Bombay Dyeing and Manufacturing Company

(1) Capital Commitments
 
 Estimated amount of contracts to be executed on capital account and not
 provided for as at 31st March, 2009 - Rs 6.30 crores (31.3.2008 Rs.
 42.52 crores).
 
 (2) Share Capital
 
 Under orders from the Special Court (Trial of Offences relating to
 Transactions in Securities) Act, 1992, - the allotment against 928
 [2007- 2008- 2,768] warrants carrying rights of conversion into equity
 shares of the Company have been kept in abeyance in accordance with
 section 206A of the Companies Act, 1956, till such time as the title of
 the bonafide owner is certified by the concerned Stock Exchanges.
 During the year 1,840 (2007-2008- 660) equity shares have been allotted
 out of the shares kept in abeyance.
 
 (3) Share Warrants
 
 The Company had on 7th September, 2007 alloted 19,30,000 warrants on a
 preferential basis to The Bombay Burmah Trading Corporation Ltd.
 (BBTCL), a company in the promoter group.The warrants carry an option
 to apply for and be allotted in one or more tranches, one equity share
 of Rs. 10/- each per warrant within 18 months from the date of the
 issue (validity period) at an issue price of Rs. 616 each as determined
 in accordance with the SEBI prescribed pricing formula as per the
 provisions of Chapter XIII of the SEBI (Disclosure and Investor
 Protection) Guidelines, 2000. The Company had received an advance
 equivalent to 10% of the issue price i.e. Rs. 61.60 per warrant
 aggeragating Rs. 11.89 crores on allotment of the warrants in terms of
 the SEBI guidelines. BBTCL did not exercise the option to subscribe to
 the equity shares of the Company, as attached to the warrants, within
 the validity period, whereupon the option expired and the amount
 aggregating Rs. 11.89 crores referred to hereinabove was forfeited in
 terms of the SEBI (DIP) Guidelines and conditions attached to the
 warrants. The forfeited amount of Rs. 11.89 crores has been credited to
 Capital Reserve.
 
 (4) (a) Buildings (see Schedule 5 - Fixed assets) include residential
 flats at Roha at a cost of Rs. 0.13 crore which is held for disposal,
 the net book value in respect of which is Rs. 0.03 crore.  (b) Borrowing
 costs capitalised during the year is Rs. 10.98 crores (2007-2008
 Rs.59.53 crores) of which an amount of Rs.4.22 crores (2007-2008 Rs.
 Nil) is included in closing stock of real estate under development.
 
 (5) The Companys Textile Processing Plant at Ranjangaon is required
 and designed to operate 24 hours a day, as certified by the Chartered
 Engineers and is thus treated as a Continuous Process Plant (CPP),
 Consequently, depreciation has been charged 5.28% as applicable to CPP
 instead of the general rates, applicable to plant and machinery, of
 10.34%. The auditors have relied on the Certificate from Chartered
 Engineers, without any verification being a technical matter.
 
 (6) During the year 2000-2001, pursuant to the scheme of amalgamation
 between Seal Investments Limited (SIL) and the Company, sanctioned by
 the jurisdictional court on 20th April, 2001, the assets, liabilities
 and reserves of SIL had been transferred to and vested in the Company
 with effect from 1st October, 2000. The Company is taking necessary
 steps for securing transfer of some of the assets and liabilities in
 the name of the Company.
 
 (7) Inventory
 
 Pursuant to the implementation of SAP during the year, the method of
 determination of cost of certain raw materials and work-in-progress has
 undergone a change. Cost of cotton and fibre which was determined on
 specific identification basis and that of ready finished cloth on a
 first-in-first-out method upto the previous year, has been determined
 as on March 31, 2009 on the weighted average method. It has not been
 possible to ascertain the impact of this change, however in the opinion
 of the management the same is not expected to materially impact the
 profit and loss statement.
 
 (8) The Company has during the year ended 31 st March, 2009 converted a
 part of the freehold land under real estate development from fixed
 assets to stock in trade at market value and the difference between the
 market value and cost amounting to Rs. 390.11 crores has been credited
 to Revaluation Reserve. The Company has pursuant to the Memorandum of
 Agreement sold a part of the commercial building being constructed on
 such land to White Horse Real Estate Private Ltd. (WHREPL), a wholly
 owned subsidiary acquired on 31s December, 2008 and recognized a
 revenue there against of Rs. 235.02 crores (including revenue from the
 undivided interest in the underlying free hold land therein amounting
 to Rs. 193.34 crores in line with the Companys stated accounting
 policy) in the Profit and Loss Account. In line with the provisions of
 Accounting Standard 21 - Consolidation of Financial Statements, the
 said subsidiary has been excluded from consolidation in view of the
 intended investment being of temporary nature.
 
 (9) Debtors and creditors balances are subject to confirmation and
 consequent reconciliation, if any.
 
 (10) Advances recoverable in cash or in kind or for value to be
 received Advances recoverable in cash or in kind or for value to be 
 received include Rs. 0.88 crore due from directors of the Company of 
 which Rs. 0.71 crore is on account of remuneration recoverable from Mr.
 M.K.Singh, Executive Director, whose services were terminated on 6th
 July, 2008 based on certain acts of omission and commission detected. A
 suit has been filed by the company in the High Court of Judicature of
 Mumbai. The matter is sub-judice.
 
 (11) Deposit with a joint venture company
 
 Deposit of Rs. 15.22 crores (2007-2008 Rs. 15.22 crores) with a joint
 venture company is a shareholders deposit with PT. Five Star Textile
 Indonesia (PTFS). This deposit, originally denominated in U.S. $, was
 w.e.f. 1st April 2003 converted to Indian rupees, as approved by the
 Board of Directors of the Company and by the Board of Commissioners of
 PTFS. This deposit was earlier repayable by PTFS after it clears, in
 full, the term loan availed by it from a consortium of Indian
 nationalised banks, which was to be effected in installments spread out
 between 1996 and 2010. During the year 2000-2001, PTFS has prepaid the
 aforesaid term loan by raising funds through other borrowings subject
 to annual review and the aforesaid deposit is now repayable by PTFS
 after these borrowings are eventually repaid or during the year 2010,
 whichever is earlier.