Notes to Accounts of Khatau Makanji Spinning & Weaving Company Ltd.

Mar 31, 2014

NOTE 1- In view of huge carried forward losses under IT Act, there is deferred tax asset (Net) as on 31 -03-2014. As a matter of prudence, the Company has not recognized the same in the accounts.

NOTE 2 - Segment Reporting :

The Company is in the business of Textiles.

In view of the above, the Company has only one identified reportable segment.

NOTE 3 - Micro & Small Enterprises Dues

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act 2006 and hence disclosure regarding :

a. Amount due and outstanding to suppliers at the end of the accounting year

b. Interest paid during the year

c. Interest payable at the end of the accounting year

d. Interest accrued and unpaid at the end of the accounting year; have not been given

The Company is making efforts to get the confirmation from the suppliers as regards their status under the Act.

NOTE 4- Related Party Disclosures as per A.S.18 :

a. Names of related parties with whom transactions were carried out during the year and Relationship:

Mrs. Panna S. Khatau

Khatau Investments Pvt. Ltd.

SCK Mercantile Pvt. Ltd.

Kedarkiran Investments Pvt. Ltd.

Khatau Exports Pvt. Ltd.

Sundew Investment Pvt. Ltd.

Chairperson : Key Management Personnel

[Enterprise over which

Key Management Personnel has significant influence

NOTE 5 - Capital and Other Commitments for the year is Rs. NIL; (Previous year Rs. NIL).

NOTE 6 - Figures of Previous year are regrouped wherever necessary.

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Mar 31, 2013

NOTE 1 - In view of huge carried forward losses under IT Act, there is deferred tax asset (Net) as on 31.3.2013. As a matter of prudence, the Company has not recognized the same in the accounts.

NOTE 2 - Segment Reporting :

The Company is in the business of Textiles.

In view of the above, the Company has only one identified reportable segment.

NOTE 3 - Micro & Small Enterprises Dues

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act 2006 and hence disclosure regarding :

a. Amount due and outstanding to suppliers at the end of the accounting year

b. Interest paid during the year

c. Interest payable at the end of the accounting year

d. Interest accrued and unpaid at the end of the accounting year; have not been given

The Company is making efforts to get the confirmation from the suppliers as regards their status under the Act.

NOTE 4 - CONTINGENT LIABILITIES

(a) Claims against Company not acknowledged as debts.

Disputed leasehold land rent payable to Khatau Makanji & Co.Pvt.td. 3,92,256/-

(b) Other money for which the Company is contiaentty liable

i. Arrears of cumulative Preference Shares dividends 2,1007-

ii. Interest on Bonds for procurement of excisable goods for export to 28,49,055/-

Central Excise Department

iii. Interest on Khatau Mills Employees''Provident Fund 1,14,915/-

iv. Dues of Mumbai Port Trust in respect of godowns 10,97,430/-

NOTE 5 - Capital and Other Commitments for the year is Rs NIL; (Previous year Rs. NIL).

NOTE 6 - Figures of Previous year are regrouped wherever necessary.

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Mar 31, 2012

A. The Equity Shares of the Company have voting rights and are subject to the restrictions as prescribed under the Company's Act, 1956.

The Company's Preference Shares amounting to Rs.29,92,500 have not been redeemed by 22.2.2012 as per the Company's Sanctioned Scheme under BIFR, vide its order dated 22.2.2007.

b. The Company has no holding company or subsidiaries or associates.

During the last 5 years, the Company has neither issued any bonus shares, nor alloted any shares for Consideration other than Cash, nor bought back any shares.

c. Unpaid Calls

As per records of the Company, no calls remain unpaid by the directors and officers of the company as on 31 st March, 2012.

d. . As per records of the Company, no shares have oeen forfeited by the Company during the year.

NOTE 1 - In view of huge carried forward losses under IT Act, there is deferred tax asset (Net) as on 31.3.2012.

As a matter of prudence, the Company has not recognized the same in the accounts.

NOTE 2 - Segment Reporting :

The Company is in the business of Textiles.

In view of the above, the Company has only one identified reportable segment.

NOTE 3 - Micro & Small Enterprises Dues

The Company has not received any intimation from suppliers regarding their status under the Micro; Small and Medium Enterprises Development Act 2006 and hence disclosure regarding :

a. Amount due and outstanding to suppliers at the end of the accounting year

b. Interest paid during the year .

c. Interest payable at the end of the accounting year .

d. Interest accrued and unpaid at the end of the accounting year; have not been given

The Company is making efforts to get the confirmation from the suppliers as regards their status under the Act.

NOTE 4 - CONTINGENT LIABILITIES

Rupees

(a) Claims against Company not acknowledged as debts.

Disputed leasehold land rent payable to Khatau Makanji & Co. Pvt. Ltd. 3,92,256/-

(b) Other money for which the Company is contigently liable

i. Arrears of cumulative Preference Shares dividends 1,800/-

ii. Interest on Bonds for procurement of excisable goods for export to 28,49,055/- Central Excise Department

iii. Interest on Khatau Mills Employees' Provident Fund 1,14,915/-

iv. Dues of Mumbai Port Trust in respect of godowns 10,97,430/-

NOTE 5 - Figures of Previous year are regrouped wherever necessary.

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Mar 31, 2010

1) BIFR at its hearing held on 11.1.2007 sanctioned Companys rehabilitation scheme vide its order dt. 22.2.2007. Under the demerger scheme, all the directions of Honble BIFR have been complied with except for manufacturing operations at Mahad which could not be started due to unavoidable circumstances. However, the Company has started trading activity (outsourcing) which is also part of the proposal.

2) In view of huge carried forward losses under IT Act, there is differed tax asset (Net) as on 31.3.2010. As a matter of prudence, the Company has not recognized the same in the accounts.

3) Persuant to the Order of Honble BIFR dated 1.6.2009, State Bank of India vide their letter dt. 22nd June, 2009 have returned Rs,10 Crs. deposit alongwith interest amounting to Rs.14.62,21,054/- to Rishina Constructions Pvt. Ltd. (RCPL) on 17.06.2009. Upto the previous year, the interest earned on this deposit was treated as income of the Company. Due to the above facts the interest earned on this deposit in previous years and tax deducted thereon have been adjusted and disclosed as extraordinary expenses in the Profit & Loss A/C.

4) Segment Reporting :

The Company is in the business of trading of Textiles. Manufacturing business at present is suspended. In view of the above, the Company has only one identified reportable segment.