Notes to Accounts of GTN Textiles Ltd.

Mar 31, 2024

2.21 Provisions and Contingent Liabilities:

Provisions: Provisions are recognized when there is a present legal or constructive obligation 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. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present
value.These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liabilities:

Contingent liabilities is a possible obligation in the normal course of business 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 or a reliable estimate of the amount cannot be made,
is termed as a contingent liability.

The Company does not recognise a contingent liability but discloses its existence in the financial statements.

2.22 Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit / loss before extraordinary items and tax for
the period is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments. Cash flows from operating, investing and financing activities of the Company
are segregated.

2.23 Cash and Cash equivalents Policy:

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of
three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.

2.24 Earnings per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period. For the purpose of calculating
diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted
average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity
shares.

2.25 Exceptional Items:

When an item of income or expense within profit or loss from ordinary is of such size, nature or incidence that their
disclosure is relevant to explain the performance of the company for the year, the nature and amount of such items
is disclosed as exceptional items.

(i) General Reserve

The general reserve is used from time to time to transfer profit from retained earnings for appropriation purposes.
As the general reserve is created by a transfer from one component of equity to another and is not an item of their
comprehensive income.

(ii) Retained earnings

Retained earnings represents the Company''s undistributed earnings/(losses) after taxes.

(iii) Revaluation surplus

Revaluation surplus represents the surplus over cost against market value on revaluation of freehold land of the
Company pursuant to recognition of freehold land on revaluation model as per the provisions para 29 to 31 of the
Ind AS 16 - Property, Plant and Equipment. This surplus is not considered for distribution of dividend to equity
shareholders.

38 Company''s cotton yarn manufacturing operations from its Aluva, Kerala Plant was permanently stopped wef. 13.6.2022
on account of unsustainable wages, paucity of working capital and steep increase in cotton prices, which resulted
in lower capacity utilisation and making the operations unviable. In view of this, various financial risks (Credit Risk,
Liquidity Risk, Interest Rate Risk, Capital Risk) were not disclosed.

39 The Company has singed a MOU on 08.04.2024 for sale of 24.67 acres of land at Aluva for a sale consideration of Rs 80
Cr. Out of the total 28.13 acres, the buyer would purchase 24.67 acres of land in the first phase and the remaining 3.46
acres also will be purchased by the buyer for the balance sale consideration of Rs 12.00 Cr. Accordingly, the company
has requested the lenders to issue NOC and permit sale of the land and to repay their dues from the sale proceeds,
which is being processed by the Lenders. From the sale proceeds, after paying balance dues to bankers, payment to
trade creditors and other liabilities, the company expects to have surplus funds and intends to carry on outsourcing
of cotton yarn manufacturing / trading in cotton yarn or any other business as permitted in objects clause of the
Memorandum of Association of the company, for better prospects of the company.

40 Company''s cotton yarn manufacturing operations from its Aluva, Kerala Plant was permanently stopped wef. 13.6.2022
on account of unsustainable wages, paucity of working capital and steep increase in cotton prices, which resulted
in lower capacity utilisation and making the operations unviable. In view of this, Deferrred Tax Asset for the current
financial year was not recognized and Deferreed Tax Libaility was re-assessed and reversed the excess provision of Rs
71.88 lac during the Financial year 2023-24.

42 Other Statutory Information

a) All title deeds of immovable property are held in the name of the Company and the Company does not have any
immovable property witihout Title in its name.

b) Since there is no addition / deletion in Capital Work in Progress (CWIP) and Intangible assets during the year and
hence disclosures regarding these items were not made.

c) Disclosure on PPE & Intangible Assets

(1) There is no restriction on the title of Property, Plant and Equipment and Property, which was mortgaged to
Lenders for the credit facilities sanctioned to Company.

(2) Company has not constructed any item in Property, Plant & equipment.

(3) Company has no contractual commitments for the acquisition of Property, Plant & Equipment.

(4) Company has no Impairment loss during the year for Property, Plant & Equipment.

(5) Company has not revalued any items of Property, Plant & Equipments during the Year

(6) Carrying amount of Property, Plant & Equipment are retired from active use and held for disposal.

(7) The existence and carrying amounts of intangible assets whose title is not restricted and the carrying amounts
of intangible assets are not pledged as security for liabilities.

d) Company does not hold any benami property and no proceedings were initiated or pending against the company
under the Benami Transactions (Prohibition) Act, 1988 and Rules thereon.

e) The Company is not a declared wilful defaulter by any bank or financial institution or other lenders.

f) The Company has not entered into any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.

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

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

i) Utilisation of Borrowed funds and share Premium:

A. The Company has not advanced or loaned to 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 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.

B. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding that the Company shall

(i) 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

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

j) There were no transactions relating to previously unrecorded income that have been surrendered and disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961

k) Company shall not be required to comply with Corporate Social Responsibility (CSR) as provisions of section 135
of the Companies Act, 2013 is not applicable.

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

43 Previous year''s figures have been regrouped/reclassified wherever necessary to confirm the current year''s presentation.
Signature to Note 1 to 43

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

For L.U. KRISHNAN & Co. B. K. PATODIA UMANG PATODIA

Chartered Accountants Chairman & Managing Director Director

(ICAI FRN 001527S ) DIN No. 00003516 DIN No. 00003588

Place : Mumbai Place : Kochi

Date : 21^st May 2024 Date : 21^st May 2024

P. K. MANOJ E. K. BALAKRISHNAN ACHUTHAN M

Partner Vice President (Corporate Affairs) & Chief Financial Officer

(M. No. 207550) Company Secretary

Place : Kochi Place : Kochi Place : Kochi

Date : 21^st May 2024 Date : 21^st May 2024 Date : 21^st May 2024

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Mar 31, 2015

1 Working Capital Loans from Banks are secured by first charge by way of hypothecation of current assets,and further secured/to be secured by way of second charge on all immovable assets, both present and future and on all movable assets of the company ( excluding assets purchased on hire purchase basis), ranking pari passu interse,and also guaranteed by Chairman & Managing Director of the Company.

2 Non-fund based limits sanctioned by the bankers are secured by extension of first charge on the current assets of the Company and further secured/to be secured by second charge on the immovable properties of the company, ranking pari passu interse, and personal guarantee of Chairman & Managing Director of the company. Total amount outstanding at the end of the year is Rs.1130 lacs (Previous year Rs.3176.58 lacs).

3 Related Party Disclosures

(a) List of Related parties ( as identified by the management)

Related parties with whom transactions are taken place during the year:

i. Associates:

Patspin India Ltd

ii. Company in which Directors are holding more than 2% of shareholding

GTN Enterprises Ltd

iii. Key Management Personnel:

Shri B.K Patodia - Chairman & Managing Director

iv. Relatives of Key Management Personnel:

1 Smt. Prabha Patodia, Wife of Sri. B.K. Patodia

2 Smt. Mala Patodia, Daughter in Law of Sri. B.K. Patodia

3 Smt. Swati Patodia, Daughter in Law of Sri. B.K. Patodia

4 Kum. Annaya Patodia (Minor), Grand Daughter of Sri. B.K.Patodia

4 a) In the opinion of the management, assets other than fixed assets and non current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

b) The accounts of certain Trade Receivables, Trade Payables, Loans & Advances and Banks are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period's financial statements on such reconciliation/adjustments.

5 In term of Accounting Standard -17, the company operates materially only in one business segment viz., Textile industry and have its production facilities and all other assets located within India. Sales to external customers comprise outside India sales of Rs.9369.99 Lacs ( Previous year Rs.17919.46 lacs) and within India sale of Rs.8848.26 lacs (Previous year Rs.10112.65 Lacs)

6 CONTINGENT LIABILITIES AND COMMITMENTS

A COMMITMENTS

1 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Nil (Previous year Rs.Nil).

2 Outstanding Export Forward Contracts ( not in the nature of derivatives) as on 31st March 2015 which were entered into for hedging exchange risk arising from foreign currency fluctuations related to highly probable future transactions amounting to US$ 18.96 Lacs (Previous year US$ 11.17 Lacs) at average exchange rate of Rs.64.75/US$ (Previous year Rs.64.22/US$) and Euro 1.50 Lacs (Previous year 6.12 Lacs) at an average exchange rate of Rs.81.78/Euro (Previous year Rs.88.52/Euro). The period covered under these contracts spreads over April 2015 to February 2016 (Previous year April 2015 to October 2015). The average exchange rate applicable for above period based on exchange rate on 31.03.2015 works out to Rs.64.41/US$ (Previous year Rs.61.66/US$) and Rs.68.97/Euro (Previous year Rs.83.94/Euro), resulting a notional profit of Rs.25.64 lacs (Previous year notional profit of Rs.56.62 Lacs)

3 Outstanding Import Forward Contracts ( not in the nature of derivatives) as on 31st March 2015 which were entered into for hedging exchange risk arising from foreign currency fluctuations related to highly probable future transactions amounting to US$ Nil Lacs (Previous year US$ 11.36 Lacs) at average exchange rate of Rs.Nil/US$ (Previous year Rs.61.42/US$) . The period covered under these contracts spreads over Nil (Previous year April 2014 to July 2014). The average exchange rate applicable for above period based on exchange rate on 31.03.2015 works out to Rs.Nil/US$ (Previous year Rs.60.84/US$), resulting a notional profit of Rs. Nil lacs (Previous year notional profit of Rs.15.35 Lacs)

B CONTINGENT LIABILITIES

1 Contingent Liabilities and commitments not provided for in respect of:

Disputed amounts of Taxes and Duties and other claims not acknowledged as debts : Rs. Nil (Previous year Rs. Nil.)

2 The company has given corporate Guarantee amounting of Rs.300 Lacs ( Previous year Rs 300 Lacs) to EXIM bank in respect of financial assistance provided by them to PATSPIN INDIA LIMITED under restructured TUF scheme and the outstanding amount of the said loan is Rs.1845 Lacs. ( Previous year Rs. 1198 Lacs)

7 Net loss / Gain on foreign currency transaction and translation

The amount of net profit on foreign currency transaction and translation included in the Other expenses amounts to Rs. 223.32 Lacs (Previous year Rs.430.96 lacs loss). This included gain on account of export Rs.292.34 Lacs (Previous year Rs.27.43 lacs gain), loss on account of import Rs.112.68 lacs ( Previous year Rs.254.61 Lac loss) and gain on account of cancellation of forward contracts Rs.43.65 lacs ( Previous year Rs.203.78 lacs loss)

8 PREVIOUS YEAR'S FIGURES

The previous year's figures have been regrouped/reclassified wherever necessary to conform to the current year's presentation.

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Mar 31, 2014

1 Term Loans are secured by :

(i) Term loans borrowed from Banks and Financial Institution and total outstanding of Rs.3651.52 lacs (Previous year - Rs.4479.82 lacs) are secured by first charge by way of equitable mortgage on all immovable assets both present and future and hypothecation of all the movable assets of the Company (excluding assets purchased on hire purchase basis), subject to prior charges in favour of Banks for working captital, ranking pari pasu interse.

(ii) In the above mentioned Term Loans from certain Banks are further secured by personal guarantee given by Chairman & Managing Director of the Company to the extent of Rs.1242.96 lacs (Previous year end - Rs.1310.01 lacs).

(iii) Loan from Export Import Bank of India outstanding of Rs.295 Lacs ( Previous yearRs.225 Lacs ) is further secured by Corporate guarantee given by Patspin India Limited to the extent of Rs.175 lacs (Previous year Rs.175 Lacs).

(iv) Finance Lease Obligations are relating to vehicles and are secured against respective vehicles hypothecated costing Rs. 21.40 lacs (Previous year end Rs.11.97 lacs).

i Working Capital Loans from Banks are secured by first charge by way of hypothecation of current assets,and further secured/to be secured by way of second charge on all immovable assets, both present and future and on all movable assets of the comapny ( excluding assets purchased on hire purchase basis), ranking pari passu interse,and also guaranteed by Chairman & Managing Director of the Company.

ii Non-fund based limits sanctioned by the bankers are secured by extension of first charge on the current assets of the Company and further secured/to be secured by second charge on the immovable properties of the company, ranking pari passu interse, and personal guarantee of Chairman & Managing Director of the company. Total amount outstanding at the end of the year is Rs.3176.58 lacs (Previous year Rs.2874.63 lacs).

2 a) In the opinion of the management, assets other than fixed assets and non current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

b) The accounts of certain Trade Receivables, Trade Payables, Loans & Advances and Banks are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period''s financial statements on such reconciliation/adjustments.

3 In term of Accounting Standard -17, the company operates materially only in one business segment viz., Textile industry and have its production facilities and all other assets located within India. Sales to external customers comprise outside India sales of Rs. 17919.46 Lacs ( Previous year Rs. 10823.09 lacs) and within India sale of Rs. 10112.65 lacs (Previous year Rs. 9706.80 Lacs).

4 CONTINGENT LIABILITIES AND COMMITMENTS

A COMMITMENTS

1 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Nil (Previous year Rs.Nil).

2 Outstanding Export Forward Contracts ( not in the nature of derivatives) as on 31st March 2014 which were entered into for hedging exchange risk arising from foreign currency fluctuations related to highly probable future transactions amounting to US$ 11.17 Lacs (Previous year US$ 32.64 Lacs) at average exchange rate of Rs. 64.22/US$ (Previous year Rs. 55.64/US$) and Euro 6.12 Lacs (Previous year 3.54 Lacs) at an average exchange rate of Rs. 88.52/Euro (Previous year Rs. 75.11/Euro). The period covered under these contracts spreads over April 2014 to October 2014 (Previous year April 2013 to September 2013). The average exchange rate applicable for above period based on exchange rate on 31.03.2014 works out to Rs. 61.66/US$ (Previous year Rs. 55.49/US$) and Rs. 83.94/Euro (Previous year Rs. 71.25/ Euro), resulting a notional profit of Rs. 56.62 lacs (Previous year notional profit of Rs. 18.73 Lacs).

3 Outstanding Import Forward Contracts ( not in the nature of derivatives) as on 31st March 2014 which were entered into for hedging exchange risk arising from foreign currency fluctuations related to highly probable future transactions amounting to US$ 26.26 Lacs (Previous year US$ 11.36 Lacs) at average exchange rate of Rs. 61.42/US$ (Previous year Rs. 54.75/US$). The period covered under these contracts spreads over April 2014 to July 2014 (Previous year April 2013 to June 2013). The average exchange rate applicable for above period based on exchange rate on 31.03.2014 works out to Rs. 60.84/US$ (Previous year Rs. 55.02/US$), resulting a notional loss of Rs. 15.35 lacs (Previous year notional profit of Rs. 3.15 Lacs).

B CONTINGENT LIABILITIES

1 Contingent Liabilities and commitments not provided for in respect of :

Disputed amounts of Taxes and Duties and other claims not acknowledged as debts : Rs. NIL ( Previous year Rs.Nil).

2 The company has given corporate Guarantee amounting of Rs. 300 Lacs ( Previous year Rs. 300 Lacs) to EXIM bank in respect of financial assistance provided by them to PATSPIN INDIA LIMITED under restructured TUF scheme and the outstanding amount of the said loan is Rs. 1198 Lacs. ( Previous year Rs 1237 Lacs).

5 Net loss / Gain on foreign currency transaction and translation

The amount of net loss on foreign currency transaction and translation included in the Other expenses amounts to Rs. 430.96 Lacs (Previous year Rs. 389.58 lacs loss). This included gain on account of export Rs. 27.43 Lacs (Previous year Rs.189.14 lacs loss), loss on account of import Rs. 254.61 lacs ( Previous year Rs. 210.18 Lac loss) and loss on account of cancellation of forward contracts Rs. 203.78 lacs ( Previous year Rs. 9.74 lacs gain).

6 PREVIOUS YEAR FIGURES

The previous year''s figures have been regrouped/reclassified wherever necessary to conform to the current year''s presentation.

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Mar 31, 2013

1 a) In the opinion of the management, assets other than fixed assets and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

b) The accounts of certain Trade Receivables, Trade Payables, Loans & Advances and Banks are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period''s financial statements on such reconciliation/adjustments.

2 In term of Accounting Standard -17, the company operates materially only in one business segment viz., Textile industry and have its production facilities and all other assets located within India. Sales to external customers comprise outside India sales of Rs.10823.09 Lacs ( Previous year Rs.6402.00 lacs) and within India sale of Rs.9706.80 lacs ( Previous year Rs.7177.11 Lacs)

3 Finance Lease assets and their against loan repayable future payments disclosure required in AS 19.

4 CONTINGENT LIABILITIES AND COMMITMENTS

A COMMITMENTS

1 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Nil (Previous year Rs.Nil).

2 Outstanding Forward Contracts ( not in the nature of derivatives) as on 31st March 2013 which were entered into for hedging exchange risk arising from foreign currency fluctuations related to highly probable future transactions amounting to US$ 32.64 Lacs (Previous year US$34.29 Lacs) at average exchange rate of Rs.55.64/US$ (Previous year Rs.49.31/US$) and Euro 3.54 Lacs (Previous year 4.28 Lacs) at an average exchange rate of Rs.75.11/Euro (Previous year Rs.69.26/Euro). The period covered under these contracts spreads over April 2013 to September 2013 (Previous year April 2012 to March 2013). The average exchange rate applicable for above period based on exchange rate on 31.03.2013 works out to Rs.55.49/US$ (Previous year Rs.52.67/US$) and Rs.71.25/Euro (Previous year Rs.70.37/ Euro), resulting a notional profit of Rs.18.73 lacs (Previous year notional loss of Rs.119.83 Lacs) B CONTINGENT LIABILITIES

1 Contingent Liabilities and commitments not provided for in respect of : Disputed amounts of Taxes and duties and other claims not acknowledged as debts : Rs. NIL (Previous year Rs.Nil.)

2 The company has given corporate Guarantee amounting of Rs.300 Lacs (Previous year Rs 300 Lacs) to EXIM bank in respect of financial assistance provided by them to PATSPIN INDIA LIMITED under restructured TUF scheme and the outstanding amount of the said loan is Rs.1237 Lacs (Previous year Rs 908 Lacs)

5 Net loss / Gain on foreign currency transaction and translation

The amount of net loss on foreign currency transaction and translation included in the Other expenses amounts to Rs.393.60 Lacs ( Previous year Rs.109.27 lacs loss ). This included loss on account of export Rs.193.16 Lacs (Previous year Rs.173.15 lacs loss), loss on account of import Rs.210.18 lacs ( Previous year Rs.77.34 Lac gain) and gain on account of cancellation of forward contracts Rs.9.74 lacs ( Previous year Rs.13.46 lacs loss)

6 PREVIOUS YEAR FIGURES

The previous year''s figures have been regrouped/reclassified wherever necessary to conform to the current year''s presentation.

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Mar 31, 2012

I Term Loan are secured by :

(i) Term loans borrowed from Banks and Financial Institutions and total outstanding of Rs. 4975.57 lacs (Previous year - Rs. 6168.90 lacs) are secured by a first charge by way of equitable mortgage on all immovable assets both present and future and hypothecation of all the movable assets of the Company (excluding assets purchased on hire purchase basis), subject to prior charges in favour of Banks for working captital, ranking pari pasu interse.

(ii) In the above mentioned Term Loans from certain Banks are further secured by personal guarantee given by Chairman & Managing Director of the Company to an extent of Rs. 1318.19 lacs (Previous year Rs. 2054.20 lacs).

(iii) Loan from Export Import Bank outstanding of Rs. 225 Lacs (Previous year Nil) is further secured by Corporate guarantee given by Patspin India Limited to an extent of Rs. 175 lakhs (Previous year Rs. Nil).

(iv) Finance Lease Obligations are relating to vehicles and are secured against respective vehicles hypothecated costing Rs. 17.05 lacs (Previous year Rs. 17.05 lacs).

i Working Capital Loans from Banks are secured by hypothecation of current assets,and further secured/ to be secured by way of second charge on all immovable assets, both present and future and on all movable assets of the comapny (excluding assets purchased on hire purchase basis), ranking pari passu interse,and also guaranteed by Chairman & Managing Director of the Company.

ii Non-fund based limits sanctioned by the bankers are secured by extension of first charge on the current assets of the Company and further secured/to be secured by second charge on the immovable properties of the company and personal guarantee of Chairman & Managing Director of the Company. Total amount outstanding at the end of the year is Rs. 2683.20 lacs (Previous year Rs. 2420.00 lacs).

*Note (a) : Due to Investor's Education and protection Fund under Section 205C of the Companies Act, 1956 will be determined of the respective due dates

1 In the opinion of the Board, all assets other than fixed assets and non current investments have a realisable value in the ordinary course of business which is not less than the amount at which it is stated.

2 In term of Accounting Standard -17, the company operates materially only in one business segment viz., Textile industry and have its production facilities and all other assets located within India. Sales to external customers comprise outside India sales of Rs. 6402.00 Lacs ( Previous year Rs. 8491.21 lacs) and within India sale of Rs. 7188.57 lacs ( Previous year Rs. 6384.09 Lacs)

3 CONTINGENT LIABILITIES AND COMMITMENTS

A COMMITMENTS

1 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. Nil (Previous year Rs. Nil). B CONTINGENT LIABILITIES

1 Contingent Liabilities and commitments not provided for in respect of : Disputed amounts of Taxes and Duties and other claims not acknowledged as debts : Rs. Nil (Previous year Rs. Nil.)

2 The company has given corporate Guarantee amounting of Rs. 300 Lacs (Previous year Nil) to EXIM bank in respect of financial assistance provided by them to PATSPIN INDIA LIMITED under restructured TUF scheme and the outstanding amount of the said loan is Rs. 908 Lacs ( Previous year Nil)

3 Outstanding Forward Contracts ( not in the nature of derivatives) as on 31st March 2012 which were entered into for hedging exchange risk arising from foreign currency fluctuations related to highly probable future transactions amounting to US$ 34.29 Lacs (Previous year US$47.22 Lacs) at average exchange rate of Rs. 49.31/US$ (Previous year Rs..47.41/US$) and Euro 4.28 Lacs (Previous year Euro 1.21 Lacs) at an average exchange rate of Rs.69.26/Euro (Previous year Rs. 63.39/Euro). The period covered under these contracts spreads over April 2012 to March 2013 (Previous year April 2011 to March 2012). The average exchange rate appilcable for above period based on exchange rate on 31.03.2012 works out to Rs. 52.67/US$ (Previous year Rs. 46.26/US$) and Rs. 70.37/Euro (Previous year Rs. 63.91/Euro), resulting a notional loss of Rs. 119.83 lacs (Previous year notional profit of Rs. 53.44 Lacs)

4 Net loss / Gain on foreign currency transaction and translation

The amount of net loss on foreign currency transaction and translation included in the Other expenses amounts to Rs.109.27 lacs (Previous year Rs. 155.34 lacs gain included in Other income). This included loss on account of export Rs.173.15 lacs (Prevoius year Rs. 129.85 lacs gain), gain on account of import Rs. 77.34 lacs (Previous year Rs. 32.67 lacs gain) and loss on account of cancellation of forward contracts Rs. 13.46 lacs (Previous year Rs. 7.18 lacs loss)

5 PREVIOUS YEAR FIGURES

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/regrouped previous year figures to confirm to this year's classification.

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Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account and are not provided for (net of advances): Nil (Previous year Nil).

2. Contingent Liabilities not provided for in respect of disputed demands for taxes, duties and other claims not acknowledged as debts : Nil ( Previous year Nil)

3. (i) The amount of foreign exchange difference(net) included in the Net Profit for the year amounts to Rs. 162.52 lacs gain (Previous year Rs. 12.72 lacs gain). This includes gain on account of export Rs. 129.85 lacs ( previous year Rs. 40.73 lacs loss) and on account of import Rs. 32.67 lacs (Previous year Rs.53.45 lacs gain) as shown in Schedule 18.

(ii) Outstanding Forward Contracts (not in the nature of derivatives) as on 31st March 2011 which were entered into for hedging exchange risk arising from foreign currency fluctuations related to highly probable future transactions amount to US$ 47.22 Lacs (Previous year US$ 44.24 Lacs) at average Exchange Rate of Rs.47.41/US$ (Previous year Rs 47.16/US$) and Euro 1.21 Lacs (Previous year NIL) at an average Exchange rate of Rs.63.39/Euro. The period covered under these contracts spreads over April 2011 to March 2012 (Previous year April, 2010 to March, 2011). The average Exchange Rate applicable for above period based on exchange rate on 31.03.2011 works out to Rs.46.26/US$ (previous year Rs.45.90/US$) and Rs.63.91/Euro, resulting a notional profit of Rs.53.44 Lacs (Previous year notional profit of Rs 55.88 Lacs).

4. In the opinion of the Board, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5. Balance of certain creditors, debtors, loans, advances given and certain non-operative bank accounts are subject to confirmation and reconciliation, if any. However in the opinion of management, there would not be any material impact on financial statements.

6. Interest on others in Schedule 19 is net of interest income of Rs. 22.09 Lacs (Previous year Rs. 12.14 Lacs), Tax Deducted at Source thereon Rs.2.28 Lacs (Previous year Rs. 2.40 Lacs).

7. In terms of Accounting Standard - 17, the Company operates materially only in one business Segment viz., Textile Industry and have its production facilities and all other assets located within India. Sales to external customers comprise outside India sales of Rs.8491.26 Lacs (Previous year Rs. 5834.10 Lacs) and within India sale of Rs.6384.09 Lacs (Previous yearRs. 6200.78 Lacs).

8. Disclosure in respect of Companys interest in Joint Venture in India pursuant to Accounting Standard 27: Financial Reporting of Interest in Joint Ventures:

As at 31.03.2011 As at 31.03.2010

Contingent Liabilities 67.87 338.88

9. Disclosure in respect of related parties pursuant to Accounting Standard 18:

(A) List of related parties:

(As identified by the Management)

Related parties with whom company entered into transactions during the period :

i) JOINT VENTURES

Patspin India Limited

ii) ASSOCIATES

GTN Enterprises Limited

iii) KEY MANAGEMENT PERSONNEL AND ENTERPRISES (HAVING COMMON KEY MANAGEMENT PERSONNEL OR THEIR RELATIVES)

Enterprises/Entities having common Key Management Personnel

Yarn Syndicate Limited

Purav Trading Company.

Key Management Personnel

Shri. Binod Kumar Patodia - Chairman & Managing Director

Relatives of Key Management Personnel

Smt. Prabha Patodia, Wife of Shri B.K Patodia

Smt. Mala Patodia, Daughter In Law of Shri B.K. Patodia

Smt. Swati Patodia, Daughter In Law of Shri. B.K Patodia

Kum. Aanavi Patodia, Grand Daughter of Shri B.K. Patodia

Master. Arnav Patodia, Grand Son of Shri B.K. Patodia

Kum. Annaya Patodia, Grand Daughter of Shri B.K. Patodia

(d) Details of Material Transactions with Related Party

(a) Sale of cotton to Patspin India Limited Rs.1104.61 Lacs (Previous year Rs. 1932.16 Lacs), Sale of yarn to Patspin India Limited Rs.352.69 Lacs (Previous year Rs. 404.82 Lacs), Processing Charges received from Patspin India Limited Rs. 32.64 Lacs (Previous year Rs.28.09 Lacs), Rent received from Patspin India Limited Rs. 1.32 Lacs (Previous year Rs.1.32 Lacs), Sale of store item to Patspin India Limited Rs Nil (Previous year. Rs 0.76 Lacs), Sale of focus market license to Patspin India Limited Rs 7.26 Lacs (Previous year. Nil) Sale of cotton to GTN Enterprises Limited Rs. 279.93 lacs (Previous year Rs. 1101.35 Lacs), Sale of yarn to GTN Enterprises Limited Rs. 387.22 Lacs (Previous year Rs. 329.69 Lacs),Sale of machinery to GTN Enterprises Limited Rs.41.63 Lacs (Previous year Rs. Nil), Sale of store item to GTN Enterprises Limited Rs. Nil (Previous year Rs. 0.78 Lacs), Processing Charges received from GTN Enterprises Limited Rs. 16.74 Lacs (Previous year Rs. 12.63 Lacs), Rent received from GTN Enterprises Limited Rs. 1.20 Lacs (Previous year Rs. 1.20 Lacs), sale of focus market license to GTN Enterprises Limited Rs 2.01 Lacs (Previous year Rs Nil), Sale of yarn to Yarn Syndicate Ltd. Rs. Nil (Previous year Rs 0.51 lacs.) Loans taken from Kum. Anavi Patodia Rs. 2.30 Lacs (Previous year Rs. Nil) and Kum. Annaya Patodia Rs. Nil (Previous year Rs. 4.80 Lacs).

(b) Purchase of cotton from Patspin India Limited Rs. 102.98 Lacs (Previous year Rs. 1585.21 Lacs) Purchase of yarn from Patspin India Limited Rs. 383.86 Lacs (Previous year Rs. 668.55 Lacs), Processing Charges paid to Patspin India Limited Rs. 80.36 Lacs (Previous year Rs. 4.47 Lacs), Rent paid to Patspin India Limited Rs. 2.15 Lacs (Previous year Rs. Nil), Purchase of cotton from GTN Enterprises Limited Rs. 280.15 Lacs (Previous year Rs. 494.31 Lacs), Purchase of yarn from GTN Enterprises Limited Rs. 579.98 Lacs (Previous year Rs. 311.48 Lacs), Process charges paid to GTN Enterprises Limited Rs. 109.13 Lacs (Previous year Rs.119.88 Lacs), Commission paid to Purav Trading Co. Rs. Nil (Previous year Rs 3.26 Lacs) and rent paid to Mrs.Prabha Patodia Rs. 1.80 Lacs (Previous year Rs. 1.80 Lacs), Mrs.Swati Patodia Rs. 0.90 Lacs (Previous year Rs.0.88 Lacs) and Mrs. Mala Patodia Rs. 0.90 Lacs ( Previous year Rs. 0.92 lacs) Interest paid to Kum. Anavi Patodia Rs. 0.14 Lacs (Previous year Rs. 0.32 Lacs), Master Arnav Patodia Rs. 0.17 Lacs (Previous year Rs. 0.17 Lacs) and Kum. Annaya Patodia Rs. 0.36 Lacs (Previous year Rs. 0.45 Lacs) Loans repaid to Kum. Anavi Patodia Rs. 5.20 Lacs (Previous year Rs Nil), Master Arnav Patodia Rs. 1.50 Lacs (Previous year Rs. Nil.) and Kum. Annaya Patodia Rs. Nil (Previous year Rs 4.80

9. Previous year figures have been regrouped and rearranged wherever necessary so as to make them comparable with those of the current year.

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Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and are not provided for (net of advances) Rs.Nil Lacs (Previous year Rs.Nil Lacs ).

2. Contingent Liabilities not provided for in respect of disputed demands for taxes, duties and other claims not acknowledged as debts :

(i) Corporate guarantee given by the company to a bank in respect of short term loan borrowed by Patspin India Limited – Rs. Nil ( Previous year- Rs.650.00 Lac) and the loan outstanding at the year end is Rs.Nil (Previous year – Rs.650.00 Lac)

3. (i) The amount of foreign exchange difference(net) included in the Net Loss for the year amounts to Rs. 12.72 lacs credit (Previous year Rs. 315.53 lacs debit). This includes loss on account of export Rs. 40.73 Lac (previous year Rs. 583.54 Lacs - Loss) and gain on account of import Rs.53.45 Lac (Previous year Rs. 268 Lacs - Gain) as shown in Schedule 18.

(ii) Foreign exchange difference (Net) adjusted to the cost of respective fxed assets Rs. 3.83 lacs - Loss (Previous year Rs. 32.77 Lacs - Gain)

(iii) Outstanding Forward Contracts (not in the nature of derivatives) as on 31st March 2010 which were entered into for hedging exchange risk arising from foreign currency fuctuations related to highly probable future transactions amount to US$ 44.24 lacs (Previous year US$ 64.41 lacs)at average Exchange Rate of Rs.47.16/US$ (Previous year Rs 45.56/US$). The period covered under these contracts spreads over April 2010 to March 2011(Previous year April,2009 to January,2010). The average Exchange Rate applicable for above period based on exchange rate on 31.03.2010 works out to Rs.45.90/US$,(previous year Rs 51.57/US$) resulting a notional proft of Rs.55.88 lacs(Previous year notional loss of Rs 386.33 Lacs).

4. Stock of Raw Materials costing Rs. 44.43 lacs as referred to in Schedule 14 and Finished Goods valued at Rs. 148.01 lacs as referred to in Schedule 13 forming part of Proft & loss Account represents the Cost of Inventory damaged on account of Fire. Damaged inventory is covered under Insurance and the Management is certain that the insurance claim will realize the value of such Raw Materials at Replacement cost and such fnished goods at Realizable value. Considering prudence and certainty of realization, the Insurance claim is measured and recognized only to the extent of Cost of Goods Damaged, and shown as "Other Operating Income" in Schedule 11 forming part of Proft & loss Account. The amount of such damaged stock totaling to Rs. 192.44 lacs is shown under "Other Expenses" in Schedule 18 forming part of Proft & Loss Account.

5. In the opinion of the Board, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

6. Balance of certain creditors, debtors, loans, advances given and certain non-operative bank accounts are subject to confrmation and reconciliation, if any. However in the opinion of management, there would not be any material impact on fnancial statements.

7. Based on information available with the Company regarding the status of suppliers, defned under Micro, Small and Medium Enterprises Development Act, 2006 and payments to them as specifed under the notifcation GSR 719 (E) dated 16th November, 2007 are as follows:

8. Interest on others in Schedule 19 is net of interest income of Rs.12.14 Lacs (Previous year Rs. 26.79 Lacs), Tax Deducted at Source thereon Rs.2.40 Lacs (Previous year Rs. 4.09 Lacs).

9. Considering the strategic and long term nature of the investments and asset base of the investee company, in the opinion of the management, the decline in the market value of certain quoted investments is of temporary nature and requires no provisioning.

10. In terms of Accounting Standard - 17, the Company operates materially only in one business Segment viz., cotton yarn and have its production facilities and all other assets located in India. Sales to external customers comprise exports sales of Rs.5834.10 Lacs (Previous year Rs. 6653.16 Lacs) and domestic sale of Rs.6200.78 Lacs (Previous year Rs. 2302.28 Lacs).

11. Disclosure in respect of related parties pursuant to Accounting Standard 18:

(A) List of related parties:

(As identifed by the Management)

Related parties with whom company entered into transactions during the period :

i) JOINT VENTURES

Patspin India Limited ii) ASSOCIATES

GTN Enterprises Limited

iii) KEY MANAGEMENT PERSONNEL AND ENTERPRISES (HAVING COMMON KEY MANAGEMENT PERSONNEL OR THEIR RELATIVES)

Key Management Personnel

Shri. B.K. Patodia- Chairman & Managing Director

Enterprises/Entities having common Key Management Personnel

Beekaypee Credit (P) Limited

Patodia Exports & Investments (P) Limited

Umang Finance Pvt. Ltd.

Yarn Syndicate Limited.

Relatives of Key Management Personnel

Shri. Umang Patodia, Son of Shri B.K. Patodia

Shri. Ankur Patodia, Son of Shri B.K. Patodia

Smt. Prabha Patodia, Wife of Shri B.K. Patodia

Smt. Mala Patodia, Wife of Shri Umang Patodia

Smt. Swati Patodia, Wife of Shri Ankur Patodia

Kum. Aanavi Patodia, Daughter of Shri Umang Patodia

Mast. Arnav Patodia, Son of Shri Umang Patodia

Kum. Annaya Patodia, Daughter of Shri Ankur Patodia

(d) Details of Material Transactions with Related Party

(a) Sale of cotton to Patspin India Limited Rs. 1932.16 lacs (Previous year Rs.533.63 Lacs), Sale of yarn to Patspin India Limited Rs.404.82 lacs (Previous year Rs.375.90 Lacs), Processing Charges received from Patspin India Limited Rs.28.09 Lacs (Previous year Rs.13.12 Lacs), Rent received from Patspin India Limited Rs.1.32 Lacs (Previous year Rs.1.32 Lacs), Sale of machinery to Patspin India Limited Rs.Nil (Previous year Rs.40.10 Lacs), Sale of store item to Patspin India Limited Rs. 0. 76 Lacs (Previous year Nil), Sale of cotton to GTN Enterprises Limited Rs.1101.35 (Previous year Rs. 159.60 Lacs), Sale of yarn to GTN Enterprises Limited Rs.329.69 Lacs(Previous year Rs. 366.11 Lacs),Sale of machinery to GTN Enterprises Limited Nil (Previous year Rs. 1.12 lacs), Sale of store item to GTN Enterprises Limited Rs. 0.78 Lacs (Previous year Rs.3.42 Lacs),Processing Charges received from GTN Enterprises Limited Rs.12.63 Lacs (Previous year Rs. 87.03 Lacs), Rent received from GTN Enterprises Limited Rs.1.20 Lacs (Previous year Rs.1.20 Lacs) and Sale of yarn to Yarn Syndicate Ltd. Rs.0.51 Lac ( Previous year Nil. )

(b) Purchase of cotton from Patspin India Limited Rs.1585.21 Lacs (Previous year Nil), Purchase of yarn from Patspin India Limited Rs.668.55 Lacs (Previous year Rs.470.64 Lacs), Purchase of store item from Patspin India Limited Nil (Previous year Rs.0.21 Lacs), Processing Charges paid to Patspin India Limited Rs.4.47 Lacs (Previous year Rs.29.24 Lacs), Purchase of cotton from GTN Enterprises Limited Rs.494.31 Lacs (Previous year Rs.465.29 Lacs), Purchase of yarn from GTN Enterprises Limited Rs.311.48 Lacs (Previous year Rs. 289.29 Lacs),Process charges paid to GTN Enterprises Limited Rs.119.88 Lacs (Previous year Rs. 140.70 Lacs), Purchases of stores items from GTN Enterprises Limited Nil (Previous year Rs. 1.38 Lac), Commission paid to Purav Trading Co. Rs.3.26 Lac (Previous year Nil) and rent paid to Mrs.Prabha Patodia Rs. 1.80 Lacs (Previous year Rs.0.80 Lacs), Shri. Umang Patodia Rs. Nil (Previous year Rs. 0.50 Lac),Shri. Ankur Patodia Rs. Nil (Previous year Rs 0.50 lac) Mrs.Swati Patodia Rs. 0.88 Lac ( Previous year Nil) and Mrs. Mala Patodia Rs. 0.92 Lac (Previous year Nil)

(c) Corporate Guarantee given to Patspin India Ltd Nil (previous year Rs 650 Lacs) 18. Additional information pursuant to the provisions of Schedule VI of the Companies Act,1956

b) As no commission is being paid to the Chairman & Managing Director, computation under Section 198/349 of the Companies Act has not been disclosed

18. Previous year fgures have been regrouped and rearranged wherever necessary so as to make them comparable with those of the current year.