Birla Transasia Carpets Limited (the 'Company') is a public limited company listed on Bombay stock Exchange (BSE). The company is manufacturer of machine made natural wool carpets. The company is a quality leader in plush wall to wall cut piles, loop piles, cut loop, graphics and designer woolen carpets and rugs in myraid colours. The Company has manufacturing facility at Sikandarabad in Utter Pradesh,India. Currently company in BIFR and not performing at par.

2. Terms and Rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the numbers of equity shares held by the shareholders.During the year, the company has reclassified the Share Forfeiture Account to Capital Reserves Account amounting to Rs. 32,813/-.

3. Shares held by holding/ultimate holding company and/or their subsidiaries/associates

Company does not have any Subsidiary or Holding Company.

4. Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

5. No shares issued either in bonus or consideration other than cash & no buy back of shares took place in last 5 Year.

6. Deferred Sales Tax Loan from Pradeshiya Industrial & Investment Corporation of Uttar Pradesh Limited (PICUP) is secured by way of second charge on the movable assets of the Company situated at Plot No. 3 & 4, Industrial Area, Sikandarabad (Uttar Pradesh). No interest has been provided on the above loan whereas overdue interest not provided for amounts to Rs 2,67,34,127/- upto 31st March, 2013 and no amount has been ascertained for the financial year 2013-14 & 2014-15.

7. The Cash Credit is provided by the consortium of Banks viz, ICICI Bank Limited, New Delhi and Punjab National Bank, New Delhi are secured against Hypothecation of Inventory, Book Debts and Other receivables and first charge of Company's Immovable Property situated at plot no. 3 and 4 UPSIDC industrial area sikandarabad , Bulandshar, UP.

8. Short term loan from body corporate are from related parties and payable on call. Although the same has not been paid during the year. On the above amount interest has not been provided. These are subject to confirmation, reconciliation and settlement there of, if any.

9. The Revised Schedule III, among other matters, requires that borrowing will be further sub classified as secured and unsecured. The Revised Schedule III requires that the period and amount of continuing default as on Balance Sheet date in repayment of loans and interest will be specified separately in each case.

10. The management of the company has considered above liabilities as short term. Although there exist amounts payable for more than normal operating cycle. Above are subject to confirmation, reconciliation and settlement there of, if any.

Notes:

11. Deperciation on Fixed Asset is Provided on Straight line basis or on useful life of Asset Lease hold land is being amortized over the period of lease ( 90 Year).

12. Depreciation of Buidling is provided over the revised/remaining useful life which is based on Management estimation.

13. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, except in respect of Leasehold Land. Accordingly the unamortised carrying value is being depreciated / amortised over the revised/ remaining useful lives which is based on management technical estimate. The written down value of Fixed Assets whose useful lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and loss account amounting to Rs 5,68,873/- transferred :o Profit/Loss A/c

B - Intangible Assets

The Company does not own any intangible assets.

C - Capital Work in Progress

The Company does not have assets in progress which will take time to be ready for inteded use.

The company has not revalued its Fixed assets during the year or year end. In absense of such revaluation process and fair market value of assets by an valuer. No impairment loss has been provided in the books.

The company has classified all receivables as short term unsecured. Although amounts outstanding more than six months are beyond the normal credit period allowed by the company. Receivables are subject to confirmation, reconciliation and settlement there of, if any.

14. Contmgent Liabilities

Being claims against the Company not acknowledged as Debts (The amount of claim are as per information & current status provided by the management as per their cuurent information available with 41,428,086 39,048,493 them. These claims are subject to full & final settlement in due course)

Guarantees issued by the Banks on behalf
of the Company (DGFT)                          100,000        400 000

Appeal pending before Jt.Commissioner
of Trade Tax,                                4,329,922      4,329,922
Uttarakhand for F.Y. 2000-01.

Appeal pending before Jt. Commissioner
of Income Tax, New                           4,867,100      4,867,100
Delhi for F.Y. 1997-98

Appeal pending before Dy. Commissioner
of Income Tax, New                             200,887        200,887
Delhi for F.Y. 2001-02

Appeal pending before Dy. Commissioner of Income Tax, New Delhi for F.Y. 2007-08 1,05,33,346 1,05,33,346

15. PROVIDENT FUND

In the matter of the proceedings under section 14-B & 7-Q of the Employee's Provident Fund & Misc. Provisions Act, 1952 and imposed the damages & interest for the period from 12/1997 to 11/2001 amounting Rs. 21,73,215/-and Rs. 7,43,883/- respectively for which Stay was taken Before the Hon'ble Employee's Provident Fund Appellate Tribunal, New Delhi. After several hearings the case was dismissed in favor of P.F. Commissioner however the final order was kept under ambiance.

1) Notice for interest payment from 10.06.2007 to 31.12.2014 (7Q) for M/s. Gayatri Allied & Security Services of Panel Interest of Rs. 4, 08,964/- to be paid immediately. Hearing is in progress.

2) Pending deposit of P.F. for M/s. Gayatri Allied & Security Services from October 13 to December 14 Rs.2,68,553/- to be Paid.

16. The above cases are filed under Water (Prevention & Control of Pollution Act) 1974 by UPPCB against the Company. Non-bailable warrants were issued to the directors of the Company for personal non-appearance before the Court as per the orders. The Company has of filed a writ petition before High Court to get a stay in the above mentioned case.

17. Pending settlement of the liabilities which may arise on account of short-fall in fulfillment of export obligations against duty free import of raw material on Advance Licenses in earlier years and also pending finalization of export benefits which may accrue to the Company on account of exports made in earlier years, the matters pertaining to which have become very old, no adjustments therefore, have been made in the accounts and the same will be accounted for as and when settled. The quantification of liability cannot be ascertainable at present.

18. Civil Suit

Civil Suit for recovery filed By M/s. Daulat Ram Amarnath Fazilka against Birla Transasia on 08/02/2008 amounting Rs. 4,77,065/- Last date for evidence was on 12/02/2011. Case was decided in favor of M/s Daulat Ram Amarnath. Paid Rs. 2,96,416/- Balance to be paid, however repetition has been filed in distt. Courts.

One Civil Suit filed for recovery of Rs. 90,34,079.39 against M/s. Roshinlal Gupta & Sons. Notice issued to party. Case Bearing No. CS - 05 - 2308/2009. The case on argument stage, our advocate has asked to provide weather the A/c of RLG is in our DRS scheme or not

With Reference to Case filed by us against M/s Roshanlal Gupta & Sons & Partner. Case No. 2301094/SS/Of 2007 Amount in Dispute Rs. 600000/- a counter criminal case was filed by M/s Roshanlal Gupta & Sons. On Birla Transasia under section 420 of IPC that amount claimed by Birla Transasia is illegal and forged. The case is under trial and evidence of the witness is in progress.

19. EXCISE:-

1) One appeal filed at Appelate Tribunal, New Delhi on 06/10/2009 for Rs. 17,25,392.00 with interest from the date of payment till the refund being granted. It is still pending before the adjucating authority.

2) Contempt Petition filed against Excise Department at Allahabad High Court against our refund of Rs. 17, 25,392.00 against the order of Supreme Court in our favor.

Balances of Sundry Debtors and Sundry Creditors are as per books of account only and are subject to confirmation,

20. reconciliation and settlement there of, if any. There exist amounts which are outstanding beyond the expected settlement time. These balances are not reconciled from a long period.

21. In compliance with Accounting Standard-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, Related Party disclosures are as under:

(A) Name of Related parties and description of relationship

Enterprises over which Directors and relatives of such personnel exercise significant influence:

Birla Bombay Pvt.Ltd                 Nirvend Traders Pvt.Ltd

Birla Cotysn (I) Ltd                 Shearson Investment Trading P. Ltd.

Birla Power Solution Ltd. Vedant Consultancy P Ltd

Godavari Corporation Pvt Ltd. Zenith Dyentermidiatn Ltd.

The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 for amount due to small scale industrial undertakings is not identified by the company.

In view of the persistent losses and company being under reference to Board for Industrial and Financial

22. Reconstruction (BIFR), no interest has been provided on Inter Corporate Loans. As Company has incurred loses in current year also amounting to Rs 1,50,86,000/- Liabilities would have been increased by the amount of interest, amount of interest are unascertained.

23. Previous Year Figures

The financial statements for the year ended 31st March, 2015 had been prepared as per the then applicable, prerevised Schedule III to the Companies Act, 2013. Consequent to the notification of Revised Schedule III under the Companies Act, 2013. the financial statements for the year ended 31st March, 2015 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been regrouped/reclassified to conform to this year's classification. The adoption of Revised Schedule III for the previous year figures does not impact recognition and measurement principle followed for the preparation of financial statements.

24. The abridged financial statements are represented in ' (Rounded off to nearest rupee) unless otherwise stated..