అకౌంట్స్ గమనికలుBirla Cotsyn (India) Ltd.

Mar 31, 2025

(b) Terms/ rights attached to equity shares

i. The Company has only one class of equity shares having a par value of Rs. 5/- per share. Each holder of equity share is entitled to one vote per share.

ii. No dividend was proposed for the current or the previous financial year

iii. In event of liquidation of the Company, the holders of equity shares would 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.

iv. Of the above, 3,04,32,390 equity shares of Rs.5/- each fully paid up has been allotted to non-residents on non-repatriation basis.

v. There have been no shares allotted as fully paid up by way of bonus shares or shares allotted as fully paid up pursuant to contract without payment being received in cash during five years immediately preceding March 31, 2025

vi. There are no shares bought back during 5 years immediately preceding March 31,2025

*Note: The Company had received an interest-free loan (ECB) of USD 13.85 million in various tranches starting from FY 2002-03 from a shareholder holding a 29% stake in the company. Partial repayments of USD 0.50 million and USD 1.23 million were made in 2009 and 2016, respectively. The repayment terms were extended multiple times, each without any interest or enforcement by the shareholder.

During the year, the Company has negotiated and entered into an MOU with the lender for currency swap from USD to INR of the outstanding amount. These matters are also subject to approval of the statutory and regulatory authorities. Additionally, the lenders have agreed for a moratorium period and have extended the repayment schedule starting from April 2030. These loans do not carry any interest.

In view of the long-standing non-recourse nature of the arrangement and absence of any repayment demand from the lender, and the fact that the amount is now settled or otherwise dealt with solely at the discretion of the Company, the loan has been reclassified as Other Equity as at March 31, 2025

i) Contingent Liability & Commitments not provided for:

The Company is a defendant in certain pending court cases filed by suppliers and employees. These cases, initiated suppliers and former employees, relate to disputed payments for goods supplied and services provided. The company has contested these claims and, based on legal advice, believes it has strong grounds for a favorable outcome. The estimated aggregate amount of these claims is Rs 32 lakhs. As the outflow of resources to settle these disputes is considered not probable, no provision has been recognized in the financial statements as of the reporting date. The final outcome of these legal proceedings may differ from this assessment, and the company will continue to monitor the developments closely.

ii) There are no contracts that are yet to be executed that would have a significant impact on the financial position of the company

iii) No dividend was proposed for the current or the previous financial year

iv) There is no amount due and outstanding to be credited to Investor Education and Protection Fund.

The Company has a net Deferred Tax Asset (DTA) of Rs. 2844.98 Lacs (Previous Year: Rs. 2049.67 Lacs) arising from temporary differences related to depreciation and other components. In accordance with Ind AS 12: Income Taxes, the DTA has not been recognized in the financial statements. This is based on a detailed assessment of the Company’s business plan and financial projections, which indicate that it is not probable that sufficient future taxable profits will be available against which the deferred tax asset can be utilized

vii) The Company has stopped operations in all the segments including the windmill. Hence segment results are not applicable for the company.

xi) Confirmation from certain parties for amounts due to them/amount due from them as per accounts of the Company has not been received. Necessary adjustment, if any will be made when the accounts are reconciled/settled.

x) The company has filed Income Tax Returns upto the Assessment Year 2024-25. There are no demands outstanding. In view of loss for assessment year 2024-25, the company has been advised that there is no liability to income tax and accordingly no provision has been made.

Note No. 26

xiv Financial instrument - Accounting, Classification and Fair Values

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The details of significant accounting policies, including the criteria for recognition, basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in notes forming the part of the financial statements.

xiv Financial instrument - Accounting, Classification and Fair Values (Cont''d)

(b) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company does not have any financial instrument which have been measured using the valuation techniques as per level 1.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e., derived from prices). The Company does not have any financial instrument which have been measured using the valuation techniques as per level 2.

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair value is determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. The Company does not have any financial instrument which have been measured using the valuation techniques as per level 3.

(i) Other financial assets, cash and cash equivalents, trade receivables, trade payables and other financial liabilities are stated at carrying value which is approximates their fair value.

(ii) All borrowings except one have variable interest rate which gets adjusted yearly based on the change in interest rate. The borrowing which is at fixed rate approximates the market interest rate. Hence the carrying value approximates the fair value.

(iv) Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

(v) There have been no transfers between Level 1 and Level 2 during the reporting year. xv Capital management

The capital structure of the Company consists of share capital comprising of equity share capital, debt, cash and cash equivalents accumulated reserves like general reserve, retained earnings, capital reserve and securities premium, other comprehensive income as disclosed in the statement of changes in equity.

The Company’s capital management objective is to achieve an optimal weighted average cost of capital while continuing to safeguard the Company’s ability to meet its liquidity requirements and repay loans as they fall due.

xvi Financial risk management objectives and policies

The Company’s principal financial liabilities comprises of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other receivables, and cash that derive directly from its operations.

The Company is exposed to the following risks from its use of financial instruments:

(a) Credit risk

(b) Liquidity risk

(c) Market risk

The Company’s Board of Directors has the overall responsibility for the establishment and oversight of the Company''s risk management framework. This note presents information about the risks associated with its financial instruments, the Company’s objectives, policies and processes for measuring and managing risk.

(a) Credit risk

The Company is exposed to credit risk as a result of the risk of counterparties defaulting on their obligations. The Company’s exposure to credit risk primarily relates to trade receivables. The Company monitors and limits its exposure to credit risk on a continuous basis. The Company’s credit risk associated with trade receivable is primarily related to customers not able to settle their obligation as agreed upon. To manage this, the Company yearly reviews the financial reliability of its customers, taking into account their financial condition, current economic trends and analysis of historical bad debts and ageing of trade receivables.

Financial instruments that are subject to such risk, principally consist of investments, trade receivables, loans, other financial assets and cash. None of the financial instruments of the Company results in material concentration of credit risks Maximum exposure to credit risk of the Company has been listed below:

(I) Trade receivables

(a) Trade receivables represent the most significant exposure to credit risk and is managed by the Company through policies, procedures and controls relating to customer credit risk management. Outstanding trade receivables are monitored at regular intervals. Impairment analysis is performed at each reporting date on individual customer basis.

The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109, Financial Instruments which permits the use of the lifetime expected loss provision for all trade receivables. The Company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. Forward-looking information (including macroeconomic information) has been incorporated into the determination of expected credit losses.

(b) Liquidity risk

The Company is exposed to liquidity risk related to its ability to fund its obligations as and when they become due. The Company monitors and manages its liquidity risk to ensure access to sufficient funds to meet operational and financial requirements. The Company has access to credit facilities and monitors cash and bank balances on a regular basis. In relation to the Company’s liquidity risk, the Company’s policy is to ensure that it will have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions without incurring unacceptable losses.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(c) Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

xvii Additional Notes

a) The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

b) The Company was not holding any benami property and no proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

c) The Company had not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

d) The Company did not have any transactions with struck off companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

e) The Company has not traded or invested in Crypto currency or Virtual Currency during year ended 31 March, 2025.

f) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) any funds to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g) The Company has not received any funds from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

h) The Company did not have any transaction which had not been recorded in the books of account that had been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

i) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period read with Point xi

xviii Subsequent events

No material events have occurred between the balance sheet date to the date of issue of these financial statements that could affect the values stated in the financial statements as at 31 March 2025.

xix Prior year comparatives

Prior year amounts have been regrouped/reclassified wherever necessary, to conform to the current years’ presentation. The impact of such reclassification/regrouping is not material to the financial statements.

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Mar 31, 2015

Note 1.

The Company has made provision of unrecoverable capital advances amounting to Rs.94,32,23,851/-given to various equipment suppliers and other parties mainly towards implementing Weaving Project. The amount represents balances outstanding for more than five years in respect of projects of the Company which have not taken off and have been dropped in view of the losses incurred by the Company. The equipment suppliers have forfeited the advances and the Company is pursuing with them for the recovery of the same. Pending such recovery, the Company has made a provision for the same in the books of accounts.

Note 2.

Dues from Subsidairy represents the loan given by the Company to it's wholly owned subsidiary Birla Cotsyn (India) Ltd FZE. in Dubai. The increase in Loan Account is on account of Foreign Exchange Fluctuation resulting from restatement of loan account at exchange rate prevailing as at 31st March, 2015. The same has been considered as good for recovery in view of the management.

Note 3.

The Company had given loan to one related party which has negative net-worth as on balance sheet date and the same has been considered as good for recovery in view of the management.

Note No.4.

The Government of India has approved import of Capital Equipment under the "Exports Promotion Capital Goods Scheme" at a concessional rate of custom duty. Under the Scheme the Company purchased Capital Goods at nominal duty for which the Company has an export obligation aggregating to Rs.130,96.40 lakh, to be fulfilled within eight years from the date of issuance of respective licenses, failing which the duty saved aggregating Rs.1637.05 Lakh, together with interest and penalties, if levied, may have to be paid. As at the year end the Company has fulfilled Export Obligation aggregating Rs.102,37.66 Lakh.

Note No.5.

EMPLOYEE BENEFITS DISCLOSURE AS PER AS-15 (REVISED) ISSUED UNDER ACCOUNTING STANDARD RULES 2006 (AS AMENDED).

a. Defined Contribution Plans:

During the period ended 31st March, 2015 the Company has recognised the contribution to Employees Provident Fund and Pension Fund aggregating Rs.39,55,708/- (Previous year Rs. 42,06,379/-) in the Profit & Loss Account.

b. Defined Benefit Plans:

I. Contribution to Gratuity.

Provision for Gratuity has been made on the basis of actuarial valuation as at the period ended 31st March, 2015 The Company has funding arrangement with LIC for Khamgaon, Dhule and Ghatanji units. For Head office, Synthetic and Malkapur units there are no such arrangement. The liability towards the employees is discharged in the year of retirement / cessation of employment. Details under the AS -15, are furnished below:

The Company has made provision of unrecoverable capital advances amounting to Rs.94,32,23,851/-given to various equipment suppliers and other parties mainly towards implementing Weaving Project. The amount represents balances outstanding for more than five years in respect of projects of the Company which have not taken off and have been dropped in view of the losses incurred by the Company. The equipment suppliers have forfeited the advances and the Company is pursuing with them for the recovery of the same. Pending such recovery, the Company has made a provision for the same in the books of accounts. Pre-operative expenses incurred for the project which were shown as Capital Work In Progress of Rs.4,62,00,730/- has been written-off as there are no assets against such expenses.

Note No.6.

Comparative figures for the previous year have been regrouped and / or rearranged wherever necessary.

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Mar 31, 2014

1. corporate INFORMATION

Birla Cotsyn (India) Limited ("the Company") is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 having its registered office at Dalamal House, first floor, Nariman Point, Mumbai 400 021.

The principal business of the Company is Cotton and Synthetic Yarn Manufacturing, Weaving of Grey Fabrics, Ginning & Pressing of Cotton Bales and Fabric Trading.

2.(a) Terms/ rights attached to the equity shares

The company has only one class of equity shares having a par value of Re.1/- per shares. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends (if any) in Indian rupees. The dividends (if any) proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation, the shareholders are entitled to receive remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholdings.

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares except for shares held by Bank of New York Mellon which are in the form of GDR.

(b) Details of shares issued for other than cash for the period of Five Years immediately preceeding the Balance Sheet date.

42,69,81,554 Equity Shares of Re.1/- each have been allotted on 4th October, 2010 as fully paid Bonus Shares by Capitalisation of Reserves & Securities Premium Account.

Note: 3 (a)

In respect of balance confirmation sought by the Company from various parties reflected under Inter corporate deposits and certain dues to related parties as on 31 March, 2014, no one has responded to the request of the Company and such balances are taken as appearing in books and the same are subject to confirmation and reconciliation. Consequential impact, if any, will be considered as and when determined. Further, few parties from whom the Company has taken Inter Corporate deposit have already filed winding up petition under section 433 & 434 of the Companies Act, 1956 against the Company for non-payment of dues. These matters are sub-judice and the impact, if any, of the outcome is unascertainable at this stage and same is provided as contingent liability note.

Note 4.a

In respect of balance confirmation sought by the company from various parties reflected under Capital Advances, no one has responded to the request of company and such balances are taken as appearing in books and the same are subject to confirmation and reconciliation, consequential impact if any, will be considered as and when determined.

Note 4.b

Dues from Subsidiary represents the loan given by the Company to it''s wholly owned subsidiary in Dubai. The same has been considered as good for recovery in view of the management.

Note 4.c

The Company had given loan to one related party which has negative net-worth as on balance sheet date and the same has been considered as good for recovery in view of the management.

Note No. 5

CONTINGENT LIABILITIES NOT PROVIDED FOR: Amount in Rs.

Sr. Particulars As at As at No. 31st March,2014 30th June,2013

a) Claims against Company not NIL 102,000 acknowledged as debt

b) Labour matter pending with 50,37,646 75,00,000 the court

c) Claims against cases filed by 1,13,55,086 13,49,68,435 Unsecured Lenders

Ultimate outflow for the matters referred to above depends on the settlement of these cases

Note No. 6

In the absence of necessary information relating to the suppliers registered as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has not been able to identify such suppliers and disclose the information required under the said Act relating to them.

Note No. 7

The Government of India has approved import of Capital Equipment under the "Exports Promotion Capital Goods Scheme" at a concessional rate of custom duty. Under the Scheme the Company purchased Capital Goods at nominal duty for which the Company has an export obligation aggregating to Rs.130,96.40 lakh, to be fulfilled within eight years from the date of issuance of respective licenses, failing which the duty saved aggregating Rs.1637.05 Lakh, together with interest and penalties, if levied, may have to be paid. As at the year end the Company has fulfilled Export Obligation aggregating Rs.7263.81 Lakh.

Note No. 8

EMPLOYEE BENEFITS DISCLOSURE AS PER AS-15 (REVISED) ISSUED UNDER ACCOUNTING STANDARD RULES 2006 (AS AMENDED).

a. Defined Contribution plans:

During the period ended 31st March, 2014 the Company has recognised the contribution to Employees Provident Fund and Pension Fund aggregating Rs.42,06,379/- (Previous year Rs.1,26,33,798/-) in the Profit & Loss Account.

II. Leave Encashment

Provision towards liability for Leave Encashment made on the basis of actuarial valuation as per Accounting Standard 15 (Revised). Actuarial value of liability is Rs.22,70,995/- (Previous year Rs.30,80,839/-) is based upon following assumptions.

Discount rate: 8.75%-9.2% (Previous year 8.00% - 8.75%)

Salary escalation: 5.00% - 7.00% (Previous year 5.00% - 7.00

* There is no repayment schedule for the above loans.

* Birla Cotsyn (India) Ltd FZE is an wholly own subsidiary of Birla Cotsyn India Limited and the loans advanced to the Company for furtherance of its business, further the loan is interest free. No further loan has been advanced during the current period. The increase in Loan Account is on account of Foreign Exchange Fluctuation resulting from restatement of loan account at exchange rate prevailing as at 31st March, 2014.

* No debt due from or to related parties are written off or written back during the year.

* Related parties are identified by the Management and relied upon by the Auditors.

Note No. 9

During the year the company has capitalised Nil interest (Previous year Nil).

Note No. 10

There is no exceptional item in the Current Yfear.

Note No. 11

Comparative figures for the previous year have been regrouped and / or rearranged wherever necessary.

Note No. 12

Consequent on losses incurred by the company in the past period, the company financial position has substantially gone down resulting in erosion of current assets significantly.

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Jun 30, 2013

1. CORPORATE INFORMATION

Birla Cotsyn (India) Limited ("the Company") is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 having its registered office at Dalamal House, first floor, Nariman Point, Mumbai 400 021.

The principal business of the Company is Cotton and Synthetic Yarn Manufacturing, Weaving of Grey Fabrics, Ginning & Pressing of Cotton Bales and Fabric Trading

Note No.2

The Government of India has approved import of Capital Equipment under the "Exports Promotion Capital Goods Scheme" at a concessional rate of custom duty. Under the Scheme the Company purchased Capital Goods at nominal duty for which the Company has an export obligation aggregating to Rs.13036.91 Lacs (previous year Rs.13167.39 Lacs), to be fulfilled within eight years from the date of issuance of respective licences, failing which the duty saved aggregating Rs.1629.61 Lacs (previous year Rs.1645.92 Lacs), together with interest and penalties, if levied, may have to be paid.

As at the year end the Company has fulfilled Export Obligation aggregating Rs.7338.62 Lacs (previous year Rs.5226.05 Lacs)

A. Defined Contribution Plans:

During year ending 30th June 2013, the Company has recognised the contribution to Employees Provident Fund and Pension Fund aggregating Rs.12,633,798 (Previous year Rs.10,181,308 ) in the Profit & Loss Account.

- There is no repayment schedule for the above loans

- Birla Cotsyn (India ) Ltd FZE is an wholly own subsidiary of Birla Cotsyn India Limited and the loans advanced to the Company for furtherance of its business, further the loan is interest free.

- No debt due from or to related parties are written off or written back during the year.

- Related parties are identified by the Management and relied upon by the Auditors.

Note

1. Textile includes manufacture of Synthetic Yarn, Cotton Yarn, Ginning and Pressing.

2. Segments have been identified in line with the Accounting Standard on Segment Reporting (AS -17) taking into account the organisation structure as well as the differential risks and returns of these Segments. All Segments assets and liabilities are directly attributable to the Segment.

3. Segment Revenue and Expenses are those which are directly attributable to the Segment.

Note No.3

During the year the company has capitalised Nil interest (Previous year Nil).

Note No.4

The exceptional item is the gain on forex fluctuation of GDR proceeds in the foreign bank A/c

Note No.5

Premises taken on Operating Lease

a. The Company has Operating Lease Agreements for the Office building and other premises. The rental expenses for the Operating Lease aggregating Rs.Nil (Previous year Rs. 4,224,026) has been debited to the Profit and Loss Account for the year.

b. Future lease rentals are determined on the basis of agreed terms.

c. At the expiry of the lease term, the Company has an option either to return the asset or extend the term by giving notice in writing.

d. The total future minimum rentals payable as at the Balance Sheet date are as under:

Note No.6

Comparative figures for the previous year have been regrouped and / or rearranged wherever necessary.

Note No.7

Consequent on losses incurred by the company in the past period, the company financial position has substantially gone down resulting in erosion of current assets significantly.

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Mar 31, 2012

1. CORPORATE INFORMATION

Birla Cotsyn India Limited is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, I956.

[A] Terms/ rights attached to the equity shares

The company has only one class of equity shares having a par value of Rs.1/- per shares. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends (if any) in Indian rupees. The dividends (if any) proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares except for shares held by Bank of New York Mellon which are in the form of GDR.

[B] Details of shares issued other than cash for the period of Five Years immediately preceeding the Balance Sheet date.

113,547,000 Equity Shares of Rs.1/- each have been allotted on 28th June, 2006 as fully paid Bonus Shares by Capitalisation of Reserves & Securities Premium Account.

426,981,554 Equity Shares of Rs.1/- each have been allotted on 4th October, 20I0 as fully paid Bonus Shares by Capitalisation of Reserves & Securities Premium Account.

Security and Terms of repayment including current maturities of long term borrowings.

a) Term Loan from SICOM Ltd. carries interest @ 16.75% p.a. The entire loan is repayable in 10 quarterly Instalments of Rs. 60.00 Lacs and 10 quarterly instalment of Rs.40.00 Lacs, with the last Instalment due on 15th September, 2012. Outstanding principal amount as at 31st March, 2012 is Rs.7,000,000/- There is an default in Interest of Rs.173,127/-

b) Term Loan from Union Bank of India carries interest @ 15.75 % p.a.The entire loan is repayable in 32 quarterly Instalments of Rs. 62.50 Lacs, with the last instalment due on 31st March, 2017. Outstanding principal amount as at 31st March, 2012 is Rs.131,116,462/-. There is a default in Instalment Rs.6,250,000/- & Interest Rs.5,393,341/-.

c) Term Loan from Axis Bank Ltd. carries interest @ 15.00% p.a.The entire loan is repayable in 28 quarterly Instalments of Rs. 53.57 Lacs, with the last instalment due on 31st December, 2015. Outstanding principal amount as at 3Ist March, 2012 is Rs.78,505,284/-. There is a default in Instalment for Rs.5,357,143/- and Interest of Rs.3,441,507/-

d) Term Loan from Bank Of India carries interest @ 16.25% p.a. The entire loan is repayable in 30 quarterly Instalments of Rs. 83.33 Lacs, with the last instalment due on 31st March, 2017. Outstanding principal amount as at 31st March, 20I2 is Rs.172,499,052/-. There is a default in Instalment Rs.8,333,333/- & Interest Rs.7,557,522/-.

e) Term Loan from Indian Overseas Bank carries interest @ 15.50% p.a. The entire loan is repayable in 30 quaterly Instalments of Rs. 83.33 Lacs, with the last instalment due on 31st July, 20I7. Outstanding principal amount as at 31st March, 20I2 is Rs.191,629,337/-. There is a default in Instalment Rs.8,333,300/- & Interest Rs.7,611,426/-.

f) Term Loan from Oriental Bank of Commerce carries interest @ I7.00 % p.a. The entire loan is repayable in 30 quarterly Instalments of Rs. 50.00 Lacs, with last instalment due on 30th June, 20I6. Outstanding principal amount as at 31st March, 20I2 is Rs.89,722,775/-. There is a default in Instalment Rs.5,000,000/- & Interest Rs.4,171,44I/-.

g) Term Loan from Canara Bank carries interest @ 15.00 % p.a. The entire loan is repayable in 24 Quaterly Instalments of Rs. 62.50 Lacs with the last instalment due on 3Ist December, 2015. Outstanding principal amount as at 31st March, 20I2 is Rs.100,000,063/-. There is a default in Instalment Rs.6,250,000/- & Interest Rs.1,799,359/-.

h) Term Loan from State Bank of India carries interest @ 17.75% p.a. The entire loan is repayable in 8 monthly Instalments of Rs.15.60 Lacs, 1st monthly instalment of Rs.16.20 Lacs, 36 monthly instalments of Rs.13.00 Lacs, 44 monthly instalment of Rs. 16.65 Lacs, 4 monthly Instalments of Rs. 16.85 Lacs, 2 monthly instalment of Rs. 30.30 Lacs & Imonthly instalment of Rs. 30.40 Lacs, with the last instalment due on 30th June, 2017. Outstanding principal amount as at 31st March, 20I2 is Rs.107,300,000/-. There is a default in Instalment Rs.3,900,000/- & Interest Rs.4,823,001/-.

i) Term Loan from The Catholic Syrian Bank Ltd. carries interest @ 15.50% p.a. The entire loan is repayable in 20 quaterly Instalments of Rs. 50.00 Lacs with the last instalment due on 31st March, 2015. Outstanding principal amount as at 31st March, 20I2 is Rs.62,670,664/- There is a default in Instalment Rs.5,000,000/- & Interest Rs.2,681,958/-.

j) Term Loan from Janakalyan Sahakari Bank Ltd. carries interest @ 15.00% p.a. The entire loan is repayable in 77 monthly Instalments of Rs. 3.21 Lacs and 1st monthly instalment of Rs.2.83 Lacs, with the last instalment due on 31st January, 2015. Outstanding principal amount as at 31st March, 2012 is Rs.19,294,804/-. There is a default in Instalment Rs.963,000/-.& Interest Rs.554,099/-.

k) Term Loan from Bank Of India, (Housing Complex) carries interest @ 15.25 % p.a. The entire loan is repayable in 89 monthly instalments of Rs. 8.00 Lacs and I monthly instalment of Rs.3.00 Lacs, with the last instalment due on 30th August, 2019. Outstanding principal amount as at 31st March, 20I2 is Rs.57,321,482/-. There is a default in Instalment Rs.800,000/- & Interest of Rs.2,207,320/-.

l) Vehicals Loan from Axis Bank Ltd. carries interest @ 9.50 % p.a. (on a monthly reducing basis) The entire loan is repayable in 35 monthly instalments of Rs. 20,340/- each with the last instalment due on 1st November, 20I2. Outstanding principal amount as at 3Ist March, 2012 is Rs.157,073/-. Vehical Loan from ICICI Bank Ltd.. carries interest @ 10.75% p.a. The entire loan is repayable in 36 monthly instalments of Rs.33,300/- each with the last instalment due on I5th December, 2012. Outstanding principal amount as at 31st March, 2012 is Rs.630,212/-.

m) All the above Term Loans have First pari passu charge on all the fixed assets (present and future) pertaining to all the assets of the Company and Second pari passu charges on all the stocks and Book debts of the Company

n) The Vehicle Loan Finance is secured by Hypothecation of respective vehicles.

Note - 2 CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars 2011-2012 2010-2011 (Amt in Rs) (Amt in Rs)

a) Claims against Company not acknowledged as debt 102,000 102,000

b) Labour matter pending with the court 75,00,000 1,515,097

Ultimate outflow for the matters referred to above depends on the settlement of these cases

Note - 3

In the absence of necessary information relating to the suppliers registered as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has not been able to indentify such suppliers and disclose the information required under the said Act relating to them.

Note - 4

The Government of India has approved import of Capital Equipment under the "Exports Promotion Capital Goods Scheme" at a concessional rate of custom duty. Under the Scheme the Company purchased Capital Goods at nominal duty for which the Company has an export obligation aggregating to Rs.13167.39 Lacs (previous year Rs.13167.39 Lacs), to be fulfilled within eight years from the date of issuance of respective licences, failing which the duty saved aggregating Rs.1645.92 Lacs (previous year Rs.1645.92 Lacs), together with interest and penalties, if levied, may have to be paid.

As at the year end the Company has fulfilled Export Obligation aggregating Rs.5226.05 Lacs (previous year Rs.2309.03 Lacs)

Note - 5

There are no derivative instruments outstanding as at the year end. Foreign currency exposure which are not hedged as at the year end are as follows

Note - 6 EMPLOYEE BENEFITS DISCLOSURE AS PER AS-15 (REVISED) ISSUED UNDER ACCOUNTING STANDARD RULES 2006 (AS AMENDED).

A Defined Contribution Plans:

During year ending 31st March 2012, the Company has recognised the contribution to Employees Provident Fund and Pension Fund aggregating Rs.10,181,308 (Previous year Rs.9,039,436) in the Profit & Loss Account.

B Defined Benefit Plans:

i Contribution to Gratuity.

Provision for Gratuity has been made on the report of Actuary as at the year ended 31st March 20I2. The Company has funding arrangement with LIC for Khamgaon, Dhule and Ghatanji units. For Head office, Synthetic and Malkapur units there are no such arrangement. The liability towards the employees is discharged in the year of retirement / cessation of employment. Details under the AS -I5, are furnished below:

ii. Leave Encashment

Provision towards liability for Leave Encashment made on the basis of actuarial valuation as per Accounting Standard 15 (Revised). Actuarial value of liability is RsI,252,796 (Previous year Rs 994,500) based upon following assumptions Discount rate 8.00% - 8.75% (Previous year 8.00% - 8.25%)

Salary escalation 5.00% - 7.00% (Previous year 5.00% - 7.00%)

- There is no repayment schedule for the above loans

- Birla Integrated Textile Park Limited is an subsidiary company of Birla Cotsyn India Limited, wherein Birla Cotsyn India Limited has an holding of 51% and the loans have been advanced to Birla Integrated Textile Park Limited for execution of the project.

- Birla Cotsyn (India) Ltd FZE is an wholly own subsidiary of Birla Cotsyn India Limited and the loans advanced to the Company for furtherance of its business, further the loan is interest free.

d) No debt due from or to related parties are written off or written back during the year.

- Related parties are identified by the Management and relied upon by the Auditors.

Note - 7

During the year the company has capitalised Nil interest (Previous year Rs. 23,765,III).

Note - 8

The exceptional item is the gain on forex fluctuation of GDR proceeds in the foreign bank A/c

Note - 9

Premises taken on Operating Lease

a. The Company has Operating Lease Agreements for the Office building and other premises. The rental expenses for the Operating Lease aggregating Rs.4,224,026 (Previous year Rs. 3,791,460) has been debited to the Profit and Loss Account for the year.

b. Future lease rentals are determined on the basis of agreed terms.

c. At the expiry of the lease term, the Company has an option either to return the asset or extend the term by giving notice in writing.

d. The total future minimum rentals payable as at the Balance Sheet date are as under:

Note - 10

Comparative figures for the previous year have been regrouped and / or rearranged wherever necessary.

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Mar 31, 2011

1. Contingent Liabilities not provided for in respect of:

Particulars 2010 - 2011 2009 - 2010 (Amt in Rs) (Amt in Rs)

a) Claims against Company 102,000 102,000 not acknowledged as debt

b) Labour matter pending 1,515,097 1,515,097 with the court

Ultimate outflow for the matters referred to above depends on the settlement of these cases

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs. 9,297,5 13 (previous year Rs. 4,453,574)

3. In the absence of necessary information relating to the suppliers registered as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has not been able to indentify such suppliers and disclose the information required under the said Act relating to them.

4. The Government of India has approved import of Capital Equipment under the "Exports Promotion Capital Goods Scheme" at a concessional rate of custom duty. Under the Scheme the Company purchased Capital Goods at nominal duty for which the Company has an export obligation aggregating to Rs. 13 167.39 Lakhs (previous year Rs. 12538.10 Lakhs), to be fulfilled within eight years from the date of issuance of respective licences, failing which the duty saved aggregating Rs. 1645.92 Lakhs (previous year Rs. 1604.07 Lakhs), together with interest and penalties, if levied, may have to be paid.

As at the year end the Company has fulfilled Export Obligation aggregating Rs.2309.03 Lakhs (previous year Rs.861.54 Lakhs)

5. B. The Company has issued 106,745,500 Convertible Equity Shares Warrants on 12th October, 2010 to the Promoter's of the Company at an issue price of Rs. 1. 13 per Warrant. On 15th March, 2011 the Company has converted 50,372,750 Equity Shares at Rs. I amounting to Rs. 50,372,750 and premium of Rs. 0.13 amounting to Rs. 6,548,457 transferred to the Securities Premium Account. Listing approval has been received from BSE and awaited from NSE. As on 31st March, 2011 56,372,750 Convertible Equity shares Warrants amounting to Rs 63,701,208 at an issue price of Rs. 1.13 is outstanding of which 25% amounting to Rs. 15,925,698 is in the share warrant account with the Company.

C. The Company allotted 968,900,000 Equity Shares of face value of Rs. I per share at a premium of Rs.0.20 per Share under the GDR offer aggregating Rs. 1,128,392,567 including the premium of Rs. 159,492,567, on 15th March 2010 for General Corporate purpose and long term Working Capital Requirements (including cost of setting up foreign subsidiaries). The proceeds net of expenses (Expenses of Rs.42,858,852) and interest income (Interest Income of Rs. I 1,160,856) were partly utilised for capitalization of its Wholly Owned Subsidiary - Birla Cotsyn (India) Ltd (FZE), which includes investment subsidiary (Rs.43 1,473), loans to subsidiary (Rs.352,703,289 and) and exchange loss of Rs. 2,075,238 due to US Dollar / AED conversion, Partly for Project advances and General Corporate purpose (Rs.20,800,804) and the balance amount of Rs.717,723,781 (Net of Foreign Exchange loss is Rs. 2,959,985.) is held in current account with a non - scheduled bank, pending utilisation. Hence the question of verification does not arise.

6. Disclosure pursuant to Accounting Standard AS-15 "Employee Benefits."

A. Defined Contribution Plans:

During year ending 31st March 2011, the Company has recognised the contribution to Employees Provident Fund and Pension Fund aggregating Rs.9,039,436 (previous year Rs.8,617,756) in the Profit & Loss Account.

B.Defined Benefits Plans:

II. Leave Encashment

Provision towards liability for Leave Encashment made on the basis of actuarial valuation as per Accounting Standard 15 (Revised). Actuarial value of liability is Rs. 994,500 (previous year Rs 1, 159,195) based upon following assumptions

Discount rate 8.25% - 8.50% (Previous year 8.25%)

Salary escalation 5.00% - 7.00% (Previous year 5.00% - 6.50%)

7. During the year the company has capitalised interest aggregating to Rs. 23,765,1 II (Previous year Rs. 79,793,905).

8. Premises taken on Operating Lease

a. The Company has Operating Lease Agreements for the Office building and other premises. The rental expenses for the Operating Lease aggregating Rs. 3,791,460 (previous year Rs. 1,764,800) has been debited to the Profit and Loss Account for the year.

b. Future lease rentals are determined on the basis of agreed terms.

c. At the expiry of the lease term, the Company has an option either to return the asset or extend the term by giving notice in writing.

9. Comparative figures for the previous year have been regrouped and or rearranged wherever necessary.

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Mar 31, 2010

1. Contingent Liabilities not provided for in respect of:

Particulars 2009 - 2010 2008 - 2009

(Amt in Rs) (Amt in Rs)

a) Claims against Company not acknowledged as debt 102,000 102,000

b) Labour matter pending with the court 1,515,097 -

Ultimate outflow for the matters referred to above depends on the settlement of thesecases

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs.4,453,574 (previous year Rs.10,019,907)

3. In the absence of necessary information relating to the suppliers registered as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has not been able to indentify such suppliers and disclose the information required under the said Act relating to them.

4. The Government of India has approved import of Capital Equipment under the "Exports Promotion Capital Goods Scheme" at a concessional rate of custom duty. Under the Scheme the Company purchased Capital Goods at nominal duty for which the Company has an export obligation aggregating to Rs.12538.10 Lakhs (previous year Rs.12538.10 Lakhs), to be fulfilled within eight years from the date of issuance of respective licences, failing which the duty saved aggregating Rs.1604.07 Lakhs (previous year Rs.1604.07 Lakhs), together with interest and penalties, if levied, may have to be paid.

Notes :

a) With respect to provision for gratuity, no disclosure is being made in the absence of separate figure.

b) Remuneration paid for the year 2009 - 2010 includes Rs.638,035 which is subject to the approval of Shareholders of the Company.

5. The Company hitherto, provided depreciation on its plant and machinery on shift basis, at the rates specified in Schedule XIV to the Companies Act, 1956 (the Schedule). During the year, the Company has, on the basis of a technical opinion, considered its plant and machinery to be a Continuous Process Plant (CPP) and has accordingly recomputed/provided depreciation retrospectively at the rates applicable to a CPP under the Schedule.

Accordingly, excess depreciation as at March 31, 2009, amounting to Rs.17,808,370 has been credited to the Profit and Loss Account by netting off Depreciation/ Amortisation for the year. As the result of this change, depreciation for the year is lower by Rs. 17,112,932, the profit before tax is higher by an equivalent amount and the Reserves and Surplus is higher by Rs. 23,321,319.

6. a) The Company has split the stocks of face value of Rs.10 each into stock of face value of Rs.1 each with effect from 26th October 2009.

Pending complete utilization, the balance amount is held in Current accounts and Loans and Advances for timely availability of resources when required.

c) The Company allotted 968,900,000 Equity Shares of the face value of Rs.1 per Share at a premium of Rs.0.20 per Share under the GDR Offer aggregating Rs. 1,128,392,567 including the premium of Rs.159,492,567, on 15th March 2010 for General Corporate purpose and long term Working Capital Requirements (including cost of setting up foreign subsidiaries). The proceeds have been held in current account with a non-scheduled bank, pending utilization for the objects of the issue.

7. Disclosure pursuant to Accounting Standard AS-15 "Employee Benefits."

A. Defined Contribution Plans:

During year ending 31st March 2010, the Company has recognised the contribution to Employees Provident Fund and Pension Fund aggregating Rs.8,617,756 (previous year Rs.7,212,542) in the Profit & Loss Account.

II. Leave Encashment

In accordance with the AS-15, the Company has fully provided for its liability determined on the basis of Actuarial Valuation carried out as at the year end.

Note

1. Textile includes manufacture of Synthetic Yarn, Cotton Yarn, Ginning and Pressing.

2. Segments have been identified in line with the Accounting Standard on Segment Reporting (AS -17) taking into account the organisation structure as well as the differential risks and returns of these Segments. All Segments assets and liabilities are directly attributable to the Segment.

3. Segment Revenue and Expenses are those which are directly attributable to the Segment.

8. Additional information pursuant to the provision of Schedule VI of the Companies Act, 1956 Government’s Notification No.C.S.P.494(E) dated 30th October 1973.

9. During the year the company has capitalised interest aggregating to Rs. 79,793,905 (previous year Rs.75,959,712).

10. Premises taken on Operating Lease

a. The Company has Operating Lease Agreements for the Office building and other premises. The rental expenses for the Operating Lease aggregating Rs.1,764,800 (previous year has been debited to the Profit and Loss Account for the year.