Century Textiles and Industries

FIXED ASSETS NOTES :
 
 (a) Includes Rs. 0.38 Crore (Previous year Rs. 0.63 Crore) for which
 sale and conveyance deeds and other transfer formalities are yet to be
 executed. Stamp duty and other incidental expenses will be capitalised
 on execution of the same.
 
 (b) Includes premises on ownership basis Rs.3.61 Crore (Previous year
 Rs. 3.61 Crore), leasehold premises Rs.0.01 Crore (Previous year Rs.
 0.01 Crore) and cost of shares in co-operative societies (Rs.750 /-)
 [Previous year (Rs.750/-)].
 
 (c) Includes cost of premises Rs. 3.93 Crore (Previous year Rs. 3.93
 Crore) in possession of the Company for which sale and conveyance deed
 and other transfer formalities are yet to be executed. Stamp duty and
 other incidental expenses will be capitalised on execution of the same.
 
 (d) Includes the cost of an electric sub-station and other related
 assets taken by the Company from Madhya Pradesh Electricity Board
 aggregating Rs. 0.95 Crore (Previous year Rs. 0.95 Crore) for which
 conveyance deed is yet to be executed [Electrical installation Rs. 0.63
 Crore (Previous year Rs. 0.63 Crore); Building Rs.0.32 Crore (Previous
 year Rs. 0.32 Crore)].
 
 (e) Wagons acquired under Own Your Wagon scheme have been given on
 lease to railways.
 
 (f) Rs.Nil [Previous year Net of Rs.0.31 Crore short depreciation
 provided].
 
 (g) See Note 11.
 
 (h) Additions to Plant and Machinery is net of Rs. 10.53 crore
 (Previous year Rs.Nil) being Capital received.
 
 (i) Indudes Rs.8.45 Crore(Previous year Rs.8.45 Crore) for which lease
 deed and other transfer formalities are yet to be executed. Stamp duty
 
 NOTES FORMING PART OF THE ACCOUNTS : 
 
 1.  Secured Loans:
 
 (a) Sales Tax Interest free loan from Madhya Pradesh Audyogik Vikas
 Nigam is secured by hypothecation and mortgage on the movable and
 immovable properties of Century Cement at Raipur and Maihar Cement at
 Maihar, present and future and such charge to remain subsequent to the
 charges created / to be created by the Company in favour of Rupee/
 Foreign Currency Term Loans from Banks. (Due within one year Rs. 0.08
 Crore).
 
 (b) Rupee / Foreign Currency loans from Banks are secured / to be
 secured by first pari passu mortgage / hypothecation of all the
 immovable / movable fixed assets, present and future, of the Companys
 Birla Century, Cement, Pulp & Paper (excluding leasehold land) and
 Rayon Divisions and second charge created / to be created in favour of
 certain term lenders on the current assets of the Company. Loans for
 the Companys Century Denim Division are also secured by mortgage /
 hypothecation of all the immovable / movable fixed assets of the Denim
 Division. Short Term Rupee Loan is secured by way of second and
 subservient charge on movable fixed assets of the Company (Due within
 one year Rs. 648.01 Crore).
 
 (c) Pre-shipment, Post-shipment, Cash Credits, Working Capital Demand
 Loans and Export Bills Discounting facilities are secured against the
 hypothecation of the whole of the Companys Raw Materials, Finished
 Goods, Stock-in-process, Stores and Spares, present and future Book
 Debts, Receivables, etc. and second charge created / to be created over
 movable and immovable fixed assets of Birla Century, Cement, Pulp &
 Paper (excluding leasehold land) and Rayon Divisions of the Company.
 Inland Bills discounting facilities from Banks are secured against
 Railway Receipts, Lorry Receipts, etc.
 
 (d) The charge by way of hypothecation of Raw Materials, Finished and
 Semi-finished goods and Stores and Spares in favour of banks, also
 extends to the guarantees given by the banks on behalf of the Company,
 aggregating Rs. 119.62 Crore (31.3.2008 Rs. 78.51 Crore).
 
 2 (a) 44 hectares of land were acquired at Manikgarh Cement Division
 and were subsequently surrendered to the
 
 Forest Department, Government of India, pursuant to the provisions of
 the Forest Conservation Act, 1980.  The amount of compensation payable
 will be accounted for when determined by the Collector.
 
 (b) In respect of Manikgarh Cement Division, Land measuring 41.20
 hectares occupied by the Forest Department and disputed by the Company
 was adjudicated by the Collector and the Divisional Commissioner
 (Appeals) in favour of the Company. The Government of Maharashtra on a
 reference made by the Forest Department directed the Collector for a
 fresh demarcation of the site boundaries and has also directed the
 Forest Department to refund the compensation paid by the Company along
 with interest for the land falling within their boundary.  The
 Revisional Authority has since observed that approx. 17 hectares of
 land falls within the boundaries of the reserved forest. The Company
 has filed a writ petition before the Bombay High Court, Nagpur bench
 against the said order. Adjustments, if any will be made, in the year
 in which the matter is finally settled.
 
 (c) In respect of Manikgarh Cement Division, The Ministry of
 Environment & Forests (FC Division) Government of India, New Delhi has
 conveyed their conditional approval for diversion of 7.064 hectares of
 Forest Land for construction of Conveyor System from Mines to Plant
 area. While persuing the aforesaid conditions, the Division has been
 asked to surrender equivalent Non-forest land against the same and
 accordingly the division has surrendered 7.064 hectares of Non-Forest
 land to the Forest Department. The amount of compensation payable will
 be accounted for when finally determined by the appropriate authority
 and on fulfillment of all the conditions.
 
 3 (a) Sundry Creditors in Schedule 8 to the Accounts include (i)
 Rs. 0.02 Crore (31.03.2008 - Rs. Nil) due to
 
 micro and small enterprises registered under the Micro, Small and
 Medium Enterprises Development Act, 2006 (MSME); and (ii) Rs. 673.30
 Crore (31.03.2008 - Rs. 574.99 Crore) due to other creditors.
 
 (b) No interest is paid / payable during the year to any enterprise
 registered under the MSME.
 
 (c) The above information has been determined to the extent such
 parties could be identified on the basis of the information available
 with the Company regarding the status of suppliers under the MSME.
 
 4 (a) Unclaimed Fixed deposits amounting to (Rs. 22,500) and (Rs.
 3,150) being interest accrued and due thereon
 
 remain unpaid in view of the internal disputes between the claimants
 which has been referred to the Court whose decision is awaited.
 
 (b) Unclaimed Dividends amounting to Rs.0.02 Crore (31.3.2008 Rs. 0.02
 Crore) is pending on account of litigation among claimants / Notices
 from Tax Recovery Officer.
 
                                      31.3.2009               31.3.2008
                                 (Rs. in Crore)          (Rs. In Crore)
 
 5 Contingent Liabilities not
   provided for in respect of :
 
 (a) Guarantees given by Companys bankers
 (Guarantees have been given by the
 Companys bankers in the normal
 course of business and are not expected
 to result in any liability on
 the Company)                            22.34                   9.81
 
 (b) (i) Claims against the company not
         acknowledged as debts in
         respect of:
 
     - Custom Duty and Excise Duty       24.24                   8.07
     - Sales Tax and Entry Tax           28.78                  25.87
     - Power Charges                    276.41                 184.97
     - Royalty                          143.31                 121.88
     - Others                            36.07                  24.49
 
 (ii) Claims not acknowledged as debts
      jointly with other members of
     Business Consortium of Companies
      in which the Company had an                           
      interest (proportionate)            17.19                 17.19
 
 (c)  Registration and Road Tax on Dumper
      of Cement Division-Amount not
      determinable at present
 (d)  Disputed tax matters in
      appeal [Paid there against
      Rs. Nil ;(31.3.2008 Rs. Nil)]        0.46                   2.31
 
 (e)  Liability on account of Jute
      packaging obligation upto
      30th June,1997 under the Jute
      aging Materials (Compulsory use in Packing
      commoditie>, 1987 - Amount not determinable
      at present
 
 Note : Item No.5(b) to 5(e)
 
 (The Company has taken legal and other steps necessary to protect its
 position in respect of these claims, which based on legal advice are
 not sustainable. It is not possible to make any further determination
 of the liabilities which may arise or the amounts which may be
 refundable in these respects).
 
 6 (a) Estimated amount of contracts remaining to be executed on Capital
 
 account and not provided for (net of advances) 977.87 281.59
 
 (b) Lease rental obligation :
 
 - not later than one year 7.11 11.21
 
 - later than one year and not later than five years 8.17 11.60
 
 - later than five years 2.45 4.19
 
 (c) Lease rental income :
 
 - not later than one year 8.66 4.19
 
 - later than one year but not later than five years 10.55 5.41
 
 - later than five years 1.27 1.77
 
 (a) Including production for internal consumption and regenerated
 and/or reprocessed production.
 
 (b) Licensed and Installed capacity includes for High Performance
 Viscose Staple Fibre and Tyre Yarn Fabric.
 
 (c) As certified by the Management and being a technical matter
 accepted by the Auditors as correct.
 
 (d) Includes 97 M.T. for Captive Consumption (2007-2008,64 M.T.).
 
 (e) Memorandum / Applications for enhanced capacities are filed with
 Appropriate Authorities for Century Cement.
 
 (f) Company holds letter of Intent No. 16(1997) dated 28.1.1997 for
 enhancement of capacity upto 31320 M.T.
 
 (g) For Bagasse based Paper Plant, Company has filed memorandum to
 manufacture 84600 M.T.
 
 of paper with Department of Industrial Development, Ministry of
 Industry, Government of India.  (h) Capacity as per registration given
 by Dy.Salt Commissioner vide its office letter No.l8(9) salt/91/1143
 dated 19th January, 1999.  (i) Company has filed memorandum with the
 Department of Industrial Development, Ministry of Industry for
 additional
 
 capacity Vide letter No. 1839/SIA/IMO/2003 dated 9th July, 2003,letter
 No. 1977/SIA/IMO/2003 dated 24th July, 2003
 
 and letter No. 2032/SIA/IMO/2007 dated 17th July, 2007.  (j) Central
 workshop facilities have been closed.
 
 (k) Licensed/Registered and Installed capacity increased by 600000 M.T.
 w.e.f. 01.01.2008 and 400000 M.T. w.e.f 01.03.2008 (I) For Recycle
 based Paper Plant, Company has filed memorandum to manufacture 75960
 M.T.
 
 of paper with Ministry of Commerce & Industry, Government of India.
 
 (m) For Prime Grade Tissue Paper Plant, Company has filed memorandum to
 manufacture 36000 M.T. of paper with Ministry of Commerce & Industry,
 Government of India.
 
 (n) Net after Reprocessing / Repulping - 2 M.T. (2007-2008,83 M.T.)
 
 (o) Net after Reprocessing / Repulping -100 M.T. (2007-2008, 70 M.T.)
 
 (p) Net after Reprocessing / Repulping - 3031 M.T. (2007-2008,394 M.T.)
 
 11.  The arrears of depreciation for the accounting years 1999-2000 and
 2000-2001 in respect of assets of certain divisions have, as a matter
 of prudence and in accordance with relevant accounting standards,
 supported by a legal opinion, been charged off over two accounting
 years viz. 2007-2008 and 2008-2009.
 
 12.  The Company has, retrospectively, with effect from 1st April,
 2007, opted to recognise exchange differences arising on reporting of
 long term foreign currency monetary items in line with paragraph 46 of
 Accounting Standard 11 inserted vide Notification No. GSR 225E dated
 31st March, 2009 as per Companies (Accounting Standards) Amendment
 Rules, 2009.
 
 Pursuant to the above, the effect of exchange differences on long term
 foreign currency monetary items, so far as they relate to acquisition of 
 depreciable capital assets, have been adjusted to the cost of such assets and
 depreciated over their remaining useful life.
 
 Accordingly, the exchange difference amounting to Rs. 4.43 Crore,
 debited to Profit and Loss Account during the financial year 2007-2008, 
 has been added to the cost of fixed assets by crediting the General Reserve 
 and the depreciation thereon amounting to Rs. 0.24 Crore, has been debited
 to the General Reserve. Similarly, net exchange difference relating to the 
 financial year 2008-2009 amounting to Rs. 36.64 Crore, has been added to the
 cost of fixed assets.
 
 As a result of this change, depreciation for the year is higher by Rs.
 2.31 Crore, loss on foreign currency fluctuation (net) is lower by 
 Rs. 36.64 Crore and profit for the year is higher by Rs. 34.33 Crore. 
 The aggregate impact of these changes has resulted in the Reserve and 
 Surplus being higher by Rs. 35.42 Crore.
 
 There are no long term foreign currency monetary items which require
 exchange differences to be amortised.
 
 13.  Revenue expenditure on Research and Development activities
 relating to Government recognised in-house Research and Development
 laboratories incurred and charged out during the year through the
 natural heads of account, aggregate Rs. 0.51 Crore (2007-2008 Rs. 0.40
 Crore). No Capital expenditure on Research and Development has been
 incurred during the year.