Notes to Accounts of Garware Marine Industries Ltd.

Mar 31, 2024

3.7 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event and it is probable that the Company will be required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third
party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the
amount of the receivable can be measured reliably.

3.8 Financial asset

All regular way purchases or sales of financial assets are recognised and de-recognised on a trade date basis.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within
the time frame established by regulation or convention in the market place.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.

3.8.1 Financial assets at Fair Value Through Profit and Loss (FVTPL):

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or
losses arising on re-measurement recognised in profit and loss. The net gain or loss recognised in profit and loss
incorporates any dividend or interest earned on the financial asset and is included in the ''Other Income / Other
expenses'' line item. Dividend on financial assets at FVTPL is recognised when the Company''s right to receive
the dividends is established, it is probable that the economic benefits associated with the dividend will flow to the
entity and the amount of dividend can be measured reliably.

3.8.2 Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets
measured at amortised cost, lease receivables, trade receivables, other contractual rights to receive cash or
other financial asset, and financial guarantees not designated as at FVTPL.

For trade receivables or any contractual rights to receive cash or another financial assets that results from
transactions that are within the scope of Ind AS 115, the Company always measures their allowances at an
amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivable, 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.

3.8.3 Derecognition of financial assets

The Company de-recognises a financial asset when 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 party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership
and continues to control the transferred asset, the Company recognises its retained interest in the asset and an
associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards
of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also
recognises a collateralised borrowing for the proceeds received.

3.9 Financial liabilities:

Financial liabilities are subsequently measured at amortised cost or at FVTPL.

3.9.1 Financial liabilities at FVTPL

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement
recognised in profit and loss. The net gain or loss recognised in profit and loss is included in the ‘Other Income /
Other expenses'' line item.

3.9.2 Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not held for trading and are not designated as at FVTPL are measured at amortised
cost.

3.9.3 Derecognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company''s obligations are discharged,
cancelled or have expired.

3.10 Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company''s accounting policies, which are described in note 3, the Management of the
Company is required to make judgements, estimates and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based
on historical experience and other factors that are considered to be relevant. Actual results may differ from these
estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and future periods.

4 Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended
the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1st, 2022, as
below:

Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable
assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual
Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the
Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the
requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its
financial statements.

Ind AS 16 - Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts
received from selling items produced while the company is preparing the asset for its intended use. Instead, an
entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the
amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.
Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ‘cost of fulfilling'' a contract comprises the ‘costs that relate directly to the
contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples
would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The
amendment is essentially a clarification and the Company does not expect the amendment to have any significant
impact in its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ‘10 percent'' test of Ind AS 109 in
assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any
significant impact in its financial statements.

Ind AS 106 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order
to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how
lease incentives were described in that illustration. The Company does not expect the amendment to have any
significant impact in its financial statements.

18A Defined contribution plans

The Company makes contribution towards provident fund to a defined contribution benefit plan for qualifying
employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the
contribution plan to fund the benefits. The provident fund plan is operated by the Government administrated
Employee Provident Fund Organisation. Eligible employees receive the benefits from the said Provident Fund.
Both the employees and the Company make monthly contributions to the Provident Fund plan equal to specific
percentage of the covered employee''s salary. The Company has no obligations other than this to make the specified
contribution.

18B (A) Defined benefit plans

The Company earmarks liability towards Gratuity and provides for payment under Group Gratuity Scheme
administered by the Life Insurance Corporation of India (LIC).

(a) Characteristics of defined benefit plan

The Company has a defined benefit gratuity plan in India (funded). The company''s defined benefit gratuity
plan is a final salary plan for employees, which requires contributions to be made to a separately administered
fund. The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are
responsible for the administration of the plan assets and for the definition of the investment strategy.

(b) Risks associated with defined benefit plan

Gratuity is a defined benefit plan and company is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G. Sec. Rate will increase the present value of
the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of
the assets liability requiring higher provision. A fall in the discount rate generally increases the mark to market
value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary of the members more than assumed level will increase
the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate
which is determined by reference to market yields at the end of the reporting period on government bonds. If
the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a
relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is
invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only,
plan does not have any longevity risk.

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the
returns to stakeholders. The company does not have any borrowings from Banks, Financial Institutions etc.

26B Financial instruments

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis
on which income & expenses are recognised, in respect of each class of financial asset, financial liability and equity
instrument are as disclosed in note nos. 1 to 4 to financial statements.

26C Financial and liquidity risk management objectives

i) The average payment terms of creditors (trade payables) is 45 days to 90 days. Other financial liabilities are
payable within one year. There are instances of delays.

ii) Trade receivables are unsecured in nature which are receviable in 30 days to 360 days. However there are
instances of delays in this timeline also.

iii) In case of unsecured receivables the company has a credit policy where the provision for debts outstanding is
made based on provision matrix to compute the expected credit loss allowance taking into account historical
experience of customers and the credit limit as determined by the management.

The company has credit policy for its trade receivables. Ongoing credit evaluation is performed on the financial
condition of accounts receivable.

26E The Company has investment in quoted and unquoted shares:

Quoted shares - The company has carried out fair value determination based on closing market rate and recognised
the fair value through OCI.

Unquoted shares - as the entity in which the Company has invested has a negative net worth, the investment has
been impaired on the date of transition.

27 i) The income tax assets (Net) under non current assets represents the advance taxes paid for past years net of

provisions.

ii) The income tax liabilities (Net) under current liabilities represents the income tax liabilities for current and past
years net of advance taxes paid.

28 The activity of the company, viz. providing repair services to ships, is considered as a single segment business.
Further, there is no activity outside India and hence there are no requirement for geographical segment reporting.

29 Other Statutory Information:

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (Ultimate Beneficiaries) or

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

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiaries) or

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

(vii) The Company has no such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with the Companies (Restriction on number of Layers) Rules, 2017.

(ix) The Company has not been declared as a Wilful Defaulter by any bank or financial institution or government
or any government authority.

30 Contingent liabilites and contingent assets

Signaificant & Material Order by any Court
Suit No. 01

As a background, the Company had filed an application for setting aside the Ex parte Decree dated 15.06.2012
passed by the Hon''ble High Court of Madras in the matter of Integrated Finance Company Limited (IFCL). The
Hon''ble Court was pleased to set aside the Exparte Decree by an Order dated 04.04.2017 upon condition of
deposit of Rs 30 lakh with the Court, which the Company has complied with. The Company has thereafter filed its
written statement and also filed an application for dismissal of the suit filed by IFCL on the grounds of limitation and
also whether the Suit could be considered as a “Commercial Suit”.

Prior to deciding on the issue of limitation, the Hon''ble High Court of Madras declined to entertain the disputes
between the parties as a “Commercial Suit” as originally argued by IFCL and passed the order in favour of the
Company. Thereafter, IFCL preferred an appeal against the same order in the Appellate Bench of the Hon''ble High
Court of Madras where they lost once again. IFCL thereafter filed an appeal with the Hon''ble Supreme Court. Upon
hearing the matter, the Hon. Supreme Court decided that the matter was a commercial suit and therefore the further
hearing/s could be conducted at The High Court of Madras. Accordingly, the matter is now listed in the High Court
of Madras, waiting for a date of hearing.

Suit No. 02

The Company has also filed a suit for an amount of Rs. 1.93/- cr. together with interest @ 18% against Integrated
Finance Company Limited (IFCL) for loss of profit.

The order passed by the Appellate Bench of High Court of Madras in their judgement against the appeal filed by
IFCL (as stated above in the second para of Suit No. 01) further stated that since the matter mentioned in Suit No.
02 (the Suit filed by the Company) is interconnected with Suit No. 01 (the Suit filed by IFCL), the suits should by
heard jointly, as “civil suits”.

31 Previous year''s figures have been regrouped / reclassified, to correspond with the current year''s classification /
disclosure.

As per our report of even date attached For and on behalf of the Board

For D. Kothary & Co. A. A. Garware S. V. Atre

Chartered Accountants Chairman Executive Director

Firm Registration No. 105335W DIN: 00019816 DIN: 01893024

Deepak O. Narsaria

Partner V. S. Tandel P. P. Shedge

Membership No. 121190 Chief Financial Officer Company Secretary

UDIN : 24121190BKBOTA1936 A29787

Mumbai, May 24, 2024 Mumbai, May 24, 2024

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Mar 31, 2015

1. As per the information available with the Company, there are no Micro and Medium Enterprises, as defined in the Micro small, Medium Enterprise Development Act 2006 to whom the Company owes on account of principal amount together with the interest and accordingly no additional disclosures have been made.

2. Contingent Liabilities :

The Company has filed a Company Application No.250 of 2014 in the High Court of Judicature at Bombay to seek validation of transfer of 14,99,988 Equity Shares of Global Offshore Services Limited held as investments. The hearing of the matter are yet to commence. Pending disposal of the matter, the Hon'ble High Court vide Order dated 15.12.2014 directed to the Company that "stats quo" should be maintained in respect of Shares.

Integrated Finance Co. Ltd. filed an Application to the Hon'ble High Court of Judicature of Bombay against the Company for non-payment of lease Rental of Rs.1,06,25,329/- (including the interest due as on 31.03.1999). The Company has filed a Counter Suit at Hon'ble High Court of Judicature of Bombay, (now transferred to Chennai) for Rs.1,93,78,667/- together with further interest on the said sum @ 18% p.a. for loss of Income.

Outcome of both the Suits are awaited.

3. In the opinion of the Board, current assets, loans and advances have a value at least equal to the amounts shown in the Balance Sheet, if realized in the ordinary course of business. The provision for all the known liabilities is adequate and not in excess of the amount reasonably necessary.

4. Garware Nylons Limited has gone into liquidation and Bombay High Court has appointed Official Liquidator on 18th December, 1998. No provision for diminution in the value of investment of 42,550 equity shares and an amount of Rs 10,97,791/- recoverable from them is made in the accounts as the process of liquidation is not yet complete.

5. The Company has certified that the Company does not have any related party as per the requirement of accounting standard 18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India.

6. Segment Reporting

The Company is now engaged in only one type of business i.e. Repair of vessels and there are no separate reportable segment as per Accounting Standards AS-17 "Segment Reporting".

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the Year.

7. To adhere to the provisions of section 2 (41) of the Companies Act, 2013 the Company has changed its accounting year. Accordingly, the current period accounts are for a period of 9 months ending 31st March, 2015 as against the previous year ( 12months ) ending 30th June,2014.

8. Previous year's figures have been regrouped / reclassified, to correspond with the current year's classification / disclosure.

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Jun 30, 2014

1. As per the information available with the Company, there are no Micro and Medium Enterprises, as defined in the Micro small, Medium Enterprise Development Act 2006 to whom the Company owes on account of principal amount together with the interest and accordingly no additional disclosures have been made.

2. Contingent Liabilities in respect of :

Guarantees given by Bankers Rs. NIL Lacs. (Previous Year Rs. 0.36 Lacs)

3. In the opinion of the Board, current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realized in the ordinary course of business. The provision for all the known liabilities is adequate and not in excess of the amount reasonably necessary. There are no contingent liabilities other than those stated in Note No.22(1).

4. Reconciliation of Sundry Debtors has been completed in part and the same has been reflected in the Accounts.

5. Garware Nylons Limited has gone into liquidation and Bombay High Court has appointed Official Liquidator on 18th December, 1998. No provision for diminution in the value of investment of 42,550 equity shares and an amount of Rs 10,97,791/- recoverable from them is made in the accounts.

6. The Company has certified that the Company does not have any related party as per the requirement of accounting standard 18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India.

7. Principal Segments

The Company''s operations mainly relate to manufacture of Nylon Fish Knitted Fabrics and providing ship repair services. Accordingly, revenues segmental information set out above.

8. Segmental Capital Employed

Fixed Assets and Liabilities pertain to fishnet division of the Company. Accordingly, no disclosure relating to total segment assets and liabilities have been made.

Note :

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the Year.

10. (a) The Board of Directors had announced a plan to dispose of Company''s Manufacturing Division at Ahmednagar.

The disposal is consistent with the Company''s long term strategy to focus its activities in the areas of port services, maintenance services, and to divest unrelated activities. During the year, the Company completed the sale of land and building at its Ahmednagar Plant as per the agreement for sale executed thereon. Concurrently it has also disposed off part of the Plant and Machinery till the year end. The balance unsold value of Plant and Machinery is recognized as "Assets Held For Sale" Rs. 1,15,26,662/- in the financial statement of which negotiations are in progress.

The Company has recognized capital gain of Rs.3,79,44,152/- before tax on sale of Land & Building and Plant & machinery at Ahmednagar Manufacturing Division.

The Company has recognized Rs. 5,52,72,948/- which has been paid during the year of employees of the manufacturing division on account of Voluntary Retirement Scheme (including Gratuity) offered by the Company.

(b) Profit and Loss account statement for continuing operations and discontinuing operations separately.

11. Previous year''s figures have been regrouped / reclassified, to correspond with the current year''s classification / disclosure.

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Jun 30, 2013

1 Contingent Liabilities in respect of :

Guarantees given by Bankers Rs. 0.36 Lacs. (Previous Year Rs. 0.36 Lacs)

2 In the opinion of the Board, current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realized in the ordinary course of business. The provision for all the known liabilities is adequate and not in excess of the amount reasonably necessary. There are no contingent liabilities other than those stated in Note No.22(1).

3 Reconciliation of Sundry Debtors has been completed in part and the same has been refected in the Accounts.

4 Garware Nylons Limited has gone into liquidation and Bombay High Court has appointed Offcial Liquidator on 18th December, 1998. No provision for diminution in the value of investment of 42,550 equity shares and an amount of Rs. 10,97,791/- recoverable from them is made in the accounts.

5 The Company has certifed that the Company does not have any related party as per the requirement of accounting standard 18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India.

Principal Segments

The Company''s operations mainly relate to manufacture of Nylon Fish Knitted Fabrics and providing ship repair services. Accordingly, revenues segmental information set out above.

Segmental Capital Employed

Fixed Assets and Liabilities pertain to fshnet division of the Company. Accordingly, no disclosure relating to total segment assets and liabilities have been made.

6 Previous year''s fgures have been regrouped / reclassifed, to correspond with the current year''s classifcation / disclosure.

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Jun 30, 2010

1. Contingent Liabilities in respect of :

Guarantees given by Bankers Rs. 0.36 Lacs. (Previous Year Rs. 0.36 Lacs)

2 The Company has also applied for COB Licence for Nylon - Twine with capacity of 220 M.T. Although the installed capacity has been indicated as above most of the machines being common for different constructions and mesh sizes of Fish Knitted Fabrics manufactured by the Company, the installed capacity thus may vary from time to time.

The figures of installed capacity are as certified by a Director and accepted by the Auditors

3. Taxes on Income:-

Provision for deffered tax assets and deffered tax liability are not provided as per AS-22 as the Company has unabsorbed losses.

4. In the opinion of the Board, current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realized in the ordinary course of business. The provision for all the known liabilities is adequate and not in excess of the amount reasonably necessary. There are no contingent liabilities other than those stated in Note No.2.

5. Reconciliation of Sundry Debtors & Sundry Creditors has been completed in part and the same has been reflected in the Accounts.

6. Garware Nylons Limited has gone into liquidation and Bombay High Court has appointed Official Liquidator on 18th December, 1998. No provision for diminution in the value of investment of 42,550 equity shares and an amount of Rs 10,97,791/- recoverable from them is made in the accounts.

7. The Company has certified that the Company does not have any related party as per the requirement of accounting standard 18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India.

8. The amount received on account of conversion of warrants into equity shares allotted by way of Preferential allotment including premium (Rs. 16.76 lacs ) was utilised for the purpose of acquiring new machines.

9. As per the information available with the Company, there are no Micro and Medium Enterprises, as defined in the Micro small, Medium Enterprise Development Act 2006 to whom the Company owes on account of principal amount together with the interest and according no additional disclosures have been made.

Principal Segments

The Companys operations mainly relate to manufacture of Nylon Fishing Nets and providing ship repair services. Accordingly, revenues segmental information set out above.

Segmental Capital Employed

Fixed Assets and Liabilities pertain to fishnet division of the Company. Accordingly, no disclosure relating to total segment assets and liabilities have been made.

Note;

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the Year.

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Dec 31, 2000

1. Contingent Liabilities in respect of :

(a) Guarantees given by Bankers Rs. 8.43 Lacs. (Previous Year Rs. 8.43 Lacs)

(b) The Company has filed appeals before the Sales Tax Authorities against disputed demand of Rs.2,13,388/- related to the period of 1994-95. The Company has paid this demand under protest.

(c) The Sales Tax Authority of Kerala has raised a demand of Rs. 15,48,249/- in the respect of turnover of Fish Knitted Fabrics for the period from 1989-90 to 1991-92. The Companys Appeal against the order of Sales Tax Tribunal is pending before Kerala High Court. In view of the recent notification likely from the Kerala State Government and the Supreme Court judgement.no liability is expected.

(d) Central Excise duty on Fish Net Fabrics - (matter in appeal) Rs.31.72 Lacs. As per legal experts advice, the above amount is not payable.

2. (a) Share Issue Expenses and Commission on Non-Convertible Debentures Incurred has been identified by the Company as being of long term benefit and are being written off over a period of ten and seven years respectively. Accordingly an amount of Rs. 2,49,456/- was written off during the year and the balance of Rs. 11,64,133/- is being carried forward to be charged in future years. (b) Export development expenditure incurred on overseas trade fair and others amortised over 10 years as benefit of such expenditure is expected in future years. Accordingly an amount of Rs. 67,226/- was written off during the year and balance of Rs.1,51,270/- is carried forward to be charged in future years.

3. In the opinion of the Board, current assets, loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realised in the ordinary course of business. The provision for all the known liabilities is adequate and not in excess of the amount reasonably necessary. There are no contingent liabilites other than those stated in Note No.2.

4. Pursuant to Note No.8 forming part of accounts for the year ended 31.12.98, partywise reconciliation of Sundry Debtors and Sundry Creditors was completed by an independent firm of Chartered Accountants. Sundry Debtors are considered good as certified by the Management. Balances of Sundry Debtors and Sundry Creditors reflected in Balance Sheet are as per their respective control account.

5. Garware Nylons Limited has gone into liquidation and Bombay High Court has appointed official Liquidator on 18th December, 1998. No provision for diminution in the value of investment of 42,550 equity shares and an amount of Rs.1,05,87,676/- recoverable from them is made in the accounts.

6. The Principal amount due on Non-Convertible Debentures as claimed by U.T.I, is Rs.18.71 lacs as reflected in the Balance Sheet under secured loans. The Company is in dialogue with U.T.I, for a possible one time settlement / reschedulement. The liability on account of penal interest and liquidated damages cannot be ascertained at this juncture until the accounts are reconciled with them and an agreement for repayament is arrived at.

7. Amount of Rs.47.50 Lacs due to Bank of India Mutual Fund appearing under Unsecured Loans in the Balance Sheet is subject to confirmation. The date of redemption of the Debentures was 31st May,1998. The re-schedulement is not yet finalised as the Company is in dialogue with Bank of India Mutual Fund.

8. The Company has acquired Cylindrical Floats Moulds on lease for fixed primary period of 60 months from I.D.B.I, under Equipment Lease Scheme. Under Lease Agreement dated 05.05.1994 which has expired on 01.05.1999, no provisions has been made in the accounts for lease rentals amounting to Rs.21.39 Lacs and interest on arrears due to I.D.B.I., as the company is in dialogue with I.D.B.I. The same will be accounted for as and when finilised.

9. During the year, the Company has not provided for gratuity liability, estimated at Rs. 7,00,000/- since this is accounted as and when paid.

10. Advances recoverable in cash or kind are subject to confirmation.