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.