Notes to Accounts of Niwas Spinning Mills Ltd.

Mar 31, 2014

1) Contingent Liabilities not provided for in respect of:

a) Bank Guarantee of Rs. 833.56 Lacs for E.P.C.G.

b) Disputed liabilities in respect of Excise Duty of Rs. 11.82 lacs and disputed Income Tax assessed dues of Rs. 10.18 Lacs (Out of which Rs. 8.05 Lacs paid/adjusted till the year under report). Both Excise & I.T. Liabilities are disputed and matter is sub-judiced under Appellate Tribunal and High Court respectively.

2) Other Notes:

a) The Company has applied for de-listing of security from Pune and Ahmedabad Stock Exchange. As on today there is no official de-listing of the Shares approved from both the Stock Exchange.

b) The Company has also not complied with mandatory requirements of "De-materialisation" of its securities.

3) Deferred Tax Liability:

No provision is made for Deferred Tax Liability as required by accounting standard 22. According to the Company no provision for deferred tax liability is made in view of continuous losses and according to the Company it will not be able to recover these Losses in near future.

4) a. Hire Purchase of Machinery of Rs. 27.17 Lacs, no payment made during the year and no interest is provided.

b.The Secured Loan of ARCIL & IARCL carried forward as per settlement in earlier Year, no payment during the year except IARCL 1.19 Lacs including interest on delayed payment.

5) Previous year figures have been regrouped & rearranged wherever necessary.

6) Balances of Sundry Debtors, Sundry Creditors, Loans and Advances given, Secured & Unsecured loans are taken as per confirmation by the management.

7) Micro and medium scale business entities:

There are no Micro, Small and Medium Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2014. This information as required to be disclosed der the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been indentified on the basis of information available with the Company and has been relied upon by the auditors.

8) The company operates mainly in one segment i.e. Textiles.

9) Excise: Duty exempted under Notification No 30/2004 dated 09-07-2004

10) As per the management investments are at realizable value and therefore no provision is made for the diminution in the value of the investments

11) From the installed capacity 384 Rotors became absolute during the year.

---

Mar 31, 2013

1) Contingent Liabilities not provided for in respect of:

a) Bank Guarantee of Rs. 833.56 Lacs for E.P.C.G.

b) Disputed liabilities in respect of Excise Duty of Rs. 11.82 lacs and disputed Income Tax assessed dues of Rs. 10.18 Lacs (Out of which Rs. 8.05 Lacs paid/adjusted till the year under report). Both Excise & I.T. Liabilities are disputed and matter is sub-judiced under Appellate Tribunal and High Court respectively.

2) Other Notes:

a. The Company has applied for de-listing of security from Pune and Ahmedabad Stock Exchange. As on today there is no official de-listing of the Shares approved from both the Stock Exchange.

b. The Company has also not complied with mandatory requirements of "De-materialisation" of its securities.

3) Deferred Tax Liability:

No provision is made for Deferred Tax Liability as required by accounting standard 22. According to the Company no provision for deferred tax liability is made in view of continuous losses and according to the Company it will not be able to recover these Losses in near future.

4) Hire Purchase of Machinery of Rs. 27.17 Lacs, no payment made during the year and no interest is provided.

In respect of Note No. 3, as debenture redemption paid, hence it is written-off from Reserve A/c. 280.00 Lacs

In respect of Note No. 14 - Electricity. Duty refund daim sanctioned lower due to balance amount is treated as Waiver 43.58 Lacs 6) i) Remuneration to Whole-time Director:

a. The Computation of net profits for the purpose of calculations of Director remuneration under section 349 of the Companies Act, 1956 is not enumerated since no commission is paid / payable to the whole time Director

5) Previous year figures have been regrouped & rearranged wherever necessary.

6) Balances of Sundry Debtors, Sundry Creditors, Loans and Advances given, Secured & Unsecured loans are taken as per confirmation by the management.

7) Micro and medium scale business entities:

There are no Micro, Small and Medium Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2013. This information as required to be disclosed der the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been indentified on the basis of information available with the Company and has been relied upon by the auditors. 11) The company operates mainly in one segment ie. Textiles

8) Excise: Duty exempted under Notification No. 30/2004 dated 09-07-2004.

9) As per the management investments are at realizable value and therefore no provision is made for the diminution in the value of the investments

10) From the installed capacity, 384 Rotors became absolute during the year Hence installed quantity of Rotors remained to 384 Nos

---

Mar 31, 2012

1) Contingent Liabilities not provided for in respect of:

a) Bank Guarantee of Rs. 833.56 Lacs for E.P.C.G.

b) Disputed liabilities in respect of Excise Duty of Rs. 11.82 lacs and disputed Income Tax assessed dues of Rs. 10.18 Lacs ( Out of which Rs. 7.38 Lacs paid by installments till the year under report). Both Excise & IT. Liabilities are disputed and matter is sub-juiced under Appellate Tribunal and High Court respectively.

2) Other Notes:

a. The Company has applied for de-listing of security from Pune and Ahmadabad Stock Exchange. As on today there is no official de-listing of the Shares approved from both the Stock Exchange.

b. The Company has also not complied with mandatory requirements of "De-materialisation" of its securities.

3) Deferred Tax Liability:

No provision is made for Deferred Tax Liability as required by accounting standard 22. According to the Company no provision for deferred tax liability is made in view of continuous losses and according to the Company it will not be able to recover these Losses in near future.

4) Secured loans from Bank of Baroda/Bank of India/Sicom have been assigned and transferred to ARC'S including rights, title and interest in all the agreements, deeds, documents in relation to or in connection with the facilities and accordingly no interest has been provided during the current year on these loans. The amount of un-provided interest till the close of the year is not worked out and unascertained. As per the management the settlements are in progress. Out ot the settlement amount, part payments are effected during the current year and the management agreed to pay the remaining amounts in agreed installments, which is to be incorporated and routed through the DRS to be submitted and considered by Humble BIFR. As the preparation and submission of DRS is in process, such amounts of settlement including interest is not considered and taken into during the current year.

5) Previous year figures have been regrouped & rearranged wherever necessary.

6) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances given, Secured & Unsecured loans are taken as per confirmation by the management.

7) Micro and medium scale business entities:

There are no Micro, Small and Medium Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been indentified on the basis of information available with the Company and has been relied upon by the auditors.

8) The company operates mainly in one segment i.e. Textiles.

9) Excise: Duty exempted under Notification No. 30/2004 dated 09-07-2004.

10) As per the management investments are at realizable value and therefore no provision is made for the diminution in the value of the investments

---

Mar 31, 2011

1) Contingent Liabilities not provided for in respect of:

a) Bank Guarantee of Rs. 833.56 Lacs for E.P.CG.

b) Disputed liabilities in respect of Excise Duty of Rs. 11.82 lacs and disputed Income Tax assessed dues of Rs. 10.18 Lacs (Out of which Rs. 7.38 Lacs paid by installments till the year under report). Both Excise & I.T. Liabilities are disputed and matter is sub-judiced under Appellate Tribunal and High Court respectively

2) Other Notes :

a The Company has applied for de-listing of security from Pune and Ahemadabad Stock Exchange As on today there is no official de-listing of the Shares approved from both the Stock Exchange.

b The Company has also not complied with mandatory requirements of "De-materialisation" of its securities

3) Deferred Tax Liability:

No provision is made for Deferred Tax Liability as required by accounting standard 22. According to the Company no provision for deferred tax liability is made in view of continuous losses and according to the Company it will not be able to recover these Losses in near future

4) Secured loans from Bank of Baroda/Bank of India/Sicom have been assigned and transferred to ARC'S including rights, title and interest in all the agreements, deeds, documents in relation to or in connection with the facilities and accordingly no interest has been provided during the current year on these loans. The amount of un provided interest till the close of the year is not worked out and unascertained As per the management the settlements are in progress

5) i) Remuneration to Whole-time Director:

a The Computation of net profits for the purpose of calculations of Director remuneration under section 349 of the Companies Act, 1956 is not enumerated since no commission is paid/payable to the whole time Director

6) Previous years figures have been regrouped and rearrange her ever necessary

7) Balances of Sundry Debtors, Sundry Creditors, Loans and Advances given, Secured and Unsecured loans taken are subject to confirmation.

8) Micro and medium scale business entities:

There are no Micro, Small and Medium Enterprises, to whom the company owes dues, which are out- standing for more than 45 days as at march 31, 2011 This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company and has been relied upon by the auditors

9) The company operates mainly in one segment Textiles

10) Additional information as required under Schedule VI Part II of the Companies Act, 1956 (as certified by Managing Director)

---

Mar 31, 2010

1) Contingent Liabilities not provided for in respect of:

a) i Bank Guarantee of Rs. 24.57 Lacs for export obligation ii. Bank Guarantee of Rs. 833.56 Lacs for E.P.C.G.

b) Disputed liabilities in respect of Excise Duty of Rs. 11.82 lacs and disputed Income Tax assessed dues of Rs. 10.18 Lacs (Out of which Rs. 6.31 Lacs paid by installments till the year under report). Both Excise & I.T. Liabilities are disputed and matter is sub-judiced under Appellate Tribunal and High Court respectively.

c) Payment of Gratuity calculated as statutory dues under the Act amounting to Rs. 12.40 Lacs not provided for.

d) There has been delayed repayment of installments pertaining to ICICI (ARCIL) loan. The provision for interest on delayed payments of installment is not provided in the books of accounts and the amount is unascertained.

e) Bank Interest included additional penal interest on loans from Bank of Baroda and Bank of India, since the date when they are assigned to ARC's, amount unascertained.

2) Other Notes :

a. The Company has applied for de-listing of security from Pune and Ahemadabad Stock Exchange. As on today there is no official de-listing of the Shares approved from both the Stock Exchange.

b. The Company has also not complied with mandatory requirements of "De-materialisation" of its securities. Sincere efforts be made to comply with these provisions at an early date.

3) Deferred Tax Liability:

No provision is made for Deferred Tax Liability as required by accounting standard 22. According to the Company no provision for deferred tax liability is made in view of continuous losses and according to the Company it will not be able to recover these Losses in near future.

4) i) Remuneration to Whole-time Director:

a. The Computation of net profits for the purpose of calculations of Director remuneration under section 349 of the Companies Act, 1956 is not enumerated since no commission is paid/payable to the whole time Director.

5) Previous years figures have been regrouped and rearranged wherever necessary.

6) Sundry Debtors, Sundry Creditors, Loans and Advances given, Secured and Unsecured loans taken are subject to confirmation.

7) Micro and medium scale business entities:

The company do not possesses information about the micro, small and medium enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes on account of principal amount together with interest and accordingly no additional disclosure have been made.

In the opinion of the management, the above information regarding Micro, Small and Medium Enterprises has through been determined, however no such parties could be identified on the basis of information available with the company. This has been relied upon by the auditors.

8) The company operates mainly in one segment i.e. Textiles

9) Additional information as required under Schedule VI Part II of the Companies Act, 1956 (as certified by Managing Director)

10) Secured Loans from Bank of Baroda and Bank of India have been assigned and transferred to ARC's including rights, title and interest in all the agreements, deeds, documents in relation to or in connection with the facilities and accordingly no interest has been provided during the current year on these loans. The amount of unprovided interest till close of the year is not worked out and unascertained.

11) As per the management investments are at realizable value and therefore no provision is made for the diminution in the value of the investments.

---

Mar 31, 2009

1) Contingent Liabilities not provided for In respect of :

a) I. Bank Guarantee of Rs. 24,57 Lacs for export obligation

II, Bank Guarantee of Rs. 833.56 Lacs for E.P.C.G,

b) Disputed liabilities In respect of Excise Duty of Rs. 11,82 lacs and disputed Income Tax assessed dues of Rs. 10.18 Lacs (Out of which Rs. 6.06 Lacs paid by Installments till the year under report). Both Excise & I.T. Liabilities are disputed and matter of sub-Judlced under Appellate Tribunal and High Court respectively.

c) Payment of Gratuity calculated as statutory dues under the Act amounting to Rs. 10,32 Lacs not provided for,

d) There ha* been delayed repayment of Installments pertaining to ICICI (ARCIL) loan. The provision for Interest on delayed payments of Installment Is not provided In the books of accounts and the amount Is unascertained.

e) Bank Interest Included additional penal Interest on loans from Bank of Baroda and Bank of India, since the date when they are assigned to ARCIL, amount unascertained.

2) Other Notes :

a. The Company has applied for de-llstlng of security from Pune and Ahemadabad Stock Exchange. As on today there Is no official de-llstlng of the Shares approved from both the Stock Exchange.

b. The Company has also not complied with mandatory requirements of "De-materlallsatlon " of Its securities. Sincere efforts be made to comply with these provisions at an early date.

3) Deferred Tax Liability

No provision Is made for Deferred Tax Liability as required by accounting standard 22. According to the Company no provision for deferred tax liability Is made In view of continuous losses and according to the Company it will not be able to recover these Losses in near future.

4) Previous years figures have been regrouped and rearranged wherever necessary.

5) Sundry Debtors, Sundry Creditors, Loans & Advances given, Secured & Unsecured loans taken are subject to confirmation.

6) Micro and medium scale business entitles:

The company do not possesses Information about the micro , small and medium enterprises , as defined In the Micro , Small and Medium Enterprises Development Act , 2006 to whom the company owes on account of principal amount together with Interest and accordingly no additional disclosure have beenmade.

In the opinion of the management, the above Information regarding Micro , Small and Medium Enterprises has through been determined , however no such parties could be Identified on the basis of Information available with the company . This has been relied upon by the auditors.

7) The company operates mainly in one segment I.e. Textiles

8) Excise : Duty exempted under Notification No. 30/2004 dated 09-07-2004.

9) Secured Loans from Bank of Baroda and Bank of India have been assigned and transferred to operating agency including rights, title and interest in all the agreements, deeds, documents in relation to or in connection with the facilities and accordingly no interest has been provided during the current year on these loans. The amount of unprovided interest till close of the year is not worked out and unascertained.

10) As per the management investments are at realizable value and therefore no provision is made for the diminution in the value of the investments.