1.  CORPORATE INFORMATION
 
 Birla Cotsyn India Limited is a public limited Company domiciled in
 India and incorporated under the provisions of the Companies Act, I956.
 
 [A] Terms/ rights attached to the equity shares
 
 The company has only one class of equity shares having a par value of
 Rs.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.
 
 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 except for shares held by Bank
 of New York Mellon which are in the form of GDR.
 
 [B] Details of shares issued other than cash for the period of Five
 Years immediately preceeding the Balance Sheet date.
 
 113,547,000 Equity Shares of Rs.1/- each have been allotted on 28th
 June, 2006 as fully paid Bonus Shares by Capitalisation of Reserves &
 Securities Premium Account.
 
 426,981,554 Equity Shares of Rs.1/- each have been allotted on 4th
 October, 20I0 as fully paid Bonus Shares by Capitalisation of Reserves
 & Securities Premium Account.
 
 Security and Terms of repayment including current maturities of long
 term borrowings.
 
 a) Term Loan from SICOM Ltd. carries interest @ 16.75% p.a. The entire
 loan is repayable in 10 quarterly Instalments of Rs. 60.00 Lacs and 10
 quarterly instalment of Rs.40.00 Lacs, with the last Instalment due on
 15th September, 2012. Outstanding principal amount as at 31st March,
 2012 is Rs.7,000,000/- There is an default in Interest of Rs.173,127/-
 
 b) Term Loan from Union Bank of India carries interest @ 15.75 %
 p.a.The entire loan is repayable in 32 quarterly Instalments of Rs.
 62.50 Lacs, with the last instalment due on 31st March, 2017.
 Outstanding principal amount as at 31st March, 2012 is
 Rs.131,116,462/-. There is a default in Instalment Rs.6,250,000/- &
 Interest Rs.5,393,341/-.
 
 c) Term Loan from Axis Bank Ltd. carries interest @ 15.00% p.a.The
 entire loan is repayable in 28 quarterly Instalments of Rs. 53.57 Lacs,
 with the last instalment due on 31st December, 2015. Outstanding
 principal amount as at 3Ist March, 2012 is Rs.78,505,284/-. There is a
 default in Instalment for Rs.5,357,143/- and Interest of Rs.3,441,507/-
 
 d) Term Loan from Bank Of India carries interest @ 16.25% p.a. The
 entire loan is repayable in 30 quarterly Instalments of Rs. 83.33 Lacs,
 with the last instalment due on 31st March, 2017. Outstanding principal
 amount as at 31st March, 20I2 is Rs.172,499,052/-. There is a default
 in Instalment Rs.8,333,333/- & Interest Rs.7,557,522/-.
 
 e) Term Loan from Indian Overseas Bank carries interest @ 15.50% p.a.
 The entire loan is repayable in 30 quaterly Instalments of Rs.  83.33
 Lacs, with the last instalment due on 31st July, 20I7. Outstanding
 principal amount as at 31st March, 20I2 is Rs.191,629,337/-.  There is
 a default in Instalment Rs.8,333,300/- & Interest Rs.7,611,426/-.
 
 f) Term Loan from Oriental Bank of Commerce carries interest @ I7.00 %
 p.a. The entire loan is repayable in 30 quarterly Instalments of Rs.
 50.00 Lacs, with last instalment due on 30th June, 20I6. Outstanding
 principal amount as at 31st March, 20I2 is Rs.89,722,775/-.  There is a
 default in Instalment Rs.5,000,000/- & Interest Rs.4,171,44I/-.
 
 g) Term Loan from Canara Bank carries interest @ 15.00 % p.a. The
 entire loan is repayable in 24 Quaterly Instalments of Rs. 62.50 Lacs
 with the last instalment due on 3Ist December, 2015. Outstanding
 principal amount as at 31st March, 20I2 is Rs.100,000,063/-. There is a
 default in Instalment Rs.6,250,000/- & Interest Rs.1,799,359/-.
 
 h) Term Loan from State Bank of India carries interest @ 17.75% p.a.
 The entire loan is repayable in 8 monthly Instalments of Rs.15.60
 Lacs, 1st monthly instalment of Rs.16.20 Lacs, 36 monthly instalments of
 Rs.13.00 Lacs, 44 monthly instalment of Rs. 16.65 Lacs, 4 monthly
 Instalments of Rs. 16.85 Lacs, 2 monthly instalment of Rs. 30.30 Lacs &
 Imonthly instalment of Rs. 30.40 Lacs, with the last instalment due on
 30th June, 2017. Outstanding principal amount as at 31st March, 20I2 is
 Rs.107,300,000/-. There is a default in Instalment Rs.3,900,000/- &
 Interest Rs.4,823,001/-.
 
 i) Term Loan from The Catholic Syrian Bank Ltd. carries interest @
 15.50% p.a. The entire loan is repayable in 20 quaterly Instalments of
 Rs. 50.00 Lacs with the last instalment due on 31st March, 2015.
 Outstanding principal amount as at 31st March, 20I2 is Rs.62,670,664/-
 There is a default in Instalment Rs.5,000,000/- & Interest
 Rs.2,681,958/-.
 
 j) Term Loan from Janakalyan Sahakari Bank Ltd. carries interest @
 15.00% p.a. The entire loan is repayable in 77 monthly Instalments of
 Rs. 3.21 Lacs and 1st monthly instalment of Rs.2.83 Lacs, with the last
 instalment due on 31st January, 2015. Outstanding principal amount as
 at 31st March, 2012 is Rs.19,294,804/-. There is a default in
 Instalment Rs.963,000/-.& Interest Rs.554,099/-.
 
 k) Term Loan from Bank Of India, (Housing Complex) carries interest @
 15.25 % p.a. The entire loan is repayable in 89 monthly instalments of
 Rs. 8.00 Lacs and I monthly instalment of Rs.3.00 Lacs, with the last
 instalment due on 30th August, 2019. Outstanding principal amount as at
 31st March, 20I2 is Rs.57,321,482/-. There is a default in Instalment
 Rs.800,000/- & Interest of Rs.2,207,320/-.
 
 l) Vehicals Loan from Axis Bank Ltd. carries interest @ 9.50 % p.a. (on
 a monthly reducing basis) The entire loan is repayable in 35 monthly
 instalments of Rs. 20,340/- each with the last instalment due on 1st
 November, 20I2. Outstanding principal amount as at 3Ist March, 2012 is
 Rs.157,073/-. Vehical Loan from ICICI Bank Ltd.. carries interest @
 10.75% p.a. The entire loan is repayable in 36 monthly instalments of
 Rs.33,300/- each with the last instalment due on I5th December, 2012.
 Outstanding principal amount as at 31st March, 2012 is Rs.630,212/-.
 
 m) All the above Term Loans have First pari passu charge on all the
 fixed assets (present and future) pertaining to all the assets of the
 Company and Second pari passu charges on all the stocks and Book debts
 of the Company
 
 n) The Vehicle Loan Finance is secured by Hypothecation of respective
 vehicles.
 
 Note - 2 CONTINGENT LIABILITIES NOT PROVIDED FOR: 
 
 Particulars                                   2011-2012      2010-2011
                                             (Amt in Rs)    (Amt in Rs)
 
 a) Claims against Company not acknowledged 
    as debt                                      102,000        102,000
 
 b) Labour matter pending with the court       75,00,000      1,515,097
 
 Ultimate outflow for the matters referred 
 to above depends on the settlement of these
 cases
 
 Note - 3
 
 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 indentify such suppliers and disclose the information required under
 the said Act relating to them.
 
 Note - 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.13167.39 Lacs (previous year Rs.13167.39 Lacs), to be fulfilled
 within eight years from the date of issuance of respective licences,
 failing which the duty saved aggregating Rs.1645.92 Lacs (previous year
 Rs.1645.92 Lacs), 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.5226.05 Lacs (previous year Rs.2309.03 Lacs)
 
 Note - 5
 
 There are no derivative instruments outstanding as at the year end.
 Foreign currency exposure which are not hedged as at the year end are
 as follows
 
 Note - 6 EMPLOYEE BENEFITS DISCLOSURE AS PER AS-15 (REVISED) ISSUED
 UNDER ACCOUNTING STANDARD RULES 2006 (AS AMENDED).
 
 A Defined Contribution Plans:
 
 During year ending 31st March 2012, the Company has recognised the
 contribution to Employees Provident Fund and Pension Fund aggregating
 Rs.10,181,308 (Previous year Rs.9,039,436) in the Profit & Loss
 Account.
 
 B Defined Benefit Plans:
 
 i Contribution to Gratuity.
 
 Provision for Gratuity has been made on the report of Actuary as at the
 year ended 31st March 20I2. 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 -I5, are furnished below:
 
 ii.  Leave Encashment
 
 Provision towards liability for Leave Encashment made on the basis of
 actuarial valuation as per Accounting Standard 15 (Revised).  Actuarial
 value of liability is RsI,252,796 (Previous year Rs 994,500) based upon
 following assumptions Discount rate 8.00% - 8.75% (Previous year 8.00%
 - 8.25%)
 
 Salary escalation 5.00% - 7.00% (Previous year 5.00% - 7.00%)
 
 - There is no repayment schedule for the above loans
 
 - Birla Integrated Textile Park Limited is an subsidiary company of
 Birla Cotsyn India Limited, wherein Birla Cotsyn India Limited has an
 holding of 51% and the loans have been advanced to Birla Integrated
 Textile Park Limited for execution of the project.
 
 - 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.
 
 d) No debt due from or to related parties are written off or written
 back during the year.
 
 - Related parties are identified by the Management and relied upon by
 the Auditors.
 
 Note - 7
 
 During the year the company has capitalised Nil interest (Previous year
 Rs. 23,765,III).
 
 Note - 8
 
 The exceptional item is the gain on forex fluctuation of GDR proceeds
 in the foreign bank A/c 
 
 Note - 9
 
 Premises taken on Operating Lease
 
 a.  The Company has Operating Lease Agreements for the Office building
 and other premises. The rental expenses for the Operating Lease
 aggregating Rs.4,224,026 (Previous year Rs. 3,791,460) has been debited
 to the Profit and Loss Account for the year.
 
 b.  Future lease rentals are determined on the basis of agreed terms.
 
 c.  At the expiry of the lease term, the Company has an option either
 to return the asset or extend the term by giving notice in writing.
 
 d.  The total future minimum rentals payable as at the Balance Sheet
 date are as under:
 
 Note - 10
 
 Comparative figures for the previous year have been regrouped and / or
 rearranged wherever necessary.