notes forming part of financial statements for the year ... · notes forming part of financial...

4974th Annual Report 2015-2016

NOTES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2016NOTE – 1 : SIGNIFICANT ACCOUNTING POLICIES

1. CORPORATE INFORMATION

Birla Cotsyn (India) Limited (“the Company”) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, 2013 having its registered office at Dalamal House, first floor, Nariman Point, Mumbai 400 021.

The principal business of the Company is Cotton and Synthetic Yarn Manufacturing, Weaving of Grey Fabrics, Ginning & Pressing of Cotton Bales and Fabric Trading.

2. SIGNIFICANT ACCOUNTING POLICIES

(Annexed to and forming part of the financial statements for the year ended 31st March, 2016)

A. BASIS OF ACCOUNTING

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The Financial statements have been prepared under the historical cost convention except where specifically mentioned and in accordance with significant accounting policies as set out below. The policies have been consistently applied to both years presented. Certain Plant and Machinery, Buildings at Ghatanji, Dhule, Khamgaon and land at Ghatanji and Dhule are stated at revalued amounts, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 2013, as adopted and consistently followed by the Company. The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis, except those associated with significant uncertainties.

B. GOING CONCERN ASSUMPTION

The financial statement of the Company has been prepared on going concern basis as in the opinion of the directors, at the time of their approval; there is a reasonable expectation that the Company will continue its operations for the foreseeable future. The Directors have examined the following points in order to ascertain the validity of going concern assumption.

i) The Company has incurred a loss of ` 77,22,35,179/- during the year ended 31st March, 2016 and as of that date the Company’s accumulated losses amount to `4,22,78,19,343/- and it has a negative net worth of ` 98,79,59,294/-. Further as of that date, Company’s current liabilities exceeded its current assets by ` 4,49,27,58,502/-.

ii) The Company has defaulted in repayment of dues to financial institutions and banks for principal amount of ` 2,33,23,04,243/-and interest amounting of ` 1,68,09,28,179/- since May 2012. The Company has received notice issued by consortium of banks under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 for non-payment of principal and interest thereon after the due date by the Company and therefore all loans accounts became Non Performing Assets effective from respective dates mentioned in such notice. We are informed that the company is contesting the action taken under section 13(4) of SARFAESI Act and therefore the matter is sub-judice.

The company is exploring the possibilities of restructuring its liabilities, CDR/individual restructuring with banks and others creditors which will result in significant reduction of the liabilities and revive its ability to continue as a going concern. The management is hopeful of finalising a restructuring package soon.

Conditions explained above indicate existence of material uncertainty that may cast significant doubt of the Company’s ability to continue as going concern due to which the Company may not be able to realise its assets and discharge its liabilities in the normal course of business. However, considering management plans relating to restructuring of debt and expected improvement in operating activities, the financial statement has been prepared on going concern basis.

C. USE OF ESTIMATES

The preparation of the financial statements, in conformity with the generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known / materialised.

D. TANGIBLE FIXED ASSETS

Tangible Fixed Assets are stated at cost of acquisition, which comprises of purchase price, freight, duties, taxes, borrowing cost and other attributable cost of bringing the asset to working condition for its intended use, except certain fixed assets, which are stated at revalued amount, net of impairment loss (If any) less accumulated depreciation / amortization.

50 74th Annual Report 2015-2016

NOTES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2016E. DEPRECIATION

Depreciation on tangible fixed assets has been provided on Straight Line Method (SLM) as per the useful life prescribed in Schedule II to the Companies Act, 2013 except that:

i) In case of Plant and Machinery, Management estimates the useful life to be 15 years and the Company has considered depreciation on fulfilling the condition of continuous process plant.

ii) Leasehold land is amortised over the period of lease.

iii) Assets having individual value below ̀ 5,000 are depreciated @ 100% and mobile phones are charged to revenue considering their useful life to be less than one year.

iv) Depreciation on addition to assets which become an integral part of an existing asset has been provided on the adjusted value prospectively over the remaining useful life of the assets.

F. INTANGIBLE ASSETS AND AMORTISATION

Intangible assets acquired separately are measured on initial recognition cost. Intangible assets are amortised on a straight line basis over the estimated useful economic life. Expenditure on major computer software is amortised over the period of expected benefit not exceeding five years.

G. INVESTMENTS

Long term investments are stated at cost. Provision for diminution is made if the decline in value is other than temporary in nature. Current Investments are carried at lower of cost and fair value

H. INVENTORIES

Inventories are valued as under:

i) Stores & Spare parts and packing materials are valued at lower of weighted average cost (net of Cenvat) and net realizable value.

ii) Raw materials at Synthetic unit is valued at lower of weighted average cost or net realizable Value and at Open End/ Spinning unit is valued at cost on specific identification method on lot wise basis or net realizable Value, whichever is lower.

iii) Work in Process is valued at weighted average cost. However, materials held for use in the production of inventories are not written down below cost, if the finished products in which they are used and expected to be sold at or above cost.

iv) Finished Goods are valued at lower of weighted average cost or net realizable Value. Cost for this purpose includes direct cost and attributable overheads.

v) Waste goods are valued at lower of weighted average cost or net realizable Value.

I. REVENUE RECOGNITION

i) Revenue from sale of products is recognised on transfer of all significant risks and rewards of ownership of the product on to the customers, which is generally on despatch of goods.

ii) Export sales are accounted on the basis of the dates of bill of lading.

iii) Export incentives are recognized in the year of export.

iv) Revenue from Services rendered is recognized as per the terms of agreement /arrangement with the concerned parties.

v) Dividend income on investments is accounted for when the right to receive the payment is established. Interest income is recognised on accrual basis.

vi) Revenue from training income is recognized when the training is completed and assessment certificate is received.

J. EMPLOYEE BENEFITS

i) All employee benefits payable within twelve months of rendering of the service are classified as short term benefits. Such benefits include salaries, wages, bonus, awards, ex-gratia etc, and are recognized in the period in which the employee renders the related services.


NOTES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2016ii) Retirement benefits in the form of Provident Fund/Family Pension Fund and Superannuation Fund, which are Defined Contribution

Plans, are accounted on accrual basis and charged to the statement of profit and loss of the year.

iii) Liabilities in respect of Gratuity, which is Defined Benefit Plans and Leave Encashment, are accrued for the amount, determined on the basis of an Independent actuarial valuation applying the Projected Unit Credit Method.

iv) Actuarial gains/losses are recognized in the statement of profit and loss for the year.

K. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are accounted at the exchange rate prevailing on the date of transaction. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of profit and loss. In case of forward contracts (non speculative), the exchange differences are dealt with in the statement of profit and loss account over the period of contracts. Exchange difference arising on monetary items in substance form part of enterprises net investment in non integral foreign operation is accumulated in a foreign currency translation reserve till the disposal of the net Investment.

L. BORROWING COST

Borrowing cost that is attributable to acquisition of qualifying asset is capitalised as part of total cost of such assets. All other borrowing costs are recognised as expense in the period in which they are incurred.

M. LOAN PROCESSING CHARGES

All the expenses related to Loan Processing and Legal expenses for the same are deferred as in the opinion of the management the benefit from the same is available for the period of five years.

N. GOVERNMENT GRANTS

Grants in the nature of Interest subsidy under Technology Upgradation Fund Scheme (TUFS) and MEGA PROJECT subsidy from Government of Maharashtra under IPS Scheme 2007, are accounted for when it is reasonably certain that ultimate collection will be made. Government grants not specifically related to Fixed Assets are recognized in the statement of Profit and Loss in the year of accrual/ receipt.

Government grant-in-aid received under Integrated Skill Development Scheme is shown as Other Current Liability and is recognised as income to the extent training is completed and assessment certificate is received. Expenses related to training under the scheme is disclosed separately in the statement of Profit and Loss.

O. TAXATION

Current tax is determined at the applicable rates based on assessable income.

Deferred tax is determined using the rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred Tax Assets are recognised and carried forward only if there is reasonable certainty of its realisation. However in case of carried forward losses and unabsorbed depreciation under the Income Tax Act, 1961, the Deferred Tax Asset is recognised only if there is virtual certainty backed by convincing evidence of its realisation. Such assets are reviewed at each Balance Sheet date to reassess its realisation.

P. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognises a provision when there is a present obligation as a result of past event on which it is probable that there will be outflow of resources to settle the obligation in respect of which reliable estimates can be made.

Contingent liabilities are disclosed by way of note to the financial statements after careful evaluation by management of the facts and legal aspects of the matter involved.

Contingent assets are neither recognized nor disclosed.

Q. IMPAIRMENT OF ASSETS

i) The carrying amount of assets, other than inventories is reviewed at each Balance Sheet date to assess whether there is any indication of impairment in respect of such asset or group of assets (cash generating unit). If such indication exists, the recoverable amount of such asset or group of asset is estimated.


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016ii) If such recoverable amount of asset or group of asset is less than its carrying amount, an impairment loss is reckoned by reducing

the carrying amount to its recoverable amount. If there is an indication at balance sheet date that a previously assessed impairment loss no longer exist, the recoverable amount is reassessed and the asset is reflected at recoverable amount, subject to a maximum of depreciable historical cost.

R. APPLICATION OF SECURITIES PREMIUM ACCOUNT

Share Issue expenses are charged, first against available balance in Securities Premium Account

S. EXPENDITURE DURING CONSTRUCTION AND EXPENDITURE ON NEW PROJECTS

In case of new projects and in case of substantial modernisation / expansion at existing units of the Company, expenditure incurred prior to commencement of commercial production is capitalised.

T. ACCOUNTING OF CLAIMS

Claims receivable are accounted for at the time when reasonable certainty of receipt is established. Claims payable are accounted for at the time of acceptance.

Claims raised by Government Authorities regarding taxes and duties, are accounted for based on the merits of each claim. If same is disputed by the Company, these are shown as ‘Contingent Liabilities’.

U. OPERATING LEASE

The leases where the lessor, effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as operating leases. Operating lease payments are recognized as expenses in the Statement of Profit and Loss Account.

V. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

W. SEGMENT REPORTING POLICIES

Primary Segment is identified based on the nature of products and services, the different risks and returns and the internal business reporting system. Secondary segment is identified based on geographical area in which major operating divisions of the Company operates.

X. CASH AND CASH EQUIVALENTS

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash at bank, in hand (including cheques in hand) and short term investment with an original maturity of three months or less.

Cash flows are reported using indirect method as set out in Accounting Standard (AS) – 3 “Cash Flow Statement”, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accrual of past or future cash receipts or payments. The cash flow from operating, investing and financing activities of the Company are segregated based on the available information.


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016NOTE 2 : SHARE CAPITAL

Amount in `

ParticularsAs at As at

31st March, 2016 31st March, 2015

Authorised Shares Capital

550,00,00,000 (Previous Year 550,00,00,000) Equity Shares of Re.1/- each 5,50,00,00,000 5,50,00,00,000

Issued, Subscribed & fully paid -up Capital

266,86,35,154 (Previous Year 266,86,35,154) Equity Shares of Re.1/- each 2,66,86,35,154 2,66,86,35,154

Total Issued, Subscribed & fully paid -up Capital 2,66,86,35,154 2,66,86,35,154

Note 2A : Reconcilation of the shares outstanding at the beginning and at the end of the reporting period

Equity Shares As at 31st March, 2016 As at 31st March, 2015

Number Amt in ` Number Amt in `

Shares outstanding at the beginning of the year 2,66,86,35,154 2,66,86,35,154 2,66,86,35,154 2,66,86,35,154

Shares Issued during the year - - - -

Shares bought back during the year - - - -

Shares outstanding at the end of the year 2,66,86,35,154 2,66,86,35,154 2,66,86,35,154 2,66,86,35,154

Note 2B : Terms/ rights attached to the equity shares

The company has only one class of equity shares having a par value of Re.1/- per shares. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends (if any) in Indian rupees. The dividends (if any) proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 2C : Details of shareholders holding more than 5% shares in the company.

Equity shares of Re. 1 each fully paid

Name of ShareholdersAs at 31st March, 2016 As at 31st March, 2015

No. of Shares held % of Holding No. of Shares held % of Holding

Polytex Limited 23,81,01,240 8.92% 23,81,01,240 8.92%

Shearson Invetment & Trading Co.Pvt.Ltd. 14,33,42,342 5.37% 14,33,42,342 5.37%

Bank of New York Mellon (GDR) (Refer Note 2E) - - 59,79,44,642 22.41%

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 ownership of shares.

Note 2D : Details of shares issued other than cash for the period of Five Years immediately preceeding the Balance Sheet date.

426,981,554 Equity Shares of ` 1/- each have been allotted on 4th October, 2010 as fully paid Bonus Shares by Capitalisation of Reserves & Securities Premium Account.

Note 2E : Outstanding GDR are fully converted into equity shares as on 31st March, 2016.


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016

NOTE 3 : RESERVES AND SURPLUS Amount in `

Particulars As at

31st March, 2016 As at

31st March, 2015a. Capital Reserves 2,25,884 2,25,884 b. Securities Premium

Opening Balance 5,00,58,428 5,00,58,428 Less : During the Year - - Add : During the Year - - Closing Balance 5,00,58,428 5,00,58,428

c. Revaluation ReserveOpening Balalnce 8,76,06,326 8,76,06,326 Less : During the Year - - Add : During the Year - - Closing Balance 8,76,06,326 8,76,06,326

d. Foreign Currency Translation ReserveOpening Balalnce 40,22,87,738 34,85,09,842 Add : During the Year (Refer Note 3A) 3,10,46,519 5,37,77,896 Less : During the Year - Closing Balance 43,33,34,256 40,22,87,738

e. Surplus/(deficit) in the statement of Profit & Loss Opening balance (3,45,55,84,163) (1,81,05,35,953)(+) Net Profit/(Net Loss) for the current period (77,22,35,179) (1,64,41,10,596)(-) Adjustment Relating to fixed assets (Refer Note 10C) - (9,37,614)

Closing Balance (4,22,78,19,342) (3,45,55,84,163)

Total Reserves & Surplus (3,65,65,94,448) (2,91,54,05,787)

Note 3A: - Foreign Currency Translation Reserve represent reserves created on account of restatement of foreign currency loan given to Company’s 100% subsidiary Birla Cotsyn (India) Limited FZE, at year end.

NOTE 4 : LONG TERM BORROWINGS (Amount in `)

Particulars As at


31st March, 2015 Secured(a) Term loans

Indian rupees loan from banks - - (Refer Note 4A & 4B)

- - Unsecured(a) Fixed Deposit from Public - 90,000

- 90,000 Total Long Term Borrowings - 90,000



Note 4A - Note on Term Loans from Banks Amount in `Bank Name Amount Outstanding Interest

payablePayment Terms including

rate of interestSecuritydetails

Date of Default and Amount of

defaultNonCurrent

Current

Union Bank of India - 11,82,68,117 9,65,91,691 32 quaterly instalment of ` 62.50 Lakhs each. ROI

16.75%

All the Term Loans have First Pari Passu

charge on all fixed assets

(present& future) pertainingto all the

assets of the Company and second Pari Passu charge on the stocks

and Book debts of the Company

September 2012 ` 250.00 Lakh

Axis Bank - 7,71,96,166 5,67,36,773 28 quaterly instalment of ` 53.57 Lakhs each. ROI

16.75%

September 2012 ` 214.30 Lakhs

Bank of India - 15,58,33,034 12,15,72,120 30 quaterly instalment of ` 83.33 Lakhs each. ROI

16.75%

September 2012 ` 333.33 Lakhs

Indian Overseas Bank - 19,82,86,839 15,48,18,249 30 quaterly instalment of ` 83.33 Lakhs each. ROI

16.75%

June 2012 `416.67Lakhs

Oriental Bank of Commerce

- 9,37,62,741 4,55,13,186 30 quaterly instalment of `50.00 Lakhs each. ROI

16.75%

September 2012 `200.00 Lakhs

Canara Bank - 9,37,43,589 8,32,26,604 24 quaterly instalment of `62.50 Lakhs each. ROI

16.75%

June 2012 `315.75Lakhs

State Bank of India - 8,81,55,636 6,73,56,813 8 monthly instalment of `15.60 Lakhs each. 1 monthly instalment of

`16.20 Lakhs, 36 monthly instalment of `13.00 Lakhs, 44 monthly instalments of `16.65 Lakhs, 4 monthly

instalment of `16.85 Lakhs, 2 monthly instalments of

`30.30 Lakhs and 1 monthly instalment of `30.40 Lakhs.

ROI 16.75%

February 2013 `63.60 Lakhs

Catholic Syrian Bank - 5,26,69,843 4,47,42,603 20 quaterly instalment of `50.00 Lakhs each. ROI

16.75%


Jankalyan Shakari Bank - 1,76,48,827 1,67,76,999 77 monthly instalment of `3.21 Lakhs each. 1

monthly instalment of 2.83 Lakhs.ROI 18.25%

May 2012 `42.98Lakhs

Bank of India (Housing Complex)

- 5,25,26,348 4,09,09,628 89 monthly instalment of `8.00 Lakhs each. 1

monthly instalment of 3.00 Lakhs.ROI 16.75%


- 94,80,91,140 72,82,44,666


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016Note 4B : The Company has defaulted on payment of Term Loans and all the loans have classified as Non Performing Assets (NPA) by the Banks. Consequently all the Term Loans are now payable on demand and have accordingly been classified as Other Liabilities in Note No. 8 as “Current Maturities of Long Term Debt”.

Note: 4C Amount in `

Period of Maturity Amount

OutstandingInterestpayable

Payment Terms including rate of interest

Date of Default and Amount of default

Fixed Deposit (More than one year) - 2,18,46,367 On Maturity 11.50% to 12.50%

31st March, 2016

Fixed Deposit (Less than one year) 4,36,88,500 4,35,98,500

NOTE 5 : OTHER LONG TERM LIABILITIES Amount in `

Particulars As at


31st March, 2015 (a) Deposit from Customers 26,40,000 26,40,000

Total 26,40,000 26,40,000

NOTE 6 : LONG TERM PROVISIONS Amount in `

Particulars As at


31st March, 2015 Provision for employee benefits(a) Leave Encashment (Unfunded) 21,07,198 19,52,504 (b) Gratuity 1,96,92,304 2,25,36,083

Total 2,17,99,502 2,44,88,587

NOTE 7 : SHORT TERM BORROWINGS Amount in `

Particulars As at


31st March, 2015 A. Secured

(a) Loans repayable on demand

Indian Rupees Cash Credit from banks (Refer Note 7A) 1,38,42,13,103 1,37,62,13,103

B. Unsecured

(a) Inter Corporate Deposits (Refer Note 7B) 17,45,60,506 17,92,43,209

(b) Due to Related Parties 4,65,49,878 9,15,49,878

(c) Deposits 4,45,577 4,45,578

Total Short Term Borrowings 1,60,57,69,064 1,64,74,51,768

NOTE 7A : Details of Indian Rupees Cash Credit from BanksSr. No.

Bank Name AmountOutstanding

(`)

Interest Payable (`)

Rate of Interest

Security details Date of Default

(a) Union Bank Of India 10,85,37,146 7,96,53,135 16.75% All the Cash Credits Loans have First pari passu charge on all the stocks and Book debts of the Company and Second pari passu charges on all the fixed assets (present and future) pertaining to all the assets of the Company

December 2012

(b) Axis Bank 5,26,45,348 3,78,36,715 16.75% December 2012

(c) Bank of India 48,96,98,114 36,31,97,439 16.75% September 2012

(d) Indian Overseas Bank 14,95,70,029 11,43,33,540 16.75% October 2012

(e) Canara Bank 14,07,23,993 5,75,81,491 17.25% September 2012

(f) Karur Vysya Bank 29,30,38,472 17,36,71,237 16.75% June 2012

(g) Catholic Sryian Bank 15,00,00,000 12,64,09,956 16.75% December 2012

TOTAL 1,38,42,13,103 95,26,83,513


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016NOTE 7B : Inter Corporate DepositsIn respect of balance confirmation sought by the Company from various parties reflected under Inter corporate deposits and certain dues to related parties as on 31 March, 2016, no one has responded to the request of the Company and such balances are taken as appearing in books and the same are subject to confirmation and reconciliation. Consequential impact, if any, will be considered as and when determined. Further, few such parties have already filed winding up petition under section 271 and 272 of the Companies Act, 2013 (“the Act”) against the Company for non-payment of dues (Section 433 & 434 of the Companies Act, 1956). These matters are sub-judice and the impact, if any, of the outcome is unascertainable of this stage.

NOTE 8 : OTHER CURRENT LIABILITIES Amount in `

Particulars As at


31st March, 2015 A. Trade Payables

(a) Trade Payable (Refer note 28 for details of dues to micro and small enterprises) 16,30,13,757 14,98,67,421 TOTAL A 16,30,13,757 14,98,67,421

B. Others(a) Current maturities of long-term debt (Refer Note 4A) 94,80,91,140 94,80,91,140 (b) Current maturities of Fixed Deposits (Refer Note 4C) 4,36,88,500 7,07,66,978 (c) Interest accrued and due on FDR 2,18,46,367 1,94,26,451 (d) Interest accrued and due on borrowings 1,71,17,82,217 1,09,43,94,214 (e) Payables against advance from customers 1,14,70,904 94,63,473 (f) Statutory Liabilities 44,93,150 41,57,252

(g) Payables against employees deductions 2,64,963 2,61,408 (h) Advance from supplier/contractors 28,56,494 7,85,214 (i) Interest Payable on Dividend Distribution Tax 81,37,501 73,04,441 (j) Advance Received towards Sale of Fixed Assets 8,70,00,000 8,70,00,000 (k) Unpaid Dividends 15,38,216 15,38,216 (l) Other Payables 6,26,52,361 5,69,86,464 (m) Application Money Received and Due for Refund (Refer Note 8B.1) - 1,62,820 (n) Govt . Grants Received (Refer Note 8B.2) 2,75,64,500 - (o) Payable To Employee 2,02,00,532 2,08,50,634

TOTAL B 2,95,15,86,845 2,32,11,88,705 Total A+B 3,11,46,00,602 2,47,10,56,125

Note 8B.1 : During the year the amount of Share Application Money Received and Due for Refund was transferred to Investor Education and Protection Fund.

Note 8B.2 : Government grant represents amount received by the Company under Implementation of Integrated Skill Development Scheme. Under the scheme the Company will be training 10,000 persons and the Government will be giving a grant of `9,284/- per person trained. During the year the Government has sanctioned an amount of `2,78,52,300/- as first installment of grant-in-aid for recurring expenditure incurred by the Company in implementation of the Scheme. During the year, the Company has trained 31 person and received the assessment certificates for the same. Accordingly, an amount of `2,87,800/-has been recognised as income during the year. The balance amount is shown as Current Liability and will be recognised as income as and when the training is completed and assessment certificate is received.

NOTE 9 : SHORT TERM PROVISIONS Amount in `

Particulars As at


31st March, 2015 Provision for employee benefits(a) Gratuity 1,15,67,092 78,00,172 (b) Leave Encashment (Unfunded) 18,67,936 17,79,668 (c) Provision for Dividend Distribution Tax 1,20,28,236 1,20,28,236

Total 2,54,63,264 2,16,08,076


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NOTE 11 : INVESTMENTS Amount in `

Particulars As at


31st March, 2015 A Trade Investments

Investment in Equity Shares of SubsidariesUnquoted1 Fully Paid up Shares (Previous Year 1 Shares) of Birla Cotsyn (India) Ltd. FZE @ AED 35000

4,31,473 4,31,473

Total A 4,31,473 4,31,473 B Non Trade Investments

Investment in Equity Shares of Other EntitiesUnquoted2000 Fully Paid up Shares (Previous Year 2000 Shares) of Shamrao Vithal Co-op.Bank Ltd.@ 25/- Per Share

50,000 50,000

62500 Fully Paid up Shares (Previous Year 62500 Shares) of Jankalyan Sahakari Bank Ltd. @ 10/- Per Share

6,25,000 6,25,000

Total B 6,75,000 6,75,000

Grand Total A + B 11,06,473 11,06,473

NOTE 12 : LONG TERM LOANS AND ADVANCES Amount in `

Particulars As at


31st March, 2015 a. Capital Advances (Refer Note 12A)

Unsecured, considered Good 22,70,541 23,41,193

Unsecured, considered doubtful 94,32,23,851 94,32,23,851 Less: Provision for Unrecoverable Advances 94,32,23,851 94,32,23,851

Total A 22,70,541 23,41,193 b. Security Deposits

Unsecured, considered good 2,46,02,086 1,47,51,413 Total B 2,46,02,086 1,47,51,413

c. Loans and advances (Unsecured, considered good)i. Due from Subsidaries (Refer Note 12B) 1,51,85,83,070 1,48,75,36,552 ii. Loans & Advances to Related Parties (Refer Note 12C) 36,62,58,830 41,12,58,830

Total C 1,88,48,41,901 1,89,87,95,383

Grand Total A + B + C 1,91,17,14,528 1,91,58,87,989

Note 12A : The Company has made provision of unrecoverable capital advances amounting to ` 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 12B : Dues from Subsidiary 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 of T ` 3,10,46,519/- is on account of Foreign Exchange Fluctuation resulting from restatement of loan account at period end exchange rate. The same has been considered as good for recovery in view of the management.

Note 12C : Includes loan of ` 36,21,08,831/- (Previous Year ` 40,71,08,831/-) given to four related parties which has negative net-worth as on 31st March, 2015. The loans have been considered as good for recovery in view of the management.



NOTE 13 : OTHER NON-CURRENT ASSETS Amount in `

Particulars As at


31st March, 2015 Long term receivablesa) Mega Subsidy Receivable 1,50,90,469 1,49,27,457 b) Due With government authorities (Refer Note 13 a) 68,28,005 68,99,729 c) CENVAT Credit receivable 92,01,452 79,98,129 d) VAT Credit receivable 2,54,84,045 7,28,61,098

Total 5,66,03,971 10,26,86,413

Note: 13 A : During the year Block Assessment under sec. 153A of the Income Tax Act, 1961 has been completed in which Commissioner of Income Tax (CIT) passed orders under sec 153A read with section 143(3) of the Income Tax Act, 1961, raising demand of ` 19,26,06,546/- for FY 2007-08 to FY 2013-14. The Company has preferred an appeal against said orders. The advance tax for theses year is net of provisions made.

NOTE 14 : INVENTORIES(As taken, valued and certified by the Management) Amount in `

Particulars As at


31st March, 2015 a. Raw Materials and components 5,26,96,418 4,81,15,974 b. Work-in-progress 1,17,19,881 1,10,71,175 c. Finished goods 2,40,88,321 1,22,91,451 d. Stores and spares 31,76,122 32,61,439 e. Packing Materials 9,91,975 14,08,282 f. Waste/scrap 78,36,194 98,58,389

Total 10,05,08,911 8,60,06,710

NOTE 15 : TRADE RECEIVABLES Amount in `

Particulars As at


31st March, 2015 A. Outstanding for a period exceeding six months from the date they are due for

paymentUnsecured, considered doubtful 84,84,62,924 84,84,62,924 Less: Provision for doubtful debts 84,84,62,924 84,84,62,924

Total A - - B. Outstanding for a period less than six months from the date they are due for

paymentUnsecured, considered good 27,40,849 18,45,788 Less: Provision for doubtful debts - -

Total B 27,40,849 18,45,788 Total A+B 27,40,849 18,45,788



NOTE 16 : CASH AND BANK BALANCES Amount in `

Particulars As at


31st March, 2015 (A) Cash & Cash Equivalents

a. Balances with banks In Current accounts 1,42,28,962 2,34,44,495 In Escrow account (Refer Note 16 a) 1,34,30,472 - In Specified Training Bank account (Refer Note 16 a) 1,22,91,859

b. Cash on hand 2,29,764 2,29,739 c. Fixed Deposit with Bank 1,37,12,942 1,02,874

(Original Maturity Less than 3 Months)Total A 5,38,93,998 2,37,77,107

(B) Other Bank Balance For Unpaid Dividend Accounts 15,44,667 15,44,666 Share Application Money - 1,62,820

Total B 15,44,667 17,07,486 (C) Balances with Bank held as Margin Money

a) Bank Of India (Margin Money) 1,10,34,472 1,10,34,472 b) State Bank of India (Margin Money) 10,671 10,671

Total C 1,10,45,142 1,10,45,142

Total A + B+C 6,64,83,808 3,65,29,736

Note 16 a : Cash & Cash Equivalents includes government grant disbursed in escrow account of ` 1,34,30,472 and specified training Bank Account of ` 1,22,91,859/- for the purpose of implementing Integrated skill development project of Central Government (Refer Note N)

NOTE 17 : SHORT TERM LOANS & ADVANCES Amount in `

Particulars As at


31st March, 2015 a. Others : Advance recoverable

Unsecured, considered good 15,88,935 9,91,279 Less: Provision for staff adv. - -

Total A 15,88,935 9,91,279 b. Other Loan & Advances (Unsecured)

Balance with statutory/ government authorities 28,32,695 53,50,644 Total B 28,32,695 53,50,644

Total A + B 44,21,630 63,41,923

NOTE 18 : OTHER CURRENT ASSETS Amount in `

Particulars As at


31st March, 2015 Short term receivable (unsecured, considered good)a) Interest Receivable From Related Parties (unsecured, considered good) 6,98,58,512 6,98,58,512 b) Interest Receivable From Others (Consider Doubtful) 59,09,355 59,09,355

Less: Provision For Doubtful Debt 59,09,355 - 6,98,58,512 7,57,67,867

c) Prepaid expenses 90,60,717 36,77,803 Total 7,89,19,229 7,94,45,671


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016Note: 18 A : Dues from Related Parties represents interest receivable on loans given to related parties. Amount includes `

6,94,43,512/-(Previous Year `6,94,43,512/-) due from three related parties which have negative net worth as on 31st March, 2016. The interest receivable has been considered as good for recovery in view of the Management.

NOTE 19 : REVENUE FROM OPERATIONS Amount in `

Particulars For the Year Ended 31st March, 2016

For the Year Ended 31st March, 2015

Revenue from operationsSale of productsFinished Goods 94,62,01,786 1,06,96,72,951 Traded Goods - 54,28,850 Other operating revenuesScrap & Waste Sales 3,90,25,060 3,71,23,048 Others - 2,55,038 Subsidy Received (Mega Project) 1,23,22,012 1,20,22,791

Revenue from operations (gross) 99,75,48,858 1,12,45,02,678

NOTE 20 : OTHER INCOME Amount in `

Particulars For the Year Ended 31st March , 2016

For the Year Ended 31st March , 2015

Interest Income on Bank Deposits 8,30,325 4,54,586 Others - 1,90,23,959 Other Income (Liabilities W/Back) 76,17,797 2,13,78,854 Other non-operating income (net of expenses directly attributable to such income) 6,60,108 90,34,624 Training Income (refer note 8B.2) 2,87,800 - Profit on sale of Fixed Assets 7,700 -

Total 94,03,730 4,98,92,023

NOTE 21 : COST OF RAW MATERIAL & COMPONENTS CONSUMED

Amount in `



Inventory at the beginning of the year 4,81,15,974 3,89,40,552 Add : Purchases 68,62,63,377 79,45,76,762 Add : Inter Unit transfer

Total 73,43,79,351 83,35,17,314 Less : inventory at the end of the year 5,26,96,418 4,81,15,974 Cost of raw material and components consumed 68,16,82,933 78,54,01,340 Details of InventoriesOpening StockCotton 4,67,59,218 3,75,83,796 Synthetics Fibre 4,56,700 4,56,700 Colour, Chemicals & Mixing 9,00,056 9,00,056 Raw Cotton -

4,81,15,974 3,89,40,552



Amount in `



PurchaseCotton 68,62,63,377 79,45,76,762 Synthetics Fibre - - Colour, Chemicals & Mixing - - Raw Cotton - -

68,62,63,377 79,45,76,762 Closing StockCotton 5,13,39,662 4,67,59,218 Synthetics Fibre 4,56,700 4,56,700 Colour, Chemicals & Mixing 9,00,056 9,00,056 Raw Cotton

5,26,96,418 4,81,15,974 Raw Material ConsumptionCotton 68,16,82,933 78,54,01,340 Synthetics Fibre - - Colour, Chemicals & Mixing - - Raw Cotton - - Raw Material Consumption 68,16,82,933 78,54,01,340

NOTE 22 : (INCREASE)/DECREASE IN INVENTORIES Amount in `



A. Opening Stocks :Semi Finished Goods 1,10,71,175 1,86,71,784Finished Goods 1,22,91,451 4,31,01,545 Waste/Scrap 98,58,389 83,76,772

Total A 3,32,21,015 7,01,50,101 B. Closing Stocks :Semi Finished Goods 1,17,19,881 1,10,71,175 Finished Goods 2,40,88,321 1,22,91,451 Waste/Scrap 78,36,194 98,58,389

Total B 4,36,44,396 3,32,21,015 Total A - B (1,04,23,381) 3,69,29,086

NOTE 23 : EMPLOYEES BENEFIT EXPENSES Amount in `



Salaries, Wages and bonus 6,94,96,172 7,14,34,998 Contribution to Provident & Other Funds 40,66,902 39,55,708 Gratuity Expenses (Note 33) 16,66,556 79,31,314 Remuneration to Directors 7,70,196 14,36,422 Staff Welfare Expenses 14,43,066 12,93,410

Total 7,74,42,892 8,60,51,852

NOTE 24 : FINANCE COST Amount in `



Interest 62,55,87,287 53,45,40,693

Bank Charges 51,733 83,118

Total 62,56,39,020 53,46,23,811



NOTE 25 : OTHER EXPENSES Amount in `



Consumption of Stores & Spares 95,44,134 1,11,60,837 Consumption of Packing Material 1,57,76,402 1,70,73,464 Conversion Charges Paid 45,61,248 50,26,624 (increase)/decrease of excise duty on inventoryPower & Fuel 13,10,46,947 13,34,51,854 Water Charges 26,24,385 44,26,233 Freight & forwarding charges 48,03,126 40,86,286 Service Tax 33,03,747 28,05,218 Rent 6,77,880 11,33,121 Rates & Taxes 2,82,818 1,54,508 Custom Duty / Excise Duty 1,00,325 35,232 Security Services Charges 35,91,911 36,25,875 Insurance 20,07,312 26,96,828 Repair & Maintenance Plant & Machinery 16,72,548 2067256 Building 1,63,303 59708 Others - 18,35,851 66,301 21,93,265 Advertisement and Sales & Promotion Expenses 4,55,515 6,48,477 Sales Commission 13,43,095 5,73,148 Travelling & Conveyance Expenses 17,94,547 17,90,131 Vehicle Repair & Maintenance Expenses 14,57,657 8,54,583 Communication Expenses 5,36,464 3,99,026 Printing & Stationery 14,78,517 10,36,541 Legal & Professional Charges 2,52,85,520 1,59,17,853 Directors Sitting Fees 2,03,000 98,000 Payments to Auditors (Refer Note No 32) 17,73,027 19,60,807 Amount receivable written off 3,04,67,543 1,80,02,055 Provision for Doubtful Debts 59,09,355 - Training Expenses (Under ISDS) (Refer Note 1.2N) 25,72,222 - Research and development Expenses 33,731 28,147 Miscellaneous Expenditure 1,36,66,956 1,57,96,395

Total 26,71,33,235 24,49,74,508

NOTE 26

CONTINGENT LIABILITIES NOT PROVIDED FOR AND NOT ACKNOWLEDGED AS DEBT: Amount in `

ParticularsAs at

31st March, 2016As at

31st March, 2015a) Labour matter pending with the court (Refer Note 26.1) 2,09,92,303 83,87,859b) Claims against cases filed by Unsecured Lenders 19,94,81,193 20,18,51,186c) Exports Promotion Capital Goods Scheme (Refer Note 26.2) 3,96,78,870 4,54,06,406d) Income Tax Liability (FY 2007-08 to 2013-14) (Refer Note 26.3) 19,26,06,546 -

Note 26.1 : Ultimate outflow for the matters referred to above depends on the settlement of these cases / Court verdict.



Note 26.2 : 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 export obligation aggregating to `1,32,26,65,296/-, to be fulfilled within eight years from the date of issuance of respective licenses, failing which the duty saved aggregating ̀ 16,53,33,162/-, together with interest and penalties, if levied, may have to be paid. As at the year end the Company has fulfilled export obligation aggregating `1,00,52,31,456/-.

The eight years period for meeting the export obligation expired on 11th February, 2016 and the Company has an unfulfilled export obligation of `31,74,30,960/- representing duty benefits of `3,96,78,870/-. The amount of duty benefit on unfulfilled obligation along with interest as per the Customs authority is now payable by the Company. The Company has made an application to EPCG Committee, New Delhi for extension of export obligation period by 2 years.

Note 26.3 : During the year block assessment under section 153A of the Income Tax Act, 1961 has been completed in which Commissioner of Income Tax has passed orders under sec 153A of the Act read with section 143(3) of the Income Tax Act, 1961, raising a tax demand of `19,26,06,546/- on the Company for FY 2007-08 to FY 2013-14. The Company has preferred an appeal against the said orders of the Commissioner.

NOTE 27

ESTIMATED AMOUNT OF CONTRACTS REMAINING TO BE EXECUTED AND NOT PROVIDED FOR (NET OF ADVANCES)

Amount in `

ParticularsAs at


31st March, 2015Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)

- -

NOTE 28 : In the absence of necessary information relating to the suppliers registered as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has not been able to identify such suppliers and disclose the information required under the said Act relating to them.

NOTE 29: DEPRECIATION / AMORTIZATION Amount in `

ParticularsFor the year ended31st March, 2016

For the year ended31st March, 2015

Depreciation/ Amortization charged on Fixed Assets 13,75,84,431 13,72,64,853Depreciation/ Amortization charged on Revalued Assets - -

Total 13,75,84,431 13,72,64,853

NOTE 30

The major components of Deferred Tax Asset/ (Liability) are set as below:- Amount in `

ParticularsAs at


31st March, 2015

Difference between Book and Tax Depreciation (18,63,94,666) (21,02,09,769)

U/S 43 B of Income Tax Act, 1961 1,48,37,463 26,03,081

Carry Forward Losses / Unabsorbed Depreciation 25,33,73,323 27,57,20,494

Other Liability - -

Deferred Tax (Liability)/Asset 8,18,16,120 6,81,13,806

In view of the losses incurred by the Company and lack of visibility on future profitability, deferred tax assets have not been recognized in the books of accounts.


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016NOTE 31: EARNINGS PER SHARE

Amount in `

ParticularsAs at


31st March, 2015

Net Profit / (Loss) as per Profit and Loss Account (In Rs) (77,22,35,179) (1,64,41,10,595)

Weighted Average Number of Equity Shares (In Nos) 2,66,86,35,154 2,66,86,35,154

Basic and Diluted Loss Per share (In Rs) (0.29) (0.62)

Net Profit / (Loss) before Exceptional Items as per Profit and Loss Account (In Rs) (77,22,35,179) (65,46,86,014)

Weighted Average Number of Equity Shares (In Nos) 2,66,86,35,154 2,66,86,35,154

Basic and Diluted Loss Per share before Exceptional Items (In Rs) (0.29) (0.25)

NOTE 32: REMUNERATION TO AUDITORS Amount in `



Audit fees 7,50,000 7,50,000

Limited Review fees 2,25,000 2,25,000

Other Services 5,80,701 7,80,418

Service tax on fee 2,17,326 2,05,389

Total 17,73,027 19,60,807

NOTE 33

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, 2016 the Company has recognised the contribution to Employees Provident Fund and Pension Fund aggregating `40,66,902/- (Previous year ` 39,55,708/-) 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, 2016 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:

Amount in `

SN ParticularsAs at


31st March, 20151. Changes in the Present Value of the Defined Benefits Obligation

a. Present value of Defined Benefit Obligation at the beginning of the year 3,03,36,255 2,51,72,681b. Interest Cost 21,60,188 19,99,994c. Current Service Cost 16,62,773 15,47,663d. Benefits paid during the year (7,47,198) (25,19,607)e. Actuarial (Gain) / Loss (21,56,405) 41,35,524f. Present Value of Defined Benefit Obligation at the End of the Year 3,12,59,396 3,03,36,255



Amount in `

SN ParticularsAs at


31st March, 20152. Amounts recognized in the Profit & Loss account

a. Current Service Cost 16,62,773 15,47,663b. Interest Cost 21,60,188 19,99,994c. Expected return on plan assets - -d. Net Actuarial (Gain) / Loss (21,56,405) 41,35,524e. Expenses Recognized in the Statement of Profit & Loss A/c 16,66,556 76,83,181

3. Change in the fair value of Plan Assetsa. Fair value of plan assets at beginning of the year - -b. Expected return on plan assets - -c. Contributions - -d. Benefits paid - -e. Fair value of plan assets at the end of the year - -

Present Value of Defined Benefit Obligation at the End of the Year 3,12,59,396 3,03,36,255Less: Fair value of plan assets for the funded gratuity at the end of the year - -Liability with respect to unfunded Plan recognised in the Balance Sheet 3,12,59,396 3,03,36,255

4. Actuarial Assumptiona. Discount rate (In %’s) 7.60 7.80b. The estimate of future salary increases considered in actuarial valuation take

account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. (In %’s)

5.00% 5.00%

5. Percentage of each category of Plan Assets to total Fair value of Plan Assets as at the year end

N.A N.A

ii) Leave EncashmentProvision towards liability for Leave Encashment made on the basis of actuarial valuation as per Accounting Standard 15 (Revised). Actuarial value of liability is `39, 75,134/- (Previous year ` 37,32,172/-) is based upon following assumptions.Discount rate: 7.80 %-7.60% (Previous year 9.2 %-7.8%)Salary escalation: 5.00% - 5.00% (Previous year 5.00% - 5.00%)

NOTE 34: RELATED PARTY DISCLOSURE As required by the Accounting Standards 18, the disclosures of transactions with the related parties are given below: a) Enterprises owned or controlled significantly by key Management personnel or their relatives

Sr. No. Name of Company Relation1 Birla Cotsyn (India) Limited FZE,Dubai 100% Subsidiary2 Birla Pacific Medspa Ltd

Enterprise that have a member of

Key Management in common with Birla Cotsyn (India) Ltd.

3 Birla Shloka Edutech Ltd4 Birla Transasia Carpets Ltd5 Zenith Birla (India) Ltd6 Melstar Information Technologies Ltd.7 Birla Global Corporate Ltd.8 Birla Integrated Textile Park Ltd9 Birla Surya Ltd (In Liquidation)10 Birla Viking Travels Ltd11 Godavari Corporation P Ltd.12 Shearson Investment & Trading Co Pvt Ltd.13 Nirved Traders Pvt. Ltd.14 Birla International Pvt. Ltd.15 S K Mathur (Manager)

Key Management Personnel

16 R K Dixit (Director)17 Vipin Varkhawat (CFO)18 Vineeta Shah (Company Secretary )

#As on the date of the Balance Sheet, these Companies are not related parties as there is no member of the Key Management in common with Birla Cotsyn (India) Ltd. However when the original transitions, as mentioned in the table below, took place they were related parties as defined in AS 18 and have therefore been disclosed as Related Party Transactions.



b) Balance as at 31st March, 2016 Amount in `

SN ParticularsBalance As At

31st March, 2016Balance As At

31st March, 2015Receivable Payable Receivable Payable

1 Key Management Personnel

S K Mathur (Manager) - - - -

R K Dixit (Director) - - - -

Vipin Varkhawat (CFO) - - - -

Vineeta Shah (Company Secretary ) - - - -

2 Enterprises owned or controlled significantly by key Management personnel or their relatives

A Loan & Advances

a) Zenith Birla (India) Ltd. - 1,99,52,609 - 6,49,52,609

b) Birla Global Corporate. Ltd. 3,18,19,231 - 3,18,19,231 -

c) Godavari Corporation Pvt Ltd. 21,82,27,495 - 21,82,27,495 -

d) Shearson Investment & Trading Pvt Ltd. 7,29,98,404 - 7,29,98,404 -

e) Birla Pacific Medspa Ltd. - 81,61,973 - 81,61,973

f) Birla Shloka Edutech Ltd. 41,50,000 - 41,50,000 -

g) Birla Surya Ltd. (In Liquidation) - 5,00,000 - 5,00,000

h) Melstar Information Technology Ltd. - 1,79,35,296 - 1,79,35,296

i) Birla Integrated Textile Park Ltd 3,90,63,700 8,40,63,700

Total 36,62,58,830 4,65,99,878 41,12,58,830 9,15,49,878

B Interest Receivable From Related Parties

a) Birla Integrated Textile Park Ltd 1,24,48,022 1,24,48,022

b) Godavari Corporation Pvt Ltd 4,42,35,767 4,42,35,767

c) Shearson Investment & Trading Pvt Ltd. 1,27,59,723 1,27,59,723

d) Birla Shloka Edutech Ltd 4,15,000 4,15,000

Total 6,98,58,512 6,98,58,512

C Creditors For Expenses

a) Birla Viking Travels Ltd. - 41,451 - 41,451

b) Nirved Traders Pvt. Ltd. - 1,06,02,928 - 1,06,02,928

Total 1,06,44,379 1,06,44,379

D Advance for Expenses

a) Birla International Pvt Ltd 52,69,690 -

b) Birla Transasia Carpets Ltd. 7,57,741 - 6,47,781 -

a) Zenith Birla (India) Ltd. 50,000 -

Total 60,27,431 50,000 6,47,781

3 Where Control exists

a) Birla Cotsyn (India) Ltd. FZE

Investments 4,31,473 - 4,31,473 -

Loan 1,51,85,83,070 - 1,48,75,36,552 -


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016c) Transaction during the year Amount in `

SNParticulars

Key Management PersonnelEnterprises owned or significantly

influenced by key management personnel or their relatives





1 Key Management Personnel

a) S K Mathur (Manager) 8,44,056 8,44,056

b) R K Dixit (Director) 7,70,190 7,70,190

c) Vipin Varkhawat (CFO) 5,58,870 3,21,079

d) Vineeta Shah (Company Secretary ) 2,20,500 -

2 Loans Received

a) Zenith Birla (India) Ltd. - - - 28,94,163

b) Birla Pacific Medspa Ltd. - - - 7,21,973

c) Birla Integrated Textile Park Ltd.(Repayment)

- - 4,50,00,000 -

3 Loans Granted

a) Birla Cotsyn (India) Ltd. FZE (USL Int. Free) (Refer Note ii below)

- - 3,10,46,519 5,37,77,896

b) Birla Global Corporate Ltd. - - - -

c) Birla Shloka Edutech Ltd. - -

4 Loan Repaid

a) Nirved Trading Pvt. Ltd - - - 5,00,000

b) Zenith Birla (India) Ltd. 4,50,00,000

c) Birla Shloka Edutech Ltd. - - - -

d) Birla Surya Limited - - - 50,35,403

5 Advance for Expenses

Birla International Pvt Ltd (net) 52,69,690

6 Purchase/Material Counsumed

a) Birla Transasia Carpets Ltd 1,09,960 6,47,781

7 General Expenses/Reimbursement

Birla International Pvt Ltd 48,00,000

Zenith Birla (India) Ltd. - - 50,000

8 Sitting Fees

R. K Dixit (Director) 59,000 40,500 - -

i. There is no repayment schedule for the above loans.

ii. Birla Cotsyn (India) Ltd FZE is an wholly own subsidiary of Birla Cotsyn India Limited and the loans advanced to the Company for furtherance of its business, further the loan is interest free. No further loan has been advanced during the current period. 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, 2016.

iii. Related parties are identified by the Management and relied upon by the Auditors.

iv. No provision is made for interest receivable on Related Party Loans given by the Company of `3,80,47,916/- and no provision is made for interest payable of `72,32,271/- on Related Party Loans taken by the Company.


NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016NOTE 35Value of Imported and Indigenous Raw Material & Stores & Spares Consumed Amount in `

Particulars

For the year ended 31st March, 2016 For the year ended 31st March, 2015Raw Materials

`% Stores &

Spares & Packing Material

`

% Raw Materials`

% Stores & Spares & Packing Material

`

%

Imported - - 4,04,309 1.60 - - 322,255 1.14Indigenous 68,16,82,933 100.00 2,49,16,227 98.40 78,54,01,340 100.00 27,912,045 98.86

Total 68,16,82,933 100.00 2,53,20,536 100.00 78,54,01,340 100.00 28,234,300 100.00

NOTE 36CIF value of Imports Amount in `



Stores 4,04,309 322,255Capital goods 0 0

Total 4,04,309 322,255

NOTE 37Earnings in Foreign Exchange Amount in `



F.O.B. Value of Exports 31,39,13,063 31,91,43,692Total 31,39,13,063 31,91,43,692

NOTE 38Expenditure in Foreign Currency – NIL

NOTE 39



1. Net Amount remitted during the year in foreign currency on account of Dividend Nil Nil

2. Number of non-resident shareholders 395 371

3. Number of shares held by non-resident on which dividend is remitted Nil Nil

4. Year for which dividend was due N.A. N.A.

NOTE 40There is an exceptional item in the Statement of Profit & Loss in the Previous Year, the details of which are as follows: Amount in `



1 ) Provision for Capital Advances - 94,32,23,8512 ) CWIP Written Off - 4,62,00,730

Total - 98,94,24,581

The Company has made provision of unrecoverable capital advances amounting to `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 `4, 62, 00,730/- has been written-off as there are no assets against such expenses.



As per our report of even date

For Samria & Co.Firm Reg. No. 109043WChartered Accountants

For and on behalf of the Board of Directors of BIRLA COTSYN (INDIA) LTD

S.N.BahetiDirectorDIN: 06933453

R.K.DixitDirectorDIN: 06655663

Adhar SamriaPartnerMembership Number 049174

S.K.MathurManager

Asish NarayanCompany SecretaryACS - 19454

Place : MumbaiDated : 27th May, 2016

Vipin VarkhawatChief Financial Officer

As per our report of even date

For Samria & Co.Chartered AccountantsFirm Reg. No. 109043W

For and on behalf of the Board of Directors of BIRLA COTSYN (INDIA) LTD

S.N.BahetiDirectorDIN: 06933453

R.K.DixitDirectorDIN: 06655663

Adhar SamriaPartnerMembership Number 049174

S.K.MathurManager

Asish NarayanCompany SecretaryACS - 19454

Place : MumbaiDated : 27th May, 2016

Vipin VarkhawatChief Financial Officer

NOTE 41

Comparative figures for the previous year have been regrouped and / or rearranged wherever necessary.

Standalone Statement on impact of Audit Qualifications for the Financial Year ended 31st March, 2016(Regulation 33/52 of the SEBI (Listing Obligations and Disclosure Requirements)(Amendment) Regulations, 2016)

SN. ParticularsAudited Figures (as

reported before adjusting for qualifications)

Adjusted Figures (Audited figures after adjusting for

qualifications)

1. Turnover / Total Income 1,00,69,52,588 1,04,50,00,504

2. Total Expenditure 1,77,91,87,768 1,80,52,37,367

3. Net Profit/(Loss) (77,22,35,179) (76,02,36,863)

4. Earnings Per Share (0.29) (0.28)

5. Total Assets 3,78,23,13,138 3,88,41,84,985

6. Total Liabilities 3,78,23,13,138 3,88,41,84,985

7. Net Worth (98,79,59,294) (91,21,37,047)

8. Any other financial item(s) (as felt appropriate by the management) NIL NIL

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