Banswara Syntex

1.  Contingent liabilities not provided for in respect of :- 
 
                                                       Rupees in Lacs
 
                                                  As at             As at
 
                                              31.03.2009       31.03.2008
 
 a) Bills discounted with banks remaining outstanding
 
 i) Against Foreign LC                          5,158.54         4,086.16
 ii)Others                                        844.05         1,025.69
 
 b) Letter of Credit established with banks        26.18           526.37
 
 c) Guarantees given by the bankers on behalf 
    of the company for which FDRs Rs.19.39 lacs   173.60            92.94
    (Rs. 10.20 lacs) pledged with them.
 
 d) Guarantees given by company to Banks for 
    loan to Carreman Fabrics India Ltd          1,950.00         1,950.00
    (Outstanding as on 31.03.2009 
    Rs. 1757.59 Lacs)
 
 e) Claims against the company not 
    acknowledged as debt :-
 
 (a) Under Tax Laws                               455.85           391.70
 (b) By Others:
 
 (i) On Revenue account                             4.24              3.49
 (ii)On Capital account                              Nil               Nil
 
 There is no reimbursement possible on account of contingent
 liabilities.
 
 2.  Estimated amount of contracts remaining to be executed on Capital
 account Rs. 2486.84 lacs (Rs. 3204.84 lacs) and export obligation
 against EPCG licenses Rs. 13141.95 lacs (previous year Rs. 15956.00
 lacs)
 
 3.  In terms of Accounting Policy No.2, Borrowing Cost Rs. 35.28 lacs
 (previous year Rs.223.62 lacs) and Salary Rs. 1.98 lacs (previous year
 Rs.53.96 lacs) incurred during the construction/installation of fixed
 assets have been capitalized.
 
 4.  Advances includes amount due from officers of the Company Rs. Nil
 (Nil) with maximum debit balance Rs. 1.13 lacs (Rs. 1.51 Lacs). Debtors
 include Rs. Nil (Nil) due from directors with maximum balance of Rs.
 Nil (Rs. 6.06 Lacs). It also includes Rs. Nil (Nil) due from a
 partnership firm with maximum balance of Rs. 57.32 lacs (Rs. 28.01
 Lacs) in which directors are partners.
 
 5.  Excise Duty shown under expenditure represents the aggregate of
 excise duty borne by the Company and difference between excise duty on
 opening and closing stock of finished goods.
 
 6.  Credit in respect of Minimum Alternative Tax under Income Tax Act
 1961 (MAT Credit -Entitlement) is recognized in accordance with
 guidance note issued by the Council of the Institute of Chartered
 Accountants of India.
 
 7.  Disclosures as required by Accounting Standards:
 
 A.  Accounting Standard 15 - Employee Benefits, the disclosures of
 Employee benefits as defined in the accounting standard are given
 below:
 
 1.  Defined Contribution Plan
 
 Employers contribution to provident fund paid Rs.366.72 Lacs (Previous
 year Rs.280.00 Lacs) has been recognized as expense for the year.
 
 2.  Defined Benefit Plan
 
 Present value of gratuity and long earned leave obligation is
 determined based on actuarial valuation using the projected unit credit
 method which recognises each period of service as giving rise to
 additional unit of employee benefit entitlement and measures each units
 separately to built up.the final obligation. Short term earned leave
 encashed during the year charged to Profit & Loss Account.
 
 b.Accounting Standard 18 - Related Party Disclosure
 
 The company has identified all the related parties as per details given
 below:
 
 1. Relationship:
 
 a) Joint Venture and Associate concerns
    Carreman Fabrics India Ltd.
    Banswara Fabrics Ltd.
 
 b) Key Management Personnel and Their Enterprises:
 
    Shri R.L.Toshniwal
    Shri Ravi Toshniwal
    Shri Rakesh Mehra
    Shri Shaleen Toshniwal
    Dhruv Impex
    Mehra International
 
 c) Relatives of Key Management Personnel and their Enterprises where
 transactions have taken place.:
 
    Smt. Prem Toshniwal
    Smt. Navneeta Mehra
    Smt. Radhika Toshniwal
    Smt. Sonal Toshniwal
    Toshniwal Trust
    Ms. Esha Toshniwal
 
 Note : Related party relationship is as identified by the Company and
 relied upon by the Auditors.
 
 d.  Accounting Standard 27 - Financial Report of interest in Joint
 Venture
 
 a) The Company has entered into the Joint Venture with Carreman, France
 for 50% ownership interest in jointly controlled entity Carreman
 Fabrics India Ltd.
 
 e Accounting Standard 28 - impairment of Assets :
 
 The Company assessed potential generation of economic benefits from its
 business units and is of the view that assets employed in continuing
 businesses are capable of generating adequate returns over their useful
 lives in the usual course of business, there is no indication to the
 contrary and accordingly the management is of the view that no
 impairment provision is called for in these accounts.
 
 a) Foreign Currency exposure that are not hedged by financial
 instruments or forward contracts as at 31st march, 2009 amount to US
 Dollar 38.47 lacs (equivalent to Rs.1951.80 Lacs) (Previous year US
 Dollar 38.15 lacs equivalent to Rs.1514.14 Lacs)
 
 b) In respect of outstanding foreign exchange financial instruments
 which are stated in para a above, there is a net loss of Rs.753.32
 lacs as at 31st March 2009 which has been recognised in books on mark
 to market basis, considering the principles of prudence as enunciated
 in Accounting Standard 1 Disclosure of Accounting Policies notified
 in the Companies (Accounting Standards) Rule 2006 shown as
 Extraordinary item.
 
 8.  Previous years figures have been reworked, rearranged, regrouped
 and reclassified, wherever considered necessary and to make them
 comparable.