Notes to Accounts of Binayak Tex Processors Ltd.

Mar 31, 2024

Terms/ Rights Attached to Equity Shares:

a) The company has only one class of equity shares having par value of'' 10/- Each holder of equity shares is entitled to one vote per

b) In the event of liquidation ofthe company, the holders of the equity shares will be entitled to receive remaining assets ofthe

a) Term Loan

Plot No. A-150 MIDC Phase-1 Dombivali Industrial area off Kalyan Shilphata Road, Dombivali (E) Thane-421203. Admeasuring 1125 sqmt owned by the subject Company.

Plot No. A-151 MIDC Phase-1 Dombivali Industrial area off Kalyan Shilphata Road, Dombivali (E) Thane-421203. Admeasuring 1125 sqmt owned by the subject Company.

Proposed Plant and Machinery Proposed Building at Plot No. A-150 & 151

EM of Plot No. B -35 MIDC Phase-I Dombivali East, Near Alchem Lab Taluka Kalyan, Thane-421203. EM of office premises bearing No.17, 5th floor, 384-M, Bhuleshwar division, Dabholkarwadi, opp. Narottam Wadi & Bharat Merchant Chamber, Kalbadevi Road, Mumbai-400002 in the name of Mr.

Plot No. A -149 MIDC Phase-1Dombivali Industrial area off Kalyan Shilphata Road, Dombivali (E) Thane-421203. Admeasuring 1242SQMTRSand RCC Building 1232 SQMTRS owned by the Company.

Hyp. of P&M at Plaot No. B-35 & 36, Dombivali MIDC Industrial area Ajde. Golavali Kalyan, Thane-421203

Lien on FDs (31790302044432, 317903032046378, 317903032046380 &317903032046386) kept in lieu of waiver of ECGC

Plot No. A-150 MIDC Phase-1 Dombivali Industrial area off Kalyan Shilphata Road, Dombivali (E) Thane-421203. Admeasuring 1125 sqmt owned by the subject Company.

Plot No. A-151 MIDC Phase-1 Dombivali Industrial area off Kalyan Shilphata Road, Dombivali (E) Thane-421203. Admeasuring 1125 sqmt owned by the subject Company.

Proposed Plant and Machinery Proposed Building at Plot No. A-150 & 151

EM of Plot No. B -35 MIDC Phase-I Dombivali East, Near Alchem Lab Taluka Kalyan, Thane-421203. EM of office premises bearing No.17, 5th floor, 384-M, Bhuleshwar division, Dabholkarwadi, opp. Narottam Wadi & Bharat Merchant Chamber, Kalbadevi Road, Mumbai-400002 in the name of Mr.

Plot No. A -149 MIDC Phase-1Dombivali Industrial area off Kalyan Shilphata Road, Dombivali (E) Thane-421203. Admeasuring 1242SQMTRSand RCC Building 1232 SQMTRS owned by the Company.

Hyp. of P&M at Plaot No. B-35 & 36, Dombivali MIDC Industrial area Ajde. Golavali Kalyan, Thane-421203

Lien on FDs (31790302044432, 317903032046378, 317903032046380 &317903032046386) kept in lieu of waiver of ECGC

Personal Guarantee

1. PRADIP KUMAR PACHERIWALA 2.HEERADEVI PACHERIWALA 3. VISHAL PACHERIWALA CORPORATE GUARANTEE : M/S. JIMTEX PVT LTD

Expenditure in Foreign Currency: Rs. in lakhs

- Foreign Traveling Expenses Rs. 6.76 (Previous Year Rs. 2.54)

- Foreign Brokerage Paid Rs. Nil (Previous Year Rs. Nil)

- Earning in foreign Currency (Export/F.O.B.) Rs.8391.76 (P. Y. Rs. 9598.13)

- Raw Material Purchases in foreign Currency Rs.154.89 (P. Y. Rs 182.92)

- Machinery/ (WIP) Purchases in foreign Currency Rs. 1545.90 (P. Y. Rs 235.43)

NOTE : 31

The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with IND AS- 19

NOTE : 32

Consequent to issue of Indian Accounting standard 12 “Income taxes” by ‘The Institute of Chartered Accountant of India”, the Company recorded the deferred Tax Liabilities on account of timing difference & deferred tax charge for the year is Rs 153.02/- ( in Lakhs ) /- (P.Y. Rs. 104.14/- ) which has been credited / debited to Statement of Profit & Loss.

Operating Segments

The Company''s sole business segment is manufacturing / processing of textile fabrics and all activities are incidental to this sole business segment. Given this fact and the Company Services its domestic and export markets from India only, the financial statements reflect the information required by Indian Accounting standard - 108 for the sole business segment of Manufacturing / Processing of textile fabrics. The whole of the business assets are situated in India.

NOTE : 36

Company has given unsecured loan of Rs. 910.04 Lakhs of companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 910.04 Lakhs.

NOTE:37

Company has received notice for outstanding Local Body Tax (LBT) from Kalyan Dombivali Mahanagar palika for period of 01-06-2015 to 31-03-2016 and 01-04-2016 to 31-03-2017 and against this company has suo moto calculated the tax liability under LBT rules and paid of Rs. 37,37,285/- & 44,89,197/-& Rs 12,40,048/- for respective years, during the year and this amount is shown under the head other current assets schedule 12 in Financial statements as order for payment is not received by company.ssss

NOTE: 38

Derivative Instruments:

The Company uses forward contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. Details of outstanding forward contract as on 31.3.2024 have been given below:-

NOTE : 39

As per the details of outstanding creditors as on 31/03/2024 related to Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 it was noticed that some amount has not been paid within 45 days as per section 15 of MSME Act 2006.

NOTE : 40

As at March 31,2024, the company has reviewed the future earnings of all the cash generating units in accordance with the Indian Accounting Standard 36 “Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

NOTE : 41

In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realise at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

NOTE : 44

Previous year figures are regrouped / rearranged and reclassified whenever necessary to confirm to current year''s presentation.

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Mar 31, 2023

1.13 Provisions, Contingent Liabilities and Capital Commitments

1.13.1 Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle theobligation and a reliable estimate can be made of the amount of the obligation.

1.13.2 The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements, if any.

1.13.3 If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

1.13.4 Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company, or present obligations where it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured with sufficient reliability.

1.13.5 Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of economic resources is considered remote.

1.13.6 Contingent liabilities and Capital Commitments disclosed are in respect of items which in each case are above the threshold limit.

1.14 Fair Value measurement

1.14.1 The Company measures certain financial instruments at fair value at each reporting date.

1.14.2 Certain accounting policies and disclosures require the measurement of fair values, for both financial and non- financial assets and liabilities.

1.14.3 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 in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability also reflects its non-performance risk.

1.15 Financial Assets

1.15.1 Initial recognition and measurement

Trade Receivables and debt securities issued are initially recognised when they are originated. All other financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial assets other than those measured subsequently at fair value through profit and loss, are recognised initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset.

1.15.2 Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial asset, the Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit and loss.

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:-

The asset is held within a business model whose objective is -

- To hold assets for collecting contractual cash flows; and

- Contractual terms of the 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 amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium 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 and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss.

Debt instruments at Fair value through Other Comprehensive Income fFVOCn

A ''debt instrument'' is measured at the fair value through Other Comprehensive Income if both the following conditions are met:

The asset is held within a business model whose objective is achieved by both

- collecting contractual cash flows and selling financial assets; and

- contractual terms of the asset give rise on specified dates to cash flows that are SPPI on the principal amount outstanding.

After initial measurement, these assets are subsequently measured at fair value. Interest income under effective interest method, foreign exchange gains and losses and impairment losses are recognised in the Statement of Profit and Loss. Other net gains and losses are recognised in other comprehensive Income.

Debt instruments at Fair value through Profit or Loss (FVTPL)

Fair Value through Profit or Loss is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation at amortised cost or as FVOCI, is classified as FVTPL.

After initial measurement, any fair value changes including any interest income, foreign exchange gain and losses, impairment losses and other net gains and losses are recognised in the Statement of Profit and Loss.

1.15.3 Impairment of financial assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (“ECL”) model for measurement and recognition of impairment loss on the financial assets measured at amortized cost and debt instruments measured at FVOCI.

Loss allowances on trade receivables are measured following the

''simplified approach'' at an amount equal to the lifetime ECL at each reporting date. The application of simplified approach does not require the Company to track changes in credit risk. Based on the past history and track records the company has assessed the risk of default by the customer and expects the credit loss to be insignificant. In respect of other financial assets such as debt securities and bank balances, the loss allowance is measured at 12 month ECL only if there is no significant deterioration in the credit risk since initial recognition of the asset or asset is determined to have a low credit risk at the reporting date.

1.16 Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

1.17 Taxes on Income

1.17.1 Current Tax

Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, by the end of reporting period.

Current Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss, other comprehensive income or directly in equity.

1.17.2 Deferred tax

Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the

deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date.

Deferred Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss, other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

1.18 Earnings per share

Basic earnings per share are calculated by dividing the profit or loss for the period attributable to equity shareholders (after deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

1.19 Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities are classified as current or non-current as per the Company''s normal operating cycle (determined at 12 months) and other criteria set out in Schedule III of the Act.

1.20 Cash and Cash equivalents

Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and demand deposits with an original maturity of less than three months, which are subject to an insignificant risk of changes in value.

For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheque and draft on hand. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be

cash equivalents.

1.21 Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

1.22 CORPORATE SOCIAL RESPONSIBILITY

The Company has attracted the provision of section 135 and has contributed Rs 12,50,000/- towards CSR activities for F.Y. 2022-23 as per required Section 135 of the Companies Act, 2013.

Note:- Related party relationship is as identified by the company and relied upon by the Auditors. Figures in brackets indicate previous year’s figures.

NOTE : 35

Operating Segments

The Company’s sole business segment is manufacturing / processing of textile fabrics and all activities are incidental to this sole business segment. Given this fact and the Company Services its domestic and export markets from India only, the financial statements reflect the information required by Indian Accounting standard - 108 for the sole business segment of Manufacturing / Processing of textile fabrics. The whole of the business assets are situated in India.

NOTE : 36

Company has given unsecured loan of Rs. 841.85 Lakhs of companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 841.85 Lakhs.

NOTE : 37

Derivative Instruments:

The Company uses forward contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. Details of outstanding forward contract as on 31.3.2023 have been given below:-

NOTE : 38

Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

NOTE : 39

As at March 31, 2023, the company has reviewed the future earnings of all the cash generating units in accordance with the Indian Accounting Standard 36 “Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

NOTE : 40

In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realise at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

NOTE : 42

Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

NOTE : 43

Previous year figures are regrouped / rearranged and reclassified whenever necessary to confirm to current year’s presentation.

SIGNATURE TO NOTES 1 TO 43

AS PER OUR REPORT OF EVEN DATE ANNEXED

FOR SUNDERLAL DESAI & KANODIA, FOR AND ON BEHALF OF BOARD

CHARTERED ACCOUNTANTS

Sd/- Sd/- Sd/-

(MUKUL B. DESAI) PRADIPKUMAR HEERADEVI

PARTNER PACHERIWALA PACHERIWALA

Membership No: 33978 DIRECTOR DIRECTOR

DIN:00767879 DIN: 00433665

PLACE :- MUMBAI DATED:- 30 May 2023

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Mar 31, 2018

Corporate Information

BINAYAK TEX PROCESSORS LIMITED is Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 having Corporate Identity Number L17110MH1983PLC030245. Its shares are listed on Bombay Stock Exchange in India. The Company is engaged in the business of manufacturing / processing of textile fabrics. The principal place of business of the company is at Mumbai, Maharashtra. The Company caters to both domestic and international markets.

Terms/ Rights Attached to Equity Shares:

a) The company has only one class of equity shares having par value of ‘ 10/- Each holder of equity shares is entitled to one vote per share. The compnay delcares and pays dividend, if any, in Indian Rupees.

b) In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company has received demand notice for A.Y. 2014-15 against the said notices the company has filed appeals with CIT appeals.

NOTE : 1

Expenditure in Foreign Currency:

- Foreign Travelling Expenses Rs.-2,63,102.00 (Previous Year Rs. 9,78,526.00)

- Foreign Brokerage Paid Rs.- 33,31,353.00 (Previous Year Rs. 39,99,065.00)

- Earning in foreign Currency (Export/F.O.B.) Rs. 61, 96,88,180.22 (P. Y. Rs. 87,59,14,959.09)

- Raw Material Purchases in foreign Currency Rs 50,95,718.00 (P. Y. Rs NIL )

NOTE : 2

The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute of Chartered Accountants of India.

NOTE : 3

Consequent to issue of Indian Accounting standard 12 “Income taxes” by ‘The Institute of Chartered Accountant of India”, the Company recorded the deferred Tax Liabilities on account of timing difference & deferred tax charge for the year is Rs 2,12,18,191/- (P.Y. Rs. 1,99,25,043/-) which has been credited / debited to Statement of Profit & Loss.

NOTE : 4

Related parties Disclosures:-

i) (a) Key Management Personnel

Shree Pradip kumar Pacheriwala

Shree Ashok Kumar Agarwal Smt. Heera Devi Pacheriwala

(b) Associates:-Jimtex Pvt Ltd

S.V. Business Pvt Ltd

Hanuman Das Madanlal

Valiant Glass Works Pvt Ltd

Benkatesh Synth Processors Pvt Ltd

Paramount Finetex & Industries ( I ) Pvt. Ltd

Balaji Tex Knitting Mfg. Co. Pvt Ltd.

Wintry Engineering &Chemicals Pvt Ltd

(c) Relatives of key management personnel and their enterprises:

Mr Binodilal Pacheriwala, Mr Dilipkumar Pacheriwala, Smt. Bhagirathi Devi

Pacheriwala and Smt. Beladevi Pacheriwal.Vinita Pacheriwal

Note:- Related party relationship is as identified by the company and relied upon by the Auditors. Figures in brackets indicate previous year’s figures.

NOTE : 5

Operating Segments

The Company’s sole business segment is manufacturing / processing of textile fabrics and all activities are incidental to this sole business segment. Given this fact and the Company Services its domestic and export markets from India only, the financial statements reflect the information required by Indian Accounting standard - 108 for the sole business segment of Manufacturing / Processing of textile fabrics. The whole of the business assets are situated in India.

NOTE : 6

Company has advanced unsecured loan of Rs. 922.65 Lacs of companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 922.65 Lacs.

NOTE : 7

Derivative Instruments:

The Company uses forward contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. Details of outstanding forward contract as on 31.3.2018 have been given below:-

NOTE : 8

Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

NOTE : 9

As at March 31, 2018, the company has reviewed the future earnings of all the cash generating units in accordance with the Indian Accounting Standard 36 “Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

NOTE : 10

In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realise at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

NOTE : 11

Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

NOTE : 12. Notes to First time adoption :

1. Security Deposits :

Under the previous IGAAP interest free security deposits (that are refundable in cash on completion of the lease term) are recorded at transaction price. Under Ind AS all financial assets are required to be recognized at fair value. Accordingly the company has fair valued security deposits and the difference between the fair value and transaction value of the Security deposit has been recognized as prepaid rent.

2. Employee Benefit Cost :

Under Ind AS the actuarial gains and losses form part of the remeasurement of the net defined benefit Liability / Assets and is recognized in other comprehensive income. Under IGAAP, actuarial gains and losses were recognized in profit or loss. Consequently, the deferred tax effect of the same has also been recognized in other comprehensive income under Ind AS instead of profit or loss.

3. Fair Valuation of Investment :

Under IGAAP investment in equity / other instruments were classified into long term and current investments. Long term investments were carried at cost less provision, other than temporary in nature. Current investments were carried at lower of cost as fair value. Under Ind AS, these investments are required to be measured at fair value either through other comprehensive income or through profit and loss. The company has opted to fair value of these investments through other comprehensive income.

4. Deferred Taxes:

Under previous GAAP, deferred taxes were recognized based on profit and loss approach i.e. tax impact on difference between the accounting income and taxable income. Under Ind AS deferred tax is recognized by following Balance Sheet approach i.e. tax impact on temporary difference between the carrying value of assets and liabilities in the books and their respective tax base. Also deferred tax has been recognized on the adjustments made on transition to Ind AS.

5. Excise Duty:

Under previous GAAP, revenue from sale of goods was presented net of excise duty on sale. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. Excise duty is presented in statement of profit and loss as an expense.

6. Other Equity:

Adjustments to retained earnings and other comprehensive income have been made in accordance with Ind AS, for the above mentioned items.

Optional Exemption availed:

a) Deemed Cost

The Company has elected to continue with the carrying value for all of its property, plant and equipment and intangible assets as recognized in the financial statement as at 31.03.2016 measured as per the previous GAAP and use that as its deemed cost as at the transition date.

b) Investments in subsidiaries and joint ventures

The Company has elected to continue with the carrying amount of investment as recognized in the financial statement as at 31.03.2016 measured as per the previous GAAP and used that as its deemed cost as at the transition date.

Applicable Mandatory Exceptions

a) Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies)

Ind AS estimates as at 1^st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

i. Impairment of financial assets based on expected credit loss model.

b) Depreciation of financial assets and financial liabilities

Ind AS 101 requires first time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows the first time adopter to apply the de-recognition requirement in Ind AS 109 retrospectively from the date to the entities choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities to de-recognized as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provision of Ind AS 109 perceptively from the date of transition to Ind AS.

c) Classification and measurement of financial assets

As required under Ind AS 101 the Company has assessed the classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition Ind AS. Where practicable, measurement of financial assets accounted at amortized cost has been done retrospectively.

d) Impairment of financial assets

Ind AS 101 requres an entity to apply the Ind AS requirements retrospectively if it is practicable, without undue cost and effort to determine the credit risk that debt financial instruments where initially recognized. The Company has measured impairment losses on financial assets as on the date of transition i.e. 1^st April, 2016 in view of Cost and effort.

Note : 13. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:

(i) Reconciliation of Balance sheet as at 1st April, 2016 (Transition Date);

(ii) Reconciliation of Balance sheet as at 31st March, 2017;

(iii) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017;

(iv) Reconciliation of Total Equity as at 1st April, 2016 and as at 31st March, 2017;

(v) Adjustments to Cash Flow Statements as at 31st March, 2017

The presentation requirements under previous GAAP differs from Ind AS, and hence, previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The re-grouped previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with previous GAAP.

NOTE : 14 Previous year figures are regrouped / rearranged and reclassified whenever necessary to confirm to current year’s presentation.

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Mar 31, 2016

l. CORPORATE SOCIAL RESPONSIBILITY

The Company has made a provision of Rs. 22,50,000/- (Twenty Two Lacs Fifty Thousand) towards CSR activities; for F.Y. 14-15 of Rs. 11,35,000/- and F.Y. 15-16 of Rs. 11,15,000/-; as per required Section 135 of the Companies Act, 2013.

The Company has received demand notice for A.Y. 2012-13 and against the said notices the company has filed appeals with Income Tax Appellate Tribunal.

NOTE:2

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule

II. Accordingly the unamortized carrying value is being depreciated/amortized over the revised/remaining useful lives by a revised WDV rate on written down value method.

NOTE:3 Expenditure in Foreign Currency:

- Foreign Traveling Expenses Rs.-13,80,278.00 (Previous Year Rs. 16,18,171.00)

- Earning in foreign Currency (Export/F.O.B.) Rs. 95,65,61,856.73 (P. Y. Rs. 92,10,50,598.47 NOTE:27

The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute of Chartered Accountants of India.

NOTE:4

Consequent to issue of Accounting standard 22 "Accounting for Taxes on Income" by ''The Institute of Chartered Accountant of India", the Company recorded the deferred Tax Liabilities on account of timing difference & deferred tax charge for the year is Rs 1980020.39 (P.Y. Rs. 3539012.69) which has been credited / debited to Statement of Profit & Loss.

NOTE:5

Related parties Disclosures:-

i) (a) Key Management Personnel

Shree PradipkumarPacheriwala

Shree Ashok Kumar Agarwal Smt. Heera Devi Pacheriwala

(b) Associates:-

Jimtex Pvt Ltd

S.V. Business Pvt Ltd

Hanuman Das Madanlal

Valiant Glass Works Pvt Ltd

Benkatesh Synth Processors Pvt Ltd

Paramount Finetex& Industries ( I ) Pvt. Ltd

Balaji Tex Knitting Mfg. Co. Pvt Ltd.

Wintry Engineering &Chemicals Pvt Ltd

(c) Relatives of key management personnel and their enterprises:

MrBinodilalPacheriwala, MrDilipkumarPacheriwala, Smt. Bhagirathi Devi

Pacheriwala and Smt. BeladeviPacheriwal.VinitaPacheriwal

ii) Transaction carried out with related parties referred in (i) above, in ordinary course of business:

Note:- Related party relationship is as identified by the company and relied upon by the Auditors. Figures in brackets indicate previous year''s figures.

NOTE:6 Segment Reporting

The Company’s sole business segment is Manufacturing / Processing of textile fabrics and all activities are incidental to this sole business segment. Given this fact and the Company Services its domestic and export markets from India only, the financial statements reflect the information required by AS - 17 for the sole business segment of Manufacturing / Processing of textile fabrics. The whole of the business assets are situated in India.

NOTE:7

Company has advanced unsecured loan of Rs. 914.23 Lacs of companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 933.60 Lacs.

NOTE:8 Derivative Instruments:

The Company uses forward contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. Details of outstanding forward contract as on 31.3.2016 have been given below:-

NOTE:9

Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

NOTE:10

As at March 31, 2016, the company has reviewed the future earnings of all the cash generating units in accordance with the Accounting Standard 28 "Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

NOTE:11

In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realise at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

NOTE:12

Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

NOTE:13

Previous year''s figures have been regrouped/ rearranged/ reclassified wherever necessary to conform to this year''s presentation.

---

Mar 31, 2015

NOTE : 1

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being depreciated/amortized over the revised/remaining useful lives by a revised WDV rate on written down value method. The written down value of fixed assets whose lives have expired as at 01.04.2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs.2,80,404.94

NOTE : 2

Expenditure in Foreign Currency:

- Foreign Traveling Expenses Rs.-16,18,171.00 (Previous Year Rs. 6,99,537.00)

- Earning in foreign Currency (Export/F.O.B.) Rs. 92,10,50,598.47 (P. Y. Rs. 81,55,16,566.26 )

NOTE : 3

The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute of Chartered Accountants of India.

NOTE : 4

Consequent to issue of Accounting standard 22 "Accounting for Taxes on Income" by 'The Institute of Chartered Accountant of India", the Company recorded the deferred Tax Liabilities on account of timing difference & deferred tax charge for the year is Rs 35,39,012.69 (P.Y. Rs. 33,65,267.56) which has been credited / debited to Statement of Profit & Loss.

NOTE : 5

Related parties Disclosures:-

i) (a) Key Management Personnel

Shree Pradip kumar Pacheriwala

Shree Ashok Kumar Agarwal

Smt. Heera Devi Pacheriwala

(b) Associates:-

Jimtex Pvt Ltd

S.V. Business Pvt Ltd

Hanuman Das Madanlal

Valiant Glass Works Pvt Ltd

Benkatesh Synth Processors Pvt Ltd

Paramount Finetex & Industries (I) Pvt. Ltd

Balaji Tex Knitting Mfg. Co. Pvt Ltd.

Wintry Engineering & Chemicals Pvt Ltd

(c) Relatives of key management personnel and their enterprises:

Mr Binodilal Pacheriwala, Mr Dilipkumar Pacheriwala, Smt. Bhagirathi Devi

Pacheriwala and Smt. Beladevi Pacheriwal.Vinita Pacheriwal

Note:- Related party relationship is as identified by the company and relied upon by the Auditors. Figures in brackets indicate previous year's figures.

NOTE : 6

Segment Reporting

A: Primary Segment (By business Segment):-

As the Company is mainly engaged in the business of Manufacturing/ Processing of textile fabrics considering the nature of business and financial reporting of the company. The Company has only one segment viz. "Textiles Products" as reportable segment.

B: Secondary Segment ( By Geographical demarcation):-

The Company operates in Local/ Export segment geographically of which the export sales have amounted to Rs. 9319.43 lacs (P.Y. Rs.- 8275.06Lacs) but due to the nature of business, the assets/ liabilities and expenses for these activities has not been bifurcated separately.

NOTE : 7

Company has advanced unsecured loan of Rs. 933.60 Lacs of companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 1,017.63 Lacs.

NOTE : 8

Derivative Instruments:

The Company uses forward contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. Details of outstanding forward contract as on 31.3.2015 have been given below:-

NOTE : 9

Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

NOTE : 10

As at March 31, 2015, the company has reviewed the future earnings of all the cash generating units in accordance with the Accounting Standard 28 "Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

NOTE : 11

In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realise at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

NOTE : 12

Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

NOTE : 13

Previous year's figures have been regrouped/ rearranged/ reclassified wherever necessary to conform to this year's presentation.

---

Mar 31, 2014

Note 1

Contingent Liability not Provided for in respect of:

Current Previous Year Year 31.03.2014 31.03.2013 (Rs.) (Rs.)

Bills Discounted / Purchases 387,846,593.85 321949951.53

Income Tax Matters for A.Y. 2465106.00 8317552.00 2000- 01 to A.Y. 2011-12.

The Company has received demand notice for various years and against the said notices the company has filed appeals with Income Tax Appellate Tribunal.

Note 2

Depreciation on fixed assets has been provided on straight line method basis in conformity with the provision of Section 205(2) (b) of the Companies Act 1956, at the rates prescribed in schedule XIV of the said act.

Note 3

The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute of Chartered Accountants of India.

Note 4

Consequent to issue of Accounting standard 22 “Accounting for Taxes on Income” by ‘The Institute of Chartered Accountant of India”, the Company recorded the deferred Tax Liabilities on account of timing difference & deferred tax charge for the year is Rs 33,65,267.56 (P.Y. Rs. 5,40,215.52) which has been debited to Statement of Profit & Loss.

Note 5

Segment Reporting

A: Primary Segment (By business Segment):-

As the Company is mainly engaged in the business of Manufacturing/ Processing of textile fabrics considering the nature of business and financial reporting of the company. The Company has only one segment viz. “Textiles Products” as reportable segment.

B: Secondary Segment ( By Geographical demarcation):-

The Company operates in Local/ Export segment geographically of which the export sales have amounted to Rs. 8275.06 lacs (P.Y. Rs.- 7641.73Lacs) but due to the nature of business, the assets/ liabilities and expenses for these activities has not been bifurcated separately.

Note 6

During earlier year, assessment of AY 2001-02 to AY 2008-09 was completed u/s 153A of Income Tax Act, 1961 which, resulted in certain demand which were amended vide order of rectification/ order giving effect to ITAT order & determined demand of Rs. 54.84 Lacs. The company has disputed said demand before appellate authorities hence related accounting entries will be made in the year when finality is reached.

Note 7

Derivative Instruments:

The Company uses forward contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. Details of outstanding forward contract as on 31.3.2014 has been given below:-

Note 8

Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

Note 9

As at March 31, 2014, the company has reviewed the future earnings of all the cash generating units in accordance with the Accounting Standard 28 “Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

Note 10

In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realise at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

Note 11

Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

Note 12

Previous year’s figures have been regrouped/ rearranged/ reclassified wherever necessary to conform to this year''s presentation.

---

Mar 31, 2013

NOTE ; 1

EXPENDITURE JN FOREIGN CURRENCY:

- Foreign Traveling Expenses Rs.- .15,46,760 (Previous Year Rs. 9,76,428.00)

- Earning in foreign Currency (Export/F.O.B.) Rs. 74,80,96,441.11 (P. Y. Rs. 75,93,48,304.30)

NOTE : 2

Depreciation on fixed assets has been provided on straight line method basis in conformity with the provision of Section 205(2) (b) of the Companies Act 1956, at the rates prescribed in schedule XIV of the said act.

NOTE : 3

The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute of Chartered Accountants of India.

NOTE : 4

Consequent to issue of Accounting standard 22 "Accounting for Taxes on Income" by The Institute of Chartered Accountant of India", the Company recorded the deferred Tax Liabilities on account of timing difference & deferred tax charge for the year is R^^^5t5j52 (P.Y. Rs. 12,30,888.47) which has been

NOTE : 5

SEGMENT REPORTING :

A- Primary Seqment (By business Segment)

Mainly engaged in the business of Manufacturef fabrics considering the nature of business and financial report.ng of the company. The Company has only one segment viz ''Textiles Products" as reportable segment.

R. Secondary Seqment ( By Geographical demarcation):-

Export segment geographically of which the export sales have amounted to Rs 7,641.73 lacs (P.Y. Rs, 7,725.05 Lacs) but due to the nature of business, the assets/ liabilities and expenses for these activities has not been bifurcated separately.

NOTE : 6

Durina earlier year assessment of AY 2001-02 to AY 2008-09 was completed u/s 153A of Income Tax M UflXesuffifn certain demand which were amended vide order of rectification/ ordergmng effec to ITAT o der & determined demand of Rs. 54.84 Lacs. The company has disputed sad demand before appellate authorities hence related accounting entries will be made ,n the year when finality is reached.

NOTE : 7

Company has advanced unsecured loan of Rs. 963.60 Lacs including interest free ^<***J*^* certain parties / companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 1,047.63 Lacs.

NOTE : 8

Company does not have complete information.

specified in Micro, Smali and Medium Enterprises development Act, 2006 hence it is no* po«= verify the amount due to such enterprises.

NOTE : 9

2011 at factory premises of the company During the previous year there was fire on 22 SePte™fr ah i ai i y h Business located at plot no. F 13-14, MIDC Phase-2, & spares Pvt Ltd. The fire damaged raw material, goods received from for job statement of pro, & loss.

NOTE : 10

does not exceed the future recoverable amount, consequently, no aajusimem y assets is considered necessary by the Management.

NOTE : 11

have been made in respect of all known liabilities.

NOTE : 12

Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconaitaton, ,f any.

NOTE : 13

Previous figures have been regrouped/ rearranged/ rectified wherever necessary to conform to this year''s presentation.

---

Mar 31, 2012

Note1 Capital commitments:

Estimated amount of Contracts remaining to be executed on Capital Account and not

Provided for Rs. Nil (P.Y. Rs. 40,00,000) against which advance of Rs. Nil (P.Y. Rs.10,00,000) have been paid.

if v Note27 Expenditure in Foreign Currency

- Foreign Traveling Expenses Rs.- .9,76,428 (Previous Year Rs. 11,61,251.00)

-C.I.F. Value of Import Rs.-NIL (Previous Year Rs.-20,35,341)

Earning in foreign Currency (Export/F.O.B.) Rs. 75,93,48,304.30. (P. Y. Rs. 66,67,77,407.45.)

Note2 Depreciation on fixed assets has been provided on straight line method basis in conformity with the provision of Section 205(2) (b) of the Companies Act 1956, at the rates prescribed in schedule XIV of the said act.

Note3 The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute Chartered Accountants of India. Consequent to issue of Recounting standard 22 "Accounting for Taxes tin Income" by

The Institute of Chartered Accountant of India", the Company recorded the deferred Tax Liabilities on account of timing difference & deferred tax charge for the year is Rs 1230888.47 (P.Y. Rs. 18,89,454.22) which has been debited to Statement of Profit & Loss.

Note4 Related parties Disclosures:-

i) (a) Key Management Personnel

Shree Pradip kumar Pacheriwala Shree Ashok kumar Agarwal Smt. Heera Devi Pacheriwala

(b) Associates:-

Jimtex Pvt Ltd S.V. Business Pvt Ltd Hanuman Das Madanlal Valiant Glass Works Pvt Ltd Benkatesh Synth Processors Pvt Ltd Paramount Finetex & Industries (I) Pvt. Ltd Balaji Tex Knitting Mfg. Co. Pvt Ltd. Wintry Engineering &Chemicals Pvt Ltd (c) Relatives of key management personnel and their enterprises:

Mr Binodilal Pacheriwala, Mr Dilipkumar Pacheriwala, Smt. Bhagirathi Devi Pacheriwala and Smt. Beladevi Pacheriwaf.

Note5 Segment Reporting

A: Primary Segment (By business Segment):-

As The Company is mainly engaged in the business of Manufacturing/ Processing of textile fabrics considering the nature of business and financial reporting of the company. The Company has only one segment viz. Textiles Products" as reportable segment.

B: Secondary Segment ( By Geographical demarcation):-

The Company operates in Local/ Export segment geographically of which the export sales have amounted to Rs. 7,725.05 lacs (P.Y. Rs.- 6,844.74 Lacs) but due to the nature of business, the assets/ liabilities and expenses for these activities has not been bifurcated separately.

Note6 During earlier year, assessment of AY 2001-02 to AY 2008-09 was completed u/s 153A of Income Tax Act, 1961 which, resulted in certain demand which were amended vide order of rectification/ order giving effect to ITAT order & determined demand of Rs. 54.84 Lacs. The company has disputed said demand before appellate authorities hence related accounting entries will be made in the year when finality is reached.

Note7 Company has advanced unsecured loan of Rs. 9,63,60,453 including interest free loan of Rs. 30,00,000 to certain parties / companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 8,28,93,521.

Note8 Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

Note9 During the year there was fire on 22nd September 2011 at factory premises of the company located at plot no. F 13-14, MIDC Phase-2, Dombivali (East), which is taken on Rent from S.V. Business Pvt. Ltd.. The fire damaged raw material, goods received from third parties for job work, Stores & Spares and Packing Materials. The total loss evaluated by the company is Rs. 1,65,77,333/- and insurance claim is lodged with United India Insurance Company Ltd. for such total loss which is shown as claim receivable under heading Non-current assets.

Note10 As at March 31, 2012, the company has reviewed the future earnings of all the cash generating units in accordance with the Accounting Standard 28 "Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

Note11 In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realise at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

Note12 Certain balances under the heads Sundry Debtors, Loans & Advances, Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

Note13 Previous year figures

Till the year ended 31st March 2011, the company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.

---

Mar 31, 2011

1. Contingent liability not provided for in respect of:

Current Year Previous Year 31.03.2011 (Rs.) 31.03.2010 (Rs.)

Bills Discounted/Purchases 20,98,15,305 21,20,81,348

Income Tax Matters for A.Y.2000-01 to A.Y.2008-09 54,83,780 1,60,28,906



The Company has received demand notice for various years and against the said notices the company has filed appeals with Income Tax Appellate Tribunal''

2. Estimated amount of contracts remaining to be executed on capital Account and not provided for Rs,40,00,000 (P.Y.Rs.25,00,000) against which advance of Rs,10,00,000 (P.Y.Rs.13.08.000) Have been paid.

3. i) Loans from union Bank of India on FDBP/PC/PCFC/Cash credit account are secured by first hypothecation charge on entire current assets consisting of raw material semi finished goods and receivables Extension of first charge on entire fixed assets of the company consisting of land building plant and machinery situated at dombivali Dist theme The loans are also guaranteed by the directors.

ii) Term loan from union Bank of India is secured by mortgage charges on land & building at dombivali and hypothecation change on entire current assets consisting of raw Material finished and level Extension of first charge on entire fined assets of the Company consisting of land. building, plant and Machinery situated at Dombivali Dist thane The loans are also guaranteed by the directors,

iii) Term foam tram Union Bank of naira m secured by mortgage clergies on land Priding at Dombrvalr and hypothecs Son charge on plant & Machinery and extension of Heerbadevi property hypothecation charge on the entire current assets of the Company consign q of Raw Material Stock in Process. Finished Coeds. Stores & Spares. Other Consumables. Book debts, both present future. The Tern loan is also guaranteed the directors (Repayment in next one year is (P Y. Rs.-55.55 lacs.}

iv) Loans from other banks and secured by hypothecation of the vehicles purchased from such loans. Repayment due in next one year is Rs.Nil lacs (P.Y.Rs22,07,lacs)

4. Eating in foreign currency (Export/F.O.B.) Rs.65,15,91,979.87 (P.Y.Rs 11,61,251,00)

5. Depreciation in fixed assets has been provided on straight line method basis in conformity with the provision of section 205 (b) of the companies Act 1956 at the rates prescribed in schedule XIV of the said act.

6. The Company has not provided for gratuity liabilities and leave salaries as game has not been ascertained however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS5 (Revised} issued by The institute of Chartered Accountant of India.

7. Consequent to issue of Accounting standard 22 "Accounting for Taxes on Income" by ''The institute of Chartered Accountant of India the Company recorded the deferred Tax charge for the year is Rs.18,69,454,22 (P.Y. Rs,1285050.63) which has been debited to profit & loss Account.

8. Related parties Disclosures.

i) (a) Key Management personal

Shree paradip kumar pecdheriwala

shree Ashok kumar Agarwal

Smt Hsera Devi pachair wala

9. Segment Reporting

A; Primary Segment [By business Segment);-

As The Company is mainly engaged in the business of Manufacture/ Processing of textile considering the nature of business and financial reporting of the company The Company has only one segment viz Textiles Products'' as reports segment.

B: Secondary Segment { By Geographical demark Action):-

The Company operates in Local/Export segment geographically of which the export sales have amounted to Rs. 6.645.28 lacs (p.V. Ra.- 3,344.74 Lacs) but due to the nature of business. the assets/liabilities and expenses for these activities has not been bifurcated separately.

10. During earlier year, assessment of AY 2001-02 to AY 2008-09 was completed u/s 153A of income Tax Act. 1961 which resulted in certain demand which were amended vide order of rectification/ order giving effect to ITAT order & determined demand of Rs 54.34 Lacs. The company has disputed said demand before appellate authorities hence related accounting entries will be made in the years when finality is reached.

11. Company has advanced unsecured loan of Rs 89.364.896 Including interest free loan of Rs. 30,00.000 to certain parties/companies in which directors are interested The maximum balance outstanding at any time during the year to such parties/companies is Rs.8,28,93,521

12. Sundry debtors closing balance includes Rs.11,98,77,702 receivable from one party in which directors are interested.

13. Company does not have complete information to determine Micro small and Medium enterprises as specified to Micro, Small and Medium Enterprises development Act 2006 hence it is not possible for Us to verify the amount due to such enterprises.

14. Other information required to be given under paragraph 3. 4 ( C ) and 4 ( D) of the part II of Schedule VI of Companies Act 1956 are not applicable.

15. There was major fire on 12th May 2009 at Packing Department of the company located at plot no. A,55, MIDC Phase-1 Dombivali (East), which is taken on lease The fire extensively damaged finished stock of the company, goods received from third parties for job work. Plant & Machinery aristae, Stored & Spares and Packing Materials. The Total loss evaluated by the company is Rs. 7.00,86,245.95 insurance Claim lodged with IFFCO Tokio General insurance Company limited Company received Rs 2,00,00.000/- as interim payment towards claim on 11th November 2009 and appropriated same on certain loss during the year ended 31st March 2010.The claim was finally settled during the year by receipt of Rs, 3,72,61,339 on 18th December 2010 and balance loss deteriorated to be irrecoverable has been written oh during the year as exceptional item.

16. As at March 31.2011, the company has reviewed the future earnings of all the cash generating, units in accordance with the Accounting Standard 28 ''Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently no adjustment to carrying amount of assets is considered necessary by the Management.

Notes:-

1. Previous Year''s figures are regrouped/reconsidered wherever necessary

2. Cash & Cash Equivalents represents cash and tank balances only.

Notes forming part of the accounts for the year ended 31st march 2011

17. In the opinion of the management the current Assets and Loans and Advances as shown in the books are expected to realize at their Book Values in the normal course of business and adequate provision have been made in respect of all know liabilities.

18. Certain balances under the heads sundry Debtors. Loans Advances Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation if any.

19. Additional information regarding Balance sheet abstract and general Business Profile as required under part iv of schedule vi to company Act, 1956 is annexed herewith.

20. Previous Years figures have been regrouped rearranged wherever found necessary.

---

Mar 31, 2010

1 Contingent Libility not Provided for in respect of:

Current Year Previous Year 31.03.2010 (Rs.) 31 03.2009 (Rs.)

Bills Discounted / Purchases 21,20,81,348 16,78,65,400 Income Tax Matters for A.Y. 2000-01 1,60,28,905 Nil to A.Y. 2008-09.

2. Estimated amount of Contracts remaining to be executed on Capital Account and not Provided for Rs. 2,500,000 (P.Y. Rs. 4,050,000) against which advance of Rs.1,308,000 (P.Y. Rs. 2,727,908) have been paid.

3. i) Loans from Union Bank of India on FDBP/PC/PCFC/ Cash Credit account are Secured by first hypothecation charge on entire current assets consisting of raw Material, semi finished goods and receivables. Extension of first charge on entire fixed assets of the Company consisting of land, building, plant and Machinery situated at Dombivali, Dist. Thane. The loans are also guaranteed by two of the directors.

ii) Term loan from Union Bank of India is secured by mortgage charges on land & building at Dombivali and hypothecation charge on plant & Machinery and extension of Kalbadevi property hypothecation charge on the entire current assets of the Company consisting of Raw Material, Stock in Process, Finished Goods, Stores & Spares, Other Consumables, Book debts, both present & future. The Tern loan is also guaranteed by two of the directors. (Repayment in next one year is Rs.55.56lacs (P.Y. Rs- 41.26 lacs.)

iii) Loans from other banks are secured by hypothecation of the vehicles purchased from such loans. Repayment due in next one year is Rs.28.54 Lacs (P.Y. Rs.28.54 Lacs).

4. Expenditure in Foreign Currency.

- Foreign Traveling Expenses Rs.- .1,161,251.00 (Previous Year Rs. 453,130.00)

- C.I.F. Value of Import Rs.- 2,035,341.00 (Previous Year Rs.- NIL)

5. Earning in foreign Currency (Expoft/F.O.B.) Rs. 666,777,407,45. (P. Y. Rs. 535,276.892.64.)

6. Depreciation on fixed assets has been provided on straight line method basis in conformity with the provision of Section 205(2) (b) of the Companies Act 1956, at the rates prescribed in schedule XIV of the said act.

7. The Company has not provided for gratuity liabilities and leave salaries as same has not been ascertained, however it will be recognized on cash basis. The method adopted by company & disclosures made hereinabove are not in accordance with AS-15 (Revised) issued by The Institute Of Chartered Accountants of India.

8. Consequent to issue of Accounting standard 22 "Accounting for Taxes on Income by The Institute of Chartered Accountant of India", the Company recorded the deferred Tax Liabilities on account Of timing difference & deferred tax charge for the year is Rs 1,285,050.63 (P.Y. Rs. 4,494,281.20) which has been debited to Profit & Loss Account.

9. Related parties Disclosures:-

i) (a) Key Management Personnel

Shree Pradip kumar Pacheriwala Shree Ashok kumar Agarwal Smt. Heera Devi Pacheriwala

(b) Associates:-

Jimtex Pvt Ltd

S.V. Business Pvt Ltd

Hanuman Das Madanlal

Valiant Glass Works Pvt Ltd

Benkatesh Synth Processors Pvt Ltd

Paramount Finetex & industries (I) Pvt. Ltd

Balaji Tex Knitting Mfg. Co. Pvt Ltd.

Wintry Engineering &Chemicals Pvt Ltd

c) Relatives of Key management personnel and their enterprises:

Mr Binodilal Pacheriwala, Mr Dilipkumar Pacheriwala, Smt. Bhagirathi Devi Pacheriwala and Smt. Beladevi Pacheriwal.

10. Segment Reporting

A: Primary Segment (By business Segment- As The Company is mainly engaged in the business of Manufacturing/ Processing of textile fabrics considering the nature of business and financial reporting of the company. The Company has only one segment viz. "Textiles Products" as reportable segment.

B: Secondary Segment (By Geographical demarcation):-

The Company operates in Local/ Export segment geographically of which the export sales have amounted to Rs. 6,844.74 lacs (P.Y. Rs.- 5,584.43 Lacs) but due to the nature of business, the assets/ liabilities and expenses for these activities has not been bifurcated separately.

11. During the year assessment of AY 2001-02 to AY 2008-09 was completed u/s 153A of Income Tax Act, 1961 which, resulted in certain demand which were amended vide order of rectification/ order giving effect to ITAT order & determined demand of Rs. 1.46 crores. The company has disputed said demand before appellate authorities hence related accounting entries will be made in the year when finality is reached.

12. Company has advanced unsecured loan of Rs. 82,893,521 including interest free loan of Rs. 3,000,000 to certain parties / companies in which directors are interested. The maximum balance outstanding at any time during the year to such parties / companies is Rs. 82,893,521.

13. Sundry debtors closing balance includes Rs. 32,169,801.81 receivable from one party in which directors are interested.

14. Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises development Act, 2006 hence it is not possible for us to verify the amount due to such enterprises.

15. Other information required to be given under paragraph 3.4(C) and 4 ( D) of the part II of Schedule VI of Companies Act. 1956 are not applicable.

Necessary accounting entries have been passed as per the details on record and final treatment will be given after finalization of assessment of the loss by the insurance company.

16. Additional Information regarding Balance Sheet abstract and general Business Profile as required under part IV of schedule VI to Company Act. 1956 is annexed herewith.

17. Previous Years Figures have been regrouped / rearranged wherever found necessary.