Notes to Accounts of Prag Bosimi Synthetics Ltd.

Mar 31, 2024

9.1.7 Terms / rights attached to equity shares

The company has only one Class of Equity Shares having a par value of '' 10/- per share. Each Holder of Equity Share is entitled to one vote per share. The shareholders are entitled to dividend in the proportion of their shareholding. In the event of of Liquidation of the company the Holders of Equity Shares will be entitled to receive remaining assets of the Company, after payment of all external liabilities. The Distribution will be in proportionate to the number of Equity Shares.

Explanation for change in the ratio by more than 25% as compared to the preceding year as follows:
a) Current Ratio	As the Working Capital of the company has reduced as compared to the previous year, the Current Ratio of the company has improved.
b) Debt-Equity Ratio	The total Debts of the company has decreased as compared to Previous year and Shareholders equity has been reduced due to Loss of Current Year and therefore impact on the ratio.
c) Return on Equity Ratio	Net Profit after taxes (Loss in case of the company) has decreased as compared to Previous Year, and therefore impact on the ratio.
d) Inventory Turnover Ratio	As Net Sales of the company for current year are less as compared to the Previous Year, also the Sales of current year is made from Opening Inventory, and therefore the Inventory Turnover ratio has reduced resulting in impact as compared to previous year.
e) Trade Receivables Turnover Ratio	As Net Sales of the company for current year are less as compared to the Previous Year, the Trade Receivables Turnover ratio has reduced resulting in impact as compared to previous year.
f) Net Capital Turnover Ratio	As Net Sales of the company for current year are less as compared to the Previous Year, the Net Capital Turnover ratio has reduced resulting in impact as compared to previous year.
g) Net Profit Ratio	The Total Revenue of the company has reduced as compared to the previous year resulting in variation in the Net Loss Ratio.

20.3 The Company has Capital Work in Progress of '' 11,850/- (Rupees in thousands) as on March 31,2024 [Previous Year '' 11,850/-]. The Value is represented by items such as Plant and Machinery, Equipments, Building which were planned for erection of Line No. 1 (Conti Ploy) Spinning Line. The progress and work of the erection of the above Capital Asset is delayed due to unavoidable circumstances beyond the control of the Management. The Delay was caused on account of Covid-19 Lockdown followed by suspension of ELectricity by the Assam State Electricity Board and Workers union strike. The management is in process to restart the Erection in consultation with the project manager. The Erection of the Spinning Line is planned to be completed either by own funds or by a Joint Venture with third Party by the Management.

23 The Company in the Financial Year 2018 - 2019 had received an order from Company Law Board Kolkata Bench for transferring of 30,00,000 Preference Shares in the Name of 3A Capital Services Limited. The Hon’ble National Company Law Appellate Tribunal (NCLAT) Principal Bench, New Delhi has passed an order dated May 16, 2024 (“Order”), setting aside CA (AT) No. 133 of 2022 filed by 3A Capital is hereby dismissed though without any order as to costs. The earlier order passed by the National Company Law Tribunal, Guwahati Bench, Guwahati, in the matter of 3A Capital Private Limited whereby the Company was directed to pay sum of '' 5,79,97,128/- along with a penalty of '' 5,00,000 to MCA within 45 days from the order is now set aside by the NCLAT.

24 Contingent Liability not Provided for in the Financial Statements:	(Rupees in Thousands)
Particulars	As on March 31, 2024	As on March 31, 2023
Claims against the Group not acknowledged as debts	249,781	333,703
Letter of undertaking executed in favor of Joint Director General of foreign trade under Duty Exemption Entitlement Scheme (Advance License Scheme) for custom duty	13,041	13,041
Letters of credit and Bank Guarantees given by bankers on behalf of the Company.	5,250	5,250
PF Demand Notices Against the Damages	2,949	-
Guwahati Workers Liability	200	-
LIC Interest on Late Payment of Rent	20,080	-
Assistant Commissioner of Sales Tax, Guwahati	2,030	-
Deputy Commissioner of Central Excise, Tezpur	3,117	-
	296,448	351,994

25 The Board is contemplating taking steps for recovering the calls-in-arrears from defaulting applicants, including forfeiture of the shares as a last resort after exhausting all other avenues for recovery in a spirit of maintaining shareholder friendly environment. The Board therefore considers it prudent not to provide for the interest on calls-in-arrears.

26 In the opinion of the Board of Directors, in the ordinary course of business the value on realization of current assets, loans and

advances, including security Deposits are at least equal to the amount at which they are stated in the Balance Sheet.

27 Amounts appearing in Trade Receivables & Payables are realized and paid as on date of signing. Balances of Banks, Sundry

Debtors, Sundry Creditors, Loans & Advance, and Deposits are subject to confirmation.

28 Prag Bosimi Synthetics Limited (Holding Company) has two subsidiary companies i.e. Prag Bosimi Texurising Private Limited and Prag Bosimi Packaging Private Limited which are non-operating and non-revenue generating. Therefore, operating expenditure’s incurred by the companies are absorbed by the holding Company. The same is authorized by the Board Resolution dated: 14/08/2014.

29 The production activities of the company was stopped from 23rd March 2020, with the National Lockdown which was declared due to COVID-19 Pandemic. With the said closure, the company suffered heavy financial losses leading to severe liquidity crunch because of non realisation of debtors or movement of stock. Such liquidity crunch lead to worker’s agitation which eventually resulted in Union Strike by the Workers Union. This led to blockage of the main gate of the Factory, unabling the management to restart timely production work. Further, due to Natural Calamities the Electricity supply of the company was destroyed resulting complete stopage of Electricity to the company. Even after destruction the company was burdened with heavy electricity dues by the Assam Power and Distribution Company Limited which eventually led to disconection of power supply due to Non Payment of Dues. In the meantime Covid-19 had struck a heavy blow to the company in the form of death of its founder Managing Director, Shri. Hemant B. Vyas along with a number of Senior Executives. Besides the deaths almost all of the Top Management suffered from it. However the company kept up with the challenges. The company had managed to make settlement with its workers and have paid all their debts and realeased them under the Golden Handshake Scheme in which Hon,ble Minister of Industries & Commerce, Government of Assam was a signatory along with the Local Member of Legislative Assembly (MLA) and Assam Industrial Development Corporation. On settlement with the workers the company started selling off its finished stock. The Board of Directors also approved Selling off its Old, Unused Plant, Property and Equipment which coud generate funds. Now that the initial problems are resolved the company had already approached Assam Power Distribution Company Limited for

reconciliation and reconnection of power. Once the power is reconnected, the company would take steps for refurbishing its 132 KV substation and maintenance of its plant and machinery, The company is also planning the optimal manpower required for phase wise restarting and the recruitment process of the same.

30 Disclosure under IND AS - 108 - Segment Report: Operating Segments:

• Packaging - Corrugated Box

• Garment - Readymade Garments

• Knitted Fabrics - Knitted Fabrics

• Others - Fabrics, Yarn and Others

The chief operational decision maker (CODM) monitors the operating results of its business for the purpose of making decisions about resource allocation and performance assessment. Operating segments have been identified on the basis of the nature of products. Revenue and Expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reporting segment have been allocated on the basis of associated revenue of the segment. All other expenses which are not attributable or allocable to segments have been disclosed as un-allocable expenses. Assets & Liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets & Liabilities are disclosed as un-allocable.

31 The Company has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of these standalone financial statements including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of these financial statements, used internal and external sources of information including credit reports and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of COVID-19 on the Company’s financial statements may differ from that estimated as at the date of approval of these financial statements.

33 Previous Year’s figures are regrouped / reclassified / rearranged wherever necessary, to confirm to this year’s classification.

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Mar 31, 2015

I) Contingent liabilities not provided for:

Sr. Particulars As At As At No. 31st March, 30th September, 2015 2013

a) Counter Guarantees for Sales tax 5,000 5,000

b) Claims against the Group not acknowledged as debts 321,594,000 64,243,000

c) Letter of undertaking executed in favour of Joint Director General of foreign trade under Duty Exemption Entitlement Scheme (Advance License Scheme) for custom duty 13,040,682 13,040,682

d) Letters of credit and Bank Guarantees given by bankers on behalf of the Company. 5,250,000 5,250,000

Contingent liabilities are considered only when converted into demands.

ii. The Board is contemplating taking steps for recovering the calls-in-arrears from defaulting applicants, including forfeiture of the shares as a last resort after exhausting all other avenues for recovery in a spirit of maintaining shareholder friendly environment. The Board therefore considers it prudent not to provide for the interest on calls-in-arrears.

iii. Estimated amount of contracts remaining to be executed on capital account net of advances is Rs. Nil (Previous Year Rs. Nil).

iv. During the period the company has paid 10% share application money of Rs. 49,906 to Prag Jyoti Tetile Park Pvt Ltd which is grouped under Current Assets.

v. Loans and Advances include Rs. 77,66,880 (Previous Year Rs. 77,28,700/- ) overdue from various parties on account of accommodation deposits, security deposits, advances given to suppliers, ex-employees, etc. Compensation for delayed payment, if any, will be accounted in the books of account, if and when realized. No provision is made since the Company has recovered part of the amount and is hopeful of recovering the balance amount.

vi. There is no amount overdue and remaining unpaid to small scale/or ancillary Industrial Suppliers on principal and/or interest as at the close of the period.

vii. Previous Period's figures have been regrouped/ reclassified/rearranged wherever necessary.

viii. In the opinion of the Board of Directors, in the ordinary course of business the value on realization of current assets, loans and advances, including security Deposits are at least equal to the amount at which they are stated in the Balance Sheet.

ix. Amounts appearing in Trade Receivables & Payables are realized and paid as on date of signing. Balances of Banks, Sundry Debtors, Sundry Creditors, Loans & Advance, and Deposits are subject to confirmation.

xi. The AS-17 "Segment Reporting" is not applicable as the Company has operated only in one segment i.e. manufacturing of Yarn.

xii. AS-18 Related Party Information:

Pursuant to AS-18 information on remuneration paid to Key Management Personnel is given in the report on Corporate Governance under the heading " Remuneration to Directors" for Shri. Hemant B.Vyas - Managing Director and Shri S. K. Saha - Finance Director.

xiii. During the period, the company has entered into One Time Settlement (OTS) with Standard Chartered Bank (SCB) in respect of their dues of holding 8% Optionally Cumulative Convertible Debentures (OCCD) worth Rs. 11.34 Crores, Unsecured Loan of Rs. 2.9 Crores and Interest Accrued, due and provided of Rs. 3.41 Crores upto 31.03.2015. As per the terms of OTS; Standard Chartered Bank is paid Rs. 2.26 Crores towards total dues of 8% OCCD holding, Rs. 0.25 crores towards Unsecured Loans and Interest Accrued and Due is totally waived. Therefore, the remaining balance in OCCD of Rs. 9.08 Crores, Rs. 1.84 Crores in Unsecured Loans of SCB and Interest Accrued and Due of Rs. 3.41 Crores being non payable to SCB are transferred to General Reserve as per legal advice.

xiv. Salary, Wages and other dues in respect of workers at Guwahati factory who had not attended to the work and for such workers total Salary, Wages of Rs. 81,16,327 and other dues of Rs. 4,23,678 for the period October, 2013 to March 2014 were provided in the accounts. As per legal and experts opinion, provision is not required and hence the same is written back as per the legal advice and expert's opinion.

xv. Prag Bosimi Synthetics Ltd (Holding Company) has two subsidiaries viz Prag Bosimi Texturising Pvt. Ltd. and Prag Bosimi Packaging Pvt. Ltd. Both these companies are non operating and non revenue generating. Therefore certain operating expenditure incurred by the company are absorbed by the holding Company. Accordingly such expenses incurred during the period are absorbed.

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Sep 30, 2013

(A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

The Company follows the accrual system of accounting and recognizes Income and Expenditure on accrual basis.

Accounting policies not referred to otherwise are consistent with the Generally Accepted Accounting Principles.

(i) Contingent liabilities not provided for:

Sr. Particulars As At As At No. 30th September, 31st March, 2013 2012

a) Counter Guarantees for Sales tax 5,000 5,000

b) Dividend payable on Cumulative

Convertible Preference Shares (Refer Note (ii) below)

c) Claims against the company not acknowledged as debts 6,42,43,000 6,14,00,000

d) Letter of undertaking executed in favour of Joint Director General of foreign trade under Duty Exemption Entitlement Scheme (Advance License Scheme) for custom duty 1,30,40,682 1,30,40,682

e) Letters of credit and Bank Guarantees given by bankers on behalf of the Company. 52,50,000 52,50,000

(ii) The Cumulative Convertible Preference Shares (CCPS) and Redeemable Convertible Cumulative Preference Shares (RCCPS) were also part of approved Corporate Debt Restructuring Scheme. In terms of Corporate Debt Restructuring Scheme, these CCPS and RCCPS have to be cancelled from the books of accounts. However such cancellation has the effect of reduction in capital as per the provisions of The Companies Act, 1956 which requires prior approval of High Court. The proposal was formally approved by the shareholders. Subsequently, approval of Guwahati High Court was received vide order dated 21st December, 2012. Therefore, CCPS of Rs. 10,00,00,000/- (1,00,000 shares of Rs. 100/ - each) & RCCPS of Rs. 71,46,25,000/-(71,46,250 shares of Rs. 100/- each) both totaling Rs. 81,46,25,000/- were cancelled on 16th February, 2013 from the accounts.

(iii) The board is contemplating taking steps for recovering the calls-in-arrears from defaulting applicants, including forfeiture of the shares as a last resort after exhausting all other avenues for recovery in a spirit of maintaining shareholder friendly environment. The Board therefore considers it prudent not to provide for the interest on calls-in-arrears.

(iv) Estimated amount of contracts remaining to be executed on capital account net of advances is Rs. Nil (Previous Period Rs. Nil/-)

(v) Loans and Advances include Rs. 77,28,700/-(Previous Period Rs. 3,83,27,274/-) overdue from various parties on account of accommodation deposits, security deposits, advances given to suppliers, ex-employees, etc. Compensation for delayed payment, if any, will be accounted in the books of account, if and when realized. No provision is made since the Company has recovered part of the amount and is hopeful of recovering the balance amount.

(vi) There is no amount overdue and remaining unpaid to small scale/or ancillary Industrial Suppliers on principal and/or interest as at the close of the period.

(vii) Previous period''s figures have been regrouped/ reclassified/rearranged wherever necessary.

(viii) In the opinion of the Board of Directors, in the ordinary course of business the value on realization of current assets, loans and advances, including security Deposits are at least equal to the amount at which they are stated in the Balance Sheet.

(ix) Amounts appearing in Trade Receivables & Payables are realized and paid as on date of signing. Balances of Banks, Sundry Debtors, Sundry Creditors, Loans & Advance, and Deposits are subject to confirmation.

(x) The AS-17 "Segment Reporting" is not applicable as the Company has operated only in one segment i.e. Manufacturing of Yarn.

(xi) AS-18 Related Party Information:

Pursuant to AS-18 information on remuneration paid to Key Management Personnel is given in the report on Corporate Governance under the heading "Remuneration to Directors" for Shri. Hemant B.Vyas - Managing Director and Shri S. K. Saha - Finance Director.

(xii) Additional information as far as applicable pursuant to the provision of paragraph 3, 4C, 4D of part II of the Schedule VI of the Companies Act, 1956 is as per Annexure I.

(xiii) Additional information pursuant to part IV of the Schedule VI of the Companies Act, 1956 is as per Annexure II.

(xiv) Cash flow Statement is annexed to this Schedule as Annexure III.

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Mar 31, 2012

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

The Company follows the accrual system of accounting and recognizes Income and expenditure on accrual basis.

Accounting policies not referred to otherwise are consistent with the Generally Accepted Accounting Principles.

(1) Contingent liabilities not provided for:

Sr. Particulars As At As At No. 31 March, 2012 30th September, 2010 Rs Rs

i. Counter Guarantees for Sales tax 5,000 5,000

ii. Dividend payable on Cumulative Convertible Preference Shares ( Refer Note 2 below) - -

iii. Claims against the company not acknowledged as debts 61,400,000 34,242,000

iv. Letter of undertaking executed in favour of Joint Director General of foreign trade under Duty Exemption Entitlement Scheme (Advance License Scheme) for custom duty 13,040,682 13,040,682

v. Letters of credit and Bank Guarantees given by bankers on behalf of the Company. 5,250,000 5,250,000

(2) The Cumulative Convertible Preference Shares (CCPS) and Redeemable Convertible Cumulative Preference Shares (RCCPS) have also been part of approved Corporate Debt Restructuring Scheme. In terms of Corporate Debt

Restructuring Scheme, these CCPS and RCCPS have to be cancelled from the books of accounts. However such cancellation has the effect of reduction in capital as per the provisions of The Companies Act, 1956 which requires prior approval of High Court after this proposal has formally been approved by the shareholders. CCPS & RCCPS therefore will remain in the books of accounts till the cancellation thereof is approved by High Court. However, in accordance with Corporate Debt Restructuring Scheme, dividend liability in respect of the preference shares has been shown as nil in the current year in Note 1 (ii) above.

(3) As per the approved Corporate Debt Restructuring Scheme, the Company has issued 8% Optionally Cumulative Convertible Debentures against the balance amount payable to the Financial Institutions, Banks and Insurance Companies.

(4) The board is contemplating taking steps for recovering the calls-in-arrears from defaulting applicants, including forfeiture of the shares as a last resort after exhausting all other avenues for recovery in a spirit of maintaining shareholder friendly environment. The Board therefore considers it prudent not to provide for the interest on calls-in-arrears.

(5) Estimated amount of contracts remaining to be executed on capital account net of advances is Rs. Nil (Previous Year Rs. Nil/-)

(6) Loans and Advances include Rs.38,327,274/- (Previous Year Rs.38,476,664/-) overdue from various parties on account of accommodation deposits, security deposits, advances given to suppliers, ex-employees, etc. Compensation for delayed payment, if any, will be accounted in the books of account, if and when realized. No provision is made since the Company has recovered part of the amount and is hopeful of recovering the balance amount.

(7) There is no amount overdue and remaining unpaid to small scale/or ancillary Industrial Suppliers on principal and/or interest as at the close of the period

(8) Previous Period's figures have been regrouped / reclassified / rearranged wherever necessary.

(9) In the opinion of the Board of Directors, in the ordinary course of business the value on realization of current assets, loans and advances, including security Deposits are at least equal to the amount at which they are stated in the Balance Sheet.

(10) Balance of Sundry Debtors, Sundry Creditors, Loans & Advance and Deposits are subjecjt to confirmation.

(11) Profit and Loss Account of the curreht period includes following remuneration paid/creqited/accrued to managerial personnel.

(12) The AS-17 "Segment Reporting" is not applicable as the Company has operated only in one segment i.e. manufacturing of Yarn.

(13)AS-18 Related Party Information:

Pursuant to AS-18 information on remuneration paid to Key Management Personnel is given in the report on Corporate Governance under the heading "Remuneration to Directors" for Shr Hemant B.Vyas - Managing Director and Shri S. K. Saha - Wholetime cum Finance Director.

(14) Additional information as far as applicable pursuant to the provision of paragraph 3, 4C, 4D of part II of the Schedule VI of the Companies Act, 1956 is as per Annexure I.

(15)Additional information pursuant to part IV of the Schedule VI of the Companies Act, 1956 is as per annexure II.

(16)Cash flow Statement is annexed to this Schedule as Annexure III.

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Sep 30, 2010

(1) Contingent liabilities not provided for:

Sr. Particulars As At As At No. 30/09/2010 31/09/2009 Rs. Rs.

1. Counter Guarantees for Sales tax 5,000 5,000

ii. Dividend payable on Cumulative Convertible Preference Shares (Refer Note 2 below) - -

iii. Claims against the company not acknowledged as debts 34,242,000 34,242,000

iv. Letter of undertaking executed in favour of Joint Director General of foreign trade under Duty Exemption Entitlement Scheme (Advance License Scheme) for custom duty 13,040,682 13.040.682

v. Letters of credit and Bank Guarantees given by bankers on behalf of the Company. 5,250.000 5,250,000

(2) The Cumulative Convertible Preference Shares (CCPS) and Redeemable Convertible Cumulative Preference Shares (RCCPS) have also been part of approved Corporate Debt Restructuring Scheme. In terms of Corporate Debt Restructuring Scheme, these CCPS and RCCPS have to be cancelled from the books of accounts. However such cancellation has the effect of reduction in capital as per the provisions of The Companies Act, 1956 which requires prior approval of High Court after this proposal has formally been approved by the shareholders. CCPS & RCCPS therefore will remain in the books of accounts till the cancellation thereof is approved by High Court. However, in accordance with Corporate Debt Restructuring Scheme, dividend liability in respect of the preference shares has been shown as nil in the current year in Note 1(ii) above.

(3) No provision for deferred taxation is made in accounts as the company has been incurring losses year after year and Companys business income is also exempt u/s 80IC of Income Tax Act of 1961.

(4) As per the approved Corporate Debt Restructuring Scheme, the Company has issued 8% Optionally Cumulative Convertible Debentures against the balance amount payable to the Financial Institutions, Banks and Insurance Companies.

(5) The board is contemplating taking steps for recovering the calls-in-arrears from defaulting applicants, including forfeiture of the shares as a last resort after exhausting all other avenues for recovery in a spirit of maintaining shareholder friendly environment. The Board therefore considers it prudent not to provide for the interest

on calls-in-arrears.

(6) Estimated amount of contracts remaining to be executed on capital account net of advances is Rs. Nil (Previous Year Rs. Nil/-)

(7) Loans and Advances include Rs. 38,476,664/- (Previous Year Rs. 7,943,550/-) overdue from various parties on account of accommodation deposits, security deposits, advances given to suppliers, ex-employees, etc. Compensation for delayed payment, if any, will be accounted in the books of account, if and when realized. No provision is made since the Company has recovered part of the amount and is hopeful of recovering the balance amount.

(8) The amount overdue and remaining unpaid to small scale/or ancillary Industrial Suppliers on principal and/or interest as at the close of the period could not be ascertained, since the suppliers/ service providers covered under Micro, Small Medium Enterprises Act, 2006 have not furnished the information regarding filing necessary memorandum with the appropriate authority. In absence of the said information, the Company is unable to identify units as well as furnish details required.

(9) Previous Periods figures have been regrouped / reclassified / rearranged wherever necessary.

(10) In the opinion of the Board of Directors, in the ordinary course of business the value on realization of current assets, loans and advances, including security Deposits are at least equal to the amount at which they are stated in the Balance Sheet.

(11) Balance of Sundry Debtors, Sundry Creditors, Loans & Advance and Deposits are subject to confirmation.

(12) Profit and Loss Account of the current year includes following remuneration paid/credited/ accrued to managerial personnel.

(13) The AS-17 "Segment Reporting" is not applicable as the Company has operated only in one segment i.e. Manufacturing of Yarn.

(14) AS-18 Related Party Information:

Pursuant to AS-18 information on remuneration paid to Key Management Personnel is given in the report on Corporate Governance under the heading "Remuneration to Directors" for Shri Hemant B.Vyas - Managing Director and Shri S. K. Saha - Finance Director.

There are no other related parties.

(15) Additional information as far as applicable pursuant to the provision of paragraph 3, 4C, 4D of part II of the Schedule VI of the Companies Act, 1956 is as per Annexure I.

(16) Additional information pursuant to part IV of the Schedule VI of the Companies Act, 1956 is as per Annexure II.

(17) Cash flow Statement is annexed to this Schedule as Annexure III.

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Sep 30, 2009

(1) Contingent liabilities not provided for:

Sr. Particulars As At As At No. 30/09/2009 31/03/2008 Rs. Rs.

i. Counter Guarantees for Sales tax 5,000 5,000

ii. Dividend payable on Cumulative Convertible Preference Shares (Refer Note 3 below) - 153,330,963

iii. Claims against the company not acknowledged as debts 34,242,000 13,323,801

iv. Letter of undertaking executed in favour of Joint Director General of foreign trade under Duty Exemption Entitlement Scheme (Advance License Scheme) for custom duty 13,040,682 13,040,682

v. Letters of credit and Bank Guarantees given by bankers on behalf of the Company. 5,250,000 5,250,000

(2) No provision for deferred taxation is made in accounts as the company has been incurring losses year after year and there is uncertainty of making profits in near future. More over Companys business income is exempt u/s 80IC of Income Tax Act of 1961.

(3) The Cumulative Convertible Preference Shares (CCPS) and Redeemable Convertible Cumulative Preference Shares (RCCPS) have also been part of CDR package approved on 17/03/2009. In terms of CDR Package, these CCPS and RCCPS have to be cancelled from the books of accounts. However such cancellation has the effect of reduction in capital as per the provisions of The Companies Act, 1956 which requires prior approval of High Court after this proposal has formally been approved by the shareholders. CCPS & RCCPS therefore will remain in the books of accounts till the cancellation thereof is approved by High Court. However, in accordance with CDR Package, dividend liability in respect of the preference shares has been shown as nil in the current period in Note 1 under contingent liability provided for.

(4) Interest on loans, related preoperative expenses, custom duty, excise duty, etc. relating to the machineries and equipments not yet installed have been kept under Capital Work In Progress (CWIP).

(5) The approved CDR Package has resulted in the following benefits to the company:

(a) For Financial Institutions:-

i) 75% of the principal amount of term loans has been waived

ii) Entire accrued interest has been waived

iii) Settlement has been arrived at for the repayment of 25% of principal amount of term loans. The settled amount has to be paid as follows: -

a) 25% to be paid upfront

b) For balance 75%, Optionally Cumulative Convertible Debentures (OCCD) have to be issued.

(b) For Working Capital from Bankers

i) 80% of the amount outstanding Working Capital Loans as on 31.12.2005 has been waived.

ii) Settlement has been arrived at for the remaining 20% of the amount outstanding of working capital loans as on 31.12.2005. The settled amount to be paid as follows: -

a) 25% to be paid upfront

b) For balance 75% Optionally Cumulative Convertible Debentures (OCCD) have to be issued.

Accordingly Secured Loans has reduced by Rs. 688.19 Crore from Rs. 770.48 Crore.

Total amount Rs. 19.18 Crore towards 25% upfront payment as per the approved CDR Package have been paid to various Financial Institutions and Banks during the period 29.09.2010 to 08.10.2010. Balance amount of Rs. 57.54 Crore will be issued in the form of OCCD after the approval from Shareholders.

(6) Capital Work In Progress (CWIP) as on 30/09/2009 has been capitalized after giving effect of the approved CDR Package.

(7) The board is contemplating taking steps for recovering the calls-in-arrears from defaulting applicants, including forfeiture of the shares as a last resort after exhausting all other avenues for recovery in a spirit of maintaining shareholder friendly environment. The Board therefore considers it prudent not to provide for the interest on calls- in-arrears.

(8) Estimated amount of contracts remaining to be executed on capital account net of advances is Rs. Nil (Previous Year Rs. 26,685,369/-)

(9) During the current period, full provision has been made for doubtful overdue bills of exchange of Rs. Nil (Previous year Rs. 24,226,893/-) because the major drawee of Bills of exchange is under liquidation. Though the balance outstanding amount of Rs. Nil is considered fully doubtful of recovery, since the Company has obtained order from the Special Court appointed under the Special Court (Trial of Offences relating to Transactions & Securities) Act, 1992 the board considers it prudent not to write off the same as already explained last year. Writing off the Bills receivables from the books could be considered by appropriate authority as a unilateral waiver by the company of its claim thus negating the recovery suit filed by your company against the major drawee in liquidation.

(10) Loans and Advances include Rs. 7,943,550/- (Previous Year Rs. 1,13,369,041/-) overdue from various parties on account of accommodation deposits, security deposits, advances given to suppliers, ex-employees, etc. Compensation for delayed payment, if any, will be accounted in the books of account, if and when realized. No provision is made since the Company has recovered part of the amount and is hopeful of recovering the balance amount.

(11) During the period provision has been made in accounts for custom duty payable amounting to Rs. Nil (Previous Year Rs. 4,804,471/-) on imported capital equipments/goods received but not cleared from the customs. This has no impact on the Profit for the period. Interest accrued thereon till September 30, 2009 is Rs. 4,204,956/-

(12) The amount overdue and remaining unpaid to small scale/ or ancillary Industrial Suppliers on principal and/or interest as at the close of the period could not be ascertained, sinctf the suppliers/ service providers covered under Micro, Small Medium Enterprises Act, 2006 have not furnished the information regarding filing necessary memorandum with the appropriate authority. In absence of the said information, - the Company is unable to identify units as well as furnish details required.

(13) Previous Years figures have been regrouped/reclassified/ rearranged wherever necessary.

(14) In the opinion of the Board of Directors, in the ordinary course of business the value on realization of current assets, loans and advances, including security Deposits are at least equal to the amount at which they are stated in the Balance Sheet.

(15) Balance of Sundry Debtors, Sundry Creditors, Loans & Advance and Deposits are subject to confirmation.

(16) The AS-17 "Segment Reporting" is not applicable as the Company has operated only in one segment i.e. Manufacturing of Yam.

(17) AS-18 Related Party Information:

Pursuant to AS-18 information on remuneration paid to Key Management Personnel is given in the report on Corporate Governance under the heading "Remuneration to Directors" for Shri Hemant B. Vyas - Managing Director and Shri S. K. Saha - Finance Director.

There are no other related parties.

(18) Additional information as far as applicable pursuant to the provision of paragraph 3, 4C, 4D of part II of the Schedule VI of the Companies Act, 1956 is as per Annexure I.

(19) Additional information pursuant to part IV of the Schedule VI of the Companies Act, 1956 is as per Annexure II.