Runeecha Textiles Limited (herein referred to as "the Company") is a manufacturer of 100% cotton yarn and grey fabric. Mr. Pradeep Jain and his Associates are the promoters of the Company. The Company's manufacturing facilities are located at Jagdishpur (Uttar Pradesh). The accompanying financial statements reflect results of activities undertaken by the Company during the year ended March 31, 2015. The shares of the Company are listed at The Bombay Stock Exchange Limited and The Calcutta Stock Exchange Limited.

2. Terms/rights attached to equity share Equity shares

Voting

Each holder of equity share is entitled to one vote per share held.

Dividends

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting, except in the case where interim dividend is distributed. The company has not declared any dividend in current and previous financial year.

Liquidation

In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive all of the remaining assets of the Company, after distribution of all preferential amounts, if any. Such distribution amounts will be in proportion to the number of equity shares held by the shareholders.

3.Preference shares

Voting

Prefrence share holders do not carry any voting right.

Dividend

The Company shall pay preferential dividend @ 16% per annum on the optionally convertible cumulative preference shares subscribed by the investor from the date of allotment. The investor shall have the option to convert (either fully, partly or none) the accumulated unpaid dividend into equity shares at par in the ratio of 1:1.

Liquidation

In the event of liquidation of the Company, the holders of preference shares shall be entitled to receive all of the remaining assets of the Company, after distribution of all preferential amounts, if any and before payment to equity shareholders. Such distribution amounts will be in proportion to the number of preference held by the shareholders upto the extent of agreed conversion amount of such shares.

4.Term loan from Bank

i) Secured against -

a) First charge on land situated at A-3, Sector-22, Jagdishpur Industrial Area, Jagdishpur, Distt. Amethi-227 817 (UP).

b) Entire fixed assets situated at A-3, Sector-22, Jagdishpur Industrial Area, Jagdishpur, Distt. Amethi-227 817 (UP).

c) Personal Guarantee of Mr. Pradeep Jain (Managing Director) and Mrs. Usha Jain (Director).

d) Collateral security: Equitable mortgage of house property in the name of Mr. Pradeep Jain (Manging Director) valued around Rs.30.2 million and second pari-passu charge over the entire current assets of the Company including raw material, WIP, FG, Chemicals, stores/ spares not relating to plant both present and future.

ii) Term loan from bank carries interest rate of Allahabad bank base rate 0.25% ranging from 10.20% to 10.50%. The loan is repayable in pre-scheduled 28 quarterly instalments commencing from quarter ending December 31, 2013.

iii) For current maturities of long term borrowings refer note 8

5. (i)Secured against charge over entire current assets of the Company including stock of raw material, work in process, finished goods, stores and spares, book debts, receivables and other current assets of the Company, both present and future.Collateral security: Equitable mortgage of house property in the name of Mr. Pradeep Jain (Manging Director) valued around Rs. 30.2 million and Second Pari-passu charge on the entire factory land/ Building (33673 sq meter), other fixed assets of the Company, both present and future.

ii) Working capital loan from bank carries interest rate of Allahabad Bank base rate 0.25% per annum. ranging from 11.25% to 11.50%.

iii) The unsecured loans taken from various parties including related parties are interest free. The said loans are payable on demand.

6. Contingent liabilities

                                              Amount in Rs.
                                  Year ended           Year ended
                                  March 31, 2015       March 31, 2014

Claims against the Company
not acknowledged as debts              Nil                 Nil

There are no outstanding capital commitments and other material commitments as at date of the Balance Sheet for the year ended March 31, 2015 and March 31, 2014.

8. The Company has settled the litigation with State Trading Corporation (STC) for outstanding loan amount of Rs. 5,634,829 which was pending before Honorable High Court of Mumbai. The court has ordered the settlement at Rs. 10,000,000 including interest. Accordingly, the company has made payment for outstanding loan amount of Rs.5,634,829 along with the interest amounting Rs.4,365,171.

9. During the financial year 2008-09, the Company revalued its land and factory buildings on the basis of report on Techno Economic Feasibility conducted by Northern India Textile Research Association (NITRA) in May 2008 in which the value of these fixed assets have been taken on the basis of its valuation report of assets of the Company conducted by NITRA which was also relied upon by the banks for the purpose of One Time Settlement (OTS). The original cost of land Rs.1,374,859 has been revalued at Rs.74,833,000 and the factory building with original cost ofRs. 69,396,490 has been revalued at Rs. 81,198,366. The difference between the revalued figures and the book value of the revalued assets amounting Rs. 73,458,141 was transferred to Revaluation Reserve in respect of Land and Rs.11,801,876 in respect of factory buildings, totalling to Rs.85,260,017. In the financial year 2012-13, the Company revalued its land and factory building. The revaluation has been carried out by Government approved independent valuer, M/s Karuna Associates, through its report dated May 10, 2012 issued to Allahabad Bank. The land has been revalued to Rs.168,365,000 and the factory building has been revalued to Rs. 82,059,200. The difference between the revalued figures and the net book value of the revalued assets amounting Rs.93,532,000 was transferred to Revaluation Reserve in respect of land and Rs. 48,053,507 in respect of factory building, totalling to Rs. 141,585,507.

In the financial year 2013-14, the Company revalued its plant and machinery. The revaluation has been carried out by Government approved independent valuer, Anmol Sekhri Consultant Private Limited, through its report dated November 5, 2014. The plant and machinery was revalued at Rs. 391,863,925. The difference between the revalued figures and the net book value amounting Rs.299,337,149 was transferred to revaluation reserve.

Further, in accordance with the provisions of AS-10 and guidance note on Schedule II issued by ICAI, the amount equivalent to additional depreciation on account of revaluation of building and plant and machinery amounting Rs. 1,889,248 and Rs. 22,532,761 respectively has been transfered to general reserve from revaluation reserve.

For the financial year 2013-2014, depreciation was provided with reference to the total value of the fixed assets as appearing in the accounts after the revaluation. Additional depreciation as a consequence to the revaluation of buildings amounting Rs.1,999,170 had been adjusted against Revaluation Reserve. (Refer note 9A regards Tangible asset and note 4.1 with regards to revaluation reserve)

10. Employee benefit obligations

The Company has in accordance with the Accounting Standard-15 'Employee Benefits' has calculated the various benefits provided to employees as under:

11. Segment reporting

The disclosure as required under Accounting Standard-17 "Segment Reporting" as notified under section 133 of the Companies Act, 2013 read with rule 7 of the Company (Accounts) Rules, 2014 has not been provided as the company deals in one business segment, namely manufacturing of grey cloth and fabric. Currently, there are no reportable geographical segments.

12. Leases

The company is a lessee under the cancellable operating lease in respect of its office premises. Rental expense for operating lease for the year ended March 31, 2015 and March 31, 2014 was Rs.1,446,020 and Rs. 1,365,480. The Company has not executed any non-cancellable operating leases.

13. Related party disclosure

The disclosure as required by the Accounting Standard -18 (Related Party Disclosure) are given below:

(a) Names of related parties:

(i) Key Management Personnel ('KMP') Mr. Pradeep Jain

                                        Mrs. Pooja Sabharwal

(ii) Other directors with whom
there are transations                   Mrs. Usha Jain

                                        (Wife of Mr. Pradeep Jain)

(ii) Relative of KMP                    Mrs. Prerna Jain

                                        (Daughter of Mr. Pradeep Jain)

15. During the year, the Company had written back trade payables of Rs. 112,722 (previous year Rs. 2,166,570 ) and salary payable of Rs. 30,048 (Rs. 2,594,969 previous year) as the same were outstanding for a long duration and in the opinion of management the same were not considered to be payable by the Company. The amount of liabilities written back in this regard have been included as a part of other income in the Statement of Profit and loss. In the opinion of the management other liabilities were good and considered payable in the normal course of business. (Refer note 17 with regards to other income ( Liabilities no longer required written back)

16. In accordance with Accounting Standard (AS) 22, "Accounting for Taxes on Income" the Company has evaluated deferred tax assets/liabilities on the balance sheet date. No net deferred tax assets have been recognised as at the balance sheet date as no conclusive evidence of future profits is available. Deferred tax on brought forward losses/unabsorbed depreciation has not been recognized in absence of virtual certainty of future taxable profits. 17. The Company in 2008 had issued 2,500,000 optionally convertible cumulative preference shares to SIDBI Venture Capital Limited ("SIDBI") for a consideration of Rs.25,000,000. In terms of the Shareholders' Subscription Agreement dated July 22, 2008, SIDBI had the option to either redeem such preference shares at agreed value or have these converted into equity shares. Such redemption or conversion was to be completed in 8 equal installments commencing from September 1, 2010. The Company has approached SIDBI for evaluating various exit options. Subsequent to the balance sheet date, SIDBI has informed that they have extended the time period of settlement of OCCPs upto 30th September 2015 on the same terms and conditions as approved earlier via their letter no. 48/SGF(RTL) dated February 7, 2013 . (Refer note 3 with regards to share capital).

18. During the year, pursuant to a resolution passed by the Board in its meeting held on December 11, 2013 and approval of Calcutta Stock Exchange Limited via Letter No. CSE/LD/8536/2014 dated April 11, 2014 the company has forfeited 481,400 equity shares.

19. Previous year's figures have been regrouped/reclassified where necessary to conform to this year's classification.