The Company had filed reference under Section 15(1) of Sick Industrial Companies (Special Provisions) Act, 1985 with the Board of Financial and Industrial Reconstruction on 18.04.2012 and said reference was registered on 26.04.2012.

Further the company was declared a 'sick industrial company' under Section 3(1)(o) of Sick Industrial Companies (Special Provisions) Act, 1985 on its hearing dated 29.05.2013 and appointed Industrial Development Bank of India (IDBI) as the Operating Agency u/s. 17(3) of the Act to prepare a rehabilitation scheme for the company.

However as per the order dated 04.08.2015 the Bench of Board for Industrial and Financial Reconstruction held on 01.07.2015 that the case stands abated in terms of third proviso of sub-section(1) of Section 15 of SICA,1985. And further stated that all the creditors including statutory authorities are at liberty to recover their dues, in accordance with law.

2. CONTINGENT LIABILITIES (Rs. IN LACS):

                                              As at             As at
                                         31.03.2015          31.03.2014

Bank Guarantees                              Nil               41.68

Claims against the company not
acknowledged as debt*                     521.99              521.99

Gratuity                                   60.72               31.71

*Note: The company has been legally advised that the demands raised are likely to be either deleted or substantially reduced and accordingly no provision has been made.

# The company has provided for gratuity of employee at Dadra Plant during the year.

3. The company is engaged in manufacturing Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY) Polyester Texturised Yarn, Polyester Draw Twisted Yarn, Polyester Twisted Yarn and Nylon Yarn.

4. Previous Year's Figures have been recasted and regrouped wherever considered necessary to make them comparable with those of current year.

5. Trade Receivables, Trade Payables, Advances from customers, Deposits with Banks, Unsecured Short Term Borrowings and Long Term & Short Term Loans and Advances are subject to confirmation.

6. Interest Receivable comprised of Interest Subsidy under Technology Upgradation Fund Scheme. During the earlier year 2010-11 the Company had credited the interest receivable from the bank as interest subsidy under the Technology Upgradation Fund Scheme amounting to Rs. 863.24 Lacs. Against the said amount the Company had received interest subsidy of Rs. 71.72 Lacs during the financial year 2011-12 and thereafter has not received any interest subsidy. Therefore as on 31.03.2015, interest subsidy to be received is ' 791.52 Lacs i.e. same as the balance receivable as on 31.03.2014. The calculation of interest subsidy receivable is based on statements provided to us. The balance is subject to confirmation from the bank.

7. Working Capital Facilities, Term loan as well as Working Capital from Oriental bank of Commerce Mumbai, ING Vysya Bank Mumbai, State Bank of India Mumbai, Industrial Development bank of India Mumbai, Standard Chartered Bank Mumbai, and State Bank Of Saurashtra Mumbai are secured by way of hypothecation of Stock, Book Debts, Equitable Mortgage of Factory Land and Building, Plant and Machinery and personal guarantee of all the Promoter Directors.

An unsecured loan from Indian Overseas Bank, Baroda for Rs. 500 Lacs has been sanctioned and availed, secured by the personal guarantee of Directors of the Company only.

Term loan from HDFC is secured by way of hypothecation of Motor Cars.

8. The balances with Term Loans and Cash Credit Account of State Bank of India, ING Vysya Bank Ltd and Oriental Bank of Commerce and Term Loan of Industrial Development Bank of India are subject to confirmation from the respective banks.

9. The Company holds investment in 1135800 equity shares of GSL Nova Petrochemicals Ltd. and 350500 equity shares of CIL Nova Petrochemical Ltd. out of which 323000 shares of GSL Nova Petrochemicals were pledged against the loan obtained by GSL Nova Petrochemicals Ltd. and 161500 Shares of CIL Nova Petrochemical Ltd were pledged against the loan obtained by CIL Nova Petrochemical Ltd.

10. LOSS OF STOCK IN FIRE:

On account of fire occurred in the company's factory premises on 30.06.2008 stock were destroyed. According to the Company, the estimated loss due to fire was Rs. 2051.51 Lacs. The company had made a claim with its insurer New India Assurance Co. Ltd. The insurer New India Assurance Co. Ltd. vide its letter dated 09.12.2009 repudiated liability for any claim. The company made detailed submission on 16.12.2009 pointing out that the reasons given by the insurer for repudiating claim were not germane and correct. The solicitor of the company wrote to the insurer for providing copies of papers on which the insurer relied. The company also made application under Right to Information Act 2005 on 07.12.2009. The insurer did not provide all the papers and therefore company again wrote to the insurer on 11.08.2010 that all the papers should be provided by the insurer. On non receipt of the required papers company approached the grievance redressal officer IRDA Hyderabad. By letter dated 14.06.2010 IRDA merely reproduced what insurance company had informed them without their comments. Being aggrieved the company filed complaint under Section 21(A)(1) of Consumer Protection Act 1986 before the National Consumer Disputes Redressal Commission New Delhi on 08.12.2010 and the matter is pending before them.

On the basis of above mentioned facts, upto the year ended on 31 March 2011, the company had separately mentioned the value of destroyed goods amounting to Rs. 2051.51 Lacs, which is claimed by the company from Insurance company.

During the financial year 2011-12 the company had removed the amount of loss of stock in fire, by crediting the said amount as income under the head 'Claim Receivable on Loss of Stock on fire' and debiting the said amount as 'Claim Receivable from Insurance Company'.

For the stock destroyed in fire the Company had amount receivable of Rs. 111.42 Lacs as excise duty credit from Central Excise Department. During the financial year 2011-12 the company had credited the 'Balance with Central Excise Authority' and debited 'Excise Receivable for Stock Lost in Fire from Insurance Company' by Rs. 111.42 Lacs based on the order dated 20.01.2012 received from Commissioner Central Excise, Customs and Service Tax, Vapi.

Consequently, as on 31.03.2012 the 'Claim Receivable on Loss of Stock on fire' is standing at Rs. 2162.93 Lacs in the balance sheet, which is being carried forward as on 31.03.2015 as well.

11. WRITE OFF AMOUNT OF TERM LOAN BY BANK :

The ING Vysya Bank Ltd., have written off Rs. 18,14,90,530.05 in Term Loan Account during FY 2013-14. The company have written a letter to the Bank to know the reason for the said writing off. The company has not received any explanations about the same and therefore said amount is not written off by the company in its books of account and therefore the balance outstanding in the name of ING Vysya Bank Ltd is shown higher by that amount Rs. 18,14,90,530.05 and correspondingly the Profit & Loss Account balance in Balance Sheet show the loss figure higher by the amount '18,14,90,530.05.

The Standard Chartered Bank have written off Rs. 20,29,76,713.71 in Term Loan Account during FY 2013-14. The company have written a letter to the Bank to know the reason for the said writing off. The company has not received any explanations about the same and therefore said amount is not written off by the company in its books of account and therefore the balance outstanding in the name Standard Chartered Bank is shown higher by that amount Rs.20,29,76,713.71 and correspondingly the Profit & Loss Account balance in Balance Sheet show the loss figure higher by the amount Rs. 20,29,76,713.71.

12. The Oriental Bank of Commerce have issued a letter No. CN/5501/GUPTA/2166/2014 dated 01.04.2014 stating that the bank have assigned all our banking accounts with the bank to M/s. Edelweiss Asset Reconstruction Company Ltd. And have requested us to address all the corresponding in future to M/s. Edelweiss Asset Reconstruction Company Ltd.

13. RELATED PARTY DISCLOSURES:

I. List of related parties and relationships:

Enterprises over which Key Managerial personnel and relative of such personnel are able to exercise significant influence

Sr. No. Name of the such Related Parties

1.          Nandkishore O. Gupta

2.          Umadevi M. Gupta

3.          Prakash N. Gupta

4.          Mohan N. Gupta

5.          Sharp Synthetics Pvt. Ltd.

6.          Blue Chip Builders Pvt. Ltd.

8.          Sterlite Synthetics Pvt. Ltd.