Notes to Accounts of Oxford Industries Ltd.

Mar 31, 2024

18. Provisions, Contingent Liabilities and Contingent Assets.

No provision is recognized for any possible obligation that arises from past events and the existence of which will
be confirmed only by that occurrence or non- occurrence of one or more uncertain future events not wholly within
the control of the Company.

Provisions are recognized when the Company has 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
a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material,
provisions are discounted using equivalent period government securities interest rate. Unwinding of the discount is
recognized in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each balance sheet date
and are adjusted to reflect the current best estimate.

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

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 or a reliable estimate of the amount cannot be made.
Information on contingent liability is disclosed in the Notes to the Ind AS financial statements. Contingent assets are
not recognized. However, when the realization of income is virtually certain, then the related asset is no longer a
contingent asset, but it is recognized as an asset.

NOTE NO. 04: OTHER NOTES

a) Previous year figures have been regrouped or rearranged, wherever considered necessary, to conform to current
years'' classification.

b) Contingent Liabilities

(i) The Company, earlier having its plant at Gujarat Industrial Development Corporation (GIDC), Ankleshwar, was
required to contribute towards equity of Bharuch Eco Aqua Infrastructure Ltd. (BEAIL) Ankleshwar, a company
floated by GIDC and GPCB for implementing an effluent treatment and disposal system in GIDC, Ankleshwar.
BEAIL required all member-companies to give a counter guarantee in favour of GIDC for loans sanctioned by
financial institutions to BEAIL and guaranteed by GIDC. This counter-guarantee had been issued by the Company.
However, no liability has been materialized as on 31st March 2024 due to this counter guarantee provided to
GIDC. Necessary steps are being taken by the company for withdrawal of this counter guarantee as it does not
have any plant now in GIDC, Ankleshwar. BEAIL is now known as Narmada Clean Tech Ltd.

(ii) BSE has imposed fines for incomplete / delayed compliances amounting to Rs.46.79 Lakhs (Excluding GST).
The company had made application to BSE for waiver of these fines. BSE vide its email dated 02/01/2024 has
rejected the waiver application of the company. Against this, the company has preferred an appeal before the
hon''ble Securities Appellate Tribunal, Mumbai. Date of Filing of the appeal is 18/03/2024 and lodging number
of the appeal is 137/2024.

c) Impairment of Assets

In opinion of the management, none of the assets of the company are required to be Impaired as on the date of the
balance sheet in accordance with Indian Accounting Standard 36 issued by the Institute of Chartered Accountants
of India on "Impairment of Assets".

d) Secured Loans

The company had completed One Time Settlement (OTS) with all five lenders during 2020-21 and 2021-22 and
received No Dues Certificate from them. ROC charges have also been satisfied. There are no secured loans outstanding
as on 31^st March 2024 from any bank or financial institutions.

Note: Since no managerial remuneration is paid hence no computation is given in the notes.

f) i. Trade Receivables

Trade Receivables outstanding at the beginning of the financial year 2023-24 Rs. 16.13 lakhs, and at the end of the
financial year 2023-24 Rs. 46.41 lakhs. Ageing details and other classifications are given in financial statements.

ii. Loans & Advances

There are no Loans & Advances outstanding in the beginning and at the end of the financial year 2023-24, hence
other classifications are not being given.

g) Current Assets - other details

i) In the opinion of the Board of Directors, all current assets, loans & advances have a value on realisation in
ordinary course of the company''s business, which is at least equal to the amount at which they are stated in
Balance Sheet unless otherwise stated.

ii) Various Debit /Credit balances are subject to confirmation.

h) Export incentives in form of DEPB License Entitlement / Duty Drawback at the end of the year are recognized at
Rs. NIL (Previous Year Rs. NIL)

i) Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable Preference Shares (that were already
converted into equity shares as per the terms) for the year ended on 31-03-2001 Rs. 18.00 lacs, & for the year ended
on 31-03-2002 Rs. 4.09 lacs were not provided for in the books of accounts due to inadequacy of profit or losses.
This position remains the same as on 31.03.2024.

j) During the financial year, the company has capitalized borrowing costs amounting to Rs. NIL (Previous Year Rs. NIL)
attributable to the acquisition or construction of fixed assets.

s) Deferred Tax:

In opinion of the management, given the present state of affairs, it is uncertain whether the operations of the Company
would result in taxable income in the near future. As per the guidelines provided by Indian Accounting Standard
(''Ind AS'') 12 issued by the Institute of Chartered Accountants of India, deferred tax assets should be recognized only
in case that there is a reasonable certainty that sufficient future taxable income will be available against which such
deferred tax assets can be realized. Accordingly, the company has not recognized any Deferred Tax Asset as at 31st
March 2024. There is NIL balance in Deferred Tax Liability and deferred Tax Assets account as on 31st March, 2024.

t) Dues to Micro, Small and Medium Enterprises (MSME):

In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, (''SME Act'') the outstanding
payable to Micro and Small enterprises, as defined under the SME Act, are required to be disclosed in the prescribed
format. However, such Enterprises are required to be registered under the SME Act.

All SME''s in the books of accounts have been identified by the management except for those from whom no response
has been received or no communication could be established. As on 31st March 2024, there are outstanding dues to
SME''s in the books of accounts and the payments have been made within the prescribed time limit of 45 days from
the date of invoice. Hence the provisions of Sec 43B(h) of Income Tax Act, 1961 are not applicable.

y) The company''s objects mainly confined to manufacturing and selling of textile fabrics in India. Hence disclosure
requirements of Indian Accounting Standard 108 on "Operating Segments" issued by the Institute of Chartered
Accountants of India are not applicable to the company.

z) The company had received a letter dt. 18th January, 2019 from BSE stating that in terms of BSE notice dt. 11th
January 2019, the company is required to demonstrate the revival plan of operation within 1 year from the date of
present notice and until then trading in the securities of the company shall continue to remain in Stage VI of GSM
framework. If the company fails to demonstrate revival of operations within the stipulated one year period, then
actions as envisaged in the said notice shall be initiated.

As per para-3 of said BSE notice dt. 11th January, 2019, "Companies which fail to demonstrate revival of their
operations within the stipulated one year period, then trading in the securities of such company shall be suspended,
followed by initiation of compulsory delisting process in accordance with provisions of SEBI (Delisting of Equity
Shares) Regulations, 2009 read with provisions of Securities Contract (Regulation) Act, 1956 and Securities Contracts
(Regulation) Rules, 1957."

The company vide its letter dt.31st January, 2019 had made a detailed representation to BSE requesting to remove
the name of the company from the list of suspected listed shell companies looking to the background and present
position of the company. It has also been stated by the company in this letter that "about revival plan of operations
in the company, we would like to inform you that any decision about operations in the company will be taken only
after amicable settlement of dues is arrived at with Indian Bank Consortium and outcome of ongoing case in DRT,
Mumbai which is at judgement stage."

Thereafter BSE vide its Notice No. 20200114 - 18 dt. 14/01/2020, suspended the securities of the company w.e.f.
15/01/2020 as per provisions at para no. 3 of BSE notice dt. 11/01/2019. The Company again represented its position
to BSE vide its letters dt. 30/01/2020 & 27/07/2020 and requested to keep the suspension on hold but the securities
of the company continue to be suspended on BSE.

The company further represented its position to BSE vide its letter dt. 25/04/2022 that the OTS with all lenders has
been completed and on withdrawal of the DRT case, the Board of Directors will take necessary decision to restart
the operations. The DRT case had been withdrawn by Indian Bank Consortium as approved by DRT-2 Mumbai as
per order dated 18th May 2022.

The company continued its correspondence with BSE from time to time and submitted its Revival / Business Plan
to BSE on 30/01/2023 in response to BSE email dated 23/01/2023.Thereafter BSE vide its letter dated 23/02/2023
ordered Forensic Audit of Books of accounts and other documents of the company. The company has fully cooperated
with the Forensic Auditor as appointed by BSE and has submitted documents/ records/explanations etc as required
by them. The forensic auditor has submitted their report dated 20/06/2023 to BSE and the company has submitted
its response to BSE Ltd on 29/06/2023 as required by them.

The company has revived its operations from last quarter of financial year 2022-23 and the management has been
trying for revocation of suspension of its securities from BSE.

BSE has imposed fines for incomplete / delayed compliances amounting to Rs.46.79 Lakhs (Excluding GST), the
details of which are given in note no 04(b)(ii).

aa) Additional Reporting requirement as per amendment in Schedule III of the Company''s Act 2013 :

i) Details of Benami Property held.

No proceedings have been initiated on or are pending against the company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder.

ii) Title deeds of immovable properties not held in name of the company.

There are no immovable properties which are not held in name of the company. There are no immovable
Properties owned by the company as on 31^st March 2024.

iii) Valuation of Property, Plant & Equipment, intangible asset and investment property.

The Company is not having any property, plant and equipment during the financial year under consideration.
Hence there is no revaluation of property, plant and equipment (including right-of-use assets) or intangible assets
during the current year or previous year.

iv) Borrowings from Banks or Financial institution on the basis of Security of Current Assets.

The company had completed One Time Settlement (OTS) with all five lenders during 2020-21 and 2021-22
and received No Dues certificate from them. ROC charges have also been satisfied. There are no secured loans
outstanding as on 31^st March 2024 from any Bank or Financial Institution.

v) Wilful Defaulter.

The Company has not been declared wilful defaulter by any bank or financial institutions or government or any
government authority.

vi) Relationship with struck off Companies.

The Company has no transactions with the companies struck off under the Companies Act, 2013.

vii) Compliance with approved scheme(s) of arrangements.

The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

viii) Undisclosed Income.

There is no income surrendered or disclosed as income during the current or previous financial year in the tax
assessments under the Income Tax Act 1961, that has not been recorded in the books of account.

ix) Details of crypto currency or virtual currency.

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year

x) Utilisation of Borrowed funds and share premium.

The Company did not have borrowed fund from Banks and Financial Institutions during the financial year 2023-24

xi) Registration of charges or satisfaction with Registrar of Companies

As at March 31,2024, the register of charges of the Company as available in records of the Ministry of Corporate
Affairs (MCA) includes charges that were created/modified since the inception of the Company. There are certain
charges which are historic in nature and it involves practical challenges in obtaining no-objection certificates/
no-dues certificates from the charge holders of such charges, despite repayment of the underlying loans. The
Company is in the continuous process of filing the pending charge satisfaction e-forms with MCA, within the
timelines, as and when it receives no-objection certificates/no-dues certificates from the respective charge holders.

In terms of our report of even date

For R A N K & ASSOCIATES For and on behalf of the Board of Directors of

Chartered Accountants OXFORD INDUSTRIES LIMITED

Firm Registration No.: 105589W CIN: L17112MH1980PLC023572

CA Rahul Parasmal Nahata Mazher N. Laila Huned M. Hararwala

Partner Chairman & Managing Director Director

(Membership. No.: 116511) DIN: 00037046 DIN: 01975058

Place: Mumbai

Date: 30^th April, 2024

UDIN: 24116511BKFBWR9059

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Mar 31, 2014

A) Previous years figures have been regrouped or rearranged, wherever necessary, to conform to current years'' classification.

b) Contingent Liabilities

(Rupees in lacs) Particulars 2013-14 2012-13

i) Claims against the Company not acknowledged as debts. NIL 13.55

ii) Income Tax matter relating to Ass. Year 2006-07 7.75 7.75

iii) VAT appeal relating to year 2008-09 13.87 Nil

iv) The Company, earlier having its plant at Gujarat Industrial Development Corporation (GIDC), Ankleshwar, was required to contribute towards equity of Bharuch Eco Aqua Infrastructure Ltd. (BEAIL), a company floated by GIDC and GPCB for implementing an effluent treatment and disposal system in GIDC, Ankleswar. BEAIL requires all member-companies to give a counter guarantee in favour of GIDC for loans sanctioned by financial institutions to BEAIL and guaranteed by GIDC. This counter-guarantee has been issued by the Company. However, no liability has been materialized as on 31st March 2014 due to this counter guarantee provided to GIDC. The Company will take necessary steps for withdrawal of this counter guarantee as it does not have any plant now in GIDC, Ankleswar.

c) Auction of Manufacturing Facilities of the company under SARFAESI Act, 2002 and Recovery case in DRT.

Indian Bank (Lead Bank) auctioned both the facilities of the company i.e. weaving unit and process house at Ankleshwar, under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) in February, 2012. Further, Indian Bank has filed a case in Debt Recovery Tribunal (DRT) Mumbai for recovery of dues which is going on.

d) Impairment of Assets

In opinion of the management, none of the assets of the company are required to be further Impaired as on the date of the balance sheet in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India on "Impairment of Assets".

e) Secured Loans

The Term Loans & Working Capital Loans from banks were/are secured by:

i. Pari passu first charge on fixed assets situated at Plot No. 5901/2, GIDC, Ankleshwar, Gujarat state, in favour of IDBI and Indian Bank and second charge thereon in favour of Indian Bank Consortium.

ii. Pari passu first charge on fixed assets situated at Plot No. 3608, GIDC, Ankleshwar, Gujarat state, in favour of Indian Bank Consortium and second charge thereon in favour of IDBI and Indian Bank.

iii. Personnel Guarantee of the promoter directors namely Shri Mazher N. Laila, Shri Salim T. Shahpurwala and Shri Shabbbir N. Laila.

iv. Pledge of promoter Director''s shareholding of 629381 shares in Oxford Industries Ltd.

v. Corporate Guarantee of Kachins Textiles Ltd., Panoli, Ankleswar.

vi. Pari passu first charge favouring Consortium Banks on Continuous Bleaching Range (CBR) machine for WCTL/FITL.

vii Hypothecation of inventories including consumable spares and book debts in respect of working capital facilities including WCTL and FITL, which are further secured by pari passu first charge by way of equitable mortgage of all fixed assets at Plot No. 3608, GIDC, Ankleshwar, Gujarat state.

(Note: Indian Bank (Lead Bank) had auctioned both the manufacturing facilities of the company i.e. Weaving unit situated at plot no. 3608 and Process House situated at plot no. 5901/2, at GIDC Ankleshwar in February 2012. Charges relating to point no. (i), (ii) and (vi) above have been satisfied during the year).

f) Interest On Secured Loan

As already reported, Indian Bank (Lead Bank) had exercised its enforcement right under SARFAESI Act, 2002 and auctioned both the facilities of the company i.e. weaving unit and process house at Ankleshwar in February, 2012. Indian Bank has filed a case in Debt Recovery Tribunal(DRT), Mumbai, which is going on. In view of this, Interest on secured loan from consortium of banks for the year of Rs. 589.66 lacs (Previous Year 514.73 lacs) cumulative interest as on 31st March 2014 of Rs. 2171.24 lacs (Previous Year Rs. 1581.58 lacs) has not been charged to revenue.

Note: Due to inadequacy of profits, managerial remuneration is paid as per Schedule XIII read with section 198 and other applicable provisions of the Companies Act, 1956 and hence no computation is given in the note.

i) Current Assets, loans & advances.

i) In the opinion of the Board of Directors, all current assets, loans & advances have a value on realisation in ordinary course of the company''s business, which is at least equal to the amount at which they are stated in Balance Sheet unless otherwise stated.

ii) The court case which was pending before Hon''ble Gujarat High Court, Ahmedabad, against Dakshin Gujarat Vii Company Ltd. (DGVCL) to refund the deposit of Rs.15.95 lacs had been pronounced in favour of the Company. But DGVCL has filed an appeal with Hon''ble Division Bench of Gujarat High Court, Ahemdabad, against this order which is pending.

iii) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and various others Debit/Credit balances including Bankers/Lenders/lnstitutions/Companies are subject to confirmation.

iv) The Company had placed fixed deposits with Oriental Bank of Commerce against L.C. margins. As per intimation received from the Bank, the same shall be apportioned on pro-rata basis between the bank and ARCIL against outstanding liabilities. No information has been received by the company on such apportionment.

j) Export incentives in form of DEPB Licence Entitlement/Duty Drawback at the end of the year are recognized at Rs. Nil ( P.Y. Nil)

k) Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable Preference Shares (that were already converted into equity shares as per the terms) for the year ended on 31-03-2001 Rs.18.00 lacs, & for the year ended on 31-03-2002 Rs.4,09,315 /- were not provided for in the books of accounts due to inadequacy of profit in 2001-02 and losses in 2002-03. This position remains the same as on 31.03.2014.

l) During the year, the company has capitalized borrowing costs amounting to Rs. NIL/- (Previous Year Rs.NIL) attributable to the acquisition or construction of fixed assets.

m) Deferred Tax: The net Loss of the Company (as per the provisions of the Income-tax Act, 1961) for financial years 2007-08, 2008-09, 2009-10 and 2010-11 were 319.60 Lacs, 933.73 Lacs,15.24 Lacs, 64.29 Lacs respectively. Further, in opinion of the management, given the present state of affairs, it is uncertain whether the operations of the Company would result in taxable income in the near future. As per the guidelines provided by Accounting Standard (''AS'') 22 issued by the Institute of Chartered Accountants of India, deferred tax assets should be recognized only in case that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Accordingly, the company has not recognized any Deferred Tax Asset as at 31st March 2014. As a matter of prudence the management has provided for Deferred Tax Liability as on that date.

n) Dues to Micro and Small Enterprises (SME):

In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, (''SME Act'') the outstanding payable to Micro and Small enterprises, as defined under the SME Act, are required to be disclosed in the prescribed format. However, such Enterprises are required to be registered under the SME Act. In the absence of the information about registration of the Enterprises as at 31s1 March 2014, the required information could not be furnished. However, the management is of the opinion that the company has not received any claim for overdue interest from such suppliers during the year.

o) The company''s objects mainly confined to manufacturing and selling of textile fabrics in India. Hence disclosure requirements of Accounting Standard 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable to the company.

---

Mar 31, 2013

A) Previous years figures have been regrouped or rearranged, wherever necessary, to conform to current years'' classification.

b) Auction of Manufacturing Facilities of the company under SARFAESI Act, 2002 and Recovery case in DRT.

Indian Bank (Lead Bank) auctioned both the facilities of the company i.e. weaving unit and process house at Ankleshwar, under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) last year. Further, Indian Bank has filed case in Debt Recovery Tribunal (DRT) Mumbai for recovery of dues.

c) Impairmentof Assets

In opinion of the management, none of the assets of the company are required to be further Impaired as on the date of the balance sheet in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India on "Impairment of Assets".

d) Secured Loans

The Term Loans & Working Capital Loans from banks were / are secured by:

i. Pari passu first charge on fixed assets situated at Plot No. 5901/2, GIDC, Ankleshwar, Gujarat state, in favour of IDBI and Indian Bank and second charge thereon in favour of Indian Bank Consortium.

ii. Pari passu first charge on fixed assets situated at Plot No. 3608, GIDC, Ankleshwar, Gujarat state, in favour of Indian Bank Consortium and second charge thereon in favour of IDBI and Indian Bank.

iii. Personnel Guarantee of the promoter directors namely Shri Mazher N. Laila, Shri SalimT. Shahpurwala and Shri Shabbbir N. Laila.

iv. Pledge of promoter Director''s shareholding of 629381 shares in Oxford Industries Ltd.

v. Corporate Guarantee of Kachins Textiles Ltd., Panoli, Ankleswar.

vi. Pari passu first charge favouring Consortium Banks on Continuous Bleaching Range (CBR) machine for WCTL/FITL.

vii. Hypothecation of inventories including consumable spares and book debts in respect of working capital facilities including WCTL and FITL, which are further secured by pari passu first charge by way of equitable mortgage of all fixed assets at Plot No. 3608, GIDC, Ankleshwar, Gujarat state.

e) Interest On Secured Loan

As already reported, Indian Bank (Lead Bank) had exercised its enforcement right under SARFAESI Act, 2002 and auctioned both the facilities of the company i.e. weaving unit and process house at Ankleshwar last year. Indian Bank has filed a case in Debt Recovery Tribunal, Mumbai. In view of this, Interest on secured loan from consortium of banks for the year of Rs. 514.73 lacs (Previous Year 569.98 lacs) cumulative interest as on 31 st March 2013 of Rs. 1581.58 lacs (Previous Year Rs. 1066.85 lacs) has not been charged to revenue.

i) Current Assets, loans & advances.

i) In the opinion of the Board of Directors, all current assets, loans & advances have a value on realisation in ordinary course of the company''s business, which is at least equal to the amount at which they are stated in Balance Sheet unless otherwise stated.

ii) The court case which was pending before Hon''ble Gujarat High Court, Ahmedabad, against Dakshin Gujarat Vij Company Ltd. (DGVCL) to refund the deposit of Rs.15.95 lacs has been pronounced in favour of the Company. But the Company has come to know that DGVCL has filed an appeal with Hon''ble Division Bench of Gujarat High Court, Ahmedabad, against this order which is pending.

iii) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and various others Debit / Credit balances including Bankers / Lenders are subject to confirmation.

iv) The Company had placed fixed deposits with Oriental Bank of Commerce against L.C. margins. As per intimation received from the Bank, the same shall be apportioned on pro-rata basis between the bank and ARCIL against outstanding liabilities.

f) Export incentives inform of DEPB Licence Entitlement/Duty Drawback at the end of the year are recognized at Rs. Nil ( P.Y. Nil)

g) Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable Preference Shares (that were already converted into equity shares as per the terms) for the year ended on 31-03-2001 Rs.18.00 lacs, & for the year ended on 31-03-2002 Rs.4,09,315/-were not provided for in the books of accounts due to inadequacy of profit in 2001-02 and losses in 2002-03. This position remains the same as on 31.03.2013.

h) Deferred Tax:

The net Loss of the Company (as per the provisions of the Income-tax Act, 1961) for financial years 2006-07, 2007-08, 2008-09, 2009-10 and 2010-11 were 166.33 Lacs, 319.60 Lacs, 933.73 Lacs, 15.24 Lacs and 64.29 lacs respectively. Further, in opinion of the management, given the present state of affairs, it is uncertain whether the operations of the Company would result in taxable income in the near future. As per the guidelines provided by Accounting Standard (''AS'') 22 issued by the Institute of Chartered Accountants of India, deferred tax assets should be recognized only in case that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Accordingly, the company has not recognized any Deferred Tax Asset as at 31 st March 2013. As a matter of prudence the management has provided for Deferred Tax Liability as on that date.

i) Dues to Micro and Small Enterprises (SME):

In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, (''SME Act'') the outstanding payable to Micro and Small enterprises, as defined under the SME Act, are required to be disclosed in the prescribed format. However, such Enterprises are required to be registered under the SME Act. In the absence of the information about registration of the Enterprises as at 31 st March 2013, the required information could not be furnished.

However, the management was of the opinion that the company has not received any claim for overdue interest from such suppliers during the year.

j) The company''s operations mainly confined to manufacturing and selling of textile fabrics in India. Hence disclosure requirements of Accounting Standard 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable to the company.

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Mar 31, 2012

A) Previous years figures have been regrouped or rearranged, wherever necessary, to conform to current years' classification.

b) Contingent Liabilities

(Rupees in lacs)

Particulars 2011-12 2010-11

i) Claims against the Company not acknowledged as debts. NIL 6.00

ii) Income Tax Appeal 7.75 7.75

iii) Court case u/s 138 of The Negotiable Instrument 11.52 11.52 Act, 1881 by BEAIL

iv) The Company, having its plant at Gujarat Industrial Development Corporation (GIDC), Ankleshwar, was required to contribute towards equity of Bharuch Eco Aqua Infrastructure Ltd. (BEAIL), a company floated by GIDC and GPCB for implementing an effluent treatment and disposal system in GIDC, Ankleswar. BEAIL requires all member-companies to give a counter guarantee in favour of GIDC for loans sanctioned by financial institutions to BEAIL and guaranteed by GIDC. This counter-guarantee has been issued by the Company. However, no liability has been materialized as on 31 st March 2012 due to this counter guarantee provided to GIDC.

c) Auction of Manufacturing Facilities of the company under SARFAESI Act, 2002

Indian Bank (Lead Bank) auctioned both the facilities of the company i.e. weaving unit and process house at Ankleshwar, held under its physical possession upto 29th February 2012, under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Indian Bank approved the sale of both units for Rs. 10.12 crores on 7th February 2012 and handed over physical possession to successful bidders on 1 st March 2012. The entire sale proceeds has been appropriated by all the lenders according to ratio decided by them. Further, Indian Bank has filed a case against the company in Debt Recovery Tribunal (DRT) Mumbai for recovery of dues.

d) Impairment of Assets

In opinion of the management, none of the assets of the company are required to be further Impaired as on the date of the balance sheet in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India on "Impairment of Assets".

e) Secured Loans

The Term Loans & Working Capital Loans from banks were/are secured by:

i. Pari passu first charge on fixed assets situated at Plot No. 5901/2, GIDC, Ankleshwar, Gujarat state, in favour of IDBI and Indian Bank and second charge thereon in favour of Indian Bank Consortium.

ii. Pari passu first charge on fixed assets situated at Plot No. 3608, GIDC, Ankleshwar, Gujarat state, in favour of Indian Bank Consortium and second charge thereon in favour of IDBI and Indian Bank.

iii. Personnel Guaranteeofthepromoterdirectors namely Shri Mazher N. Laila, Shri SalimT. Shahpurwala and Shri Shabbbir N. Laila.

iv. Pledge of promoter Director's shareholding of 629381 shares in Oxford Industries Ltd.

v. Corporate Guarantee of Kachins Textiles Ltd., Panoli, Ankleswar.

vi. Pari passu first charge favouring Consortium Banks on Continuous Bleaching Range (CBR) machine for WCTL/FITL.

vii. Hypothecation of inventories including consumable spares and book debts in respect of working capital facilities including WCTL and FITL, which are further secured by pari passu first charge by way of equitable mortgage of all fixed assets at Plot No. 3608, GIDC, Ankleshwar, Gujarat state.

f) Interest On Secured Loan

Indian Bank (Lead Bank) had exercised its enforcement right under the section 13(4) of SARFAESI Act, 2002 and taken physical possession on 18th January 2010 of the secured assets against the outstanding secured loan. Since the secured Assets have been in the possession of Indian Bank (Lead Bank) upto 29th February 2012 and thereafter on auction of the secured assets handed over the possession to successful bidders on 1 st March 2012. Interest on secured loan for the year of Rs. 569.98 lacs (Previous Year 496.87 lacs) cumulative interest as on 31 st March 2012 of Rs. 1066.85 lacs (Previous Year Rs. 496.87 lacs) has not been charged to revenue.

i) Current Assets, loans & advances.

i) In the opinion of the Board of Directors, all current assets, loans & advances have a value on realisation in ordinary course of the company's business, which is at least equal to the amount at which they are stated in Balance Sheet unless otherwise stated.

ii) A court case pending before Hon'ble Gujarat High Court, Ahmedabad, against Dakshin Gujarat Vij Company Ltd. to refund the deposit of Rs.15.95 lacs.

iii) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and various others Debit / Credit balances including Bankers / Lenders are subject to confirmation.

iv) The Company had placed fixed deposits with Oriental Bank of Commerce against L.C. margins. As per intimation received from the Bank, the same shall be apportioned on pro-rata basis between the bank and ARCIL against outstanding liabilities.

g Export incentives in form of DEPB Licence Entitlement/Duty Drawback at the end of the year are recognized at Rs. Nil ( P.Y. Nil)

10 Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable Preference Shares (that were already converted into equity shares as per the terms) for the year ended on 31-03-2001 Rs. 18.00 lacs, & for the year ended on 31-03-2002 Rs.4,09,315 /- were not provided for in the books of accounts due to inadequacy of profit in 2001-02 and losses in 2002-03. This position remains the same as on 31.03.2012.

h During the year, the company has capitalized borrowing costs amounting to Rs. NIL/- (Previous Year Rs.NIL) attributable to the acquisition or construction of fixed assets.

i Quantitative Information

i) As per Annexure -I enclosed (as verified valued and certified by management).

ii) Cost of goods Consumed comprises of value of raw materials consumed and effect of increase/decrease in the value of opening/closing stock of finished goods/work in process.

j Deferred Tax:

The net Loss of the Company (as per the provisions of the Income-tax Act, 1961) for financial years 2006-07, 2007-08,2008-09,2009-10 and 2010-11 were 166.33 Lacs, 319.60 Lacs, 933.73 Lacs, 15.24 Lacs and 64.29 lacs respectively. Further, in opinion of the management, given the present state of affairs, it is uncertain whether the operations of the Company would result in taxable income in the near future. As per the guidelines provided by Accounting Standard ('AS') 22 issued by the Institute of Chartered Accountants of India, deferred tax assets should be recognized only in case that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Accordingly, the company has not recognized any Deferred Tax Asset as at 31 st March 2012. As a matter of prudence the management has provided for Deferred Tax Liability as on that date.

k Dues to Micro and Small Enterprises (SME):

In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, ('SME Act') the outstanding payable to Micro and Small enterprises, as defined under the SME Act, are required to be disclosed in the prescribed format. However, such Enterprises are required to be registered under the SME Act. In the absence of the information about registration of the Enterprises as at 31 st March 2012, the required information could not be furnished.

However, the management was of the opinion that the company has not received any claim for overdue interest from such suppliers during the year.

l Related Party Disclosures

For related party disclosures refertoAnnexure-ll enclosed.

m The company's operations mainly confined to manufacturing and selling of textile fabrics in India. Hence disclosure requirements of Accounting Standard 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable to the company.

---

Mar 31, 2011

1. Previous years figures have been regrouped or rearranged, wherever necessary, to conform to current year's classification.

2. Contingent Liabilities (Rupees in lacs)

Particulars 2010-11 2009-10

i) Claims against the Company not acknowledged as debts. 6.00 6.00

ii) Income Tax appeal 7.75 7.75

iii) Court case u/s 138 of The Negotiable Instruments Act, 1881 by BEAIL 11.52 11.52

iv) The Company, having its plant at Gujarat Industrial Development Corporation (GIDC), Ankleshwar, was required to contribute towards equity of Bharuch Eco Aqua Infrastructure Ltd. (BEAIL), a company floated by GIDC and GPCB for implementing an effluent treatment and disposal system in GIDC, Ankleswar. BEAIL requires all member-companies to give a counter guarantee in favour of GIDC for loans sanctioned by financial institutions to BEAIL and guaranteed by GIDC. This counter-guarantee has been issued by the Company. However, no liability has been materialized as on 31st March 2011 due to this counter guarantee provided to GIDC.

3. Physical Possession of Secured Assets by Lenders under SARFAESI ACT, 2002

Indian Bank (Lead Bank) continues to hold physical possession of all the secured assets of the company at the Weaving Unit and the Process House at Ankleshwar. The Bank has further placed both units of the company under auction for sale.

4. Abatement by Board for Industrial and Financial Restructuring (BIFR)

Reference made to BIFR under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) on 28th February 2008 was abated by BIFR in its last hearing on 17th February 2010 after taking cognizance of the fact that Indian Bank had already taken over physical possession of secured assets of the Company under section 13(4) of SARFAESI Act, 2002.

5. Impairment of Assets

In the opinion of the management, none of the assets of the company are required to be further impaired as on the date of the balance sheet in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India on "Impairment of Assets".

6. Secured Loans

The Term Loans & Working Capital Loans from financial Institution / banks are secured by:

a) Pari passu first charge on fixed assets situated at Plot No. 5901/2, GIDC, Ankleshwar, Gujarat state, in favour of IDBI and Indian Bank and second charge thereon in favour of Indian Bank Consortium.

b) Pari passu first charge on fixed assets situated at Plot No. 3608, GIDC, Ankleshwar, Gujarat state, in favour of Indian Bank Consortium and second charge thereon in favour of IDBI and Indian Bank.

c) Personal Guarantee of the promoter directors namely Shri Mazher N. Laila, Shri. Salim T. Shahpurwala and Shri. Shabbir N. Laila.

d) Pledge of promoter Director's shareholding of 629381 shares in Oxford Industries Ltd.

e) Corporate Guarantee of Kachins Textiles Ltd., Panoli, Ankleshwar.

f) Pari passu first charge favouring Consortium Banks on Continuous Bleaching Range (CBR) machine for WCTL/FITL

g) Hypothecation of inventories including consumable spares and book debts in respect of working capital facilities including WCTL and FITL, which are further secured by pari passu first charge by way of equitable mortgage of all fixed assets at Plot No. 3608, GIDC, Ankleshwar, Gujarat state.

7. Interest On Secured Loans

Indian Bank (Lead Bank) had exercised its enforcement right under the sectionl 3(4) of SARFAESI Act, 2002 and taken physical possession on 18th January 2010 of the secured assets against the outstanding secured loan. Since the secured Assets have been in the possession of Indian Bank (Lead Bank) throughout the year, interest on secured loan amounting of Rs. 4,96, 87, 386/- has not been charged to revenue.

8. Current Assets, loans & advances.

i) In the opinion of the Board of Directors, all current assets, loans & advances have a value on realisation in ordinary course of the company's business, which is at least equal to the amount at which they are stated in Balance Sheet unless otherwise stated.

ii) A court case is pending before Hon'ble Gujarat High Court, Ahmedabad, against Dakshin Gujarat Vij Company Ltd. to refund deposit of Rs.15.95 lacs.

iii) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and various others Debit /Credit balances including bankers/lenders are subject to confirmation.

iv) The Company had pledged fixed deposits with Oriental Bank of Commerce against L. C. margin. As per intimation received from the Bank, the same shall be apportioned on pro rata basis between the bank and ARCIL against outstanding liabilities.

9. Export incentives in form of DEPB Licence Entitlement/Duty Drawback at the end of the year are recognized at Rs. Nil (P.Y. Rs. 12,041/-).

10. Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable Preference Shares (that were already converted into equity shares as per the terms) for the year ended on 31 -03-2001 Rs. 18.00 lacs, & for the year ended on 31 -03-2002 Rs.4,09,315 /- were not provided for in the books of accounts due to inadequacy of profit in 2001 -02 and losses in 2002-03. In view of the loss incurred during the current year this position remains the same as on 31.03.2011.

11. During the year, the company has capitalised borrowing costs amounting to Rs. NIL/- (Previous Year Rs. NIL) attributable to the acquisition or construction of fixed assets.

12. Quantitative Information

i) As per Annexure- I 2009-10 enclosed (as verified valued and certified by management).

ii) Cost of goods Consumed comprises of value of raw materials consumed and effect of increase/ decrease in the value of opening/closing stock of finished goods/work in process.

13. Deferred Tax:

The net Loss of the Company (as per the provisions of the Income-tax Act, 1961) for financial years 2005-06, 2006-07,2007-08,2008-09 & 2009-10 were 87.14 Lacs, 166.33 Lacs, 319.60 Lacs, 933.73 Lacs and 15.24 Lacs respectively. In the current year the Company has reported marginal Cash Profit of Rs. 0.11 lacs (and has a negative taxable income as per the provisions of the Income tax Act, 1961). Further, in opinion of the management, given the present state of affairs, it is uncertain whether the operations of the Company would result in taxable income in the near future. As per the guidelines provided by Accounting Standard ('AS') 22 issued by the Institute of Chartered Accountants of India, deferred tax assets should be recognized only in case that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Accordingly, the Company has not recognized any Deferred Tax Asset as at 31st March 2011. As a matter of prudence the management has provided for Deferred Tax Liability as on that date.

14. Dues to Micro and Small Enterprises (SME):

In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, ('SME Act') the outstanding payable to Micro and Small enterprises, as defined under the SME Act, are required to be disclosed in the prescribed format. However, such Enterprises are required to be registered under the SME Act. In the absence of the information about registration of the Enterprises as at 31st March 2011, the required information could not be furnished.

However, the management was of the opinion that the company has not received any claim for overdue interest from such suppliers during the preceding year.

15. Related Party Disclosures

For related party disclosures refer to Annexure -II enclosed.

16. The company's operations mainly confined to manufacturing and selling of textile fabrics in India. Hence disclosure requirements of Accounting Standard 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable to the company.

RELATED PARTY DISCLOSURE

ANNEXURE - II TO PARA 26 OF SCHEDULE'S' ON NOTES TO ACCOUNTS

As per the Accounting Standard 18, issued by the Institute of Charterd Accountants of India, the disclosure of the transactions with the related parties as defined in the said accounting standards are given below:

I. Relationship

a. Holding Company : Nil

b. Subsidiaries Company : Nil

c. Fellow Subsidiaries : Nil

d. Associated Companies/ Firm : 1. Kachins Textiles Limited

e. Key Managerial Person/Director (s) : 1. Mr. Mazher N. Laila

f. Relatives of 'e' above : 1. Farida M. Laila

---

Mar 31, 2010

1. Previous years figures have been regrouped or rearranged, wherever necessary, to conform to current years classification.

2. Contingent Liabilities (Rupees in lacs)

Particulars 2009-2010 2008-2009

i) Claims against the Company not acknowledged as debts. 6.00 6.00

ii) Contested Labour Court Cases NIL 4.02

iii) Court case u/s 138 of The Negotiable Instruments Act, 1881 by BEAIL 11.52 -

iv) The Company, having its plant at Gujarat Industrial Development Corporation (CIDC), Ankleshwar, was required to contribute towards equity of Bharuch Eco Aqua Infrastructure Ltd. (BEAIL), a company floated by GIDC and GPCB for implementing an effluent treatment and disposal system in GIDC, Ankleswar. BEAIL requires all member-companies to give a counter guarantee in favour of GIDC for loans sanctioned by financial institutions to BEAIL and guaranteed by GIDC. This counter-guarantee has been issued by the Company. However, no liability has been materialized as on 31st March 2010 due to this counter guarantee provided to GIDC.

3. Physical Possession of Secured Assets by Lenders under SARF AESI ACT, 2002

Indian Bank (Lead Bank) had demanded repayment of the entire loan portfolio vide its notice dated 16th October 2008 under section 13(2) of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002(SARFAESI Act, 2002), failing which the Bank exercised its enforcement rights under section 13(4) of SARF AESI Act, 2002 and took over symbolic possession of all the secured assets of the company situated at the Weaving Unit and the Process House on 13th August 2009 and physical possession on 18th January 2010. The Bank has further placed both the units of the company (Weaving Unit and Process House) under auction for sale.

4. Abatement by Board for Industrial and Financial Restructuring (BIFR)

Reference made to BIFR under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) on 28th February 2008 was abated by BIFR in its last hearing on 1 7th February 2010 after taking cognizance of the fact that Indian Bank had already taken over physical possession of secured assets of the Company under section 13(4) of SARFAESI Act, 2002.

5. Impairment of Assets

In the opinion of the management, none of the assets of the company are required to be further impaired as on the date of the balance sheet in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India on "Impairment of Assets".

6. Secured Loans

The Term Loans & Working Capital Loans from financial Institution / banks are secured by:

a) Pari passu first charge on fixed assets situated at Plot No. 5901/2, GIDC, Ankleshwar, Gujarat state, in favour of IDBI and Indian Bank and second charge thereon in favour of Indian Bank Consortium.

b) Pari passu first charge on fixed assets situated at Plot No. 3608, GIDC, Ankleshwar, Gujarat state, in favour of Indian Bank Consortium and second charge thereon in favour of IDBI and Indian Bank.

c) Personal Guarantee of the promoter directors namely Shri Mazher N. Laila, Shri. Salim T. Shahpurwala and Shri. Shabbir N. Laila.

d) Pledge of promoter Directors shareholding of 629381 shares in Oxford Industries Ltd.

e) Corporate Guarantee of Kachins Textiles Ltd., Panoli, Ankleshwar.

f) Pari passu first charge favouring Consortium Banks on Continuous Bleaching Range (CBR) machine for WCTL/FITL.

g) Hypothecation of inventories including consumable spares and book debts in respect of working capital facilities including WCTL and FITL, which are further secured by pari passu first charge by way of equitable mortgage of all fixed assets at Plot No. 3608, GIDC, Ankleshwar, Gujarat state.

7. Current Assets, loans & advances.

i) In the opinion of the Board of Directors, all current assets, loans & advances have a value on realisation in ordinary course of the companys business, which is at least equal to the amount at which they are stated in Balance Sheet unless otherwise stated.

ii) A court case is pending before Honble Gujarat High Court, Ahmedabad, against Dakshin Gujarat Vij Company Ltd. to refund deposit of Rs.15.95 lacs.

iii) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and various others Debit/Credit balances including bankers/lenders are subject to confirmation.

8. Export incentives in form of DEPB Licence Entitlement/Duty Drawback at the end of the year are recognized at Rs.12,041/- (P.Y. Rs. 23,34,399/-) and the same would have a realizable value in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet unless otherwise stated.

9. Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable Preference Shares (that were already converted into equity shares as per the terms) for the year ended on 31-03-2001 Rs.18.00 lacs, &for the year ended on 31-03-2002 Rs.4,09,315 /- were not provided for in the books of accounts due to inadequacy of profit in 2001-02 and losses in 2002-03. In view of the loss incurred during the current year this position remains the same as on 31.03.2010.

10. During the year, the company has capitalised borrowing costs amounting to Rs. NIL/-(Previous Year Rs. NIL) attributable to the acquisition or construction of fixed assets.

11. Deferred Tax:

The net Loss of the Company (as per the provisions of the Income-tax Act, 1961) for financial years 2004-05, 2005-06, 2006-07, 2007-08 & 2008-09 were 628.16 Lacs, 87.14 Lacs, 166.33 Lacs, 319.60 Lacs and 933.73 Lacs respectively. Even in the current year the Company has incurred a Cash Loss (and has a negative taxable income as per the provisions of the Income tax Act, 1961). Further, in opinion of the management, given the present state of affairs, it is uncertain whether the operations of the Company would result in taxable income in the near future. As per the guidelines provided by Accounting Standard (AS) 22 issued by the Institute of Chartered Accountants of India, deferred tax assets should be recognized only in case that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Accordingly, the Company has not recognized any Deferred Tax Asset as at 31st March 2010. As a matter of prudence the management has provided for Deferred Tax Liability as on that date.

12. Dues to Micro and Small Enterprises (SME):

In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, (SME Act) the outstanding payable to Micro and Small enterprises, as defined under the SME Act, are required to be disclosed in the prescribed format. However, such Enterprises are required to be registered under the SME Act. In the absence of the information about registration of the Enterprises as at 31st March 2010, the required information could not be furnished.

However, the management was of the opinion that the company has not received any claim for overdue interest from such suppliers during the preceding reporting period.

13. The companys operations mainly confined to manufacturing and selling of textile fabrics in India. Hence disclosure requirements of Accounting Standard 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable to the company.