Notes to Accounts of Bafna Spinning Mill & Exports Ltd.

Mar 31, 2012

Authorised Share Capital - 4,20,00,000 equity shares ofRs. 5/- each fully paid Issued, Subscribed & Paid up Capital- 3,89,04,400 equity shares ofRs. 5/- each fully paid Company has sub divided equity shares such that each existing Equity Shares in the Authorized Share Capital of the face value ofRs. 5/-(Rupees Five) each of the Company be and is hereby sub-divided into 5(five) equity shares of the face value ofRs.l/- (Rupees One) each

1.1 The Company has only one class of equity shares at par value ofRs. 5/- per share. Each holder of Equity shares is en titles to one vote per share

1. Estimated value of Contract outstanding on Capital accounts Rs. NIL

2. Expenditure incurred relating to Public Issue is amortized over a period of 10 years.

3. Preliminary expenses shown in Balance sheet under miscellaneous Expenditure will be amortized from the year the Company commences commercial activity/ production.

4. In the opinion of the Board Current Assets, Loans and Advances will fetch the amount stated, if realized in the ordinary course of business

5. Preoperative Expenditure pending Capitalization will be allocated on completion of project.

6. Previous Year Figures have been regrouped or rearrange wherever necessary.

(1) Balances of Sundry Creditors, Sundry Debtors, Advances, Deposits, Secured and Unsecured Loans are as per the book and subject to confirmation and reconciliation from respective parties.

(2) In the opinion of the Board of Directors Current Assets, Loans and Advances are approximately of the same value if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

(3) There are no amounts due to be credited to Investor Education and Protection Fund.

(4) Earning in Foreign Exchange at F.O.B. Value: Rs. Nil (Rs. Nil].

(5) Expenses in Foreign Currency at CIF Value: Rs. Nil (Rs. Nil].

(6) Value of Imports on CIF basis accounted for during the year: Rs. Nil (Rs. Nil).

(7) Security Deposit made with Coimbatore Stock Exchange at the time of Public Issue, is still with the Coimbatore Stock Exchange. .

(8) Fixed Deposits made with Bank of Madura as lien for the Letter of Credit in favour of Import of Machinery for which no interest accrued is accounted for.

As per attached report on even date

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Mar 31, 2011

1. Estimated value of Contract outstanding on Capital accounts Ks. Nil,

2. Expenditure incurred relating to Public Issue is amortized over a period of 10 years.

3. Advance recoverable in cash or kind includes advance in the nature of loan which are without any stipulation regarding the interest and for which confirmations are not obtained. In the absence of stipulation as to interest no portions of the interest has been considered as accrued.

4. Statistical Information

5. The purchase consideration for the Land and Building at Coimbatore was paid to the Managing Director and the assets are yet to be transferred in the name of the Company. / ,

6. In the opinion of the Board Current Assets, Loans and Advances will fetch the amount stated, if realised in the ordinary course of business.

7. Previous Year Figures have been regrouped or rear range wherever necessary.

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Mar 31, 2010

1 Security Deposit made with Coimbatore Stock Exchange at the time of Public Issue, is still with the Coimbatore Stock Exchange.

2. Fixed Deposits made with Bank of Madura as lien for the Letter of Credit in favor of Import of Machinery for which no interest accrued is accounted for.