There are no employees who are eligible for gratuity as on 31.03.2015. Hence no provision is considered necessary.

2. The Company is not in the possession of details required for the purpose of classification of creditors as per Micro, Small and Medium Enterprises Development Act, 2006. Hence the company is unable to furnish the information required under the said Act.

3. Balances in certain party's accounts are subject to reconciliation and consequent adjustments thereof. In the opinion of the management the impact of such adjustments, if any, on the financial results would be not material.

4. The company operates in one segment, viz., Textiles.

5. Taxation

Deferred Tax Asset on the unabsorbed business/depreciation loss is not recognised since no virtual certainity can be established evidencing that sufficient future taxable income will be available against which deferred tax asset can be realised.

6. Bank Balances

Consequent to listing of the company in stock exchange the company has communicated to the bankers for making necessary change in the name of the company in their records however some of the bankers have not given effect to the change and continuing in the erstwhile name

7. Turnover of the company is net of sales returns and trade discounts. The negative income in the statement of profit and loss is due to sales returns on the cancellation of sales. The goods have been repossesed to the extent of cancelled sales and the stock are valued at cost or realisable value whichever is lower

8. Other Operating revenue represents the export incentives receivable from the government authorities

9. During the 2013-14, the company has made on application with the Board for Industrial and Financial Reconstruction (BIFR) under section 15(1) of Sick Industrial Companies (Special Provisions) Act, 1985 on 30th July 2013. Subsequently the application has been registered in the board vide Case No.61/2013.

10 The net worth of the wholly owned subsidiary M/s. Indus Garments Pvt. Ltd is fully eroded, and there is a permanent decline in the value of investment and accordingly the entire value of investments is provided for.

11. The manufacturing unit at Nanjangud, Nelamangala and Peenya having gross block of fixed assets Rs.185,20,32,868/- is not in operation for the past two years. The units do not have any long term contracts for manufacture and supply of textiles/garments. This indicates that the cash generating capacity of the fixed assets have been impaired. Accordingly, the management is in process of testing, wherein future cash flows are being estimated to determine the provision required, if any, in respect of impairment of fixed assets. Management believes that adjustment to the carrying amount of fixed assets, if any, arising out of testing would not be material.

12. The Company has not prepared the Bank Reconciliation Statements for the following bank accounts due to non-receipt of bank statement/bank confirmation from the banks. The unreconciled balances, if any, would not be material.

i. Andhra Bank , Yeshwanthapur Branch

ii. Canara Bank EEFC $ A/C

iii. Canara Banj ,Mysore-C.A. A/C NO.1046

iv. Canara Bank -Nanjangud-C.A.-1060

v. Corporation Bank - CC A/C 01/050004

vi. Corporation Bank - CB CA /01/22

vii. Corporation Bank- 400012

viii. Corporation Bank EEFC A/C (USD)

ix. Corporation Bank, Mysore- CBCA/01/000011

x. Corporation Bank, Nanjangud-000063

xi. HDFC Bank-0090330002120

xii. ICICI Bank Limited- 028705001608

xiii. Karnataka Bank A/c No: 1182000100020201

xiv. Karnataka Bank A/C NO.1182000100018501

xv. State Bank of India, Meenambakkam Branch- 10775223147

xvi. State Nahavashev A/C NO 10072948718

xvii. State Bank of India -Andheri A/C NO 11147766330

xviii. State Bank of India CC 016000/53002

xix. UCO Bank -Bangalore C.A A/C 1135

13 The Company has accounted the interest on the following following term loans/ Cash credit accounts at the rates as per the terms of sanction for the following loan accounts due to non-receipt of loan statement/confirmation from the banks. The difference between the actual interest and the computed interest, if any, will be not be material.

i. Corporation Bank TL No: 40006

ii. UTI BANK FITL A/C No: 909060033270773

iii. Canara bank 2636773000019

iv. Karnataka Bank TLNo: 1187001600032901

v. Karnataka Bank TL/NO.1187001600030201

vi. Karnataka Bank TL-1187001600025501

vii. Karnataka Bank TLA/c 1187001600033001

viii. UTI Bank Term Loan: 009010600134248

ix. Axis Bank Critical Capex TL NO: 910060032360219

x. Canara bank TL A/c no: 2636773000013

xi. Bills Discounting - Karnataka Bank

xii. Bills Discounting - Axis Bank Ltd

xiii. Corporation Bank - PRTBL

xiv. Corporation Bank CC A/C 40001

xv. Axis Bank -PC LOAN A/C

xvi. Standard Chartered Bank -H06234093655 xvii . Canara FITL 2636747000002

xviii. ABN AMRO

14. Consequent to the changes in depreciation rates as per Schedule II of Companies Act, 2013, the depreciation charged is higher by Rs.692.04 lakhs on the assets held at April 1, 2014.

15 Related party disclosure as per AS 18 - refer annexure

16 Previous year figures have been regrouped / reclassified wherever necessary

Transaction with the key Management Personnel:-

1 Mr. Nitin N Mandhana : Vice Chairman & Managing Director

2 Mr. Shashikant Mandhana : Executive Director Till 31-05-2014

3 Mr. Prakash G. Mandhana : Executive Director Till 31-05-2014

Transaction with relatives of key Management Personnel :-

1 Mrs. Savita Mandhana

2 Mrs. Kavita Mandhana

3 Mrs. Neeta Mandhana

4 Mrs. Nirmala N Mandhana

5 Mrs. Leelavati G Mandhana

6 Mr . Narayandas mandhana

Name of Related Parties & Relationships Wholly Owned Subsidiary Company

1 Indus Garments Private Limited

Associates (Enterprises in which Key Management Personnel or their relatives exercise significant influence)

1 Abhay Weaving Mills Pvt. Ltd.

2 Abhijeet Weaving Mills Pvt. Ltd.

3 Ahaan Weaving Mills Pvt. Ltd.

4 Andrew Finvest Pvt Ltd

5 Avinash Weaving Mills Pvt. Ltd.

6 Indus Infoways Pvt. Ltd

7 Kamal Kishor Finvest Pvt Ltd

8 Kavita Weaving Mills Pvt. Ltd

9 Neeta Weaving Mills Pvt. Ltd 10 Niharika Weaving Mills Pvt. Ltd

II Nirmala Hosieries Mills Pvt. Ltd

12 Parag Investment Pvt. Ltd

13 Propellor Infotech

14 Savita Textiles Pvt. Ltd

15 Siddhant Spinning & Weaving Mills Pvt. Ltd

16 Sneha Textiles Private Limited

17 Vedant Weaving Mills Pvt. Ltd

18 Vir Retail Private Limited

19 Tulsi Weaving Mills