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.

In the event of liquidation 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.

Terms/Rights attached to Non-Cumulative Redeemable Preference Shares

The company has only one class of Non-Cumulative Redeemable Preference Shares, having a par value of Rs.100 per share.

Redemption of fully paid Non-Cumulative Redeemable Preference shares shall be made at par on 1st March 2025 or earlier at the option of Company. Such reedemption shall be made out of profits of the company which would otherwise be available for dividend i.e. out of general reserve created by ploughing back of distributable profits or may be made out of the proceeds of a fresh issue of shares made for the purpose of redemption.

Terms/Rights attached to 0.01% Cumulative Redeemable Preference Shares

The company has only one class of Cumulative Redeemable Preference Shares, having a par value of Rs.10 per share.

Redemption of fully paid Cumulative Redeemable Preference shares shall be made at par on 1st March 2025 or earlier at the option of Company. Such reedemption shall be made out of profits of the company which would otherwise be available for dividend i.e. out of general reserve created by ploughing back of distributable profits or may be made out of the proceeds of a fresh issue of shares made for the purpose of redemption.

Terms/Rights attached to 6.5% Cumulative Convertible Preference Shares

The company has only one class of Cumulative Convertible Preference Shares, having a par value of Rs.100 per share.

These shares will be paid dividend @ 6.5% p.a. from their respective deemed dates of allotment.These shares are subject to the rules framed by SEBI, convertible into Equity Shares in two equal installments in 2017-18 & 2018-2019 at a price to be determined at the time of conversion in accordance with the SEBI (ICDR) Regulations 2009.

The equity shares to be issued on conversion of the CCPS shall rank pari passu in all respects, with the existing equity shares of the Company, except that dividend, if any, declared for the company for the financial year of issuance of the CCPS shall be paid to the CCPS proportionate to the date of issue.

** Export Packing Credit and Export bills discounted are secured by paripassu first charge created through hypothecation of company's raw materials, work-in-process, finished goods, stores and spares meant for export and book debts and also by extension of charge (by way of second paripassu charge) over all fixed assets of the company alongwith personal guarantees of two directors, namely Mr. Ashok Mehra and Mr. C.P.Mehra.

Cash Credit is secured by paripassu first charge created through hypothecation of company's raw materials. Work-in-progress, finished goods, stores and spares meant for domestic sale and also by extension of charge (by way of second paripassu charge) over all fixed assets of the company alongwith personal guarantees of two directors, namely Mr. Ashok Mehra and Mr. C.P.Mehra.

2. Sales include Rs.111861992/- (P.Y. Rs.54649755/-) being the sale value of Cotton Waste. Sales of cotton waste is inclusive of Sales Tax thereon.

3. Based on the Company's approach, the Corporate Debt Restructuring Empowered Group approved reworking of existing CDR Package on 31st December, 2012 by allowing deferment of repayment of Term Loans. Accordingly the Consortium Member Banks sanctioned and implemented the reworked CDR Package. In accordance with the reworked CDR Package, repayment of Term Loans will start from March, 2014.

4. In view of brought forward business losses, unabsorbed depreciation and other applicable provisions of the Income Tax Act, no provision is required for current Income Tax for the year under audit.

5. Due to continuous losses suffered by the Company and in the absence of virtual certainty of availability of taxable income in the immediate future, the Company has not accounted Deferred Tax Asset for the current year and also adjusted carrying amount of Deferred Tax Assets and Liabilities recognized by the Company in the earlier years. The position of Deferred Tax is reviewed by the Company as at each Balance Sheet date for its recognition on a going concern basis.

6. As certified by technical expert, Plant & Machinery and Electrical installations have been considered to be continuous process plants as per Schedule XIV to the Companies Act 1956.

7. The balances of Sundry Debtors, Sundry Creditors, Loans and Advances are subject to confirmation from respective parties.

8. Segment Reporting :

In terms of Accounting Standard 17 of the Institute of Chartered Accountants of India, Segment Information has not been given as the Company is engaged primarily in manufacture and sale of Textile Products and has no significant reportable Business or Geographical segment.

9. Related party disclosures as per Accounting Standard 18 are given below :- i) Name and description of relationship with the related parties :

a) Key Management Personnel : Nature of Designation

1. Mr. Ashok Mehra : Chairman cum Whole Time Director

2. Mr. C. P. Mehra : Managing Director

3. Mr. Basudeo Prasad Agarwal : Sr. Vice President & Secretary

b) Enterprises in which relatives of key management personnel exist and name of the relatives :

1. Bala Techno Industries Ltd.

2. Gautam Mehra

10. Additional depreciation of Rs.19488887/- (P.Y. Rs.15591110/-) arising due to revaluation of certain fixed assets is charged to Statement of Profit & Loss.

11. These accounts are covering a period of 15 months (from 1st October 2012 to 31st December 2013) and as such figures relating to previous year (covering a period of 12 months (from 1st October 2011 to 30th September 2012) are not strictly comparable with those of current period.

12. Previous year figures are regrouped and rearranged wherever necessary.