SANRHEA TECHNIAL TEXTILES LIMITED is public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay & Ahmedabad stock exchanges in India. The company is engaged in the Manufacturing of Industrial Fabrics like Conveyor Belting fabrics, Chafer fabrics for Tyres , Diaphragm fabrics for Auto industries, Liners etc. The company caters to both domestic and international markets.

2. Terms/rights attached to equity shares

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.

During the year ended 31-3-15, the amount of per Share Dividend recognised as distribution to equity Shareholders was Rs. Nil ( PY. Nil)

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.

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 ownerships of shares.

3. The Company has not issued any bonus shares or shares for consideration other than cash or bought back equity shares during the year or for the period of five years immediately preceding the date of Balance Sheet.

(i) Cash credit from banks are secured against

a Indian rupee Working Capital loan from a nationalised bank carries interest @ 14.25 % p.a. The loan is secured by hypothecation of Stock, Book Debts, Plant & Machineries , a group company guarantee & guranteed by Managing Director of the company b Indian rupee Working Capital loan from Co operative bank carries interest @ 13.00 % p.a. The loan is secured by hypothecation of Twister machines.

(ii) Inter Corporate Borrowing to the tune of 45.00 lacs carries interest @ 13.00 % p.a.

4. NOTE : Fixed Assets -

[1] Vehicles include vehicles amounting to Rs. 1,63,36,4344 (P.Y. Rs. 1,43,09,374 ) which held in the name of Director/ officer of the Company.

[2] Pusuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, except in case of certain assets as disclosed in Accounting policy on Depreciation and Amortisation. Accordingly the unamortised carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted (net of deferred tax 728,805) in the opening balance of General Reserve amounting to 764,416.

Margin money deposits given as security

Margin money deposits with a carrying amount of Rs. 2710000 (31 March 2014: Rs. '27,10,000) are subject to lien to secure non fund based limits from the company's bankers.

5. Additional information to the Financial Statements

6 Contingent Liabilities in respect of:         As at         As at
                                               31-03-2015    31-03-2014
                                                  Rupees       Rupees

Note: A future cash outflow in respect of above depends on ultimate settlement/conclusions with the relevant authorities.

7. The Company has accepted fixed deposit from promoters/shareholders by way of unsecured loans pursuant to requirement of nationalized bank of disbursing secured loans, so long as such loans are outstanding. Such fixed deposit falls under the purview of exempted borrowings under section 73 to 76 of the Companies Act, 2013 and the rules framed there under.

8. No provision for diminution of Rs. 3,89,457/- in value of long term quoted investments has been made individually since in the opinion of the management such diminution is of temporary nature and do not represent a permanent fall in the value of individual investment.

9. (a) The balances of Trade Receivables/ Trade Payables are subject to confirmation. Adjustments, if any will be made in accounts on subsequent confirmation/reconciliation.

(b) Trade Receivables over six months old amounting Rs. 97,15,691/- (P.Y. Rs. 13,41,369/-) are being pursued by the Company. In the opinion of the management they are considered good and fully recoverable.

10. Based on the information available with the Company, there are no suppliers who are registered under Micro, Small & Medium Enterprises Development Act, 2006 as at 31st March , 2015. Hence, the disclosure relating to amounts unpaid as at the year ended together with interest paid/ payable under this act have not been given. This is relied upon by auditors.

11. Segment information as per Accounting Standard 17:

Segment reporting as defined in Accounting Standard 17 is not applicable since the entire operation of the Company relates to only one segment i.e. Industrial fabrics. Similarly, revenue of international segment does not exceed 10 % of the total revenue and hence there is also no reportable geographical segment.

12. Related Party Transaction as per Accounting Standard 18:

A) Name of related party & description of relationship with whom transactions taken place:

a. Key Management Personnel:

1. T.M. Patel

2. Tejal T. Patel

b. Relatives of key Management person:

1. M.A. Patel

2. M.A. Patel HUF

c. Enterprises owned or significantly influenced by key management personnel or their relatives:

1. Mahendra Credit & Investments Co.P.Ltd.

2. Avantika Investments Pvt.Ltd.

3. Tejal Trading Pvt.Ltd.

Note:

a) Loan taken from Key Management person, relatives of key Management persons and enterprises owned or significantly influenced by key management personnel or their relatives are interest free. Interest bearing loan taken from enterprises owned by Key management personnel do not stipulate any repayment schedule.

b) Payment to Key Management personnel in form of Managing Director's remuneration is shown in Note No. 25.6

c) Figures in brackets relate to previous year

13. Disclosure as per Accounting Standard 19: Lease

Lease rent agreement of land and building has expired on 1st November 2007. However the company is hopeful to get renewal and to extend the use of land and building thereon. Hence, depreciation on original Building and additional building constructed on leasehold land is calculated at the rates and in the manner specified in schedule II of the Companies Act, 2013. ( Refer Note-9). Rent paid for such property for the year amounts to Rs. 4,19,587 (P.Y. Rs. 4,19,587)

14. Earnings Per Share as per accounting standard 20

a) The amount used as the numerator in calculating basic and diluted EPS is the Net Profit for the year disclosed in the statement of profit and loss.

b) The weighed average number of the equity shares used, as the denominator in calculating both basic and diluted earning per share is 30,00,000 shares.

15. The figure of previous year has been re-grouped/ re-cast as far as possible to make them comparable with those of the current vear.