Term Loans from Axis Bank Ltd. aggregating to Rs.6,71,46,992/- (Previous Year Rs.4,29,68,658/-) is secured by Primary Security: Extension of first charge on entire current assets of the company, both present and future.

Collateral Security : Extension of first and exclusive charge on a) All that piece and parcel of land totally admeasuirg about 6924.50 sq.mtrs bearing plot no.63B admeasuring 1474.50 sq mtrs, plot no.64A (part) admeasuring above 523.00 sq mtrs, Plot No.68B admeasuring about 1825.50 sq mtrs and plot no.69 admeasuring about 3102.00 sq mtr, lying being and situated at Piparia Industrial Estate, Village Amli, silvassa, Union Teritory of Dadra and Nagar Haveli, together with structure standing thereon admeasuring about 1704.23 sq. mtrs. b) All that piece and parcel of the property being pathway land an extent of 0.12 Cents out of Hac, 1.42.5 Acre 3.52 comprised in S F Na63/2A in Thungavi village Udumalpet Taluka, Tirupur Registration District and Koniyur Sub Registration District.

1.2 Personal guarantee of the two directors of the company.

1.3 Pledge of promoters equity shares at 30% of the total shareholding.

1.4 Repayment Schedule and Rate of interest of Term Loans from Axis Bank Ltd. as set out below :

# Primary Security: Extension of first charge on entire current assets of the company, both present and future.

Collateral Security : Extension of first and exclusive charge on a) All that piece and parcel of land totally admeasuirg about 6924.50 sq.mtrs bearing plot no.63B admeasuring 1474.50 sq mtrs, plot no.64A (part) admeasuring above 523.00 sq mtrs, Plot No.68B admeasuring about 1825.50 sq mtrs and plot no.69 admeasuring about 3102.00 sq mtr, lying being and situated at Piparia Industrial Estate, Village Amli, silvassa, Union Teritory of Dadra and Nagar Haveli, together with structure standing thereon admeasuring about 1704.23 sq. mtrs. b) All that piece and parcel of the property being pathway land an extent of 0.12 Cents out of Hac, 1.42.5 Acre 3.52 comprised in S F Na63/2A in Thungavi village Udumalpet Taluka, Tirupur Registration District and Koniyur Sub Registration District.

Personal guarantee of the two directors of the company.

Pledge of promoters equity shares at 30% of the total shareholding.

* The company has not received intimation from suppliers regarding the status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

# Includes Rs.13,22,62,667/- (Previous year Rs.2,40,67,076/-) payable to a related party - Beekaylon Synthetics Private Limited. [Refer Note No.27]

* These figures do not include any amounts due and outstanding to be credited to Investor Education and Protection Fund.

** Includes Rs.Nil (Previous Year Rs.5,00,000/-) due to related party (Refer Note No.27)

# Includes mainly statutory dues, security deposits and advances from customers

@ Fixed deposit receipt of Rs.16,98,000 (Previous year Rs.16,98,000) of Dena Bank Ltd. pledged as margin money under bank's lien for guarantee given by the bank on behalf of the Company and Fixed deposit receipt of Rs.41,90,570 (Previous year Rs.36,25,000) of Axis Bank Ltd. pledged towards DSR money under bank's lien for term loan given by bank to the company.

# Fixed Deposits with Bank includes Rs.16,73,000 (Previous Year Rs.15,05,000) with maturity of more than 12 months.

2.1 As per Accounting standard - 15 "Employees Benefits" the disclosure of Employees benefits as defined in the Accounting Standard are given below:

Defined Contribution Plan :

Employers contribution to Provident Fund Rs. 5,22,855 (Previous Year Rs. 97,111) charged to Profit & Loss account.

Defined benefits Plan (Non funded) :

The liability in respect of Gratuity has been provided based on the Actuarial valuation. The liability at the beginning of the year was Rs.85,161

(Previous Year Rs.53,002). Current Service Cost is Rs.7,59,652 (Previous Year Rs.32,159) and liability at the end of the year is Rs.8,44,813 (Previous Year Rs.85,161). The same have been provided for by way of charge to Profit & Loss account.

The liability in respect of Leave Encashment has been provided based on the Actuarial valuation. The liability at the beginning of the year was Rs.62,111 (Previous Year Rs.14,950). Current Service Cost is Rs.1,95,461 (Previous Year Rs.47,161) and liability at the end of the year is Rs.2,57,572 (Previous Year Rs.62,111). The same have been provided for by way of charge to Profit & Loss account.

3 RELATED PARTY DISCLOSURES:

a) Names of related parties and description of relationship:

i. Key Management Personnel :

Mr. Nand K. Khemani

Mr. Ashok K. Khemani

Mr. Kumar Nathani

Mr. Anil Mandhana

Mr. Rahul A. Khemani

Mr. Shahin N. Khemani

Mr.Vijay Kumar Mishra

Mr.Manmohan Anand

Mrs.Sraddha Teli

ii. Others (Entities in which Key Management Personnel have control or significant influence)

Beekaylon Synthetics Private Limited

DNH Spinners Pvt. Ltd.

Indo Leather Works

Jay Gee Rayons

b) Transactions with related parties :

3.1 Related party relationship is as identified by the management and relied upon by the Auditors.

3.2 Previous year figures are given in brackets.

3.3 Amount includes service tax paid under Reverse Charge Mechanism during the year 2014-15.

4 CONTINGENT LIABILITIES AND COMITTMENTS:

(To the extent not provided for)

(i) In respect of Disputed Income Tax Liabilities/Demand :

                                               F.Y.2014-15  FY.2013-14

Disputed Income Tax liability of 
assessment year 2009-10                           4,38,920    4,38,920

Disputed Income Tax liability of 
assessment year 2010-11                           3,71,690    3,71,690

Disputed Income Tax liability of 
assessment year 2011-12                           2,82,270    2,82,270

(iii) Bank Guarantee Outstanding.                84,62,000   16,73,000

4.3 The Company has provided depreciation on fixed assets as per the revised useful life as specified in Schedule II of the Companies Act 2013, except for certain items of Plant and Machinery wherein the useful life is taken based on certification obtained from a Chartered Engineer.

The carrying value of the assets whose useful life is already exhausted on 1st April 2014 has been adjusted against opening balance of retained earningsRs1,05,109 (net of deferred tax)