Notes to Accounts of Sybly Industries Ltd.

Mar 31, 2024

(h) Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability.

Product warranty expenses: The estimated liability for product warranties is recorded when products are
sold. These estimates are established using historical information on the nature, frequency and average
cost of warranty claims and management estimates regarding possible future incidences based on
actions on product failures. The timing of outflows will vary as and when warranty claim will arise,
being typically up to four years.

(i) Foreign Currency

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of
transaction. Foreign currency denominated monetary assets and liabilities are re-measured into the
functional currency at the exchange rate prevailing on the balance sheet date.

Exchange differences are recognized in the Statement of Profit and Loss except to the extent, exchange
differences which are regarded as an adjustment to interest costs on foreign currency borrowings, are
capitalized as part of borrowing costs.

(j) Income Taxes

Income tax expense comprises current and deferred taxes. Income tax expense is recognized in the
Statement of Profit and Loss except when they relate to items that are recognized outside profit or loss
(whether in other comprehensive income or directly in equity), in which case tax is also recognized
outside profit or loss. Current income taxes are determined based on respective taxable income of
taxable entity.

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary
differences between the carrying values of assets and liabilities and their respective tax bases, and
unutilized business loss and depreciation carry-forwards and tax credits. Such deferred tax assets and
liabilities are computed for the taxable entity. Deferred tax assets are recognized to the extent that it is
probable that future taxable income will be available against which the deductible temporary
differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.

Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the
period when the asset is realized or the liability is settled, based on tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current
tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and liabilities on a net basis.

(k) Earnings Per Share

Basic earnings per share has been computed by dividing profit/loss for the year by the weighted average
number of shares outstanding during the year.

Partly paid up shares are included as fully paid equivalents according to the fraction paid up. Diluted
earnings per share has been computed using the weighted average number of shares and dilutive
potential shares, except where the result would be anti-dilutive.

(l) Employee Benefits
i) Gratuity

Sybly Industries Limited have an obligation towards gratuity, a defined benefit retirement plan covering
eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death

while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary
payable for each completed year of service. Vesting occurs upon completion of five years of service.

ii) Provident Fund and ESI

In accordance with Indian law, eligible employees of Sybly Industries Limited are entitled to receive
benefits in respect of provident fund and ESI, a defined contribution plan, in which both employees and
the Company make monthly contributions at a specified percentage of the covered employees’ salary.
The contributions, as specified under the law, are made to the provident fund and pension fund set up.

(m) Dividends

Any dividend declared or paid by Sybly Industries Limited for any financial year is based on the profits
available for distribution as reported in the statutory financial statements of Sybly Industries Limited
(Standalone) prepared in accordance with Generally Accepted Accounting Principles in India, or Indian
GAAP or Ind AS. Indian law permits the declaration and payment of dividend out of profits for the year
or previous financial year(s) as stated in the statutory financial statements of Sybly Industries Limited
(Standalone) prepared in accordance with Generally Accepted Accounting Principles in India, or Indian
GAAP or Ind AS after providing for depreciation in accordance with the provisions of Schedule II to the
Companies Act. However, in the absence of inadequacy of the said profits, it may declare dividend out
of free reserves, subject to certain conditions as prescribed under the Companies (Declaration and
payment of Dividend) Rules, 2014. Accordingly, in certain years the net income reported in these
financial statements may not be fully distributable.

(n) Segments

The company is engaged in business of manufacturing & trading of yarn and Fabrics, which is in same
business segment.

(o) Investments in Subsidiaries, Joint Ventures and Associates

Investments in Subsidiaries, Joint Ventures and Associates are measured at cost as per Ind AS 27 -
Separate Financial Statements. However, company has no Subsidiary, Joint Venture and Associates.

31.1. Confirmation of balances from some of parties appearing under the head current liabilities, sundry debtors,
loans and advances are awaited.

31.2. Company has revalued its Fixed Assets namely Land and Building on 31.03.2004. The value of aforesaid
assets has increased by Rs.590 Lakh as per Valuation Report dt.31.03.2004 from a qualified & authorized
firm of Engineers M/s. Universal Consultants, Meerut. The aforesaid amount has been credited to
Revaluation Reserve Account. During the year, Revaluation Reserve has also been reduced during the year
by Rs. 84.95 Lakh and has been brought to zero as all the land and building has been sold during the year.

31.3. The cost records for the financial year -2023 are under preparation and till the date of this Balance Sheet, the
same could not be finalized.

31.7. The company is in severe financial stress and on the basis of the financial ratios, doubtful about realisation of
financial assets including debtors, in the opinion of the Board of Directors, the company may not be capable
of meeting its liabilities existing at the date of balance sheet.

31.8. Company had written off 352.32 lakhs of its old unrealizable debtors and 15.60 lakhs of creditors resulting
net Rs. 336.72 lakh, which is debited to profit and loss account under the head Exceptional item.

31.9. During the year company had made a slump scrap sale of remaining fixed assets of the company and
impairment of fixed assets is debited under the head Exceptional item.

31.10. There is an Exceptional Loss of Rs.371.69 lakh. Accordingly, the Profits & EPS for the year do not reflect
the true figures.

Note : During the year company had not done any commercial activity while company had made a slump scrap
sale of remaining fixed assets of the company and impairment of fixed assets is debited under the head
Exceptional item due to these factors, the ratios may not accurately reflect the true state of the business and
have become incomparable in the present context.

31.21. There is no proceeding initiated or pending under the Benami Transactions (Prohibition) Act, 1988 for the
Benami Properties.

31.22. There are no working capital advances /loans from any bank or financial institution and company does not
hold any inventory.

31.23. Company has not revalued its Property Plant and Equipments (PPE) and Capital Work in Progress (CWIP)
during the year.

31.24. The company is not declared as a wilful defaulter by any bank or financial Institution.

31.25. The Company does not have any relationship with any struck off company.

31.26. Company does not own any immovable property as on 31st March, 2024.

31.27. Since the company does not hold any investments in other companies, it is not subject to the provisions
related to the number of layers as prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.

31.28. There is no pending registration of charges or pending satisfaction of charge with Registrar of Companies
(ROC) beyond statutory limits.

31.29. The Company has not undertaken any Scheme of the arrangement during the year.

31.30. The Company has not borrowed any funds from Bank/NBFCs, and its share are issued at face value and
therefore there is no share premium.

31.31. The Company has not surrendered or disclosed any transaction, as “not” recorded in the accounts, as income
in the tax assessment during the year.

31.32. Being company is loss, Corporate Social Responsibility (CSR) is not applicable to the company as per
section 135(1) of the Companies Act, 2013.

31.33. Company does not hold or transact in any Crypto Currency or Virtual Currency

31.34. There are no intangible assets under development in the company.

By the order of the Board

FOR SYBLY INDUSTRIES LIMITED

SD/ SD/

(MAHESH CHAND MITTAL) (RAMESH CHANDRA SHARMA)

Managing Director Director

(DIN : 00284866) (DIN : 00284981)

Flat No.603, OC-2, Orange County, 18, Vinay Park, Govind Puri,

Ahinsa Khand-1, Indirapuram, Modinagar, Ghaziabad - 201204 (U.P.)

Ghaziabad - 201014 (U.P.)

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Mar 31, 2015

A. Confirmation of balances from some of parties appearing under the head current liabilities, sundry debtors, loans and advances are awaited

B. Previous year adjustments of Rs. 48,773/- include Rs.5,827/- paid for Sales Tax demand for the Assessment Year 2010-11; Rs.3,101/- paid for Service Charges 2013-14, Rs. 14,510/- paid for License Renewal Fee of 2013-14 & VAT Credits of Rs. 25,335/- has been written off due to VAT exemption.

C. Company has revalued its Fixed Assets namely Land and Building on 31.03.2004. The value of aforesaid assets has increased by Rs.5,90,00,625.42 as per Valuation Report dt.31.03.2004 from a qualified & authorized firm of Engineers M/s.Universal Consultants, Meerut. The aforesaid amount has been credited to Revaluation Reserve Account. Further, during the year, same has been reduced by equivalent amount of depreciation charged on this revalued amount.

D. The bifurcation of the total outstanding dues of small scale industrial undertakings and other than small scale industrial undertakings as well as the name of the small scale industrial, undertakings to whom the company owes a sum of exceeding rupees one lacs and which is outstanding for more than thirty days, are not disclosed in the Balance Sheet as suppliers have not indicated their status on their documents/papers whether they are small scale undertakings or not hence it is not possible for the company to disclose the said information in respect of trade creditors.

E. The cost records for the financial year 2014-2015 are still under preparation and till the date of this Balance Sheet, the same could not be finalized.

F. The company has valued the stock of finished goods at lower of cost or realizable value in terms of AS-2. Earlier the company was valuing the stock at realizable value.

G. The company has adopted Schedule II to the Companies Act, 2013, for depreciation purposes, from 1 April 2014. The company was previously not identifying components of fixed assets separately for depreciation purposes; rather, a single useful life/ depreciation rate was used to depreciate each item of fixed asset. Due to application of Schedule II to the Companies Act, 2013, the company has changed the manner of depreciation for its fixed assets. Now, the company identifies and determines separate useful life for each major component of the fixed asset, if they have useful life that is materially different from that of the remaining asset. The company has used transitional provisions of Schedule II to adjust the impact of component accounting arising on its first application. The carrying amount of components whose remaining useful life is not nil on 1 April 2015, is depreciated over their remaining useful life.

H. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

I. Managerial Remuneration :

Managerial remuneration has been paid within the limits specified by Schedule V of the Companies Act, 2013. Computation of Net Profit u/s 198 of the Act is not given in view of there being no commission payable to any director. The details of managerial remuneration paid under Section 197 of the Companies Act, 2013 are as under:

J. During the current year no dividend is proposed to be paid hence not provided for.

K. Particulars of Capacity, Production, Turnover and Stock for manufacturing Activities:

L. Disclosures in respect of related party as defined in Accounting Standard 18, with whom transactions were carried out in the ordinary course of Business during the year as given below:-

Related party disclosures

a. List of related parties

i. Subsidiaries

- Sybly International FZE

ii. Key Management Personnel

- Mr. Mahesh Chand Mittal

- Mr. Nishant Mittal

iii. Relatives of Key Management Personnel

- Mrs. Suman Mittal

- Mrs. Parul Mittal

- Mrs. Rashi Mittal

- Mrs. Shikha Mittal

- Mr. Satya Prakash Mittal

- Mr. Umesh Kumar Mittal

- Sybly Techno Fibres Limited (Common KMP Mr. M.C.Mittal & Mr. Nishant Mittal)

- Vartex Fabrics (P) Ltd. (Common KMP Mr. M.C. Mittal)

- Dux Textiles (P) Ltd. (Common KMP Mr. Nishant Mittal)

M. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business and the provisions for all known liabilities is adequate and not in excess of amount reasonably necessary.

N. Previous Year's figures have been rearranged regrouped wherever necessary.

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Mar 31, 2014

Nature of Security and terms of repayments for Long Term secured borrowings :

Nature of Security

i Term Loan from BMW India Financial Services (P) Ltd. for Car amounting to Rs. 21.00 lacs (March 31, 2014 Rs.7.05 lacs) is secured by way of Hypothecation of Vehicle.

Terms of Repayment

Repayable in 36 monthly installments commencing from April-12. Last installment due in February-15. Rate of interest 10.23%.p.a. as at year end.

Nature of Long Term Unsecured borrowings :

The Unsecured Loans have been taken from Directors / Promoters & their relatives. These Unsecured Loans have been taken in the condition imposed by the financial institution for bringing the adequate margins. These unsecured loans will not be repaid without the permission of the financial institution. During the year some of unsecured loans are repaid and in place of them fresh are taken. However, the overall quantum of the unsecured loans were within the adequate margins as stipulated by the financial institution. The company is of the opinion that these are well within the provision of Section 58A of the Companies Act, 1956 as the same are accepted in pursuance of stipulations of financial institutions.

NOTE - 19 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) A Contingent Liabilities

(a) Claims against the company not acknowledged as debts NIL

(b) Guarantees NIL

(c) Other money for which company is contingently liable:

(i) The Income Tax assessments of the Company is pending for the assessment year 2012-2013 and 2013-14. However the Company does not envisage any liability in respect thereof. The Company''s Appeals for assessment year 1998- 99 & 2001-02 are pending before the Income Tax Appellate Tribunal but the Company does not envisage any liability and expect full relief in the appeal.

(ii) The Trade Tax assessments of the Company for the assessment years 2011-2012, 2012-2013 and 2013-14 are pending but the Company does not envisage any liability for these years other than what has been paid or provided.

(iii) A demand of Rs. 8,51,135.34 has been raised by The Maharashtra State Co-op. Cotton Growers Marketing Federation Ltd., Mumbai after adjusting advance of Rs. 19,07,422.31, deposited by Company, for purchase of Cotton. However, the Company did not purchase such Cotton, The Maharashtra State Co-op. Cotton Growers Marketing Federation Ltd., Mumbai raised dispute, which is pending in litigation before the Court of Law.

(d) Bills discounted with banks NIL

Note - 29 Additional Information to the financial statements

A. Confirmation of balances from some of parties appearing under the head current liabilities, sundry debtors, loans and advances are awaited

B. Previous year adjustments of Rs. 2,53,785/- include Rs.2,45,770/- paid for Sales Tax demand for the Assessment Year 2009-10; Rs.8,015/- paid for Professional Charges 2011-12.

C. Company has revalued its Fixed Assets namely Land and Building on 31.03.2004. The value of aforesaid assets has increased by Rs.5,90,00,625.42 as per Valuation Report dt.31.03.2004 from a qualified & authorized firm of Engineers M/s.Universal Consultants, Meerut. The aforesaid amount has been credited to Revaluation Reserve Account. Further, during the year, same has been reduced by equivalent amount of depreciation charged on this revalued amount.

D. The bifurcation of the total outstanding dues of small scale industrial undertakings and other than small scale industrial undertakings as well as the name of the small scale industrial, undertakings to whom the company owes a sum of exceeding rupees one lacs and which is outstanding for more than thirty days, are not disclosed in the Balance Sheet as suppliers have not indicated their status on their documents/papers whether they are small scale undertakings or not hence it is not possible for the company to disclose the said information in respect of trade creditors.

E. The cost records for the financial year 2013-2014 are still under preparation and till the date of this Balance Sheet, the same could not be finalized.

F. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

G. Managerial Remuneration :

Managerial remuneration has been paid within the limits specified by Schedule XIII of the Companies Act, 1956. Computation of Net Profit u/s 349 of the Act is not given in view of there being no commission payable to any director. The details of managerial remuneration paid under Section 198 of the Companies Act, 1956 are as under:

H. During the current year no dividend is proposed to be paid hence not provided for.

M. Disclosures in respect of related party as defined in Accounting Standard 18, with whom transactions were carried out in the ordinary course of Business during the year as given below:-

Related party disclosures a. List of related parties

i. Subsidiaries

- Sybly International FZE ii. Key Management Personnel

- Mr. Mahesh Chand Mittal

- Mr. Satya Prakash Mittal

- Mr. Nishant Mittal

iii. Relatives of Key Management Personnel

- Mrs. Suman Mittal

- Mrs. Parul Mittal

- Mrs. Rashi Mittal

- Mrs. Shikha Mittal

- Sybly Techno Fibres Limited (Common KMP Shri M.C.Mittal)

- Vartex Fabrics (P) Ltd. (Common KMP Shri M.C. Mittal)

- Dux Textiles (P) Ltd. (Common KMP Shri Nishant Mittal)

N. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business and the provisions for all known liabilities is adequate and not in excess of amount reasonably necessary.

O. Previous Year''s figures have been rearranged regrouped wherever necessary.

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Mar 31, 2013

A. Confirmation of balances from some of parties appearing under the head current liabilities, sundry debtors, loans and advances are awaited

B. Previous year adjustments of Rs. 18,263/- include Rs.12,982/- paid for Entry Tax demand & interest thereon for the Assessment Year 2008-09; Rs.5,281/- paid for Entry Tax demand & interest thereon for the Assessment Year 2009-10.

C. Company has revalued its Fixed Assets namely Land and Building on 31.03.2004. The value of aforesaid assets has increased by Rs.5,90,00,625.42 as per Valuation Report dt.31.03.2004 from a qualified & authorized firm of Engineers M/s.Universal Consultants, Meerut. The aforesaid amount has been credited to Revaluation Reserve Account. Further, during the year, same has been reduced by equivalent amount of depreciation charged on this revalued amount.

D. The bifurcation of the total outstanding dues of small scale industrial undertakings and other than small scale industrial undertakings as well as the name of the small scale industrial, undertakings to whom the company owes a sum of exceeding rupees one lacs and which is outstanding for more than thirty days, are not disclosed in the Balance Sheet as suppliers have not indicated their status on their documents/papers whether they are small scale undertakings or not hence it is not possible for the company to disclose the said information in respect of trade creditors.

E. The cost records for the financial year 2012-2013 are still under preparation and till the date of this Balance Sheet, the same could not be finalized.

F. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

G. Managerial Remuneration :

Managerial remuneration has been paid within the limits specified by Schedule XIII of the Companies Act, 1956. Computation of Net Profit u/s 349 of the Act is not given in view of there being no commission payable to any director. The details of managerial remuneration paid under Section 198 of the Companies Act, 1956 are as under:

H. During the current year no dividend is proposed to be paid hence not provided for.

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Mar 31, 2012

Nature of Long Term Unsecured borrowings :

The Unsecured Loans have been taken from Directors / Promoters & their relatives. These Unsecured Loans have been taken in the condition imposed by the financial institution for bringing the adequate margins. These unsecured loans will not be repaid without the permission of the financial institution. During the year some of unsecured loan are repaid and in place of them fresh are taken. However, the overall quantum of the unsecured loans were within the adequate margins as stipulated by the financial institution. The company is of the opinion that these are well within the provision of Section 58A of the Companies Act, 1956 as the same are accepted in pursuance of stipulations of financial institutions.

NOTE - 1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

A Contingent Liabilities

(a) Claims against the company not acknowledged as debts ------NIL------

(b) Guarantees -------NIL------

(c) Other money for which company is contingently liable:

(i) The Income Tax assessments of the Company is pending for the assessment year 2010-2011 and 2011-12. However the Company does not envisage any liability in respect thereof. The Company's Appeals for assessment year 1998-99 & 2001-02 are pending before the Income Tax Appellate Tribunal but the Company does not envisage any liability and expect full relief in the appeal.

(ii) The Trade Tax assessments of the Company for the assessment years 2009-2010, 2010-2011 and 2011-12 are pending but the Company does not envisage any liability for these years other than what has been paid or provided.

(iii)A demand of Rs. 8,51,135.34 has been raised by The Maharashtra State Co-op. Cotton Growers Marketing Federation Ltd., Mumbai after adjusting advance of Rs. 19,07,422.31, deposited by Company, for purchase of Cotton. However, the Company did not purchase such Cotton, The Maharashtra State Co-op. Cotton Growers Marketing Federation Ltd., Mumbai raised dispute, which is pending in litigation before the Court of Law.

(d) Bills discounted with banks -------NIL-------

B Commitment

(a Estimated amount of contracts remaining to be executed Order Value Rs. 400 Lacs, balance on capital account and not provided for unpaid is Rs. 358.30 Lacs

Note - 2 Additional Information to the financial statements

A. Confirmation of balances from some of parties appearing under the head current liabilities, sundry debtors, loans and advances are awaited

B. Previous year adjustments of Rs. 5,82,318/- include Rs.3,000/- paid for Sales Tax demand & interest thereon for the Assessment Year 2006-07; Rs.4,21,759/- paid for Sales Tax demand & interest thereon for the Assessment Year 2008-09; Rs.1,57,559/- paid for outstanding Freight & Cartage as charged by the Consignment Agents.

C. Company has revalued its Fixed Assets namely Land and Building on 31.03.2004. The value of aforesaid assets has increased by Rs.5,90,00,625.42 as per Valuation Report dt.31.03.2004 from a qualified & authorized firm of Engineers M/s.Universal Consultants, Meerut. The aforesaid amount has been credited to Revaluation Reserve Account. Further, during the year, same has been reduced by equivalent amount of depreciation charged on this revalued amount.

D. The bifurcation of the total outstanding dues of small scale industrial undertakings and other than small scale industrial undertakings as well as the name of the small scale industrial, undertakings to whom the company owes a sum of exceeding rupees one lacs and which is outstanding for more than thirty days, are not disclosed in the Balance Sheet as suppliers have not indicated their status on their documents/papers whether they are small scale undertakings or not hence it is not possible for the company to disclose the said information in respect of trade creditors.

E. The cost records for the financial year 2011-2012 are still under preparation and till the date of this Balance Sheet, the same could not be finalized.

F. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business and the provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

G. Managerial Remuneration :

Managerial remuneration has been paid within the limits specified by Schedule XIII of the Companies Act, 1956. Computation of Net Profit u/s 349 of the Act is not given in view of there being no commission payable to any director. The details of managerial remuneration paid under Section 198 ofthe Companies Act, 1956 are as under:

H. During the current year no dividend is proposed to be paid hence not provided for.

I. Disclosures in respect of related party as defined in Accounting Standard 18, with whom transactions were carried out in the ordinary course of Business during the year as given below:-

Related party disclosures a. List of related parties

i. Subsidiaries

- Sybly International FZE

ii. Key Management Personnel

- Mr. Mahesh Chand Mittal

- Mr. Satya Prakash Mittal

iii. Relatives of Key Management Personnel

- Mrs. Suman Mittal

- Mr. Nishant Mittal

- Mrs. Parul Mittal

- Mahesh Chand Mittal HUF

- Sybly Threads Limited

- Vartex Fabrics (P) Ltd. (Common KMP Shri M.C. Mittal)

- Dux Textiles (P) Ltd.

J. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business and the provisions for all known liabilities is adequate and not in excess of amount reasonably necessary.

K. During the year Company entered in to an agreement with M/s.Kush Technologies P. Ltd. for purchase of 30,000 SQ. Yards Residential land at Dharuhera, Haryana. For this transaction Company paid Rs. 15,00,000/- as Advance money in cash but contract was breached by Kush Technologies P. Ltd. and for breach of contract Arbitrater finalized the claim amount of Rs.3,30,00,000/-(including Rs.15,00,000/- Advance money) which has been paid by Kush technologies Pvt. Ltd. This amount is treated as Extraordinary Income as disclosed in Note No. 28.

L. Previous Years figures have been rearranged and regrouped wherever necessary.

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Mar 31, 2010

1. Contingent Liabilities:

(i) The Income Tax assessments of the Company is pending for the assessment year 2008-20Q9 and 2009-2010. However the Company does not envisage any liability in respect thereof. The Companys Appeals for assessment year 1998-99 & 2001-02 are pending before the Income Tax Appellate Tribunal but the Company does not envisage any liability and expect full relief in the appeal.

(ii) The Trade Tax assessments of the Company for the assessment years 2008-2009 and 2009-2010 are pending but the Company does not envisage any liability for these years other than what has been paid or provided.

(iii) Estimated amount of Contracts remaining to be executed on capital account and not provided for Rs. 45.00 Lacs (previous year Rs. 51.00 Lacs)

(iv) A demand of Rs. 8,51,135.34 has been raised by The Maharashtra State Co-op. Cotton Growers Marketing Federation Ltd., Mumbai after adjusting advance of Rs. 19,07,422.31, deposited by us, for purchase of Cotton. However, the Company did not purchase such Cotton. The Maharashtra State Co-op. Cotton Growers Marketing Federation Ltd., Mumbai raised dispute, which is pending in litigation before the Court of Law.

2. Secured Loans: (i) Term Loans:

(a) From Bank of Baroda amounting to Rs. 289.70 lacs, (Previous Year Rs. 407.92 lacs) are secured by way of exclusive charge over gross block of the Company excluding vehicles financed by other banks and also secured by way of exclusive charge over all Current Assets of the company alongwith personal guarantees of the Promoter directors & their relatives. (Repayable within one year Rs. 112.00 lacs).

(b) From ICICI Bank amounting to Rs. NIL (Previous year 5.61 lacs) were secured by way of hypothecation of vehicles. (Repayable Within one year Rs. NIL).

(c) From HDFC Bank amounting to Rs. 4.05 lacs (Previous year NIL) were secured by way of hypothecation of vehicles. (Repayable within one year Rs. 1.73 lacs).

(ii) Working Capital Loans:

Total Working Capital limits from Bank of Baroda as on 31.03.2010 Rs. 1214.22 lacs (Previous year Rs. 1211.00 lacs) are secured by way of exclusive charge over gross block of the Company excluding vehicles financed by other banks and also secured by way of exclusive charge over all Current Assets of the company alongwith personal guarantees of the Promoter directors & their relatives.

3. Unsecured loans:

The Unsecured Loans from others have been taken from the family members and relative of directors out of which loans from directors are amounting to Rs. 76.55 lacs. These unsecured loans have been taken in the condition imposed by the financial institution for bringing the adequate margins. These unsecured loans will not be repaid without the permission of the financial institution. During the year some of unsecured loans are repaid and in place of them fresh unsecured loans are taken. However, the overall quantum of the unsecured loans was within the adequate margins as stipulated by the financial Institution. The company is of the opinion that these are well within the provisions of Section 5 8 A of the Companies Act, 1956 as the same are accepted in pursuance of stipulations of financial institutions.

4. Confirmation of balances from some of parties appearing under the head current liabilities, sundry debtors, loans and advances are awaited.

5. In accordance with the Accounting Standard 22 "Accounting for Taxes on Income" (AS-22) issued by the ICAI, the company has accounted for deferred taxes during the year. The tax provision for the current year includes Rs. 1,27,84,400/- for deferred tax assets. The component of deferred tax assets is the sum of tax of Rs. 1,01,17,766/- on unabsorbed depreciation and carry forward losses and Rs. 26,66,634/- being tax on difference between depreciation charged/chargeable in books and claim of depreciation under Income Tax Act.

6. The Company has adopted the policy to account for the interest to trade Creditors on final settlement with them.

7. Previous year adjustments of Rs. 9,48,602/- include Rs.7,74,425/- on account of Freight & Cartage charged by the Consignment Agents; Rs.24,704/- paid for Sales Tax demand & interest thereon for the Assessment Year 2005-06; Rs.88,058/- written off as non recoverable deposits; Rs. 28,103/- paid for Income Tax demand for the A.Y. 2006-07; and Rs.33,312/- paid for Income Tax demand for the A.Y. 2007-08.

8. Other Income includes interest of Rs. 117.76 lacs accrued on Fixed Deposits made out of GDR Issue with EURAM Bank in Austria.

9. Company has revalued its Fixed Assets namely Land and Building on 31.03.2004. The value of aforesaid assets has increased by Rs.5,90,00,625.42 as per Valuation Report dt.31.03.2004 from a qualified & authorized firm of Engineers M/s.Universal Consultants, Meerut. The aforesaid amount has been credited to Revaluation Reserve Account. Further, during the year, same has been reduced by equivalent amount of depreciation charged on this revalued amount.

10. During the year company has promoted a fully owned subsidiary foreign company under the name and style as "Sybly International FZE, Sharjah (U.A.E.)" with an equity investment of Rs. 4,28,750/-. Company has also made advance of Rs. 33,64,20,230/- to this WOS in 100% utilization of the proceeds of GDR issue. Company has sold 4,10,000 shares of Vartex Fabrics Pvt. Ltd. For Rs. 2,13,20,000/- on which Company earned gain of Rs. 1,72,200/- which resulted that M/s Vartex Fabrics Private Limited now ceased to be a subsidiary company.

11. During the year share application money in Vishwanath Paper & Board Ltd. has been converted in investment on allotment of Equity Shares of Rs. 34,00,000/- (68000 Fully Paid Equity Shares of Rs. 10/- each of Vishwanath Paper & Boards Ltd. including Premium of Rs. 40/- each shares).

12. Out of 4,35,00,000 Convertible Warrants of Rs. 10/- each, carrying a right to subscribe to equel no. of equity shares in the company on conversion within a period of 18 months, only 5,00,000 warrants were converted on receipt of call money. Rest of 4,30,00,000 warrants have been forfeited during the year due to non receipt of call money. Rest of 4,30,00,000 warrants have been forfeited during the year due to no receipt of call money within 18 months from the date of allotment i.e. 28.03.2008.

13. Related party disclosures a. List of related parties

i. Subsidiaries

- Vartex Fabrics Private Limited (Ceased to be subsidiary)

- Sybly International FZE

ii. Key Management Personnel

- ShriMaheshChandMittal

- ShriSatyaPrakashMittal

- ShriUmesh Kumar Mittal

iii. Relatives of Key Management Personnel

- Smt.Suman Mittal

- Mr. Nishant Mittal

- Sybly Threads Limited (Common KMP Mr. U.K.Mittal)

14. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business and the provisions for all known liabilities is adequate and not in excess of amount reasonably necessary.

15. Total outstanding dues of small scale industrial undertakings and other than small scale industrial undertakings and the names of the small scale industrial to whom the company own a sum of exceeding Rupees one lakh which outstanding for more than thirty days, are not disclosed on the Balance Sheet as the suppliers have not indicated their status whether they are small scale undertakings or not or their documents and accordingly it was not possible for the company to bifurcate the trade creditors accordingly.

16. Previous Years figures have been rearranged and regrouped wherever necessary.