertained, but from financial year 2007-08 provided on accrual basis.

6. (Note No.48 (a) of Accounts)

The company has received the eligibility certificate from Sales Tax Authorities for the net value of fixed capital assets amounting to Rs. 773 lacs and on gross addition to fixed assets amounting to Rs. 616 lacs for the period from 1995-1996 to 1999-2000 and pending disposal of company's appeal for additional eligibility on the basis of gross value of fixed capital assets, an amount of Rs. 1,119.57 lacs has been availed by the company on this account upto April, 2000. Adjustment, if any, on this account being currently not ascertainable, shall be considered as and when it arises.

7. (Note No.48 (b) of Accounts)

Advances recoverable in cash or kind or value to be' received - considered good includes Rs. 26.93 lacs where although recoveries are not forthcoming but no provision has been made in the Accounts as the management considers these amounts are recoverable.

8. (Note No.53 of Accounts)

As per gratuity actuarial valuation certificate, the "Contribution to Provident Funds and other Funds" for the year 2011-12 is after adjustment of Rs. Nil (2010-11 - Rs. 703.21 lacs) relating to earlier years.

9. Previous year's figures have been rearranged/reclassified/regrouped wherever necessary and to make it in conformatory with the amended Schedule VI to the Companies Act, 1956.

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Mar 31, 2010

1. Contingent liabilities in respect of: Rs. in lacs

Year ended Year ended

31.03.10 31.03.09

a) Bank Guarantees: 1798.05 3111.09

b) Bank Guarantees issued on pledged of shares by other companies 432.54 432.54

c) Claims for Income Tax, Wealth Tax, Commercial Taxes not acknowledged as debt and under appeal 889.29 1019.07

d) Other claims not acknowledged as debt 349.99 344.45

e) Bills drawn on customers and discounted with banks

and advances against collection 311.86 523.31

2. Sale of Jute / Jute diversified Products - 47,790 MT, Rs.22,562.36 lacs (2008-09 - 72,796 MT, Rs.28,596.21 lacs), Sale of Flax Products - 425 MT, Rs.1,073.68 lacs (2008-09 - 454 MT, Rs.1,291.21 lacs), Sale of Raw Jute - 3,327 MT, Rs.809.21 lacs (2008-09 - 5,402 MT, Rs. 797.17 lacs) and Sale of Flax Fibre - Nil MT, Rs. Nil (2008-09 - 20 MT, Rs.12.55 lacs).

3. Jute Carpets / Jute diversified Products have been treated as belonging to the same class as Jute / Jute Diversified Products and accordingly, information relating to Turnover, Capacities and Production of Jute Carpets / Jute diversified Products have been included in note 4 and 5 respectively.

4. Stock of Finished goods of Jute / jute diversified Products (Packed/ unpacked) Opening Stock - 11,212 MT, Rs. 5,019.91 lacs (2008-09 - 15,828 MT, Rs. 5,672.80 lacs) Closing Stock - 10,615 MT, Rs.5,364.32 lacs (2008-09 – 11,212 MT, Rs. 5,019.91 lacs).

Stock of Finished goods of Flax Products (Packed/ unpacked) Opening Stock - 598 MT, Rs. 1,572.04 lacs (2008 09 - 534 MT, Rs. 1,147.64 lacs) Closing Stock - 589 MT, Rs.1,921.21 lacs (2008-09 - 598 MT, Rs. 1,572.04 lacs).

5. Raw material consumed - Jute/Jute yarn - 48,227 MT, Rs.11,218.92 lacs (2008-09 - 62,953 MT, Rs. 10,458.57 lacs)

Flax Fibre - 634 MT, Rs. 717.48 lacs (2008-09 - 665 MT, Rs. 1,079.48 lacs)

6. Purchase of goods includes purchase of jute goods - 2023 MT, Rs.837.07 lacs (2008-09 – 12,020 MT, Rs. 3,378.07 lacs).

7. 100% EOU Narayanpur and Shalimar Units have been closed with due process of law. Operations at 100% EOU Yarn Unit at Konnagar, continued to be under suspension. Working at Yarn Unit and Libra Carpet Unit at Choudwar have been suspended from 28th December 2005 and 1st May 2006 respectively. 100% EOU yarn Unit at Rishra (debonded with effect from 17th December 2009) and Weaving Unit at Rishra were under suspension of work from 30th August 2009 to 8th December 2009 and 6th September 2009 to 11th December 2009 respectively due to labour unrest. There was an industry wide strike from 14th December 2009 to 12th February 2010. Management is of the view that the sale proceeds of the Fixed Assets relating to the Narayanpur, Choudwar and Shalimar Units would not be lower than the amount at they are carried in the books. The carrying values of assets of the cash generating units at Balance Sheet date are reviewed for impairment and management is of the view that there is no impairment exists. This has been relied upon by the Auditors.

8. The Company-s application to the Competent Authority for exemption from the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 is pending approval.

9. As approved by the shareholders at the Annual General Meeting of the company held on 29th July 2008, the face value has been subdivided from one Equity Share of Rs.10/- each into two Equity shares of Rs.5/- each with effect from 19th September 2008.

10. Commodity Hedging Transactions:

In accordance with the policy consistently followed by the company, the outstanding commodity hedging contracts are accounted on the date of their settlement and realised gain / loss in respect of settled contracts are recognised in the Profit and Loss Account, along with the underlying transactions.

11. In respect of the fire occurred on 22nd April 2006 at Wellington Jute Mill, Rishra, the final assessment to the damage caused to Assets is yet to be completed by the insurance authorities. Pending such assessments, no adjustment has been made to the accounts.

The company has filed necessary claim with the insurance authorities and adjustments to the accounts would be effected on completion of assessment and settlement of related claim.

12. Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year. Accordingly, gratuity are accounted for in the books of accounts on accrual basis based on actuarial valuation except for gratuity for one unit of the company from 1997-98 to 2006-07 treated on cash basis and liability for the said period is not ascertained, but from financial year 2007-08 provided on accrual basis.

13. (a) The company has received the eligibility certificate from Sales Tax Authorities for the net value of fixed capital assets amounting to Rs.773 lakhs and on gross addition to fixed assets amounting to Rs.616 lakhs for the period from 1995-1996 to 1999-2000 and pending disposal of company-s appeal for additional eligibility on the basis of gross value of fixed capital assets, an amount of Rs.1,119.57 lakhs has been availed by the company on this account upto April, 2000. Adjustment, if any, on this account being currently not ascertainable, shall be considered as and when it arises.

(b) Advances recoverable in cash or kind or value to be received - considered good includes Rs.26.93 lacs where although recoveries are not forthcoming but no provision has been made in the Accounts as the management considers these amounts are recoverable.

(c) In the opinion of the management, no diminution of permanent nature in the year-end carrying value of investment with Landale & Clark Limited is likely to arise and accordingly no provision is considered necessary.

14. By an Order passed by the Hon-ble Division Bench of the High Court at Calcutta, six winding-up matters were relegated to Civil Suits for a claim of Rs.319 lacs of the erstwhile promoters of Anglo-India Jute Mills Co Ltd (now AI Champdany Industries Ltd), being the unsecured loan disputed by the Company. As per direction of the High Court, Calcutta, the Company has provided required securities to the satisfaction of the Registrar, Original Side, Calcutta High Court till the disposal of the suits.

15. The Company obtained an order passed by the Learned 1st Civil Judge, Senior Division at Alipore, directing Bailiff for handing over the vacant possession of the Companys flat at Woodland Syndicate, to the Company on the score of non-compliance of the order passed by the Honble High Court wherein the decree passed by the Trial Court is under challenge. The process of handing over is still pending owing to resistance (forcefully) by the Judgement-Debtors and/or their men and agents. Company duly filed a miscellaneous proceeding for police help. The exact amount of claim on account of mesne-profit that will be ultimately received in respect of the wrongful occupation of the flat is not ascertainable at this stage and accordingly nothing has been ac- counted for as income in these accounts in respect of the aforesaid claim. Such claim will be accounted for as and when such amount is received by the company.

16. (a) According to Calcutta High Court Order of February, 1987 as modified in February 1988 in connection with pending litigation initiated by Goodricke Group Ltd. against Cosmopolitan Investments Ltd. and others including the company, the company is refrained from transferring the Fixed Assets (except dealing with the said Fixed Assets by creating charges and / or mortgages in favour of Financial Institutions / Nationalized Banks) till disposal of related applications except with the leave of Court. Accordingly, the deed of Conveyance pertaining to the relevant lower Mill‘s assets transferred in October 1986 pursuant to an agreement of sale dated 17th September 1986 is yet to be executed. This matter is sub-judice before the High Court of Calcutta.

(b) Liability for Sales Tax and Raw Jute Tax dues pertaining to the period upto 4th February, 1994 (date of sanction of the Rehabilitation Scheme by BIFR) as finally confirmed in terms of BIFR Order dated 20th July, 1995, was Rs.466 lacs which has been paid by the company as per the Scheme sanctioned by BIFR and agreed by Sales Tax authorities.

17. The Company has maintained separate books of account for each of its 100% Export Oriented units at Rishra(debonded on 17th. December, 2009), Narayanpur and Konnagar (Yarn) and for the Wellington Jute Mills at Rishra, Middle Mill, Fine Yarn and Flax Unit at Jagatdal and for the other units at, Konnagar (Weaving), Beldanga, Shalimar, Kankinara at West Bengal and Libra Carpet unit and Yarn Unit at Choudwar, Orissa.

18. The name of the company had been changed with the consent of the Central Government, from Anglo India Jute Mills Company Limited to AI Champdany Industries Limited with effect from 19th May, 2005.