schedulevi format abc

7/29/2019 Schedulevi Format ABC

1/24

ABC LIMITEDBalance Sheet as at September 30, 2012

Note September 30, 2012 September 30, 2011

I EQUITY AND LIABILITIES

1 Shareholders Funds

(a) Share capital 1 179,303,740 179,303,740(b) Reserves and surplus 2 (439,802,591) (336,752,061)

(260,498,851) (157,448,321)2 Non-current liabilities

(a) Long-term borrowings 3 47,162,991 230,032,735(b) Long-term provisions 4 4,606,655 5,828,447

51,769,646 235,861,1823 Current liabilities

(a) Short-term borrowings 5 262,897,831 245,573,792

(b) Trade payables 6 178,938,815 174,632,293(c) Other current liabilities 7 325,632,815 112,563,249

(d) Short-term provisions 8 904,864 1,179,817768,374,325 533,949,151

559,645,120 612,362,012

II ASSETS

1 Non-current assets

(a) Fixed assets

(i) Tangible assets 9 307,764,317 347,211,380(ii) Capital work in progress 9 372,830 -

(b) Deferred tax assets (net) 10 - -(c) Long-term loans and advances 11 4,065,407 4,050,700

312,202,554 351,262,0802 Current assets

(a) Current investments 12 408,000 410,500(b) Inventories 13 154,013,655 121,461,075

(c) Trade receivables 14 8,899,224 44,737,482(d) Cash and Bank Balances 15 4,419,025 5,730,457(e) Short-term loans and advances 16 79,702,662 88,760,418

247,442,566 261,099,932

559,645,120 612,362,012

Signif icant accounting policies and other notes to account 24

The notes are an integral part of these financial statements

As per our report of even date

Chartered Accountants For and on behalf of the Board of Directors of

Director

Partner

Place:Date:

Amount in Rupees

Particulars


2/24


3/24

ABC LIMITED

Cash Flow Statemet For the Year ended September 30, 2012 Amount in Rupees

Particulars September 30, 2012 September 30, 2011

A. CASH FLOW FROM OPERATING ACTIVITIES

Net Loss before tax (103,050,530) (187,316,091)

Add/Less : Adjustments

Interest paid 91,111,369 34,068,740

Depreciation 41,532,343 22,535,639

Interest Received (1,131,280) (862,416)

(Profit) / Loss on Revaluation of Current Investment 2,500 89,500

(Profit) / Loss on Fixed Assets Sold (29,571) -OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 28,434,831 (131,484,628)

ADJUSTMENT FOR :

Trade & Other Receivables 44,803,043 (29,248,021)

Inventories (32,552,580) 168,447,478

Trade and Other Payables (10,639,105) 106,856,520CASH GENERATED FROM OPERATIONS 30,046,189 114,571,349

Income tax paid (Net of Refund) 78,264 (86,242)NET CASH FLOW FROM OPERATING ACTIVITIES 30,124,453 114,485,107

B. CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (2,766,162) (2,529,186)

Proceeds from the Sale of Fixed Assets 337,623 -

Interest Received 1,131,280 862,416NET CASH FLOW USED IN INVESTING ACTIVITIES (1,297,259) (1,666,770)

C. CASH FLOW FROM FINANCING ACTIVITIES

Increase / (Repayment) in borrowings 10,172,677 (73,081,990)

Interest Paid (40,311,303) (37,623,740)

NET CASH USED IN FINANCING ACTIVITIES (30,138,626) (110,705,730)

Net Increase / (Decrease) in Cash and Cash Equivalents (A+B+C) (1,311,432) 2,112,607

Cash and Cash Equivalents as at Beginning of the Year 5,730,457 3,617,850

Cash and Cash Equivalents as at End of the Year 4,419,025 5,730,457

Notes:

1. The above Cash Flow Statement has been prepared under the 'Indirect Method ' set out in Accounting Standard 3-

Cash Flow Statement referred to in The Companies Accounting Standard Rules, 2006.

2. Cash and cash Equivalents represent cash and bank balances only.

As per our report of even dateForB.R.Shah & Associates

Firm Registration No: 129053WChartered Accountants

Bharat R. Shah

Partner

Membership No : 5806

Charulata Kabra

Company Secretary

Place: Ahmedabad

Date: November 29, 2012


4/24

ABC LIMITED

Notes '1' to '24' annexed to and forming part of the Balance Sheet as at and Statement of Profit and Loss for the year

ended September 30, 2012.

1 Share Capital Amount in Rupees

(a) Details of authorised, issued, subscribed and fully paid up shares

Particulars

Number Amount Number Amount

18,500,000 185,000,000 18,500,000 185,000,000

17,930,374 179,303,740 17,930,374 179,303,740

17,930,374 179,303,740 17,930,374 179,303,740

(b) Terms/rights attached to equity shares

The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for onevote 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 proportion to their shareholding.

(c) Details of shareholders holding more than five percent of shares

No. of

Shares held

% of Holding No. of Shares

held

% of Holding

4,008,929 22.36% 489,065 2.73%3,314,291 18.48% 3,314,291 18.48%

B.T Investments Pvt Ltd 1,528,150 8.52% 1,528,150 8.52%Jainex Securities Pvt.Ltd 1,500,000 8.37% 1,500,000 8.37%Cosmos Resources Pvt Ltd 1,326,429 7.40% 1,326,429 7.40%Magenta Nirman Pvt Ltd 1,000,000 5.58% 1,000,000 5.58%

E T Resources Pvt Ltd 422,895 2.36% 1,822,895 10.17%

2 Reserves and Surplus Amount in Rupees

September 30, 2012 September 30, 2011

a. Capital Reserves 2,500,000 2,500,000

b. Securities Premium Account 25,000,000 25,000,000

c. General Reserves 186,152,937 186,152,937

d. Surplus: Opening balance (550,404,998) (233,043,608)

Add: Profit / (Loss) transferred from Statement of Profit and Loss (103,050,530) (317,361,390)Closing Balance (653,455,528) (550,404,998)

(439,802,591) (336,752,061)

As at

September 30, 2011

Equity Shares of Rs. 10 each

Authorised

September 30, 2012

Issued, Subscribed and Paid up

Equity Shares of Rs. 10 each fully paid

As atParticulars

Name of Shareholder September 30, 2012 September 30, 2011


5/24

ABC LIMITEDNotes '1' to '24' annexed to and forming part of the Balance Sheet as at and Statement of Profit and Loss for the

year ended September 30, 2012.

3 Long-Term Borrowings Amount in Rupees


(A) I.D.B.I. Rupee Term Loan(A)&(B) - 78,825,000

S.B.I. Rupee Term Loan(A)&(B) - 66,250,000

S.B.I. Corporate Loan(A)&(B) - 6,000,000

I.D.B.I. Rupee Term Loan (WCTL)(A)&(B) - -

S.B.I. Rupee Term Loan (F.I.T.L.)(A)&(B) - 33,000,000

(B) HDFC Bank Ltd. - Car Loan(C) - -

- 184,075,000

47,162,991 45,957,735

47,162,991 45,957,735

47,162,991 230,032,735

(i) Nature of Security

(ii) Terms of Re-payment of Loan

Particulars Original Loan Amount

I.D.B.I. Rupee Term Loan150,000,000

I.D.B.I. Rupee Term Loan (WCTL)30,000,000

S.B.I. Rupee Term Loan115,800,000

S.B.I. Corporate Loan30,000,000

S.B.I. Rupee Term Loan (F.I.T.L.)47,000,000

HDFC Bank Ltd. - Car Loan450,000

HDFC Bank Ltd. - Car Loan460,000

(B) Loans are guaranteed by the Manging Director.

36 Monthly Installment of varying amount starting fromMarch, 2009 interest rate 11.47%

10 Quarterly Installment of equal amount starting fromDecember, 2010 interest rate 15.75%

24 Quarterly Installment of varying amount starting

from June, 2010 interest rate 12.75%

32 Quarterly Installment of varying amount startingfrom October, 2007 interest rate 10.25%

32 Quarterly Instalment of varying amount starting from

December, 2007 interest rate 15.25%

Repayment Terms

18 Monthly Installment of varying amount starting from,April 2010 interest rate 15.25%

(C) Secured by Hypothecation of Motor cars purchased against said loans.

36 Monthly Installment of varying amount starting from

May, 2009 interest rate 11.48%

I Secured

Term loans from banks

(A) Secured against joint equitable mortgage of all immovable properties both present and future ranking pari passu inter se

and Hypothecation of all movable properties both present and future (Save and Except Book Debts) including movablemachinery, machinery spares, tools and accessories, subject to prior charge created and/or to be created in favour ofCompany's Bankers for Working Capital Facilities.

Term loans from related parties (interest free)

II Unsecured

As atParticulars


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(iii) Details of continuing default as on the balance sheet date in repayment of loans

- -

Particulars

Outstanding Since Period of Default as on

September 30, 2012 (In

days)

Amount of Default -

Loan Rupees

IDBI - Rupee Loan Oct-11 366 5,400,000Jan-12 274 5,400,000

Apr-12 183 5,400,000Jul-12 92 5,400,000

SBI - Rupee Loan Sep-11 367 2,650,000Dec-11 275 3,750,000Mar-12 184 3,750,000Jun-12 93 4,250,000Sep-12 1 4,250,000

S.B.I. Corporate Loan Sep-11 367 3,000,000Dec-11 275 3,000,000Mar-12 184 3,000,000Jun-12 93 3,000,000Sep-12 1 3,000,000

S.B.I. - Rupee Loan (FITL) Sep-12 1 1,500,000I.D.B.I. Line Of Credit Aug-11 427 5,000,000

Sep-11 396 5,000,000Aug-11 427 1,670,000Sep-11 396 1,610,000

Total Principle amount 70,030,000

Interest Accrued and due on above loans 46,680,987

Total 116,710,987

(iv) During the year State Bank of India has recalled the loan on account of breach of loan covenant, while the

company has made default in repayment of term loan from IDBI Bank, so the same loans have been classified as

current maturities of long term borrowings for the current year. Interest has been provided as per last communicated

rates or at the rate debited by Bank.

4 Long Term Provisions Amount in Rupees


Unavailed Leave 1,914,294 1,030,676

2,692,361 4,797,771

4,606,655 5,828,447

5 Short Term Borrowings Amount in Rupees


- 46,030,001

90,016,384 56,148,069

I.D.B.I. Line Of Credit 10,000,000 15,000,000

44,881,447 55,395,722

144,897,831 172,573,792

(a) Term loans from related parties 84,000,000 29,000,000(b) Term loans from other parties 34,000,000 44,000,000

118,000,000 73,000,000

262,897,831 245,573,792

As at

I Secured(i) & (ii)

Loan from Banks

Particulars

S.B.I. (Export Packing Credit)

State Bank of India

II Unsecured

As at

S.B.I. (P.C.F.C.)

Provision for employee benefits

Gratuity (Refer note 24(1)(h) & 24(2)(g))

I.D.B.I. Rupee Term Loan (WCTL)


7/24



Nature of Security

(iii) Terms of Re-payment of Loan

Particulars

I.D.B.I. Line Of Credit

State Bank of IndiaS.B.I. (Export Packing Credit)

S.B.I. (P.C.F.C.)Repayable on demand

6 Monthly Installment of equal amount starting fromApril, 2011 Interest rate 15.25%

Repayable on demand

(ii) Loans are guaranteed by the Manging Director

Repayment Terms

(i) Secured by hypothecation of all tangible assets including movable machinery, stock in trade, stores, book debts, etc and

second charge on entire fixed assets, present and future, and guaranteed by Managing Director.

Repayable on demand


8/24

ABC LIMITEDNotes '1' to '24' annexed to and forming part of the Balance Sheet as at and Statement of Profit and

ended September 30, 2012.

6 Trade Payables

September 30, 2012

Payable to Micro, Small and Medium Enterprises(1) -Payable to Others

178,938,815

178,938,815

7 Other Current Liabilities

September 30, 2012

(a) Current maturities of long-term debt

Term loans from banks(1)

(A) I.D.B.I. Rupee Term Loan 100,425,000S.B.I. Rupee Term Loan 84,900,000S.B.I. Corporate Loan 21,000,000I.D.B.I. Rupee Term Loan (WCTL) 3,280,000S.B.I. Rupee Term Loan (F.I.T.L.) 34,499,895

(B) HDFC Bank Ltd. - Car Loan -

244,104,895

(b) Interest accrued and due on borrowings 52,541,282(c) Accrued Salaries and benefits

Salaries 10,834,776Contribution of Provident and other funds 568,064

11,402,840(d) Other payables

Statutory Obligation 1,878,917

Advance from Customers 6,354,387

Others Payable(2)

9,350,494

17,583,798

325,632,815

(1) For disclosure regarding, Security, amount guaranteed by directors and others, repayment terms

amount of continuing defaults, refer Note 3.

(2) Includes Rs. 25,000/- (Previous Year 25,000) payable to Director.

8 Short Term Provisions

September 30, 2012

Provision for employee benefits

Unavailed Leave 250,983Gratuity (Refer note 24(1)(h) & 24(2)(g)) 653,881

904,864

AsParticulars

(1) The Company has not received any intimation from the suppliers regarding status under the MicrEnterprises Development Act, 2006 (The Act ) and hence disclosures regarding : a) Amount due and

suppliers as at the accounting period, b) Interest paid during period, c) Interest payable at the end ofperiod and d) Interest accrued at the end of accoutning period, has not been disclosed or provided.

As

As

Particulars

Particulars


9/24

oss for the year

Amount in Rupees

September 30, 2011

-

174,632,293

174,632,293

Amount in Rupees

September 30, 2011

27,000,000

19,750,000

15,000,000

4,950,000

1,500,000

186,513

68,386,513

1,741,216

10,918,985

1,735,803

12,654,788

590,885

3,565,109

25,624,738

29,780,732

112,563,249

of loan and

Amount in Rupees

September 30, 2011

1,179,817

-

1,179,817

at

, Small & Mediumoutstanding to

the accounting

at

at


10/24

ABC LIMITED

Notes '1' to '24' annexed to and forming part of the Balance Sheet as at and Statement of Profit and Loss for the year ended September 30, 2012.

9 Fixed Assets

As at October

1, 2011

Additions

during the

year

Disposal As at

September 30,

2012

As at October

1, 2011

For the year On disposals As at

September 30,

2012

Sep

Tangible Assets

Land 4,076,694 - - 4,076,694 - - - -

Buildings(1) 189,352,993 1,329,933 - 190,682,926 46,432,836 5,449,708 - 51,882,544 1

Plant and Equipment 791,307,982 702,206 1,906,759 790,103,429 595,805,473 35,153,601 1,811,421 629,147,653 1

Furniture and Fixtures 3,286,989 226,786 - 3,513,775 2,437,492 352,834 - 2,790,326

Vehicles 5,544,847 58,357 843,056 4,760,148 3,376,720 373,964 630,342 3,120,342

Office equipment 5,281,078 76,050 - 5,357,128 3,586,682 202,236 - 3,788,918

998,850,583 2,393,332 2,749,815 998,494,100 651,639,203 41,532,343 2,441,763 690,729,783 3

Capital work in progress - 372,830 - 372,830 - - - -

Previous period 997,221,322 1,629,261 - 998,850,583 629,103,564 22,535,639 - 651,639,203 3

(1) Buildings include cost of Ownership Premises Rs.71,37,356/- ( Previous period Rs.71,37,356/- ) and cost of Shares in Co-operative Society Rs.2,00

period Rs.2,000/-)

Gross Block Depreciation

Particulars


11/24

ABC LIMITEDNotes '1' to '24' annexed to and forming part of the Balance Sheet as at and Statement of Profit and L


10 Deferred Tax Assets

As at Charge/ Credit

September 30, 2011 During the year

Deferred Tax Assets on Account of FollowingDepreciation (Including unabsorbed) (5,149,845) (15,648,720)

Provision for Bonus 1,569,295 334,780

Provision for Gratuity 1,482,511 (396,823)

Provision for Leave Encashment 683,041 19,483

Provision for Super Annuation Fund 1,414,998 (1,355,740)

Interest on Term Loan - 17,047,019

Deferred Tax (Assets) / Liabilities (Net) - -

(i) At present Companys net worth is fully eroded and further considering the present scenario preva

Industry Management is of the view that there is no virtual certainty of future profitability which can ab

depreciation in near future. In view of this Management has decided to recognized the Deferred tax As

extent of Deferred tax Liabilities.

11 Long Term Loans and Advances

September 30, 2012

Capital Advances 4,050,700

Prepaid Expenses 14,707

4,065,407

12 Current Investments

September 30, 2012

Current Investment(1)

Investments in Mutual Funds - SBI InfrastructureFund

500,000

Less: Provision for decrease in value on account of revaluation 92,000

408,000

(1) Valued at lower of cost or fair value

AsParticulars

Particulars

ParticularsAs


12/24

ss for the

Amount in Rupees

As at

September 30, 2012

(20,798,565)

1,904,075

1,085,688

702,524

59,258

17,047,019

-

iling in Textile

orb unabsorbed

sets only to the

Amount in Rupees

`

September 30, 2011

4,050,700

-

4,050,700

Amount in Rupees

September 30, 2011

500,000

89,500

410,500

at

at


13/24

ABC LIMITEDNotes '1' to '24' annexed to and forming part of the Balance Sheet as at and Statement of Profit and Loss

for the year ended September 30, 2012.

13 Inventories Amount in Rupees

Inventories September 30, 2012 September 30, 2011

a. Raw Materials and components(1) 78,908,944 34,810,636

b. Work-in-progress(1)

27,282,853 31,350,156c. Finished goods(1) 32,642,408 40,681,889

d. Stores and spares(1) 10,992,478 11,634,920

e. Waste(2)

4,186,972 2,983,474

154,013,655 121,461,075

(1) Valued at cost or net realizable value whichever is lower

(2) At Net realisable value

Details of inventory


i) Goods manufactured

Yarn/Knitted Fabrics 32,642,408 40,681,889

ii) Work-in-progress

Yarn/Knitted Fabrics 27,282,853 31,350,156

14 Trade Receivables Amount in Rupees


Unsecured, considered good

Outstanding for a period exceeding six months from the date they

become due for Payment - 61,854

Other receivables 8,899,224 44,675,628

8,899,224 44,737,482

15 Cash and Bank Balances Amount in Rupees


Cash and Cash Equivalents

Cash on hand 404,061 375,430

Balances with banks

In Current Accounts 3,795,017 5,355,027In Fixed Deposit Accounts 219,947 -

4,419,025 5,730,457

As at

As at

As at

As at


14/24



16 Short term loans and advances Amount in Rupees


Others - Unsecured, considered good

Prepaid Expenses 385,094 767,873

Deposits 19,904,522 17,875,947

Amount with Government Authorities 43,934,480 35,821,555

Advances to suppliers 1,506,491 3,615,676

Advances to staff 704,119 996,505

Advance Income Tax 638,978 717,242

Others 12,628,978 28,965,620

79,702,662 88,760,418

As at


15/24


Loss for the year ended September 30, 2012.

17 Revenue from Operation Amount in Rupees

Particulars

Year ended on

September 30,

2012

Six Months period

ended on

September 30,

2011

Sale of Products 1,227,163,117 462,004,697

Sale of Services 939,461 -

Other operating revenues

Export Benefits received 3,886,225 24,179,087

Scrap Sales 739,028 307,426

4,625,253 24,486,513

1,232,727,831 486,491,210

Details of Goods Sold

Yarn/Knitted Fabrics 1,092,618,234 412,998,864

Others 134,544,883 49,005,833

1,227,163,117 462,004,697

18 Other Income Amount in Rupees

Particulars

Year ended on

September 30,

2012

Six Months period

ended on

September 30,

2011

Interest Income 1,131,280 862,416

Exchange Rate Difference 3,705,819 3,153,118

Liabilities / Provision no longer required 549,338 -

Surplus on sale of fixed assets (net) 29,571 -

Other non-operating income 647 1,983

Service tax Refund 7,733 -

5,424,388 4,017,517


16/24


Loss for the year ended September 30, 2012.

19 Cost of materials consumed Amount in Rupees

Particulars

Year ended on

September 30,

2012

Six Months period

ended on

September 30,

2011

Raw Material Consumption

Opening Stock 34,810,636 101,102,198

Add: Purchases 914,735,181 325,045,491

Less: Closing Stock 78,908,944 34,810,636

Total Cost of Material Consumed 870,636,873 391,337,053

Details of Raw Material Consumed

Cotton 870,636,873 391,337,053

870,636,873 391,337,053

20 Changes in inventories of finished goods and work-in-progress Amount in Rupees

Particulars

Year ended on

September 30,

2012

Six Months period

ended on

September 30,

2011

Changes in Inventory

Work-in-progress

Opening 31,350,156 45,927,858

Closing 27,282,853 31,350,156

Finished goods

Opening 43,665,363 132,302,362

Closing 36,829,380 43,665,363

(Increase) / Decrease in Inventory 10,903,286 103,214,701

21 Employee Benefit Expenses Amount in Rupees

Particulars

Year ended on

September 30,

2012

Six Months period

ended on

September 30,

2011

Salaries and incentives 70,934,602 27,630,028

Contributions to Provident and other funds 6,383,766 4,388,146

Staff welfare expenses 3,896,154 1,477,994

81,214,522 33,496,168


17/24

ABC LIMITEDNotes '1' to '24' annexed to and forming part of the Balance Sheet as at and Statement of

Profit and Loss for the year ended September 30, 2012.

22 Finance Costs Amount in Rupees

Particulars

Year ended on

September 30,

2012

Six Months period

ended on

September 30,

2011

Interest expense 89,361,807 31,887,158

Other borrowing costs 1,749,562 2,181,582

91,111,369 34,068,740

23 Other expenses Amount in Rupees

Particulars

Year ended on

September 30,

2012

Six Months period

ended on

September 30,

2011

Other Expenses

Consumption of Store materials 20,433,960 6,543,373

Power and Fuel 157,671,156 50,216,052

Repairs to buildings 578,785 385,283

Repairs to machinery 26,113,156 8,714,856

Repairs to others 1,204,304 306,409

Insurance 621,845 335,905

Rates and Taxes 262,156 132,790

Commission and discount 13,501,065 7,440,078

Freight and despatch charges 6,224,627 11,079,062

Travelling and conveyance 4,123,623 367,145Vehicle Expenses 2,487,441 1,099,666

Director's Sitting Fees 230,000 80,000

Sundry Balances Written Off 63,445 -

Payment to Auditors (Refer note 24(2)(d)) 212,197 127,949

Provision for Diminutions in the value of Investment 2,500 89,500

Miscellaneous Expenses 12,074,096 6,254,447

245,804,356 93,172,515


18/24

ABC LIMITED

Notes '1' to '24' annexed to and forming part of the Balance Sheet as at and Statement of Profit and Loss for the


24 Significant accounting policies and other notes to account

gn cant ccount ng o c es

a Basis of Accounting

The financial statements have been prepared to comply in all material respects with the Accounting Standardsnotified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of theCompanies Act, 1956. The financial statements have been prepared under the historical cost convention on an

accrual basis. The accounting policies have been consistently applied by the Company and are consistent withthose used in the previous year.

All assets and liabilities have been classified as current or non-current as per the Companys normal operatingcycle and other criteria set out in the schedule VI to the Companies Act, 1956. Based on the nature of productsand the time between the acquition of assets for processing and their realization in cash and cash equivalents,the Company has ascertained its operating cycle as 12 months for the purpose of current non currentclassification of assets and liabilities.

b Fixed Assets and Depreciation

Fixed Assets :

Fixed Assets are stated at cost / book value less depreciation and net of cenvat and subsidy except on

freehold land.

Depreciation :

(i) Depreciation is being provided on Straight Line Method in terms of Section 205(2) (b) of the CompaniesAct, 1956 at the rates and in the manner specified in Schedule XIV to the said Act.(ii) In respect of assets acquired/sold during the year, depreciation has been provided on pro-rata basis.

c nvestments :

All long term investments and are stated at cost unless there is a permanent fall in the value of Investments.All current investment are stated at cost or realisable value which ever is lower.

d Inventories :

(i) Stores and spares are valued at cost. Cost is arrived at on F.I.F.O. basis.(ii) Raw materials are valued at cost or net realisable value whichever is lower. Cost is arrived at on the basis

of cost of respective lots remaining in stock and related expenses.(iii) Materials in Process is valued at cost (*) or net realisable value whichever is lower.

(iv) Yarn and Knitted Fabrics are valued at cost(*) or net realisable value whichever is lower.

*(v) Cost of Valuation of materials in process and yarn has been arrived at 'by adding direct cost & relevantoverhead cost' in accordance with the revised Accounting Standard(AS-2) "Valuation of Inventories".

(vi) Waste is valued at estimated realisable value.(vii) Materials in transit are valued at cost to date of the Balance Sheet.

e Exchange Fluctuations

Monetary Current Assets and Liabilities in foreign currency outstanding at the close of the financial year are

valued at the appropriate exchange rates at the close of the year. The loss or gain due to fluctuation ofexchange rates is charged to Statement Profit & Loss.

f Revenue Recognition

(i) Sale of goods is recognised at the point of transfer of significant risk and rewards to the customers.

(ii) Benefit on account of entitlement to import goods free of duty under the "Duty Entitlement Pass Book under

the Duty Exemption Scheme" and "Duty Draw Back Scheme" are accounted in the year of export.

g Government Grants and Subsidy

Revenue Grants and Subsidy received during the year have been shown by way of deduction from relatedexpenses.


19/24

ABC LIMITED

Notes '1' to '24' annexed to and forming part of the Balance Sheet as at and Statement of Profit and Loss for the


h Employee Benefits

(i) Defined Contribution Plan:

The Company has defined contribution plans in the form of Provident Fund, Pension Scheme, EDLI, SuperAnnuation Fund and Labour Welfare Fund and the contributions are charged to the Statement of Profit and Loss

of the year when the contribution to the respective funds are due. There are no other contributions other than thecontributions payable to the respective funds.

(ii) Defined Benefit Plan:

Fund Plan: The Company has defined benefit plans in the form of Gratuity, the liability for which isdetermined on the basis of acturial valuation at the end of the year. Gains and losses arising out of acturial

valuation are recognised immediately to the Statement of Profit and Loss as income or expense.

Unfunded Plan: The Company has unfunded Defined Benefit Plans in the form of Compensated Absences,

as per Company Policy.

(iii) Other Defined Benefits

Provision for other defined benefit for long term leave encashment is made based on an independent

actuarial valuation on projetced unit credit method at the end of each financial year. Acturial gain and losses

are recognised immediately in the Statement of Profit and Loss Account as income or expenses.Company recognised the undiscounted amount of short term employee benefits during the accounting period

based on service rendered by an employee.

i Borrowing Cost

Borrowing costs in relation to acquisition and construction of assets are capitalised as part of the cost ofsuch assets up to the date when such assets are ready for intended use. Other borrowing costs are

charged as an expense in the year in which these are incurred.

j Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred

Tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timingdifferences,being the difference between taxable income and accounting income that originate in one

period and are capable of reversal in one or more subsequent periods.

k Impairment of Assets:

The carrying amounts of assets are reveiwed at each Balance Sheet date if there is any indication of

impairment based on internal/external factors. An Impairment loss will be recognised wherever the carryingamount of an asset exceeds its recoverable amount. The recoverable amount is greater of the assets netselling price and value in use. In assessing value in use, the estimated future cash flows are discounted to the

present value by using weighted average cost of capital.


20/24



2 Other Notes to Accounts

(a) Contingent liabilities and commitments (to the extent not provided for)


335,231 228,950

- 80,300,066

335,231 80,529,016

42,345,734 41,495,104

42,345,734 41,495,104

42,680,965 122,024,120

(b) As of the Balance Sheet date, the Company's net foreign currency exposures that are nothedged by a derivative instrument or otherwise is as follows


Trade Receivable USD - $622,847

INR - 30,625,986

(c) Segment Reporting

Amount in Rupees

Secondary Segment- Geographical by location of

customers September 30, 2012 September 30, 2011

Sales & Operating Income

In India 1,138,586,069 163,245,202

Outside India 94,141,762 323,246,008

1,232,727,831 486,491,210

Carrying cost of Assets by Location

In India 559,645,120 581,736,026

Outside India - 30,625,986

559,645,120 612,362,012Capital Expenditure

In India 2,766,162 1,629,261

Outside India - -

2,766,162 1,629,261

In accordance with the requirements of Accounting Standard 17 - " Segment Reporting' the Company has determined

its business segment as Textile Products. Since 100% of the Companys' business is from Textile Products, there areno other primary reportable segments. Thus the segment revenue, segment results, total carrying amount of segmentliabilitites, total cost incurred to acquired segment assets, the total amount of charge for depreciation and amortisation

during the year are all as reflected in the financial statements for the year ended September 30, 2012 and as on that

date.

ParticularsAs at

(i) Contingent Liabilities(a) Claims against the company not acknowledged as debt - LabourMatters

(b) Bills Discounted (Since Realised)

(ii) Commitments

Estimated amount of contracts remaining to be executed on capitalaccount and not provided for

As at

As at


21/24



(d) Payment to Auditors Amount in Rupees


a. for audit services 100,000 75,000

15,000 -63,500 24,000

d. expenses - 1,980

178,500 100,980

Cost Auditor

a. Cost audit fees 32,318 25,590

b. for reimbursement of expenses 1,379 1,379

33,697 26,969

212,197 127,949

(e) Earning Per Share Amount in Rupees


Loss for the year attributable to the Equity Shareholders (103,050,530) (317,361,392)

Basic/weighted average number of Equity Shares outstanding

during the year 17,930,374 17,930,374

Nominal Value of Equity Share Rs. 10/- Rs. 10/-

Basic and diluted earning per Share (Rs.5.75) (Rs.17.70)

Particulars

As at

Particulars

Auditor

b. for taxation mattersc. for other services


22/24

ABC LIMITEDNotes '1' to '24' annexed to and forming part of the Balance Sheet as at and Statement of Profit and Loss for

the year ended September 30, 2012.

(f) Other Details

Amount in Rupees

Amount % Amount %

Indigenous 870,636,873 100.00 391,337,053 100.00

870,636,873 100.00 391,337,053 100.00

Amount in Rupees

Amount % Amount %

Imported 3,118,519 12.85 1,467,929 18.13

Indigenous 21,157,806 87.15 6,626,652 81.87

24,276,325 100.00 8,094,581 100.00

Amount in Rupees


Spare Parts 2,861,415 1,528,062

2,861,415 1,528,062

Amount in Rupees


Travelling 1,436,093 -

Bank Charges 374,886 374,990

Commission 459,947 2,302,661

2,270,926 2,677,651

Amount in Rupees


F.O.B. Value of Exports 92,680,013 318,464,639

92,680,013 318,464,639

(vi) Export sales Amount in Rupees


Direct Exports 94,141,762 323,246,008

Through Export House 735,451,958 25,332,652

829,593,720 348,578,660

September 30, 2011

(iii) Value of Imports on C.I.F. Basis

September 30, 2011

(iv) Expenditure in Foreign Currency

(v) Earnings in Foreign Currency

(i) Value of Raw Materials Consumed

September 30, 2012

(ii) Value of Spares Consumed

September 30, 2012


23/24

ABC LIMITED

Notes '1' to '24' annexed to and forming part of the Balance Sheet as at and Statement of Profit and Loss for the year

ended March 31, 2012.

a.

b. Amount in Rup

i.


a. Present value of Defined Benefit obligation at the beginning of the year 10,083,368 9,148,5

b. Interest cost 806,669 365,9

c. Current service cost 999,646 566,7

d. Actuarial Losses/(Gains) (78,148) 818,7

e. Benefits paid (2,892,967) 816,6

f. Present value of Defined Benefit Obligation at the close of the year 8,918,568 10,083,3

ii.

a. Fair value of Plan Assets at the beginning

of the year 5,285,597 5,661,3

b. Add: Expected return on Plan Assets 466,118 240,8

c. Add/Less: Actuarial Losses/(Gains) 313,578 d. Add: Contributions 2,400,000 200,0

e. Less: Benefits Paid (2,892,967) 816,6

f. Fair value of Plan Assets at the close of the year 5,572,326 5,285,5

iii.

a. Present value of Defined Benefit obligation 8,918,568 10,083,3

b. Less: Fair value of plan Assets 5,572,326 5,285,5

c. Present value of unfunded obligation 3,346,242 4,797,7

d. Net Liability/(Asset) recognised in the Balance sheet 3,346,242 4,797,7

iv.

a. Current Service Cost 999,646 566,7

b. Interest Cost 806,669 365,9

c. Expected return on Plan Assets (466,118) 240,8

d. Actuarial Losses/(Gains) (391,726) 818,7

e. Past services costs -

f. Effect of Curtailment/settlement -

g. Adjustments for earlier years -

h. Recognised in the Statement of Profit and Loss 948,471 1,510,5

v.

a. Discount Rate 8.25%

b. Expected rate of return on Plan Assets 9.25%

c. Salary Escalation rate- Management Staff 3%

d. Salary Escalation rate- Non Management Staff 3%

vi.

a. Defined Benefit Obligation 8,918,568 10,083,3

b. Plant Assets 5,572,326 5,285,5

c. (Surplus) / Deficit 3,346,242 4,797,7

d. Experience adjustments on plan liabilities (gain) / loss 120,833 818,7

e. Experience adjustments on plan assets (gain) / loss (313,578)

Experience adjustment is on account of attrition in number of employees as compared to the previous year and

changes in actuarial assumptions.

vii. Amount recognised as an expense in respect of Compensated Leave Absences is Rs 11,34,601/- (Previous

period Rs. 4,62,009/-)

Reconciliation of opening and closing balances of the Present Value of the Defined Benefit Obligation:

Experience Adjustments

(g) Disclosure pursuant to Accounting Standard - 15 (Revised) "Employee Benefits":

Defined Contribution Plans:

Amount of Rs. 54,35,295/- (Previous period 28,77,557/-) is recognised as expense and included in "Employee benefits expenses" in N- 21 to the Statement of Profit & Loss.

Defined Benefit Plans:

Actuarial Assumptions at the Balance sheet date:

The Estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and otherrelevant factors.

Particulars

Gratuity as at

Changes in the fair value of Plan Assets and the reconciliation thereof:

Amount Recognised in the Balance sheet including a reconciliation of the present value of the defined obligation in (i) and the fair valu

the plan assets in (ii) to assets and liabilities recognised in the Balance Sheet.

Amount recognised in the Statement of Profit and Loss are as follows:


24/24



(h) Related Party Disclosures

Related party disclosures, as required by AS-18 are given below:

1.Relationships:

(i) Key Management Personnel and their relatives :

significant influence :

2.The following transactions were carried out with the related parties in the ordinary course of business:

Details relating to parties referred to in item 1(i) and 1(ii) above:

Amount in Rupees

Particulars In Relation to In Relation to In Relation to In Relation to

Item 1(i) Item 1(ii) Item 1(i) Item 1(ii)

Intercorporate Loan Repaid

Intercorporate Loan Received

Remuneration

Interest Paid

Outstanding Balances at the end

(i) The Company has decided to file an appeal u/s 25(1) the Sick Industrial Companies (Special Provisions)

Act,1985 against the order passed by the Board of Industrial and Financial Reconstruction (BIFR) for reference

bearing no.3/2012 filed u/s 15(1) of the SICA,1985 on 13/01/2012.

(j) The Company has incurred accumulated loss of Rs.65,34,55,528/- as on September 30, 2012, which has

resulted in erosion of its net worth by more than 100%. The Company will make a fresh reference u/s 15(1) of the

SICA,1985 along with a rehabilitation scheme to the BIFR.The Company has no specific plan for windup

operations in the near future. The Management, on the basis of Techno Economic Viability study conducted by an

approved consultant, looking into the stability in the cotton price and overall turnaround in the Textile Industry,

believes that it will have sufficient funds to meet its liability for the next twelve months and hence continue to

present its financial statements on going concern basis.

(k.) The previous period figures have been regrouped/reclassified, wherever necessary to conform to the current

year presentation. The figures for the previous period are for the period of six months and are thus not comparable

with current year figures.

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

Chartered Accountants

Director

Partner

Company Secretary

Place:

Date:


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