Notes to Accounts of Goldwon Textiles Ltd.

Mar 31, 2015

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under section 133 and the relevant provisions of the companies Act 2013.

All the assets and liabilities have been classified as current as per the company's normal operations cycle and other criteria set out in schedule III to the companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for the processing and their realization in cash and cash equivalent.

2. CONTINGENT LIABILITIES NOT PROVIDED FOR:

* in respect of Bank Guarantee Rs. Nil (previous year Rs. Nil) -

* in respect of Letter of Credit Rs. Nil (Previous year Rs. Nil)

2. Related Party Transactions: NIL

3. Earnings Per Share:

The Company has incurred a net loss of Rs.1,19, 400 /- during the year under review and hence EPS is (0.0018)

4. DIRECTORS' REMUNERATION: NIL

5. AUDITORS' REMUNERATION:

For statutory Audit: Rs. 11,400/-

6. Figures have been rounded off to the nearest rupee.

7. Unsecured loans and balances of Current liabilities are subject to confirmation.

8. Previous year figures have been regrouped or reclassified, wherever necessary, to conform to this year's classification.

9. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10/- per share .Each holder of equity shares is entitled to one vote per share The company declares and pays Dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the Approval of the share holders in the ensuing Annual General Meeting.

During the year ended 31-03-15 the amount of per share dividend recognized as distributions to equity share holders was Rs.nil.

In the event of liquidations of the company the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all Preferential amounts .The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2014

1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(Annexed to and forming part of the financial statements for the year ended 31st March, 2014)

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under section 211 (3c) and the relevant provisions of the companies Act 1956.

All the assets and liabilities have been classified as current as per the company''s normal operations cycle and other criteria set out in schedule VI to the companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for the processing and their realization in cash and cash equivalent.

2. CONTINGENT LIABILITIES NOT PROVIDED FOR:

* in respect of Bank Guarantee Rs. Nil (previous year Rs. Nil)

* in respect of Letter of Credit Rs. Nil (Previous year Rs. Nil)

3. The company had sold all its assets including land and the sale proceeds realized to the extent of Rs.85000000/- had been utilized for the part repayment of loans, including accrued interest thereof, availed from SBH and Bank of Baroda.

The balance of the Outstanding loan, amounting to Rs. 201,222,243/- is waived in terms of the OTS scheme.

As a result of the sale of all assets, the repayment of all secured loans and there being no operations, the fundamental assumption of going concern in preparation of accounts does not hold good.

4. The Company declared a Lay-Off with effect from May, 2002. Pending final settlement, no provision has been made in the books of account for terminal benefits like gratuity, bonus, and leave encashment.

5. Earnings Per Share:

The Company has incurred a net loss of Rs.3,483,081/- during the year under review and hence EPS is (0.5299)

6. D1RECTORS'' REMUNERATION: NIL

7. AUDITORS'' REMUNERATION:

For statutory Audit: Rs.30, 000/-

8. Figures have been rounded off to the nearest rupee.

9. Unsecured loans and balances of Current liabilities are subject confirmation.

10. Previous year figures have been regrouped or reclassified, wherever necessary, to conform to this year''s classification.

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Mar 31, 2013

1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(Annexed to and forming part of the financial statement for the year ended 31st March, 2013)

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under section 211(3c) and the relevant provisions of the companies Act 1956.

All the assets and liabilities have been classified as current as per the company''s normal operations cycle and other criteria set out in schedule VI to the companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for the processing and their realization in cash and cash equivalent,

2. CONTINGENT LIABILITIES NOT PROVIDED FOR:

- in respect of Bank Guarantee Rs. Nil (previous year Rs. Nil)

- in respect of Letter of Credit Rs. Nil (Previous year Rs. Nil)

3. The Company is a sick company within the meaning of section 3(1) (0) of the SICA Act 1985. The Hon''ble BIFR has declared the company as a sick company in Case No. 222/2000. Accordingly, pending approval of the rehabilitation proposal, the accounts of the company are prepared on the going concern basis.

4. Pending finalization of one time settlement with banks no interest was provided on principal outstanding loans for the year under review.

5. Secured Loans

(a) Deferred Payment Guarantee facility from State Bank of Hyderabad and Bank of Baroda is secured by Plant and Machinery and Equitable Mortgage by way of Deposit of Title deeds pertaining to Land and Buildings situated in Survey No.248 (P) Puppalaguda Village, Rajendranagar Mandal. RR Dist AP and First Charge on the whole of Current Assets having entered on 15.12.1994 a Joint Deed of Hypothecation, Facility Agreement and Deposit of Title Deeds for Rs. 448.62 Lakhs in favour of State Bank of Hyderabad, Industrial Finance Branch, Panjagutta, Hyderabad and for Rs. 299.08 Lakhs in favour of Bank of Baroda, Chanchelguda Branch, Hyderabad.

(b) The Packing Credit Loan from State Bank of Hyderabad and Bank of Baroda are secured by a first charge on all goods, book debts and movable assets of the company and the personal guarantee of some of the directors.

6 The Company declared a Lay-Off with effect from May, 2002. Pending final settlement, no provision has been made in the books of account for terminal benefits like gratuity, bonus, and leave encashment.

7. Appeal against the Arbitration awards and Decreetal orders of the Learned Single Judge are pending before the Division Bench in the High Court Judicature at Madras

8.As regards to the compliance of provision relating to the dues to the small scale industries in terms of companies (Amendment) Act, 1999 the company has sent letters to the creditors to confirm whether they are SSI Units. The company is yet to receive the confirmations from them. Hence, the company could not quantify the dues, if any, to the small-scale industries.

9. DEFERRED TAX ASSET:

Even though, the company has unabsorbed depreciation, carry forward of losses and adjustments under section 43 B of Income tax Act, 1961 deferred tax asset as per the Accounting Standard - 22 " Accounting for taxes on income" issued by the Institute of Chartered Accountants of India, has not been recognized in the Books of account as the company is 100% EOU and eligible for tax exemption u/s 10A of income tax Act, 1961 and also generation of sufficient taxable income in near future is uncertain

10. Earnings Per Share:

The Company has incurred a net loss of Rs.1, 20,364 /- during the year under review and hence EPS is (0.0183)

11. SEGMENT REPORTING:

The company''s operations predominantly comprises of only one reportable product segment i.e., knitted socks, as per Accounting standard -17 "Segment Reporting" issued by the Institute of Chartered Accountants of India.

12. DIRECTORS'' REMUNERATION: NIL

13. AUDITORS'' REMUNERATION:

For statutory Audit: Rs.28090/-

14. Figures have been rounded off to the nearest rupee.

15. Secured, unsecured loans and balances of Current liabilities are subject confirmation.

16. Previous year figures have been regrouped or reclassified, wherever necessary, to conform to this Year''s classification.

17. As there was no production ability no depreciation is charged for the year

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Mar 31, 2012

(a). Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10/- per share .Each holder of equity shares is entitled to one vote per share The company declares and pays Dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the Approval of the share holders in the ensuing Annual General Meeting. During the year ended 31-03-12 the amount of per share dividend recognized as distributions to equity share holders was Rs.nil .

In the event of liquidations of the company the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all Preferential amounts .The distribution will be in proportion to the number of equity shares held by the shareholders

1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(Annexed to and forming part of the financial statement for the year ended 31st March, 2012)

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance in all material aspects, with the applicable accounting principals in India, the applicable accounting standards notified under section 211(3c) and the relevant provisions of the companies Act 1956.

All the assets and liabilities have been classified as current as per the companys normal operations cycle and other criteria set out in schedule VI to the companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for the processing and their realization in cash and cash equivalent, 1. CONTINGENT LIABILITIES NOT PROVIDED FOR:

- in respect of Bank Guarantee Rs.Nil (previous year Rs. Nil)

- in respect of Letter of Credit Rs.Nil (Previous year Rs. Nil)

2. The Company is a sick company within the meaning of section 3(1) (0) of the SICA Act 1985. The Honble BIFR has declared the company as a sick company in Case No. 222/2000. Accordingly, pending approval of the rehabilitation proposal, the accounts of the company are prepared on the going concern basis.

3. Pending finalization of one time settlement with banks no interest was provided on principal outstanding loans for the year under review.

4. Secured Loans

(a) Deferred Payment Guarantee facility from State Bank of Hyderabad and Bank of Baroda is secured by Plant and Machinery and Equitable Mortgage by way of Deposit of Title deeds pertaining to Land and Buildings situated in Survey No.248 (P) Puppalguda Village, Rajendranagar Mandal. RR Dist AP and First Charge on the whole of Current Assets having entered on 15.12.1994 a Joint Deed of Hypothecation, Facility Agreement and Deposit of Title Deeds for Rs. 448.62 Lakhs in favour of State Bank of Hyderabad, Industrial Finance Branch, Panjagutta, Hyderabad and for Rs. 299.08 Lakhs in favour of Bank of Baroda, Chanchelguda Branch, Hyderabad.

(b) The Packing Credit Loan from State Bank of Hyderabad and Bank of Baroda are secured by a first charge on all goods, book debts and movable assets of the company and the personal guarantee of some of the directors.

5 The Company declared a Lay-Off with effect from May, 2002. Pending final settlement, no provision has been made in the books of account for terminal benefits like gratuity, bonus, and leave encashment.

6. A Civil suit is pending against the Company alleging a sale cum lease transaction of some assets of the Company, which is denied by the company. The liability, if any, for the Company cannot be quantified at this juncture.

7. Appeal against the Arbitration awards and Decreetal orders of the Learned Single Judge are pending before the Division Bench in the High Court Judicature at Madras

8. As regards to the compliance of provision relating to the dues to the small scale industries in terms of companies (Amendment) Act, 1999 the company has sent letters to the creditors to confirm whether they are SSI Units. The company is yet to receive the confirmations from them. Hence, the company could not quantify the dues, if any, to the small-scale industries.

9. DEFERRED TAX ASSET:

Even though, the company has unabsorbed depreciation, carry forward of losses and adjustments under section 43 B of Income tax Act, 1961 deferred tax asset as per the Accounting Standard - 22 " Accounting for taxes on income" issued by the Institute of Chartered Accountants of India, has not been recognized in the Books of account as the company is 100% EOU and eligible for tax exemption u/s 10A of income tax Act, 1961 and also generation of sufficient taxable income in near future is uncertain.

10. Earnings Per Share:

The Company has incurred a net loss of Rs.61,502 /- during the year under review and hence EPS is not applicable.

11. SEGMENT REPORTING:

The company's operations predominantly comprises of only one reportable product segment i.e., knitted socks, as per Accounting standard -17 "Segment Reporting" issued by the Institute of Chartered Accountants of India.

12. DIRECTORS' REMUNERATION: NIL

13. Figures have been rounded off to the nearest rupee.

14. Secured, unsecured loans and balances of Current liabilities are subject confirmation.

15. Previous year figures have been regrouped or reclassified, wherever necessary, to conform to this Year's classification.

16. As there was no production ability no depreciation is charged for the year

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Mar 31, 2011

1. CONTINGENT LIABILITIES NOT PROVIDED FOR:

- in respect of Bank Guarantee Rs.Nil (previous year Rs. Nil)

- in respect of Letter of Credit Rs.Nil (Previous year Rs. Nil)

2. The Company is a sick company within the meaning of section 3(1) (0) of the SICA Act 1985. The Hon’ble BIFR has declared the company as a sick company in Case No. 222/2000. Accordingly, pending approval of the rehabilitation proposal, the accounts of the company are prepared on the going concern basis.

3. Pending finalization of one time settlement with banks no interest was provided on principal outstanding loans for the year under review.

4. Secured Loans

(a) Deferred Payment Guarantee facility from State Bank of Hyderabad and Bank of Baroda is secured by Plant and Machinery and Equitable Mortgage by way of Deposit of Title deeds pertaining to Land and Buildings situated in Survey No.248 (P) Puppalguda Village, Rajendranagar Mandal. RR Dist AP and First Charge on the whole of Current Assets having entered on 15.12.1994 a Joint Deed of Hypothecation, Facility Agreement and Deposit of Title Deeds for Rs. 448.62 Lakhs in favour of State Bank of Hyderabad, Industrial Finance Branch, Panjagutta, Hyderabad and for Rs. 299.08 Lakhs in favour of Bank of Baroda, Chanchelguda Branch, Hyderabad.

(b) The Packing Credit Loan from State Bank of Hyderabad and Bank of Baroda are secured by a first charge on all goods, book debts and movable assets of the company and the personal guarantee of some of the directors.

5 The Company declared a Lay-Off with effect from May, 2002. Pending final settlement, no provision has been made in the books of account for terminal benefits like gratuity, bonus, and leave encashment.

6. A Civil suit is pending against the Company alleging a sale cum lease transaction of some assets of the Company, which is denied by the company. The liability, if any, for the Company cannot be quantified at this juncture.

7. Appeal against the Arbitration awards and Decreetal orders of the Learned Single Judge are pending before the Division Bench in the High Court Judicature at Madras.

8. The claim filed by the Company against Bank of Baroda is pending before the Learned Addl. Chief Judge City Civil Court Hyderabad.

9. As regards to the compliance of provision relating to the dues to the small scale industries in terms of companies (Amendment) Act, 1999 the company has sent letters to the creditors to confirm whether they are SSI Units. The company is yet to receive the confirmations from them. Hence, the company could not quantify the dues, if any, to the small-scale industries.

10. DEFERRED TAX ASSET:

Even though, the company has unabsorbed depreciation, carry forward of losses and adjustments under section 43 B of Income tax Act, 1961 deferred tax asset as per the Accounting Standard - 22 " Accounting for taxes on income" issued by the Institute of Chartered Accountants of India, has not been recognized in the Books of account as the company is 100% EOU and eligible for tax exemption u/s 10A of income tax Act, 1961 and also generation of sufficient taxable income in near future is uncertain.

11. Earnings Per Share:

The Company has incurred a net loss of Rs.27,060/- during the year under review and hence EPS is not applicable.

12. SEGMENT REPORTING:

The company's operations predominantly comprises of only one reportable product segment i.e., knitted socks, as per Accounting standard -17 "Segment Reporting" issued by the Institute of Chartered Accountants of India.

13. DIRECTORS' REMUNERATION: NIL

14. AUDITORS’ REMUNERATION: For Audit: Rs.20,000

15. Additional information pursuant to the provisions of Paragraphs 3 & 4 of Schedule VI to the Companies Act, 1956.

16. Figures have been rounded off to the nearest rupee.

17. Secured, unsecured loans and balances of Current liabilities are subject confirmation.

18. Previous year figures have been regrouped or reclassified, wherever necessary, to conform to this Year's classification.

19. As there was no production ability no depreciation is charged for the year

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Mar 31, 2010

1. CONTINGENT LIABILITIES NOT PROVIDED FOR:

- in respect of Bank Guarantee Rs.Nil (previous year Rs. Nil)

- in respect of Letter of Credit Rs.Nil (Previous year Rs. Nil)

2. The Company is a sick company within the meaning of section 3(1) (0) of the SICA Act 1985. The Honble BIFR has declared the company as a sick company in Case No. 222/2000. Accordingly, pending approval of the rehabilitation proposal, the accounts of the company are prepared on the going concern basis.

3. Pending finalization of one time settlement with banks no interest was provided on principal outstanding loans for the year under review.

4. Secured Loans

(a) Deferred Payment Guarantee facility from State Bank of Hyderabad and Bank of Baroda is secured by Plant and Machinery and Equitable Mortgage by way of Deposit of Title deeds pertaining to Land and Buildings situated in Survey No.248 (P) Poppalguda Village, Rajendranagar mandal. RR Dist AP and First Charge on the whole of Current Assets having entered on 15.12.1994 a Joint Deed of Hypothecation, Facility Agreement and Deposit of Title Deeds for Rs. 448.62 Lakhs in favour of State Bank of Hyderabad, Industrial Finance Branch, Panjagutta, Hyderabad and for Rs. 299.08 Lakhs in favour of Bank of Baroda, Chanchelguda Branch, Hyderabad.

(b) The Packing Credit Loan from State Bank of Hyderabad and Bank of Baroda are secured by a first charge on all goods, book debts and movable assets of the company and the personal guarantee of some of the directors.

5 The Company declared a Lay-Off with effect from May, 2002. Pending final settlement, no provision has been made in the books of account for terminal benefits like gratuity, bonus, and leave encashment.

6. A Civil suit is pending against the Company alleging a sale cum lease transaction of some assets of the Company, which is denied by the company. The liability, if any, for the Company cannot be quantified at this juncture.

7. Appeal against the Arbitration awards and Decreetal orders of the Learned Single Judge are pending before the Division Bench in the High Court Judicature at Madras

8. As regards to the compliance of provision relating to the dues to the small scale industries in terms of companies (Amendment) Act, 1999 the company has sent letters to the creditors to confirm whether they are SSI Units. The company is yet to receive the confirmations from them. Hence, the company could not quantify the dues, if any, to the small-scale industries.

9. DEFERRED TAX ASSET:

Even though, the company has unabsorbed depreciation, carry forward of losses and adjustments under section 43 B of Income tax Act, 1961 deferred tax asset as per the Accounting Standard - 22 " Accounting for taxes on income" issued by the Institute of Chartered Accountants of India, has not been recognized in the Books of account as the company is 100% EOU and eligible for tax exemption u/s 10A of income tax Act, 1961 and also generation of sufficient taxable income in near future is uncertain.

10. Earnings Per Share:

The Company has incurred a net loss of Rs.25,060/- during the year under review and hence EPS is not applicable.

11. SEGMENT REPORTING:

The companys operations predominantly comprises of only one reportable product segment i.e., knitted socks, as per Accounting standard -17 "Segment Reporting" issued by the Institute of Chartered Accountants of India.

12. DIRECTORS REMUNERATION: NIL

13. Figures have been rounded off to the nearest rupee.

14. Secured, unsecured loans and balances of Current liabilities are subject confirmation.

15. Previous year figures have been regrouped or reclassified, wherever necessary, to conform to this Years classification.

16. As there was no production ability no depreciation is charged for the year

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Mar 31, 2009

1. CONTINGENT LIABILITIES NOT PROVIDED FOR:

- in respect of Bank Guarantee Rs.Nil (previous year Rs. Nil)

- in respect of Letter of Credit Rs.Nil (Previous year Rs. Nil)

2. The Company is a sick company within the meaning of section 3(1) (0) of the SICA Act 1985. The Honble BIFR has declared the company as a sick company in Case No. 222/2000. Accordingly, pending approval of the rehabilitation proposal, the accounts of the company are prepared on the going concern basis.

3. Pending finalization of one time settlement with banks no interest was provided on principal outstanding loans for the year under review.

4. Secured Loans

(a) Deferred Payment Guarantee facility from State Bank of Hyderabad and Bank of Baroda is secured by Plant and Machinery and Equitable Mortgage by way of Deposit of Title deeds pertaining to Land and Buildings situated in Survey No.248 (P) Poppalguda Village, Rajendranagar mandal. RR Dist AP and First Charge on the whole of Current Assets having entered on 15.12.1994 a Joint Deed of Hypothecation, Facility Agreement and Deposit of Title Deeds for Rs. 448.62 Lakhs in favour of State Bank of Hyderabad, Industrial Finance Branch, Panjagutta, Hyderabad and for Rs. 299.08 Lakhs in favour of Bank of Baroda, Chanchelguda Branch, Hyderabad.

(b) The Packing Credit Loan from State Bank of Hyderabad and Bank of Baroda are secured by a first charge on all goods, book debts and movable assets of the company and the personal guarantee of some of the directors.

5 The Company declared a Lay-Off with effect from May, 2002. Pending final settlement, no provision has been made in the books of account for terminal benefits like gratuity, bonus, and leave encashment.

6. A Civil suit is pending against the Company alleging a sale cum lease transaction of some assets of the Company, which is denied by the company. The liability, if any, for the Company cannot be quantified at this juncture.

7. Appeal against the Arbitration awards and Decreetal orders of the Learned Single Judge are pending before the Division Bench in the High Court Judicature at Madras

8. As regards to the compliance of provision relating to the dues to the small scale industries in terms of companies (Amendment) Act, 1999 the company has sent letters to the creditors to confirm whether they are SSI Units. The company is yet to receive the confirmations from them. Hence, the company could not quantify the dues, if any, to the small-scale industries.

9. DEFERRED TAX ASSET:

Even though, the company has unabsorbed depreciation, carry forward of losses and adjustments under section 43 B of Income tax Act, 1961 deferred tax asset as per the Accounting Standard - 22 " Accounting for taxes on income" issued by the Institute of Chartered Accountants of India, has not been recognized in the Books of account as the company is 100% EOU and eligible for tax exemption u/s 10A of income tax Act, 1961 and also generation of sufficient taxable income in near future is uncertain.

10. RELATED PARTY TRANSACTIONS:

The company entered in to transactions with key managerial personal, namely Sri.S.S.R. Kishen, Managing Director which is disclosed here under

11. Earnings Per Share:

The Company has incurred a net loss of Rs.23,948/- during the year under review and hence EPS is not applicable.

12. SEGMENT REPORTING:

The companys operations predominantly comprises of only one reportable product segment i.e., knitted socks, as per Accounting standard -17 "Segment Reporting" issued by the Institute of Chartered Accountants of India.

13. Figures have been rounded off to the nearest rupee.

14. Secured, unsecured loans and balances of Current liabilities are subject confirmation.

15. Previous year figures have been regrouped or reclassified, wherever necessary, to conform to this Years classification.

16. As there was no production ability no depreciation is charged for the year