అకౌంట్స్ గమనికలుSuper Syncotex (India) Ltd.

Mar 31, 2012

1. TRADE PAYABLES

1.1 The Company has not received any intimation from the suppliers as Micro, Small and Medium Enterprises. In the absence of such information, the amount due to Micro and small supplier under the provision of "Micro, Small and Medium Enterprises Development Act, 2006 (MSMED)", as at 31.03.2012 could not be bifurcated separately and also interest due, if any under the provision of said Act to such suppliers is not ascertainable. Interest If any, would be accounted an receipt of information.

1.2 Balance of Trade payables are subject to confirmation.

2. FIXED ASSETS

2.1 The Company has acquired leasehold land at Mehla at a cost of Rs. 27.23 lacs vide Govt. of Rajasthan order no. P/8/Industries/1/94 dated 9th Aug. 1999 and lease executed in favour #### company on 7th Sept. 1999. The allotment of this land is cancelled by Govt of Rajasthan #### non establishing industry with in stipulated time, however the issue was raised before honourable #### High court, Jodhpur and order of the state Govt. is stayed and land is under in continues pos#### of the company.

2.2 Capital work in process include Building under construction Rs. 262573/- (Previous Year Rs. 262####/-) and other preoperative expenses of Rs. 852390/- (Previous Year Rs. 852390/-) in respect to the textile unit at Mania, the implementation thereof has been shelved for the time being.

2.3 The company had taken industrial land on lease rent for putting up Yarn Doubling Plan expenses of Rs. 680000/- incurred on lease rent upto 31/03/2011 has been charged to #### operative expenses.

3. INVENTORIES

3.1 Physical verification of inventories could not be carried out during the year, As per the scheme submitted to BIFR the values of inventories taken for Rs. 6.98 lacs as against book values of Rs.69.75 lacs, the basis of which is not explained to us, Difference between book value and taken in scheme has been written off during the FY 2P09-10.

3.2 The amount of Excise Duty leviable on uncleared goods as on 31st March, 2012 amounts to Rs.0.05 lacs (Previous Year Rs. 0.05 lacs). Same has neither been taken in valuation of stocks nor provided for, hence not having any impact on Statement of Profit & Loss.

4. TRADE RECEIVABLES

4.1 Sundry Debtors includes an amount on Rs. 45.78 lacs (Previous Year Rs. 45.78 lacs.) which are under litigation against which provision for doubtful debt has been made.

4.2 Balance of Trade receivables are subject to confirmation.

5. CASH & BANK BALANCES

5.1 Bank balances are subject to reconciliation and confirmation.

6. EXCEPTIONAL ITEMS

6.1 Sundry creditors had been written back to the extent of 85% as per the scheme approved by Hon'ble BIFR during FY 2009-10. The excess write back of creditors were reverted back during FY 2010-11.

7. The company is registered as a sick company with BIFR.The hon'ble BIFR has passed an order on 23/6/2009 for de merger of Spinning Unit (the industrial undertaking, situated at Khari to Lamba, Gulabpura Dist Bhilwara) into Suzuki Textiles Ltd. Accordingly, assets and Liabilities are transferred to transferee company during financial year 2009-10.

8 Contingent Liabilities not provided for, in respect of de-merged industrial unit of the Company would be taken care of by the transferee company, as per scheme approved by BIFR.

9. RELATED PARTY DISCLOSURE.

Names of related parties and description on relationship

a) Key Management Personnel

Shri B.S. Sacheti : Chairman cum Managing director

Shri V. S. Sancheti : Joint Managing director

Shri Anil Kumar Sancheti : Executive Director

b) Companies Controlled by Directors/relatives : Nil

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Mar 31, 2009

(i) Estimated amount of contracts remaining to be executed on Capital Account Rs. 135.51 lacs against which advance given Rs.5.97 lacs (Previous Year Rs. 135.51 lacs against ad- vance which given Rs. 5.97 lacs)

(ii) Contingent Liabilities not provided for:

(a) In respect of sales tax demands under dispute of Rs 4.33 lacs (Previous Year Rs.4.33 lacs) against which Rs.Nil (Previous Year Rs. Nil). The Sales Tax Assessment of some earlier years are pending, the liability, if any, is not ascertainable.

(b) In respect of Excise demands under dispute of Rs. 128.16 lacs (Previous Year Rs.

128.16 lacs) against which Rs. 1.30 lacs (Previous Year Rs. 1.30 lacs) paid and shown as deposit with Govt. Departments and others.

(c). In respect of Employees state Insurance under dispute of Rs. 3.00 lacs (Previous year Rs. 3.00) against which paid Rs. 3.00 lacs and shown as as deposit with Govt. Deparment ments and others.

(d) Custom duty of Rs. 335.26 Lacs due to non fulfillment of export obligation against import of capital goods under EPCG Licences and interest thereon, amount not ascertained.

(iii) The company is registered as a sick company with BIFR. Due to non viability, opera- tions of the plant are under suspension since 25th Oct, 2005.The company is exploring possibility of rehabilitation of the plant. Accordingly, these accounts have been pre- pared on "going concern basis".

The company has prepared rehabilitation cum de-merger scheme to de-merge its in- dustrial unit having spindles 29200 into Suzuki Textiles Ltd.The proposed appointed date is 1/4/2007. The accounting entries will be passed on effective date, subject to sanction of scheme by BIFR / Shareholders and other persons having interest in the scheme of revival/ de-merger.

The company has passed a special resolution in the meeting of shareholders held on 29.9.2007 to reduce issued, subscribed and paid up equity share capital of Rs. 11,54,63.780.divided into 11546378 equity shares of Rs. 10 each fully paid up by cancellation of Rs. 5/- per equity shares of Rs. 10/- each and simultaneously consolidation of 2 equity shares into 1 equity shares resulting into reduction in share capital to Rs. 57731890 consisting of 5773189 equity shares of Rs. 101- each by adjusting debit balance in Profit & Loss Account. The accounting entries have not been passed in the books as the approval of BIFR is pending in this matter.

(iv) Physical verification of inventories could not be carried out during the year. The management does not envisage any material shortage therein, hence inventories have been taken same as in the previous year and inventories have been valued on the same value as in the previous year. As per the scheme submitted to BIFR, the values of inventories taken for Rs. 6.98 lacs as against book values of Rs.69 75 lacs, the basis of which is not explained to us.

(v) Depreciation amounting to Rs 246.02 lacs for the financial year 2008-09, cumulative upto 31.3.2009 amounting to Rs. 738.13 lacs upto 31.3.2009 has not been provided for as the operation of unit were closed.

(vi) In the absence of necessary advise from the Bank, the accounting entries in respect of devolvement of certain L/Cs issued by the Bank, have not been passed in the books of accounts amounting to Rs.248.86 lacs.

(vii) The company has entered into settlement/ OTS with IDBI at Rs. 925.45 lacs, Standard Chartered Bank (Assignee of ICICI term loan and SBI working Capital limit) at Rs. 332.00 lacs, IFCI at Rs. 24.02 lacs and BOB at Rs. 118.58 lacs. Entries for waiver of interest of Rs. 258.70 lacs and principal amount of Rs. 3997.96 lacs will be carried on receipt of no dues/ charge release letter from the respective secured lenders and approval of scheme of ar- rangement by the honble BIFR.

(viii) The company has raised unsecured loans of Rs. 1481.26 lacs from Suzuki Textile Ltd (a transferee company as per scheme of arrangement approved by shareholders) to pay the settlement amount to FIs/ Banks, Statutory and other liabilities of a transferor company. No interest has been provided on the above unsecured loans.

(ix) Sundry Debtors includes an amount on Rs.45.78 lacs (Previous Year Rs. 46.98 Lacs.) which are under litigation against which provision for doubtful debt has been made.

(x) The liability for Gratuity & Bonus for the F. Y. 2008-09,2007-08 and FY 2006-07 has not been provided for as there were no employee at the year of respective years. Accumulated liabili- ties of gratuity and bonus upto 31.03.2006 works out. to Rs. 121.25 lacs and Rs. 51.81 lacs respectively which has not been provided for in the books. Due to suspension of operation of industrial unit of the company w.e.f 25th Oct., 2005, liability for payment to worker due to unemployment, if any, is not ascertainable.

M/s Suzuki Textiles Ltd (transferee company under the scheme of arrangement forming part of Draft Rehabilitation scheme filed with BIFR) has settled dues of some worker but accounting entries for such payments are yet to be effected in the books of the company.

(xi) No provision for taxation is considered as there is no taxable Income during the current year.

(xii) The Companies has not received any intimation from the suppliers as Micro, Small and Medium Enterprises. In the absence of such information, the amount due to Micro and small supplier under the provision of "Micro, Small and Medium Enterprises Development Act, 2006 (MSMED)". as at 31.03.2009 could not be bifurcated separately and also interest due, if any, under the provision of said Act to such suppliers is not ascertainable. Interest if any, would be accounted on receipt of information.

(xiii) Sundry creditors of Rs. 153.46 lacs are shown net of debit balances of Rs. 52.49 lacs (Previous Year Rs. 52.49 Lacs)

(xiv) The amount of Excise Duty leviable on uncleared goods as on 31" March, 2009 amounts to Rs. 0.05 lacs (Previous Year Rs. 0.05 lacs). Same has neither been taken in valuation of stocks nor provided for, hence not having any impact on Profit & Loss A/c.

(xv) In view of the stipulations by Financial Institutions, the Company has not provided interest on unsecured loans from Promotors/ Directors relatives and associate companies & others.

(xvi) Remuneration to Chairman-cum-Managing Director & Joint Managing Director for the year has not been provided in accounts as the same has been waived by the Directors due to sick position of company.

(xvii) Balance of Sundry Debtors and Creditors are subject to confirmation.

(xviii) Bank Balances are subject to reconciliation and confirmation.

(xix) The Company has acquired leasehold land at a cost of Rs 27.23 lacs vide Govt, of Rajasthan order no. P/8/lndustries/1/94 dated 9th Aug. 1999 and lease executed in favour of company on 7th Sept. 1999. The allotment of this land is cancelled by Govt of Rajasthan due to non establishing industry with in stipulated time, however the issue was raised before honorable High court, Jodhpur and order of the state Govt.is stayed and land is under in continues possession of the company.

(xx) In the opinion of the Management, the Current Assets and advances are approximately, of the value states, if realised in the ordinary course of business unless otherwise stated. The provisions for all known liabilities are adequate and not in excess/short of the amount reasonably necessary.

(xxi) Figures for previous year have been regrouped/rearranged wherever considered necessary.

(xxii) Figures have been rounded off to the nearest rupee.

(xxiii) Expenses and Income related to Previous Year Rs.347800 and Rs. NIL respectively

(Previous year Rs.260850 and Rs. Nil) has been debited/ credited to respective head of account.

(xxiv) Capital work in process include Building under construction Rs.262574/-(Previous Year Rs.262574/-) and other pre-operative expenses Rs.852390/-(Previous Year Rs. 852390/-) in respect of a textile unit at Mahla, the implementation thereof has been shelved for the time being.

(xxv) As per A.S. 28 regarding impairment of assets issued by ICAI, The Company has identi- fied the assets, which would fetch realisable value lower than book value but appropriate provision for impairment loss of Rs. 920.52 (Plant & Machinery Rs. 912.41 lacs, Furniture & Fixtures Rs. 2.71 lacs, Office Equipments Rs. 2.63 lacs and Vehicles Rs. 2.77 lacs ) has not been made in the books of accounts. The impairment loss in the value of assets has been worked out by the company based on valuation by the Registered valuer after considering the depreciation for the year 2006-07. Further impairment if any has not been ascertained by the company.

(xxvi) Related Party Disclosure in accordance with the Accounting Standad-18 issued by the Institute of Chartered Accountants of India and effective from 1" April,2001 is given below

1. Names of related parties and description on relationship -

a) Key Management Personnel

01. Shri BS. Sancheti Chairman cum Managing Director

02 Shri VS. Sancheti Joint Managing Director

03. Shri Anil Kumar Sancheti Executive Director

b) Companies Controlled Nil by Directors/relatives

(xxvii) The company has given Khari Ka Lauiba Unit on lease to M/s Suzuki Textiles Limited (transferee company under the scheme of arrangement forming part of Draft Reha- bilitation scheme filed with BIFR) w.e.f 12th July, 2008 to till 31/3/2009 or sanction of rehabilitation scheme which ever is earlier.

(xxviii) Additional information pursuant to the provision of paragraph 3 & 4 of Part II of "Schedule-VI" of the Companies Act, 1956.