Notes to Accounts of Texplast Industries Ltd.

Mar 31, 2013

1 CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

a) MSEB Liability approxRs.13,00,000 (Previous Year Rs.13,00,000)

2 Payment against suppliers for SSI and ancillary undertaking cannot be ascertained in the absence of information.

3 The Sundry Debtors, Creditors and Loans & Advances balances are subject to confirmations and / or reconciliation, ifany.

4 All current assets are stated at values realizable in the ordinary course of business and known liabilities are properly provided for in the opinion of the Board.

5 Sundry credit balances written back (net) amounting to Rs.1,20,970/- are includes sundry debit balances written off amounting to Rs.3,08,233/- (in previous year sundry credit balance written back (net) amounting to Rs.73,952/- are includes sundry debit balances written off amounting to Rs.48,854/-)

6 During the year, the Company has reviewed its fixed assets for impairment loss as required by Accounting Standard 28 "Impairment of Assets". In the opinion of management no provision for impairment loss is considered necessary

7 Previous year''s figures have been re-grouped, reworked, rearranged and reclassified wherever necessary to confirm to this year''s classification. Amounts and other disclosures for the preceding year are included as an integral part of currentyearfinahcial statements.

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Mar 31, 2012

A) Rights, preferences and restrictions attached to Equity shares:

The Company has one class of equity share issued having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in preference to their shareholding.

b) Details of Share holders holding more than 5% shares in the Company:

Notes:

SECURED BORROWINGS

i Term Loan in INRfrom Indian Overseas Bank:

The loan is repayable in sixty monthly instalments of Rs.55,620/- from December-2011. The Loan is secured against Block assets of the Company and personal guarantee by Managing Director.

Term Loan of Rs.86,01,695 as on 1st April, 2011 has been converted in Foreign Currency Term Loan $ 1,99,292 as on December 2011 refer Note No.ii-FCTL-4

ii Foreign Currency Term Loan from Indian Overseas Bank:

Foreign Currency Term Loan from Indian Overseas Bank carries interest @ LIBOR 5.50% to 6.50%

FCTL-2 -

The loan is repayable in fourty eight monthly instalments of $ 12,344/- from April-2009. The loan is secured against Block assets of the Company and personal guarantee of Managing Director.

FCTL-3

The loan is repayable in sixty monthly instalments of $ 10,800/- from August-2010. The loan is secured against Block assets of the Company and personal guarantee of Managing Director.

FCTL-4

The loan is repayable in sixty monthly instalments of $ 3,910/- from April-2011. The loan is secured against Block assets of the Company and personal guarantee of Managing Director.

FCTL-5 .

The loan is repayable in sixty monthly instalments of $6,530/-from December-2011. The loan is secured against Block assets of the Company and personal guarantee of Managing Director, iii) Buyer's Credit in Foreign Currency from Indian Overseas Bank:

Thesaid facility carries interest of approximately 2.15%. It is secured against Margin Money of Rs.5,00,000/- pm to meet the Buyer's Credit Commitment at the end of the three years and personal guarantee of Managing Director.

Collateral Security for all loans from Indian Overseas Bank

a) Working Capital limits is collaterally secured by residual value of the fixed assets of the Company, present and future.

b) Term loan is secured by residual value of fixed assets of the Company, present and future.

c) All loan from Indian Overseas Bank is secured by Equitable Mortage of the immovable property of the Company.

GutN0.39HissaNo. paiki 2 acers, Nehroli Village, Wada Taluka and District Thane and

Hissa No.paiki 76.4 gunthas nehroli village, wada taluka District Thane

Gut No.40 admeasuring 1 acers 6.5 gunthas, nehroli Village, Wada Taluka and District Thane.

d) Fixed Deposits of Rs.1.00Cr.(under lien to Indian Overse as Bank)

e) Residual value of residential property at Flat No.1301, admeasuring 550 sq. ft built up area on the 13th floor, in the building known as "Surya Apartment Co-op Housing Society Ltd" situated ated 53, Bhulabhai Desai Road, Mumbai - 400026. valued at Rs.Z64.00 Lacs FMV and Rs.211.00 Lacs as FSV as per valuation report dated 09th November, 2009 of Shekhar Thite. This flat is already mortgaged for Housing Loan of Rs.152.50 Lacs for Sukumar N Shah at Indian Overseas Bank, Mahim Branch. The Present outstanding in the Housing Loan is Rs. 111.65 Lacs.

i v) Vehicle Loan from Kotak Mahindra Prime Limited:

The Loan is secured against hypothecation of specific capital assets i.e. Hydai 1-20 Car and Post dated cheques for principal and interest payable thereon.

UNSECURED BORROWINGS

I) Unsecured Loan from Kotak Mahindra Bank Limited:

The loan is repayable in 12 monthly instalments of Rs.2,31,167/- from April 2011 carrying interest of approximately 21% p.a.

ii) Unsecured Loan from Kotak Mahindra Bank Limited:

The Loan is repayable in 120 Monthly instalments of Rs. 1,43,449/- from August 2011 earring interest of approximately 13% p.a.

iii) Unsecured Loan from Tata Capital Limited:

The Loan is repayable in 24 Monthly instalments of Rs.1,26,399/-from June 2011 earring interest of approximately 20% p.a.

iv) Deferred Sales Tax Liability:

In absence of information with Company, payment schedule is ascertained by the management.

Notes:

Secured Borrowings

1 Cash credit from Indian Overseas Bank are repayable on demand and carries interest @ 13.25% p.a. It is secured against hypothecation of stock of RM/WIP/FG, Spares, Book Debts and personal guarantee of Managing Director.

2 Foreign Bill Discounting represents bill discounted with Indian Overseas Bank. The tenure of the loan is upto 90 days and the rate of interest (foreign bill discounting ) is 10.25%. It is secured against accepted hundies, hypothecation of merchandise and personal guarantee of managing director.

3 Packing credit is taken from Indian Overseas Bank which carries interest @ 10.25% p.a. It is secured against hypothecation of stock of RM/WIP/FG and personal guarantee of managing director.

4 Working capital limits is collaterally secured by residual value of the fixed assets of the Company, present and future.

Collateral Security for all loans from Indian Overseas Bank

a) Working Capital limits is collaterally secured by residual value of the fixed assets of the Company, present and future.

b) Fixed Deposits of Rs.l.OOCr. (under lien to Indian Overseas Bank)

c) All loan from Indian Overseas Bank is secured by Equitable Mortage of the immovable property of the Company '

Gut NO.39 Hissa No. paiki 2 acers, Nehroli Village, Wada Taluka and District Thane and Hissa No.paiki 76.4 gunthasnehroli village, wadataluka District Thane

Gut No.40 admeasuring 1 acers 6.5 gunthas, nehroli Village, Wada Taluka and District Thane.

d) Residual value of residential property at Flat No.1301, admeasuring 550 sq. ft built up area on the 13th floor, in the building known as "Surya Apartment Co-op Housing Society Ltd" situated ated 53, Bhulabhai Desai Road, Mumbai - 400026. valued at Rs.264.00 Lacs FMV and Rs.211.00 Lacs as FSV as per valuation report dated 09th November, 2009 of Shekhar Thite. This flat is already mortgaged for Housing Loan of Rs.152.50 Lacs for Sukumar N Shah at Indian Overseas Bank, Mahim Branch. The Present outstanding in the Housing Loan is Rs.111.65 Lacs.

3 Segment information as per Accounting Standard -17 on Segment Reporting for the year ended 31" March, 2012. Information about Primary Segment (Product wise)

Segments have been identified and reported taking into account, the differing risk and returns, the orgnisation structure and the internal reporting system. These are orgnised into following main business product segment based on products: Manufacturing Plastics Products:

The Company is manufacturing Jumbo Bags / Woven Sacks / Fabrics / Liners / Multifilament Yarn / Twisted Thread. Trading in Textile and Others:

The Company is engaged in trading of Textile and Others.

6 GRATUITY:

In accordance with AS-15 (revised 2005), "Employee Benefits", the Company has provided the liability on actuarial basis carried out by an independent actuary. Refer Note No.25.1

7 CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

a) MSEB Liability approx Rs.13/00,000 (Previous Year Rs.13,00,000)

b) Letter of Credit of Rs.4,25,02,399 (Previous Year Rs.2,17,96,871

8 Payment against suppliers for SSI and ancillary undertaking cannot be ascertained in the absence of information.

9 The Sundry Debtors, Creditors and Loans & Advances balances are subject to confirmations and/or reconciliation, if any.

10 All current assets are stated at values realizable in the ordinary course of business and known liabilities are properly provided for in the opinion of the Board.

11 Sundry credit balances written back (net) amounting to Rs.73,952/- are includes sundry debit balances written off amounting to Rs.48,854/- (in previous year sundry credit balance written back (net) amounting to Rs.5,82,997/- are includes sundry debit balances written off amounting to Rs.3,72,057/-)

12 Prior period adjustment (Net) amounting to Rs.65,213/- {Previous year Rs. 1,52,436/-)} includes income of Rs.NIL /- (Previous year Rs. 16,249 /-) and expenses Rs.1,68,685/- (Previous year Rs. 1,68,685/-)

13 During the year, the Company has reviewed its fixed assets for impairment loss as required by Accounting Standard 28 "Impairment of Assets". In the opinion of management no provision for impairment loss is considered necessary

14 Previous year's figures have been re-grouped, reworked, rearranged and reclassified wherever necessary to confirm to this year's classification. Amounts and other disclosures for the preceding year are included as an integral part of current year financial statements.

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Mar 31, 2011

1 SEGMENT INFORMATION:

The Company's operations predominantly relates to manufacturing of " FIBC's, Jumbo Bags and Woven Sacks", Hence there is no separate reporting segment as per Accounting Standard 17 "Segment Reporting" as issued by The Institute of Chartered Accountants of India.

2 GRATUITY:

In accordance with AS-15 (revised 2005), "Employee Benefits", the Company has provided the liability on actuarial basis carried out by an independent actuary.

3 CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

a) MSEB Liability approx Rs.13,00,000 (Previous Year Rs. 13,00,000)

b) Central Excise Liability Rs. NIL (Previous Year Rs.5,00,000)

c) Letter of Credit of Rs.2,17,96,871 (Previous Year Rs.1,49,96,176)

d) Interest on Rs.9,29,218 approx on disputed lease finance

e) Bank Guarantee of Rs. NIL (Previous Year Rs.19,02,468)

4 Payment against suppliers for SSI and ancillary undertaking cannot be ascertained in the absence of information.

5 The Sundry Debtors, Creditors and Loans & Advances balances are subject to confirmations and / or reconciliation, if any.

6 All current assets are stated at values realizable in the ordinary course of business and known liabilities are properly provided for in the opinion of the Board.

7 Interest on lease finance from NBFC of Rs.9,29,218 had not been provided for in view of machinery not being in operation since 2000.

8 Sundry debit balances written off amounting to Rs.1,080,856/- are net of sundry credit balances written back amounting to Rs.7,627,246/- (in previous year sundry credit balance written back amounting to Rs.2,697,956/- are net of sundry debit balances written off amounting to Rs.1,663,763/-)

9 Prior period adjustment (Net) amounting to Rs.773,423/-(Cr.) {Previous year Rs. 266,789/-(Cr.)} includes income of Rs.1,037,678/- (Previous year Rs.1,142,317/-) and expenses Rs.264,255/- (Previous year Rs. 875,528/-)

10 During the year, the Company has reviewed its fixed assets for impairment loss as required by Accounting Standard 28 "Impairment of Assets". In the opinion of management no provision for impairment loss is considered necessary

11 Previous year's figures have been re-grouped, reworked, rearranged and reclassified wherever necessary to confirm to this year's classification. Amounts and other disclosures for the preceding year are included as an integral part of current year financial statements. Capital Reserve created in earlier years out of remission of principle term liability rectified to General reserve as per accounting standard and General reserve being uncommitted had been transferred to Profit & loss account.

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Mar 31, 2010

1. CONTINGENT LIABILITIES NOT PROVIDED FOR

a. MSEB Liability approx. Rs. 13,00,000. (Previous year Rs. 13,00,000)

b. Central Excise approx. Rs. 5,00,000. (Previous year Rs. 11,00,000)

c. Letter of Credit of Rs. 1,49,96,176 (Previous year Rs. 50,62,583)

d. Interest of Rs.9,29,218 approx on disputed lease finance (Refer Note.No.18)

e. Bank Guarantee of Rs. 19,02,468. (Previous year Rs. NIL)

2. SEGMENT INFORMATION

There is no reportable segment as per Accounting Standard 17 issued by Institute of Chartered Accountant of India..

3 Payment against suppliers for SSI and ancillary undertaking cannot be ascertained in the absence of information.

4 The Sundry Debtors, creditors and Loans & advances balances are subject to confirmations and/or reconciliation, if any.

5 All current assets are stated at values realizable in the ordinary course of business and known liabilities are properly provided for in the opinion of the Board.

6 Interest on lease finance from NBFC of Rs.9,29,218 had not been provided for in view of machinery not being in operation since 2000

7 Previous years figures have been re-grouped, reworked, rearranged and reclassified wherever necessary to confirm to this years classification. Amounts and other disclosures for the preceding year are included as an integral part of current year financial statements.