Notes to Accounts of Eco Hotels and Resorts Ltd.

Mar 31, 2024

x) Provisions and Contingent Liabilities

- Provisions are recognised 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 the obligation and there is a reliable estimate of the amount of the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

- Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

- The Final GST Output liability, claim of Input tax credit and the amount of GST debited to Profit and Loss account, are subject to finalization of GST Audit, which is not complete as on the date of signing this Balance Sheet. Due to this reason, the impact on Financial Statements on account of GST credit mismatch cannot be stated.

xi) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Sale of goods: Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, based on the applicable incoterms. Amounts disclosed as revenue are net of returns, trade allowances, rebates, GST, value added taxes and amounts collected on behalf of third parties. The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and the revenue recognition criteria have been complied.

xii) Cash and Cash Equivalents

In the cash flow statement, cash and cash equivalents includes cash on hand and demand deposits with banks.

xiii) Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

- Fair value of financial assets and financial liabilities

All financial assets and liabilities are carried at amortised cost. The management consider that the carrying amounts of financial assets and liabilities recognized in the financial statements approximate their fair value as on March 31, 2024 and March 31, 2023.

- Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost and trade receivables. For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 18, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses. Further, for the purpose of measuring lifetime expected credit loss ("ECL") allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information.

Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Financial assets, financial liabilities and equity instruments

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

The Company derecognises a financial asset 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. The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired.

xiv) Earnings Per Share (EPS)

EPS is calculated by dividing the Profit / (loss) attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Numbers used for calculating basic and diluted earnings per equity share are as stated below:

xv) Segment Reporting

An entity shall report separately information about each operating segment that:

- has been identified as an Operating Segment or results from aggregating two or more of those segments, and

exceeds the quantitative thresholds as specified in Ind AS 108 - Operating Segments

However, the company does not fall into any of the above stated criteria and hence the company does not qualify as a reportable segment and thus no segment reporting is provided.

xvi) Investments

- Investments in the nature of equity in subsidiaries and associates:

The Company has elected to recognize its investments in equity instruments in subsidiaries at cost being long term in nature in the standalone financial statements in accordance with the provisions of applicable Ind AS. Investment in subsidiaries are measured at cost less impairment loss, if any.

xvii) Related Party Disclosures

As per Indian Accounting Standard-24 issued by the Institute of Chartered Accountants of India, the disclosure of transactions with related parties as defined in the Accounting Standard are given below:

(e) Equity shares movement during the year ended March 31,2024:

* Equity shares issued as preferential allotment on 22.04.2023

1,34,70,108 number of fully paid equity shares having nominal value of INR 10 acquired by Eco Hotels and Resorts Limited from shareholders of Eco Hotels India Private Limited pursuant to required approval from Board,

* Equity shares issued as preferential allotment on 24.11.2023

1,20,35,606 number of fully paid equity shares having nominal value of INR 10 acquired by Eco Hotels and Resorts Limited from shareholders of Eco Hotels India Private Limited pursuant to required approval from Board,

Shareholders of EHRL and by BSE for in-principal, trading and listing approval.

(f) During the year, the Company has alloted Sweat Equity shares to the employees of the company. However, transfer of shares is not completed till the year end as approval for listing from BSE is received in the subsequent financial year. Hence, the same has not formed part of the share capital issued during the year.

(e) In the previous year, the Company had done preferential allotment of shares to the shareholders of Eco Hotels India Private Limited. However, transfer of shares was not completed till the year end and hence, the same did not form part of the Share Capital issued in the previo

Note No. 22: OTHER NOTES

i) Figures in the brackets are those relating to previous year.

ii) Expenditure in foreign currency during the financial year on account of:

Foreign Traveling Expenses - (Rs. Nil)

iii) Critical accounting judgements and key sources of estimation uncertainties:

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

iv) Trade Payables:

Dues of small enterprises and micro enterprises

The disclosure pursuant to the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED Act) for dues to micro enterprises and small enterprises as at March 31, 2024 and 2023 is as under:

Dues remaining unpaid to any supplier:

Principal Amount - Rs. 2,21,194/-

v) Additional Regulatory Information Required by Schedule III

a. No proceeding has been initiated or pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

b. The Company has not been declared willful defaulter (in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India) by any bank or financial Institution or other lender.

c. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

d. The Company has not traded or invested in crypto currency or virtual currency during the year.

e. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

(i) 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

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

f. The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 and there is no previously unrecorded income and related assets that are required to be recorded in the books of account during the year.

g. There are no charges or satisfaction yet to be registered with ROC beyond the statutory year.

h. Other information with regards to other matters specified in Schedule III to the Act, is either Nil or not applicable to the Company.

For ECO HOTELS AND RESORTS LIMITED (Formally known as Sharad Fibre & Yarn Processors Limited)

Girish L Shethia Vinod Tripathi Vikram Doshi

Chartered Accountant Executive Chairman Chief Financial Officer

M. No.: 044607 DIN: 00798632 DIN: 07546623

Sameer Desai

Company Secretary

Place: Mumbai Place: Mumbai

Date: 29^th May, 2024 Date: 29^th May, 2024

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Mar 31, 2023

x) Provisions and Contingent Liabilities

- Provisions are recognised 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 the obligation and there is a reliable estimate of the amount of the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

- Contingent liabilities are disclosed when there is a possible obligation arising from past events, 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 where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

- The Final GST Output liability, claim of Input tax credit and the amount of GST debited to Profit and Loss account, are subject to finalization of GST Audit, which is not complete as on the date of signing this Balance Sheet. Due to this reason, the impact on Financial Statements on account of GST credit mismatch cannot be stated.

xi) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Sale of goods: Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, based on the applicable incoterms. Amounts disclosed as revenue are net of returns, trade allowances, rebates, GST, value added taxes and amounts collected on behalf of third parties. The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and the revenue recognition criteria have been complied.

xii) Cash and Cash Equivalents

In the cash flow statement, cash and cash equivalents includes cash on hand and demand deposits with banks.

xiii) Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to

the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

- Fair value of financial assets and financial liabilities

All financial assets and liabilities are carried at amortised cost. The management consider that the carrying amounts of financial assets and liabilities recognized in the financial statements approximate their fair value as on March 31, 2023 and March 31, 2022.

- Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost and trade receivables. For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 18, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses. Further, for the purpose of measuring lifetime expected credit loss ("ECL") allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information.

xiv) Earnings Per Share (EPS)

EPS is calculated by dividing the Profit / (loss) attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Numbers used for calculating basic and diluted earnings per equity share are as stated below:

xv) Segment Reporting

An entity shall report separately information about each operating segment that:

- has been identified as an Operating Segment or results from aggregating two or more of those segments, and

- exceeds the quantitative thresholds as specified in Ind AS 108 - Operating Segments

However, the company does not fall into any of the above stated criteria and hence the company does not qualify as a reportable segment and thus no segment reporting is provided.

xvi) Investments

There are no Investments held by the company as on balance sheet date.

xvii) Related Party Disclosures

As per Indian Accounting Standard-24 issued by the Institute of Chartered Accountants of India, the disclosure of transactions with related parties as defined in the Accounting Standard are given below:

Note No. 21: OTHER NOTES

i) Figures in the brackets are those relating to previous year.

ii) Expenditure in foreign currency during the financial year on account of:

Foreign Traveling Expenses - (Rs. Nil)

iii) Critical accounting judgements and key sources of estimation uncertainties:

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

iv) Trade Payables:

No unpaid amount as on 31.03.2023 to Micro, Small and Medium Enterprises Development Act, 2006. Hence, such information is not disclosed in the financial statements.

v) Additional Regulatory Information Required by Schedule III

a. No proceeding has been initiated or pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

b. The Company has not been declared willful defaulter (in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India) by any bank or financial Institution or other lender.

c. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

d. The Company has not traded or invested in crypto currency or virtual currency during the year.

e. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

(i) 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

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

f. The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 and there is no previously unrecorded income and related assets that are required to be recorded in the books of account during the year.

g. There are no charges or satisfaction yet to be registered with ROC beyond the statutory year.

h. Other information with regards to other matters specified in Schedule III to the Act, is either Nil or not applicable to the Company.

For J H Bhandari & Co. For Eco Hotels and Resorts Limited

Chartered Accountants

FRN: 138960W Vinod Tripathi Vikram Doshi

Executive Chairman CFO

Jinal H. Bhandari DIN: 00798632 DIN: 07546623

Proprietor

M. No.: 158795 Namita Rathore

Place: Mumbai Company Secretary

Date: 29^th May, 2023

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Mar 31, 2014

A. Accounts are not authenticated by the whole time Company Secretary, as required by section 215(1) of the Companies Act, 1956, as the company is facing acute financial crunch no whole time company secretary was available for appointment, for due compliances.

b. CONTINGENT LIABILITIES:

Contingent Liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.

Contingent Liabilities not provided for:-

i) In respect of demand raised by the Central Excise Department amounting to Rs. 1,76,04,797/-, the company preferred an appeal which was won by the company. However, the Central Excise Department, Mumbai has preferred an appeal before the Supreme Court and the case is being protested suitably. The Central Excise department has filed further complaint in this regard before the court of Honorable Chief Judicial Magistrate, at Silvassa.

ii) Recron Synthetics Limited has filed case against the Company before the High Court, Mumbai for a claim of Rs.4,49,38,266/- and interest thereon Rs.2,99,41,821/- and other claims of Rs. 32,,87,546/-. However the same is being suitably defended by the company.

iii) An Appeal Filed by the Company before the commissioner of Central Excise (Appeal) the order on the same has been passed in favour of the Company against demand of Rs. 3,61,537/- (already Paid) plus Rs. 16,32,382/- (already paid) and imposed penalty of Rs. 3,61,537/- and Rs. 1,00,000/- and Interest thereon. However the Excise Department has filed appeal before the CEGAT (case No. 103/adi/2001 ADC dated 31.10.2001). The Case is being defended by the company.

c. As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the disclosure of transactions with related parties as defined in the Accounting Standard are given below.

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Mar 31, 2011

1. NATURE OF SECURITY FOR SECURED LOANS:

A) Working Capital Loan from Central Bank of India.

1) By hypothecation of all the present and future stock of Raw Materials, Stock in process, Finished Goods, Stores & Spares and Book debts of the company.

2) Personal guarantee of Mr. Ravi Dalmia, Mr. Shashi Dalmia, Mr. Aditya Dalmia, Mrs. Anita Dalmia, Mrs. Shardadevi Dalmia, Mrs. Pratibha Dalmia, M/s. Pratik Overseas Corporation, Dalmia Exim Corpn. M/s. Ravi International and Corporate Guaratee from M/s. Dalmia Exim Ltd.

B) Term Loan from Central Bank of India.

Secured by Equitable mortgage and first charged on present and future Fixed Assets situated at 110/111 Govt. Indl. Estate Masat, Silvassa and Sr.No. 218/1/1/ at Dadra Village and Hypothecation of Machinery and other assets acquired or to be acquired by the company.

2. Balance of unsecured loans and sundry debtors, creditors, loans and advances and deposits and bank loans taken /paid and bank balances are subject to confirmation.

3. Sundry Advances include Rs. 14,75,000/- (Rs. 14,75,000/-), paid as deposit to a firm in which directors are interested, for taking premises on rent.

4. Loans and advances includes amount due from associated concern where Directors are interested Rs. 11,35,556/- (Rs. 11,66,721/-).

5. Additional information pursuant to the provision of paragraph 3, 4C & 4D of part II of Schedule VI of the Companies Act, 1956 is applicable and the copy of stock statement is attached.

6 During the year, the company has provided Rs.Nil/-(Rs.Nil /-) in respect of borrowing from Central bank of India. The reasonable quantum and calculation of is taken as certified by the management as the necessary evidence regarding the exact amount isn't in the possession of the management. The company has requested the bank to waive all uncharged / unpaid interest in its proposal for compromise arrangement. The request is pending before the bank for concurrence. The losses during the year are understated to the extent of unprovided interest as borrowings from the bank. However the company has written back interest expenses claimed earlier to the extent of Asst Year 2003-04 amounting to Rs.5.26 Crores as the loss thereof would not be allowed to be carried forward.

7. On 8.4.97 while implementing plans for expansion of the manufacturing facilities the company had an MOU with M/s. Raymond Synthetics Ltd. (RSL) interalia providing terms for supply for uninterrupted raw material. It was also agreed to suitably revise the job charges on revision in cost of power, labour, oil etc. Raymond Synthetics Ltd. (RSL) has failed to fulfill its obligation under the said MOU and reported to have become a sick company under provisions of SIC (SP) ACT. The company is seeking for remedial action against Raymond Synthetics Ltd. (RSL) for losses resulted due to its failure in honoring terms of the MOU.

8. Figures in brackets indicate the figures pertaining to the previous year.

9. Figures are rounded off to the nearest rupee.

10. Figures pertaining to the previous year have been regrouped and rearranged where necessary to make them comparable with figures of the Current Year.

11. No deferred Tax Assets are created in the books of the company as in the opinion of the management, they are not reasonably certain that there will be sufficient future income to recover such Deferred Tax Assets.

12. Expenditure in foreign currency in respect of traveling amounted to Rs. Nil/- (Rs. Nil /-) and Export Commission of Rs. Nil/-(Rs. Nil/-). FOB Value of Exports is Rs. Nil/- (Rs. Nil /-).

13. Unpaid amount due as on 31.03.2011, to MICRO, Small and Medium enterprise suppliers on account of principal amount together with the interest thereon under the Micro, Small and Medium enterprise Development Act, 2006 could not be ascertained by the company in the absence of information relating to the status of the suppliers and has not disclosed in the Financial Statements.

14. No provision has been made in the books of accounts of the Company on account of retirement benefits of the employees, in accordance with the AS-15 issued by the ICAI, as the same is made on cash basis and shall be provided in the books of the company as and when paid.

15. In the opinion of the management AS-17 of segmental reporting is not applicable to the company as the company has only one segment, hence no separate reporting is made.

16. In Compliance with AS-20 Earning per Share issued by the I.C.A.I, the disclosure are as under:

Earning per share - Rs. 11.42/- (Rs.-1.56/-)

Earning per share is calculated on Basis Earning per Share Method i.e. by dividing the net profit for the period attributed to equity shareholders by the weighted average number of equity share outstanding during the period.

17. As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the disclosure of transactions with related parties as defined in the Accounting Standard are given below:

18. Accounts are not authenticated by the whole time Company Secretary, as required by section 215(1) of the Companies Act, 1956, as the company is facing acute financial crunch no whole time company secretary was available for appointment, for due compliances.

19. Central Bank of India has initimated proceedings under SARFAESI Act, 2002 and taken symbolic possession of the plant assets. The company is exploring possibilities of amicable settlement and accordingly submitted proposal for One Time Settlement along with No Lien Deposit of Rs. 43.00 Lac. The OTS proposal is under consideration by bank. The company is contemplating to resume its manufacturing activities therefore, the accounts are prepared assuming "Going Concern" concept.

20. As informed by the management, Central Bank of India exercising powers u/s 13(4) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 has during the year 2007-2008 disposed off collateral security of residential house and office premises owned by guarantors for aggregate consideration of Rs.196.00 lac. However, the bank has not yet provided the details regarding appropriation of sale proceeds from disposal of the guarantor assets. Therefore, the company has not made any accounting entries in respect of these transactions.

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Mar 31, 2008

A) Working Capital Loan from Central Bank of India.

1) By hypothecation of all the present and future stock of Raw Materials, Stock in process, Finished Goods, Stores & Spares and Bookdebts of the company.

2) Personal guarantee of Mr. Ravi Dalmia, Mr. Shashi Dalmia, Mr. Aditya Dalmia, Mrs. Anita Dalmia, Mrs. Shardadevi Dalmia, Mrs. Pratibha Dalmia, M/s. Pratik Overseas Corporation, Dalmia Exim Corpn. M/s. Ravi International and Corporate Guarantee from M/s. Dalmia Exim Ltd.

B) Term Loan from Central Bank of India.

Equitable mortgage and first charged on present and future Fixed Assets situated at 110/111 Govt. Indl. Estate Masat, Silvassa and Sr.No. 218/1/1/ at Dadra Village and Hypothecation of Machinery and other assets acquired or to be acquired by the company.

1. Balance of unsecured loans and sundry debtors, creditors, loans and advances and deposits and bank loans taken /paid are subject to confirmation.

2. The company has made provisions for debts doubtful of recovery Rs. 2,90,77,392/- (Rs.2,90,77,392/-) as the management is not hopeful of recovering the same.

3. Sundry Advances include Rs.14,75,000/- (Rs.14,75,000/-), paid as deposit to a firm in which directors are interested, for taking premises on rent.

4. Loans and advances includes amount due from associated concern where Directors are interested Rs. Nil/- (Rs.10,745/-).

5. Additional information pursuant to the provision of paragraph 3, 4C & 40 of part II of Schedule VI of the Companies Act, 1956 is not applicable as there are no purchase and sales.

6. During the year, the company has provided Rs. Nil/-(Rs. Nil /-) in respect of borrowing from Central bank of India . The reasonable quantum and calculation of is taken as certified by the management as the necessary evidence regarding the exact amount isn't in the possession of the management. The company has requested the bank to waive all uncharged / unpaid interest in its proposal for compromise arrangement . The request is pending before the bank for concurrence . The losses during the year are understand to the extent of un provided interest as borrowings from the bank.

7. On 8.4.97 while implanting plans for expansion of the manufacturing facilities the company had an MOU with M/s. Raymond Synthetics Ltd. (RSL) interalia providing terms for supply for uninterrupted raw material. It was also agreed to suitably revise the job charges on revision in cost of power, labour, oil etc. Raymond Synthetics Ltd. (RSL) has failed to fulfill its obligation under the said MOU and reported to have become a sick company under provisions of SIC (SP) ACT. The company is seeking for remedial action against Raymond Synthetics Ltd. (RSL) for losses resulted due to its failure in honoring terms of the MOU.

8. Figures in brackets indicate the figures pertaining to the previous year.

9. Figures are rounded off to the nearest rupee.

10. Figures pertaining to the previous year have been regrouped and rearranged where necessary to make them comparable with figures of the Current Year.

11. No deferred Tax Assets are created in the books of the company as in the opinion of the management, they are not reasonably certain that there will be sufficient future income to recover such Differed Tax Assets.

12. Expenditure in foreign currency in respect of traveling amounted to Rs. Nil/- (Rs. Nil /-) and Export Commission of Rs.Nil/-(Rs. Nil /-). FOB Value of Exports is Rs.Nil/- (Rs. Nil /-).

13. Unpaid amount due as on 31.03.2008, to MICRO, Small and Medium enterprise suppliers on account of principal amount together with the interest thereon under the Micro, Small and Medium enterprise Development Act,2006 could not be ascertained by the company in the absence of information relating to the status of the suppliers and has not disclosed in the Financial Statements.

14. The BIFR in hearing held on 01.08.2005 have declared the Company as Sick Industrial Company under section 3(l)(o) of the Sick Industrial Companies (Special Provision) Act, 1985. However since Central Bank of India has initiated proceedings under SARFSIA, the reference stands abated.

15. No provision has been made in the books of accounts of the Company on account of retirement benefits of the employees, in accordance with the AS-15 issued by the ICAI, as the same is made on cash basis and shall be provided in the books of the company as and when paid.

16. In the opinion of the management AS-17 of segmental reporting is not applicable to the company as the company has only one segment, hence no separate reporting is made.

17. In Compliance with AS-20 Earning per Share issued by the I.C.A.I, the disclosure are as under:

Earning per share Rs.-2.73/- (Rs.-3.17)

- Earning per share is calculated on Basis Earning per Share Method i.e. by dividing the net loss for the period attribute4 to equity shareholders by the weighted average number of equity share outstanding during the period.

18 Accounts are not authenticated by the whole time Company Secretary, as required by section 215(1) of the Companies Act, 1956, as the company being a sick industrial company facing acute financial crunch no whole time company secretary was available for appointment, for due compliances.

19 The manufacturing activities of the company continue to be closed. The accumulated losses of the company have exceeded its net worth. The Company has made reference to the Board for Industrial and Financial Reconstruction (BIFR) and submitted proposal for rehabilitation. However, Central Bank of India has initiated proceedings under SARFESIA consequently BIFR has passed order for abetment of SICA proceedings. The bank has taken possession of plant assets. Therefore, the company is not a Going concern. The financial statement (and Notes thereto) do not disclose this fact.

20 The management is of view that as per AS-28, impairment loss is required to be recognized, as the present values of assets are lower than the carrying amount of such assets. However, since the assets are in possession of the bank, the company could not ascertain the impairment loss.